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CNN Live At Daybreak
Kerry Gets Ready to Fill Democratic Ticket; U.S. Marine Corporal May be Alive and Safe After Being Taken Hostage in Iraq
Aired July 06, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: This morning, John Kerry gets ready to fill the Democratic ticket.
It is Tuesday, July 6.
This is DAYBREAK.
And good morning to you.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Here are the latest headlines for you now.
Barring a last minute hitch, Senator John Kerry is expected to announce his choice a vice presidential running mate, oh, just about four hours from now at a rally in Pittsburgh. In an unusual wrinkle designed to protect the secrecy of the process, the person Kerry chooses will not be at that rally.
Israeli forces are trying to round up Palestinian militants at a refugee camp in Nablus. Fighting is described as heavy this morning. Sources say four Palestinians have been killed, including two militants. One Israeli soldier has been killed.
In money news, attacks on Iraq's crude oil exports and possible disruptions to Russian and Nigerian oil supplies are affecting U.S. oil prices. U.S. oil prices climbed more than $0.60 a barrel today.
In pop culture, "Spider-man 2" won the holiday weekend in a big way. It's estimated the movie took in more than $115 million. That is the best ever for a four day holiday weekend.
In sports, today's stage of the Tour de France bike race kicks off this morning at about 6:25 Eastern. American Lance Armstrong, going for his record sixth straight win, is in fourth place, 18 seconds behind the leader -- Chad.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
Typhoon Mindulle out there in Taiwan now. Dozens are dead from this and 10,000 are stranded because they just can't get back to where they're from or they can't get to anywhere else, as the raging rivers have washed out bridges, overpasses and most of the roads in parts of Taiwan. It was a tropical storm just a little bit ago and now it's been downgraded to basically nothing as it's moved on land. But most of these pictures coming from Sunday. (WEATHER REPORT)
COSTELLO: America plays the political guessing game this morning. Senator John Kerry, the likely Democratic presidential nominee, is expected to announce his vice presidential choice in Pittsburgh.
Our Joe Johns takes a look at Kerry's close to the vest decision and possible choices.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CORRESPONDENT (voice-over): John Kerry and his wife Teresa hosted a picnic on their farm in Pennsylvania, with speculation raging over his pick for a vice presidential running mate. The candidate wasn't giving anything away.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'll just tell you that I've made no decision at this point in time and I'm going to continue to keep this a private, personal process until I announce it publicly. I've said this is going to be a personal and private selection process. It is that. And I have communicated to nobody, you know, what any decision is and I, you know, reserve that right, to make it on my timing. And I will.
JOHNS: One of the key things Kerry is looking for in a running mate is compatibility, says a campaign source, someone who relates to Kerry on a personal level.
The politicians mentioned publicly as finalists have up sides and down sides.
Senator John Edwards of North Carolina attended two Kerry fundraiser in Boston on Monday, but clashed with him in the primaries. Edwards is a centrist crowd pleaser, but relatively inexperienced as a leader.
Here's why Pennsylvania Governor Ed Rendell says Edwards lost in the primaries.
GOV. ED RENDELL (D), PENNSYLVANIA: I think when people look at John Edwards, they say boy, he's a terrific, bright young senator. He's going to be something some day. But I don't think they consider the day being now.
JOHNS: Congressman Richard Gephardt of Missouri is a legislative veteran who has a lot in common with Kerry, but has lost two bids for the White House.
QUESTION: Has Senator Kerry talked to you all to tell you who he's chosen?
REP. DICK GEPHARDT (D-MO), MINORITY LEADER: No. No.
QUESTION: Did he tell you when he was going to make his announcement? GEPHARDT: I don't know anything. I'm just glad to be here.
JOHNS: And Governor Tom Vilsack of Iowa, head of a battleground state with a touching personal story, but he lacks national political experience. He has compared choosing a running mate to choosing a spouse. Vilsack has sidestepped repeated questions about being a finalist for number two on the Democratic ticket.
GOV. TOM VILSACK (D), IOWA: When I did it, I looked for somebody that would compliment my strengths, that would sort of fit in to maybe areas that I wasn't as strong.
JOHNS (on camera): After the rally here in Pittsburgh, Kerry is expected to go to Indianapolis to address a convention of the African Methodist Episcopal Church. From there, he returns to Washington to talk to the National Education Association.
Joe Johns, CNN, Pittsburgh.
(END VIDEOTAPE)
COSTELLO: And Kerry's announcement is expected at 9:00 a.m. Eastern at a rally in Pittsburgh. And that's the beginning of a three day campaign swing. CNN, of course, plans live coverage of that announcement.
And while the Kerry candidacy takes the spotlight this morning, problem will be busy with international diplomacy. He meets with Iceland's prime minister this morning, and they're expected to discuss issues arising from the recent NATO summit in Istanbul.
And this note. Wish the president happy birthday. He turns 58 years old today.
We have new Gallup poll numbers for you this morning. The numbers come from a poll conducted June 9 through June 30. Among registered white voters, 53 percent favor Bush; 41 percent favor Kerry. Among blacks, 12 percent favor the incumbent; 81 percent favor Kerry. And among Hispanics, 38 percent like Bush; 57 percent Kerry.
Asked how Bush is doing as president, 61 percent of whites approve, but only 16 percent of blacks and 40 percent of Hispanics approve of the way the president is doing his job.
More damning revelations this morning about the CIA and its handling of Iraq's prewar intelligence. The "New York Times" is reporting the CIA was told by relatives of Iraqi scientists before the war that Baghdad had abandoned its program to develop unconventional weapons. But the "Times" says the CIA did not give that information to President Bush. The information was reportedly uncovered by the Senate panel looking into allegations of flawed prewar intelligence on Iraq. Its report is due out this week.
Let's look at developments on the ground in Iraq our situation report this morning. U.S. troops killed a child and wounded another at a beginning checkpoint. Military officials say the vehicles carrying the children failed to stop.
In the meantime, in Fallujah, U.S. forces dropped two tons of bombs on a suspected militant safe house. Officials say at least eight people were killed, including a woman and three children.
And Iraq's interim prime minister says his country does not want peacekeeping forces from neighboring countries. He made the comments during an interview with the Arab TV network Al-Arabiya.
And new word has emerged that U.S. Marine Corporal Wassef Hassoun is alive and safe. Not confirmed yet, but that message is giving his Utah family reason to hope.
Rusty Dornin has more for you.
(BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): For the family of Corporal Wassef Hassoun, it's been a roller coaster ride to hell and back. First, the haunting images -- Hassoun blindfolded and the threat of his beheading. Then, an unconfirmed report by a militant group claiming to have killed Hassoun. The next day, that same group denied it.
Then the group that claims to have kidnapped Hassoun, Islamic Response, faxed a message to the Arab network Al Jazeera. It claimed the Lebanese born translator had been sent to a safe place after he announced his forgiveness and determination not to return to U.S. armed forces.
The family here in Utah has stayed in seclusion throughout its ordeal, shutting the door to the news media. But the latest twist brought a spokesman down the front steps to tell reporters the family doesn't know what to believe.
TAKEK HOSSIER, HASSOUN FAMILY SPOKESMAN: We pray that the news of his safe release is true. If he is still in captivity, we remind the captors of the saying of our beloved prophet -- be merciful to those on Earth, mercy will come, will descend upon you from heaven.
DORNIN: The family asks that people continue to pray for Hassoun.
Meantime, neighbors, friends and supporters came by the house to drop notes and flowers.
Army Private David Monson doesn't know Hassoun, but that didn't matter.
PVT. DAVID MONSON, U.S. ARMY RESERVIST: Having a, you know, a brother in arms get captured, so we just hope and pray that they'll be a resolution to it and he'll come home. DORNIN (on camera): Still no word from the Pentagon and even with the latest unconfirmed reports, the fate of Corporal Wassef Hassoun remains a mystery.
Rusty Dornin, CNN, West Jordan, Utah.
(END VIDEOTAPE)
COSTELLO: And you can stay on top of all the developments in Iraq by clicking onto our Web site. You know the address: cnn.com.
Some ominous news for U.S. military families living in Bahrain. They're being ordered to leave the country because of what's being called credible intelligence that they could be targets for terror. Bahrain is the headquarters of the Navy's Fifth Fleet and houses some components of the Central Command.
The FBI, in the meantime, is gearing up for possible attacks in the United States. Intelligence has led them to believe this summer's political conventions could be a target.
CNN justice correspondent Kelli Arena has more for you.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): A suspicious package in midtown Manhattan brings an immediate police response. Security personnel even more concerned than usual. Counterterrorism officials say intelligence continues to indicate terrorists are planning to strike before November's election. And they say this summer's Republican convention in New York is a tempting target.
And while the public has been warned about chemical or radiological weapons, there's actually more concern about a conventional attack, like a truck bomb.
KEN PIERNICK, FORMER FBI COUNTERTERRORISM: Vehicle-borne bombs are fairly easy to conduct, generally speaking. You just need a secluded place to construct it, and then you need a means to get to your target, and then you do your business. So those are very easy. Getting into a chemical facility or some other kind of sensitive infrastructure requires a great deal of study and planning and coordination.
ARENA: U.S. officials say they believe there may already be operatives in the United States but insist the intelligence on that front is vague.
To find out more, officials say, investigators are closely examining visa holders already in the U.S. from African countries like Somalia, where al Qaeda has increased its recruiting effort. And the FBI says it has started interviewing individuals based on names, travel records, phone numbers, and any other information gathered by its new task force formed to deal specifically with the current threat. Some Muslim groups are worried about profiling.
NIHAD AWAD, COUNCIL ON AMERICAN-ISLAMIC RELATIONS: We believe that, you know, racial profiling and ethnic scapegoating and just the mentality of round up the usual suspects is counterproductive, ineffective law enforcement, and never worked in the history of this nation. Why do we repeat it?
(END VIDEOTAPE)
COSTELLO: And here are some stories making headlines across America this Tuesday.
Boston's Logan Airport is back at full capacity following a blackout in the international terminal. Two power substations failed, leaving the terminal in the dark for nearly five hours. The outage forced security personnel to check all bags by hand. Fifteen international and 13 domestic flights were delayed.
Nine firefighters were injured battling this huge six alarm blaze at a mattress factory in Brooklyn. It took 200 firefighters almost five hours to get this fire under control. The thick smoke forced most residents of nearby neighborhoods into their homes.
And CNN has learned that former Enron Chairman Kenneth Lay will be indicted some time this week. Possible charges include lying to investors about the company's financial situation. The indictment would come from a special grand jury in Houston that has been investigating Enron's collapse.
Fierce fighting erupts in a West Bank refugee camp when Israeli troops move in to arrest suspected militants. Four Palestinians and an Israeli soldier were killed in that gun battle and three people were wounded on both sides.
We take you live to Jerusalem at the bottom of this hour for more on this latest Israeli-Palestinian violence.
And still ahead on DAYBREAK, "Fahrenheit 911" ignites an interest in political documentaries. What will it mean to the candidates on the stump?
Also ahead, seven years after her death, the first permanent memorial opens for Princess Diana. Praise and criticism surround the tribute. We'll talk about it with a royal commentator.
And a generation apart, teenagers now and then -- who's more hip? Who's more reckless? We'll compare.
This is DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It is 5:15 Eastern. Here's what's all new this morning.
One child was killed, another wounded, when the car they were riding in tried to barrel through a military checkpoint in Baghdad. Soldiers from the U.S.-led multinational force fired on the vehicle as it tried to bypass the checkpoint.
The African Union has agreed to send around 300 peacekeepers to the Darfour region of Sudan. Around 30,000 people have died during the violence in that region and more than a million others have been forced from their homes.
In money news, Coca-Cola has opened a new bottling plant in Somalia. Around 100 armed guards were on hand for the plant's opening. The old plant was destroyed 15 years ago during the country's civil war.
In culture, a Muslim leader in France is urging students to obey the ban on head scarves when they head back to school. France passed a new law that bans religious apparel, such as the Muslim head scarves, and large Christian crosses, from being worn in schools.
In sports, Coach K. Decides to stay. He said no to a multi- million dollar offer to become coach of the Los Angeles Lakers. Instead, Coach K. will return to Duke University for his 25th season.
L.A. Lakers -- Chad.
MYERS: Carol?
COSTELLO: Yes, Chad?
MYERS: That would have been like winning the lottery. Forty million dollars! No, no thank you.
COSTELLO: Oh, if he had gone to L.A.?
MYERS: Yes.
COSTELLO: Yes, but he's been at Duke for 25 years and, you know, you never know what's going to happen when you go to...
MYERS: I know. He just...
COSTELLO: And that is a troubled team, the L.A. Lakers, Chad.
MYERS: Yes. A bunch of whiners at times.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Time to check the overseas markets to see what may be on tap for Wall Street after the long holiday weekend.
For that, we head to London and Todd Benjamin. But I guess it wasn't a holiday weekend for you -- Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Nor for you. You were working yesterday. We're back again today, Carol, and the markets are still struggling here. I've got to tell you, the FTSE is down a third a percent here in London. The DAX is off three quarters of one percent in Frankfurt. And the CAC in Paris is off better than half of one percent.
Again, oil is a focus. That sabotage attack over the weekend in Iraq on some pipelines there means that oil is now trading at 39 bucks a barrel, up $0.73 in electronic trading. Not only are traders worried about the situation in Iraq, but also in Russia. A big oil company there called Yukos counts for about a fifth of Russia's oil production. It's got a lot of problems with the government, including the bank accounts of Yukos have been frozen and there are worries that Yukos won't be able to produce as much oil as a result of their problems. So that's also helping to boost the price of oil.
In terms of what the U.S. markets can expect, we'll get a report on the service part of the economy today. But the bigger focus, of course, is going to be earnings. And the earnings season kicks off in a big way tomorrow with Alcoa and Yahoo!, and then on Friday, General Electric.
Now, the earnings season is expected to be quite strong. Earnings are expected to be up better than 20 percent. And if that's the case, that would be the fourth quarter in a row that earnings have exceeded 20 percent.
But the question is whether the earnings will be so strong that it will snap Wall Street out of its malaise, because the S&P 500 Index has been down three weeks in a row and get it moving again. We'll have to wait and see -- back to you.
COSTELLO: Yes, we will.
Todd Benjamin live in London for us this morning.
Thank you.
Let's talk box office bucks and political battles. The number two movie in the nation is Michael Moore's "Fahrenheit 911."
So, does this mean more political documentaries will be coming to a theater near you?
Our Sibila Vargas takes a look at the Moore effect.
(BEGIN VIDEOTAPE)
(BEGIN VIDEO CLIP FROM "FAHRENHEIT 911")
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I call upon all nations to do everything they can to stop these terrorist killers. Thank you. Now watch this drive.
(END VIDEO CLIP)
SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT (voice-over): Michael Moore's anti-Bush documentary, "Fahrenheit 911," made history with its unprecedented box office success.
GINA MCINTYRE, "THE HOLLYWOOD REPORTER": The controversy that has surrounded the film, I believe, has probably contributed a great deal to how well it's performed, which is something that we saw earlier in the year with "The Passion of the Christ." It became an event film. It was the movie that you had to see because everybody was talking about it.
VARGAS: And it's the movie's financial success that some feel may attract greater public attention to politically driven documentaries.
MCINTYRE: I think any time any film does well in Hollywood, you will see more of that kind of film.
VARGAS: Director and predecessor Robert Greenwald's documentary, "Uncovered: The War In Iraq," has already sold more than 100,000 DVDs. Its theatric release is scheduled in mid-August, just two weeks before the Republican national convention.
ROBERT GREENWALD, DIRECTOR, "UNCOVERED: THE WAR ON IRAQ": I was thrilled about the success of "Fahrenheit 911." What it means to me personally is that there's an audience for documentaries.
VARGAS: Greenwald's film isn't the only documentary that may benefit from the Moore effect. Cinema Libre Studios, the distributor behind "Uncovered," is also backing more political documentaries, like "The Oil Factor: Behind The War On Terror," and "Unprecedented: The 2000 Presidential Election," set to release in upcoming months.
MARTIN KAPLAN, ANNENBERG SCHOOL, USC: There have always been documentary makers and they've always had an impact on social issues. But those have been localized social issues rather than attempts to mobilize a nation around a political position.
VARGAS (on camera): So far, films with a liberal slant seem poised to dominate the market. But conservative groups are striking back. A new film festival in Dallas, called The American Film Renaissance, is scheduled, symbolically enough, for September 11.
(voice-over): "Michael Moore Hates America" and "Confronting Iraq" are just two of the films on the festival's slate.
KAPLAN: The movie business, setting aside politics, is a business. And people will only show pictures for as long as they think they can sell popcorn based on them.
VARGAS: Whether the success of "Fahrenheit 911" will be repeated by these films remains to be seen. But in this election year, documentaries have become a new political battleground.
Sibila Vargas, CNN, Los Angeles.
(END VIDEOTAPE)
COSTELLO: Well, this is a time honored tradition, but some peaceful protesters are peeved. We'll tell you why these people are in the buff, naked, for the sake of the bulls.
(COMMERCIAL BREAK)
COSTELLO: You know what happens later today in Spain, don't you?
MYERS: I do.
COSTELLO: The running of the bulls.
MYERS: The first of eight, eight different running of the bulls. We only usually show one, but they do this eight different times over the festival, as they call it.
COSTELLO: Well, this year protesters have gone into -- I guess there have always been protesters, but this year the protesters...
MYERS: Now...
COSTELLO: ... plan to protest partially nude just to get their point across even stronger.
MYERS: And you know why they can't be naked? Because they didn't get the permit.
COSTELLO: Right. If they had gotten the proper permit, they could have protested completely naked, but since they didn't, they can only protest partially naked.
MYERS: Now, I think they're going to run down the same streets as the bulls are.
COSTELLO: Yes. Only they're -- oh, my.
MYERS: Oh.
COSTELLO: These...
MYERS: I hope you weren't eating.
COSTELLO: Chad! Chad Everett Myers! See, I know his middle name.
These people are from PETA.
MYERS: We're so sorry for that.
COSTELLO: PETA.
MYERS: Yes, they are.
COSTELLO: And they say that -- well, actually, a lot of people think this is cruel.
MYERS: Sure.
COSTELLO: Because the bulls are confused. They go into a panic. They don't know what's happening.
MYERS: They don't.
COSTELLO: They don't. But they do it every year.
MYERS: And must -- I think their point is must there be eight of these things? OK, so...
COSTELLO: OK, well, we'll...
MYERS: Maybe one is enough.
COSTELLO: ... keep our eye on the protesters and the running of the bulls.
MYERS: Fair enough.
COSTELLO: We're going to talk to a guy who's going to run with the bulls so you can...
MYERS: Oh, good.
COSTELLO: ... he can explain to us why.
MYERS: What the point is.
COSTELLO: Why?
MYERS: Right.
COSTELLO: Time for our DAYBREAK Eye-Opener. I think we just had it.
What a parking space!
MYERS: Oh, my.
COSTELLO: The owner of this apartment has a new sun roof thanks to a driver who hit the gas instead of the brake. Don't you hate when that happens?
MYERS: Oh, I hate when I do that.
COSTELLO: Yes. The gas launched this Ford Taurus into the upstairs apartment. Luckily the woman who lives there was in Las Vegas on vacation. She did hit the jackpot, didn't she?
MYERS: I was going to say. COSTELLO: The driver escaped injury, as well.
Meet Hudson Super -- or it could be Soaper (ph). He's a presidential prodigy. The 3-year-old can easily identify and name all 43 American presidents.
MYERS: OK.
COSTELLO: And he hasn't even learned to read yet. In case you're wondering, his favorite president is Richard Nixon, but nobody really knows why.
Need a hug? Oh, I do this morning. Hundreds of people gathered north of Dallas to meet Amma. Amma is a Hindu woman who travels around the world offering hugs and blessings. She has been known to hug more than 30,000 people in one day. It's estimated that the 50- year-old has hugged more than 24 million people in her lifetime. Now, that's a nice story.
MYERS: Do you need a hug?
COSTELLO: I need more than a hug this morning.
MYERS: Oh, I need a hug.
COSTELLO: Thank you.
In the next half hour of DAYBREAK, a flurry of speculation could come to an end today. John Kerry sets the stage for a major announcement. Who will be Kerry's number two?
And violence in the Mideast overnight as heavy fighting breaks out in the West Bank. We're going to take you live to Jerusalem.
And the Army is looking for a few good men, but one in particular they could do without. The story of the wannabe soldier ahead.
This is DAYBREAK for Tuesday.
(COMMERCIAL BREAK)
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Aired July 6, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: This morning, John Kerry gets ready to fill the Democratic ticket.
It is Tuesday, July 6.
This is DAYBREAK.
And good morning to you.
From the CNN global headquarters in Atlanta, I'm Carol Costello.
Here are the latest headlines for you now.
Barring a last minute hitch, Senator John Kerry is expected to announce his choice a vice presidential running mate, oh, just about four hours from now at a rally in Pittsburgh. In an unusual wrinkle designed to protect the secrecy of the process, the person Kerry chooses will not be at that rally.
Israeli forces are trying to round up Palestinian militants at a refugee camp in Nablus. Fighting is described as heavy this morning. Sources say four Palestinians have been killed, including two militants. One Israeli soldier has been killed.
In money news, attacks on Iraq's crude oil exports and possible disruptions to Russian and Nigerian oil supplies are affecting U.S. oil prices. U.S. oil prices climbed more than $0.60 a barrel today.
In pop culture, "Spider-man 2" won the holiday weekend in a big way. It's estimated the movie took in more than $115 million. That is the best ever for a four day holiday weekend.
In sports, today's stage of the Tour de France bike race kicks off this morning at about 6:25 Eastern. American Lance Armstrong, going for his record sixth straight win, is in fourth place, 18 seconds behind the leader -- Chad.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
Typhoon Mindulle out there in Taiwan now. Dozens are dead from this and 10,000 are stranded because they just can't get back to where they're from or they can't get to anywhere else, as the raging rivers have washed out bridges, overpasses and most of the roads in parts of Taiwan. It was a tropical storm just a little bit ago and now it's been downgraded to basically nothing as it's moved on land. But most of these pictures coming from Sunday. (WEATHER REPORT)
COSTELLO: America plays the political guessing game this morning. Senator John Kerry, the likely Democratic presidential nominee, is expected to announce his vice presidential choice in Pittsburgh.
Our Joe Johns takes a look at Kerry's close to the vest decision and possible choices.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CORRESPONDENT (voice-over): John Kerry and his wife Teresa hosted a picnic on their farm in Pennsylvania, with speculation raging over his pick for a vice presidential running mate. The candidate wasn't giving anything away.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'll just tell you that I've made no decision at this point in time and I'm going to continue to keep this a private, personal process until I announce it publicly. I've said this is going to be a personal and private selection process. It is that. And I have communicated to nobody, you know, what any decision is and I, you know, reserve that right, to make it on my timing. And I will.
JOHNS: One of the key things Kerry is looking for in a running mate is compatibility, says a campaign source, someone who relates to Kerry on a personal level.
The politicians mentioned publicly as finalists have up sides and down sides.
Senator John Edwards of North Carolina attended two Kerry fundraiser in Boston on Monday, but clashed with him in the primaries. Edwards is a centrist crowd pleaser, but relatively inexperienced as a leader.
Here's why Pennsylvania Governor Ed Rendell says Edwards lost in the primaries.
GOV. ED RENDELL (D), PENNSYLVANIA: I think when people look at John Edwards, they say boy, he's a terrific, bright young senator. He's going to be something some day. But I don't think they consider the day being now.
JOHNS: Congressman Richard Gephardt of Missouri is a legislative veteran who has a lot in common with Kerry, but has lost two bids for the White House.
QUESTION: Has Senator Kerry talked to you all to tell you who he's chosen?
REP. DICK GEPHARDT (D-MO), MINORITY LEADER: No. No.
QUESTION: Did he tell you when he was going to make his announcement? GEPHARDT: I don't know anything. I'm just glad to be here.
JOHNS: And Governor Tom Vilsack of Iowa, head of a battleground state with a touching personal story, but he lacks national political experience. He has compared choosing a running mate to choosing a spouse. Vilsack has sidestepped repeated questions about being a finalist for number two on the Democratic ticket.
GOV. TOM VILSACK (D), IOWA: When I did it, I looked for somebody that would compliment my strengths, that would sort of fit in to maybe areas that I wasn't as strong.
JOHNS (on camera): After the rally here in Pittsburgh, Kerry is expected to go to Indianapolis to address a convention of the African Methodist Episcopal Church. From there, he returns to Washington to talk to the National Education Association.
Joe Johns, CNN, Pittsburgh.
(END VIDEOTAPE)
COSTELLO: And Kerry's announcement is expected at 9:00 a.m. Eastern at a rally in Pittsburgh. And that's the beginning of a three day campaign swing. CNN, of course, plans live coverage of that announcement.
And while the Kerry candidacy takes the spotlight this morning, problem will be busy with international diplomacy. He meets with Iceland's prime minister this morning, and they're expected to discuss issues arising from the recent NATO summit in Istanbul.
And this note. Wish the president happy birthday. He turns 58 years old today.
We have new Gallup poll numbers for you this morning. The numbers come from a poll conducted June 9 through June 30. Among registered white voters, 53 percent favor Bush; 41 percent favor Kerry. Among blacks, 12 percent favor the incumbent; 81 percent favor Kerry. And among Hispanics, 38 percent like Bush; 57 percent Kerry.
Asked how Bush is doing as president, 61 percent of whites approve, but only 16 percent of blacks and 40 percent of Hispanics approve of the way the president is doing his job.
More damning revelations this morning about the CIA and its handling of Iraq's prewar intelligence. The "New York Times" is reporting the CIA was told by relatives of Iraqi scientists before the war that Baghdad had abandoned its program to develop unconventional weapons. But the "Times" says the CIA did not give that information to President Bush. The information was reportedly uncovered by the Senate panel looking into allegations of flawed prewar intelligence on Iraq. Its report is due out this week.
Let's look at developments on the ground in Iraq our situation report this morning. U.S. troops killed a child and wounded another at a beginning checkpoint. Military officials say the vehicles carrying the children failed to stop.
In the meantime, in Fallujah, U.S. forces dropped two tons of bombs on a suspected militant safe house. Officials say at least eight people were killed, including a woman and three children.
And Iraq's interim prime minister says his country does not want peacekeeping forces from neighboring countries. He made the comments during an interview with the Arab TV network Al-Arabiya.
And new word has emerged that U.S. Marine Corporal Wassef Hassoun is alive and safe. Not confirmed yet, but that message is giving his Utah family reason to hope.
Rusty Dornin has more for you.
(BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): For the family of Corporal Wassef Hassoun, it's been a roller coaster ride to hell and back. First, the haunting images -- Hassoun blindfolded and the threat of his beheading. Then, an unconfirmed report by a militant group claiming to have killed Hassoun. The next day, that same group denied it.
Then the group that claims to have kidnapped Hassoun, Islamic Response, faxed a message to the Arab network Al Jazeera. It claimed the Lebanese born translator had been sent to a safe place after he announced his forgiveness and determination not to return to U.S. armed forces.
The family here in Utah has stayed in seclusion throughout its ordeal, shutting the door to the news media. But the latest twist brought a spokesman down the front steps to tell reporters the family doesn't know what to believe.
TAKEK HOSSIER, HASSOUN FAMILY SPOKESMAN: We pray that the news of his safe release is true. If he is still in captivity, we remind the captors of the saying of our beloved prophet -- be merciful to those on Earth, mercy will come, will descend upon you from heaven.
DORNIN: The family asks that people continue to pray for Hassoun.
Meantime, neighbors, friends and supporters came by the house to drop notes and flowers.
Army Private David Monson doesn't know Hassoun, but that didn't matter.
PVT. DAVID MONSON, U.S. ARMY RESERVIST: Having a, you know, a brother in arms get captured, so we just hope and pray that they'll be a resolution to it and he'll come home. DORNIN (on camera): Still no word from the Pentagon and even with the latest unconfirmed reports, the fate of Corporal Wassef Hassoun remains a mystery.
Rusty Dornin, CNN, West Jordan, Utah.
(END VIDEOTAPE)
COSTELLO: And you can stay on top of all the developments in Iraq by clicking onto our Web site. You know the address: cnn.com.
Some ominous news for U.S. military families living in Bahrain. They're being ordered to leave the country because of what's being called credible intelligence that they could be targets for terror. Bahrain is the headquarters of the Navy's Fifth Fleet and houses some components of the Central Command.
The FBI, in the meantime, is gearing up for possible attacks in the United States. Intelligence has led them to believe this summer's political conventions could be a target.
CNN justice correspondent Kelli Arena has more for you.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): A suspicious package in midtown Manhattan brings an immediate police response. Security personnel even more concerned than usual. Counterterrorism officials say intelligence continues to indicate terrorists are planning to strike before November's election. And they say this summer's Republican convention in New York is a tempting target.
And while the public has been warned about chemical or radiological weapons, there's actually more concern about a conventional attack, like a truck bomb.
KEN PIERNICK, FORMER FBI COUNTERTERRORISM: Vehicle-borne bombs are fairly easy to conduct, generally speaking. You just need a secluded place to construct it, and then you need a means to get to your target, and then you do your business. So those are very easy. Getting into a chemical facility or some other kind of sensitive infrastructure requires a great deal of study and planning and coordination.
ARENA: U.S. officials say they believe there may already be operatives in the United States but insist the intelligence on that front is vague.
To find out more, officials say, investigators are closely examining visa holders already in the U.S. from African countries like Somalia, where al Qaeda has increased its recruiting effort. And the FBI says it has started interviewing individuals based on names, travel records, phone numbers, and any other information gathered by its new task force formed to deal specifically with the current threat. Some Muslim groups are worried about profiling.
NIHAD AWAD, COUNCIL ON AMERICAN-ISLAMIC RELATIONS: We believe that, you know, racial profiling and ethnic scapegoating and just the mentality of round up the usual suspects is counterproductive, ineffective law enforcement, and never worked in the history of this nation. Why do we repeat it?
(END VIDEOTAPE)
COSTELLO: And here are some stories making headlines across America this Tuesday.
Boston's Logan Airport is back at full capacity following a blackout in the international terminal. Two power substations failed, leaving the terminal in the dark for nearly five hours. The outage forced security personnel to check all bags by hand. Fifteen international and 13 domestic flights were delayed.
Nine firefighters were injured battling this huge six alarm blaze at a mattress factory in Brooklyn. It took 200 firefighters almost five hours to get this fire under control. The thick smoke forced most residents of nearby neighborhoods into their homes.
And CNN has learned that former Enron Chairman Kenneth Lay will be indicted some time this week. Possible charges include lying to investors about the company's financial situation. The indictment would come from a special grand jury in Houston that has been investigating Enron's collapse.
Fierce fighting erupts in a West Bank refugee camp when Israeli troops move in to arrest suspected militants. Four Palestinians and an Israeli soldier were killed in that gun battle and three people were wounded on both sides.
We take you live to Jerusalem at the bottom of this hour for more on this latest Israeli-Palestinian violence.
And still ahead on DAYBREAK, "Fahrenheit 911" ignites an interest in political documentaries. What will it mean to the candidates on the stump?
Also ahead, seven years after her death, the first permanent memorial opens for Princess Diana. Praise and criticism surround the tribute. We'll talk about it with a royal commentator.
And a generation apart, teenagers now and then -- who's more hip? Who's more reckless? We'll compare.
This is DAYBREAK.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It is 5:15 Eastern. Here's what's all new this morning.
One child was killed, another wounded, when the car they were riding in tried to barrel through a military checkpoint in Baghdad. Soldiers from the U.S.-led multinational force fired on the vehicle as it tried to bypass the checkpoint.
The African Union has agreed to send around 300 peacekeepers to the Darfour region of Sudan. Around 30,000 people have died during the violence in that region and more than a million others have been forced from their homes.
In money news, Coca-Cola has opened a new bottling plant in Somalia. Around 100 armed guards were on hand for the plant's opening. The old plant was destroyed 15 years ago during the country's civil war.
In culture, a Muslim leader in France is urging students to obey the ban on head scarves when they head back to school. France passed a new law that bans religious apparel, such as the Muslim head scarves, and large Christian crosses, from being worn in schools.
In sports, Coach K. Decides to stay. He said no to a multi- million dollar offer to become coach of the Los Angeles Lakers. Instead, Coach K. will return to Duke University for his 25th season.
L.A. Lakers -- Chad.
MYERS: Carol?
COSTELLO: Yes, Chad?
MYERS: That would have been like winning the lottery. Forty million dollars! No, no thank you.
COSTELLO: Oh, if he had gone to L.A.?
MYERS: Yes.
COSTELLO: Yes, but he's been at Duke for 25 years and, you know, you never know what's going to happen when you go to...
MYERS: I know. He just...
COSTELLO: And that is a troubled team, the L.A. Lakers, Chad.
MYERS: Yes. A bunch of whiners at times.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Time to check the overseas markets to see what may be on tap for Wall Street after the long holiday weekend.
For that, we head to London and Todd Benjamin. But I guess it wasn't a holiday weekend for you -- Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Nor for you. You were working yesterday. We're back again today, Carol, and the markets are still struggling here. I've got to tell you, the FTSE is down a third a percent here in London. The DAX is off three quarters of one percent in Frankfurt. And the CAC in Paris is off better than half of one percent.
Again, oil is a focus. That sabotage attack over the weekend in Iraq on some pipelines there means that oil is now trading at 39 bucks a barrel, up $0.73 in electronic trading. Not only are traders worried about the situation in Iraq, but also in Russia. A big oil company there called Yukos counts for about a fifth of Russia's oil production. It's got a lot of problems with the government, including the bank accounts of Yukos have been frozen and there are worries that Yukos won't be able to produce as much oil as a result of their problems. So that's also helping to boost the price of oil.
In terms of what the U.S. markets can expect, we'll get a report on the service part of the economy today. But the bigger focus, of course, is going to be earnings. And the earnings season kicks off in a big way tomorrow with Alcoa and Yahoo!, and then on Friday, General Electric.
Now, the earnings season is expected to be quite strong. Earnings are expected to be up better than 20 percent. And if that's the case, that would be the fourth quarter in a row that earnings have exceeded 20 percent.
But the question is whether the earnings will be so strong that it will snap Wall Street out of its malaise, because the S&P 500 Index has been down three weeks in a row and get it moving again. We'll have to wait and see -- back to you.
COSTELLO: Yes, we will.
Todd Benjamin live in London for us this morning.
Thank you.
Let's talk box office bucks and political battles. The number two movie in the nation is Michael Moore's "Fahrenheit 911."
So, does this mean more political documentaries will be coming to a theater near you?
Our Sibila Vargas takes a look at the Moore effect.
(BEGIN VIDEOTAPE)
(BEGIN VIDEO CLIP FROM "FAHRENHEIT 911")
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I call upon all nations to do everything they can to stop these terrorist killers. Thank you. Now watch this drive.
(END VIDEO CLIP)
SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT (voice-over): Michael Moore's anti-Bush documentary, "Fahrenheit 911," made history with its unprecedented box office success.
GINA MCINTYRE, "THE HOLLYWOOD REPORTER": The controversy that has surrounded the film, I believe, has probably contributed a great deal to how well it's performed, which is something that we saw earlier in the year with "The Passion of the Christ." It became an event film. It was the movie that you had to see because everybody was talking about it.
VARGAS: And it's the movie's financial success that some feel may attract greater public attention to politically driven documentaries.
MCINTYRE: I think any time any film does well in Hollywood, you will see more of that kind of film.
VARGAS: Director and predecessor Robert Greenwald's documentary, "Uncovered: The War In Iraq," has already sold more than 100,000 DVDs. Its theatric release is scheduled in mid-August, just two weeks before the Republican national convention.
ROBERT GREENWALD, DIRECTOR, "UNCOVERED: THE WAR ON IRAQ": I was thrilled about the success of "Fahrenheit 911." What it means to me personally is that there's an audience for documentaries.
VARGAS: Greenwald's film isn't the only documentary that may benefit from the Moore effect. Cinema Libre Studios, the distributor behind "Uncovered," is also backing more political documentaries, like "The Oil Factor: Behind The War On Terror," and "Unprecedented: The 2000 Presidential Election," set to release in upcoming months.
MARTIN KAPLAN, ANNENBERG SCHOOL, USC: There have always been documentary makers and they've always had an impact on social issues. But those have been localized social issues rather than attempts to mobilize a nation around a political position.
VARGAS (on camera): So far, films with a liberal slant seem poised to dominate the market. But conservative groups are striking back. A new film festival in Dallas, called The American Film Renaissance, is scheduled, symbolically enough, for September 11.
(voice-over): "Michael Moore Hates America" and "Confronting Iraq" are just two of the films on the festival's slate.
KAPLAN: The movie business, setting aside politics, is a business. And people will only show pictures for as long as they think they can sell popcorn based on them.
VARGAS: Whether the success of "Fahrenheit 911" will be repeated by these films remains to be seen. But in this election year, documentaries have become a new political battleground.
Sibila Vargas, CNN, Los Angeles.
(END VIDEOTAPE)
COSTELLO: Well, this is a time honored tradition, but some peaceful protesters are peeved. We'll tell you why these people are in the buff, naked, for the sake of the bulls.
(COMMERCIAL BREAK)
COSTELLO: You know what happens later today in Spain, don't you?
MYERS: I do.
COSTELLO: The running of the bulls.
MYERS: The first of eight, eight different running of the bulls. We only usually show one, but they do this eight different times over the festival, as they call it.
COSTELLO: Well, this year protesters have gone into -- I guess there have always been protesters, but this year the protesters...
MYERS: Now...
COSTELLO: ... plan to protest partially nude just to get their point across even stronger.
MYERS: And you know why they can't be naked? Because they didn't get the permit.
COSTELLO: Right. If they had gotten the proper permit, they could have protested completely naked, but since they didn't, they can only protest partially naked.
MYERS: Now, I think they're going to run down the same streets as the bulls are.
COSTELLO: Yes. Only they're -- oh, my.
MYERS: Oh.
COSTELLO: These...
MYERS: I hope you weren't eating.
COSTELLO: Chad! Chad Everett Myers! See, I know his middle name.
These people are from PETA.
MYERS: We're so sorry for that.
COSTELLO: PETA.
MYERS: Yes, they are.
COSTELLO: And they say that -- well, actually, a lot of people think this is cruel.
MYERS: Sure.
COSTELLO: Because the bulls are confused. They go into a panic. They don't know what's happening.
MYERS: They don't.
COSTELLO: They don't. But they do it every year.
MYERS: And must -- I think their point is must there be eight of these things? OK, so...
COSTELLO: OK, well, we'll...
MYERS: Maybe one is enough.
COSTELLO: ... keep our eye on the protesters and the running of the bulls.
MYERS: Fair enough.
COSTELLO: We're going to talk to a guy who's going to run with the bulls so you can...
MYERS: Oh, good.
COSTELLO: ... he can explain to us why.
MYERS: What the point is.
COSTELLO: Why?
MYERS: Right.
COSTELLO: Time for our DAYBREAK Eye-Opener. I think we just had it.
What a parking space!
MYERS: Oh, my.
COSTELLO: The owner of this apartment has a new sun roof thanks to a driver who hit the gas instead of the brake. Don't you hate when that happens?
MYERS: Oh, I hate when I do that.
COSTELLO: Yes. The gas launched this Ford Taurus into the upstairs apartment. Luckily the woman who lives there was in Las Vegas on vacation. She did hit the jackpot, didn't she?
MYERS: I was going to say. COSTELLO: The driver escaped injury, as well.
Meet Hudson Super -- or it could be Soaper (ph). He's a presidential prodigy. The 3-year-old can easily identify and name all 43 American presidents.
MYERS: OK.
COSTELLO: And he hasn't even learned to read yet. In case you're wondering, his favorite president is Richard Nixon, but nobody really knows why.
Need a hug? Oh, I do this morning. Hundreds of people gathered north of Dallas to meet Amma. Amma is a Hindu woman who travels around the world offering hugs and blessings. She has been known to hug more than 30,000 people in one day. It's estimated that the 50- year-old has hugged more than 24 million people in her lifetime. Now, that's a nice story.
MYERS: Do you need a hug?
COSTELLO: I need more than a hug this morning.
MYERS: Oh, I need a hug.
COSTELLO: Thank you.
In the next half hour of DAYBREAK, a flurry of speculation could come to an end today. John Kerry sets the stage for a major announcement. Who will be Kerry's number two?
And violence in the Mideast overnight as heavy fighting breaks out in the West Bank. We're going to take you live to Jerusalem.
And the Army is looking for a few good men, but one in particular they could do without. The story of the wannabe soldier ahead.
This is DAYBREAK for Tuesday.
(COMMERCIAL BREAK)
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