Return to Transcripts main page

CNN Live At Daybreak

Kerry Expected to Name V.P. Choice

Aired July 06, 2004 - 06:00   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: Could this be the day? A big announcement expected from the Kerry camp on the president's birthday.
It is Tuesday, July 6.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date now with the latest headlines.

Barring a last minute hitch, Senator John Kerry is expected to announce his choice for a vice presidential running mate just about three hours from now. He'll do that 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, a tax on Iraq's crude oil exports and possible disruptions to Russian and Nigerian oil supplies are now affecting U.S. oil prices. U.S. oil prices climbed more than $0.60 a barrel today.

In pop culture, "Spiderman 2" won the holiday weekend in a humongous way. It's estimated that movie took in more than $115 million. That's the best ever for a four day holiday weekend.

In sports, today's stage of the Tour de France bike race kicks off in less than 25 minutes. American Lance Armstrong, going for his record sixth straight win, is in fourth place, 18 seconds behind the leader -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The latest political guessing game, oh, it's almost over. Just about three hours from now, Senator John Kerry is finally expected to reveal his choice for a vice presidential running mate.

Our Skip Loescher has more for you from Washington. (BEGIN VIDEOTAPE)

SKIP LOESCHER, CNN CORRESPONDENT (voice-over): Unless there's a hitch, we should know in a few hours who John Kerry's running mate will be.

John Kerry invited voters to join him this morning at Market Square in Pittsburgh.

SENATOR JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We're going to have some fun and then we'll head out to the Midwest again and back on the trail.

LOESCHER: Kerry's been meeting quietly with prospective running mates and having fun keeping his decision-making process private.

KERRY: I have communicated to nobody, you know, what any decision is.

LOESCHER: But before announcing his decision, Kerry promised to telephone those he did not pick and, of course, tell the winner.

Among those thought to be on Kerry's short list, experts say, Senator John Edwards. He was shaking hands on a North Carolina beach yesterday and at a fund raiser in Boston, Kerry's hometown. Pundits say Edwards has strong appeal among younger voters, but lacks foreign policy experience.

Congressman Dick Gephardt has plenty of experience, having spent 28 years in the House of Representatives, rising to the rank of minority leader. He has strong ties to labor and he and Kerry are friends.

REP. DICK GEPHARDT (D-MO), MINORITY LEADER: I don't know anything. I'm just glad to be here and I'd refer all questions to the Kerry campaign.

LOESCHER: Kerry's also been looking at Florida's Bob Graham, a three term senator. He's been chairman and ranking member of the Intelligence Committee. A lack of foreign policy experience and name recognition was a drawback to Iowa Governor Tom Vilsack's chances.

(on camera): But then there can always be a political wild card.

In Washington, I'm Skip Loescher.

Back to you.

(END VIDEOTAPE)

COSTELLO: Kerry's announcement is expected at a 9:00 a.m. Eastern rally at the beginning of a three day campaign swing. CNN, of course, plans live coverage of that announcement.

We do have some new Gallup poll numbers for you this morning. Listen to this. The numbers come from a poll conducted June 9 through June 30. Among registered white voters, 53 percent favor Bush; 41 percent Kerry. Among blacks, 12 percent favor Bush; 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 President Bush is doing his job.

The family of an American Marine missing in Iraq issues a plea to those holding him this morning. A group claiming to have kidnapped Corporal Wassef Hassoun say they've taken him to a safe place after he expressed his determination not to go back to U.S. forces. Now, there is no confirmation on this claim. The Lebanese born Marine had earlier been reported killed.

His Utah family is asking for mercy.

(BEGIN VIDEO CLIP)

TAREK NOSSEIR, HASSOUN FAMILY SPOKESMAN: We pray the 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 (SPEAKING IN ARABIC) -- be merciful to those on Earth and mercy will come, will descend upon you from Heaven.

(END VIDEO CLIP)

COSTELLO: Hassoun has been missing since June 20.

On the war front, U.S. forces are still aggressively going after insurgents loyal to Islamic militant leader Abu Musab al-Zarqawi. American planes dropped bombs on a suspected militant safe house in Fallujah.

More now from CNN Baghdad bureau chief Jane Arraf.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF (voice-over): U.S. forces have struck what they call Zarqawi network safe houses for the past two weeks in Fallujah, where battles with U.S. forces have made the city a magnet for foreign insurgents.

Iraqi and American officials said the strike relied on Iraqi intelligence and American weapons. The U.S.-led multinational forces say they used four 500-pound bombs and two 1,000-pound bombs in the attack Monday evening. They say the strike was aimed at destroying terrorist networks whose car bombs and suicide vests are killing innocent Iraqis.

Officials called it an attack on a mujahedeen safe house. But for angry residents of this neighborhood, the dead were ordinary people. "Don't say they're mujahedeen. Those who are killed here are families, and we will take revenge on Iyad Allawi and on the Americans," said this man.

Hospital officials and witnesses say at least eight people were killed in the strike, including at least one woman and three children. (on camera): U.S. and Iraqi officials are going to great lengths to make the point that this was a joint operation. The prime minister has said that it's an indication that the sovereign nation of Iraq will hunt down terrorists and kill them, one by one. And he appealed to Iraqis to provide information to help him.

(voice-over): And there are more measures to come. Allawi is expected to announce a national security plan that would give his caretaker government more powers to detain suspects, mobilize the armed forces, and impose curfews. It would also offer an amnesty to low-level insurgents.

Jane Arraf, CNN, Baghdad.

(END VIDEOTAPE)

COSTELLO: And here are some stories making headlines "Across America" this Tuesday.

Nine firefighters were injured battling this huge six alarm fire at a mattress factory in Brooklyn. It took 200 firefighters five hours to get this thing under control. The thick smoke forced most residents of nearby neighborhoods into their homes.

Employees will get back to work today at a Kansas meat packing plant that was the scene of a deadly shooting. It was just four days ago that an employee at ConAgra Foods killed five coworkers and injured two others. He then turned the gun on himself. The plant has now added extra security in the wake of that shooting.

In Miami, two children are dead after being thrown over a highway overpass during a traffic accident. Neither child was wearing a seatbelt when the SUV rolled over. One other child and the driver of the SUV are in critical condition this morning. Police are still investigating.

Coming up on DAYBREAK, dissecting the veep stakes. Who's really a contender on John Kerry's short list of running mates?

And if you get caught illegally downloading music, who takes the blame? A tough new bill is making the business buzz today.

And then, run fast and pray hard -- it's destination Pamplona for the running of the bulls.

And a little guy with a huge memory. He can't read yet but he knows presidential history better than you, I bet.

This is DAYBREAK for July 6.

(COMMERCIAL BREAK)

COSTELLO: We want to take you live to London and Hyde Park. A memorial fountain is being unveiled for Princess Diana. As you can see, the queen is speaking.

Let's listen.

(JOINED IN PROGRESS)

QUEEN ELIZABETH: ... extraordinary effect Diana had on those around her. Her drive to empathize with those in difficulty, hardship or distress; her willingness to embrace a new cause; her shrewd ability to size up all those she met allowed her not only to touch people's lives, but to change them.

This is her wider legacy. But I cannot forget and nor can those of us here today who knew her much more personally as sister, wife, mother or daughter-in-law, the Diana who made such an impact on our lives. Of course, there were difficult times, but memories mellow with the passing of the years. I remember especially the happiness she gave to my two grandsons.

Such memories are most people's memorials. The departed live on in those they have helped to shape in life. But for some exceptional people there is a need for something more, a permanent and more public recognition.

Creating a memorial to Diana has been no easy task. To present a likeness seemed, at best, unnecessary, for someone whose image continues to exert such fascination the world over. To find some other way to capture her spirit has been the challenge.

I congratulate those who have created the memorial before us. I thank both the design team for the imagination which they have brought to this project and to those who have realized that concept with such care and craftsmanship.

I believe that you have given the park at the very heart of our capital city that Diana knew so well a highly original memorial which captures something of the essence of a remarkable human being. I think Diana would have enjoyed it and I believe she would want all of us to do so, too.

Ladies and gentlemen, on behalf of Charles, William, Harry and all my family, and of all the Spencer family with us today, I have much pleasure in declaring the Diana Princess of Wales Memorial Fountain open.

COSTELLO: And that was the queen dedicating a memorial fountain to Princess Diana. It's a large oval fountain with water running down the sides. It has non-slip stones in it so children can go in and play. And it was designed by an American architect.

We'll have much more on the Princess Diana Memorial Fountain in Hyde Park in London later on CNN.

Well, it is supposed to happen in Pittsburgh today. John Kerry has a name and he will drop that name at a campaign rally at 9:00 a.m. Eastern. He's done a good job at keeping everyone guessing, but is it really that big a deal?

Live from New York, Doug Schoen, a Democratic strategist. Good morning, Doug.

DOUG SCHOEN, DEMOCRATIC STRATEGIST: Good morning.

COSTELLO: This whole V.P. process has been cloaked in secrecy, except for the John McCain thing. Why? Why has it been such a big secret?

SCHOEN: Well, I think John Kerry wants to get the maximum publicity benefit for the decision and if it leaks out, I think it loses its urgency and the immediacy. And I think it's now a media event. You're going to cover it. The Internet will have it. There will be phone calls, a whole lot of hoopla at the rally in Pittsburgh, as you suggested.

COSTELLO: Well, John Kerry has certainly done a good job at keeping it a secret and making it a media event.

Listen to what he said at about 6:30 Eastern time last night.

(BEGIN VIDEO CLIP)

KERRY: I have no comments at all on the (UNINTELLIGIBLE). I don't know how people are reporting some of the things they are. But 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.

(END VIDEO CLIP)

COSTELLO: Which he is supposed to do at 9:00 a.m. Eastern in Pittsburgh.

SCHOEN: Yes.

COSTELLO: But wouldn't it be anti-climactic if he just says it's John Edwards?

SCHOEN: I don't think it would be anti-climactic. I think Edwards leads the polls. He has galvanized Americans, and particularly young people. I think he has strengths that John Kerry doesn't in terms of his rhetoric, his appeal and his political base. And I think as a first term U.S. senator, he would provide a degree of energy that you're seeing on the screen right now.

COSTELLO: Does this mean you think it'll be John Edwards?

SCHOEN: I think he's certainly one of the absolute top on the list. He broke his vacation and came for a secret meeting in Washington last week with Kerry. And I think it's either him, perhaps Gephardt, Vilsack or potentially a wild card.

COSTELLO: But, you know, a lot of people think John Edwards just doesn't have the experience yet. They say oh, he's good, but -- and he'll be really good years from now, but not right now. SCHOEN: Well, remember, we had a president by the name of John Kennedy who they said the same thing about. Bill Clinton, they said he didn't have the right kind of experience, was a very, very successful president in terms of foreign policy and domestic policy. So I think John Edwards has demonstrated a galvanizing ability, to rally the American people, to speak compellingly about health care. And if he's the choice, I think he'll really add to the ticket.

COSTELLO: Does it really matter, though, who the vice president is? I mean has -- have things changed in light of Dick Cheney's role as vice president in the Bush administration?

SCHOEN: Well, first and foremost, the vice president has to work well with the president, as Cheney has worked well with Bush. So that's the key question. But if you look at the 1960 presidential election, Lyndon Johnson carried Texas for John F. Kennedy. Al Gore certainly was helpful in the South to Bill Clinton in 1992.

So I think that the vice president, whoever he may be, can be a galvanizing figure in the campaign.

COSTELLO: Well, isn't the other important thing on who can best debate Dick Cheney? I mean who in the list of Kerry candidates can best debate Cheney?

SCHOEN: Well, you have a couple of good debaters. Edwards is a good debater. Dick Gephardt is a good debater. And having read interviews with Governor Vilsack, he certainly is ready to raise questions about the war in Iraq and the handling of American economic policy with Vice President Cheney.

So I think the Democrats are blessed with, on the short list, three very good debaters.

COSTELLO: Spoken like a true Democrat.

SCHOEN: Thank you.

COSTELLO: Doug Schoen, a Democratic strategist.

SCHOEN: Appreciate it.

COSTELLO: Join us live from New York.

Thank you.

SCHOEN: Thank you.

COSTELLO: Your news, money, weather and sports.

6:19 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 that checkpoint.

The African Union has agreed to send around 300 peacekeepers to the Darfur region of Sudan. Around 30,000 people have died during violence in the 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 Muslim head scarves and large Christian crosses from being worn in schools.

In sports, Coach K decides to stay. He says 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. He wanted no part of that dysfunctional team -- Chad.

MYERS: Multimillion, Carol? Is that what you said?

COSTELLO: Yes.

MYERS: $40 million.

COSTELLO: That's multi, multi, multi.

MYERS: Yes. My goodness. I could almost deal with that team for a couple of years for that.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Time for a little business buzz.

In the fuzzy world of music downloads, who is responsible for illegal actions? Is it your 11-year-old child? Well, the government gets ready to weigh in. That's really -- that's a question a lot of parents are asking, because their kids know how to do this, Carrie.

CARRIE LEE, CNN CORRESPONDENT: The kids know how to do it. The parents are clueless. It's a big problem, Carol.

COSTELLO: Exactly.

LEE: Well, you know, it could go beyond the kids and other people deliberately downloading music illegally. "USA Today" reporting that, you know, you think about iPod and all of these other tech gadgets, how popular they have become. Well, its future and other tech gadgets' future could be seeing some trouble if a controversial congressional bill passes.

Now, this is according to opponents of the Inducing Infringement of Copyrights Acts in the Senate. And it would make operators of media swap networks such as Kazaa liable for users' actions. It would also make it easier for entertainment companies to sue tech firms for copyright infringement. A lot of players here.

Opponents say the language is so broad it could even apply to MP3 players, CDs and DVD recorders; could even make it apply to media organizations that give consumers tips on using digital content.

Now, no surprise that the music and recording industry support the bill. But a lot of tech players -- names like Google, Yahoo!, Intel, eBay -- they're pretty worried. So a high profile case here. A lot of big names involved. We'll see what happens.

Once again, "USA Today" reporting on this -- Carol.

COSTELLO: A quick look at the futures, Carrie?

LEE: Yes, things looking a bit weak this morning.

A quick recap on last week, kind of lackluster action, really, for the bulls. We did see some selling. The major market indices not gaining too much ground. Today we are -- or you can see all of them losing about one percent, a little bit less. The earnings reporting season, though, does kick off this week. Tomorrow we will hear from Alcoa, the first Dow component to report for q2, as well as Yahoo!. G.E. out on Friday -- back to you.

COSTELLO: Carrie Lee live from the NASDAQ market site.

Thank you.

Still to come on DAYBREAK, a patriotic prodigy.

(BEGIN VIDEO CLIP)

HUDSON SOFFER: Roosevelt, Ford, Harry S. Truman. Nixon, though, he was the best!

(END VIDEO CLIP)

COSTELLO: He liked Richard Nixon the best. A pint sized reminder that we could all brush up on our president and politics this campaign year.

This is DAYBREAK.

COMMERCIAL

COSTELLO: Time now for our DAYBREAK "Eye-Opener."

Can you name all 43 presidents? Can you?

Well, there is a 3-year-old in San Diego who's somewhat of a presidential prodigy. And you'll never guess how he learned the leaders.

We get the story from Larry Himmel of CNN affiliate KFMB in San Diego.

(BEGIN VIDEOTAPE)

LARRY HIMMEL, KFMB CORRESPONDENT (voice-over): Hudson Soffer doesn't know how to drive a car, and at three years old, he can't read. But in American history, he's already at the head of the class.

HUDSON SOFFER: (UNINTELLIGIBLE). Jackson. Martin Van Buren. Harrison. Tyler.

HIMMEL: When it comes to recognizing all our presidents, Hudson is money.

HUDSON SOFFER: Washington.

HIMMEL (on camera): OK. Who's that?

HUDSON SOFFER: Lincoln. He was different. Lincoln, this is a scary Lincoln.

HIMMEL (voice-over): And don't try to throw him a trick question like Hamilton on a $10 bill.

HUDSON SOFFER: He's not a president.

HIMMEL: It all started when the Soffer family began eating on placemats with the presidents' pictures.

HENRY SOFFER: In a couple weeks, he kind of like knew them all. And I just, you know, I couldn't believe it, because I kept saying who's this, who's this, Tim, and he just knew it one after the other.

HUDSON SOFFER: Roosevelt. Ford. Harry S. Truman. Nixon. He was the best.

HIMMEL (on camera): Who's this one here?

HUDSON SOFFER: Daddy Bush.

HIMMEL: Daddy Bush? Yes.

(voice-over): This historian also knows the inner workings of the White House.

(on camera): Do you know what presidents do?

HUDSON SOFFER: Yes.

HIMMEL: What do they do, mostly?

HUDSON SOFFER: They fix flags and stuff.

HIMMEL (voice-over): And Hudson's knowledge isn't just presidential.

HUDSON SOFFER: And that's the team. Nancy Reagan and Ronald Reagan. That's Hillary and Bill, and Laura and the president.

HIMMEL: Hudson's not even in public school, but you know this pint sized patriot is going to cruise through civics class and ace American history because all this knowledge will come in handy for this young Yankee doodle dandy.

(END VIDEOTAPE)

COSTELLO: We need him in here during the election. He can tell us who everyone is.

That was Larry Himmel of CNN affiliate KFMB in San Diego.

Now, of course, there have really only been 42 men who've served as president. Grover Cleveland was elected twice, but not for consecutive terms. He is the 22nd and the 24th president. Now you know. Or now we've renewed your knowledge.

Here's what's all new in the next half hour of DAYBREAK.

More on the new memorial to Princess Diana. A tribute in water that's stirring quite a debate in England.

Plus, insight this morning about where the blame will be placed for some prewar intelligence on Iraq.

And later, a rush like no other -- the running of the bulls. I'll talk to a man who captures the thrill of the chase every year.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired July 6, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Could this be the day? A big announcement expected from the Kerry camp on the president's birthday.
It is Tuesday, July 6.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Let me bring you up to date now with the latest headlines.

Barring a last minute hitch, Senator John Kerry is expected to announce his choice for a vice presidential running mate just about three hours from now. He'll do that 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, a tax on Iraq's crude oil exports and possible disruptions to Russian and Nigerian oil supplies are now affecting U.S. oil prices. U.S. oil prices climbed more than $0.60 a barrel today.

In pop culture, "Spiderman 2" won the holiday weekend in a humongous way. It's estimated that movie took in more than $115 million. That's the best ever for a four day holiday weekend.

In sports, today's stage of the Tour de France bike race kicks off in less than 25 minutes. American Lance Armstrong, going for his record sixth straight win, is in fourth place, 18 seconds behind the leader -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The latest political guessing game, oh, it's almost over. Just about three hours from now, Senator John Kerry is finally expected to reveal his choice for a vice presidential running mate.

Our Skip Loescher has more for you from Washington. (BEGIN VIDEOTAPE)

SKIP LOESCHER, CNN CORRESPONDENT (voice-over): Unless there's a hitch, we should know in a few hours who John Kerry's running mate will be.

John Kerry invited voters to join him this morning at Market Square in Pittsburgh.

SENATOR JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We're going to have some fun and then we'll head out to the Midwest again and back on the trail.

LOESCHER: Kerry's been meeting quietly with prospective running mates and having fun keeping his decision-making process private.

KERRY: I have communicated to nobody, you know, what any decision is.

LOESCHER: But before announcing his decision, Kerry promised to telephone those he did not pick and, of course, tell the winner.

Among those thought to be on Kerry's short list, experts say, Senator John Edwards. He was shaking hands on a North Carolina beach yesterday and at a fund raiser in Boston, Kerry's hometown. Pundits say Edwards has strong appeal among younger voters, but lacks foreign policy experience.

Congressman Dick Gephardt has plenty of experience, having spent 28 years in the House of Representatives, rising to the rank of minority leader. He has strong ties to labor and he and Kerry are friends.

REP. DICK GEPHARDT (D-MO), MINORITY LEADER: I don't know anything. I'm just glad to be here and I'd refer all questions to the Kerry campaign.

LOESCHER: Kerry's also been looking at Florida's Bob Graham, a three term senator. He's been chairman and ranking member of the Intelligence Committee. A lack of foreign policy experience and name recognition was a drawback to Iowa Governor Tom Vilsack's chances.

(on camera): But then there can always be a political wild card.

In Washington, I'm Skip Loescher.

Back to you.

(END VIDEOTAPE)

COSTELLO: Kerry's announcement is expected at a 9:00 a.m. Eastern rally at the beginning of a three day campaign swing. CNN, of course, plans live coverage of that announcement.

We do have some new Gallup poll numbers for you this morning. Listen to this. The numbers come from a poll conducted June 9 through June 30. Among registered white voters, 53 percent favor Bush; 41 percent Kerry. Among blacks, 12 percent favor Bush; 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 President Bush is doing his job.

The family of an American Marine missing in Iraq issues a plea to those holding him this morning. A group claiming to have kidnapped Corporal Wassef Hassoun say they've taken him to a safe place after he expressed his determination not to go back to U.S. forces. Now, there is no confirmation on this claim. The Lebanese born Marine had earlier been reported killed.

His Utah family is asking for mercy.

(BEGIN VIDEO CLIP)

TAREK NOSSEIR, HASSOUN FAMILY SPOKESMAN: We pray the 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 (SPEAKING IN ARABIC) -- be merciful to those on Earth and mercy will come, will descend upon you from Heaven.

(END VIDEO CLIP)

COSTELLO: Hassoun has been missing since June 20.

On the war front, U.S. forces are still aggressively going after insurgents loyal to Islamic militant leader Abu Musab al-Zarqawi. American planes dropped bombs on a suspected militant safe house in Fallujah.

More now from CNN Baghdad bureau chief Jane Arraf.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF (voice-over): U.S. forces have struck what they call Zarqawi network safe houses for the past two weeks in Fallujah, where battles with U.S. forces have made the city a magnet for foreign insurgents.

Iraqi and American officials said the strike relied on Iraqi intelligence and American weapons. The U.S.-led multinational forces say they used four 500-pound bombs and two 1,000-pound bombs in the attack Monday evening. They say the strike was aimed at destroying terrorist networks whose car bombs and suicide vests are killing innocent Iraqis.

Officials called it an attack on a mujahedeen safe house. But for angry residents of this neighborhood, the dead were ordinary people. "Don't say they're mujahedeen. Those who are killed here are families, and we will take revenge on Iyad Allawi and on the Americans," said this man.

Hospital officials and witnesses say at least eight people were killed in the strike, including at least one woman and three children. (on camera): U.S. and Iraqi officials are going to great lengths to make the point that this was a joint operation. The prime minister has said that it's an indication that the sovereign nation of Iraq will hunt down terrorists and kill them, one by one. And he appealed to Iraqis to provide information to help him.

(voice-over): And there are more measures to come. Allawi is expected to announce a national security plan that would give his caretaker government more powers to detain suspects, mobilize the armed forces, and impose curfews. It would also offer an amnesty to low-level insurgents.

Jane Arraf, CNN, Baghdad.

(END VIDEOTAPE)

COSTELLO: And here are some stories making headlines "Across America" this Tuesday.

Nine firefighters were injured battling this huge six alarm fire at a mattress factory in Brooklyn. It took 200 firefighters five hours to get this thing under control. The thick smoke forced most residents of nearby neighborhoods into their homes.

Employees will get back to work today at a Kansas meat packing plant that was the scene of a deadly shooting. It was just four days ago that an employee at ConAgra Foods killed five coworkers and injured two others. He then turned the gun on himself. The plant has now added extra security in the wake of that shooting.

In Miami, two children are dead after being thrown over a highway overpass during a traffic accident. Neither child was wearing a seatbelt when the SUV rolled over. One other child and the driver of the SUV are in critical condition this morning. Police are still investigating.

Coming up on DAYBREAK, dissecting the veep stakes. Who's really a contender on John Kerry's short list of running mates?

And if you get caught illegally downloading music, who takes the blame? A tough new bill is making the business buzz today.

And then, run fast and pray hard -- it's destination Pamplona for the running of the bulls.

And a little guy with a huge memory. He can't read yet but he knows presidential history better than you, I bet.

This is DAYBREAK for July 6.

(COMMERCIAL BREAK)

COSTELLO: We want to take you live to London and Hyde Park. A memorial fountain is being unveiled for Princess Diana. As you can see, the queen is speaking.

Let's listen.

(JOINED IN PROGRESS)

QUEEN ELIZABETH: ... extraordinary effect Diana had on those around her. Her drive to empathize with those in difficulty, hardship or distress; her willingness to embrace a new cause; her shrewd ability to size up all those she met allowed her not only to touch people's lives, but to change them.

This is her wider legacy. But I cannot forget and nor can those of us here today who knew her much more personally as sister, wife, mother or daughter-in-law, the Diana who made such an impact on our lives. Of course, there were difficult times, but memories mellow with the passing of the years. I remember especially the happiness she gave to my two grandsons.

Such memories are most people's memorials. The departed live on in those they have helped to shape in life. But for some exceptional people there is a need for something more, a permanent and more public recognition.

Creating a memorial to Diana has been no easy task. To present a likeness seemed, at best, unnecessary, for someone whose image continues to exert such fascination the world over. To find some other way to capture her spirit has been the challenge.

I congratulate those who have created the memorial before us. I thank both the design team for the imagination which they have brought to this project and to those who have realized that concept with such care and craftsmanship.

I believe that you have given the park at the very heart of our capital city that Diana knew so well a highly original memorial which captures something of the essence of a remarkable human being. I think Diana would have enjoyed it and I believe she would want all of us to do so, too.

Ladies and gentlemen, on behalf of Charles, William, Harry and all my family, and of all the Spencer family with us today, I have much pleasure in declaring the Diana Princess of Wales Memorial Fountain open.

COSTELLO: And that was the queen dedicating a memorial fountain to Princess Diana. It's a large oval fountain with water running down the sides. It has non-slip stones in it so children can go in and play. And it was designed by an American architect.

We'll have much more on the Princess Diana Memorial Fountain in Hyde Park in London later on CNN.

Well, it is supposed to happen in Pittsburgh today. John Kerry has a name and he will drop that name at a campaign rally at 9:00 a.m. Eastern. He's done a good job at keeping everyone guessing, but is it really that big a deal?

Live from New York, Doug Schoen, a Democratic strategist. Good morning, Doug.

DOUG SCHOEN, DEMOCRATIC STRATEGIST: Good morning.

COSTELLO: This whole V.P. process has been cloaked in secrecy, except for the John McCain thing. Why? Why has it been such a big secret?

SCHOEN: Well, I think John Kerry wants to get the maximum publicity benefit for the decision and if it leaks out, I think it loses its urgency and the immediacy. And I think it's now a media event. You're going to cover it. The Internet will have it. There will be phone calls, a whole lot of hoopla at the rally in Pittsburgh, as you suggested.

COSTELLO: Well, John Kerry has certainly done a good job at keeping it a secret and making it a media event.

Listen to what he said at about 6:30 Eastern time last night.

(BEGIN VIDEO CLIP)

KERRY: I have no comments at all on the (UNINTELLIGIBLE). I don't know how people are reporting some of the things they are. But 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.

(END VIDEO CLIP)

COSTELLO: Which he is supposed to do at 9:00 a.m. Eastern in Pittsburgh.

SCHOEN: Yes.

COSTELLO: But wouldn't it be anti-climactic if he just says it's John Edwards?

SCHOEN: I don't think it would be anti-climactic. I think Edwards leads the polls. He has galvanized Americans, and particularly young people. I think he has strengths that John Kerry doesn't in terms of his rhetoric, his appeal and his political base. And I think as a first term U.S. senator, he would provide a degree of energy that you're seeing on the screen right now.

COSTELLO: Does this mean you think it'll be John Edwards?

SCHOEN: I think he's certainly one of the absolute top on the list. He broke his vacation and came for a secret meeting in Washington last week with Kerry. And I think it's either him, perhaps Gephardt, Vilsack or potentially a wild card.

COSTELLO: But, you know, a lot of people think John Edwards just doesn't have the experience yet. They say oh, he's good, but -- and he'll be really good years from now, but not right now. SCHOEN: Well, remember, we had a president by the name of John Kennedy who they said the same thing about. Bill Clinton, they said he didn't have the right kind of experience, was a very, very successful president in terms of foreign policy and domestic policy. So I think John Edwards has demonstrated a galvanizing ability, to rally the American people, to speak compellingly about health care. And if he's the choice, I think he'll really add to the ticket.

COSTELLO: Does it really matter, though, who the vice president is? I mean has -- have things changed in light of Dick Cheney's role as vice president in the Bush administration?

SCHOEN: Well, first and foremost, the vice president has to work well with the president, as Cheney has worked well with Bush. So that's the key question. But if you look at the 1960 presidential election, Lyndon Johnson carried Texas for John F. Kennedy. Al Gore certainly was helpful in the South to Bill Clinton in 1992.

So I think that the vice president, whoever he may be, can be a galvanizing figure in the campaign.

COSTELLO: Well, isn't the other important thing on who can best debate Dick Cheney? I mean who in the list of Kerry candidates can best debate Cheney?

SCHOEN: Well, you have a couple of good debaters. Edwards is a good debater. Dick Gephardt is a good debater. And having read interviews with Governor Vilsack, he certainly is ready to raise questions about the war in Iraq and the handling of American economic policy with Vice President Cheney.

So I think the Democrats are blessed with, on the short list, three very good debaters.

COSTELLO: Spoken like a true Democrat.

SCHOEN: Thank you.

COSTELLO: Doug Schoen, a Democratic strategist.

SCHOEN: Appreciate it.

COSTELLO: Join us live from New York.

Thank you.

SCHOEN: Thank you.

COSTELLO: Your news, money, weather and sports.

6:19 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 that checkpoint.

The African Union has agreed to send around 300 peacekeepers to the Darfur region of Sudan. Around 30,000 people have died during violence in the 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 Muslim head scarves and large Christian crosses from being worn in schools.

In sports, Coach K decides to stay. He says 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. He wanted no part of that dysfunctional team -- Chad.

MYERS: Multimillion, Carol? Is that what you said?

COSTELLO: Yes.

MYERS: $40 million.

COSTELLO: That's multi, multi, multi.

MYERS: Yes. My goodness. I could almost deal with that team for a couple of years for that.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Time for a little business buzz.

In the fuzzy world of music downloads, who is responsible for illegal actions? Is it your 11-year-old child? Well, the government gets ready to weigh in. That's really -- that's a question a lot of parents are asking, because their kids know how to do this, Carrie.

CARRIE LEE, CNN CORRESPONDENT: The kids know how to do it. The parents are clueless. It's a big problem, Carol.

COSTELLO: Exactly.

LEE: Well, you know, it could go beyond the kids and other people deliberately downloading music illegally. "USA Today" reporting that, you know, you think about iPod and all of these other tech gadgets, how popular they have become. Well, its future and other tech gadgets' future could be seeing some trouble if a controversial congressional bill passes.

Now, this is according to opponents of the Inducing Infringement of Copyrights Acts in the Senate. And it would make operators of media swap networks such as Kazaa liable for users' actions. It would also make it easier for entertainment companies to sue tech firms for copyright infringement. A lot of players here.

Opponents say the language is so broad it could even apply to MP3 players, CDs and DVD recorders; could even make it apply to media organizations that give consumers tips on using digital content.

Now, no surprise that the music and recording industry support the bill. But a lot of tech players -- names like Google, Yahoo!, Intel, eBay -- they're pretty worried. So a high profile case here. A lot of big names involved. We'll see what happens.

Once again, "USA Today" reporting on this -- Carol.

COSTELLO: A quick look at the futures, Carrie?

LEE: Yes, things looking a bit weak this morning.

A quick recap on last week, kind of lackluster action, really, for the bulls. We did see some selling. The major market indices not gaining too much ground. Today we are -- or you can see all of them losing about one percent, a little bit less. The earnings reporting season, though, does kick off this week. Tomorrow we will hear from Alcoa, the first Dow component to report for q2, as well as Yahoo!. G.E. out on Friday -- back to you.

COSTELLO: Carrie Lee live from the NASDAQ market site.

Thank you.

Still to come on DAYBREAK, a patriotic prodigy.

(BEGIN VIDEO CLIP)

HUDSON SOFFER: Roosevelt, Ford, Harry S. Truman. Nixon, though, he was the best!

(END VIDEO CLIP)

COSTELLO: He liked Richard Nixon the best. A pint sized reminder that we could all brush up on our president and politics this campaign year.

This is DAYBREAK.

COMMERCIAL

COSTELLO: Time now for our DAYBREAK "Eye-Opener."

Can you name all 43 presidents? Can you?

Well, there is a 3-year-old in San Diego who's somewhat of a presidential prodigy. And you'll never guess how he learned the leaders.

We get the story from Larry Himmel of CNN affiliate KFMB in San Diego.

(BEGIN VIDEOTAPE)

LARRY HIMMEL, KFMB CORRESPONDENT (voice-over): Hudson Soffer doesn't know how to drive a car, and at three years old, he can't read. But in American history, he's already at the head of the class.

HUDSON SOFFER: (UNINTELLIGIBLE). Jackson. Martin Van Buren. Harrison. Tyler.

HIMMEL: When it comes to recognizing all our presidents, Hudson is money.

HUDSON SOFFER: Washington.

HIMMEL (on camera): OK. Who's that?

HUDSON SOFFER: Lincoln. He was different. Lincoln, this is a scary Lincoln.

HIMMEL (voice-over): And don't try to throw him a trick question like Hamilton on a $10 bill.

HUDSON SOFFER: He's not a president.

HIMMEL: It all started when the Soffer family began eating on placemats with the presidents' pictures.

HENRY SOFFER: In a couple weeks, he kind of like knew them all. And I just, you know, I couldn't believe it, because I kept saying who's this, who's this, Tim, and he just knew it one after the other.

HUDSON SOFFER: Roosevelt. Ford. Harry S. Truman. Nixon. He was the best.

HIMMEL (on camera): Who's this one here?

HUDSON SOFFER: Daddy Bush.

HIMMEL: Daddy Bush? Yes.

(voice-over): This historian also knows the inner workings of the White House.

(on camera): Do you know what presidents do?

HUDSON SOFFER: Yes.

HIMMEL: What do they do, mostly?

HUDSON SOFFER: They fix flags and stuff.

HIMMEL (voice-over): And Hudson's knowledge isn't just presidential.

HUDSON SOFFER: And that's the team. Nancy Reagan and Ronald Reagan. That's Hillary and Bill, and Laura and the president.

HIMMEL: Hudson's not even in public school, but you know this pint sized patriot is going to cruise through civics class and ace American history because all this knowledge will come in handy for this young Yankee doodle dandy.

(END VIDEOTAPE)

COSTELLO: We need him in here during the election. He can tell us who everyone is.

That was Larry Himmel of CNN affiliate KFMB in San Diego.

Now, of course, there have really only been 42 men who've served as president. Grover Cleveland was elected twice, but not for consecutive terms. He is the 22nd and the 24th president. Now you know. Or now we've renewed your knowledge.

Here's what's all new in the next half hour of DAYBREAK.

More on the new memorial to Princess Diana. A tribute in water that's stirring quite a debate in England.

Plus, insight this morning about where the blame will be placed for some prewar intelligence on Iraq.

And later, a rush like no other -- the running of the bulls. I'll talk to a man who captures the thrill of the chase every year.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com