Return to Transcripts main page

CNN Live At Daybreak

Insurgents in Iraq Say They're Targeting Interim Prime Minister Allawi; Blair Says Report on Prewar Intelligence Vindicates His Government

Aired July 15, 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.


FREDRICKA WHITFIELD, CNN ANCHOR: An anti-Saddam rally in Baghdad. We'll take you live to the Iraqi capital in three minutes.
It's Thursday, July 15, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.

Now in the news, U.S. Marine Corporal Wassef Ali Hassoun is on his way to the United States right now after a delay yesterday. He left a U.S. air base in Germany just about an hour ago and is due in the States in about five or six hours. Hassoun had been reported captured and then released by Iraqi insurgents earlier this month.

The issue of what happened at Iraq's Abu Ghraib Prison is back on Capitol Hill today. The Senate Armed Services Committee will get a closed door briefing on the investigations into the abuse of Iraqi prisoners by some U.S. troops.

Still on Capitol Hill, the House has overwhelmingly voted for a free trade agreement with Australia. Australia's prime minister is lobbying his government today to back the agreement.

What's your favorite, "West Wing" or "Sopranos?" Nominations for the annual prime time Emmy Awards will be announced in a little more than three hours from now.

Keeping you informed, CNN, the most trusted name in news.

All right, got any favorites, Chad?

CHAD MYERS, CNN METEOROLOGIST: You know, they're both after my bedtime.

WHITFIELD: You're kidding?

MYERS: So the answer is no.

WHITFIELD: Oh, OK.

MYERS: I've seen one...

WHITFIELD: Well, I'm going to pull for the "Sopranos." MYERS: I saw one episode of the "Sopranos" and it was really violent. I was like I don't know, whatever.

WHITFIELD: Yes, yes. I know.

MYERS: Anyway, hey, good morning, Fred.

WHITFIELD: It goes with the show.

Hey, good morning to you.

(WEATHER REPORT)

WHITFIELD: Insurgents in Iraq say they are targeting Interim Prime Minister Iyad Allawi. A statement on several Islamic Web sites, reportedly from an insurgent leader, calls the prime minister "Iraq's traitor."

Our Michael Holmes is live in Baghdad with that.

But first he has news of some deadly bombings -- Michael.

MICHAEL HOLMES, CNN CORRESPONDENT: Fredricka, good morning to you.

Yes, there's a lot to get through here. There was a car bomb earlier today in an area called Haditha. Now this car bomb killed at least 10 Iraqis. Thirty were wounded. Among the dead, four Iraqi police. Most of the wounded, I can tell you, though, were civilians.

We're told that this was a large explosion, did heavy damage to the local police station and also several stores and shops, a bank building, as well. I've got some info for you on a suicide attack, an attempted one. That was in the area of Karbala. Now, what happened was they got intelligence about this, the police. They put up roadblocks. A car came toward one of those roadblocks, turned around, drove away, got to within 500 meters of a Bulgarian military base and the car just detonated. The suicide bombers, two of them, the only casualties there.

Meanwhile, in the north of Iraq, a Kurdish family in Kirkuk the victims of what appears to have been a mortar attack gone wrong. Their house was hit. Apparently the target was meant to be a local police station, the target of insurgents. They, this house, 200 meters away, was hit. All of the casualties from the same Kurdish family.

Meanwhile, a demonstration, an angry, loud one here by several hundred Iraqis. It took place really just behind me here, Tahreer Square in central Baghdad. It was an anti-Saddam, anti-terrorism demonstration. Police blocked off roads to allow the protesters to go through. They came from a range of political and moderate religious parties. They called for an end of violence, end to terrorism and the end of Saddam, several of them telling us they wanted to see him hanged. So a lot happening around the country today, of course, following on from that deadly suicide bomb blast just outside the green zone yesterday -- Fredricka.

WHITFIELD: And, Michael, let's talk a little bit about these threats against the life of the prime minister, Iyad Allawi.

What is he doing to protect himself, A, and, B, is he in any way changing his, you know, method of behavior or action based on these repeated threats?

HOLMES: Well, it was very interesting and perhaps significant that yesterday, after the car bombing outside the green zone -- you'll remember, that killed 11 people and wounded several dozen -- we saw the prime minister, Iyad Allawi, outside the green zone walls where this bomb attack happened. He was, as usual, surrounded by heavy security. But it was interesting that he personally went out to take a look.

We're expecting a news conference from him in a little under two hours. We're told that he's going to be discussing security and national issues. Not much other detail there. There is some suggestion he may announce some sort of amnesty for insurgents who want to lay down their arms. However, that's not yet been confirmed.

He is taking precautions, but he's still going about his job. He is inside the green zone most of the time, however, well fortified, well protected.

That threat would be of no surprise to him. He's already been targeted once before, but rockets fired by insurgents missing their mark -- Fredricka.

WHITFIELD: Michael Holmes in Baghdad, thanks for that report.

The White House may have lost a strong ally in the war on terror. The Philippines government is pulling its troops out of Iraq early, as demanded by the captors of a Filipino hostage. The kidnappers say they will release the man if the troop pullout is complete by July 20. We'll have more details in a live report from Manila in the next half hour of DAYBREAK.

The U.S. Marine who mysteriously disappeared in Iraq is on his way home right now. Corporal Wassef Ali Hassoun's flight from Germany had been delayed because of mechanical problems yesterday. Well, the Lebanese born Marine disappeared in Iraq in June and was reportedly captured by militants. It's still not clear how he got from Iraq to Lebanon, 500 miles away.

British newspapers today are filled with headlines detailing the latest investigation surrounding Britain's entry into the Iraq war. Prime Minister Tony Blair says the report on prewar intelligence vindicates his government.

Live now to London and our Robin Oakley -- Robin. ROBIN OAKLEY, CNN CORRESPONDENT: Well, Fredricka, if Tony Blair was hoping that the Hutton inquiry report was going to give him closure on all those accusations over the Iraq war, particularly his claim that Saddam Hussein had weapons of mass destruction he could unleash at 45 minutes notice, well, Mr. Blair was wrong.

Today's media in Britain pretty critical over the findings of the Hutton inquiry report.

(AUDIO GAP)

OAKLEY: The 45 minute claim...

(AUDIO GAP)

WHITFIELD: All right, sorry about that.

We are having some audio problems with Robin Oakley there out of London.

We'll try to return to him as soon as we get that straightened out.

A highly respected CIA analyst offers a chilling assessment of the war on terrorism. The book is called "Imperial Hubris: Why the West Is Losing the War On Terror." The author is remaining anonymous. He writes that President Bush and the West are underestimating Osama bin Laden and al Qaeda. More ominously, the author writes that al Qaeda will launch another attack on U.S. soil even more damaging than in September of the -- September 11 -- and it may include weapons of mass destruction. The book comes out today.

Get an inside perspective on Osama bin Laden from his former son- in-law, Carmen bin Laden. She's a guest on CNN's "AMERICAN MORNING" about two and a half hours from now. She'll talk about the terrorist mastermind and the repressive time she had as a woman living with the bin Laden family in Saudi Arabia.

All right, let's try to go back now to Robin Oakley in London to talk about little bit more about the prewar intelligence report and the reports in the media today -- Robin.

OAKLEY: Well, Fredricka, certainly those British newspapers, "The Butler Report: The Intelligence Flaw," "The Dossier Dodgy," "The 45 Minute Claim Wrong." They list all Lord Butler's criticisms of Tony Blair and the way in which decisions were taken and then they say but it's so curious that Lord Butler says no one's to blame.

And the opposition politicians, of course, are picking up on all the criticisms, particularly of Tony Blair's style of government, his way of taking decisions with a small coterie of advisers instead of giving things out to his cabinet to look at and saying can we ever trust Blair again?

Now, the problem for Tony Blair in looking for closure on the events surrounding the Iraq war is that the Butler inquiry says Saddam Hussein didn't really have those weapons. It criticizes the government for involving the intelligence chiefs and the joint intelligence committee in producing that dossier on Saddam Hussein's weapons, saying they stripped out all the necessary qualifications that should have been in the report.

And although it says that they can find no evidence of bad faith on the prime minister's part, no deliberate distortion, all this is feeding the case of those who said earlier that the government had sexed up its case for war in Iraq and that kind of criticism is going to continue -- Fredricka.

WHITFIELD: And, Robin, unlike for President Bush, who's up for reelection in November, what's at stake for Tony Blair?

OAKLEY: First of all, today he's got two parliamentary by- elections, two vacant seats in the British parliament, both held by Tony Blair's Labor Party. Strong expectation both those seats could be lost to the opposition party, the Liberal Democrats.

Longer-term, it's this question of Tony Blair getting back the trust of the British electorate. Two thirds of those questioned in opinion polls saying they don't trust the way in which Mr. Blair made the case for war.

The other person who's coming badly out of the Butler inquiry is John Scarlett, the chairman of the Joint Intelligence Committee. Mr. Blair appointed him as the new head of MI6, the intelligence gathering agency, while the Butler inquiry was still sitting. Now, he's the man who signed off on the dodgy dossier. A lot of people now saying he should not take up his job, even though the Butler Report specifically said that he should -- Fredricka.

WHITFIELD: All right, Robin Oakley from London.

Thanks very much.

Well, did the lead detective in the Scott Peterson trial lie on the stand? The judge in the case has set a date to hear a mistrial motion over the testimony of Detective Allen Brocchini.

Meanwhile, the latest testimony is again focusing on the physical evidence.

CNN's Ted Rowlands wraps it all up for us from Redwood City, California.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): The court released photographs today showing what prosecutors say is some of the physical evidence against Scott Peterson including one picture with what Detective Dodge Hendee testified are five circular rings left on a flatbed trailer. Prosecutors say those rings which are difficult to see in the evidence photos, are proof that Peterson made a number of cement anchors to weigh down his pregnant wife's body after he threw her in the San Francisco Bay. One cement anchor was recovered in Peterson's boat. That's the only anchor he made according to Peterson's attorneys. Hendee also testified about a hair in a pair of pliers. The hair, prosecutors say, belongs to Laci Peterson.

Late today, the defense started their cross-examination of Detective Hendee.

SCOTT PETERSON, MURDER SUSPECT: I had nothing to do with her disappearance.

ROWLANDS: The judge postponed a ruling on how much the jury will see of the television interviews Peterson did in the weeks following Laci Peterson's disappearance. The interviews contain what prosecutors say are, quote, "numerous admissions that evidence his guilt." They also say he outright lied when talking to ABC's Diane Sawyer when she asked him when he told police about his girlfriend Amber Frey.

PETERSON: I told the police immediately.

DIANE SAWYER, "GOOD MORNING AMERICA": When?

PETERSON: That was the first night -- the police, I spent with the police.

SAWYER: You told them about her?

PETERSON: Yes. From December 24 on.

ROWLANDS: Prosecutors want to show an edited version of the interviews. The judge continued the hearing until July 29.

The judge also continued a defense motion to outright dismiss the case because of prosecutorial misconduct. That hearing has also been set for July 29.

Ted Rowlands, CNN, Redwood City, California.

(END VIDEOTAPE)

WHITFIELD: Well, other news across America this Thursday.

Dramatic pictures of devastation in southern Pennsylvania. Take a look at this. More than a dozen people were sent to the hospital after high winds tore through this neighborhood in Campbelltown. One person remains in critical condition this morning. At least 30 homes were destroyed or heavily damaged. Several funnel clouds were seen in the area.

Bad weather is one reason for the large number of flight delays this summer. The Transportation Department says one out of every five flights is behind schedule. The agency says an increase in the number of travelers coupled with new security measures are also to blame for many of the delays. The judge in the Kobe Bryant sexual assault case has decided to bar the results of a medical exam on Bryant from being entered into evidence. But the judge turned down a defense request to throw out Bryant's initial interview with police. The court also extended the deadline for a possible plea deal until next Tuesday.

We're working on much more for you this morning.

Nelson Mandela brings his own arraigned to the World AIDS Conference. We'll tell you what other issues he's worried about.

Television gets set to honor the best of the small screen. We'll tell you how the Academy is working to shake up this morning's Emmy nominations.

And television stations live and die by their ratings. But are the ratings fair? We'll look at who's really watching what.

(COMMERCIAL BREAK)

WHITFIELD: Your news, money, weather and sports.

It's now 16 minutes after the hour and here is what's all new this morning.

The proposed constitutional amendment banning same-sex marriage is dead for now. In a procedural vote, six Republican senators joined Democrats to keep the measure from moving forward.

Oil prices are back up. The PPB rose to a six week high of more than $41. Concerns over security and supply led to the surge in prices.

In money, the little iPod has had a big effect on profits. Apple Computer says profits have tripled thanks to demand for iPod and their new Max.

In culture, Subway is bringing back that Jared guy. It's part of their new campaign to fight childhood obesity. Jared will appear in commercials with three kids who lost weight while eating at Subway.

In sports, the diesel has left L.A. Lakers center Shaquille O'Neal was officially traded to the Miami Heat for three players and a draft pick. We'll have more on Shaq, Kobe and the Lakers coming up a little bit later.

And let's check in with Chad.

And apparently Shaq said he was looking for another contender.

MYERS: Yes, I thought...

WHITFIELD: It turns out Miami Heat is the contender.

MYERS: I thought they were going to have to trade the Florida Keys for him. My goodness, I mean four for the price of one. There you go.

WHITFIELD: Yes.

MYERS: Hey, good morning.

Nice to be you.

(WEATHER REPORT)

WHITFIELD: Well, those are the headlines.

Wall Street stocks will open lower in a few hours.

Let's see what's happening right now overseas.

For that, we turn to our Todd Benjamin, checking the financial numbers for us from London -- good morning to you, Todd.

TODD BENJAMIN, CNN CORRESPONDENT: Good morning from a cool but at least dry London this morning, Fredricka.

Right now the markets are all down, as you can see.

The DAX in Frankfurt is down about a 1/2 percent.

The CAC is off a 1/3 of a percent.

And the FTSE is off about a 1/3 of a percent.

Tough for these markets to get moving higher, or, rather, to move higher. Of course, Wall Street closed lower yesterday. The Dow was down about 4/10 of a percent. The big damage, though, was on the Nasdaq, off almost 1 percent after Intel warned about its profit margins and a rise in inventories.

Intel's stock just got shredded. It was off 10 1/2 percent.

Apple, though, closed higher. It's up nearly 5 percent in after hours trading after their profits tripled on the back of strong sales for their iPod digital music player, as you mentioned.

AMD, a big chip maker, look for that one to open slightly lower. It had a sales forecast that was disappointing to Wall Street.

And on the economic front this morning, Fredricka, we're going to get wholesale inflation. The market cares a lot about that because of the Fed. If it's a gentle number -- it's only expected to be up about 2/10 of 1 percent -- then that might alleviate some fears on the market that the Fed will have to be very aggressive in its tightening.

And finally, I want to look at oil prices here. You mentioned it hit almost $41 yesterday. Or, rather, that's Nokia's share price. Let's go to oil. Look at it now, it's only down $0.17, close to $41 a barrel. And that's tough on consumers. It hurts their purchasing power -- back to you.

WHITFIELD: Indeed, it is.

All right, Todd Benjamin, thanks very much, from London.

Well, just who is watching what on television these days? The most recognized system of counting viewers is now under attack for possibly leaving large segments of America unaccounted.

CNN's Sibila Vargas reports.

(BEGIN VIDEOTAPE)

SIBILA VARGAS, CNN CORRESPONDENT (voice-over): From the streets of New York to the steps of Los Angeles City Hall, protesters are criticizing Nielsen, the company that provides advertisers with ratings data, for its new local people meter system.

ALEX NOGALES, NATIONAL HISPANIC MEDIA COALITION: This is a civil rights issue. We need to be counted. This is like the census. Unless we are counted, we're going to be invisible.

VARGAS: The electronic system for gathering ratings eliminates the need for paper diaries. It is already in place in Boston and New York and was introduced last week in Los Angeles. But it's under fire from some minority groups and major broadcasters like Fox, CBS, Univision and Tribune. Several minority organizations partly funded by Fox say the meter system needs a lot of improvement.

UNIDENTIFIED MALE: It is technologically much more advanced. The other one had too many way it could be flawed and so forth. It doesn't really matter. If the methodology is incorrect, you're not going to have the proper number of Latinos and African-Americans and other people of color.

VARGAS: Early test data from people meters in New York show declines for a variety of shows like "The Simpsons," as well as some that are especially popular with minority viewers. Critics fear the new system could lead to less diversity in programming.

AL SHARPTON (D), PRESIDENTIAL CANDIDATE: This could mean a lot of jobs in our community. And it could also mean that we have the whitenizing of American television, based on a system, rather than based on fairness.

VARGAS: It could also mean the loss of millions of advertising dollars to networks whose shows dip in the ratings.

UNIDENTIFIED FEMALE: There's a lot of dollars at stake. And that's where Actually some of this controversy is also coming.

VARGAS: Nielsen declined our request for an interview, but its Web site says it will increase the number of people meters in African- American and Hispanic households in New York.

UNIDENTIFIED FEMALE: We're not going from something perfect to something imperfect. We're going from something that's very imperfect to something that's slightly better. VARGAS (on camera): Later this week, the Senate Communications Subcommittee will hold hearings regarding local people meters. And Nielsen plans to roll out the new system in Chicago early next month. And we should add that CNN is a Nielsen client, as is Turner Broadcasting.

Sibila Vargas, CNN, Los Angeles.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WHITFIELD: Has the curtain fallen on show time? After losing in the NBA finals, the Los Angeles Lakers have fallen into disarray.

CNN's Larry Smith takes a look at the Lake show.

(BEGIN VIDEOTAPE)

LARRY SMITH, CNN CORRESPONDENT (voice-over): Shaquille O'Neal and Kobe Bryant, together they teamed up on the court to win three straight NBA championships. But off the court, their dislike for one another was well publicized and a constant source of distraction for the team.

On Wednesday, the Lakers traded O'Neal to Miami.

MITCH KUPCHAK, LAKERS GENERAL MANAGER: It's certainly a disappointing day, in a lot of ways, in Los Angeles. You know, I can't deny that. I can't deny the impact a player like Shaq has had on my life, the organization, the city here, for the last eight years.

SMITH: Although the Lakers were favored to win another title this year, Bryant let it be known he would become a free agent at the end of the season. He was reportedly unhappy with Phil Jackson as his coach and was tired of playing second fiddle to O'Neal.

When the team lost to Detroit in the NBA finals, the dismantling of the team began. Bryant's declare for free agency; Phil Jackson was not resigned; and O'Neal's request for a trade was granted.

Many have speculated that letting Jackson go and trading O'Neal remain an attempt to entice Bryant to resign with the team.

MARTY BURNS, WRITER, "SPORTS ILLUSTRATED": They knew the situation was coming. Kobe and Shaq just were not getting along. And I think the Lakers decided that it was in their best interests to build this team around Kobe. And so they took all these steps along the way to make sure that he had no reasons not to come back to L.A.

KUPCHAK: We have no idea that Kobe will come back. You know, we've made the decision independent of what Kobe will do. And we're hopeful that he will resign.

BURNS: If Kobe does not return, the Lakers are left with basically some role players, one blossoming All Star in Lamar Odom, but certainly not enough talent to compete for championships and to compete at a level that Laker fans have come to expect.

SMITH: That's not the Hollywood ending L.A. is looking for.

I'm Larry Smith.

(END VIDEOTAPE)

WHITFIELD: And here's what's all new in the next half hour.

John Kerry will stop by at the NAACP convention. But will it do any good? Some African-Americans say they feel taken for granted by the Democrats and totally slighted by the Republicans. The story straight ahead.

Plus, the latest on the fate of a Filipino hostage as his country begins pulling troops out of Iraq.

And Nelson Mandela, Africa and AIDS -- a live report on what he thinks should be done now.

(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 15, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: An anti-Saddam rally in Baghdad. We'll take you live to the Iraqi capital in three minutes.
It's Thursday, July 15, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.

Now in the news, U.S. Marine Corporal Wassef Ali Hassoun is on his way to the United States right now after a delay yesterday. He left a U.S. air base in Germany just about an hour ago and is due in the States in about five or six hours. Hassoun had been reported captured and then released by Iraqi insurgents earlier this month.

The issue of what happened at Iraq's Abu Ghraib Prison is back on Capitol Hill today. The Senate Armed Services Committee will get a closed door briefing on the investigations into the abuse of Iraqi prisoners by some U.S. troops.

Still on Capitol Hill, the House has overwhelmingly voted for a free trade agreement with Australia. Australia's prime minister is lobbying his government today to back the agreement.

What's your favorite, "West Wing" or "Sopranos?" Nominations for the annual prime time Emmy Awards will be announced in a little more than three hours from now.

Keeping you informed, CNN, the most trusted name in news.

All right, got any favorites, Chad?

CHAD MYERS, CNN METEOROLOGIST: You know, they're both after my bedtime.

WHITFIELD: You're kidding?

MYERS: So the answer is no.

WHITFIELD: Oh, OK.

MYERS: I've seen one...

WHITFIELD: Well, I'm going to pull for the "Sopranos." MYERS: I saw one episode of the "Sopranos" and it was really violent. I was like I don't know, whatever.

WHITFIELD: Yes, yes. I know.

MYERS: Anyway, hey, good morning, Fred.

WHITFIELD: It goes with the show.

Hey, good morning to you.

(WEATHER REPORT)

WHITFIELD: Insurgents in Iraq say they are targeting Interim Prime Minister Iyad Allawi. A statement on several Islamic Web sites, reportedly from an insurgent leader, calls the prime minister "Iraq's traitor."

Our Michael Holmes is live in Baghdad with that.

But first he has news of some deadly bombings -- Michael.

MICHAEL HOLMES, CNN CORRESPONDENT: Fredricka, good morning to you.

Yes, there's a lot to get through here. There was a car bomb earlier today in an area called Haditha. Now this car bomb killed at least 10 Iraqis. Thirty were wounded. Among the dead, four Iraqi police. Most of the wounded, I can tell you, though, were civilians.

We're told that this was a large explosion, did heavy damage to the local police station and also several stores and shops, a bank building, as well. I've got some info for you on a suicide attack, an attempted one. That was in the area of Karbala. Now, what happened was they got intelligence about this, the police. They put up roadblocks. A car came toward one of those roadblocks, turned around, drove away, got to within 500 meters of a Bulgarian military base and the car just detonated. The suicide bombers, two of them, the only casualties there.

Meanwhile, in the north of Iraq, a Kurdish family in Kirkuk the victims of what appears to have been a mortar attack gone wrong. Their house was hit. Apparently the target was meant to be a local police station, the target of insurgents. They, this house, 200 meters away, was hit. All of the casualties from the same Kurdish family.

Meanwhile, a demonstration, an angry, loud one here by several hundred Iraqis. It took place really just behind me here, Tahreer Square in central Baghdad. It was an anti-Saddam, anti-terrorism demonstration. Police blocked off roads to allow the protesters to go through. They came from a range of political and moderate religious parties. They called for an end of violence, end to terrorism and the end of Saddam, several of them telling us they wanted to see him hanged. So a lot happening around the country today, of course, following on from that deadly suicide bomb blast just outside the green zone yesterday -- Fredricka.

WHITFIELD: And, Michael, let's talk a little bit about these threats against the life of the prime minister, Iyad Allawi.

What is he doing to protect himself, A, and, B, is he in any way changing his, you know, method of behavior or action based on these repeated threats?

HOLMES: Well, it was very interesting and perhaps significant that yesterday, after the car bombing outside the green zone -- you'll remember, that killed 11 people and wounded several dozen -- we saw the prime minister, Iyad Allawi, outside the green zone walls where this bomb attack happened. He was, as usual, surrounded by heavy security. But it was interesting that he personally went out to take a look.

We're expecting a news conference from him in a little under two hours. We're told that he's going to be discussing security and national issues. Not much other detail there. There is some suggestion he may announce some sort of amnesty for insurgents who want to lay down their arms. However, that's not yet been confirmed.

He is taking precautions, but he's still going about his job. He is inside the green zone most of the time, however, well fortified, well protected.

That threat would be of no surprise to him. He's already been targeted once before, but rockets fired by insurgents missing their mark -- Fredricka.

WHITFIELD: Michael Holmes in Baghdad, thanks for that report.

The White House may have lost a strong ally in the war on terror. The Philippines government is pulling its troops out of Iraq early, as demanded by the captors of a Filipino hostage. The kidnappers say they will release the man if the troop pullout is complete by July 20. We'll have more details in a live report from Manila in the next half hour of DAYBREAK.

The U.S. Marine who mysteriously disappeared in Iraq is on his way home right now. Corporal Wassef Ali Hassoun's flight from Germany had been delayed because of mechanical problems yesterday. Well, the Lebanese born Marine disappeared in Iraq in June and was reportedly captured by militants. It's still not clear how he got from Iraq to Lebanon, 500 miles away.

British newspapers today are filled with headlines detailing the latest investigation surrounding Britain's entry into the Iraq war. Prime Minister Tony Blair says the report on prewar intelligence vindicates his government.

Live now to London and our Robin Oakley -- Robin. ROBIN OAKLEY, CNN CORRESPONDENT: Well, Fredricka, if Tony Blair was hoping that the Hutton inquiry report was going to give him closure on all those accusations over the Iraq war, particularly his claim that Saddam Hussein had weapons of mass destruction he could unleash at 45 minutes notice, well, Mr. Blair was wrong.

Today's media in Britain pretty critical over the findings of the Hutton inquiry report.

(AUDIO GAP)

OAKLEY: The 45 minute claim...

(AUDIO GAP)

WHITFIELD: All right, sorry about that.

We are having some audio problems with Robin Oakley there out of London.

We'll try to return to him as soon as we get that straightened out.

A highly respected CIA analyst offers a chilling assessment of the war on terrorism. The book is called "Imperial Hubris: Why the West Is Losing the War On Terror." The author is remaining anonymous. He writes that President Bush and the West are underestimating Osama bin Laden and al Qaeda. More ominously, the author writes that al Qaeda will launch another attack on U.S. soil even more damaging than in September of the -- September 11 -- and it may include weapons of mass destruction. The book comes out today.

Get an inside perspective on Osama bin Laden from his former son- in-law, Carmen bin Laden. She's a guest on CNN's "AMERICAN MORNING" about two and a half hours from now. She'll talk about the terrorist mastermind and the repressive time she had as a woman living with the bin Laden family in Saudi Arabia.

All right, let's try to go back now to Robin Oakley in London to talk about little bit more about the prewar intelligence report and the reports in the media today -- Robin.

OAKLEY: Well, Fredricka, certainly those British newspapers, "The Butler Report: The Intelligence Flaw," "The Dossier Dodgy," "The 45 Minute Claim Wrong." They list all Lord Butler's criticisms of Tony Blair and the way in which decisions were taken and then they say but it's so curious that Lord Butler says no one's to blame.

And the opposition politicians, of course, are picking up on all the criticisms, particularly of Tony Blair's style of government, his way of taking decisions with a small coterie of advisers instead of giving things out to his cabinet to look at and saying can we ever trust Blair again?

Now, the problem for Tony Blair in looking for closure on the events surrounding the Iraq war is that the Butler inquiry says Saddam Hussein didn't really have those weapons. It criticizes the government for involving the intelligence chiefs and the joint intelligence committee in producing that dossier on Saddam Hussein's weapons, saying they stripped out all the necessary qualifications that should have been in the report.

And although it says that they can find no evidence of bad faith on the prime minister's part, no deliberate distortion, all this is feeding the case of those who said earlier that the government had sexed up its case for war in Iraq and that kind of criticism is going to continue -- Fredricka.

WHITFIELD: And, Robin, unlike for President Bush, who's up for reelection in November, what's at stake for Tony Blair?

OAKLEY: First of all, today he's got two parliamentary by- elections, two vacant seats in the British parliament, both held by Tony Blair's Labor Party. Strong expectation both those seats could be lost to the opposition party, the Liberal Democrats.

Longer-term, it's this question of Tony Blair getting back the trust of the British electorate. Two thirds of those questioned in opinion polls saying they don't trust the way in which Mr. Blair made the case for war.

The other person who's coming badly out of the Butler inquiry is John Scarlett, the chairman of the Joint Intelligence Committee. Mr. Blair appointed him as the new head of MI6, the intelligence gathering agency, while the Butler inquiry was still sitting. Now, he's the man who signed off on the dodgy dossier. A lot of people now saying he should not take up his job, even though the Butler Report specifically said that he should -- Fredricka.

WHITFIELD: All right, Robin Oakley from London.

Thanks very much.

Well, did the lead detective in the Scott Peterson trial lie on the stand? The judge in the case has set a date to hear a mistrial motion over the testimony of Detective Allen Brocchini.

Meanwhile, the latest testimony is again focusing on the physical evidence.

CNN's Ted Rowlands wraps it all up for us from Redwood City, California.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): The court released photographs today showing what prosecutors say is some of the physical evidence against Scott Peterson including one picture with what Detective Dodge Hendee testified are five circular rings left on a flatbed trailer. Prosecutors say those rings which are difficult to see in the evidence photos, are proof that Peterson made a number of cement anchors to weigh down his pregnant wife's body after he threw her in the San Francisco Bay. One cement anchor was recovered in Peterson's boat. That's the only anchor he made according to Peterson's attorneys. Hendee also testified about a hair in a pair of pliers. The hair, prosecutors say, belongs to Laci Peterson.

Late today, the defense started their cross-examination of Detective Hendee.

SCOTT PETERSON, MURDER SUSPECT: I had nothing to do with her disappearance.

ROWLANDS: The judge postponed a ruling on how much the jury will see of the television interviews Peterson did in the weeks following Laci Peterson's disappearance. The interviews contain what prosecutors say are, quote, "numerous admissions that evidence his guilt." They also say he outright lied when talking to ABC's Diane Sawyer when she asked him when he told police about his girlfriend Amber Frey.

PETERSON: I told the police immediately.

DIANE SAWYER, "GOOD MORNING AMERICA": When?

PETERSON: That was the first night -- the police, I spent with the police.

SAWYER: You told them about her?

PETERSON: Yes. From December 24 on.

ROWLANDS: Prosecutors want to show an edited version of the interviews. The judge continued the hearing until July 29.

The judge also continued a defense motion to outright dismiss the case because of prosecutorial misconduct. That hearing has also been set for July 29.

Ted Rowlands, CNN, Redwood City, California.

(END VIDEOTAPE)

WHITFIELD: Well, other news across America this Thursday.

Dramatic pictures of devastation in southern Pennsylvania. Take a look at this. More than a dozen people were sent to the hospital after high winds tore through this neighborhood in Campbelltown. One person remains in critical condition this morning. At least 30 homes were destroyed or heavily damaged. Several funnel clouds were seen in the area.

Bad weather is one reason for the large number of flight delays this summer. The Transportation Department says one out of every five flights is behind schedule. The agency says an increase in the number of travelers coupled with new security measures are also to blame for many of the delays. The judge in the Kobe Bryant sexual assault case has decided to bar the results of a medical exam on Bryant from being entered into evidence. But the judge turned down a defense request to throw out Bryant's initial interview with police. The court also extended the deadline for a possible plea deal until next Tuesday.

We're working on much more for you this morning.

Nelson Mandela brings his own arraigned to the World AIDS Conference. We'll tell you what other issues he's worried about.

Television gets set to honor the best of the small screen. We'll tell you how the Academy is working to shake up this morning's Emmy nominations.

And television stations live and die by their ratings. But are the ratings fair? We'll look at who's really watching what.

(COMMERCIAL BREAK)

WHITFIELD: Your news, money, weather and sports.

It's now 16 minutes after the hour and here is what's all new this morning.

The proposed constitutional amendment banning same-sex marriage is dead for now. In a procedural vote, six Republican senators joined Democrats to keep the measure from moving forward.

Oil prices are back up. The PPB rose to a six week high of more than $41. Concerns over security and supply led to the surge in prices.

In money, the little iPod has had a big effect on profits. Apple Computer says profits have tripled thanks to demand for iPod and their new Max.

In culture, Subway is bringing back that Jared guy. It's part of their new campaign to fight childhood obesity. Jared will appear in commercials with three kids who lost weight while eating at Subway.

In sports, the diesel has left L.A. Lakers center Shaquille O'Neal was officially traded to the Miami Heat for three players and a draft pick. We'll have more on Shaq, Kobe and the Lakers coming up a little bit later.

And let's check in with Chad.

And apparently Shaq said he was looking for another contender.

MYERS: Yes, I thought...

WHITFIELD: It turns out Miami Heat is the contender.

MYERS: I thought they were going to have to trade the Florida Keys for him. My goodness, I mean four for the price of one. There you go.

WHITFIELD: Yes.

MYERS: Hey, good morning.

Nice to be you.

(WEATHER REPORT)

WHITFIELD: Well, those are the headlines.

Wall Street stocks will open lower in a few hours.

Let's see what's happening right now overseas.

For that, we turn to our Todd Benjamin, checking the financial numbers for us from London -- good morning to you, Todd.

TODD BENJAMIN, CNN CORRESPONDENT: Good morning from a cool but at least dry London this morning, Fredricka.

Right now the markets are all down, as you can see.

The DAX in Frankfurt is down about a 1/2 percent.

The CAC is off a 1/3 of a percent.

And the FTSE is off about a 1/3 of a percent.

Tough for these markets to get moving higher, or, rather, to move higher. Of course, Wall Street closed lower yesterday. The Dow was down about 4/10 of a percent. The big damage, though, was on the Nasdaq, off almost 1 percent after Intel warned about its profit margins and a rise in inventories.

Intel's stock just got shredded. It was off 10 1/2 percent.

Apple, though, closed higher. It's up nearly 5 percent in after hours trading after their profits tripled on the back of strong sales for their iPod digital music player, as you mentioned.

AMD, a big chip maker, look for that one to open slightly lower. It had a sales forecast that was disappointing to Wall Street.

And on the economic front this morning, Fredricka, we're going to get wholesale inflation. The market cares a lot about that because of the Fed. If it's a gentle number -- it's only expected to be up about 2/10 of 1 percent -- then that might alleviate some fears on the market that the Fed will have to be very aggressive in its tightening.

And finally, I want to look at oil prices here. You mentioned it hit almost $41 yesterday. Or, rather, that's Nokia's share price. Let's go to oil. Look at it now, it's only down $0.17, close to $41 a barrel. And that's tough on consumers. It hurts their purchasing power -- back to you.

WHITFIELD: Indeed, it is.

All right, Todd Benjamin, thanks very much, from London.

Well, just who is watching what on television these days? The most recognized system of counting viewers is now under attack for possibly leaving large segments of America unaccounted.

CNN's Sibila Vargas reports.

(BEGIN VIDEOTAPE)

SIBILA VARGAS, CNN CORRESPONDENT (voice-over): From the streets of New York to the steps of Los Angeles City Hall, protesters are criticizing Nielsen, the company that provides advertisers with ratings data, for its new local people meter system.

ALEX NOGALES, NATIONAL HISPANIC MEDIA COALITION: This is a civil rights issue. We need to be counted. This is like the census. Unless we are counted, we're going to be invisible.

VARGAS: The electronic system for gathering ratings eliminates the need for paper diaries. It is already in place in Boston and New York and was introduced last week in Los Angeles. But it's under fire from some minority groups and major broadcasters like Fox, CBS, Univision and Tribune. Several minority organizations partly funded by Fox say the meter system needs a lot of improvement.

UNIDENTIFIED MALE: It is technologically much more advanced. The other one had too many way it could be flawed and so forth. It doesn't really matter. If the methodology is incorrect, you're not going to have the proper number of Latinos and African-Americans and other people of color.

VARGAS: Early test data from people meters in New York show declines for a variety of shows like "The Simpsons," as well as some that are especially popular with minority viewers. Critics fear the new system could lead to less diversity in programming.

AL SHARPTON (D), PRESIDENTIAL CANDIDATE: This could mean a lot of jobs in our community. And it could also mean that we have the whitenizing of American television, based on a system, rather than based on fairness.

VARGAS: It could also mean the loss of millions of advertising dollars to networks whose shows dip in the ratings.

UNIDENTIFIED FEMALE: There's a lot of dollars at stake. And that's where Actually some of this controversy is also coming.

VARGAS: Nielsen declined our request for an interview, but its Web site says it will increase the number of people meters in African- American and Hispanic households in New York.

UNIDENTIFIED FEMALE: We're not going from something perfect to something imperfect. We're going from something that's very imperfect to something that's slightly better. VARGAS (on camera): Later this week, the Senate Communications Subcommittee will hold hearings regarding local people meters. And Nielsen plans to roll out the new system in Chicago early next month. And we should add that CNN is a Nielsen client, as is Turner Broadcasting.

Sibila Vargas, CNN, Los Angeles.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WHITFIELD: Has the curtain fallen on show time? After losing in the NBA finals, the Los Angeles Lakers have fallen into disarray.

CNN's Larry Smith takes a look at the Lake show.

(BEGIN VIDEOTAPE)

LARRY SMITH, CNN CORRESPONDENT (voice-over): Shaquille O'Neal and Kobe Bryant, together they teamed up on the court to win three straight NBA championships. But off the court, their dislike for one another was well publicized and a constant source of distraction for the team.

On Wednesday, the Lakers traded O'Neal to Miami.

MITCH KUPCHAK, LAKERS GENERAL MANAGER: It's certainly a disappointing day, in a lot of ways, in Los Angeles. You know, I can't deny that. I can't deny the impact a player like Shaq has had on my life, the organization, the city here, for the last eight years.

SMITH: Although the Lakers were favored to win another title this year, Bryant let it be known he would become a free agent at the end of the season. He was reportedly unhappy with Phil Jackson as his coach and was tired of playing second fiddle to O'Neal.

When the team lost to Detroit in the NBA finals, the dismantling of the team began. Bryant's declare for free agency; Phil Jackson was not resigned; and O'Neal's request for a trade was granted.

Many have speculated that letting Jackson go and trading O'Neal remain an attempt to entice Bryant to resign with the team.

MARTY BURNS, WRITER, "SPORTS ILLUSTRATED": They knew the situation was coming. Kobe and Shaq just were not getting along. And I think the Lakers decided that it was in their best interests to build this team around Kobe. And so they took all these steps along the way to make sure that he had no reasons not to come back to L.A.

KUPCHAK: We have no idea that Kobe will come back. You know, we've made the decision independent of what Kobe will do. And we're hopeful that he will resign.

BURNS: If Kobe does not return, the Lakers are left with basically some role players, one blossoming All Star in Lamar Odom, but certainly not enough talent to compete for championships and to compete at a level that Laker fans have come to expect.

SMITH: That's not the Hollywood ending L.A. is looking for.

I'm Larry Smith.

(END VIDEOTAPE)

WHITFIELD: And here's what's all new in the next half hour.

John Kerry will stop by at the NAACP convention. But will it do any good? Some African-Americans say they feel taken for granted by the Democrats and totally slighted by the Republicans. The story straight ahead.

Plus, the latest on the fate of a Filipino hostage as his country begins pulling troops out of Iraq.

And Nelson Mandela, Africa and AIDS -- a live report on what he thinks should be done now.

(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