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CNN Live At Daybreak

Stewart Sentencing; Back to Normal; "Wait for Me"; Peterson Trial; Financial Felons; Robot Reality Check

Aired July 16, 2004 - 05:30   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: Martha Stewart learns today if she gets a new mailing address. Her sentencing is this morning.
It's Friday, July 16, and this is DAYBREAK.

Good morning, and welcome to the second half-hour of DAYBREAK. From CNN's Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.

'Now in the News,' gracious living guru Martha Stewart will be sentenced four-and-a-half hours from now for lying to investigators about a stock sale. Stewart's former stockbroker Peter Bacanovic will be sentenced nine hours from now for his role in that same stock deal.

An army of firefighters is claiming progress against a 7,200-acre wildfire that has destroyed 20 homes on the edge of Nevada's capital of Carson City. Five people have been injured, none seriously.

Both presidential candidates are on the campaign trail today. President Bush speaks in Tampa, Florida five hours from now and then at a rally in Beckley, West Virginia. Senator Kerry speaks in Washington 10 hours from now and ends his day with a reception in Arlington, Virginia.

The Philippines small contingent of troops is gradually leaving Iraq. It's in response to the demands of kidnappers who have threatened to kill Filipino hostage Angelo de la Cruz. Ten members of the humanitarian contingent are to leave today.

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

Let's check in again with Chad.

Boy, it's dry in a whole lot of the states, isn't it?

(WEATHER REPORT)

WHITFIELD: All right, very nice. Thanks a lot -- Chad.

CHAD MYERS, CNN METEOROLOGIST: You're welcome.

WHITFIELD: Well this is the morning that Martha Stewart has no doubt been hoping would never come. Last ditch efforts by her attorneys failed to stop today's planned sentencing. Stewart may be sentenced to around a year in prison.

For more on what we can expect this morning, we're joined on the telephone by legal analyst Kendall Coffey.

Our good morning to you -- Kendall.

KENDALL COFFEY, CNN LEGAL ANALYST: Hey, good morning -- Fredricka.

WHITFIELD: Well why not sentence Martha and Peter Bacanovic together since they were tried together?

COFFEY: Well I think, from at least Bacanovic's standpoint, he has already spent enough of a very painful part of his life feeling that his fate was tied to whatever happened or didn't happen to Martha Stewart. So sentencings are very typically done separately for separate defendants. And I think Bacanovic is pleased, at least, that at last he will stand for better or for worse entirely on his own today.

WHITFIELD: Now the judge will be issuing this sentence. There are guidelines in place. Does the judge usually honor those guidelines or use own discretion?

COFFEY: Now the guidelines give judges very limited discussion. It almost turns judges. Many judges have complained, Fredricka, that they become bean counters, that they add so many points for basically the crime, the base defense level and then you add points up or points down in terms of reaching the range for the actual sentence that the judge will decide.

It probably looks like they will end up, after the bean counting is done, with a 10 to 16-month range. Which means that she will assuredly be, as you were mentioning before, getting a new address at some point, at least for most of that 10-months, if that's the minimum sentence that she gets. Remember though that, Fredricka, she's got appeals pending. Probably won't go into jail immediately. Most white-collar defendants get a chance to stay at home while their appeals are being played out.

WHITFIELD: Interesting. So it still could be many months or maybe even years, sometimes appeals take that long?

COFFEY: Yes, it could be. Certainly there's no prospect if she continues to fight this that she's going to be stepping into jail this year and it could be well beyond that.

WHITFIELD: All right, Kendall Coffey, thanks very much for waking up with us this morning.

All right, well where will Martha Stewart end up possibly? Legal experts say it's likely she'll serve her prison sentence at either Danbury, Connecticut or Alderson, West Virginia. Danbury is only about 20 miles from her multimillion-dollar mansion. The prison population at Danbury is mostly made up of drug offenders. Inmates spend about seven-and-a-half hours a day doing manual labor, such as cleaning pots and pans. And the pay isn't so great. Stewart made a $1.5 million last year reportedly. In prison, she would make between 12 and 40 cents an hour. Well coming up later here on CNN, Martha Stewart's former media adviser, Lanny Davis, will join the "AMERICAN MORNING" crew to talk about the sentence facing the one-time boss. And that comes your way at 8:00 a.m. Eastern this morning.

In Iraq, Saddam Hussein is in custody, the Ba'ath Party is dissolved and life goes on despite all kinds of difficulties there.

Our Jane Arraf joins us to talk about how Iraqis are trying to gain some sort of normalcy in the face of bombings and roadside attacks.

And, Jane, we know that it's very difficult, to say the very least.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: It is. It's a very difficult balance, but it has been remarkably quiet, despite that suicide car bomb that killed more than 10 people this week. It's been really very quiet in Baghdad and no one quite knows why.

But what they do know is that they are starting to feel a bit more comfortable in this city. In fact, the mayor of Baghdad, Alaa Al-Tamimi, tells us that he's working on removing some of that barbed wire and the blast barriers that guard against suicide bombs on some key city -- on some key city streets.

(BEGIN VIDEO CLIP)

MAYOR ALAA AL-TAMIMI, BAGHDAD: I want to give some opportunity to Iraqi, to Baghdad to go and to walk and to have some leisure in their city. And for that reason, I will open many streets, I will lift a lot of barriers, protection barriers from the street. We will re-habitat some streets.

(END VIDEO CLIP)

ARRAF: Now the U.S. military is helping out with this. The city and the Army have hired thousands of workers, students and other people, to do things like pick up garbage and clean up the street. The U.S. military is coming in in bulldozers to do some of the heavier work. And it seems to be starting to pay off.

Just last night on a key part of this legendary street, Obunuwa (ph) Street, where families used to go to picnic, they used to come to fish restaurants. It really was the heart of central Baghdad nightlife. We saw families coming out again for a celebration, the opening of a park that's meant to return the street back to what it was like before, somewhere where people come and have fun and feel safe -- Fredricka.

WHITFIELD: And, Jane, how much does it help that the interim Prime Minister Iyad Allawi has been seen as being very outspoken and somewhat fearless by actually going out to at least one of the bomb sites recently? Does that inspire Iraqis?

ARRAF: It does. One of the things about Iraqis we have to remember is they have been through an awful lot the past few decades. Normal life went on here as best it could when bombs were falling during several wars. People are willing to put up with a certain amount of risk. What they're not willing to put up with is being stuck in their homes with no electricity night after night. So they are willing to take a little bit of risk to go out in the streets again.

And as for their prime minister, their interim prime minister, they think it's great that he's threatening to get tough with criminals, that he's imposing all these measures and that he is the kind of man who will go out on these bomb sites, on accident scenes and actually show a presence -- Fredricka.

WHITFIELD: And doing that in the face of threats against his own life?

ARRAF: Threats against many people's lives here. We have seen in the past week a major governor, a key regional official, assassinated. The mayor himself, who we were speaking with, when I asked aren't you afraid for your life, he said yes, of course I am, but this is an important job and when my time comes, my time comes. So many officials have been killed during this, but they still continue to come and show up for work. Those incredibly brave these people -- Fredricka.

WHITFIELD: Jane Arraf in Baghdad, thanks very much.

"Wait for me, I'm coming back to you," that's the message Al Jazeera says hostage Angelo de la Cruz is sending to his wife and eight children in the Philippines.

CNN's Maria Ressa is covering this story and she has a live report from Manila now -- Maria.

MARIA RESSA, CNN CORRESPONDENT: Well, Fredricka, right after that message that you said that Angela de la Cruz sent to his family, another message, this time from the kidnappers, saying that they would release Angelo de la Cruz only after the last member of the Philippine contingent had left Iraq. And they gave a date that it had to happen by the end of this month.

A statement making sure that the Philippines stick to its word. That's exactly what the Philippines is doing now. On Friday, a statement from the government saying that it had -- quote -- "recalled the head of the Philippine humanitarian contingent to Iraq." He is leaving Iraq today with 10 members of the Philippine humanitarian contingent. The rest of the members will be out of Iraq shortly.

There is still no word about what exactly, where exactly Angelo de la Cruz is, nor about the fallout for the Philippine position basically of giving in to kidnapper's demands -- Fredricka.

WHITFIELD: And, Maria, what about pressure coming from other members of the coalition pressing the Philippines not to concede to the terrorist threats, even though they are already starting to pull out? RESSA: There certainly has been pressure and surprisingly mild words over the last two days from the United States government. But now strong words, extremely strong words from Australia, warning the Philippine government that giving in to the terrorist demands will not appease them. And also from Japan saying that it's important for the coalition to stay together in Iraq.

The U.S. now basically saying it's disappointed. But keep in mind that Philippines main ally really has been the United States. And many here in the Philippines believe that there will be some sort of repercussion in terms of aid or in terms of the capitaries (ph) and training that the U.S. is providing the country now -- Fredricka.

WHITFIELD: Maria Ressa in Manila, thanks very much.

Well get all the details on the Filipino hostage story on our Web site, CNN.com.

The defense in the Scott Peterson trial grills a detective on the stand. Ahead, what jurors find out is lacking from the murder investigation of Laci Peterson and her unborn son.

And corporate criminals, from the penthouse to the big house, how more and more Wall Street darlings are finding themselves behind bars.

This is DAYBREAK for Friday, July 16.

(COMMERCIAL BREAK)

WHITFIELD: Remember the O.J. Simpson moment, if the glove doesn't fit? Well there's a lesser version of it in the Scott Peterson double murder trial.

Reporter Don Knapp of CNN San Francisco affiliate KRON has details.

(BEGIN VIDEOTAPE)

DON KNAPP, KRON-TV REPORTER (voice-over): Besides Laci Peterson's body parts, investigators were looking for objects like this, a homemade concrete anchor from Scott Peterson's boat as they returned again and again to search the bottom of San Francisco Bay.

The prosecution alleges Peterson made several anchors and attached them to his dead wife's body before dropping her in the bay. In this prosecution picture, Detective Al Brocchini's hand is seen holding Peterson's boat anchor in a water pitcher, a pitcher that would appear to be the mold used to make the anchor. But in court with dramatic flair, Defense Attorney Geragos held up the pitcher and the anchor and showed the jury what the prosecution already knew, it did not fit. An expert already told prosecutors the anchor was not made in the pitcher.

DEAN JOHNSON, LEGAL ANALYST: Well I was kind of thinking this is what the jury was waiting for, finally some concrete evidence. But yes, you know I wouldn't characterize it as an O.J. moment. I would say it's an effective cross-examination, but it doesn't destroy the prosecution's main points.

KNAPP: Before smashing the pitcher mold theory, Geragos pointed to images on a work surface prosecutors had suggested were dust patterns made by anchor molds, then rhetorically asked Detective Dodge Hendee if they were the circular patters of a pitcher. Suggesting they were not, Geragos repeated his question six times as prosecutors objected. And the judge ended the demonstration with a sustained, sustained.

After the jury was dismissed, the judge watched television news interviews Peterson had done with network and local television stations to determine if they can be eventually used in court. No decision was reached.

(on camera): The judge may not allow the prosecution to show jurors the TV interviews unless unedited portions of the tapes are obtained, something television stations have indicated they will fight.

In Redwood City, Don Knapp, KRON 4 News.

(END VIDEOTAPE)

WHITFIELD: Your news, money, weather and sports. It's now about 13 minutes before the hour and here is what's all new this morning.

A horrible scene at a girl's school in the southern Indian state of Tamil Nadu, a fire started in the kitchen and raced through the school, killing at least 75 children. Twenty-eight children have been hospitalized.

The U.S. Senate has approved a $12 billion buyout bill for tobacco farmers. Among the provisions in the legislation, more restrictions on cigarette companies, including a ban on advertising that appeals to children.

In money, eBay gets hip. The online business is testing the digital music download market for six months by allowing some record labels to sell music directly to consumers.

In culture, a Lewisburg, Pennsylvania theater owner is offering Republicans a free showing tomorrow of the anti-Bush movie "Fahrenheit 9/11." The owner says people must prove they are Republicans to get in.

In sports, Marion Jones is going to the Olympics after winning the long jump in spectacular fashion at the U.S. Olympic trials. She jumped 23 feet 4 inches, the second longest jump in the world this year. And there it is. I know she's saying whew -- Chad.

MYERS: That's pretty cool. Look at that, you could see that 23- foot mark.

WHITFIELD: Yes.

MYERS: That was awesome just watching that. I had... WHITFIELD: Impressive jump.

MYERS: I was like -- I was like speechless to see all that.

Hey, good morning, everybody.

(WEATHER REPORT)

WHITFIELD: All right, thanks a lot, Chad.

Well those are the headlines.

Martha Stewart may soon join friend and ImClone founder Sam Waksal behind bars. But the two aren't the first or even the most famous to find themselves headed for the slammer as a result of their financial shenanigans.

CNN's Jen Rogers takes a look back at some other infamous inmates.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): They were rich, they were smart and they got caught. Hard charging driven business leaders, masters of the universe one day, inmates the next.

There is Michael Milken, the former junk bond king who served nearly two years for securities law violations.

MICHAEL DOUGLAS, ACTOR: Greed, for lack of a better word, is good.

ROGERS: The inspiration for that famous line from the movie "Wall Street" was Ivan Boesky, who also traded in pinstripes for prison stripes for his role in the insider trading scandal.

And Charles Keating, a name synonymous with the savings and loan scandal, served time for convictions that were eventually overturned. He later plead guilty to a bankruptcy charge and was sentenced to time served.

After the excesses of the go-go '80s, the next decade delivered its own batch of bad boys as well. Rogue trader Nic Leeson, blamed for the collapse of Britain's oldest bank, did time in a Singapore prison. He was released early for good behavior.

Steve Madden is up for an early exit as well. The shoe designer is currently serving a 41-month sentence for securities fraud.

More recently, Alfred Taubman, the former Sotheby's chairman, was behind bars for his role in a price fixing conspiracy.

And Sam Waksal, ImClone founder and Martha Stewart friend, went from the penthouse to the big house last summer for insider trading.

SAM WAKSAL, IMCLONE FOUNDER: I have made some terrible mistakes and I deeply regret what has happened. I was wrong.

ROGERS: High profile business women have also found themselves on the wrong side of the law.

LEONA HELMSLEY, REAL ESTATE TYCOON: If I were a man, they'd say I'm a good executive.

ROGERS: The Queen of Mean herself, Leona Helmsley, was convicted for tax evasion.

HEIDI FLEISS, HOLLYWOOD MADAM: Getting caught is my biggest regret, you know it, come on.

ROGERS: But even the oldest profession in the world has its own CEO star. The Hollywood madam, Heidi Fleiss, she went to prison too.

Jen Rogers, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

WHITFIELD: Well the summer sci-fi thriller "I, Robot" opens in theaters today. So this is a good time for a robot reality check.

Our technology correspondent Daniel Sieberg has the real deal.

(BEGIN VIDEOTAPE)

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT (voice-over): The promise of technology. In 2035 "I, Robot" offers the world's first fully automated domestic assistant. And of course all is well until the robots try to kill you.

Fantasy can be frightening. But in reality, we can all breath easy. While bots can be programmed to perform a variety of tasks, most of them couldn't think themselves out of a wet paper bag.

Here's what they can do. Starting in the 1970s, robotic workers became ubiquitous on assembly lines. And later, we sent them out to explore other worlds and more of our own. Robots help doctors perform surgery and soldiers clear caves in Afghanistan.

And on to more important matters, domestic robots can vacuum your floors, mow your lawn and even keep you company without messing up the carpet.

But when autonomous bots, those are machines built to think for themselves, attempt more complex tasks, well that's where they run into problems. Not a single brainy bot in the DOD's million-dollar race last March completed the 150-mile trek through the Mojave Desert. The most successful machine made it a whopping seven miles. The bottom line, robots just aren't that smart yet.

Honda's ASIMO can dance and kick a ball, but most of its brain power is concentrated on keeping it upright and balanced. Balance is something we mere mortals take for granted, but it's no small feat for a robot. No, this bionic prototype won't be watching your kids anytime soon.

And do we even want robots to look human? Perhaps in the spirit of "Stepford Wives," in which deranged men replace their spouses with happy homemaker bots, graduate student David Hanson has created lifelike robotic heads that resemble his girlfriend, Kristen. The faces have 24 motors to generate countless expressions and cameras for eyes. The problem here of course is that they can be a little creepy.

So it's a debate among scientists whether human-like bots are repulsive or if machines that mimic our mortal movements put us at ease. But at the end of the day, no matter what the robot looks like, its promise depends on brainpower.

WILL SMITH, ACTOR: They don't get hungry, they don't sleep.

UNIDENTIFIED MALE: I do. I have even had dreams.

SIEBERG: And the brainiest bots are still on the big screen.

Daniel Sieberg, CNN.

(END VIDEOTAPE)

WHITFIELD: No, too creepy for me.

Well in the next hour of DAYBREAK, a family's testimony on the sacrifice of the war. One soldier's touching story straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: Hundreds of firefighters battling thousands of burning acres.

It's Friday, July 16, and this is DAYBREAK.

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 16, 2004 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Martha Stewart learns today if she gets a new mailing address. Her sentencing is this morning.
It's Friday, July 16, and this is DAYBREAK.

Good morning, and welcome to the second half-hour of DAYBREAK. From CNN's Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.

'Now in the News,' gracious living guru Martha Stewart will be sentenced four-and-a-half hours from now for lying to investigators about a stock sale. Stewart's former stockbroker Peter Bacanovic will be sentenced nine hours from now for his role in that same stock deal.

An army of firefighters is claiming progress against a 7,200-acre wildfire that has destroyed 20 homes on the edge of Nevada's capital of Carson City. Five people have been injured, none seriously.

Both presidential candidates are on the campaign trail today. President Bush speaks in Tampa, Florida five hours from now and then at a rally in Beckley, West Virginia. Senator Kerry speaks in Washington 10 hours from now and ends his day with a reception in Arlington, Virginia.

The Philippines small contingent of troops is gradually leaving Iraq. It's in response to the demands of kidnappers who have threatened to kill Filipino hostage Angelo de la Cruz. Ten members of the humanitarian contingent are to leave today.

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

Let's check in again with Chad.

Boy, it's dry in a whole lot of the states, isn't it?

(WEATHER REPORT)

WHITFIELD: All right, very nice. Thanks a lot -- Chad.

CHAD MYERS, CNN METEOROLOGIST: You're welcome.

WHITFIELD: Well this is the morning that Martha Stewart has no doubt been hoping would never come. Last ditch efforts by her attorneys failed to stop today's planned sentencing. Stewart may be sentenced to around a year in prison.

For more on what we can expect this morning, we're joined on the telephone by legal analyst Kendall Coffey.

Our good morning to you -- Kendall.

KENDALL COFFEY, CNN LEGAL ANALYST: Hey, good morning -- Fredricka.

WHITFIELD: Well why not sentence Martha and Peter Bacanovic together since they were tried together?

COFFEY: Well I think, from at least Bacanovic's standpoint, he has already spent enough of a very painful part of his life feeling that his fate was tied to whatever happened or didn't happen to Martha Stewart. So sentencings are very typically done separately for separate defendants. And I think Bacanovic is pleased, at least, that at last he will stand for better or for worse entirely on his own today.

WHITFIELD: Now the judge will be issuing this sentence. There are guidelines in place. Does the judge usually honor those guidelines or use own discretion?

COFFEY: Now the guidelines give judges very limited discussion. It almost turns judges. Many judges have complained, Fredricka, that they become bean counters, that they add so many points for basically the crime, the base defense level and then you add points up or points down in terms of reaching the range for the actual sentence that the judge will decide.

It probably looks like they will end up, after the bean counting is done, with a 10 to 16-month range. Which means that she will assuredly be, as you were mentioning before, getting a new address at some point, at least for most of that 10-months, if that's the minimum sentence that she gets. Remember though that, Fredricka, she's got appeals pending. Probably won't go into jail immediately. Most white-collar defendants get a chance to stay at home while their appeals are being played out.

WHITFIELD: Interesting. So it still could be many months or maybe even years, sometimes appeals take that long?

COFFEY: Yes, it could be. Certainly there's no prospect if she continues to fight this that she's going to be stepping into jail this year and it could be well beyond that.

WHITFIELD: All right, Kendall Coffey, thanks very much for waking up with us this morning.

All right, well where will Martha Stewart end up possibly? Legal experts say it's likely she'll serve her prison sentence at either Danbury, Connecticut or Alderson, West Virginia. Danbury is only about 20 miles from her multimillion-dollar mansion. The prison population at Danbury is mostly made up of drug offenders. Inmates spend about seven-and-a-half hours a day doing manual labor, such as cleaning pots and pans. And the pay isn't so great. Stewart made a $1.5 million last year reportedly. In prison, she would make between 12 and 40 cents an hour. Well coming up later here on CNN, Martha Stewart's former media adviser, Lanny Davis, will join the "AMERICAN MORNING" crew to talk about the sentence facing the one-time boss. And that comes your way at 8:00 a.m. Eastern this morning.

In Iraq, Saddam Hussein is in custody, the Ba'ath Party is dissolved and life goes on despite all kinds of difficulties there.

Our Jane Arraf joins us to talk about how Iraqis are trying to gain some sort of normalcy in the face of bombings and roadside attacks.

And, Jane, we know that it's very difficult, to say the very least.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: It is. It's a very difficult balance, but it has been remarkably quiet, despite that suicide car bomb that killed more than 10 people this week. It's been really very quiet in Baghdad and no one quite knows why.

But what they do know is that they are starting to feel a bit more comfortable in this city. In fact, the mayor of Baghdad, Alaa Al-Tamimi, tells us that he's working on removing some of that barbed wire and the blast barriers that guard against suicide bombs on some key city -- on some key city streets.

(BEGIN VIDEO CLIP)

MAYOR ALAA AL-TAMIMI, BAGHDAD: I want to give some opportunity to Iraqi, to Baghdad to go and to walk and to have some leisure in their city. And for that reason, I will open many streets, I will lift a lot of barriers, protection barriers from the street. We will re-habitat some streets.

(END VIDEO CLIP)

ARRAF: Now the U.S. military is helping out with this. The city and the Army have hired thousands of workers, students and other people, to do things like pick up garbage and clean up the street. The U.S. military is coming in in bulldozers to do some of the heavier work. And it seems to be starting to pay off.

Just last night on a key part of this legendary street, Obunuwa (ph) Street, where families used to go to picnic, they used to come to fish restaurants. It really was the heart of central Baghdad nightlife. We saw families coming out again for a celebration, the opening of a park that's meant to return the street back to what it was like before, somewhere where people come and have fun and feel safe -- Fredricka.

WHITFIELD: And, Jane, how much does it help that the interim Prime Minister Iyad Allawi has been seen as being very outspoken and somewhat fearless by actually going out to at least one of the bomb sites recently? Does that inspire Iraqis?

ARRAF: It does. One of the things about Iraqis we have to remember is they have been through an awful lot the past few decades. Normal life went on here as best it could when bombs were falling during several wars. People are willing to put up with a certain amount of risk. What they're not willing to put up with is being stuck in their homes with no electricity night after night. So they are willing to take a little bit of risk to go out in the streets again.

And as for their prime minister, their interim prime minister, they think it's great that he's threatening to get tough with criminals, that he's imposing all these measures and that he is the kind of man who will go out on these bomb sites, on accident scenes and actually show a presence -- Fredricka.

WHITFIELD: And doing that in the face of threats against his own life?

ARRAF: Threats against many people's lives here. We have seen in the past week a major governor, a key regional official, assassinated. The mayor himself, who we were speaking with, when I asked aren't you afraid for your life, he said yes, of course I am, but this is an important job and when my time comes, my time comes. So many officials have been killed during this, but they still continue to come and show up for work. Those incredibly brave these people -- Fredricka.

WHITFIELD: Jane Arraf in Baghdad, thanks very much.

"Wait for me, I'm coming back to you," that's the message Al Jazeera says hostage Angelo de la Cruz is sending to his wife and eight children in the Philippines.

CNN's Maria Ressa is covering this story and she has a live report from Manila now -- Maria.

MARIA RESSA, CNN CORRESPONDENT: Well, Fredricka, right after that message that you said that Angela de la Cruz sent to his family, another message, this time from the kidnappers, saying that they would release Angelo de la Cruz only after the last member of the Philippine contingent had left Iraq. And they gave a date that it had to happen by the end of this month.

A statement making sure that the Philippines stick to its word. That's exactly what the Philippines is doing now. On Friday, a statement from the government saying that it had -- quote -- "recalled the head of the Philippine humanitarian contingent to Iraq." He is leaving Iraq today with 10 members of the Philippine humanitarian contingent. The rest of the members will be out of Iraq shortly.

There is still no word about what exactly, where exactly Angelo de la Cruz is, nor about the fallout for the Philippine position basically of giving in to kidnapper's demands -- Fredricka.

WHITFIELD: And, Maria, what about pressure coming from other members of the coalition pressing the Philippines not to concede to the terrorist threats, even though they are already starting to pull out? RESSA: There certainly has been pressure and surprisingly mild words over the last two days from the United States government. But now strong words, extremely strong words from Australia, warning the Philippine government that giving in to the terrorist demands will not appease them. And also from Japan saying that it's important for the coalition to stay together in Iraq.

The U.S. now basically saying it's disappointed. But keep in mind that Philippines main ally really has been the United States. And many here in the Philippines believe that there will be some sort of repercussion in terms of aid or in terms of the capitaries (ph) and training that the U.S. is providing the country now -- Fredricka.

WHITFIELD: Maria Ressa in Manila, thanks very much.

Well get all the details on the Filipino hostage story on our Web site, CNN.com.

The defense in the Scott Peterson trial grills a detective on the stand. Ahead, what jurors find out is lacking from the murder investigation of Laci Peterson and her unborn son.

And corporate criminals, from the penthouse to the big house, how more and more Wall Street darlings are finding themselves behind bars.

This is DAYBREAK for Friday, July 16.

(COMMERCIAL BREAK)

WHITFIELD: Remember the O.J. Simpson moment, if the glove doesn't fit? Well there's a lesser version of it in the Scott Peterson double murder trial.

Reporter Don Knapp of CNN San Francisco affiliate KRON has details.

(BEGIN VIDEOTAPE)

DON KNAPP, KRON-TV REPORTER (voice-over): Besides Laci Peterson's body parts, investigators were looking for objects like this, a homemade concrete anchor from Scott Peterson's boat as they returned again and again to search the bottom of San Francisco Bay.

The prosecution alleges Peterson made several anchors and attached them to his dead wife's body before dropping her in the bay. In this prosecution picture, Detective Al Brocchini's hand is seen holding Peterson's boat anchor in a water pitcher, a pitcher that would appear to be the mold used to make the anchor. But in court with dramatic flair, Defense Attorney Geragos held up the pitcher and the anchor and showed the jury what the prosecution already knew, it did not fit. An expert already told prosecutors the anchor was not made in the pitcher.

DEAN JOHNSON, LEGAL ANALYST: Well I was kind of thinking this is what the jury was waiting for, finally some concrete evidence. But yes, you know I wouldn't characterize it as an O.J. moment. I would say it's an effective cross-examination, but it doesn't destroy the prosecution's main points.

KNAPP: Before smashing the pitcher mold theory, Geragos pointed to images on a work surface prosecutors had suggested were dust patterns made by anchor molds, then rhetorically asked Detective Dodge Hendee if they were the circular patters of a pitcher. Suggesting they were not, Geragos repeated his question six times as prosecutors objected. And the judge ended the demonstration with a sustained, sustained.

After the jury was dismissed, the judge watched television news interviews Peterson had done with network and local television stations to determine if they can be eventually used in court. No decision was reached.

(on camera): The judge may not allow the prosecution to show jurors the TV interviews unless unedited portions of the tapes are obtained, something television stations have indicated they will fight.

In Redwood City, Don Knapp, KRON 4 News.

(END VIDEOTAPE)

WHITFIELD: Your news, money, weather and sports. It's now about 13 minutes before the hour and here is what's all new this morning.

A horrible scene at a girl's school in the southern Indian state of Tamil Nadu, a fire started in the kitchen and raced through the school, killing at least 75 children. Twenty-eight children have been hospitalized.

The U.S. Senate has approved a $12 billion buyout bill for tobacco farmers. Among the provisions in the legislation, more restrictions on cigarette companies, including a ban on advertising that appeals to children.

In money, eBay gets hip. The online business is testing the digital music download market for six months by allowing some record labels to sell music directly to consumers.

In culture, a Lewisburg, Pennsylvania theater owner is offering Republicans a free showing tomorrow of the anti-Bush movie "Fahrenheit 9/11." The owner says people must prove they are Republicans to get in.

In sports, Marion Jones is going to the Olympics after winning the long jump in spectacular fashion at the U.S. Olympic trials. She jumped 23 feet 4 inches, the second longest jump in the world this year. And there it is. I know she's saying whew -- Chad.

MYERS: That's pretty cool. Look at that, you could see that 23- foot mark.

WHITFIELD: Yes.

MYERS: That was awesome just watching that. I had... WHITFIELD: Impressive jump.

MYERS: I was like -- I was like speechless to see all that.

Hey, good morning, everybody.

(WEATHER REPORT)

WHITFIELD: All right, thanks a lot, Chad.

Well those are the headlines.

Martha Stewart may soon join friend and ImClone founder Sam Waksal behind bars. But the two aren't the first or even the most famous to find themselves headed for the slammer as a result of their financial shenanigans.

CNN's Jen Rogers takes a look back at some other infamous inmates.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): They were rich, they were smart and they got caught. Hard charging driven business leaders, masters of the universe one day, inmates the next.

There is Michael Milken, the former junk bond king who served nearly two years for securities law violations.

MICHAEL DOUGLAS, ACTOR: Greed, for lack of a better word, is good.

ROGERS: The inspiration for that famous line from the movie "Wall Street" was Ivan Boesky, who also traded in pinstripes for prison stripes for his role in the insider trading scandal.

And Charles Keating, a name synonymous with the savings and loan scandal, served time for convictions that were eventually overturned. He later plead guilty to a bankruptcy charge and was sentenced to time served.

After the excesses of the go-go '80s, the next decade delivered its own batch of bad boys as well. Rogue trader Nic Leeson, blamed for the collapse of Britain's oldest bank, did time in a Singapore prison. He was released early for good behavior.

Steve Madden is up for an early exit as well. The shoe designer is currently serving a 41-month sentence for securities fraud.

More recently, Alfred Taubman, the former Sotheby's chairman, was behind bars for his role in a price fixing conspiracy.

And Sam Waksal, ImClone founder and Martha Stewart friend, went from the penthouse to the big house last summer for insider trading.

SAM WAKSAL, IMCLONE FOUNDER: I have made some terrible mistakes and I deeply regret what has happened. I was wrong.

ROGERS: High profile business women have also found themselves on the wrong side of the law.

LEONA HELMSLEY, REAL ESTATE TYCOON: If I were a man, they'd say I'm a good executive.

ROGERS: The Queen of Mean herself, Leona Helmsley, was convicted for tax evasion.

HEIDI FLEISS, HOLLYWOOD MADAM: Getting caught is my biggest regret, you know it, come on.

ROGERS: But even the oldest profession in the world has its own CEO star. The Hollywood madam, Heidi Fleiss, she went to prison too.

Jen Rogers, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

WHITFIELD: Well the summer sci-fi thriller "I, Robot" opens in theaters today. So this is a good time for a robot reality check.

Our technology correspondent Daniel Sieberg has the real deal.

(BEGIN VIDEOTAPE)

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT (voice-over): The promise of technology. In 2035 "I, Robot" offers the world's first fully automated domestic assistant. And of course all is well until the robots try to kill you.

Fantasy can be frightening. But in reality, we can all breath easy. While bots can be programmed to perform a variety of tasks, most of them couldn't think themselves out of a wet paper bag.

Here's what they can do. Starting in the 1970s, robotic workers became ubiquitous on assembly lines. And later, we sent them out to explore other worlds and more of our own. Robots help doctors perform surgery and soldiers clear caves in Afghanistan.

And on to more important matters, domestic robots can vacuum your floors, mow your lawn and even keep you company without messing up the carpet.

But when autonomous bots, those are machines built to think for themselves, attempt more complex tasks, well that's where they run into problems. Not a single brainy bot in the DOD's million-dollar race last March completed the 150-mile trek through the Mojave Desert. The most successful machine made it a whopping seven miles. The bottom line, robots just aren't that smart yet.

Honda's ASIMO can dance and kick a ball, but most of its brain power is concentrated on keeping it upright and balanced. Balance is something we mere mortals take for granted, but it's no small feat for a robot. No, this bionic prototype won't be watching your kids anytime soon.

And do we even want robots to look human? Perhaps in the spirit of "Stepford Wives," in which deranged men replace their spouses with happy homemaker bots, graduate student David Hanson has created lifelike robotic heads that resemble his girlfriend, Kristen. The faces have 24 motors to generate countless expressions and cameras for eyes. The problem here of course is that they can be a little creepy.

So it's a debate among scientists whether human-like bots are repulsive or if machines that mimic our mortal movements put us at ease. But at the end of the day, no matter what the robot looks like, its promise depends on brainpower.

WILL SMITH, ACTOR: They don't get hungry, they don't sleep.

UNIDENTIFIED MALE: I do. I have even had dreams.

SIEBERG: And the brainiest bots are still on the big screen.

Daniel Sieberg, CNN.

(END VIDEOTAPE)

WHITFIELD: No, too creepy for me.

Well in the next hour of DAYBREAK, a family's testimony on the sacrifice of the war. One soldier's touching story straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: Hundreds of firefighters battling thousands of burning acres.

It's Friday, July 16, and this is DAYBREAK.

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