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CNN Live At Daybreak

9/11 Commission Releases Report Today

Aired July 22, 2004 - 05:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL LIN, CNN ANCHOR: September 11, 2001 -- a day that shook the world. We're going to learn more today about the plotters and about the people who didn't stop them.
It's Thursday, July 22, and this is DAYBREAK.

Good morning.

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

Now in the news, six and a half hours from now, the commission investigating the 9/11 attacks unveils its 575-page report. It will detail how the plot unfolded, the missed opportunities to foil it and what can be done to prevent the next one.

Word in overnight out of Iraq -- a U.S. Marine convoy was thanked in Ramadi, sparking a day long firefight that left 25 Iraqi insurgents dead, 17 wounded and another 25 in custody. Fourteen Marines were wounded.

Ohio Congressman Dennis Kucinich has remained in the Democratic presidential race despite John Kerry's apparent lock on the nomination. But today, Kucinich is expected to endorse Kerry at a joint appearance in Detroit.

Firefighters north of Los Angeles hope for more good luck today. A wind shift helped turn the latest wildfire in to the Mojave Desert and that allowed hundreds of residents to return home. The fire burned 8,900 acres in less than 24 hours.

And in Chicago, workers are trying to restore electrical service to thousands after strong storms swept the area. One hundred and twelve thousand customers initially lost power.

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

And good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

LIN: Good to see you again.

(WEATHER REPORT)

LIN: Are, more news now. This is a big day at the White House. Administration officials are calling the 9/11 Commission report an extraordinary effort. The Commission holds a news conference at 11:30 Eastern to release the report.

Our Kelli Arena has a preview.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN CORRESPONDENT (voice-over): The leaders of the 9/11 Commission are already lobbying the White House and Congress to be sure their recommendations get serious consideration. The message got through.

REP. JIM TURNER (D-TX), HOMELAND SECURITY COMMITTEE: It was a bipartisan report. It was one that should be read carefully and listened to.

ARENA: The White House says it, too, will take a close look at the report. But President Bush disputes the suggestion his administration did not do enough to prevent an attack.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Had we had any inkling whatsoever that terrorists were about to attack our country, we would have moved heaven and Earth to protect America. And I'm confident President Clinton would have done the same thing. Any president would.

ARENA: The Commission is expected to say both presidents understood the threat posed by Osama bin Laden but did not fully appreciate its severity. Sources tell CNN the Commission report will not say whether 9/11 could have been prevented. But they say it will lay out at least 10 missed opportunities that if seized upon may have made a difference.

These include failure to watch list two hijackers who attended a terrorist meeting in Kuala Lumpur, Malaysia.

MATT LEVITT, FORMER FBI ANALYST: It's impossible to know how many pieces of the puzzle we would have needed to have to be able to have thwarted all or even part of the 9/11 operation.

ARENA: The attacks on September 11, the Commission concludes, were the result of deep institutional failings throughout the government and that intelligence responsibilities are still spread too widely. As a result, sources say commissioners will recommend the appointment of a cabinet level national intelligence director with budget authority and the creation of a national counter-terrorism center that would replace the current terrorism threat integration center. It also calls for more congressional oversight.

SEN. BILL FRIST (R-TN), SENATE MAJORITY LEADER: The words that I heard again and again were words like focus. In terms of Senate oversight, we need to have better focus.

ARENA: The Commission will also recommend changing the structure of the FBI. But it is not calling for an independent domestic intelligence agency, like Britain's MI5.

(on camera): Law makers say they expect to begin talks immediately on those recommendations. But don't expect any action until at least next year.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

LIN: The 9/11 Commission was charged with investigating U.S. counter-terrorism policy from August of 1998 through the September 2001 attacks. It was instructed to prepare a complete report on the attacks, including preparedness and the immediate response to those attacks. Panel members also were told to provide recommendations designed to guard against future terrorist attacks.

Now, CNN, of course, will have live coverage of that 11:30 Eastern news conference later this morning. And this afternoon, our Judy Woodruff and Wolf Blitzer will interview members of the panel.

Meantime, a Dulles Airport surveillance video has surfaced. The five hijackers can be seen passing through a security checkpoint at the airport on the morning of the attacks. Some of them set off metal detectors and then two of the hijackers -- there you see one being searched -- they were searched with handheld metal detectors. All five were cleared and boarded American Airlines Flight 77. That was the plane that crashed into the Pentagon, killing 189 people.

And, also, there's more flack this morning over Samuel Berger's removal of classified documents from the National Archives. A House committee will now investigate the incident involving President Clinton's national security adviser. Sandy Berger claims he took the documents by accident while preparing to testify before the 9/11 Commission.

Now, a Justice Department investigation began last October and yesterday President Bush called it "a serious matter." That's a quote. Democrats charge the Bush White House leaked the story to divert attention from today's release of the 9/11 Commission's report. All things political.

Meantime, six truck drivers working for a Kuwaiti company are the latest civilians taken hostage in Iraq. A militant group says it will behead the men unless their company pulls all of its employees out of that country. The television network Al-Arabiya showed footage of the men. Two are from Kenya, three from India, one from Egypt.

Good news, though, here. Filipino truck driver Angelo de la Cruz knows that -- knows what some of those hostages are facing. He arrived in Manila just about three hours ago. Angelo de la Cruz was released by his Iraqi abductors on Tuesday after the Philippine government withdrew its troops from Iraq.

Our Maria Ressa joins us live now from Manila on the videophone.

It must be good to be home for Angelo de la Cruz -- Maria. MARIA RESSA, CNN CORRESPONDENT: Absolutely, Carol.

As you know, this ends a two week vigil of prayers and appeals. At this point, a sense, a collective sigh of relief and also a sense of victory that finally Angelo de la Cruz is here in the capital. He got off the plane with his wife and brother, who met him in Abu Dhabi. As soon as they entered the airport, they were engulfed in big bear hugs from his eight children and relatives.

When they got inside, he gave a very short press conference. He read a short statement.

This is what he had to say.

(BEGIN VIDEO CLIP)

ANGELO DE LA CRUZ (THROUGH TRANSLATOR): I'd like to thank our president, Gloria Macapagal-Arroyo, and our government, that they have valued my life and that is something that I will never forget. Thanks, as well, to all those people, my countrymen, for their support and prayers.

(END VIDEO CLIP)

RESSA: Despite the international criticism of President Arroyo's move to give in to terrorist demands, here it is seen as a victory for the working class. Many of them, like de la Cruz, forced to work overseas in often hazardous situations. In fact, nearly one in 10 Filipinos are in that same situation. They are the country's largest dollar earner.

But, of course, there will be repercussions. Even as Angelo de la Cruz was flying into Manila, the U.S. ambassador was on his way out to Washington for talks on the future of bilateral relations.

Back to you -- Carol.

LIN: Maria, a quick clarification. Forced to work in countries like Iraq simply because they can never make that kind of money there at home in the Philippines, right?

RESSA: Absolutely. And also the lack of jobs. But you're talking here, for Angelo, when he decided to work in Iraq, he made five times the amount of money he was already making in Saudi Arabia.

LIN: Maria, are U.S. coalition force people able to talk with Angelo de la Cruz to try to find more about where he was and more about more intelligence about the insurgents holding him?

RESSA: At this point, as far as we know, they haven't had access to him yet. And actually his first wish as soon as he landed on Philippine soil was really to ask the Philippine government for some private time with his family. It's obvious -- he's unshaven. He looks very tired. And he said that his family has been dealing with a media frenzy. So they are basically off alone for the next 12 hours or so before they begin the trip to his hometown. LIN: Understandable.

Thanks very much.

Maria Ressa reporting live this morning.

Here are some other stories in this country making news across America this Thursday.

The search will continue today for Lori Hacking. Now, you might recall she's the 27-year-old pregnant Salt Lake City woman who's been missing since Monday. Police have interviewed her husband, but have not yet named him officially as a suspect. They also removed items from the couple's apartment. The couple had been planning to move to North Carolina, where Mark Hacking had said he was enrolled in medical school. But the school says he never even applied. We're going to have more on this story in the next hour.

A lifesaving tug of war in a Florida pond. A 54-year-old woman remains in critical condition after nearly being dragged underwater by a 12-foot long alligator. At least four people struggled to free the woman from the gator's grip before police shot it in the head. Her right arm was so severely bitten that it had to be amputated.

A nice surprise for a National Guardsman just back from Iraq. John Morrissey won $4 million in a Massachusetts lottery instant scratch game. Morrissey says he'll use the money to get out of personal bankruptcy and to put his daughter through college. He returned last month after a 13-month tour of duty in Iraq.

And stay tuned to CNN for more on the lucky soldier. John Morrissey is going to join the "AMERICAN MORNING" crew to talk about his new fortune. That comes your way at 11:00 a.m. Eastern this hour.

And there's much more ahead for you on CNN's DAYBREAK.

When John Kerry hits the Democratic convention in Boston, a union dispute could hit back. We're going to look at why Boston's police force isn't so happy.

And the current black hole theory collapsing in on itself? We're going to delve into subatomic space very deep this morning. We're going to find out.

And if you don't mind a few bullet holes, there are some great houses for sale -- in Baghdad. But the prices are going to put a dent in almost anyone's wallet.

You're watching DAYBREAK for Thursday morning.

(COMMERCIAL BREAK)

LIN: Your news, money, weather and sports.

It's now 14 past the hour and here's what's all new this morning. The 9/11 Commission is expected to release its front final report later today. Administration officials say the Commission found critical failures within the intelligence community. The report is not expected to blame either the Clinton or Bush administrations.

Now, the city of Boston unveiled a plan to allow city workers to buy cheaper prescription drugs from Canada. City officials say the plan will save about a million dollars for workers and people who are retired.

In money, don't expect a break in gas prices in time for Labor Day. That outlook comes from government forecasters. Gas prices have risen slightly for the past two weeks, after six straight weeks of declines.

And in culture, Parrotheads have come out in force to push Jimmy Buffet to number one on the charts. His latest release, "License To Chill," becomes the first ever number one album for the laid back legend.

And in sports, the lead keeps growing for Lance Armstrong, five time tour de champ -- tour de champ. Cute. He now holds a nearly four minute lead in the Tour de France. There are just four stages left -- Chad.

MYERS: Yes?

LIN: All uphill.

MYERS: So to speak, yes.

LIN: Can you believe that?

MYERS: Right. Actually, he got spit on and all that from those very nice French people yesterday.

LIN: I know. Yes, not liking the guy trying for his sixth title. They don't want to see him in that yellow jersey.

MYERS: No. They -- yes. He goes, "These French people have no class" is what he said at the end. I go yes, like we ever thought they did.

LIN: Oooh.

(WEATHER REPORT)

LIN: The Bush reelection campaign heads for Chicago's suburbs today. The president talks about homeland security this afternoon in Glenview at the Northeastern Illinois Public Safety Training Academy, just in case you were wondering. Bush then heads for Winnetka and a fund-raising dinner at a private home.

Ohio Congressman Dennis Kucinich will endorse Senator John Kerry for president today. Kucinich has not been campaigning, but until now, he has not officially withdrawn from the race for the presidential nomination. One Democratic official says the Kucinich endorsement can give Kerry "another bridge to organize labor in Ohio," again, a quote.

Meanwhile, a contract dispute involving Boston police is swirling around the Democratic convention site. Swirling. An arbitrator is expected to render his verdict today and Democrats hope that that will resolve the issue. But if it doesn't, there could be trouble, as CNN's Louise Schiavone reports.

(BEGIN VIDEOTAPE)

LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): Of all of the Democratic Party's traditional constituencies -- progressives, ethnic groups, the working uninsured, organized labor is one of the most fundamental.

RICHARD TRUMKA, AFL-CIO: I think that just, we've never seen this level of involvement, activism, volunteerism this early in the election cycle.

SCHIAVONE: But a contract stand-off with Boston's main police union could detract from one of the most unified party gatherings in recent memory. And despite a superior court judge's order that the party settle up with an independent arbitrator by Thursday afternoon, disruption threats loom large.

THOMAS NEE, POLICE PATROLMAN'S ASSOCIATION: No party should be held in Boston unless the business of the city is being taken care of.

SCHIAVONE: Unhappy about forced binding contract settlement talks, disgruntled officers have threatened to picket Mayor Thomas Menino wherever he is during the convention week.

NEE: We're going to be there. We will be loud. We will be vocal and we will be exercising our first amendment.

SCHIAVONE: Recently, the strategy kept presidential candidate John Kerry from a Boston gathering of the U.S. Conference of Mayors, putting Kerry at odds with his own mayor. Now, sources say some of the most powerful Democrats in the nation are becoming very irritated. Certainly the mayor is.

MAYOR THOMAS MENINO, BOSTON, MASSACHUSETTS: I think they're supposed to be big John Kerry folks. You know, they want to be able to -- if they really cared about John Kerry, that was my argument, they would have dropped the picket lines, let John Kerry go in, give his speech and put the picket lines up afterwards. I think they used that issue to try to force me to give a contract that the city could not afford.

SCHIAVONE: And the city's worries about terrorism are making Boston all the more anxious about police officers becoming part of the dozens of anticipated demonstrations. How a political convention unfolds reflects directly on a nominee's perceived ability to organize and govern. Democrats are hoping a binding settlement will be enough to put the police contract issue to rest. Lisa Schiavone, CNN Financial News, Boston.

(END VIDEOTAPE)

LIN: And when you're away from your television, you can stay on top of all the political developments by logging onto our Web site. The address is cnn.com/allpolitics.

Right now it's time for our international market update.

And for that, we turn to our Todd Benjamin, checking the financial numbers for us in London -- good morning, Todd.

TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.

A dreary session this Thursday here in Europe. Not surprising considering that Wall Street took a tumble on Wednesday.

The Dow, of course, off about 103 points, or some 1 percent.

And the Nasdaq down better than 2 percent, down to levels not seen since last October.

One big disappointment there, Motorola, after it said shipments fell 5 percent in the second quarter. Its stock got shredded.

Right now in Europe, the FTSE's off better than 1 percent here in London.

The DAX is off almost 2 percent in Frankfurt.

And the CAC in Paris is off 1 1/2 percent.

Now, a couple stocks coming out after the close of Wall Street yesterday with their earnings. And some big names, well known names. Starbucks had better than expected guidance and the stock is up 1 1/2 percent in after hours trading. Look for that one.

And another one to look for, eBay, the online auctioneer, going the other way. Its stock fell 5 1/2 percent in after hours trading after its full year guidance disappointed Wall Street.

So right now Wall Street is in a very unforgiving mood.

And the futures market right now is pointing to just a slightly lower open. But we're going to get jobless claims before the opening bell, you know, the latest numbers on those filing for first time unemployment benefits. And they're expected to be about 345,000. If that number is a lot worse, that could put added pressure on the open -- Carol, have a great morning.

LIN: Wow. Gee, thanks, Todd.

All around good news there. BENJAMIN: Exactly.

LIN: We'll see if the markets take off. All right, singer Linda Ronstadt may get her job back after all. Next on DAYBREAK, the latest on the controversial remarks about Michael Moore that got her kicked out of a Vegas hotel room.

And the black hole theory revamped. We're going to try to make sense of it then and now.

(COMMERCIAL BREAK)

LIN: We're going to take you way out right now, all the way out into outer space. Information can and actually does escape from black holes. So says the scientist who first gave us the black hole theory. The problem is Steven Hawking now concedes his first theory about black holes was wrong.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): It was a theory that captured the imagination -- the massive collapse of all matter at a point in space so profound nothing could escape, destroying everything inside of it. It was the theory on which Steven Hawking built his career and reputation. His book, "A Brief History of Time," popularized his theory, sold 10 million copies, made the physicist a household name and an unlikely figure of pop culture.

Now, the scientist, who is crippled by a motor neuron disease, says he was wrong -- matter can and does escape a black hole. The admission cost Hawking -- not his career, but an encyclopedia, the price of a bet he made with American physicist John Preskill.

JOHN PRESKILL, CALTECH: I had always hoped that when Steven conceded this bet, there would be a witness. And, but this really exceeds my expectations.

TUCKER: Now, the scientist community eagerly awaits the explanation of how that matter, that information, escapes. Beyond science fiction fans and scientists, this may seem like an obscure theory. Yet while complex, understanding black holes could create new understandings about our universe.

SAMIR MATHUR, OHIO STATE UNIVERSITY: There is a deep relation between space, time and matter that we have been trying to get at for so many years. I think all these three things meet at the black hole. If one could understand how information comes out of the black hole, he will understand something very important about the interrelation of space, time and matter.

TUCKER: Hawkins apologized to sci-fi fans for his reversal, warning them that if they enter a black hole, they'll be returned to this dimension and in a mangled form. It's not often a genius admits a mistake. Probably only about once in a blue moon. So it can be no coincidence that July is a blue moon month.

Bill Tucker, CNN, New York. (END VIDEOTAPE)

LIN: Time now for a DAYBREAK "Eye Opener." Linda Ronstadt may be invited back to the Aladdin Casino in Las Vegas after all. Ronstadt, you'll remember, was ushered out after praising filmmaker Michael Moore during her show. Her remarks caused a near riot, some 2,000 people booing her in the audience. But now, a new ownership group says they would like to have her back once they take control of the property next month.

And then there's the story of the freezer bound cat in Brooklyn Heights, Ohio. The mayor says an animal control worker euthanized the animal and put it in a freezer for storage. But when another employee opened the freezer, the cat jumped out. The city plans to review its animal control procedures.

The Germans have conquered Europe -- at least the beer drinking parts of Europe. A British survey shows that Germans now outpace every other country in the amount of beer they drink. Britain had been number one. The survey also showed that nearly one out of every five Germans drinks to get drunk. That also tops in Europe.

And here is what's ahead in the next half hour.

Calm -- that's how the 9/11 hijackers are being described in newly released surveillance tape. More on that video ahead.

And the move the Army is making that some say could be a sign of trouble. I'm going to explain.

Plus, inside million dollar homes in Iraq -- why the real estate business is booming in Baghdad -- and no pun intended.

(COMMERCIAL BREAK)

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Aired July 22, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: September 11, 2001 -- a day that shook the world. We're going to learn more today about the plotters and about the people who didn't stop them.
It's Thursday, July 22, and this is DAYBREAK.

Good morning.

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

Now in the news, six and a half hours from now, the commission investigating the 9/11 attacks unveils its 575-page report. It will detail how the plot unfolded, the missed opportunities to foil it and what can be done to prevent the next one.

Word in overnight out of Iraq -- a U.S. Marine convoy was thanked in Ramadi, sparking a day long firefight that left 25 Iraqi insurgents dead, 17 wounded and another 25 in custody. Fourteen Marines were wounded.

Ohio Congressman Dennis Kucinich has remained in the Democratic presidential race despite John Kerry's apparent lock on the nomination. But today, Kucinich is expected to endorse Kerry at a joint appearance in Detroit.

Firefighters north of Los Angeles hope for more good luck today. A wind shift helped turn the latest wildfire in to the Mojave Desert and that allowed hundreds of residents to return home. The fire burned 8,900 acres in less than 24 hours.

And in Chicago, workers are trying to restore electrical service to thousands after strong storms swept the area. One hundred and twelve thousand customers initially lost power.

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

And good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

LIN: Good to see you again.

(WEATHER REPORT)

LIN: Are, more news now. This is a big day at the White House. Administration officials are calling the 9/11 Commission report an extraordinary effort. The Commission holds a news conference at 11:30 Eastern to release the report.

Our Kelli Arena has a preview.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN CORRESPONDENT (voice-over): The leaders of the 9/11 Commission are already lobbying the White House and Congress to be sure their recommendations get serious consideration. The message got through.

REP. JIM TURNER (D-TX), HOMELAND SECURITY COMMITTEE: It was a bipartisan report. It was one that should be read carefully and listened to.

ARENA: The White House says it, too, will take a close look at the report. But President Bush disputes the suggestion his administration did not do enough to prevent an attack.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Had we had any inkling whatsoever that terrorists were about to attack our country, we would have moved heaven and Earth to protect America. And I'm confident President Clinton would have done the same thing. Any president would.

ARENA: The Commission is expected to say both presidents understood the threat posed by Osama bin Laden but did not fully appreciate its severity. Sources tell CNN the Commission report will not say whether 9/11 could have been prevented. But they say it will lay out at least 10 missed opportunities that if seized upon may have made a difference.

These include failure to watch list two hijackers who attended a terrorist meeting in Kuala Lumpur, Malaysia.

MATT LEVITT, FORMER FBI ANALYST: It's impossible to know how many pieces of the puzzle we would have needed to have to be able to have thwarted all or even part of the 9/11 operation.

ARENA: The attacks on September 11, the Commission concludes, were the result of deep institutional failings throughout the government and that intelligence responsibilities are still spread too widely. As a result, sources say commissioners will recommend the appointment of a cabinet level national intelligence director with budget authority and the creation of a national counter-terrorism center that would replace the current terrorism threat integration center. It also calls for more congressional oversight.

SEN. BILL FRIST (R-TN), SENATE MAJORITY LEADER: The words that I heard again and again were words like focus. In terms of Senate oversight, we need to have better focus.

ARENA: The Commission will also recommend changing the structure of the FBI. But it is not calling for an independent domestic intelligence agency, like Britain's MI5.

(on camera): Law makers say they expect to begin talks immediately on those recommendations. But don't expect any action until at least next year.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

LIN: The 9/11 Commission was charged with investigating U.S. counter-terrorism policy from August of 1998 through the September 2001 attacks. It was instructed to prepare a complete report on the attacks, including preparedness and the immediate response to those attacks. Panel members also were told to provide recommendations designed to guard against future terrorist attacks.

Now, CNN, of course, will have live coverage of that 11:30 Eastern news conference later this morning. And this afternoon, our Judy Woodruff and Wolf Blitzer will interview members of the panel.

Meantime, a Dulles Airport surveillance video has surfaced. The five hijackers can be seen passing through a security checkpoint at the airport on the morning of the attacks. Some of them set off metal detectors and then two of the hijackers -- there you see one being searched -- they were searched with handheld metal detectors. All five were cleared and boarded American Airlines Flight 77. That was the plane that crashed into the Pentagon, killing 189 people.

And, also, there's more flack this morning over Samuel Berger's removal of classified documents from the National Archives. A House committee will now investigate the incident involving President Clinton's national security adviser. Sandy Berger claims he took the documents by accident while preparing to testify before the 9/11 Commission.

Now, a Justice Department investigation began last October and yesterday President Bush called it "a serious matter." That's a quote. Democrats charge the Bush White House leaked the story to divert attention from today's release of the 9/11 Commission's report. All things political.

Meantime, six truck drivers working for a Kuwaiti company are the latest civilians taken hostage in Iraq. A militant group says it will behead the men unless their company pulls all of its employees out of that country. The television network Al-Arabiya showed footage of the men. Two are from Kenya, three from India, one from Egypt.

Good news, though, here. Filipino truck driver Angelo de la Cruz knows that -- knows what some of those hostages are facing. He arrived in Manila just about three hours ago. Angelo de la Cruz was released by his Iraqi abductors on Tuesday after the Philippine government withdrew its troops from Iraq.

Our Maria Ressa joins us live now from Manila on the videophone.

It must be good to be home for Angelo de la Cruz -- Maria. MARIA RESSA, CNN CORRESPONDENT: Absolutely, Carol.

As you know, this ends a two week vigil of prayers and appeals. At this point, a sense, a collective sigh of relief and also a sense of victory that finally Angelo de la Cruz is here in the capital. He got off the plane with his wife and brother, who met him in Abu Dhabi. As soon as they entered the airport, they were engulfed in big bear hugs from his eight children and relatives.

When they got inside, he gave a very short press conference. He read a short statement.

This is what he had to say.

(BEGIN VIDEO CLIP)

ANGELO DE LA CRUZ (THROUGH TRANSLATOR): I'd like to thank our president, Gloria Macapagal-Arroyo, and our government, that they have valued my life and that is something that I will never forget. Thanks, as well, to all those people, my countrymen, for their support and prayers.

(END VIDEO CLIP)

RESSA: Despite the international criticism of President Arroyo's move to give in to terrorist demands, here it is seen as a victory for the working class. Many of them, like de la Cruz, forced to work overseas in often hazardous situations. In fact, nearly one in 10 Filipinos are in that same situation. They are the country's largest dollar earner.

But, of course, there will be repercussions. Even as Angelo de la Cruz was flying into Manila, the U.S. ambassador was on his way out to Washington for talks on the future of bilateral relations.

Back to you -- Carol.

LIN: Maria, a quick clarification. Forced to work in countries like Iraq simply because they can never make that kind of money there at home in the Philippines, right?

RESSA: Absolutely. And also the lack of jobs. But you're talking here, for Angelo, when he decided to work in Iraq, he made five times the amount of money he was already making in Saudi Arabia.

LIN: Maria, are U.S. coalition force people able to talk with Angelo de la Cruz to try to find more about where he was and more about more intelligence about the insurgents holding him?

RESSA: At this point, as far as we know, they haven't had access to him yet. And actually his first wish as soon as he landed on Philippine soil was really to ask the Philippine government for some private time with his family. It's obvious -- he's unshaven. He looks very tired. And he said that his family has been dealing with a media frenzy. So they are basically off alone for the next 12 hours or so before they begin the trip to his hometown. LIN: Understandable.

Thanks very much.

Maria Ressa reporting live this morning.

Here are some other stories in this country making news across America this Thursday.

The search will continue today for Lori Hacking. Now, you might recall she's the 27-year-old pregnant Salt Lake City woman who's been missing since Monday. Police have interviewed her husband, but have not yet named him officially as a suspect. They also removed items from the couple's apartment. The couple had been planning to move to North Carolina, where Mark Hacking had said he was enrolled in medical school. But the school says he never even applied. We're going to have more on this story in the next hour.

A lifesaving tug of war in a Florida pond. A 54-year-old woman remains in critical condition after nearly being dragged underwater by a 12-foot long alligator. At least four people struggled to free the woman from the gator's grip before police shot it in the head. Her right arm was so severely bitten that it had to be amputated.

A nice surprise for a National Guardsman just back from Iraq. John Morrissey won $4 million in a Massachusetts lottery instant scratch game. Morrissey says he'll use the money to get out of personal bankruptcy and to put his daughter through college. He returned last month after a 13-month tour of duty in Iraq.

And stay tuned to CNN for more on the lucky soldier. John Morrissey is going to join the "AMERICAN MORNING" crew to talk about his new fortune. That comes your way at 11:00 a.m. Eastern this hour.

And there's much more ahead for you on CNN's DAYBREAK.

When John Kerry hits the Democratic convention in Boston, a union dispute could hit back. We're going to look at why Boston's police force isn't so happy.

And the current black hole theory collapsing in on itself? We're going to delve into subatomic space very deep this morning. We're going to find out.

And if you don't mind a few bullet holes, there are some great houses for sale -- in Baghdad. But the prices are going to put a dent in almost anyone's wallet.

You're watching DAYBREAK for Thursday morning.

(COMMERCIAL BREAK)

LIN: Your news, money, weather and sports.

It's now 14 past the hour and here's what's all new this morning. The 9/11 Commission is expected to release its front final report later today. Administration officials say the Commission found critical failures within the intelligence community. The report is not expected to blame either the Clinton or Bush administrations.

Now, the city of Boston unveiled a plan to allow city workers to buy cheaper prescription drugs from Canada. City officials say the plan will save about a million dollars for workers and people who are retired.

In money, don't expect a break in gas prices in time for Labor Day. That outlook comes from government forecasters. Gas prices have risen slightly for the past two weeks, after six straight weeks of declines.

And in culture, Parrotheads have come out in force to push Jimmy Buffet to number one on the charts. His latest release, "License To Chill," becomes the first ever number one album for the laid back legend.

And in sports, the lead keeps growing for Lance Armstrong, five time tour de champ -- tour de champ. Cute. He now holds a nearly four minute lead in the Tour de France. There are just four stages left -- Chad.

MYERS: Yes?

LIN: All uphill.

MYERS: So to speak, yes.

LIN: Can you believe that?

MYERS: Right. Actually, he got spit on and all that from those very nice French people yesterday.

LIN: I know. Yes, not liking the guy trying for his sixth title. They don't want to see him in that yellow jersey.

MYERS: No. They -- yes. He goes, "These French people have no class" is what he said at the end. I go yes, like we ever thought they did.

LIN: Oooh.

(WEATHER REPORT)

LIN: The Bush reelection campaign heads for Chicago's suburbs today. The president talks about homeland security this afternoon in Glenview at the Northeastern Illinois Public Safety Training Academy, just in case you were wondering. Bush then heads for Winnetka and a fund-raising dinner at a private home.

Ohio Congressman Dennis Kucinich will endorse Senator John Kerry for president today. Kucinich has not been campaigning, but until now, he has not officially withdrawn from the race for the presidential nomination. One Democratic official says the Kucinich endorsement can give Kerry "another bridge to organize labor in Ohio," again, a quote.

Meanwhile, a contract dispute involving Boston police is swirling around the Democratic convention site. Swirling. An arbitrator is expected to render his verdict today and Democrats hope that that will resolve the issue. But if it doesn't, there could be trouble, as CNN's Louise Schiavone reports.

(BEGIN VIDEOTAPE)

LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): Of all of the Democratic Party's traditional constituencies -- progressives, ethnic groups, the working uninsured, organized labor is one of the most fundamental.

RICHARD TRUMKA, AFL-CIO: I think that just, we've never seen this level of involvement, activism, volunteerism this early in the election cycle.

SCHIAVONE: But a contract stand-off with Boston's main police union could detract from one of the most unified party gatherings in recent memory. And despite a superior court judge's order that the party settle up with an independent arbitrator by Thursday afternoon, disruption threats loom large.

THOMAS NEE, POLICE PATROLMAN'S ASSOCIATION: No party should be held in Boston unless the business of the city is being taken care of.

SCHIAVONE: Unhappy about forced binding contract settlement talks, disgruntled officers have threatened to picket Mayor Thomas Menino wherever he is during the convention week.

NEE: We're going to be there. We will be loud. We will be vocal and we will be exercising our first amendment.

SCHIAVONE: Recently, the strategy kept presidential candidate John Kerry from a Boston gathering of the U.S. Conference of Mayors, putting Kerry at odds with his own mayor. Now, sources say some of the most powerful Democrats in the nation are becoming very irritated. Certainly the mayor is.

MAYOR THOMAS MENINO, BOSTON, MASSACHUSETTS: I think they're supposed to be big John Kerry folks. You know, they want to be able to -- if they really cared about John Kerry, that was my argument, they would have dropped the picket lines, let John Kerry go in, give his speech and put the picket lines up afterwards. I think they used that issue to try to force me to give a contract that the city could not afford.

SCHIAVONE: And the city's worries about terrorism are making Boston all the more anxious about police officers becoming part of the dozens of anticipated demonstrations. How a political convention unfolds reflects directly on a nominee's perceived ability to organize and govern. Democrats are hoping a binding settlement will be enough to put the police contract issue to rest. Lisa Schiavone, CNN Financial News, Boston.

(END VIDEOTAPE)

LIN: And when you're away from your television, you can stay on top of all the political developments by logging onto our Web site. The address is cnn.com/allpolitics.

Right now it's time for our international market update.

And for that, we turn to our Todd Benjamin, checking the financial numbers for us in London -- good morning, Todd.

TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.

A dreary session this Thursday here in Europe. Not surprising considering that Wall Street took a tumble on Wednesday.

The Dow, of course, off about 103 points, or some 1 percent.

And the Nasdaq down better than 2 percent, down to levels not seen since last October.

One big disappointment there, Motorola, after it said shipments fell 5 percent in the second quarter. Its stock got shredded.

Right now in Europe, the FTSE's off better than 1 percent here in London.

The DAX is off almost 2 percent in Frankfurt.

And the CAC in Paris is off 1 1/2 percent.

Now, a couple stocks coming out after the close of Wall Street yesterday with their earnings. And some big names, well known names. Starbucks had better than expected guidance and the stock is up 1 1/2 percent in after hours trading. Look for that one.

And another one to look for, eBay, the online auctioneer, going the other way. Its stock fell 5 1/2 percent in after hours trading after its full year guidance disappointed Wall Street.

So right now Wall Street is in a very unforgiving mood.

And the futures market right now is pointing to just a slightly lower open. But we're going to get jobless claims before the opening bell, you know, the latest numbers on those filing for first time unemployment benefits. And they're expected to be about 345,000. If that number is a lot worse, that could put added pressure on the open -- Carol, have a great morning.

LIN: Wow. Gee, thanks, Todd.

All around good news there. BENJAMIN: Exactly.

LIN: We'll see if the markets take off. All right, singer Linda Ronstadt may get her job back after all. Next on DAYBREAK, the latest on the controversial remarks about Michael Moore that got her kicked out of a Vegas hotel room.

And the black hole theory revamped. We're going to try to make sense of it then and now.

(COMMERCIAL BREAK)

LIN: We're going to take you way out right now, all the way out into outer space. Information can and actually does escape from black holes. So says the scientist who first gave us the black hole theory. The problem is Steven Hawking now concedes his first theory about black holes was wrong.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): It was a theory that captured the imagination -- the massive collapse of all matter at a point in space so profound nothing could escape, destroying everything inside of it. It was the theory on which Steven Hawking built his career and reputation. His book, "A Brief History of Time," popularized his theory, sold 10 million copies, made the physicist a household name and an unlikely figure of pop culture.

Now, the scientist, who is crippled by a motor neuron disease, says he was wrong -- matter can and does escape a black hole. The admission cost Hawking -- not his career, but an encyclopedia, the price of a bet he made with American physicist John Preskill.

JOHN PRESKILL, CALTECH: I had always hoped that when Steven conceded this bet, there would be a witness. And, but this really exceeds my expectations.

TUCKER: Now, the scientist community eagerly awaits the explanation of how that matter, that information, escapes. Beyond science fiction fans and scientists, this may seem like an obscure theory. Yet while complex, understanding black holes could create new understandings about our universe.

SAMIR MATHUR, OHIO STATE UNIVERSITY: There is a deep relation between space, time and matter that we have been trying to get at for so many years. I think all these three things meet at the black hole. If one could understand how information comes out of the black hole, he will understand something very important about the interrelation of space, time and matter.

TUCKER: Hawkins apologized to sci-fi fans for his reversal, warning them that if they enter a black hole, they'll be returned to this dimension and in a mangled form. It's not often a genius admits a mistake. Probably only about once in a blue moon. So it can be no coincidence that July is a blue moon month.

Bill Tucker, CNN, New York. (END VIDEOTAPE)

LIN: Time now for a DAYBREAK "Eye Opener." Linda Ronstadt may be invited back to the Aladdin Casino in Las Vegas after all. Ronstadt, you'll remember, was ushered out after praising filmmaker Michael Moore during her show. Her remarks caused a near riot, some 2,000 people booing her in the audience. But now, a new ownership group says they would like to have her back once they take control of the property next month.

And then there's the story of the freezer bound cat in Brooklyn Heights, Ohio. The mayor says an animal control worker euthanized the animal and put it in a freezer for storage. But when another employee opened the freezer, the cat jumped out. The city plans to review its animal control procedures.

The Germans have conquered Europe -- at least the beer drinking parts of Europe. A British survey shows that Germans now outpace every other country in the amount of beer they drink. Britain had been number one. The survey also showed that nearly one out of every five Germans drinks to get drunk. That also tops in Europe.

And here is what's ahead in the next half hour.

Calm -- that's how the 9/11 hijackers are being described in newly released surveillance tape. More on that video ahead.

And the move the Army is making that some say could be a sign of trouble. I'm going to explain.

Plus, inside million dollar homes in Iraq -- why the real estate business is booming in Baghdad -- and no pun intended.

(COMMERCIAL BREAK)

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