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CNN Live At Daybreak
Security Arrangements at Convention; The 9/11 Commission Report: A Plan of Action or a Toothless Exercise?
Aired July 26, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: John Kerry opens his morning in Florida. But you can bet Boston is on his mind. We're just hours away from the opening of the Democratic National Convention.
It is Monday, July 26.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, a deadline extended. A militant Islamic group holding three Kenyans, three Indians and an Egyptian in Iraq is pushing back the deadline for negotiations. The group wants their Kuwaiti employer to leave Iraq.
The last of the Philippine military members in Iraq returned to Manila today. Their early pullout from Iraq was ordered in exchange for the release of a Filipino truck driver kidnapped by insurgents.
A humanitarian relief flight leaves Great Britain for the Darfur region of Sudan. Arab militias are blamed for killing thousands of people there. And today the European Union joined Washington in threatening sanctions against Sudan.
The nation's nuclear labs are shut down today for an inventory of classified computer disks. The shutdown of inventory was ordered after 15 workers at the Los Alamos Labs were suspended in the disappearance of the classified disks there.
Keeping you informed, CNN, the most trusted name in news.
Good morning, Rob Marciano, in for Chad Myers, who's on vacation my first day back, can you believe that?
ROB MARCIANO, CNN CORRESPONDENT: No, your first day back. And what were you off, two weeks?
COSTELLO: Two weeks. Two wonderful weeks.
MARCIANO: Oh, look it, you're glowing like you got married or something. It's so nice to have you back, Carol.
You look wonderful.
COSTELLO: Thank you, Rob, and welcome to DAYBREAK.
MARCIANO: Thank you.
I'm glad to be back and with you.
Chad on vacation for the rest of the week, well deserved, as usual.
(WEATHER REPORT)
COSTELLO: The road to the White House -- will it run through Boston? The Democrats opened their nominating convention today. Senator John Kerry was in the city last night. At 10:00 Eastern this morning, he'll be in Cape Canaveral, Florida. In fact, he has already arrived in Florida this morning. Actually, this is Kerry arriving in Cocoa Beach. He flew there overnight on a flight from Boston.
On Tuesday, Kerry heads to Norfolk, Virginia. From Norfolk, it's on to Philadelphia for a quick campaign event. And on Wednesday afternoon, he's due back in Beantown.
At Fenway Park last night, Kerry threw out the first pitch, to a Massachusetts National Guard soldier just back from Iraq. And, by the way, the Red Sox nine, the Yankees six, and there was no fighting in this game.
The convention is the first since the terrorist attacks three years ago. And as you can imagine, security is very tight. Getting around Boston could prove quite difficult.
Our Keith Oppenheim looks at the security arrangements.
(BEGIN VIDEOTAPE)
KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): The beautiful skyline can be deceiving. Boston is under intense pressure to pull off what's called a national special security event.
LT. KEVIN FOLEY, BOSTON POLICE: I don't think that we've overlooked any conceivable event.
OPPENHEIM: An estimated 3,000 police officers, with no shortage of bomb sniffing dogs, are getting ready. That means shutdowns of 40 miles of roads, including the one that goes by the Fleet Center, where the convention is being held.
UNIDENTIFIED FEMALE: I'm not even considering taking my car out, because you don't know what streets are open or closed or where.
OPPENHEIM (on camera): And federal agents, for example, are trying to reduce the risk of terror attacks by removing trash cans, even welding some manhole covers shut. But it all comes at a price -- about $50 million, which is approximately half of the entire convention's budget.
(voice-over): The other half is for showmanship, a four night display of who's who in the Democratic Party -- Bill Clinton, Al Gore, Jimmy Carter and John Edwards. But some political observers believe it's ultimately up to John Kerry to define himself.
DAVID KING, HARVARD UNIVERSITY: An acceptable alternative in a time of terrorism and war, an acceptable alternative to the current president. If he fails at that, then the convention itself is a failure no matter what happens the rest of the week.
OPPENHEIM: So, for a city and a hometown candidate, the stakes are high.
Keith Oppenheim, CNN, Boston.
(END VIDEOTAPE)
COSTELLO: And what would any political convention be without a protest of some kind? Police had to rescue a man carrying anti-gay and anti-abortion messages from a hostile crowd at a rally near the Fleet Center. About 3,000 anti-war demonstrators marched near the site of the convention hall.
Senator and former First Lady Hillary Rodham Clinton will talk about the gathering of Democrats with Bill Hemmer on CNN's "AMERICAN MORNING." Will is in Boston all week. That's coming up at 7:20 Eastern. Of course, that will happen this morning.
And stay with CNN for all of your convention coverage. Our primetime lineup begins with "ANDERSON COOPER 360" at 7:00 p.m., followed by an "AMERICA VOTES" special with Wolf Blitzer. And then it's "LARRY KING LIVE" at 9:00, plus a fresh show at midnight.
A new CNN/"USA Today"/Gallup poll shows John Kerry and George Bush are virtually neck and neck in key battleground states. In Florida, Bush holds a slight lead. He's favored by 50 percent of likely voters compared to Kerry's 46 percent. In Ohio, Kerry leads Bush by 48-45 percent. And in Missouri, the two candidates are even at 47 percent apiece.
The 9/11 Commission report -- a plan of action or a toothless exercise? It depends on who you talk to. Thousands of you have copies that you bought from the bookstores and President Bush bought his own copy and brought it to his ranch near Crawford, Texas, where White House correspondent Suzanne Malveaux is covering the story.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): 9/11 families are divided over the commission's report. Rosemary Dillard, who lost her husband on Flight 77.
ROSEMARY DILLARD, VICTIM'S WIDOW: I think the report is good. I am very hopeful. But it's going to take work.
MALVEAUX: Beverly Eckhart, now also a widow after September 11, is disappointed it didn't name names. BEVERLY ECKHART, VICTIM'S WIDOW: Sometimes you do have to identify the people within the organization who are not functioning the way they should be.
MALVEAUX: But its chairs said naming names would have been impractical.
LEE HAMILTON, 9/11 COMMISSION VICE CHAIR: It would have been hugely divisive and we would not have been able to agree on the factual record, not been able to agree on recommendations.
MALVEAUX: Former counter-terrorism chief Richard Clarke called the report "toothless," saying in the "New York Times": "Because the commission had a goal of creating a unanimous report from a bipartisan group, it softened the edges and left it to the public to draw many conclusions....the Bush administration did little on terrorism before 9/11, and that by invading Iraq, the administration has left us less safe as a nation."
While the commission chair says analyzing Iraq policy was not its task, he did weigh in on the controversy.
THOMAS KEAN, 9/11 COMMISSION CHAIRMAN: And it's a gamble in Iraq. If Iraq works out the way the Bush administration and others hope it will, it could transform the Middle East. If it doesn't, it could be a source of continuing problems and irritation and a home for future terrorists.
MALVEAUX: Now that the commission's work is complete, members -- five Democrats and five Republicans -- say they'll forego participating in the presidential campaigns and instead take to the road to lobby for their recommendations. Welcomed news for those still grieving.
DILLARD: We got caught once. We will not be caught again. And you can see the steps we're taking to ensure that everyone here can go to bed at night and wake up in the morning.
MALVEAUX (on camera): President Bush brought the 9/11 Commission report with him to his Crawford ranch and is conferring with his staff on how to immediately implement some of those recommendations. Monday, he meets with his national security adviser, Condoleezza Rice.
Suzanne Malveaux, CNN, Crawford, Texas.
(END VIDEOTAPE)
COSTELLO: And here are some stories making news across America this Monday.
In Pennsylvania, tragedy at a small airport during landing practice. A small plane crashes into a hangar, killing all four people on board. Two of the victims were children. The plane clipped the edge of the hangar during a touch and go landing maneuver.
The U.S. Supreme Court may have a say in the Kobe Bryant case. Media attorneys are arguing for the right to publish transcripts of a closed court hearing in which the sex life of Bryant's accuser was discussed. A court reporter had mistakenly sent the transcripts to seven news organizations. The judge then tried to correct the mistake by barring publication, arguing it would violate the privacy of Bryant's accuser. Lawyers for the news media argue that prior restraint is unconstitutional.
Salt Lake City police say an arrest warrant could be issued as early as this week in the case of a missing pregnant woman. Lori Hacking was last seen a week ago. Friends, family and search volunteers turned out for a candlelight vigil in her honor. Police say her husband Mark is a person of interest but not a suspect.
And the search for Hacking does remind one of the hunt for Laci Peterson. Testimony resumes in her husband's murder trial this morning. The latest testimony has focused on hair raising evidence.
Rusty Dornin has more for you.
(BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): How did one hair found attached to pliers at the bottom of Scott Peterson's boat become two hairs a little more than a month later? Prosecutors say the hair broke in half. The defense says it was mishandled evidence. A hair analyst testified the two fragments are definitely two different hairs. Legal observers here say the expert testimony does not help the prosecution's case with the jury.
ROBERT TALBOT, LEGAL OBSERVER: One hair mysteriously became two hairs and this kind of casts some doubt and some aspersions on what the Modesto Police Department was doing.
DORNIN: Once again, the defense had a chance to air their theory that someone else could have killed Laci Peterson and police didn't follow up. Defense counsel Mark Geragos brought up more than two dozen parolees and sex offenders out of a list of more than 300 that he claims police didn't check out thoroughly.
One detective told the court many of the offenders were either mentally ill, dead, elderly or had moved away and police did not consider them connected to the case. However, the defense was able to establish that more than 200 sex offenders live within a one mile radius of the Peterson home.
Another detective testified that Peterson rented a mailbox the day before his wife disappeared and then received a letter from his then girlfriend Amber Frey a little more than two weeks later.
(on camera): On Thursday, Mark Geragos will argue his motion to have charges dismissed against his client, claiming that a lead investigator lied on the stand about a tipster. And the judge will decide which parts of Scott Peterson's television interviews will be shown to the jury.
Rusty Dornin, CNN, Redwood City, California. (END VIDEOTAPE)
COSTELLO: Well, when we come back, we'll shift gears. At auto dealerships, inventories are up, sales are down. It is a buyer's market out there. Details for you about seven minutes away.
Plus, the Democrats are revving up for the start of their big convention. We take you live to Boston at the bottom of this hour.
We're also live in Jerusalem, as more Palestinians are killed by Israeli forces and Israelis come under attack overnight.
And worship at work -- it's a growing trend. We'll wrap up this hour inside some big companies that mix prayer and productivity.
This is DAYBREAK for a Monday morning.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It is 5:14 Eastern.
Here's what's all new this morning.
The Democratic National Convention kicks off today with a return to the party's past. First day speakers include former Presidents Carter and Clinton. John Kerry is expected to arrive at the convention on Wednesday.
An 11-year-old boy is in guarded condition this morning after being bitten by a shark while fishing in the Gulf of Mexico. The boy was carrying a bag of fish near the beach. He was bitten three times on the arm and leg.
In money news, Microsoft system it's hiring. The software giant is planning to add around 7,000 jobs, with nearly half of those set for its headquarters in Washington State. Other hiring could take place in the company's new facilities in India.
In culture, the 9/11 Commission report is a popular read, even outside of Washington. The lengthy report hit number one on the online sales lists for both Amazon.com and Barnes & Noble.
In sports, Dale Earnhardt, Jr. gave way to a relief driver during the Nextel Cup race in New Hampshire. Junior was still hurting from burns suffered during a race -- suffered during a crash in a race last week. His sub finished in 31st place, well behind the race winner, which was Kurt Busch -- Rob.
(WEATHER REPORT)
COSTELLO: Time to check the overseas markets to see what may be on tap on Wall Street.
For that, we head live to London and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning.
Markets trading flat here. Not surprising considering that on Friday the Dow fell below 10000. The Nasdaq was off some 2 percent.
The markets in the U.S. have really been struggling. The S&P 500 is now down six weeks in a row. It's off 5 percent this month alone. And, of course, the Dow is now down six weeks in a row and the Nasdaq has just been getting hammered.
In terms of what we're looking forward to this week, more earnings out and a lot of the guidance that companies have been giving has been disappointing. So that's been hurting the market.
Big names reporting this week include Boeing, Exxon Mobil and the parent of this company, CNN, Time Warner. The other thing we'll be keeping our eye on besides earnings, of course, oil prices. Oil is close to $42 a barrel. Can we get the price down? That's also been a worry for investors. People will be looking at the convention, as well. The uncertainty over the election keeping investors on tenterhooks.
And finally, of course, we're going to get economic data, including durable goods orders, consumer confidence and second quarter GDP.
A lot on the plate this week.
Carol -- back to you.
COSTELLO: Certainly so.
Thank you very much.
Gas prices are down, but only a teeny tiny bit, which was probably why you didn't notice. The average price per gallon stands at $1.95. That's down nearly $0.01. Regular unleaded has dropped around $0.15 since hitting a record high in May. Industry analysts say the supply had been down because of routine maintenance at refineries. But now that the repairs are done, gas prices aren't as high. Supply and demand, don't you know it?
Auto makers hope that the slowly dropping gas prices mean a quick rise in sales. But with auto sales slumping to a six year low, can we expect to see some special incentives?
CNN's Fred Katayama tries to find out.
(BEGIN VIDEOTAPE)
FRED KATAYAMA, CNN CORRESPONDENT (voice-over): They're just sitting there. So many unsold cars and trucks line dealers' lots that some auto makers could theoretically stop producing some models and still have enough to last through the end of the model year. MARVIN SUSKIN, SCARSDALE FORD: Inventory levels today are pretty high, much higher than we would expect them to be at this time of the year. Usually this time of the year is our selling season. And it doesn't seem like we've really had a selling season.
KATAYAMA: The auto makers thought they would sell more cars and trucks this year because the economy would improve and consumers would have more income. So they raised sticker prices. But they guessed wrong and over produced. Customers noticed. Sales fell 2 percent last month.
JOHN CASESA, MERRILL LYNCH: The inventories right now are about 20 percent above normal. And what that means is over the next couple of months, this summer, July and August, these companies either need to cut production or cut prices further in the form of higher incentives.
KATAYAMA: The Detroit auto makers are the worst off, with an 84 day supply of cars and trucks in June, 31 percent above its historical average. The Europeans aren't faring much better. But the Asian auto makers are just 8 to 9 percent above normal.
Spending overtime on the lots, big sport utilities. Higher prices at the pump have pushed some consumers away from big gas guzzlers.
(on camera): The problem is auto makers make the most money off light trucks like sport utilities and pickups. Now, they may have to fatten incentives to clear vehicles off dealer lots, and that means it'll be tougher for them to keep the earnings engine running in high gear.
Fred Katayama, CNN Financial News, New York.
(END VIDEOTAPE)
COSTELLO: Oh, you could call him a lean, mean cycling machine. Lance Armstrong reigns supreme with an unprecedented sixth Tour de France victory. We'll talk more about the Tour de France -- tour de Lance, you could say -- ahead.
Also, did you see it? Matt Damon proves to be a born winner at the box office. We'll tell you about his supremacy on the big screen.
This is DAYBREAK.
(BEGIN VIDEO CLIP FROM "THE BOURNE SUPREMACY")
MATT DAMON, ACTOR: Why are they still after me?
UNIDENTIFIED ACTOR: I don't know.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
LANCE ARMSTRONG, 6-TIME TOUR DE FRANCE WINNER: It's special to stand on arguably one of the most famous boulevards in the world and have your own national anthem played. And to have had it done six times is incredible.
(END VIDEO CLIP)
COSTELLO: Oh, of course that's Lance Armstrong at the Tour de France, winning a record six times. It's incredible.
MARCIANO: Unbelievable. Yes, it is. And, of course, the story of him beating cancer seven or eight years ago, that's the amazing part. And he's as close to a rock star as a cyclist can get and now he's dating a rock star so.
COSTELLO: Sheryl Crow. She was there through the whole thing. And I hope we have a picture of her, because I was trying to get -- you know, she's my idol.
MARCIANO: She is?
COSTELLO: She -- I love her show.
MARCIANO: Why so?
COSTELLO: I just think she's awesome.
MARCIANO: I have seen one of her shows and she jams. I mean she pulls some old stuff out...
COSTELLO: Exactly.
MARCIANO: A little bit of The Who.
COSTELLO: And just a little brush with greatness. Lance Armstrong and Sheryl Crow was in my Starbucks in Atlanta a couple of months ago.
MARCIANO: Come on?
COSTELLO: Yes.
MARCIANO: Did you harass them?
COSTELLO: No, I was too embarrassed. I wanted to leave them alone. But they were smiling and they seemed to go to -- it was a great fit and they were friendly and they were really nice to coffee maker.
MARCIANO: Oh, most important.
COSTELLO: Exactly.
MARCIANO: They're real people. COSTELLO: But, anyway, back to Lance winning a sixth time. Congratulations. He may not race next year in the Tour de France. He may try a new race.
MARCIANO: Well, it looks like it takes a lot to train for it, so, I hope he takes a little time off.
COSTELLO: Oh, you're not kidding.
MARCIANO: Well deserved.
COSTELLO: Exactly.
Time now for our DAYBREAK "Eye Openers" so stick around for that, Rob.
MARCIANO: OK.
COSTELLO: They're always fun.
MARCIANO: Will do. All right.
COSTELLO: Look out below for grandma! That's Edna Grand (ph). She celebrated her 90th birthday by jumping out of a plane. She had to get a note from her doctor before making her first ever leap. And when asked how it felt to fly, she said it felt fine.
MARCIANO: I bet grandma likes roller coasters.
COSTELLO: I bet she does, too.
Papa would be proud, or maybe he's spinning in his grave. A North Carolina man was named the year's top Ernest Hemingway look- alike during the animal Hemingway Days in Key West. There were 136 contestants, Rob. Some traveled from as far away as Kazakhstan to take part.
MARCIANO: Chad, a big fan of Key West. I don't see him there as a look-alike.
COSTELLO: Maybe that's where he is now. Hey, that's him. Let's listen.
(BEGIN VIDEO CLIP FROM "THE BOURNE SUPREMACY")
UNIDENTIFIED ACTOR: Jason Bourne just popped up on the grid in Naples.
UNIDENTIFIED ACTOR: He's making his first mistake.
UNIDENTIFIED ACTOR: They don't make mistakes.
(END VIDEOTAPE)
COSTELLO: Bourne again at the box office. "The Bourne Supremacy" easily grabs the top spot at the box office over the weekend. The sequel sold more than $53 million worth of tickets.
MARCIANO: Wow!
COSTELLO: That's nearly double the opening for "The Bourne Identity" two years ago.
In the meantime, the other anticipated debut, "Catwoman," barley scratched out a third place finish. That's because the critics have not been kind.
MARCIANO: Well, and apparently she doesn't actually get into the cat suit until a half an hour into the movie. So I mean what do you, you know, come on. Let's get right to it.
COSTELLO: Maybe that's the problem.
MARCIANO: It could be.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
The Fleet Center prepares for thousands of delegates and all of the Democratic Party's brightest political stars. We're going to take you live to Boston as the big convention gets set to begin.
And violent clashes in the streets of Gaza. Israelis and Palestinians go head to head. We'll take you live to Jerusalem for the latest.
This is DAYBREAK for Monday.
(BEGIN VIDEOTAPE)
UNIDENTIFIED CORRESPONDENT: Martin Sprock has redefined the dinning experience thanks to his hard work and determination. As CEO of Raving Brands, Sprock has grown franchises such as Planet Smoothie, Moe's Southwest Grill and Mama Foo's Noodle House into multi-million dollar businesses. What's his greatest asset?
MARTIN SPROCK, FOUNDER & CEO, RAVING BRANDS: I'm told it's passion, but I think it's just stubbornness, just not willing to give up. And also doing what you say you're going to do. The old saying doesn't work around here, if it ain't broke, don't fix it. We don't believe in that. We believe in fix it every single day because somebody's going to fix it better and do it better if you're not on your toes.
(COMMERCIAL BREAK)
COSTELLO: This is where the Democrats will nominate their presidential candidate. You are looking at the inside of Boston's Fleet Center.
It is Monday, July 26.
This is DAYBREAK. And good morning to you.
Welcome to the second half hour of DAYBREAK.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, as the Democrats meet in Boston, John Kerry is in the battleground state of Florida. He'll hold a town hall meeting at the Kennedy Space Center.
Seven truckers kidnapped in Iraq get a reprieve. A militant group holding three Kenyans, three Indians and an Egyptian is extending its deadline. The kidnappers have vowed to kill the men if their Kuwaiti employer does not pull out of Iraq.
Salt Lake City police say an arrest warrant could be issued in the next few days in the case of Lori Hacking. She's the missing pregnant woman. Police are awaiting results of forensic tests.
And there's another military trial set in the sexual assault scandal at the Air Force Academy in Colorado. The court martial of a male airman accused of rape gets under way today.
(WEATHER REPORT)
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Aired July 26, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: John Kerry opens his morning in Florida. But you can bet Boston is on his mind. We're just hours away from the opening of the Democratic National Convention.
It is Monday, July 26.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, a deadline extended. A militant Islamic group holding three Kenyans, three Indians and an Egyptian in Iraq is pushing back the deadline for negotiations. The group wants their Kuwaiti employer to leave Iraq.
The last of the Philippine military members in Iraq returned to Manila today. Their early pullout from Iraq was ordered in exchange for the release of a Filipino truck driver kidnapped by insurgents.
A humanitarian relief flight leaves Great Britain for the Darfur region of Sudan. Arab militias are blamed for killing thousands of people there. And today the European Union joined Washington in threatening sanctions against Sudan.
The nation's nuclear labs are shut down today for an inventory of classified computer disks. The shutdown of inventory was ordered after 15 workers at the Los Alamos Labs were suspended in the disappearance of the classified disks there.
Keeping you informed, CNN, the most trusted name in news.
Good morning, Rob Marciano, in for Chad Myers, who's on vacation my first day back, can you believe that?
ROB MARCIANO, CNN CORRESPONDENT: No, your first day back. And what were you off, two weeks?
COSTELLO: Two weeks. Two wonderful weeks.
MARCIANO: Oh, look it, you're glowing like you got married or something. It's so nice to have you back, Carol.
You look wonderful.
COSTELLO: Thank you, Rob, and welcome to DAYBREAK.
MARCIANO: Thank you.
I'm glad to be back and with you.
Chad on vacation for the rest of the week, well deserved, as usual.
(WEATHER REPORT)
COSTELLO: The road to the White House -- will it run through Boston? The Democrats opened their nominating convention today. Senator John Kerry was in the city last night. At 10:00 Eastern this morning, he'll be in Cape Canaveral, Florida. In fact, he has already arrived in Florida this morning. Actually, this is Kerry arriving in Cocoa Beach. He flew there overnight on a flight from Boston.
On Tuesday, Kerry heads to Norfolk, Virginia. From Norfolk, it's on to Philadelphia for a quick campaign event. And on Wednesday afternoon, he's due back in Beantown.
At Fenway Park last night, Kerry threw out the first pitch, to a Massachusetts National Guard soldier just back from Iraq. And, by the way, the Red Sox nine, the Yankees six, and there was no fighting in this game.
The convention is the first since the terrorist attacks three years ago. And as you can imagine, security is very tight. Getting around Boston could prove quite difficult.
Our Keith Oppenheim looks at the security arrangements.
(BEGIN VIDEOTAPE)
KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): The beautiful skyline can be deceiving. Boston is under intense pressure to pull off what's called a national special security event.
LT. KEVIN FOLEY, BOSTON POLICE: I don't think that we've overlooked any conceivable event.
OPPENHEIM: An estimated 3,000 police officers, with no shortage of bomb sniffing dogs, are getting ready. That means shutdowns of 40 miles of roads, including the one that goes by the Fleet Center, where the convention is being held.
UNIDENTIFIED FEMALE: I'm not even considering taking my car out, because you don't know what streets are open or closed or where.
OPPENHEIM (on camera): And federal agents, for example, are trying to reduce the risk of terror attacks by removing trash cans, even welding some manhole covers shut. But it all comes at a price -- about $50 million, which is approximately half of the entire convention's budget.
(voice-over): The other half is for showmanship, a four night display of who's who in the Democratic Party -- Bill Clinton, Al Gore, Jimmy Carter and John Edwards. But some political observers believe it's ultimately up to John Kerry to define himself.
DAVID KING, HARVARD UNIVERSITY: An acceptable alternative in a time of terrorism and war, an acceptable alternative to the current president. If he fails at that, then the convention itself is a failure no matter what happens the rest of the week.
OPPENHEIM: So, for a city and a hometown candidate, the stakes are high.
Keith Oppenheim, CNN, Boston.
(END VIDEOTAPE)
COSTELLO: And what would any political convention be without a protest of some kind? Police had to rescue a man carrying anti-gay and anti-abortion messages from a hostile crowd at a rally near the Fleet Center. About 3,000 anti-war demonstrators marched near the site of the convention hall.
Senator and former First Lady Hillary Rodham Clinton will talk about the gathering of Democrats with Bill Hemmer on CNN's "AMERICAN MORNING." Will is in Boston all week. That's coming up at 7:20 Eastern. Of course, that will happen this morning.
And stay with CNN for all of your convention coverage. Our primetime lineup begins with "ANDERSON COOPER 360" at 7:00 p.m., followed by an "AMERICA VOTES" special with Wolf Blitzer. And then it's "LARRY KING LIVE" at 9:00, plus a fresh show at midnight.
A new CNN/"USA Today"/Gallup poll shows John Kerry and George Bush are virtually neck and neck in key battleground states. In Florida, Bush holds a slight lead. He's favored by 50 percent of likely voters compared to Kerry's 46 percent. In Ohio, Kerry leads Bush by 48-45 percent. And in Missouri, the two candidates are even at 47 percent apiece.
The 9/11 Commission report -- a plan of action or a toothless exercise? It depends on who you talk to. Thousands of you have copies that you bought from the bookstores and President Bush bought his own copy and brought it to his ranch near Crawford, Texas, where White House correspondent Suzanne Malveaux is covering the story.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): 9/11 families are divided over the commission's report. Rosemary Dillard, who lost her husband on Flight 77.
ROSEMARY DILLARD, VICTIM'S WIDOW: I think the report is good. I am very hopeful. But it's going to take work.
MALVEAUX: Beverly Eckhart, now also a widow after September 11, is disappointed it didn't name names. BEVERLY ECKHART, VICTIM'S WIDOW: Sometimes you do have to identify the people within the organization who are not functioning the way they should be.
MALVEAUX: But its chairs said naming names would have been impractical.
LEE HAMILTON, 9/11 COMMISSION VICE CHAIR: It would have been hugely divisive and we would not have been able to agree on the factual record, not been able to agree on recommendations.
MALVEAUX: Former counter-terrorism chief Richard Clarke called the report "toothless," saying in the "New York Times": "Because the commission had a goal of creating a unanimous report from a bipartisan group, it softened the edges and left it to the public to draw many conclusions....the Bush administration did little on terrorism before 9/11, and that by invading Iraq, the administration has left us less safe as a nation."
While the commission chair says analyzing Iraq policy was not its task, he did weigh in on the controversy.
THOMAS KEAN, 9/11 COMMISSION CHAIRMAN: And it's a gamble in Iraq. If Iraq works out the way the Bush administration and others hope it will, it could transform the Middle East. If it doesn't, it could be a source of continuing problems and irritation and a home for future terrorists.
MALVEAUX: Now that the commission's work is complete, members -- five Democrats and five Republicans -- say they'll forego participating in the presidential campaigns and instead take to the road to lobby for their recommendations. Welcomed news for those still grieving.
DILLARD: We got caught once. We will not be caught again. And you can see the steps we're taking to ensure that everyone here can go to bed at night and wake up in the morning.
MALVEAUX (on camera): President Bush brought the 9/11 Commission report with him to his Crawford ranch and is conferring with his staff on how to immediately implement some of those recommendations. Monday, he meets with his national security adviser, Condoleezza Rice.
Suzanne Malveaux, CNN, Crawford, Texas.
(END VIDEOTAPE)
COSTELLO: And here are some stories making news across America this Monday.
In Pennsylvania, tragedy at a small airport during landing practice. A small plane crashes into a hangar, killing all four people on board. Two of the victims were children. The plane clipped the edge of the hangar during a touch and go landing maneuver.
The U.S. Supreme Court may have a say in the Kobe Bryant case. Media attorneys are arguing for the right to publish transcripts of a closed court hearing in which the sex life of Bryant's accuser was discussed. A court reporter had mistakenly sent the transcripts to seven news organizations. The judge then tried to correct the mistake by barring publication, arguing it would violate the privacy of Bryant's accuser. Lawyers for the news media argue that prior restraint is unconstitutional.
Salt Lake City police say an arrest warrant could be issued as early as this week in the case of a missing pregnant woman. Lori Hacking was last seen a week ago. Friends, family and search volunteers turned out for a candlelight vigil in her honor. Police say her husband Mark is a person of interest but not a suspect.
And the search for Hacking does remind one of the hunt for Laci Peterson. Testimony resumes in her husband's murder trial this morning. The latest testimony has focused on hair raising evidence.
Rusty Dornin has more for you.
(BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): How did one hair found attached to pliers at the bottom of Scott Peterson's boat become two hairs a little more than a month later? Prosecutors say the hair broke in half. The defense says it was mishandled evidence. A hair analyst testified the two fragments are definitely two different hairs. Legal observers here say the expert testimony does not help the prosecution's case with the jury.
ROBERT TALBOT, LEGAL OBSERVER: One hair mysteriously became two hairs and this kind of casts some doubt and some aspersions on what the Modesto Police Department was doing.
DORNIN: Once again, the defense had a chance to air their theory that someone else could have killed Laci Peterson and police didn't follow up. Defense counsel Mark Geragos brought up more than two dozen parolees and sex offenders out of a list of more than 300 that he claims police didn't check out thoroughly.
One detective told the court many of the offenders were either mentally ill, dead, elderly or had moved away and police did not consider them connected to the case. However, the defense was able to establish that more than 200 sex offenders live within a one mile radius of the Peterson home.
Another detective testified that Peterson rented a mailbox the day before his wife disappeared and then received a letter from his then girlfriend Amber Frey a little more than two weeks later.
(on camera): On Thursday, Mark Geragos will argue his motion to have charges dismissed against his client, claiming that a lead investigator lied on the stand about a tipster. And the judge will decide which parts of Scott Peterson's television interviews will be shown to the jury.
Rusty Dornin, CNN, Redwood City, California. (END VIDEOTAPE)
COSTELLO: Well, when we come back, we'll shift gears. At auto dealerships, inventories are up, sales are down. It is a buyer's market out there. Details for you about seven minutes away.
Plus, the Democrats are revving up for the start of their big convention. We take you live to Boston at the bottom of this hour.
We're also live in Jerusalem, as more Palestinians are killed by Israeli forces and Israelis come under attack overnight.
And worship at work -- it's a growing trend. We'll wrap up this hour inside some big companies that mix prayer and productivity.
This is DAYBREAK for a Monday morning.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports.
It is 5:14 Eastern.
Here's what's all new this morning.
The Democratic National Convention kicks off today with a return to the party's past. First day speakers include former Presidents Carter and Clinton. John Kerry is expected to arrive at the convention on Wednesday.
An 11-year-old boy is in guarded condition this morning after being bitten by a shark while fishing in the Gulf of Mexico. The boy was carrying a bag of fish near the beach. He was bitten three times on the arm and leg.
In money news, Microsoft system it's hiring. The software giant is planning to add around 7,000 jobs, with nearly half of those set for its headquarters in Washington State. Other hiring could take place in the company's new facilities in India.
In culture, the 9/11 Commission report is a popular read, even outside of Washington. The lengthy report hit number one on the online sales lists for both Amazon.com and Barnes & Noble.
In sports, Dale Earnhardt, Jr. gave way to a relief driver during the Nextel Cup race in New Hampshire. Junior was still hurting from burns suffered during a race -- suffered during a crash in a race last week. His sub finished in 31st place, well behind the race winner, which was Kurt Busch -- Rob.
(WEATHER REPORT)
COSTELLO: Time to check the overseas markets to see what may be on tap on Wall Street.
For that, we head live to London and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning.
Markets trading flat here. Not surprising considering that on Friday the Dow fell below 10000. The Nasdaq was off some 2 percent.
The markets in the U.S. have really been struggling. The S&P 500 is now down six weeks in a row. It's off 5 percent this month alone. And, of course, the Dow is now down six weeks in a row and the Nasdaq has just been getting hammered.
In terms of what we're looking forward to this week, more earnings out and a lot of the guidance that companies have been giving has been disappointing. So that's been hurting the market.
Big names reporting this week include Boeing, Exxon Mobil and the parent of this company, CNN, Time Warner. The other thing we'll be keeping our eye on besides earnings, of course, oil prices. Oil is close to $42 a barrel. Can we get the price down? That's also been a worry for investors. People will be looking at the convention, as well. The uncertainty over the election keeping investors on tenterhooks.
And finally, of course, we're going to get economic data, including durable goods orders, consumer confidence and second quarter GDP.
A lot on the plate this week.
Carol -- back to you.
COSTELLO: Certainly so.
Thank you very much.
Gas prices are down, but only a teeny tiny bit, which was probably why you didn't notice. The average price per gallon stands at $1.95. That's down nearly $0.01. Regular unleaded has dropped around $0.15 since hitting a record high in May. Industry analysts say the supply had been down because of routine maintenance at refineries. But now that the repairs are done, gas prices aren't as high. Supply and demand, don't you know it?
Auto makers hope that the slowly dropping gas prices mean a quick rise in sales. But with auto sales slumping to a six year low, can we expect to see some special incentives?
CNN's Fred Katayama tries to find out.
(BEGIN VIDEOTAPE)
FRED KATAYAMA, CNN CORRESPONDENT (voice-over): They're just sitting there. So many unsold cars and trucks line dealers' lots that some auto makers could theoretically stop producing some models and still have enough to last through the end of the model year. MARVIN SUSKIN, SCARSDALE FORD: Inventory levels today are pretty high, much higher than we would expect them to be at this time of the year. Usually this time of the year is our selling season. And it doesn't seem like we've really had a selling season.
KATAYAMA: The auto makers thought they would sell more cars and trucks this year because the economy would improve and consumers would have more income. So they raised sticker prices. But they guessed wrong and over produced. Customers noticed. Sales fell 2 percent last month.
JOHN CASESA, MERRILL LYNCH: The inventories right now are about 20 percent above normal. And what that means is over the next couple of months, this summer, July and August, these companies either need to cut production or cut prices further in the form of higher incentives.
KATAYAMA: The Detroit auto makers are the worst off, with an 84 day supply of cars and trucks in June, 31 percent above its historical average. The Europeans aren't faring much better. But the Asian auto makers are just 8 to 9 percent above normal.
Spending overtime on the lots, big sport utilities. Higher prices at the pump have pushed some consumers away from big gas guzzlers.
(on camera): The problem is auto makers make the most money off light trucks like sport utilities and pickups. Now, they may have to fatten incentives to clear vehicles off dealer lots, and that means it'll be tougher for them to keep the earnings engine running in high gear.
Fred Katayama, CNN Financial News, New York.
(END VIDEOTAPE)
COSTELLO: Oh, you could call him a lean, mean cycling machine. Lance Armstrong reigns supreme with an unprecedented sixth Tour de France victory. We'll talk more about the Tour de France -- tour de Lance, you could say -- ahead.
Also, did you see it? Matt Damon proves to be a born winner at the box office. We'll tell you about his supremacy on the big screen.
This is DAYBREAK.
(BEGIN VIDEO CLIP FROM "THE BOURNE SUPREMACY")
MATT DAMON, ACTOR: Why are they still after me?
UNIDENTIFIED ACTOR: I don't know.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
LANCE ARMSTRONG, 6-TIME TOUR DE FRANCE WINNER: It's special to stand on arguably one of the most famous boulevards in the world and have your own national anthem played. And to have had it done six times is incredible.
(END VIDEO CLIP)
COSTELLO: Oh, of course that's Lance Armstrong at the Tour de France, winning a record six times. It's incredible.
MARCIANO: Unbelievable. Yes, it is. And, of course, the story of him beating cancer seven or eight years ago, that's the amazing part. And he's as close to a rock star as a cyclist can get and now he's dating a rock star so.
COSTELLO: Sheryl Crow. She was there through the whole thing. And I hope we have a picture of her, because I was trying to get -- you know, she's my idol.
MARCIANO: She is?
COSTELLO: She -- I love her show.
MARCIANO: Why so?
COSTELLO: I just think she's awesome.
MARCIANO: I have seen one of her shows and she jams. I mean she pulls some old stuff out...
COSTELLO: Exactly.
MARCIANO: A little bit of The Who.
COSTELLO: And just a little brush with greatness. Lance Armstrong and Sheryl Crow was in my Starbucks in Atlanta a couple of months ago.
MARCIANO: Come on?
COSTELLO: Yes.
MARCIANO: Did you harass them?
COSTELLO: No, I was too embarrassed. I wanted to leave them alone. But they were smiling and they seemed to go to -- it was a great fit and they were friendly and they were really nice to coffee maker.
MARCIANO: Oh, most important.
COSTELLO: Exactly.
MARCIANO: They're real people. COSTELLO: But, anyway, back to Lance winning a sixth time. Congratulations. He may not race next year in the Tour de France. He may try a new race.
MARCIANO: Well, it looks like it takes a lot to train for it, so, I hope he takes a little time off.
COSTELLO: Oh, you're not kidding.
MARCIANO: Well deserved.
COSTELLO: Exactly.
Time now for our DAYBREAK "Eye Openers" so stick around for that, Rob.
MARCIANO: OK.
COSTELLO: They're always fun.
MARCIANO: Will do. All right.
COSTELLO: Look out below for grandma! That's Edna Grand (ph). She celebrated her 90th birthday by jumping out of a plane. She had to get a note from her doctor before making her first ever leap. And when asked how it felt to fly, she said it felt fine.
MARCIANO: I bet grandma likes roller coasters.
COSTELLO: I bet she does, too.
Papa would be proud, or maybe he's spinning in his grave. A North Carolina man was named the year's top Ernest Hemingway look- alike during the animal Hemingway Days in Key West. There were 136 contestants, Rob. Some traveled from as far away as Kazakhstan to take part.
MARCIANO: Chad, a big fan of Key West. I don't see him there as a look-alike.
COSTELLO: Maybe that's where he is now. Hey, that's him. Let's listen.
(BEGIN VIDEO CLIP FROM "THE BOURNE SUPREMACY")
UNIDENTIFIED ACTOR: Jason Bourne just popped up on the grid in Naples.
UNIDENTIFIED ACTOR: He's making his first mistake.
UNIDENTIFIED ACTOR: They don't make mistakes.
(END VIDEOTAPE)
COSTELLO: Bourne again at the box office. "The Bourne Supremacy" easily grabs the top spot at the box office over the weekend. The sequel sold more than $53 million worth of tickets.
MARCIANO: Wow!
COSTELLO: That's nearly double the opening for "The Bourne Identity" two years ago.
In the meantime, the other anticipated debut, "Catwoman," barley scratched out a third place finish. That's because the critics have not been kind.
MARCIANO: Well, and apparently she doesn't actually get into the cat suit until a half an hour into the movie. So I mean what do you, you know, come on. Let's get right to it.
COSTELLO: Maybe that's the problem.
MARCIANO: It could be.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
The Fleet Center prepares for thousands of delegates and all of the Democratic Party's brightest political stars. We're going to take you live to Boston as the big convention gets set to begin.
And violent clashes in the streets of Gaza. Israelis and Palestinians go head to head. We'll take you live to Jerusalem for the latest.
This is DAYBREAK for Monday.
(BEGIN VIDEOTAPE)
UNIDENTIFIED CORRESPONDENT: Martin Sprock has redefined the dinning experience thanks to his hard work and determination. As CEO of Raving Brands, Sprock has grown franchises such as Planet Smoothie, Moe's Southwest Grill and Mama Foo's Noodle House into multi-million dollar businesses. What's his greatest asset?
MARTIN SPROCK, FOUNDER & CEO, RAVING BRANDS: I'm told it's passion, but I think it's just stubbornness, just not willing to give up. And also doing what you say you're going to do. The old saying doesn't work around here, if it ain't broke, don't fix it. We don't believe in that. We believe in fix it every single day because somebody's going to fix it better and do it better if you're not on your toes.
(COMMERCIAL BREAK)
COSTELLO: This is where the Democrats will nominate their presidential candidate. You are looking at the inside of Boston's Fleet Center.
It is Monday, July 26.
This is DAYBREAK. And good morning to you.
Welcome to the second half hour of DAYBREAK.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, as the Democrats meet in Boston, John Kerry is in the battleground state of Florida. He'll hold a town hall meeting at the Kennedy Space Center.
Seven truckers kidnapped in Iraq get a reprieve. A militant group holding three Kenyans, three Indians and an Egyptian is extending its deadline. The kidnappers have vowed to kill the men if their Kuwaiti employer does not pull out of Iraq.
Salt Lake City police say an arrest warrant could be issued in the next few days in the case of Lori Hacking. She's the missing pregnant woman. Police are awaiting results of forensic tests.
And there's another military trial set in the sexual assault scandal at the Air Force Academy in Colorado. The court martial of a male airman accused of rape gets under way today.
(WEATHER REPORT)
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