Return to Transcripts main page
CNN Live At Daybreak
Recapping Senator Kerry's Speech; Examining Latest Actions by Congress to Implement Recommendations in 9/11 Commission Report
Aired July 30, 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.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm John Kerry and I'm reporting for duty.
(END VIDEO CLIP)
CAROL COSTELLO, CNN ANCHOR: Triumph in Boston -- the Democrats crown a presidential nominee.
It is Friday, July 30.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, in six hours the Senate Governmental Affairs Committee opens its first hearing on the 9/11 Commission tomorrow. Commission members want law makers to adopt all 41 of their proposals.
Back on the campaign trail for John Kerry and John Edwards this morning. Fresh from their party's convention, the Democratic running mates will kick off a 21-state campaign just a couple of hours from now.
President Bush also hits the campaign trail this morning after a week at his ranch in Texas. The president heads back to the battleground states of Missouri, Michigan, Ohio and Pennsylvania.
Thousands of residents in flooded Greenville, South Carolina are without power this morning. A sudden rain storm inundated parts of the city, forcing some homes to be evacuated and roads to be closed.
Keeping you informed, CNN, the most trusted name in news.
Good morning -- Rob.
ROB MARCIANO, CNN CORRESPONDENT: Good morning, Carol.
A lot of rain in those parts yesterday, huh?
COSTELLO: Oh, yes.
(WEATHER REPORT) COSTELLO: The Kerry-Edwards team hits the ground running this morning after a huge night at the Democratic national convention. They'll launch their Believe In America tour with a rally in Boston about two and a half hours from now. And this afternoon, they'll hold a rally in Pennsylvania.
The promise from John Kerry is help is on the way. And cheering party supporters love it. Now a 3,500 mile campaign swing through 21 states begins for Kerry and running mate John Edwards.
Kerry laid out an ambitious plan in speaking to the Democrats last night.
Our Keith Oppenheim has highlights of Kerry's speech accepting the Democratic Party's presidential nomination.
(BEGIN VIDEO TAPE)
KERRY: I'm John Kerry and I'm reporting for duty.
KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): In his hometown, John Kerry began the speech of his political life. In an address that weaved in his personal life story, John Kerry uttered the most important formality of his campaign so far.
KERRY: With great faith in the American people, I accept your nomination for president of the United States.
OPPENHEIM: On Iraq, he advocated for international support.
KERRY: We need a president who has the credibility to bring our allies to our side and share the burden, reduce the cost to American taxpayers, reduce the risk to American soldiers.
OPPENHEIM: And he gave reassurance to those who might question whether he'd be decisive as the commander-in-chief.
KERRY: Let there be no mistake: I will never hesitate to use force when it is required. Any attack will be met with a swift and a certain response.
OPPENHEIM: Kerry gave specifics on his economic plan and sought an optimistic tone.
KERRY: For America, the hope is there. The sun is rising. Our best days are still to come.
OPPENHEIM: And in the shower of balloons and confetti, Kerry and his campaign hope his words connect not only with partisans, but with voters who are taking a close look at him for the first time.
(on camera): After attending some late night partiers, John Kerry and John Edwards will head to a swing state, Pennsylvania, for some post-convention campaigning on Friday.
In Boston, I'm Keith Oppenheim reporting. (END VIDEO TAPE)
COSTELLO: The final day of the convention included protests at the convention hall and near Kerry's home. A group calling themselves Vietnam Veterans Against John Kerry tried to throw symbolic medals and ribbons over the fence onto Kerry's property, reenacting his 1971 protest on Capitol Hill, but the Secret Service stopped them from reaching Kerry's home.
Hundreds of protesters also marched outside the Fleet Center, where the Democratic convention was held. They set fire to a two- faced effigy of Kerry and President Bush.
President Bush, by the way, also returns to the campaign trail today after keeping a low profile during the Democratic convention. Aides say he'll travel to key battleground states and open a new phase of his reelection campaign. The president will make stops today in Springfield, Missouri, Grand Rapids, Michigan and Cleveland, Ohio.
More now from CNN's Kathleen Koch.
(BEGIN VIDEO TAPE)
KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): As President Bush returns to Washington, he immediately hits the campaign trail, a spokesman saying the president will debut a retooled stump speech, with fewer attacks and more details on his vision for the next four years, all a stark contrast to his week out of the spotlight, biking and poring over the 9/11 commission report.
President Bush met three times via secure video conference with the task force he named to analyze the commission's recommendations. Wednesday, a White House spokesman says, they are moving quickly, and making, quote, "great progress," with presidential action predicted as early as tomorrow.
TRENT DUFFY, WHITE HOUSE SPOKESMAN: There are recommendations that have the potential to be put into place quickly. And the president, as I said, would waste no time in doing that. But these are very big issues.
KOCH: While President Bush followed tradition, ceding media attention to the Democrats in Boston, the vice president kept pushing the campaign's message in appearances for Republican candidates.
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: The team meeting this week in Boston would repeal many of the Bush tax cuts within their first 100 days in office. What we're hearing from the other side is the failed thinking of the past. And we're not going back.
KOCH: Mr. Bush's plan now is to go back to battleground states, covering four in a two-day campaign swing.
STUART ROTHMAN, POLITICAL ANALYST: I think he simply needs to get ready for New York, when the Republicans have to show who they are, what they are going to do, what they have done so far, and why George W. Bush needs to be reelected.
(END VIDEO TAPE)
COSTELLO: For more on the political landscape, including the president's action on the 9/11 report and the Democratic convention, log onto our Web site at cnn.com/politics.
A Senate committee will take up the issue of the 9/11 Commission's recommendations at a hearing later this morning. Next week, a number of House panels will also review the report.
But as CNN's Ed Henry reports, Congress and the commission are not exactly on the same page.
(BEGIN VIDEO TAPE)
ED HENRY, CNN CORRESPONDENT (voice-over): Like millions of Americans, Senator Susan Collins has been poring over the commission's final report.
SEN. SUSAN COLLINS (R), MAINE: I think it offers us a blueprint for reform that is invaluable.
HENRY: But the chairman of this morning's hearing is known for independence. She vows to give the recommendations heavy scrutiny.
COLLINS: We're not going to rubber stamp them. We're going to analyze them carefully.
HENRY: Republican Collins and Democrat Joe Lieberman are focusing on the two biggest proposals -- creation of a national director of intelligence and a new counter-terrorism center. But commission members think Congress and the president should adopt all 41 proposals. They want little, if any, tinkering.
RICHARD BENVENISTE, 9/11 COMMISSION: These recommendations are interlocking and interdependent. This is not a Chinese menu where you pick one from Column A and one from Column B. They all work together.
HENRY: Today's star witnesses, Tom Kean and Lee Hamilton. They pledge to hold public officials accountable. And congressional leaders are suddenly moving at a brisk pace. In addition to the Senate hearing, no fewer than six House committees will hold 15 hearings in August. One Republican aide noted that with the government warning of attacks, law makers will "look like jack asses if we don't do something."
The chairman of a previous commission on terror urges caution.
JAMES GILMORE, FORMER CHAIR OF TERROR COMMISSION: My advice would be to not be stampeded by the political situation we're in, by the election year, by the sense that if they don't do something right away that somehow they're going to be criticized, if, god forbid, there should be another attack, somehow they'll be blamed.
(END VIDEO TAPE) COSTELLO: That was CNN's Ed Henry reporting.
And CNN will begin our live coverage of the Senate committee's first hearing on the 9/11 Commission's report at 11:00 Eastern this morning.
Here are some stories making news across America this Friday.
NBA star Kobe Bryant returns to court today. On Thursday, the judge in the sexual assault case released portions of court transcripts accidentally e-mailed to several media organizations. The transcripts detail a $17,000 payment from a victim's advocacy group to Bryant's accuser. Bryant is expected back in court today for one of the final hearings before jury selection begins next month.
Did Libya plan to assassinate Saudi Arabia's crown prince? An American Muslim leader is expected in federal court this morning to answer charges related to his dealings with Libya and leader Moammar Qaddafi. Abduri Almoudi is also expected to admit to being involved in a plot last year to kill the crown prince.
Colin Powell makes a surprise stop on his latest diplomatic tour of the Middle East. We'll get you details of the secretary of state's latest stop in a live report just ahead.
Also, millions of people have been uprooted by massive flooding in Bangladesh. We'll show you what they're dealing with in a live report from the Bangladesh capital.
And will a new movie have you craving fast food? One company sure hopes the marriage of the big screen and small burgers work.
(COMMERCIAL BREAK)
COSTELLO: A surge in tech stocks gives Wall Street a slight boost. The Dow opens this morning at 10129, up about 12 points. The Nasdaq opens up at 1881. That's up almost 23. And the S&P 500 opens at 1100. That's up 5 points.
So, let's see if that's causing a bounce in the overseas markets.
For that, we head live to London and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.
It was up, but just slightly, and therefore today in Europe, the markets are basically treading water, flat at this hour ahead of Wall Street's open in several hours.
Now, right now the futures market is pointing to a slightly higher open on Wall Street. But I've got to tell you, it could go either way because before Wall Street opens, we're going to get the latest GDP numbers out of the U.S. for the second quarter. And the expectation is that the economy grew 3.6 percent in the second quarter at an annualized rate. That's slower than the previous quarter and down from about 4 percent growth at the end of last year.
Also, people are going to be looking at the inflation number within that report. The expectation is about 3 percent. Now, a weak TDP report, weaker than that 3.6 percent and higher inflation will send alarm bells in the markets because it could mean that the Fed has to be more aggressive than otherwise thought. And even though this quarter is expected to be a little soft, at 3.6 percent, people expect GDP growth will get back on track in the second half of the year. So that's it for GDP growth.
What else do we expect today? We're going to get another report on consumer confidence. And we'll get a report on manufacturing activity out of Chicago.
That's how it looks from here.
Back to you.
Have a great morning.
COSTELLO: Thanks, Todd, you, too.
Your news, money, weather and sports.
It's 5:15 Eastern.
Here's what's all new this morning.
Just how bad was the money management for the coalition in Iraq? A federal audit found multiple instances of over charging, gambling and other mismanagement involving millions of dollars. The audit also found $200,000 spent for police trucks. But auditors couldn't confirm if they were ever delivered.
The Senate Governmental Affairs Committee is holding its first hearings on the 9/11 Commission's report this morning. Among the commission's recommendations to be discussed, appointing a national intelligence chief.
In money news, a big new sale at Target. The company sold off Mervyn's Department Stores in a deal worth more than $1.5 billion. Mervyn's has about 257 stores in about a dozen states.
In culture, there will be a lack of talent at this year's Miss. America pageant. The pageant and ABC have decided against televising the talent portion of the competition.
In sports, Eli Manning is a rich young man. The first overall draft pick agreed to a six year, $54 million deal with the New York Giants. The deal includes a rookie record $20 million signing bonus. A $20 million signing bonus. Can you imagine getting that check all at once?
MARCIANO: Oh, but then the taxes and all that. You know, you're only walking away with about 10 bucks.
COSTELLO: Oh, yes.
MARCIANO: Hey, he's a talented kid.
God bless him.
All right, enjoy your career there, guy.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
Secretary of State Colin Powell is making a surprise visit to Baghdad this morning. He arrived there just about three hours ago for some high level talks.
CNN's John Vause is live in Baghdad with more on Powell's agenda.
Who exactly is he talking to?
JOHN VAUSE, CNN CORRESPONDENT: Good morning, Carol.
This is Colin Powell's third trip to Baghdad. And like the last two, this was a fairly closely kept secret. Right now he's meeting with some senior U.S. officials, the U.S. ambassador, John Negroponte, as well as U.S. generals. He'll also hold meetings later today with the interim Iraqi president, as well as the deputy prime minister.
No doubt one of the main topics of conversation will be the security concerns here in Iraq and also a Saudi proposal to send Arab or Muslim forces to Iraq. Colin Powell viewing that as a very positive development, but no action on that just yet.
And his visit comes a day after the interim government here has delayed a national convention. A thousand delegates were due here in Baghdad over the weekend to decide on a 100-person interim assembly to advise the interim government. It was a U.N. proposal. It was seen as one of the crucial steps toward democracy in Iraq. But a number of groups are boycotting, complaining about the way delegates have been chosen. Other groups complaining that delegates have received death threats.
But the interim government and also Colin Powell says that convention will still go ahead. It's just been delayed for two weeks -- Carol.
COSTELLO: There was also violence overnight, I understand, in Fallujah.
Can you tell us more about that?
VAUSE: Yes, Carol, just before Colin Powell touched down, a few hours, overnight, hospital officials in Fallujah tell CNN that 13 people have been killed, 14 wounded, most of them Iraqi men. According to the U.S. military, American Marines came under a fairly sustained attack from rocket propelled grenades and mortar fire, as well as machine guns and staff. They responded with artillery and tanks. And as the fighting got worse, they called in an air strike, destroying a number of buildings.
There are no U.S. casualties in this clash with the Iraqi insurgents. And Fallujah is seen by the U.S. as a hotbed, as a safe haven for militants, especially after U.S. forces withdrew from most of that city, withdrew to the outskirts back in April -- Carol.
COSTELLO: John Vause live in Baghdad this morning.
Thank you.
Kobe Bryant returns to a Colorado courtroom today. But will the recent fumbles by the prosecution cost them the case? We'll have a live report in the next half hour of DAYBREAK.
And soon cell phone numbers, your cell phone number could be at the fingertips of anyone. We'll tell you why it's a cause for concern.
Stay tuned.
(COMMERCIAL BREAK)
COSTELLO: Very, very soon your cell phone number could be available to anyone if they just dial 411. Can you believe that?
MARCIANO: That doesn't sound right.
COSTELLO: It does not sound right at all. The Cellular Telecommunications and Internet Association wants everybody's cell phone number to be listed in a directory.
MARCIANO: Who is this association, you know? Association of Telemarketers?
COSTELLO: Well, there'll be some people -- you know, that's what it's going to lead to.
MARCIANO: Probably.
COSTELLO: Well, already, though, there are some bills that are going to be introduced in Congress trying to stop this, especially the fee. You know, on your regular phone if you want to keep your number unlisted, you have to pay a fee.
MARCIANO: Right. Right. Right.
COSTELLO: Well, a congressman wants the fee to be waived if you do not want your cell phone number, you know, plugged into the system. So it's not a done deal, but it's disturbing to many people.
MARCIANO: Well, I mean you pay for calls that come in, so it doesn't make sense that your number should just be out there for anybody to call.
COSTELLO: Exactly.
MARCIANO: Right?
COSTELLO: I'm just more disturbed about the telemarketers because, you know, that's already started, I understand, from our executive producers.
MARCIANO: Yes. We're not going to mention which company, but...
COSTELLO: No. But he said he often got calls from telemarketers on his cell phone. That's never happened to me.
MARCIANO: Right. No, I would welcome -- I mean for me, I don't have a lot of friends. So when people call the house and they're looking to sell me, I chat them up a little bit and it's kind of a nice thing.
COSTELLO: Oh, I'll call you.
MARCIANO: Will you do that?
COSTELLO: I will. I'll call you. I'll call you up in the weather center.
MARCIANO: It's a lonely place up there.
COSTELLO: I know.
MARCIANO: That's for sure.
COSTELLO: Time for our DAYBREAK "Eye Openers."
It may have taken 42 million years but scientists have discovered two new species of worms off the coast of California. Take a look at this picture. These primitive worms feed off the bones of dead whales. Wow! What an exciting existence.
MARCIANO: Really?
COSTELLO: Now, they have a less exciting existence than you, Rob. Scientists say these blind...
MARCIANO: (UNINTELLIGIBLE).
COSTELLO: These are blind tube worms. They were first developed about the same time that whales first appeared on Earth.
What a weird picture that is.
MARCIANO: It just doesn't look like a tube worm to me. Not that I know what tube worms really look like, but it should look more like...
COSTELLO: It looks like a food item to me.
MARCIANO: It looks like a lot of things. Let's move on.
COSTELLO: One of the biggest names in fashion may be sidelined for quite a while. The "New York Post" reports that Donnatella Versace has checked herself into drug rehab. The paper says the 49- year-old designer is battling cocaine addiction.
Victoria's Secret has a new line of clothing. It is going to college. The pink line is meant for college aged women. According to the company, their brightly colored thongs, polka dot panties and cotton pajamas are meant to go right from the bedroom to the classroom. Oh, come on.
MARCIANO: A whole new meaning to panty raids in college.
COSTELLO: Yes. Oh, I have no comeback to that.
MARCIANO: You remember the days. Don't act like it was so long ago.
COSTELLO: I have no comeback. As Jack Cafferty would say, I have nothing to say.
MARCIANO: Just fond memories.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
(BEGIN VIDEO CLIP)
KERRY: I want to address these next words directly to President George W. Bush. In the weeks ahead, let's be optimists, not just opponents.
(END VIDEO CLIP)
COSTELLO: John Kerry issues a challenge to President Bush. But with the Republican convention right around the corner, is that challenge falling on deaf ears.
Millions are affected as deadly storms in Bangladesh leave death and despair in its wake. We'll get a live report for you straight ahead.
This is DAYBREAK for Friday.
(COMMERCIAL BREAK)
COSTELLO: The big party is over in Boston. This morning, John Kerry takes it to the road.
It is Friday, July 30.
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, a Senate committee opens a hearing on the 9/11 Commission report this morning. Among other things, senators plan to focus on the commission's recommendation to create a new national counter-terrorism center.
President Bush's handling of the economy will loom large today. The White House will release a report expected to show a record federal deficit that could approach $450 billion this year.
The U.N. Security Council votes today on a revised U.S. draft resolution on Sudan. It threatens measures if the government doesn't stop the killings by Arab militias of black Africans in the Darfur region.
In Texas, the Dallas suburb of Lancaster has been declared a local disaster area after more than a foot of rain. The weather is blamed for at least two deaths. We'll have a live report on the flooding in South Carolina in just a few minutes.
Keeping you informed, CNN, the most trusted name in news.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired July 30, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm John Kerry and I'm reporting for duty.
(END VIDEO CLIP)
CAROL COSTELLO, CNN ANCHOR: Triumph in Boston -- the Democrats crown a presidential nominee.
It is Friday, July 30.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, in six hours the Senate Governmental Affairs Committee opens its first hearing on the 9/11 Commission tomorrow. Commission members want law makers to adopt all 41 of their proposals.
Back on the campaign trail for John Kerry and John Edwards this morning. Fresh from their party's convention, the Democratic running mates will kick off a 21-state campaign just a couple of hours from now.
President Bush also hits the campaign trail this morning after a week at his ranch in Texas. The president heads back to the battleground states of Missouri, Michigan, Ohio and Pennsylvania.
Thousands of residents in flooded Greenville, South Carolina are without power this morning. A sudden rain storm inundated parts of the city, forcing some homes to be evacuated and roads to be closed.
Keeping you informed, CNN, the most trusted name in news.
Good morning -- Rob.
ROB MARCIANO, CNN CORRESPONDENT: Good morning, Carol.
A lot of rain in those parts yesterday, huh?
COSTELLO: Oh, yes.
(WEATHER REPORT) COSTELLO: The Kerry-Edwards team hits the ground running this morning after a huge night at the Democratic national convention. They'll launch their Believe In America tour with a rally in Boston about two and a half hours from now. And this afternoon, they'll hold a rally in Pennsylvania.
The promise from John Kerry is help is on the way. And cheering party supporters love it. Now a 3,500 mile campaign swing through 21 states begins for Kerry and running mate John Edwards.
Kerry laid out an ambitious plan in speaking to the Democrats last night.
Our Keith Oppenheim has highlights of Kerry's speech accepting the Democratic Party's presidential nomination.
(BEGIN VIDEO TAPE)
KERRY: I'm John Kerry and I'm reporting for duty.
KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): In his hometown, John Kerry began the speech of his political life. In an address that weaved in his personal life story, John Kerry uttered the most important formality of his campaign so far.
KERRY: With great faith in the American people, I accept your nomination for president of the United States.
OPPENHEIM: On Iraq, he advocated for international support.
KERRY: We need a president who has the credibility to bring our allies to our side and share the burden, reduce the cost to American taxpayers, reduce the risk to American soldiers.
OPPENHEIM: And he gave reassurance to those who might question whether he'd be decisive as the commander-in-chief.
KERRY: Let there be no mistake: I will never hesitate to use force when it is required. Any attack will be met with a swift and a certain response.
OPPENHEIM: Kerry gave specifics on his economic plan and sought an optimistic tone.
KERRY: For America, the hope is there. The sun is rising. Our best days are still to come.
OPPENHEIM: And in the shower of balloons and confetti, Kerry and his campaign hope his words connect not only with partisans, but with voters who are taking a close look at him for the first time.
(on camera): After attending some late night partiers, John Kerry and John Edwards will head to a swing state, Pennsylvania, for some post-convention campaigning on Friday.
In Boston, I'm Keith Oppenheim reporting. (END VIDEO TAPE)
COSTELLO: The final day of the convention included protests at the convention hall and near Kerry's home. A group calling themselves Vietnam Veterans Against John Kerry tried to throw symbolic medals and ribbons over the fence onto Kerry's property, reenacting his 1971 protest on Capitol Hill, but the Secret Service stopped them from reaching Kerry's home.
Hundreds of protesters also marched outside the Fleet Center, where the Democratic convention was held. They set fire to a two- faced effigy of Kerry and President Bush.
President Bush, by the way, also returns to the campaign trail today after keeping a low profile during the Democratic convention. Aides say he'll travel to key battleground states and open a new phase of his reelection campaign. The president will make stops today in Springfield, Missouri, Grand Rapids, Michigan and Cleveland, Ohio.
More now from CNN's Kathleen Koch.
(BEGIN VIDEO TAPE)
KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): As President Bush returns to Washington, he immediately hits the campaign trail, a spokesman saying the president will debut a retooled stump speech, with fewer attacks and more details on his vision for the next four years, all a stark contrast to his week out of the spotlight, biking and poring over the 9/11 commission report.
President Bush met three times via secure video conference with the task force he named to analyze the commission's recommendations. Wednesday, a White House spokesman says, they are moving quickly, and making, quote, "great progress," with presidential action predicted as early as tomorrow.
TRENT DUFFY, WHITE HOUSE SPOKESMAN: There are recommendations that have the potential to be put into place quickly. And the president, as I said, would waste no time in doing that. But these are very big issues.
KOCH: While President Bush followed tradition, ceding media attention to the Democrats in Boston, the vice president kept pushing the campaign's message in appearances for Republican candidates.
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: The team meeting this week in Boston would repeal many of the Bush tax cuts within their first 100 days in office. What we're hearing from the other side is the failed thinking of the past. And we're not going back.
KOCH: Mr. Bush's plan now is to go back to battleground states, covering four in a two-day campaign swing.
STUART ROTHMAN, POLITICAL ANALYST: I think he simply needs to get ready for New York, when the Republicans have to show who they are, what they are going to do, what they have done so far, and why George W. Bush needs to be reelected.
(END VIDEO TAPE)
COSTELLO: For more on the political landscape, including the president's action on the 9/11 report and the Democratic convention, log onto our Web site at cnn.com/politics.
A Senate committee will take up the issue of the 9/11 Commission's recommendations at a hearing later this morning. Next week, a number of House panels will also review the report.
But as CNN's Ed Henry reports, Congress and the commission are not exactly on the same page.
(BEGIN VIDEO TAPE)
ED HENRY, CNN CORRESPONDENT (voice-over): Like millions of Americans, Senator Susan Collins has been poring over the commission's final report.
SEN. SUSAN COLLINS (R), MAINE: I think it offers us a blueprint for reform that is invaluable.
HENRY: But the chairman of this morning's hearing is known for independence. She vows to give the recommendations heavy scrutiny.
COLLINS: We're not going to rubber stamp them. We're going to analyze them carefully.
HENRY: Republican Collins and Democrat Joe Lieberman are focusing on the two biggest proposals -- creation of a national director of intelligence and a new counter-terrorism center. But commission members think Congress and the president should adopt all 41 proposals. They want little, if any, tinkering.
RICHARD BENVENISTE, 9/11 COMMISSION: These recommendations are interlocking and interdependent. This is not a Chinese menu where you pick one from Column A and one from Column B. They all work together.
HENRY: Today's star witnesses, Tom Kean and Lee Hamilton. They pledge to hold public officials accountable. And congressional leaders are suddenly moving at a brisk pace. In addition to the Senate hearing, no fewer than six House committees will hold 15 hearings in August. One Republican aide noted that with the government warning of attacks, law makers will "look like jack asses if we don't do something."
The chairman of a previous commission on terror urges caution.
JAMES GILMORE, FORMER CHAIR OF TERROR COMMISSION: My advice would be to not be stampeded by the political situation we're in, by the election year, by the sense that if they don't do something right away that somehow they're going to be criticized, if, god forbid, there should be another attack, somehow they'll be blamed.
(END VIDEO TAPE) COSTELLO: That was CNN's Ed Henry reporting.
And CNN will begin our live coverage of the Senate committee's first hearing on the 9/11 Commission's report at 11:00 Eastern this morning.
Here are some stories making news across America this Friday.
NBA star Kobe Bryant returns to court today. On Thursday, the judge in the sexual assault case released portions of court transcripts accidentally e-mailed to several media organizations. The transcripts detail a $17,000 payment from a victim's advocacy group to Bryant's accuser. Bryant is expected back in court today for one of the final hearings before jury selection begins next month.
Did Libya plan to assassinate Saudi Arabia's crown prince? An American Muslim leader is expected in federal court this morning to answer charges related to his dealings with Libya and leader Moammar Qaddafi. Abduri Almoudi is also expected to admit to being involved in a plot last year to kill the crown prince.
Colin Powell makes a surprise stop on his latest diplomatic tour of the Middle East. We'll get you details of the secretary of state's latest stop in a live report just ahead.
Also, millions of people have been uprooted by massive flooding in Bangladesh. We'll show you what they're dealing with in a live report from the Bangladesh capital.
And will a new movie have you craving fast food? One company sure hopes the marriage of the big screen and small burgers work.
(COMMERCIAL BREAK)
COSTELLO: A surge in tech stocks gives Wall Street a slight boost. The Dow opens this morning at 10129, up about 12 points. The Nasdaq opens up at 1881. That's up almost 23. And the S&P 500 opens at 1100. That's up 5 points.
So, let's see if that's causing a bounce in the overseas markets.
For that, we head live to London and Todd Benjamin -- good morning, Todd.
TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.
It was up, but just slightly, and therefore today in Europe, the markets are basically treading water, flat at this hour ahead of Wall Street's open in several hours.
Now, right now the futures market is pointing to a slightly higher open on Wall Street. But I've got to tell you, it could go either way because before Wall Street opens, we're going to get the latest GDP numbers out of the U.S. for the second quarter. And the expectation is that the economy grew 3.6 percent in the second quarter at an annualized rate. That's slower than the previous quarter and down from about 4 percent growth at the end of last year.
Also, people are going to be looking at the inflation number within that report. The expectation is about 3 percent. Now, a weak TDP report, weaker than that 3.6 percent and higher inflation will send alarm bells in the markets because it could mean that the Fed has to be more aggressive than otherwise thought. And even though this quarter is expected to be a little soft, at 3.6 percent, people expect GDP growth will get back on track in the second half of the year. So that's it for GDP growth.
What else do we expect today? We're going to get another report on consumer confidence. And we'll get a report on manufacturing activity out of Chicago.
That's how it looks from here.
Back to you.
Have a great morning.
COSTELLO: Thanks, Todd, you, too.
Your news, money, weather and sports.
It's 5:15 Eastern.
Here's what's all new this morning.
Just how bad was the money management for the coalition in Iraq? A federal audit found multiple instances of over charging, gambling and other mismanagement involving millions of dollars. The audit also found $200,000 spent for police trucks. But auditors couldn't confirm if they were ever delivered.
The Senate Governmental Affairs Committee is holding its first hearings on the 9/11 Commission's report this morning. Among the commission's recommendations to be discussed, appointing a national intelligence chief.
In money news, a big new sale at Target. The company sold off Mervyn's Department Stores in a deal worth more than $1.5 billion. Mervyn's has about 257 stores in about a dozen states.
In culture, there will be a lack of talent at this year's Miss. America pageant. The pageant and ABC have decided against televising the talent portion of the competition.
In sports, Eli Manning is a rich young man. The first overall draft pick agreed to a six year, $54 million deal with the New York Giants. The deal includes a rookie record $20 million signing bonus. A $20 million signing bonus. Can you imagine getting that check all at once?
MARCIANO: Oh, but then the taxes and all that. You know, you're only walking away with about 10 bucks.
COSTELLO: Oh, yes.
MARCIANO: Hey, he's a talented kid.
God bless him.
All right, enjoy your career there, guy.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
Secretary of State Colin Powell is making a surprise visit to Baghdad this morning. He arrived there just about three hours ago for some high level talks.
CNN's John Vause is live in Baghdad with more on Powell's agenda.
Who exactly is he talking to?
JOHN VAUSE, CNN CORRESPONDENT: Good morning, Carol.
This is Colin Powell's third trip to Baghdad. And like the last two, this was a fairly closely kept secret. Right now he's meeting with some senior U.S. officials, the U.S. ambassador, John Negroponte, as well as U.S. generals. He'll also hold meetings later today with the interim Iraqi president, as well as the deputy prime minister.
No doubt one of the main topics of conversation will be the security concerns here in Iraq and also a Saudi proposal to send Arab or Muslim forces to Iraq. Colin Powell viewing that as a very positive development, but no action on that just yet.
And his visit comes a day after the interim government here has delayed a national convention. A thousand delegates were due here in Baghdad over the weekend to decide on a 100-person interim assembly to advise the interim government. It was a U.N. proposal. It was seen as one of the crucial steps toward democracy in Iraq. But a number of groups are boycotting, complaining about the way delegates have been chosen. Other groups complaining that delegates have received death threats.
But the interim government and also Colin Powell says that convention will still go ahead. It's just been delayed for two weeks -- Carol.
COSTELLO: There was also violence overnight, I understand, in Fallujah.
Can you tell us more about that?
VAUSE: Yes, Carol, just before Colin Powell touched down, a few hours, overnight, hospital officials in Fallujah tell CNN that 13 people have been killed, 14 wounded, most of them Iraqi men. According to the U.S. military, American Marines came under a fairly sustained attack from rocket propelled grenades and mortar fire, as well as machine guns and staff. They responded with artillery and tanks. And as the fighting got worse, they called in an air strike, destroying a number of buildings.
There are no U.S. casualties in this clash with the Iraqi insurgents. And Fallujah is seen by the U.S. as a hotbed, as a safe haven for militants, especially after U.S. forces withdrew from most of that city, withdrew to the outskirts back in April -- Carol.
COSTELLO: John Vause live in Baghdad this morning.
Thank you.
Kobe Bryant returns to a Colorado courtroom today. But will the recent fumbles by the prosecution cost them the case? We'll have a live report in the next half hour of DAYBREAK.
And soon cell phone numbers, your cell phone number could be at the fingertips of anyone. We'll tell you why it's a cause for concern.
Stay tuned.
(COMMERCIAL BREAK)
COSTELLO: Very, very soon your cell phone number could be available to anyone if they just dial 411. Can you believe that?
MARCIANO: That doesn't sound right.
COSTELLO: It does not sound right at all. The Cellular Telecommunications and Internet Association wants everybody's cell phone number to be listed in a directory.
MARCIANO: Who is this association, you know? Association of Telemarketers?
COSTELLO: Well, there'll be some people -- you know, that's what it's going to lead to.
MARCIANO: Probably.
COSTELLO: Well, already, though, there are some bills that are going to be introduced in Congress trying to stop this, especially the fee. You know, on your regular phone if you want to keep your number unlisted, you have to pay a fee.
MARCIANO: Right. Right. Right.
COSTELLO: Well, a congressman wants the fee to be waived if you do not want your cell phone number, you know, plugged into the system. So it's not a done deal, but it's disturbing to many people.
MARCIANO: Well, I mean you pay for calls that come in, so it doesn't make sense that your number should just be out there for anybody to call.
COSTELLO: Exactly.
MARCIANO: Right?
COSTELLO: I'm just more disturbed about the telemarketers because, you know, that's already started, I understand, from our executive producers.
MARCIANO: Yes. We're not going to mention which company, but...
COSTELLO: No. But he said he often got calls from telemarketers on his cell phone. That's never happened to me.
MARCIANO: Right. No, I would welcome -- I mean for me, I don't have a lot of friends. So when people call the house and they're looking to sell me, I chat them up a little bit and it's kind of a nice thing.
COSTELLO: Oh, I'll call you.
MARCIANO: Will you do that?
COSTELLO: I will. I'll call you. I'll call you up in the weather center.
MARCIANO: It's a lonely place up there.
COSTELLO: I know.
MARCIANO: That's for sure.
COSTELLO: Time for our DAYBREAK "Eye Openers."
It may have taken 42 million years but scientists have discovered two new species of worms off the coast of California. Take a look at this picture. These primitive worms feed off the bones of dead whales. Wow! What an exciting existence.
MARCIANO: Really?
COSTELLO: Now, they have a less exciting existence than you, Rob. Scientists say these blind...
MARCIANO: (UNINTELLIGIBLE).
COSTELLO: These are blind tube worms. They were first developed about the same time that whales first appeared on Earth.
What a weird picture that is.
MARCIANO: It just doesn't look like a tube worm to me. Not that I know what tube worms really look like, but it should look more like...
COSTELLO: It looks like a food item to me.
MARCIANO: It looks like a lot of things. Let's move on.
COSTELLO: One of the biggest names in fashion may be sidelined for quite a while. The "New York Post" reports that Donnatella Versace has checked herself into drug rehab. The paper says the 49- year-old designer is battling cocaine addiction.
Victoria's Secret has a new line of clothing. It is going to college. The pink line is meant for college aged women. According to the company, their brightly colored thongs, polka dot panties and cotton pajamas are meant to go right from the bedroom to the classroom. Oh, come on.
MARCIANO: A whole new meaning to panty raids in college.
COSTELLO: Yes. Oh, I have no comeback to that.
MARCIANO: You remember the days. Don't act like it was so long ago.
COSTELLO: I have no comeback. As Jack Cafferty would say, I have nothing to say.
MARCIANO: Just fond memories.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
(BEGIN VIDEO CLIP)
KERRY: I want to address these next words directly to President George W. Bush. In the weeks ahead, let's be optimists, not just opponents.
(END VIDEO CLIP)
COSTELLO: John Kerry issues a challenge to President Bush. But with the Republican convention right around the corner, is that challenge falling on deaf ears.
Millions are affected as deadly storms in Bangladesh leave death and despair in its wake. We'll get a live report for you straight ahead.
This is DAYBREAK for Friday.
(COMMERCIAL BREAK)
COSTELLO: The big party is over in Boston. This morning, John Kerry takes it to the road.
It is Friday, July 30.
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, a Senate committee opens a hearing on the 9/11 Commission report this morning. Among other things, senators plan to focus on the commission's recommendation to create a new national counter-terrorism center.
President Bush's handling of the economy will loom large today. The White House will release a report expected to show a record federal deficit that could approach $450 billion this year.
The U.N. Security Council votes today on a revised U.S. draft resolution on Sudan. It threatens measures if the government doesn't stop the killings by Arab militias of black Africans in the Darfur region.
In Texas, the Dallas suburb of Lancaster has been declared a local disaster area after more than a foot of rain. The weather is blamed for at least two deaths. We'll have a live report on the flooding in South Carolina in just a few minutes.
Keeping you informed, CNN, the most trusted name in news.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
