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CNN Live At Daybreak

Recapping Some Highlights of Last Night's Democratic Convention; Secretary of State Colin Powell's Surprise Visit to Baghdad

Aired July 30, 2004 - 06:00   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 will be a commander-in-chief who will never mislead us into war.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: John Kerry lays out his case on why he should be the next president of the United States.

It is Friday, July 30.

This is DAYBREAK.

And good Friday morning to you.

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

Now in the news, in five hours, the Senate Governmental Affairs Committee opens its first hearing on the 9/11 Commission report. Commission members want law makers to adopt all 41 of their proposals.

President Bush 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.

It's also 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 tour just about an hour from now.

Thousands of residents in flooded Greenville, South Carolina are without power this morning. A sudden rainstorm just drenched 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.

(WEATHER REPORT)

COSTELLO: It is the morning after and the two Johns, Kerry and Edwards, fresh from their party's convention, are preparing to hit the campaign trail.

So let's go live to our national correspondent, Bob Franken, in Boston -- Bob, I guess you've been thrown out of the Fleet Center.

Where are you now?

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Entirely out of the Fleet Center, along with the candidates, along the with Democrats, good riddance. No, no, no, no, no. But they are coming here to Langone Park, which is on the Charles River -- lots of history here, of course -- to begin the victory lap into the real battle.

Senators Kerry and Edwards are going to be here in a little while to get their campaign off and running.

Of course, they had a real good start last night. We had the traditional balloon drop and lots of people prancing around the stage, lots of delegates cheering wildly in the audience. You can't have a convention without that.

Of course, the real spotlight of the evening was on the speech by the presidential candidate, John Kerry, who really took it to the president, particularly over Iraq.

(BEGIN VIDEO CLIP)

KERRY: I know what we have to do in Iraq. 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. That's the right way to get the job done and bring our troops home.

(END VIDEO CLIP)

FRANKEN: And so, in the park they will continue today with the euphoria of the Democratic start, which will soon collide with the reality of a very tough campaign -- Carol.

COSTELLO: So I guess the Bush bashing has begun.

FRANKEN: It never really stopped. It was just sort of muted for a little bit. But, yes, it's going to be going on now. But don't forget the bashee can become the basher. We're told that the Bush campaign is going to also be coming out with some ads very quickly to try and make sure that the Democrats don't start feeling too good about themselves.

COSTELLO: So the predictions were correct. This is going to be a nasty campaign.

FRANKEN: Very nasty.

COSTELLO: I wanted to ask you about traffic, because I can only imagine how Logan will be this morning.

FRANKEN: I don't want to think about that. I will tell you that the traffic was pretty easy this morning about 4:00 a.m. So, you know, that was a good start, of course. But, yes, Logan Airport is not going to be probably on my list of all time favorite experiences this afternoon.

COSTELLO: No, not with 35,000 delegates trying to get home.

Bob Franken live in Boston this morning,

Thank you.

President Bush also returns to the campaign trail today after laying low during the Democratic convention. The president will travel to key battleground states. He's scheduled to stop in Springfield, Missouri; Grand Rapids, Michigan; and Cleveland, Ohio. Aides say the president will open a new phase of his reelection campaign that lays out his vision for the next four years.

One Senate committee today begins what's expected to be a flood of hearings on the 9/11 Commission's report. The hearing will look at several of the commission's recommendations, including the addition of that national intelligence chief. But at least one member of the Governmental Affairs Committee is calling for patience.

(BEGIN VIDEO CLIP)

SEN. SUSAN COLLINS, (R-ME), CHAIR GOVERNMENTAL AFFAIRS COMMITTEE: We're not going to rubber stamp them. We're going to analyze them carefully.

(END VIDEO CLIP)

COSTELLO: CNN will begin our live coverage of the Senate committee's first hearing on the 9/11 Commission's report at 11:00 a.m. Eastern this morning.

Here are some more stories making news across America this Friday.

Police have taken a break from searching a Salt Lake City landfill for clues to the disappearance of Lori Hacking. Cadaver dogs combed through the trash heap for three straight nights. Husband Mark Hacking is listed as the only person of interest in the case. The head of the state's crime lab says evidence removed from the couple's apartment could be the key to solving the case.

In Redwood City, California, the Scott Peterson murder trial will go forward. The judge denied a defense request to declare a mistrial or dismiss charges. Peterson's attorney claimed the first detective on the scene lied in his testimony. The trial resumes Monday morning.

California police have talked with a man who may be an important witness in the case of baby food tampering. Three jars contaminated with ground up castor beans were sold at an Irvine, California grocery store. The beans are a major component of the deadly poison ricin. No one got sick from the contaminated jar. Secretary of State Colin Powell is holding talks in Baghdad this morning with top U.S. and Iraqi officials. The unannounced visit comes as Powell is on a tour of Europe and the Middle East.

CNN's John Vause live in Baghdad with details. And also he has details on fresh fighting in Fallujah -- good morning.

JOHN VAUSE, CNN CORRESPONDENT: Good morning, Carol. This is Colin Powell's second -- or third visit, rather, to Baghdad. But this time he is now the highest ranking U.S. official to visit this country since sovereignty was handed back to the Iraqis a month ago. He has been holding meetings with the U.S. ambassador, John Negroponte, as well as the U.S. generals here. And he's also been meeting with the interim Iraqi president.

Now, during that meeting, Colin Powell, he reaffirmed America's commitment to establishing, the dedication and commitment, he said, to establishing a democracy here in Iraq. But on that issue of establishing democracy in Iraq, there has been something of a setback. The Iraqi interim government here delaying what was set down for a weekend convention of 1,000 delegates to gather in Baghdad to elect a 100-person interim assembly.

Now, that assembly was to advise the interim government. It was seen as a way of giving legitimacy, if you like, to the Iraqi interim government. But many people have boycotted it. Many groups have boycotted that meeting, that convention, which was to take place on the weekend. They complained about the process for choosing delegates and some groups have even said delegates have received death threats as well as been physically abused. And one group, the Iraqi Islamic Party, which is a mainstream party here in Iraq, has actually pulled out.

Now, that convention will be held. It will be held in two weeks from now. And the government here is determined to show that it will not interfere, it will not delay general elections, which are scheduled for January next year.

And as you mentioned, Carol, there has been some more fighting. Just hours before Colin Powell touched down some very intense clashes in the hotbed of Fallujah. Doctors at Fallujah Hospital tell CNN that 14 people were wounded, 13 people were killed.

Now, according to the U.S. military, Marines came under fairly heavy attack from small arms fire, as well as machine gun fire, mortar fire and RPGs. They responded with artillery and tanks. But as the fighting continued, they called in air support. There was an air strike on Fallujah. A number of buildings and homes were destroyed during that air strike.

Now, the U.S. says Fallujah is, in fact, a hotbed of militants, especially after it was handed back to Iraqi control back in April -- Carol.

COSTELLO: John Vause live in Baghdad.

Thank you.

Just when things were getting hot for Apple's iPod, a little competition tries to get a slice of the music player pie. Details at 12 past the hour.

Then, live to Eagle, Colorado for a preview of the hearing in the Kobe Bryant case. The judge makes a crucial ruling regarding evidence in that case.

This is DAYBREAK for Friday.

(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, up almost 23 points. And the S&P 500 opens at 1100. That's up, oh, just about 5 points.

Time for a little more business buzz.

Apple says RealNetworks has the ethics of a hacker. Why?

Sasha Salama has more on the story live from the Nasdaq market site.

Afraid of a little competition, are they?

SASHA SALAMA, CNN CORRESPONDENT: Well, it looks that way, Carol. In fact, let's call it a battle, is breaking out in the digital music world. And RealNetworks is taking on the goliath in the digital music world, which is Apple.

Apple dominates it. It's been called the Microsoft of music. It has the gadgets that you see right there called the iPod. You've probably seen them around because they've sold more than four million iPods in about two and a half years. And they have iTunes. They've sold more than 100 million songs off iTunes in little more than one year.

So definitely some folks in digital music are trying to take on Apple. And RealNetworks is the latest. In fact, RealNetworks, if you buy songs off of its music store on the Internet, you can now play that music on Apple's iPod. Well, guess what? Apple didn't design its iPod for that to happen and it's kind of scratching its chin, saying RealNetworks, how did this happen?

In fact, they're using stronger language at Apple, telling RealNetworks that they are adopting the tactics and ethics of a hacker to break into the iPod. Apple says it's investigating RealNetworks for its actions and we will see how all of this plays out. But it's looking like it's going to be a battle royal with RealNetworks needing to defend itself.

Basically, RealNetworks already has come out and defended itself, saying that Apple shouldn't be deciding what music people play on their iPods and therefore they say they've done nothing wrong. So we'll see how this all does play out. And it sounds pretty juicy -- Carol.

COSTELLO: It certainly does.

Sasha Salama live from the Nasdaq market site.

Thank you.

Your news, money, weather and sports.

It is 6:14 Eastern.

Here's what's all new this morning.

A top al Qaeda operative is under arrest in Pakistan. The FBI says the suspected terrorist is wanted in connection to the 1998 bombings of two American embassies in Africa. He was convicted in absentia six years ago.

Intense flooding has forced tens of millions of people from their homes throughout Bangladesh. More than 450 people have died as a result of a torrential monsoon rain. About two thirds of that country now underwater.

In money news, a big new sale at Target. The company is selling off its Mervyn's Department Stores in a deal worth more than $1.5 billion. Mervyn's has 257 stores in about a dozen states.

In culture, there will be a noticeable lack of talent at this year's Miss. America pageant. The pageant and ABC have decided against televising the talent portion of the competition. So no talent portion, but the swimsuit portion will remain.

In sports, Eli Manning is a very rich young man. The NFL's 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. $20 million all at one time -- Rob.

MARCIANO: That's a lot of money all at one time.

COSTELLO: It's a lot of cash.

MARCIANO: And he's supposed to be more talented than his brother and the Giants could use it so.

COSTELLO: Oh, the Giants are desperate for him.

MARCIANO: We'll see what happens.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

The saying goes be careful what you wish for, especially or perhaps especially when what you wish for is the White House. Political conventions leave very little to chance. They're carefully packaged to showcase a moment of glory. What comes next is far less glamorous.

Here's CNN's Bruce Morton.

(BEGIN VIDEO TAPE)

BRUCE MORTON, CNN CORRESPONDENT (voice-over): I remember Walter Mondale, who ran and lost, talking once about how hard it was, not just looking at yourself in the mirror while shaving and thinking I really am the best qualified guy in America to do this job, but the time, the weariness, the being nibbled to death by details.

There you are in Joe's Coffee Shop in Smallville, Iowa, and you've made a speech to maybe 10 people and here comes the kid from the local high school radio station and he missed the speech, but he needs a five minute exclusive interview and he's got his tape recorder, thank you, and will you do it? And you will. You have to, you reckon.

You miss your kids. Well, you talk to them on the cell phone, but they have lives. They're in school, whatever. They can't hang out on the bus, can't hang out on the plane, can't make those 4:00 a.m. baggage calls that are so much a part of your life.

And, of course, you take some time off from the road to raise money. On the phone with people you've probably never met, asking them for money, begging, what else would you call it? And there's some guy behind you, on your payroll, mind you, yelling at you, "You've got to close! You've got to close! You've got more calls to make."

(on camera): So you've done all that and you're the nominee and you've won, haven't you? What you really want now is a week on the beach. Well, what you've won, in fact, is the race to the starting line. The real race begins now, with your acceptance speech.

(voice-over): You know that, of course. You're a pro. All this long dancing through Iowa and New Hampshire -- which Carolina is this anyway -- all that was for the activists, the 10 percent of Americans who really care about this stuff. Most of the country hasn't been paying attention. They'll start now, pay more and more in the fall with the presidential debates and maybe more than half of them will bother to vote.

It's started, finally. Let the game begin.

Bruce Morton, CNN, Boston.

(END VIDEO TAPE)

COSTELLO: Fierce flooding in Texas leaves at least one dead. Later, we'll take you live to the Lone Star State for a look at damage left from more than 13 inches of rain in just 48 hours.

But first, live to Eagle, Colorado and the Kobe Bryant case. We'll tell you why the court is apologizing to the basketball star's accuser.

(COMMERCIAL BREAK)

COSTELLO: New York police are carrying out terrorism drills in advance of the Republican national convention.

CNN's Deborah Feyerick shows us how it's done.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT: It's one of those things that stop people mid-step -- a show of force so strong, the same, anxious question comes to everyone's mind: what the heck is going on?

UNIDENTIFIED MAN: It's a drill in preparation for the RNC next month.

FEYERICK: The drill is a new part of the NYPD's counter- terrorism strategy, a strategy Inspector Vincent DeMarino says is as much to reassure the public as it is to scare away the bad guys.

INSPECTOR VINCENT DEMARINO, NYPD: What we're asking officers to do is to go out there and interact with the public. Go out there and get out of the car and walk around, and walk up and down, and go into the buildings, talk to security managers, go into the subways, talk to people.

FEYERICK: Several times a week, police from each of the city's 76 precincts hook up with elite counter-terror units. More than 100 police flooding high target locations, a surge called CRV for critical response vehicles. On Monday, it was news organizations, including CNN's New York headquarters; before that, Wall Street.

DEMARINO: I tell you, I don't look at it as a highly vulnerable area. I look at it as a highly protected area.

FEYERICK: Every officer is specially trained in counter- terrorism. Every drill has meaning.

DEMARINO: Nothing here is guesswork. Everything that the NYPD does is based on intelligence that's fed through NYPD's own intelligence division and from other local and federal law enforcement agencies.

FEYERICK: All of it with a simple yet critical goal...

DEMARINO: The best terrorist incident is the one that never happens.

FEYERICK: Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

COSTELLO: In other stories across America this Friday, first in Washington, an American Muslim leader has struck a plea deal with federal prosecutors. Abdurrahman Alamoudi is expected to admit involvement in an alleged Libyan plot to assassinate Saudi Arabia's Crown Prince Abdullah. Counter-terrorism officials call the deal a major intelligence coup for the U.S.

The FBI has issued a vague warning to police in California and New Mexico about possible terrorist activity. The warning is not specific about particular targets or method of attacks. The FBI has passed along the threat information even though it's considered unsubstantiated and uncorroborated.

And FBI Director Robert Mueller has disclosed some information about bureau whistleblower Sybil Edmonds. She was fired two years ago after alleging rampant problems in the FBI's foreign language department. In a letter to the Senate Judiciary Committee, Mueller confirms that FBI retaliation was a contributing factor in Edmonds losing her job.

Kobe Bryant is back in court in Colorado today. He returns as the court is apologizing to Bryant's accuser for letting her name get on the Internet.

CNN's Adrian Baschuk is covering the case.

He joins us live from Eagle, Colorado -- good morning.

ADRIAN BASCHUK, CNN CORRESPONDENT: Good morning to you, Carol.

Not only has this judge in this case had to deal with the rigors of prepping for the most high profile case that he's ever presided over, but he is under the gun from even the United States Supreme Court. The high court ruled that he must make public sealed transcripts from a June rape shield hearing that his staff accidentally e-mailed to seven media organizations.

Well, late yesterday, the judge released the first batch and in today's court session, both sides will be debating over what parts to redact from the upwards of 100 or so pages remaining.

Now, consider that the judge's incident -- this was court mistake number two. Wednesday came gaffe number three, when the court again accidentally published the accuser's name and confidential information about DNA on the court Web site. The woman's attorney, John Clune, told CNN in a phone interview they are "irate" and his client does not trust the judge and court.

They've got 29 days to go to trial. Legal analysts say that given the severity of these incidents and the fact that the accuser is under intense media scrutiny and received death threats that a civil settlement is not out of the realm of possible.

However, prosecutors said earlier this week the woman and her prosecution team are moving forward to trial -- Carol.

COSTELLO: Adrian, is anyone being punished for these mistakes?

BASCHUK: Not that we know of yet. It is two different people who published both the accuser's name, accidentally sent those e-mails to the media organizations and then on Wednesday released that sealed order. It was a court reporter and then the court clerk. We haven't heard if they're losing their jobs, if they're being penalized, fined or whatnot.

The judge wouldn't undergo any sanctions from the Colorado Supreme Court until after this trial is done with.

COSTELLO: Adrian Baschuk live from Eagle, Colorado this morning.

Thank you.

Here's what's all new in the next half hour of DAYBREAK.

The Democratic delegates are going home, but things are just getting started for John Kerry and for President Bush. A preview of where the two are heading today. We'll have a live report for you.

Plus, kids reporting on kids in politics. We'll talk to some future journalists who are already making headlines.

And does the A-list cast in a highly touted remake of a 1962 classic live up to its predecessor? We'll get the scoop when we check out the weekend movies. That's later on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Both the president and the man seeking his job prepare for whirlwind campaign events across the country.

It is Friday, July 30.

This is DAYBREAK.

And good Friday morning to you.

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

Now in the news, a Senate committee opens the first congressional hearing on the 9/11 Commission report five hours from now. Among other things, senators plan to focus on the commission's recommendation to create a new national counterterrorism center.

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 - 06:00   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 will be a commander-in-chief who will never mislead us into war.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: John Kerry lays out his case on why he should be the next president of the United States.

It is Friday, July 30.

This is DAYBREAK.

And good Friday morning to you.

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

Now in the news, in five hours, the Senate Governmental Affairs Committee opens its first hearing on the 9/11 Commission report. Commission members want law makers to adopt all 41 of their proposals.

President Bush 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.

It's also 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 tour just about an hour from now.

Thousands of residents in flooded Greenville, South Carolina are without power this morning. A sudden rainstorm just drenched 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.

(WEATHER REPORT)

COSTELLO: It is the morning after and the two Johns, Kerry and Edwards, fresh from their party's convention, are preparing to hit the campaign trail.

So let's go live to our national correspondent, Bob Franken, in Boston -- Bob, I guess you've been thrown out of the Fleet Center.

Where are you now?

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Entirely out of the Fleet Center, along with the candidates, along the with Democrats, good riddance. No, no, no, no, no. But they are coming here to Langone Park, which is on the Charles River -- lots of history here, of course -- to begin the victory lap into the real battle.

Senators Kerry and Edwards are going to be here in a little while to get their campaign off and running.

Of course, they had a real good start last night. We had the traditional balloon drop and lots of people prancing around the stage, lots of delegates cheering wildly in the audience. You can't have a convention without that.

Of course, the real spotlight of the evening was on the speech by the presidential candidate, John Kerry, who really took it to the president, particularly over Iraq.

(BEGIN VIDEO CLIP)

KERRY: I know what we have to do in Iraq. 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. That's the right way to get the job done and bring our troops home.

(END VIDEO CLIP)

FRANKEN: And so, in the park they will continue today with the euphoria of the Democratic start, which will soon collide with the reality of a very tough campaign -- Carol.

COSTELLO: So I guess the Bush bashing has begun.

FRANKEN: It never really stopped. It was just sort of muted for a little bit. But, yes, it's going to be going on now. But don't forget the bashee can become the basher. We're told that the Bush campaign is going to also be coming out with some ads very quickly to try and make sure that the Democrats don't start feeling too good about themselves.

COSTELLO: So the predictions were correct. This is going to be a nasty campaign.

FRANKEN: Very nasty.

COSTELLO: I wanted to ask you about traffic, because I can only imagine how Logan will be this morning.

FRANKEN: I don't want to think about that. I will tell you that the traffic was pretty easy this morning about 4:00 a.m. So, you know, that was a good start, of course. But, yes, Logan Airport is not going to be probably on my list of all time favorite experiences this afternoon.

COSTELLO: No, not with 35,000 delegates trying to get home.

Bob Franken live in Boston this morning,

Thank you.

President Bush also returns to the campaign trail today after laying low during the Democratic convention. The president will travel to key battleground states. He's scheduled to stop in Springfield, Missouri; Grand Rapids, Michigan; and Cleveland, Ohio. Aides say the president will open a new phase of his reelection campaign that lays out his vision for the next four years.

One Senate committee today begins what's expected to be a flood of hearings on the 9/11 Commission's report. The hearing will look at several of the commission's recommendations, including the addition of that national intelligence chief. But at least one member of the Governmental Affairs Committee is calling for patience.

(BEGIN VIDEO CLIP)

SEN. SUSAN COLLINS, (R-ME), CHAIR GOVERNMENTAL AFFAIRS COMMITTEE: We're not going to rubber stamp them. We're going to analyze them carefully.

(END VIDEO CLIP)

COSTELLO: CNN will begin our live coverage of the Senate committee's first hearing on the 9/11 Commission's report at 11:00 a.m. Eastern this morning.

Here are some more stories making news across America this Friday.

Police have taken a break from searching a Salt Lake City landfill for clues to the disappearance of Lori Hacking. Cadaver dogs combed through the trash heap for three straight nights. Husband Mark Hacking is listed as the only person of interest in the case. The head of the state's crime lab says evidence removed from the couple's apartment could be the key to solving the case.

In Redwood City, California, the Scott Peterson murder trial will go forward. The judge denied a defense request to declare a mistrial or dismiss charges. Peterson's attorney claimed the first detective on the scene lied in his testimony. The trial resumes Monday morning.

California police have talked with a man who may be an important witness in the case of baby food tampering. Three jars contaminated with ground up castor beans were sold at an Irvine, California grocery store. The beans are a major component of the deadly poison ricin. No one got sick from the contaminated jar. Secretary of State Colin Powell is holding talks in Baghdad this morning with top U.S. and Iraqi officials. The unannounced visit comes as Powell is on a tour of Europe and the Middle East.

CNN's John Vause live in Baghdad with details. And also he has details on fresh fighting in Fallujah -- good morning.

JOHN VAUSE, CNN CORRESPONDENT: Good morning, Carol. This is Colin Powell's second -- or third visit, rather, to Baghdad. But this time he is now the highest ranking U.S. official to visit this country since sovereignty was handed back to the Iraqis a month ago. He has been holding meetings with the U.S. ambassador, John Negroponte, as well as the U.S. generals here. And he's also been meeting with the interim Iraqi president.

Now, during that meeting, Colin Powell, he reaffirmed America's commitment to establishing, the dedication and commitment, he said, to establishing a democracy here in Iraq. But on that issue of establishing democracy in Iraq, there has been something of a setback. The Iraqi interim government here delaying what was set down for a weekend convention of 1,000 delegates to gather in Baghdad to elect a 100-person interim assembly.

Now, that assembly was to advise the interim government. It was seen as a way of giving legitimacy, if you like, to the Iraqi interim government. But many people have boycotted it. Many groups have boycotted that meeting, that convention, which was to take place on the weekend. They complained about the process for choosing delegates and some groups have even said delegates have received death threats as well as been physically abused. And one group, the Iraqi Islamic Party, which is a mainstream party here in Iraq, has actually pulled out.

Now, that convention will be held. It will be held in two weeks from now. And the government here is determined to show that it will not interfere, it will not delay general elections, which are scheduled for January next year.

And as you mentioned, Carol, there has been some more fighting. Just hours before Colin Powell touched down some very intense clashes in the hotbed of Fallujah. Doctors at Fallujah Hospital tell CNN that 14 people were wounded, 13 people were killed.

Now, according to the U.S. military, Marines came under fairly heavy attack from small arms fire, as well as machine gun fire, mortar fire and RPGs. They responded with artillery and tanks. But as the fighting continued, they called in air support. There was an air strike on Fallujah. A number of buildings and homes were destroyed during that air strike.

Now, the U.S. says Fallujah is, in fact, a hotbed of militants, especially after it was handed back to Iraqi control back in April -- Carol.

COSTELLO: John Vause live in Baghdad.

Thank you.

Just when things were getting hot for Apple's iPod, a little competition tries to get a slice of the music player pie. Details at 12 past the hour.

Then, live to Eagle, Colorado for a preview of the hearing in the Kobe Bryant case. The judge makes a crucial ruling regarding evidence in that case.

This is DAYBREAK for Friday.

(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, up almost 23 points. And the S&P 500 opens at 1100. That's up, oh, just about 5 points.

Time for a little more business buzz.

Apple says RealNetworks has the ethics of a hacker. Why?

Sasha Salama has more on the story live from the Nasdaq market site.

Afraid of a little competition, are they?

SASHA SALAMA, CNN CORRESPONDENT: Well, it looks that way, Carol. In fact, let's call it a battle, is breaking out in the digital music world. And RealNetworks is taking on the goliath in the digital music world, which is Apple.

Apple dominates it. It's been called the Microsoft of music. It has the gadgets that you see right there called the iPod. You've probably seen them around because they've sold more than four million iPods in about two and a half years. And they have iTunes. They've sold more than 100 million songs off iTunes in little more than one year.

So definitely some folks in digital music are trying to take on Apple. And RealNetworks is the latest. In fact, RealNetworks, if you buy songs off of its music store on the Internet, you can now play that music on Apple's iPod. Well, guess what? Apple didn't design its iPod for that to happen and it's kind of scratching its chin, saying RealNetworks, how did this happen?

In fact, they're using stronger language at Apple, telling RealNetworks that they are adopting the tactics and ethics of a hacker to break into the iPod. Apple says it's investigating RealNetworks for its actions and we will see how all of this plays out. But it's looking like it's going to be a battle royal with RealNetworks needing to defend itself.

Basically, RealNetworks already has come out and defended itself, saying that Apple shouldn't be deciding what music people play on their iPods and therefore they say they've done nothing wrong. So we'll see how this all does play out. And it sounds pretty juicy -- Carol.

COSTELLO: It certainly does.

Sasha Salama live from the Nasdaq market site.

Thank you.

Your news, money, weather and sports.

It is 6:14 Eastern.

Here's what's all new this morning.

A top al Qaeda operative is under arrest in Pakistan. The FBI says the suspected terrorist is wanted in connection to the 1998 bombings of two American embassies in Africa. He was convicted in absentia six years ago.

Intense flooding has forced tens of millions of people from their homes throughout Bangladesh. More than 450 people have died as a result of a torrential monsoon rain. About two thirds of that country now underwater.

In money news, a big new sale at Target. The company is selling off its Mervyn's Department Stores in a deal worth more than $1.5 billion. Mervyn's has 257 stores in about a dozen states.

In culture, there will be a noticeable lack of talent at this year's Miss. America pageant. The pageant and ABC have decided against televising the talent portion of the competition. So no talent portion, but the swimsuit portion will remain.

In sports, Eli Manning is a very rich young man. The NFL's 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. $20 million all at one time -- Rob.

MARCIANO: That's a lot of money all at one time.

COSTELLO: It's a lot of cash.

MARCIANO: And he's supposed to be more talented than his brother and the Giants could use it so.

COSTELLO: Oh, the Giants are desperate for him.

MARCIANO: We'll see what happens.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

The saying goes be careful what you wish for, especially or perhaps especially when what you wish for is the White House. Political conventions leave very little to chance. They're carefully packaged to showcase a moment of glory. What comes next is far less glamorous.

Here's CNN's Bruce Morton.

(BEGIN VIDEO TAPE)

BRUCE MORTON, CNN CORRESPONDENT (voice-over): I remember Walter Mondale, who ran and lost, talking once about how hard it was, not just looking at yourself in the mirror while shaving and thinking I really am the best qualified guy in America to do this job, but the time, the weariness, the being nibbled to death by details.

There you are in Joe's Coffee Shop in Smallville, Iowa, and you've made a speech to maybe 10 people and here comes the kid from the local high school radio station and he missed the speech, but he needs a five minute exclusive interview and he's got his tape recorder, thank you, and will you do it? And you will. You have to, you reckon.

You miss your kids. Well, you talk to them on the cell phone, but they have lives. They're in school, whatever. They can't hang out on the bus, can't hang out on the plane, can't make those 4:00 a.m. baggage calls that are so much a part of your life.

And, of course, you take some time off from the road to raise money. On the phone with people you've probably never met, asking them for money, begging, what else would you call it? And there's some guy behind you, on your payroll, mind you, yelling at you, "You've got to close! You've got to close! You've got more calls to make."

(on camera): So you've done all that and you're the nominee and you've won, haven't you? What you really want now is a week on the beach. Well, what you've won, in fact, is the race to the starting line. The real race begins now, with your acceptance speech.

(voice-over): You know that, of course. You're a pro. All this long dancing through Iowa and New Hampshire -- which Carolina is this anyway -- all that was for the activists, the 10 percent of Americans who really care about this stuff. Most of the country hasn't been paying attention. They'll start now, pay more and more in the fall with the presidential debates and maybe more than half of them will bother to vote.

It's started, finally. Let the game begin.

Bruce Morton, CNN, Boston.

(END VIDEO TAPE)

COSTELLO: Fierce flooding in Texas leaves at least one dead. Later, we'll take you live to the Lone Star State for a look at damage left from more than 13 inches of rain in just 48 hours.

But first, live to Eagle, Colorado and the Kobe Bryant case. We'll tell you why the court is apologizing to the basketball star's accuser.

(COMMERCIAL BREAK)

COSTELLO: New York police are carrying out terrorism drills in advance of the Republican national convention.

CNN's Deborah Feyerick shows us how it's done.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT: It's one of those things that stop people mid-step -- a show of force so strong, the same, anxious question comes to everyone's mind: what the heck is going on?

UNIDENTIFIED MAN: It's a drill in preparation for the RNC next month.

FEYERICK: The drill is a new part of the NYPD's counter- terrorism strategy, a strategy Inspector Vincent DeMarino says is as much to reassure the public as it is to scare away the bad guys.

INSPECTOR VINCENT DEMARINO, NYPD: What we're asking officers to do is to go out there and interact with the public. Go out there and get out of the car and walk around, and walk up and down, and go into the buildings, talk to security managers, go into the subways, talk to people.

FEYERICK: Several times a week, police from each of the city's 76 precincts hook up with elite counter-terror units. More than 100 police flooding high target locations, a surge called CRV for critical response vehicles. On Monday, it was news organizations, including CNN's New York headquarters; before that, Wall Street.

DEMARINO: I tell you, I don't look at it as a highly vulnerable area. I look at it as a highly protected area.

FEYERICK: Every officer is specially trained in counter- terrorism. Every drill has meaning.

DEMARINO: Nothing here is guesswork. Everything that the NYPD does is based on intelligence that's fed through NYPD's own intelligence division and from other local and federal law enforcement agencies.

FEYERICK: All of it with a simple yet critical goal...

DEMARINO: The best terrorist incident is the one that never happens.

FEYERICK: Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

COSTELLO: In other stories across America this Friday, first in Washington, an American Muslim leader has struck a plea deal with federal prosecutors. Abdurrahman Alamoudi is expected to admit involvement in an alleged Libyan plot to assassinate Saudi Arabia's Crown Prince Abdullah. Counter-terrorism officials call the deal a major intelligence coup for the U.S.

The FBI has issued a vague warning to police in California and New Mexico about possible terrorist activity. The warning is not specific about particular targets or method of attacks. The FBI has passed along the threat information even though it's considered unsubstantiated and uncorroborated.

And FBI Director Robert Mueller has disclosed some information about bureau whistleblower Sybil Edmonds. She was fired two years ago after alleging rampant problems in the FBI's foreign language department. In a letter to the Senate Judiciary Committee, Mueller confirms that FBI retaliation was a contributing factor in Edmonds losing her job.

Kobe Bryant is back in court in Colorado today. He returns as the court is apologizing to Bryant's accuser for letting her name get on the Internet.

CNN's Adrian Baschuk is covering the case.

He joins us live from Eagle, Colorado -- good morning.

ADRIAN BASCHUK, CNN CORRESPONDENT: Good morning to you, Carol.

Not only has this judge in this case had to deal with the rigors of prepping for the most high profile case that he's ever presided over, but he is under the gun from even the United States Supreme Court. The high court ruled that he must make public sealed transcripts from a June rape shield hearing that his staff accidentally e-mailed to seven media organizations.

Well, late yesterday, the judge released the first batch and in today's court session, both sides will be debating over what parts to redact from the upwards of 100 or so pages remaining.

Now, consider that the judge's incident -- this was court mistake number two. Wednesday came gaffe number three, when the court again accidentally published the accuser's name and confidential information about DNA on the court Web site. The woman's attorney, John Clune, told CNN in a phone interview they are "irate" and his client does not trust the judge and court.

They've got 29 days to go to trial. Legal analysts say that given the severity of these incidents and the fact that the accuser is under intense media scrutiny and received death threats that a civil settlement is not out of the realm of possible.

However, prosecutors said earlier this week the woman and her prosecution team are moving forward to trial -- Carol.

COSTELLO: Adrian, is anyone being punished for these mistakes?

BASCHUK: Not that we know of yet. It is two different people who published both the accuser's name, accidentally sent those e-mails to the media organizations and then on Wednesday released that sealed order. It was a court reporter and then the court clerk. We haven't heard if they're losing their jobs, if they're being penalized, fined or whatnot.

The judge wouldn't undergo any sanctions from the Colorado Supreme Court until after this trial is done with.

COSTELLO: Adrian Baschuk live from Eagle, Colorado this morning.

Thank you.

Here's what's all new in the next half hour of DAYBREAK.

The Democratic delegates are going home, but things are just getting started for John Kerry and for President Bush. A preview of where the two are heading today. We'll have a live report for you.

Plus, kids reporting on kids in politics. We'll talk to some future journalists who are already making headlines.

And does the A-list cast in a highly touted remake of a 1962 classic live up to its predecessor? We'll get the scoop when we check out the weekend movies. That's later on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Both the president and the man seeking his job prepare for whirlwind campaign events across the country.

It is Friday, July 30.

This is DAYBREAK.

And good Friday morning to you.

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

Now in the news, a Senate committee opens the first congressional hearing on the 9/11 Commission report five hours from now. Among other things, senators plan to focus on the commission's recommendation to create a new national counterterrorism center.

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