Return to Transcripts main page

CNN Live At Daybreak

Terror Threat Level Raised In NYC, Washington, D.C., Newark, NJ; Bombings At Christian Churches In Iraq

Aired August 02, 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: The warning is out. The watchwords today: Be alert, be cautious.
It is Monday, August 2. This is DAYBREAK. And good morning to you.

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

Now in the news, New York City, northern New Jersey, and the nation's capital are beginning the work week under a heightened terror threat level. Security is pumped up. The government warns that al Qaeda may be planning to strike financial institutions with car bombs.

The Federal Aviation Administration announces the number of flights to be cut at Chicago's O'Hare International Airport today. The Feds are trying to reduce flight delays and congestion at airports.

President Bush is ready to start implementing some of the 9/11 Commission's recommendations. Officials say the president could issue orders as early as today.

The first tropical storm of the Atlantic hurricane season is off the coast of the Carolinas right now and it's creeping toward land. Forecasters predict tropical storm Alex will hit North Carolina as early as tonight.

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

And Chad...

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

COSTELLO: It's been so long since I've seen you.

MYERS: I haven't seen you in so long.

COSTELLO: I'm so glad you're back. MYERS: I'm glad to be back, although it's nice to be gone, as you can admit.

COSTELLO: Yes, it is.

MYERS: Let's get to Alex here behind me. Here is the storm center itself, way off the coast here of Savannah and Charleston. And we are expecting the track of the storm to stay off the coast. Well, actually the center of this storm will not hit the coast with the current forecast. They can turn left, they can turn right, as you know.

We do see some lightning with the storm, though, this morning. There it is from Jacksonville and just south of Savannah. Not a lot of weather yet on the shore with this thing because the storm itself is going to track right along the shore.

Now, that doesn't mean we're not going to get some damage with this -- at 40 miles per hour right now, heading to maybe 65 mile per hour gusts later today into tomorrow. We're going to blow those winds onshore and they could obviously make an awful lot of erosion there all the way along the Carolina coast, all the way from Cape Hatteras right on back down to about Charleston.

We still have those tropical storm warnings. It's not a hurricane this morning. We just got the very, very latest from the hurricane center. The winds are still at 40 miles per hour this morning.

(WEATHER REPORT)

MYERS: Carol, I have some pictures of your wedding.

COSTELLO: Oh, are they decent ones?

MYERS: They are.

COSTELLO: Oh, good.

MYERS: Well, they all were.

COSTELLO: Yes.

MYERS: You should know, you were there.

COSTELLO: It was a fun time.

Thank you, Chad.

MYERS: See you soon.

COSTELLO: Let's get serious now. The government's latest terror alert will make for a tough commute this morning for people in New York and New Jersey, and Washington, for that matter. Officials have shut down the Holland Tunnel to commercial traffic into lower Manhattan.

As you know, the tunnel is a major link between New Jersey and Manhattan. It's unclear how long it'll be closed. Security is heightened across New York City, northern New Jersey and Washington this morning.

Federal officials warn that al Qaeda may be plotting attacks against the nation's financial institutions.

Our homeland security correspondent Jeanne Meserve has some disturbing specifics to tell you about regarding this threat.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): A truck going through a security check in front of the World Bank as the financial sector in New York, northern New Jersey, and Washington is moved to threat level orange. Intelligence indicates al Qaeda is targeting specific buildings.

In the capital, the International Monetary Fund and the World Bank. In northern New Jersey, Prudential Financial. In New York, Citigroup buildings and the New York Stock Exchange. And more may be named as intelligence received in the past few days is pursued and analyzed, according to officials.

TOM RIDGE, HOMELAND SECURITY SECRETARY: The quality of this intelligence, based on multiple reporting streams in multiple locations, is rarely seen. And it is alarming in both the amount and specificity of the information.

MESERVE: Senior intelligence officials characterize al Qaeda's reconnaissance information as chilling in its scope and breadth. It includes meticulous detail: whether security guards are armed, the location of security cameras, traffic patterns, and possible escape routes, shops nearby that can provide cover to get more information, building construction and what kind of explosives could do maximum damage.

It also details the configuration of parking garages, which kinds of vehicles are allowed, and when. Even the incline of garage entrances.

RIDGE: The analytical piece that is associated with this would suggest that, based on what we've gleaned so far, the preferred method of attack, or what's being suggested in the reporting, is car and truck bombs.

MESERVE: Officials say they believe al Qaeda began its reconnaissance before 9/11, but probably continues to this day. And although no time-frame for attack is mentioned, officials remain most concerned about the run-up to the November elections.

As financial facilities and institutions in Washington, New York and New Jersey, put new security in place, the Capitol Police held an emergency meeting and stepped up protection of the Capitol and members of Congress. A spokesman said, it is a small city, so a threat to one part is a threat to the whole.

(on camera): Another side of how seriously officials are taking this situation, Sunday afternoon, the Interagency Incident Management Group was activated. Its role is to manage the response should there be a terrorist attack.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE) COSTELLO: And we've got more details for you on what the government says al Qaeda plotters have been gathering information about.

Here goes: The flow of pedestrians outside one building, apparently to determine how many people could be killed in a single attack; the quality of explosive materials, whether they could get hot enough to melt the steel underpinnings of a building; specifics on building reconnaissance, how structures could be quietly observed; and the locations of police and fire stations, schools and hospitals near specific targets.

Homeland Security Secretary Tom Ridge will talk more about the threat level on CNN's "AMERICAN MORNING." You can watch him near the top of the hour. That would be, of course, 7:00 Eastern.

Federal authorities briefed John Kerry on the threat level before the government's announcement. A senior adviser to the Democratic presidential candidate released this statement, saying, "The heightened alert level reminds us of the serious continuing threat we face and that we are not as safe as we could or should be."

And former Democratic presidential hopeful Howard Dean suggests he smells a political motive in the government's decision to raise the threat level.

He talked about that on CNN's "LATE EDITION WITH WOLF BLITZER."

(BEGIN VIDEO CLIP)

DR. HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: I am concerned that every time something happens that's not good for President Bush, he plays this trump card, which is terrorism. His whole campaign is based on the notion that I can keep you safe, therefore in times of difficulty for America, stick with me.

And then, out comes Tom Ridge. It's just impossible to know how much of this is real and how much of this is politics, and I suspect there's some of both in it.

(END VIDEO CLIP)

COSTELLO: Dean's comments drew sharp criticism from Senator Joe Lieberman. He's one of Dean's ex-rivals for the Democratic presidential nomination.

Listen to this.

(BEGIN VIDEO CLIP)

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: I don't think anybody who has any fairness or is in their right mind would think that the president or the secretary of homeland security would raise an alert level and scare people for political reasons. That's outrageous.

(END VIDEO CLIP) COSTELLO: Aides to President Bush say he could be making an announcement as early as today about those 9/11 Commission recommendations. Advisers say there's still intense debate over the commission's suggestion for a new intelligence czar to run all of the nation's intelligence services.

For more on the raised threat level, including chilling information on al Qaeda's meticulous planning, log onto our Web site at cnn.com.

Iraqi officials blamed bombings targeting Christian worshippers on insurgent leader Abu Musab al-Zarqawi. Seven people were killed and more than 60 wounded in the weekend attacks.

CNN's Matthew Chance has more from the Iraqi capital.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE (voice-over): Sunday mass in Baghdad turned to carnage. The first car bomb detonated outside a crowded church in the central Karada district. Stained glass windows shattered in the streets. Sunday worshippers killed and injured together with Iraqi Muslims outside.

COL. MIKE MURRAY, U.S. ARMY: I don't know if it's a surprise. I think it is another step down for the people that are doing this. I mean, the people that were injured and the people that were -- and I'm sure they'll be killed before this is all said and done.

But these people were doing nothing but just going about their daily lives. And they were in the church for prayer when the car bomb went off.

CHANCE: Minutes later, another car bomb, another church in the same district. This time, rescue workers backed by U.S. forces struggled through a nine-foot crater to reach the casualties. Two more churches were also attacked in Baghdad in what appears to be an orchestrated assault. Christian areas of the city were in flames.

UNIDENTIFIED MALE (through translator): The car bomb crashed into the church and exploded there with many dead and injured. They are our Christian brothers and friends. This is a dangerous, criminal act.

CHANCE: And there was more to come. In the northern city of Mosul, a car bomb exploded at a church as worshippers were leaving. Christians in Iraq have long been discriminated against, even persecuted, but not like this.

(on camera): Iraq's Christian community is small, little more than 700,000 people. Many own shops selling alcohol and are seen as rich by others. And because of that, they've been targeted in the past by Islamic radicals and criminals. But the coordinated bombing of their churches, this is a new and disturbing tactic.

Matthew Chance, CNN, Baghdad. (END VIDEOTAPE)

COSTELLO: That U.S. Marine taken hostage and threatened with beheading in Iraq is back in America with his family. Corporal Wassef Ali Hassoun, who is on leave, returned to his brother's home outside of Salt Lake City Saturday and he made this brief statement.

(BEGIN VIDEO CLIP)

CPL. WASSEF ALI HASSOUN, U.S. MARINES: People who already know me, and those of you getting to know me, know that I'm proud to be a Muslim Arab-American serving with honor. Semper fi. Thank you.

(END VIDEO CLIP)

COSTELLO: Hassoun says he was held captive for 19 days. He later turned up at the home of relatives in Lebanon and it's still unclear how exactly he got there.

Here are some of the stories making news across America this Monday.

Soldiers from the reserve unit at the center of the Iraqi prisoner abuse scandal are coming home. Family members have said the unit was moved to Kuwait and could be home as early as today. Seven members of the Army's 372nd Military Police Company have been charged in the Abu Ghraib abuse scandal.

We may soon know the sexual history of Kobe Bryant's accuser. The judge in Bryant's sexual assault case is expected to release the remainder of the hearing transcripts accidentally sent out to media outlets. The accuser's sexual history was part of those hearings. The judge on Friday issued an apology to the accuser for a series of clerical mistakes that threatened her privacy.

The Scott Peterson trial resumes today. Last week, the judge refused a defense request to throw out the charges and issue a mistrial. The judge in the case also ruled that jurors can see portions of televised interviews done by Scott Peterson just after his wife went missing.

It is back to the landfill for Salt Lake City police after they received a tip from Lori Hacking's husband on her possible whereabouts. But the search will have to wait until Friday due to the lack of cadaver sniffing dogs.

CNN's Miguel Marquez has more from Salt Lake City on the new information and the questions surrounding Mark Hacking.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): The mystery surrounding the disappearance of Lori Hacking appears to be somewhat less mysterious after the Hacking and Soares families released a statement hinting that Mark Hacking had admitted to something. It was a nod for the families to ask the volunteer searchers to stop searching.

DET. DWAYNE BAIRD, SALT LAKE CITY POLICE: A member of the Hacking family came in and provided additional substantive information. This information, along with other leads, will continue to be followed up on by investigators.

MARQUEZ: Twenty-seven-year-old Lori Hacking, who is pregnant, was reported missing by her husband Mark on July 19. Several hours later, he was found naked in a hotel parking lot and taken to a local psychiatric hospital. Since then, we've learned that the Hackings life together, which appeared model, was fraught with deception.

Mark and Lori Hacking were slated to move to North Carolina, where he said he'd been accepted to medical school. The University of North Carolina Chapel Hill says it couldn't even find an application for him. Hacking also told family that he had graduated from the University of Utah. He had not.

On the day he reported his wife missing, Mark Hacking purchased a mattress. Police later seized a box spring only from the Hackings' residence.

(on camera): Police say Mark Hacking is not in police custody. He remains in a local psychiatric hospital. Police also say they will continue to search a two acre lot in the local landfill, hoping to find the clues to solve the mystery of what happened to Lori Hacking.

Miguel Marquez, CNN, Salt Lake City.

(END VIDEOTAPE)

COSTELLO: A raised terror threat level specifies global financial institutions. We'll see how that's affecting the nation's capital on this first day of the work week. We'll have that report for you in six minutes.

Fire sweeps a supermarket in Paraguay. Details on that deadly inferno 27 minutes from now.

It could be gridlock of Olympic proportions during rush hour in Athens. A report on that just 34 minutes away.

And got a little Monday morning hangover? Dr. Sanjay Gupta has some help for that if you hang with us for the next 41 minutes.

This is DAYBREAK for Monday, August 2.

(COMMERCIAL BREAK)

COSTELLO: Stocks post higher on Wall Street Friday, with all indices posting gains for the week, a first in more than a month. The Dow closed up more than 10 points, touching almost 10140. The Nasdaq up six points, at 1887. And the S&P 500 up one, at 1101.

As we've been telling you, Wall Street opens this morning amid heightened security. So let's see if that's having any effect overseas.

For that, let's head live to London and Jim Boulden -- good morning, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Good morning.

Yes, that heightened security is worrying stock markets, but also is this oil price. Now, it looks like oil has fallen a little bit this morning. It has come down from its record highs. We saw record highs for the U.S. oil markets on Friday. We saw even higher numbers this morning out of Asia.

But it is coming back a little bit. You'll see it down about a 1/2 a percent. But don't let that fool you. Oil is still extremely high. It looks like the oil price respite we had last month is firmly over. We are seeing very strong numbers, though they're coming down a little bit today in London. But I have to say, that is putting a damper very much on the stock markets.

You can see here the main markets all firmly down, especially in Germany, down over one percent.

And the CAC, as they call it, in Paris, is down over, almost a percent.

The FTSE here in London just down a little bit.

But let's investigate some of these numbers a bit further. You'll see here the banking stocks. What we have is a big play for Abbey National. It's one of Europe's biggest banks, one of the U.K.'s biggest banks. And this bank, HBOS, has said it may come in and take, and try to take over Abbey.

Now, Abbey has already agreed to a $14 billion takeover by one of the world's biggest banks out of Spain. But now everyone's saying hey, wait a minute, maybe we want to get Abbey, as well. So you see a lot of play here this morning.

Also, HSBC, a big bank out of Asia, a big bank out of Europe, and I want to tell you, they have had a 50 percent increase in the first half of their profits, up almost $9 billion just for the first half. European banks doing very well, indeed.

I just want to leave you, Euro Disney down almost 13 percent. They're saying that they're not getting enough visitors and they're going to have a significant increase in their losses for this year. So still trouble coming for that Paris theme park.

That's it -- back to you.

COSTELLO: All right, Jim Boulden, live in London. Thank you.

Your news, money, weather and sports.

It is 5:18 Eastern. Here's what's all new this morning. At least 275 people were killed during a fire at a crowded market in Paraguay. The fire, which apparently caused two large explosions, burned for about seven hours. Hundreds of people are severely injured.

In Iraq, a second American soldier has died from wounds suffered in a bomb attack near Samara. One other soldier died Sunday as a result of the roadside bomb. A third soldier was wounded.

In money news, oil prices reached an all time high due to production and distribution fears. You just heard Jim Boulden. Economic problems with Russia's number one oil company and security fears in Iraq were among the reasons for the price jump.

In culture, a huge crowd showed up in Italy to hear "The Sound of Silence." Simon and Garfunkel wrapped up the European leg of their reunion tour in front of 600,000 fans in Rome.

In sports, the good and the bad for Greg Maddux and the Cubs. Maddux failed in his bid for career win number 300, but the Cubs still managed to pull out a 6-3 win against the Philadelphia Phillies.

Good morning -- Chad.

MYERS: Good morning, Carol.

He just didn't get those hits when he was up pitching.

COSTELLO: No. He didn't pitch for long enough.

MYERS: Exactly.

Good morning, everybody.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Homeland security has raised the terror threat level to Washington for major financial institutions in Washington.

Let's get more details on that from CNN's Sean Callebs.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): A sure sign tighter security has come to the World Bank and IMF buildings in downtown Washington. The World Bank says police cars won't be a constant here. In a glass and steel building along a busy street, excuse employees who work here if they feel somewhat vulnerable.

DAMIAN MILVERTON, WORLD BANK SPOKESMAN: Well, I think anyone feels vulnerable when they hear that there is an increased threat level. It affects them here, no matter if they work in Congress or the White House or our institution here, the IMF. CALLEBS: The World Bank spokesman says he can't talk about specific security changes. There are 7,000 World Bank employees scattered around D.C. Several thousand work here.

MILVERTON: We want the staff to feel reassured that we are taking the utmost steps to ensure their safety while they're here at the bank.

UNIDENTIFIED FEMALE: This is the nation's capital and it needs to be safe somewhere and it must be here.

CALLEBS: Indeed, that is the attitude city leaders want citizens to embrace. Threat levels go up and go down. They say it will take more than a threat on financial centers to rattle people in the nation's capital.

MAYOR ANTHONY WILLIAMS, WASHINGTON: And if you're going to shop, if you're going to entertain friends, whatever you're going to do, continue to do that, because what we're protecting here is our way of life and we want that way of life to continue because that is, indeed, our strength.

CALLEBS: Along with the World Bank and IMF, D.C. police say the Federal Reserve, Bureau of Engraving and other buildings will get more attention from officers.

UNIDENTIFIED MALE: They want basically to affect everybody's life, to scare the people. But we are not. We are cautious, but not scared.

CALLEBS (on camera): Officials and financial executives are hoping for business as usual and know they will be able to better gauge reaction once rush hour kicks in, the streets are jammed and residents have had a night to sleep on the threats.

Sean Callebs, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: CNN is the network to watch for up to the minute details on the terror threat. Coming up in the next half hour of DAYBREAK, how are New Yorkers being affected by the extra precautions? We'll get the latest in a live report from the Big Apple.

But first, everything old is new again. We'll tell you how a British designer is taking technology to the extreme.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Time for our DAYBREAK "Eye Opener."

Thousands gathered near the newly restored historic Mostar Bridge in Bosnia to watch crazy people. Take a look. Oh. Divers took turns jumping into the river. The bridge dive is more than a 400-year-old tradition in the town, but that doesn't make it less dangerous.

Say hello to the bride. No, not her. It was a unique setting for one couple's wedding. There they are. They said their "I dos" underwater surrounded by sharks. The Italian couple took the plunge to celebrate shark conservation. Their nicknames are bull shark and nurse shark. We'll let you guess which is which.

(BEGIN VIDEO CLIP FROM "THE VILLAGE")

UNIDENTIFIED FEMALE: What we seem to have among us is a predator of some type.

(END VIDEO CLIP)

COSTELLO: "The Village" devoured the competition over the weekend. The horror mystery made just over $50 million in its weekend debut. "The Bourne Supremacy" fell to the number two spot, while the remake of "The Manchurian Candidate" debuted at number three.

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

The nation's capital is on alert in the face of a new terror threat. We get the latest in a live report.

And a visit to a crowded supermarket turns to chaos in Paraguay. More on that tragic story ahead.

This is DAYBREAK for Monday.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Pat Mitchell not only commands the remote as Public Broadcasting Service's president and CEO, she is also the first woman to hold that position in the organization's 35-year history. Under her leadership, PBS surpassed every other network by winning 25 Emmys in 2003, and this year has been nominated for 27 primetime Emmys.

PAT MITCHELL, PRESIDENT & CEO, PBS: My greatest asset as a businesswoman is that I approach my job as a woman. I really do believe that women lead in ways that are different than men, equal but different. I bring all of my experiences as a mother, a wife, a sister, a daughter to bear. I bring a certain perspective and insight that I think only adds to the wisdom that can go into making any decision.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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 August 2, 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: The warning is out. The watchwords today: Be alert, be cautious.
It is Monday, August 2. This is DAYBREAK. And good morning to you.

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

Now in the news, New York City, northern New Jersey, and the nation's capital are beginning the work week under a heightened terror threat level. Security is pumped up. The government warns that al Qaeda may be planning to strike financial institutions with car bombs.

The Federal Aviation Administration announces the number of flights to be cut at Chicago's O'Hare International Airport today. The Feds are trying to reduce flight delays and congestion at airports.

President Bush is ready to start implementing some of the 9/11 Commission's recommendations. Officials say the president could issue orders as early as today.

The first tropical storm of the Atlantic hurricane season is off the coast of the Carolinas right now and it's creeping toward land. Forecasters predict tropical storm Alex will hit North Carolina as early as tonight.

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

And Chad...

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

COSTELLO: It's been so long since I've seen you.

MYERS: I haven't seen you in so long.

COSTELLO: I'm so glad you're back. MYERS: I'm glad to be back, although it's nice to be gone, as you can admit.

COSTELLO: Yes, it is.

MYERS: Let's get to Alex here behind me. Here is the storm center itself, way off the coast here of Savannah and Charleston. And we are expecting the track of the storm to stay off the coast. Well, actually the center of this storm will not hit the coast with the current forecast. They can turn left, they can turn right, as you know.

We do see some lightning with the storm, though, this morning. There it is from Jacksonville and just south of Savannah. Not a lot of weather yet on the shore with this thing because the storm itself is going to track right along the shore.

Now, that doesn't mean we're not going to get some damage with this -- at 40 miles per hour right now, heading to maybe 65 mile per hour gusts later today into tomorrow. We're going to blow those winds onshore and they could obviously make an awful lot of erosion there all the way along the Carolina coast, all the way from Cape Hatteras right on back down to about Charleston.

We still have those tropical storm warnings. It's not a hurricane this morning. We just got the very, very latest from the hurricane center. The winds are still at 40 miles per hour this morning.

(WEATHER REPORT)

MYERS: Carol, I have some pictures of your wedding.

COSTELLO: Oh, are they decent ones?

MYERS: They are.

COSTELLO: Oh, good.

MYERS: Well, they all were.

COSTELLO: Yes.

MYERS: You should know, you were there.

COSTELLO: It was a fun time.

Thank you, Chad.

MYERS: See you soon.

COSTELLO: Let's get serious now. The government's latest terror alert will make for a tough commute this morning for people in New York and New Jersey, and Washington, for that matter. Officials have shut down the Holland Tunnel to commercial traffic into lower Manhattan.

As you know, the tunnel is a major link between New Jersey and Manhattan. It's unclear how long it'll be closed. Security is heightened across New York City, northern New Jersey and Washington this morning.

Federal officials warn that al Qaeda may be plotting attacks against the nation's financial institutions.

Our homeland security correspondent Jeanne Meserve has some disturbing specifics to tell you about regarding this threat.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): A truck going through a security check in front of the World Bank as the financial sector in New York, northern New Jersey, and Washington is moved to threat level orange. Intelligence indicates al Qaeda is targeting specific buildings.

In the capital, the International Monetary Fund and the World Bank. In northern New Jersey, Prudential Financial. In New York, Citigroup buildings and the New York Stock Exchange. And more may be named as intelligence received in the past few days is pursued and analyzed, according to officials.

TOM RIDGE, HOMELAND SECURITY SECRETARY: The quality of this intelligence, based on multiple reporting streams in multiple locations, is rarely seen. And it is alarming in both the amount and specificity of the information.

MESERVE: Senior intelligence officials characterize al Qaeda's reconnaissance information as chilling in its scope and breadth. It includes meticulous detail: whether security guards are armed, the location of security cameras, traffic patterns, and possible escape routes, shops nearby that can provide cover to get more information, building construction and what kind of explosives could do maximum damage.

It also details the configuration of parking garages, which kinds of vehicles are allowed, and when. Even the incline of garage entrances.

RIDGE: The analytical piece that is associated with this would suggest that, based on what we've gleaned so far, the preferred method of attack, or what's being suggested in the reporting, is car and truck bombs.

MESERVE: Officials say they believe al Qaeda began its reconnaissance before 9/11, but probably continues to this day. And although no time-frame for attack is mentioned, officials remain most concerned about the run-up to the November elections.

As financial facilities and institutions in Washington, New York and New Jersey, put new security in place, the Capitol Police held an emergency meeting and stepped up protection of the Capitol and members of Congress. A spokesman said, it is a small city, so a threat to one part is a threat to the whole.

(on camera): Another side of how seriously officials are taking this situation, Sunday afternoon, the Interagency Incident Management Group was activated. Its role is to manage the response should there be a terrorist attack.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE) COSTELLO: And we've got more details for you on what the government says al Qaeda plotters have been gathering information about.

Here goes: The flow of pedestrians outside one building, apparently to determine how many people could be killed in a single attack; the quality of explosive materials, whether they could get hot enough to melt the steel underpinnings of a building; specifics on building reconnaissance, how structures could be quietly observed; and the locations of police and fire stations, schools and hospitals near specific targets.

Homeland Security Secretary Tom Ridge will talk more about the threat level on CNN's "AMERICAN MORNING." You can watch him near the top of the hour. That would be, of course, 7:00 Eastern.

Federal authorities briefed John Kerry on the threat level before the government's announcement. A senior adviser to the Democratic presidential candidate released this statement, saying, "The heightened alert level reminds us of the serious continuing threat we face and that we are not as safe as we could or should be."

And former Democratic presidential hopeful Howard Dean suggests he smells a political motive in the government's decision to raise the threat level.

He talked about that on CNN's "LATE EDITION WITH WOLF BLITZER."

(BEGIN VIDEO CLIP)

DR. HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: I am concerned that every time something happens that's not good for President Bush, he plays this trump card, which is terrorism. His whole campaign is based on the notion that I can keep you safe, therefore in times of difficulty for America, stick with me.

And then, out comes Tom Ridge. It's just impossible to know how much of this is real and how much of this is politics, and I suspect there's some of both in it.

(END VIDEO CLIP)

COSTELLO: Dean's comments drew sharp criticism from Senator Joe Lieberman. He's one of Dean's ex-rivals for the Democratic presidential nomination.

Listen to this.

(BEGIN VIDEO CLIP)

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: I don't think anybody who has any fairness or is in their right mind would think that the president or the secretary of homeland security would raise an alert level and scare people for political reasons. That's outrageous.

(END VIDEO CLIP) COSTELLO: Aides to President Bush say he could be making an announcement as early as today about those 9/11 Commission recommendations. Advisers say there's still intense debate over the commission's suggestion for a new intelligence czar to run all of the nation's intelligence services.

For more on the raised threat level, including chilling information on al Qaeda's meticulous planning, log onto our Web site at cnn.com.

Iraqi officials blamed bombings targeting Christian worshippers on insurgent leader Abu Musab al-Zarqawi. Seven people were killed and more than 60 wounded in the weekend attacks.

CNN's Matthew Chance has more from the Iraqi capital.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE (voice-over): Sunday mass in Baghdad turned to carnage. The first car bomb detonated outside a crowded church in the central Karada district. Stained glass windows shattered in the streets. Sunday worshippers killed and injured together with Iraqi Muslims outside.

COL. MIKE MURRAY, U.S. ARMY: I don't know if it's a surprise. I think it is another step down for the people that are doing this. I mean, the people that were injured and the people that were -- and I'm sure they'll be killed before this is all said and done.

But these people were doing nothing but just going about their daily lives. And they were in the church for prayer when the car bomb went off.

CHANCE: Minutes later, another car bomb, another church in the same district. This time, rescue workers backed by U.S. forces struggled through a nine-foot crater to reach the casualties. Two more churches were also attacked in Baghdad in what appears to be an orchestrated assault. Christian areas of the city were in flames.

UNIDENTIFIED MALE (through translator): The car bomb crashed into the church and exploded there with many dead and injured. They are our Christian brothers and friends. This is a dangerous, criminal act.

CHANCE: And there was more to come. In the northern city of Mosul, a car bomb exploded at a church as worshippers were leaving. Christians in Iraq have long been discriminated against, even persecuted, but not like this.

(on camera): Iraq's Christian community is small, little more than 700,000 people. Many own shops selling alcohol and are seen as rich by others. And because of that, they've been targeted in the past by Islamic radicals and criminals. But the coordinated bombing of their churches, this is a new and disturbing tactic.

Matthew Chance, CNN, Baghdad. (END VIDEOTAPE)

COSTELLO: That U.S. Marine taken hostage and threatened with beheading in Iraq is back in America with his family. Corporal Wassef Ali Hassoun, who is on leave, returned to his brother's home outside of Salt Lake City Saturday and he made this brief statement.

(BEGIN VIDEO CLIP)

CPL. WASSEF ALI HASSOUN, U.S. MARINES: People who already know me, and those of you getting to know me, know that I'm proud to be a Muslim Arab-American serving with honor. Semper fi. Thank you.

(END VIDEO CLIP)

COSTELLO: Hassoun says he was held captive for 19 days. He later turned up at the home of relatives in Lebanon and it's still unclear how exactly he got there.

Here are some of the stories making news across America this Monday.

Soldiers from the reserve unit at the center of the Iraqi prisoner abuse scandal are coming home. Family members have said the unit was moved to Kuwait and could be home as early as today. Seven members of the Army's 372nd Military Police Company have been charged in the Abu Ghraib abuse scandal.

We may soon know the sexual history of Kobe Bryant's accuser. The judge in Bryant's sexual assault case is expected to release the remainder of the hearing transcripts accidentally sent out to media outlets. The accuser's sexual history was part of those hearings. The judge on Friday issued an apology to the accuser for a series of clerical mistakes that threatened her privacy.

The Scott Peterson trial resumes today. Last week, the judge refused a defense request to throw out the charges and issue a mistrial. The judge in the case also ruled that jurors can see portions of televised interviews done by Scott Peterson just after his wife went missing.

It is back to the landfill for Salt Lake City police after they received a tip from Lori Hacking's husband on her possible whereabouts. But the search will have to wait until Friday due to the lack of cadaver sniffing dogs.

CNN's Miguel Marquez has more from Salt Lake City on the new information and the questions surrounding Mark Hacking.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): The mystery surrounding the disappearance of Lori Hacking appears to be somewhat less mysterious after the Hacking and Soares families released a statement hinting that Mark Hacking had admitted to something. It was a nod for the families to ask the volunteer searchers to stop searching.

DET. DWAYNE BAIRD, SALT LAKE CITY POLICE: A member of the Hacking family came in and provided additional substantive information. This information, along with other leads, will continue to be followed up on by investigators.

MARQUEZ: Twenty-seven-year-old Lori Hacking, who is pregnant, was reported missing by her husband Mark on July 19. Several hours later, he was found naked in a hotel parking lot and taken to a local psychiatric hospital. Since then, we've learned that the Hackings life together, which appeared model, was fraught with deception.

Mark and Lori Hacking were slated to move to North Carolina, where he said he'd been accepted to medical school. The University of North Carolina Chapel Hill says it couldn't even find an application for him. Hacking also told family that he had graduated from the University of Utah. He had not.

On the day he reported his wife missing, Mark Hacking purchased a mattress. Police later seized a box spring only from the Hackings' residence.

(on camera): Police say Mark Hacking is not in police custody. He remains in a local psychiatric hospital. Police also say they will continue to search a two acre lot in the local landfill, hoping to find the clues to solve the mystery of what happened to Lori Hacking.

Miguel Marquez, CNN, Salt Lake City.

(END VIDEOTAPE)

COSTELLO: A raised terror threat level specifies global financial institutions. We'll see how that's affecting the nation's capital on this first day of the work week. We'll have that report for you in six minutes.

Fire sweeps a supermarket in Paraguay. Details on that deadly inferno 27 minutes from now.

It could be gridlock of Olympic proportions during rush hour in Athens. A report on that just 34 minutes away.

And got a little Monday morning hangover? Dr. Sanjay Gupta has some help for that if you hang with us for the next 41 minutes.

This is DAYBREAK for Monday, August 2.

(COMMERCIAL BREAK)

COSTELLO: Stocks post higher on Wall Street Friday, with all indices posting gains for the week, a first in more than a month. The Dow closed up more than 10 points, touching almost 10140. The Nasdaq up six points, at 1887. And the S&P 500 up one, at 1101.

As we've been telling you, Wall Street opens this morning amid heightened security. So let's see if that's having any effect overseas.

For that, let's head live to London and Jim Boulden -- good morning, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Good morning.

Yes, that heightened security is worrying stock markets, but also is this oil price. Now, it looks like oil has fallen a little bit this morning. It has come down from its record highs. We saw record highs for the U.S. oil markets on Friday. We saw even higher numbers this morning out of Asia.

But it is coming back a little bit. You'll see it down about a 1/2 a percent. But don't let that fool you. Oil is still extremely high. It looks like the oil price respite we had last month is firmly over. We are seeing very strong numbers, though they're coming down a little bit today in London. But I have to say, that is putting a damper very much on the stock markets.

You can see here the main markets all firmly down, especially in Germany, down over one percent.

And the CAC, as they call it, in Paris, is down over, almost a percent.

The FTSE here in London just down a little bit.

But let's investigate some of these numbers a bit further. You'll see here the banking stocks. What we have is a big play for Abbey National. It's one of Europe's biggest banks, one of the U.K.'s biggest banks. And this bank, HBOS, has said it may come in and take, and try to take over Abbey.

Now, Abbey has already agreed to a $14 billion takeover by one of the world's biggest banks out of Spain. But now everyone's saying hey, wait a minute, maybe we want to get Abbey, as well. So you see a lot of play here this morning.

Also, HSBC, a big bank out of Asia, a big bank out of Europe, and I want to tell you, they have had a 50 percent increase in the first half of their profits, up almost $9 billion just for the first half. European banks doing very well, indeed.

I just want to leave you, Euro Disney down almost 13 percent. They're saying that they're not getting enough visitors and they're going to have a significant increase in their losses for this year. So still trouble coming for that Paris theme park.

That's it -- back to you.

COSTELLO: All right, Jim Boulden, live in London. Thank you.

Your news, money, weather and sports.

It is 5:18 Eastern. Here's what's all new this morning. At least 275 people were killed during a fire at a crowded market in Paraguay. The fire, which apparently caused two large explosions, burned for about seven hours. Hundreds of people are severely injured.

In Iraq, a second American soldier has died from wounds suffered in a bomb attack near Samara. One other soldier died Sunday as a result of the roadside bomb. A third soldier was wounded.

In money news, oil prices reached an all time high due to production and distribution fears. You just heard Jim Boulden. Economic problems with Russia's number one oil company and security fears in Iraq were among the reasons for the price jump.

In culture, a huge crowd showed up in Italy to hear "The Sound of Silence." Simon and Garfunkel wrapped up the European leg of their reunion tour in front of 600,000 fans in Rome.

In sports, the good and the bad for Greg Maddux and the Cubs. Maddux failed in his bid for career win number 300, but the Cubs still managed to pull out a 6-3 win against the Philadelphia Phillies.

Good morning -- Chad.

MYERS: Good morning, Carol.

He just didn't get those hits when he was up pitching.

COSTELLO: No. He didn't pitch for long enough.

MYERS: Exactly.

Good morning, everybody.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Homeland security has raised the terror threat level to Washington for major financial institutions in Washington.

Let's get more details on that from CNN's Sean Callebs.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): A sure sign tighter security has come to the World Bank and IMF buildings in downtown Washington. The World Bank says police cars won't be a constant here. In a glass and steel building along a busy street, excuse employees who work here if they feel somewhat vulnerable.

DAMIAN MILVERTON, WORLD BANK SPOKESMAN: Well, I think anyone feels vulnerable when they hear that there is an increased threat level. It affects them here, no matter if they work in Congress or the White House or our institution here, the IMF. CALLEBS: The World Bank spokesman says he can't talk about specific security changes. There are 7,000 World Bank employees scattered around D.C. Several thousand work here.

MILVERTON: We want the staff to feel reassured that we are taking the utmost steps to ensure their safety while they're here at the bank.

UNIDENTIFIED FEMALE: This is the nation's capital and it needs to be safe somewhere and it must be here.

CALLEBS: Indeed, that is the attitude city leaders want citizens to embrace. Threat levels go up and go down. They say it will take more than a threat on financial centers to rattle people in the nation's capital.

MAYOR ANTHONY WILLIAMS, WASHINGTON: And if you're going to shop, if you're going to entertain friends, whatever you're going to do, continue to do that, because what we're protecting here is our way of life and we want that way of life to continue because that is, indeed, our strength.

CALLEBS: Along with the World Bank and IMF, D.C. police say the Federal Reserve, Bureau of Engraving and other buildings will get more attention from officers.

UNIDENTIFIED MALE: They want basically to affect everybody's life, to scare the people. But we are not. We are cautious, but not scared.

CALLEBS (on camera): Officials and financial executives are hoping for business as usual and know they will be able to better gauge reaction once rush hour kicks in, the streets are jammed and residents have had a night to sleep on the threats.

Sean Callebs, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: CNN is the network to watch for up to the minute details on the terror threat. Coming up in the next half hour of DAYBREAK, how are New Yorkers being affected by the extra precautions? We'll get the latest in a live report from the Big Apple.

But first, everything old is new again. We'll tell you how a British designer is taking technology to the extreme.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Time for our DAYBREAK "Eye Opener."

Thousands gathered near the newly restored historic Mostar Bridge in Bosnia to watch crazy people. Take a look. Oh. Divers took turns jumping into the river. The bridge dive is more than a 400-year-old tradition in the town, but that doesn't make it less dangerous.

Say hello to the bride. No, not her. It was a unique setting for one couple's wedding. There they are. They said their "I dos" underwater surrounded by sharks. The Italian couple took the plunge to celebrate shark conservation. Their nicknames are bull shark and nurse shark. We'll let you guess which is which.

(BEGIN VIDEO CLIP FROM "THE VILLAGE")

UNIDENTIFIED FEMALE: What we seem to have among us is a predator of some type.

(END VIDEO CLIP)

COSTELLO: "The Village" devoured the competition over the weekend. The horror mystery made just over $50 million in its weekend debut. "The Bourne Supremacy" fell to the number two spot, while the remake of "The Manchurian Candidate" debuted at number three.

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

The nation's capital is on alert in the face of a new terror threat. We get the latest in a live report.

And a visit to a crowded supermarket turns to chaos in Paraguay. More on that tragic story ahead.

This is DAYBREAK for Monday.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Pat Mitchell not only commands the remote as Public Broadcasting Service's president and CEO, she is also the first woman to hold that position in the organization's 35-year history. Under her leadership, PBS surpassed every other network by winning 25 Emmys in 2003, and this year has been nominated for 27 primetime Emmys.

PAT MITCHELL, PRESIDENT & CEO, PBS: My greatest asset as a businesswoman is that I approach my job as a woman. I really do believe that women lead in ways that are different than men, equal but different. I bring all of my experiences as a mother, a wife, a sister, a daughter to bear. I bring a certain perspective and insight that I think only adds to the wisdom that can go into making any decision.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com