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CNN Live At Daybreak

Threat Level Raised; Pakistan Connection?; Games Time; Pill for Alcoholics

Aired August 02, 2004 - 05:30   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 nation's financial heart is it the target of international terrorists?
It is Monday, August 2. This is DAYBREAK.

And good morning to you. Welcome to the second half-hour of DAYBREAK. From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

"Now in the News," Washington, New York City and northern New Jersey are on orange alert or high. The government is convinced al Qaeda is preparing to strike financial institutions in those areas with car bombs.

The Federal Aviation Administration is working to reduce flight delays and congestion at airports. Today, the Feds will announce the number of flights to be cut at Chicago's O'Hare International Airport.

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 but he is not prepared to move on the panel's main recommendation that would be the creation of a new intelligence czar.

The Carolinas are bracing for Tropical Storm Alex. The first named storm of the season is off the coast of South Carolina this morning, and Chad says it's expected to make landfall in North Carolina.

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

And, Chad, tell us more about Alex.

(WEATHER REPORT)

COSTELLO: Thank you - Chad.

CHAD MYERS, CNN METEOROLOGIST: You're welcome.

COSTELLO: There are new terror fears this morning. The financial sectors of New York, Washington and New Jersey begin the workweek on high alert. Homeland Security has raised the government's threat level for financial institutions to orange or high in Washington and New Jersey. This morning, there is heightened security in Manhattan as well. The government says intelligence indicates al Qaeda plans to use truck or car bombs but no timeframe is mentioned. Potential targets include the Citigroup Center in New York, the New York Stock Exchange and the Prudential complex in New Jersey. The International Monetary Fund and The World Bank in Washington also listed as potential targets.

Live now to the nation's capital and CNN's Bill Prasad to tell us more.

Good morning - Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.

Security is being tightened at a number of financial institutions today in the District, but those financial institutions will be open today for business. Officials say their intelligence tells them the IMF and World Bank are targets. These buildings are just blocks away from the White House. Department of Homeland Security officials say al Qaeda is taking aim at the nation's pocketbook.

(BEGIN VIDEO CLIP)

TOM RIDGE, HOMELAND SECURITY SECRETARY: Compared to previous threat reporting, these intelligence reports have provided a level of detail that is very specific. 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.

(END VIDEO CLIP)

PRASAD: U.S. capital police say there will be increased security checks of cars and trucks on Capitol Hill. Officers will go to 12 hour shifts with only one day off each week. Officials are expected to review their security procedures looking for any deficiency a terrorist might exploit.

In the meantime, city officials have raised the D.C. terror alert level mirroring the orange alert, but officials insist it's business as usual.

(BEGIN VIDEO CLIP)

MAYOR ANTHONY WILLIAMS, WASHINGTON: Go about your daily business. If you are going to work at a certain place at a certain time, continue to do that. If you are going to shop, if you're going to entertain friends, whatever you are 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.

(END VIDEO CLIP)

PRASAD: Most of the nation will remain on yellow alert, but here in D.C. the color is orange and the word is caution.

Carol, back to you.

COSTELLO: So do you see any extra security on the streets of Washington? Do you see that increased security?

PRASAD: You see a little bit more, as far as the number of police, but officials are pretty much being tight-lipped as to exactly how many more officers will be on the street. And as to exactly where, beyond the obvious, the stepped-up patrols of the financial institutions.

COSTELLO: Bill Prasad, live in D.C. this morning, thank you.

As we said earlier, Wall Street opens this morning amidst heightened security.

CNN's Ali Velshi explains how it could affect everybody's day.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN FINANCIAL NEWS CORRESPONDENT: It's business as usual, that's the word from the heads of the specific targets identified by Homeland Security Secretary Tom Ridge. And that's really going to be for workers, traders and investors to decide on Monday morning.

Market watchers say for all the talk about New Yorkers going about their daily lives, it may be easier said than done. For a city with millions of incoming commuters daily, even the relatively small restriction placed on a single bridge will slow incoming traffic to a point where it could cool commerce and ignite tempers.

And here is what it's all about. Homeland Security Secretary Tom Ridge says the government has specific information that al Qaeda operatives are targeting particular buildings, the IMF and World Bank buildings in Washington, D.C., the Prudential financial property in northern New Jersey, just across the Hudson River from Manhattan, and targets in New York, including Citigroup and the already heavily guarded New York Stock Exchange.

And as if to give visual representation to something so incomprehensible, the government raised the color coded terror alert in Washington and northern New Jersey to orange, representing a high threat of attack. New York has been on high alert since the September 11 attacks.

Building managers and security directors in the affected areas are being told to be extra vigilant with respect to vehicles, since the government appears to believe the preferred method of attack would be using a truck or car bomb. Officials are also asking workers to be more observant about their surroundings.

(END VIDEOTAPE)

COSTELLO: Homeland Security Secretary Tom Ridge will talk more about the threat level on CNN's "AMERICAN MORNING." Tune in to that beginning at 7:00 Eastern. For more on the raised threat level, including chilling information on al Qaeda's planning, log on to our Web site at cnn.com.

Want to bring in our senior international editor now, David Clinch.

You have information on where the government might have gotten that terrorist information.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Well, yes, we've been hearing since yesterday, since Secretary Ridge made this announcement, that there is a Pakistan connection to this information. And there are two parts to this announcement by Homeland Security.

One is the specifics and that's where the Pakistan connection comes in. We are being told there are strong indications that the specifics of the information about these buildings, about these locations, came as a result of arrest in Pakistan over the past few weeks.

Now initially, we were already aware of the high-profile arrest last week, but it turns out it may not have been that arrest, but a lower profile al Qaeda operative picked up in the last few weeks in Pakistan. He, according to the reports we're seeing and the information we are getting, had access to a repository of all of the specific information. He had accumulated it over a period of time.

Some of this information, some of the specifics about these buildings, which is very scary, may in fact be quite old, but that's where the second part of the warning comes in. The timeframe, the imminence is not related to that information in Pakistan but the general warning that was already existing of the possibility of attacks within the political environment of an election year.

COSTELLO: Well, just to make it really clear for our audience, so they arrest this guy in Pakistan and he leads them to this treasury trove of documents?

CLINCH: He either leads them or they get access through him to this treasure trove of documents. We're not sure if its computers.

COSTELLO: And the documents have been compiled since before September 11?

CLINCH: That's what we're hearing. Now that doesn't mean they haven't continued to gather that information, and that's what Homeland Security is making clear. They had those specifics then, they may very well be continuing it.

It's as Secretary Ridge is saying, nothing there, though, that indicates that the operation is imminent. But we're already existing in the timeframe of intelligence indicating they may attack during a political year.

So you put specifics found in Pakistan together with the already existing timeframe of the potential of an attack and you get this raised terror threat.

COSTELLO: And specifically this guy's name, Muhammad Naeem Noor Khan, according to "The New York Times."

CLINCH: Now that's a "New York Times" report, yes.

COSTELLO: And what - where exactly was he in the hierarchy, do we know?

CLINCH: Well, according to this report and others that we are hearing, not very high. But the interesting thing that it brings up is a very interesting insight into the way the al Qaeda communicates in Pakistan and beyond.

He has e-mails, he has documents that were passed in one form from inside Afghanistan and Pakistan and then other very complicated series of communications beyond Yemen, Saudi Arabia, to the United States. Very early indications that this is a great insight into the way they communicate. So, that's another part of the story that we'll be following up on.

The other thing it brings up, of course, on the international side is does it lead any more towards Osama bin Laden, the other big question? The initial indications from our sources in Pakistan is no. This is interesting stuff, but right now it doesn't get them right now a step closer to Osama bin Laden.

COSTELLO: Interesting. David Clinch, many thanks to you.

CLINCH: All right.

COSTELLO: Here are some stories making news "Across America" this morning.

Road rage landed two drivers in a Tacoma, Washington, hospital. One man was shot, the other stabbed. Police say one driver cut the other one off. Words and familiar gestures followed and then the stabbing and the gun play.

Searchers on foot, horseback and ATVs have found no sign of a nine-year-old boy in California's San Bernardino Mountains. David Gonzales disappeared from a campground full of people on Saturday. There were reports of a truck seen speeding from the area about the time he disappeared.

The strange looking creature, you're going to see it here. There it is. It roamed around Glyndon, Maryland, for two weeks before a sirloin steak was just too tempting to resist. Vets say it's a young red fox, but it sure doesn't look like one. One sure thing, the animal has a bad case of fleas and other skin irritations and scabies.

The Olympic Games less than two weeks away, and despite past criticism, the country is earning some praise for its preparations. That would be Greece. We'll have that story in five minutes.

Tiger Woods takes to the green, but the Buick Open was singing someone else's praise. We'll tally it up in our DAYBREAK "Scorecard" at 10 before the hour.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: You know cell phones, you like them when they look hi- tech and you like them when they're very small.

MYERS: Sure.

COSTELLO: But not one guy in England.

MYERS: Like this, hello, hello, hello. Hello. No one's there.

COSTELLO: I've missed you. That was so bad.

MYERS: Take a look at some of the phones here. This guy is building these things, selling them on eBay and making money at them.

COSTELLO: Yes, it's a cell phone connected to an old fashioned receiver. Look, you can carry it around like that in your pocket and look that -- look at that guy staring at him.

MYERS: He's got -- they -- he's making trimline phones. He's making the old bake light phones. Anything from the '60s and '70s seems to be a really big hit. And now all he's done is taken the receiver and connected it to a real cell phone that is in his pocket. But the stares that he gets has to be pretty great.

COSTELLO: That's just bizarre, why would people want one of those things?

MYERS: Well, they don't. You know, I love watching movies like back from the '90s, even like "Miami Vice," and they have these huge cell phones. And you can tell the age of the movie by how big the cell phone is.

COSTELLO: Yes.

MYERS: Remember you used to be able to have to carry around in a suitcase? Hello.

COSTELLO: It weighed about 400 pounds.

MYERS: That's what he's trying to do now.

COSTELLO: So if you want one, go on eBay, but...

MYERS: They're available.

COSTELLO: They're available.

Your news, money, weather and sports. It's 5:45 Eastern. Here's what's all new this morning.

Specific threats have led to a heightened alert in Washington and New York and New Jersey. Financial centers in all of those cities being treated as potential targets for terror. We'll have more on the alert and threats coming up in our next hour.

Steve Jobs says he will be back at work soon after having surgery to remove a cancerous tumor. You probably know Jobs is the founder of Apple Computers. He says the cancer was caught early enough. He expects a full recovery.

In money news, United Airlines is cutting capacity on its cross- country routes. The airline plans to use smaller planes for its New York to Los Angeles and San Francisco flights. United says it can't compete with low cost carriers on those routes.

In culture, let's hope the third time is the charm for actor Nicolas Cage. The 40-year-old got married again. This time to a former waitress, Alice Kim, who is exactly half his age. She's 20, Chad, doesn't that violate the rules?

MYERS: It does, because it's half your age plus seven, so he's seven years too young.

COSTELLO: Good luck Nicolas Cage.

MYERS: She is.

COSTELLO: In sports, Woody Williams of the Saint Louis Cardinals knocked his career win number 100 in a 6-1 victory over the San Francisco Giants. The win also gives the Cardinals the best record in baseball.

MYERS: The nice part about coming in at 3:00 in the morning is they have reruns of these games on at 3:00 a.m., and I just watched this game. They just got shelled.

COSTELLO: The Cardinals are fun to watch, aren't they?

MYERS: My gosh, they are just a great team.

COSTELLO: They are going to the World Series. That's my prediction.

MYERS: Anyway, let's take a look at this thing called Alex.

(WEATHER REPORT)

COSTELLO: Thank you, Chad.

Those are the latest headlines for you.

Let the Games begin, at least the driving games. Athens police have begun enforcing new Olympic traffic lanes. Dedicated traffic lanes were put in place to try to eliminate problems for people heading to Olympic venues. The fine for driving or illegally riding in the Olympic lane is more than $180.

The Games themselves begin in just 11 days. Athletes from as many as 86 countries already have checked into the Olympic village. We've heard plenty about the problems Athens has had to get ready for the Games, but are all the glitches finally ironed out?

For answers, let's go to Athens and CNN's Michael Holmes.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT (on camera): Well, government officials here in Athens say that they are ready. All 35 of the major sports venues are going to be up and running, although it's fair to say some shortcuts have been taken. The pool doesn't have a roof and there are still some 70,000 seats that have yet to be installed in the main stadium. But we're told it will be done.

What's not happening around town is a lot of tourism going on. We've been out and about on the streets, seen very few tourists, and many Greeks are telling us too that they were expecting a whole lot more people to be here at the Acropolis, all but deserted yesterday.

Now there is still two weeks to go, of course, and there's a hope that there's going to be an influx of tourists, although we're told that the ticket sales are still very sluggish. More than five million tickets are available, something like 2.5 million have been sold. There's a big push to get locals out to buy them.

Now locals are saying that there has been a bit of disruption today because of the traffic. New lanes that are reserved for Olympic traffic only have been instituted and that's pushing all the locals on to smaller lanes, and a bit of a choke of traffic around Athens. But anyone who has been here is going to know that that's not unusual.

Now security obviously a very big issue here in Athens. This is the biggest security operation ever mounted for an Olympic Games. One and a half billion dollars are being spent. That's 15 times the amount spent in Atlanta just eight years ago.

There's not a lot of visible security on the street. That will, of course, ramp up as the days go by. However, there is a lot of security that you don't necessarily see. Hundreds of cameras are being put up around the city to monitor what's going on. A lot of Greeks aren't happy with that. They feel a bit of big brother going on, but residents of other major cities in the world fairly used to that sort of thing.

Also, there's a blimp overhead. It's overhead all the time monitoring what's going on on the ground with cameras and the like. There's going to be some 70,000 Greek police and troops on the ground, NATO is involved, and that's not even counting the virtual mini armies that some teams are bringing here.

There's some 400 Special Forces troops with the U.S. team, we're told. Navy Seals will be patrolling the harbors where many people are staying on board luxury liners and the like. And the Israeli team is bringing their own security, Australia as well, several countries. So there's going to be a lot of coordination involved in keeping all of those people in the chain of command. That is one fear here. Meanwhile, some athletes have arrived and they are going to start trickling in over the next few days. There is not exactly a party atmosphere here, but people are hoping that's going to change.

Michael Holmes, CNN, Athens.

(END VIDEOTAPE)

COSTELLO: On August 18, one of the oldest Olympians will begin her quest for a first Olympic medal. Fifty-six-year-old grandmother of two, Annette Woodward, is part of the Australian pistol shooting team. Woodward is making a comeback to the sport. She quit shortly after finishing 20th in the 1996 Games in Atlanta to nurse her sick husband. But now she's back and shooting for gold, literally.

Pop a pill and stop the craving for alcohol. Sound too good to be true. We'll show you how a medical miracle could help alcoholics kick the habit.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: "Health Headlines" for you this morning.

Babies born a few weeks prematurely are at increased risk of health problems. The preemies have more cases of jaundice and low blood sugar. Even near-term babies are at risk. All of this from a new study. The advice to expectant mothers, do not hasten delivery.

A cloning experiment appears to show that the human body can reverse cancer. Researchers cloned mouse embryos from a melanoma skin cancer cell. They created healthy adult mice using some of the cloned cancer cells. And researchers are saying that shows malignancy is not inevitable.

And on the subject of cancer, research suggests MRI scans find nearly twice as many breast cancer tumors as mammograms do, but they cost a lot more and trigger more unneeded biopsies. So ordinary mammograms are still recommended for most women over the age of 50. However, if you have a family history of breast cancer, MRIs may be best for you.

A pill for treating alcoholism may hit store shelves by the end of this year.

More on that from CNN medical correspondent Dr. Sanjay Gupta.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN SENIOR MEDICAL CORRESPONDENT (voice-over): Pop a pill and stop the craving for alcohol. Sound too good to be true? Well, a pill approved just yesterday by the FDA may do that for millions of people who can't shake the urge to overdrink.

It's called Campral. Used in Europe and other countries for decades, Campral works differently than other alcoholism drugs like Antabuse, which makes you violently ill if you have a drink.

DR. DREW PINSKY, ADDICTION SPECIALIST: It's the first drug that we're going to have in our armamentarium that actually attacks the biology of addiction itself, actually the drive mechanisms.

GUPTA: Campral targets chemicals located in the reward circuit in the brain. Blocking those chemicals blocks the pleasurable effects of drinking. Simply put, alcoholics no longer have the cravings.

Despite the body of research to the contrary, many consider alcoholism to be a personal failure, not a disease, but that is starting to change.

PINSKY: Anyone that works with the disease will tell you that this is clearly a biological process, and it couldn't be anything further from the old notions of it being a moral weakness.

GUPTA: They will also tell you there are chemical changes in the brain associated with alcoholism, largely the result of genetics. And those changes can also be treated with drugs.

Campral, the newest on the U.S. scene, doesn't work if you're still drinking. You have to quit first, and then use the medication to stay dry. Also, the medicine doesn't work alone.

PINSKY: People must be involved in a treatment program that uses cognitive behavioral therapies, interpersonal therapies...

GUPTA: The studies show this medication will likely help alcoholics recover, and it will also remind society that alcoholism is a disease that can be treated.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: For more on this or any other health story, head to our Web site. The address, cnn.com/health.

The next of hour of DAYBREAK begins right after this break. You stay there.

(COMMERCIAL BREAK)

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Aired August 2, 2004 - 05:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The nation's financial heart is it the target of international terrorists?
It is Monday, August 2. This is DAYBREAK.

And good morning to you. Welcome to the second half-hour of DAYBREAK. From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

"Now in the News," Washington, New York City and northern New Jersey are on orange alert or high. The government is convinced al Qaeda is preparing to strike financial institutions in those areas with car bombs.

The Federal Aviation Administration is working to reduce flight delays and congestion at airports. Today, the Feds will announce the number of flights to be cut at Chicago's O'Hare International Airport.

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 but he is not prepared to move on the panel's main recommendation that would be the creation of a new intelligence czar.

The Carolinas are bracing for Tropical Storm Alex. The first named storm of the season is off the coast of South Carolina this morning, and Chad says it's expected to make landfall in North Carolina.

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

And, Chad, tell us more about Alex.

(WEATHER REPORT)

COSTELLO: Thank you - Chad.

CHAD MYERS, CNN METEOROLOGIST: You're welcome.

COSTELLO: There are new terror fears this morning. The financial sectors of New York, Washington and New Jersey begin the workweek on high alert. Homeland Security has raised the government's threat level for financial institutions to orange or high in Washington and New Jersey. This morning, there is heightened security in Manhattan as well. The government says intelligence indicates al Qaeda plans to use truck or car bombs but no timeframe is mentioned. Potential targets include the Citigroup Center in New York, the New York Stock Exchange and the Prudential complex in New Jersey. The International Monetary Fund and The World Bank in Washington also listed as potential targets.

Live now to the nation's capital and CNN's Bill Prasad to tell us more.

Good morning - Bill.

BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.

Security is being tightened at a number of financial institutions today in the District, but those financial institutions will be open today for business. Officials say their intelligence tells them the IMF and World Bank are targets. These buildings are just blocks away from the White House. Department of Homeland Security officials say al Qaeda is taking aim at the nation's pocketbook.

(BEGIN VIDEO CLIP)

TOM RIDGE, HOMELAND SECURITY SECRETARY: Compared to previous threat reporting, these intelligence reports have provided a level of detail that is very specific. 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.

(END VIDEO CLIP)

PRASAD: U.S. capital police say there will be increased security checks of cars and trucks on Capitol Hill. Officers will go to 12 hour shifts with only one day off each week. Officials are expected to review their security procedures looking for any deficiency a terrorist might exploit.

In the meantime, city officials have raised the D.C. terror alert level mirroring the orange alert, but officials insist it's business as usual.

(BEGIN VIDEO CLIP)

MAYOR ANTHONY WILLIAMS, WASHINGTON: Go about your daily business. If you are going to work at a certain place at a certain time, continue to do that. If you are going to shop, if you're going to entertain friends, whatever you are 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.

(END VIDEO CLIP)

PRASAD: Most of the nation will remain on yellow alert, but here in D.C. the color is orange and the word is caution.

Carol, back to you.

COSTELLO: So do you see any extra security on the streets of Washington? Do you see that increased security?

PRASAD: You see a little bit more, as far as the number of police, but officials are pretty much being tight-lipped as to exactly how many more officers will be on the street. And as to exactly where, beyond the obvious, the stepped-up patrols of the financial institutions.

COSTELLO: Bill Prasad, live in D.C. this morning, thank you.

As we said earlier, Wall Street opens this morning amidst heightened security.

CNN's Ali Velshi explains how it could affect everybody's day.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN FINANCIAL NEWS CORRESPONDENT: It's business as usual, that's the word from the heads of the specific targets identified by Homeland Security Secretary Tom Ridge. And that's really going to be for workers, traders and investors to decide on Monday morning.

Market watchers say for all the talk about New Yorkers going about their daily lives, it may be easier said than done. For a city with millions of incoming commuters daily, even the relatively small restriction placed on a single bridge will slow incoming traffic to a point where it could cool commerce and ignite tempers.

And here is what it's all about. Homeland Security Secretary Tom Ridge says the government has specific information that al Qaeda operatives are targeting particular buildings, the IMF and World Bank buildings in Washington, D.C., the Prudential financial property in northern New Jersey, just across the Hudson River from Manhattan, and targets in New York, including Citigroup and the already heavily guarded New York Stock Exchange.

And as if to give visual representation to something so incomprehensible, the government raised the color coded terror alert in Washington and northern New Jersey to orange, representing a high threat of attack. New York has been on high alert since the September 11 attacks.

Building managers and security directors in the affected areas are being told to be extra vigilant with respect to vehicles, since the government appears to believe the preferred method of attack would be using a truck or car bomb. Officials are also asking workers to be more observant about their surroundings.

(END VIDEOTAPE)

COSTELLO: Homeland Security Secretary Tom Ridge will talk more about the threat level on CNN's "AMERICAN MORNING." Tune in to that beginning at 7:00 Eastern. For more on the raised threat level, including chilling information on al Qaeda's planning, log on to our Web site at cnn.com.

Want to bring in our senior international editor now, David Clinch.

You have information on where the government might have gotten that terrorist information.

DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: Well, yes, we've been hearing since yesterday, since Secretary Ridge made this announcement, that there is a Pakistan connection to this information. And there are two parts to this announcement by Homeland Security.

One is the specifics and that's where the Pakistan connection comes in. We are being told there are strong indications that the specifics of the information about these buildings, about these locations, came as a result of arrest in Pakistan over the past few weeks.

Now initially, we were already aware of the high-profile arrest last week, but it turns out it may not have been that arrest, but a lower profile al Qaeda operative picked up in the last few weeks in Pakistan. He, according to the reports we're seeing and the information we are getting, had access to a repository of all of the specific information. He had accumulated it over a period of time.

Some of this information, some of the specifics about these buildings, which is very scary, may in fact be quite old, but that's where the second part of the warning comes in. The timeframe, the imminence is not related to that information in Pakistan but the general warning that was already existing of the possibility of attacks within the political environment of an election year.

COSTELLO: Well, just to make it really clear for our audience, so they arrest this guy in Pakistan and he leads them to this treasury trove of documents?

CLINCH: He either leads them or they get access through him to this treasure trove of documents. We're not sure if its computers.

COSTELLO: And the documents have been compiled since before September 11?

CLINCH: That's what we're hearing. Now that doesn't mean they haven't continued to gather that information, and that's what Homeland Security is making clear. They had those specifics then, they may very well be continuing it.

It's as Secretary Ridge is saying, nothing there, though, that indicates that the operation is imminent. But we're already existing in the timeframe of intelligence indicating they may attack during a political year.

So you put specifics found in Pakistan together with the already existing timeframe of the potential of an attack and you get this raised terror threat.

COSTELLO: And specifically this guy's name, Muhammad Naeem Noor Khan, according to "The New York Times."

CLINCH: Now that's a "New York Times" report, yes.

COSTELLO: And what - where exactly was he in the hierarchy, do we know?

CLINCH: Well, according to this report and others that we are hearing, not very high. But the interesting thing that it brings up is a very interesting insight into the way the al Qaeda communicates in Pakistan and beyond.

He has e-mails, he has documents that were passed in one form from inside Afghanistan and Pakistan and then other very complicated series of communications beyond Yemen, Saudi Arabia, to the United States. Very early indications that this is a great insight into the way they communicate. So, that's another part of the story that we'll be following up on.

The other thing it brings up, of course, on the international side is does it lead any more towards Osama bin Laden, the other big question? The initial indications from our sources in Pakistan is no. This is interesting stuff, but right now it doesn't get them right now a step closer to Osama bin Laden.

COSTELLO: Interesting. David Clinch, many thanks to you.

CLINCH: All right.

COSTELLO: Here are some stories making news "Across America" this morning.

Road rage landed two drivers in a Tacoma, Washington, hospital. One man was shot, the other stabbed. Police say one driver cut the other one off. Words and familiar gestures followed and then the stabbing and the gun play.

Searchers on foot, horseback and ATVs have found no sign of a nine-year-old boy in California's San Bernardino Mountains. David Gonzales disappeared from a campground full of people on Saturday. There were reports of a truck seen speeding from the area about the time he disappeared.

The strange looking creature, you're going to see it here. There it is. It roamed around Glyndon, Maryland, for two weeks before a sirloin steak was just too tempting to resist. Vets say it's a young red fox, but it sure doesn't look like one. One sure thing, the animal has a bad case of fleas and other skin irritations and scabies.

The Olympic Games less than two weeks away, and despite past criticism, the country is earning some praise for its preparations. That would be Greece. We'll have that story in five minutes.

Tiger Woods takes to the green, but the Buick Open was singing someone else's praise. We'll tally it up in our DAYBREAK "Scorecard" at 10 before the hour.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: You know cell phones, you like them when they look hi- tech and you like them when they're very small.

MYERS: Sure.

COSTELLO: But not one guy in England.

MYERS: Like this, hello, hello, hello. Hello. No one's there.

COSTELLO: I've missed you. That was so bad.

MYERS: Take a look at some of the phones here. This guy is building these things, selling them on eBay and making money at them.

COSTELLO: Yes, it's a cell phone connected to an old fashioned receiver. Look, you can carry it around like that in your pocket and look that -- look at that guy staring at him.

MYERS: He's got -- they -- he's making trimline phones. He's making the old bake light phones. Anything from the '60s and '70s seems to be a really big hit. And now all he's done is taken the receiver and connected it to a real cell phone that is in his pocket. But the stares that he gets has to be pretty great.

COSTELLO: That's just bizarre, why would people want one of those things?

MYERS: Well, they don't. You know, I love watching movies like back from the '90s, even like "Miami Vice," and they have these huge cell phones. And you can tell the age of the movie by how big the cell phone is.

COSTELLO: Yes.

MYERS: Remember you used to be able to have to carry around in a suitcase? Hello.

COSTELLO: It weighed about 400 pounds.

MYERS: That's what he's trying to do now.

COSTELLO: So if you want one, go on eBay, but...

MYERS: They're available.

COSTELLO: They're available.

Your news, money, weather and sports. It's 5:45 Eastern. Here's what's all new this morning.

Specific threats have led to a heightened alert in Washington and New York and New Jersey. Financial centers in all of those cities being treated as potential targets for terror. We'll have more on the alert and threats coming up in our next hour.

Steve Jobs says he will be back at work soon after having surgery to remove a cancerous tumor. You probably know Jobs is the founder of Apple Computers. He says the cancer was caught early enough. He expects a full recovery.

In money news, United Airlines is cutting capacity on its cross- country routes. The airline plans to use smaller planes for its New York to Los Angeles and San Francisco flights. United says it can't compete with low cost carriers on those routes.

In culture, let's hope the third time is the charm for actor Nicolas Cage. The 40-year-old got married again. This time to a former waitress, Alice Kim, who is exactly half his age. She's 20, Chad, doesn't that violate the rules?

MYERS: It does, because it's half your age plus seven, so he's seven years too young.

COSTELLO: Good luck Nicolas Cage.

MYERS: She is.

COSTELLO: In sports, Woody Williams of the Saint Louis Cardinals knocked his career win number 100 in a 6-1 victory over the San Francisco Giants. The win also gives the Cardinals the best record in baseball.

MYERS: The nice part about coming in at 3:00 in the morning is they have reruns of these games on at 3:00 a.m., and I just watched this game. They just got shelled.

COSTELLO: The Cardinals are fun to watch, aren't they?

MYERS: My gosh, they are just a great team.

COSTELLO: They are going to the World Series. That's my prediction.

MYERS: Anyway, let's take a look at this thing called Alex.

(WEATHER REPORT)

COSTELLO: Thank you, Chad.

Those are the latest headlines for you.

Let the Games begin, at least the driving games. Athens police have begun enforcing new Olympic traffic lanes. Dedicated traffic lanes were put in place to try to eliminate problems for people heading to Olympic venues. The fine for driving or illegally riding in the Olympic lane is more than $180.

The Games themselves begin in just 11 days. Athletes from as many as 86 countries already have checked into the Olympic village. We've heard plenty about the problems Athens has had to get ready for the Games, but are all the glitches finally ironed out?

For answers, let's go to Athens and CNN's Michael Holmes.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT (on camera): Well, government officials here in Athens say that they are ready. All 35 of the major sports venues are going to be up and running, although it's fair to say some shortcuts have been taken. The pool doesn't have a roof and there are still some 70,000 seats that have yet to be installed in the main stadium. But we're told it will be done.

What's not happening around town is a lot of tourism going on. We've been out and about on the streets, seen very few tourists, and many Greeks are telling us too that they were expecting a whole lot more people to be here at the Acropolis, all but deserted yesterday.

Now there is still two weeks to go, of course, and there's a hope that there's going to be an influx of tourists, although we're told that the ticket sales are still very sluggish. More than five million tickets are available, something like 2.5 million have been sold. There's a big push to get locals out to buy them.

Now locals are saying that there has been a bit of disruption today because of the traffic. New lanes that are reserved for Olympic traffic only have been instituted and that's pushing all the locals on to smaller lanes, and a bit of a choke of traffic around Athens. But anyone who has been here is going to know that that's not unusual.

Now security obviously a very big issue here in Athens. This is the biggest security operation ever mounted for an Olympic Games. One and a half billion dollars are being spent. That's 15 times the amount spent in Atlanta just eight years ago.

There's not a lot of visible security on the street. That will, of course, ramp up as the days go by. However, there is a lot of security that you don't necessarily see. Hundreds of cameras are being put up around the city to monitor what's going on. A lot of Greeks aren't happy with that. They feel a bit of big brother going on, but residents of other major cities in the world fairly used to that sort of thing.

Also, there's a blimp overhead. It's overhead all the time monitoring what's going on on the ground with cameras and the like. There's going to be some 70,000 Greek police and troops on the ground, NATO is involved, and that's not even counting the virtual mini armies that some teams are bringing here.

There's some 400 Special Forces troops with the U.S. team, we're told. Navy Seals will be patrolling the harbors where many people are staying on board luxury liners and the like. And the Israeli team is bringing their own security, Australia as well, several countries. So there's going to be a lot of coordination involved in keeping all of those people in the chain of command. That is one fear here. Meanwhile, some athletes have arrived and they are going to start trickling in over the next few days. There is not exactly a party atmosphere here, but people are hoping that's going to change.

Michael Holmes, CNN, Athens.

(END VIDEOTAPE)

COSTELLO: On August 18, one of the oldest Olympians will begin her quest for a first Olympic medal. Fifty-six-year-old grandmother of two, Annette Woodward, is part of the Australian pistol shooting team. Woodward is making a comeback to the sport. She quit shortly after finishing 20th in the 1996 Games in Atlanta to nurse her sick husband. But now she's back and shooting for gold, literally.

Pop a pill and stop the craving for alcohol. Sound too good to be true. We'll show you how a medical miracle could help alcoholics kick the habit.

This is DAYBREAK for Monday.

(COMMERCIAL BREAK)

COSTELLO: "Health Headlines" for you this morning.

Babies born a few weeks prematurely are at increased risk of health problems. The preemies have more cases of jaundice and low blood sugar. Even near-term babies are at risk. All of this from a new study. The advice to expectant mothers, do not hasten delivery.

A cloning experiment appears to show that the human body can reverse cancer. Researchers cloned mouse embryos from a melanoma skin cancer cell. They created healthy adult mice using some of the cloned cancer cells. And researchers are saying that shows malignancy is not inevitable.

And on the subject of cancer, research suggests MRI scans find nearly twice as many breast cancer tumors as mammograms do, but they cost a lot more and trigger more unneeded biopsies. So ordinary mammograms are still recommended for most women over the age of 50. However, if you have a family history of breast cancer, MRIs may be best for you.

A pill for treating alcoholism may hit store shelves by the end of this year.

More on that from CNN medical correspondent Dr. Sanjay Gupta.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN SENIOR MEDICAL CORRESPONDENT (voice-over): Pop a pill and stop the craving for alcohol. Sound too good to be true? Well, a pill approved just yesterday by the FDA may do that for millions of people who can't shake the urge to overdrink.

It's called Campral. Used in Europe and other countries for decades, Campral works differently than other alcoholism drugs like Antabuse, which makes you violently ill if you have a drink.

DR. DREW PINSKY, ADDICTION SPECIALIST: It's the first drug that we're going to have in our armamentarium that actually attacks the biology of addiction itself, actually the drive mechanisms.

GUPTA: Campral targets chemicals located in the reward circuit in the brain. Blocking those chemicals blocks the pleasurable effects of drinking. Simply put, alcoholics no longer have the cravings.

Despite the body of research to the contrary, many consider alcoholism to be a personal failure, not a disease, but that is starting to change.

PINSKY: Anyone that works with the disease will tell you that this is clearly a biological process, and it couldn't be anything further from the old notions of it being a moral weakness.

GUPTA: They will also tell you there are chemical changes in the brain associated with alcoholism, largely the result of genetics. And those changes can also be treated with drugs.

Campral, the newest on the U.S. scene, doesn't work if you're still drinking. You have to quit first, and then use the medication to stay dry. Also, the medicine doesn't work alone.

PINSKY: People must be involved in a treatment program that uses cognitive behavioral therapies, interpersonal therapies...

GUPTA: The studies show this medication will likely help alcoholics recover, and it will also remind society that alcoholism is a disease that can be treated.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

COSTELLO: For more on this or any other health story, head to our Web site. The address, cnn.com/health.

The next of hour of DAYBREAK begins right after this break. You stay there.

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