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CNN Live At Daybreak
Intense Fight Between U.S. Troops, Forces Loyal to Muqtada Al- Sadr in Najaf; Significance of Arrest of 12 Suspected Al Qaeda Operatives in Britain
Aired August 05, 2004 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
It is Thursday, August 5.
First up this morning, we have been following some fierce fighting going on right now in Iraq. A U.S. helicopter has been shot down over Najaf. U.S. troops and Iraqi security forces are engaging militants loyal to Muqtada al-Sadr.
Let's head live to Baghdad now and John Vause for an update -- good morning, John. JOHN VAUSE, CNN CORRESPONDENT: Good morning, Carol.
This fighting began in Najaf about 13 hours ago now the sporadic clashes that began with an attack on the Iraqi police there. Iraqi National Guardsmen were then called in to back up the police. But when the situation escalated, that is when the governor of Najaf turned to U.S. troops for help.
Now, they went into the city and that is when the fighting has escalated ever since, and apparently getting -- reaching a peak in the last hour or so. And during that fighting, a U.S. helicopter, as you mentioned, Carol, has been shot down. It was on a medical flight, transporting an injured U.S. soldier away from Najaf when it was brought down. Two more U.S. soldiers were wounded during that crash landing.
Now, all of the crew and the wounded U.S. soldier who was on board have all been evacuated from the scene. But also during this fighting, U.S. forces called in an air strike, dropping a 500 pound bomb on an Iraqi insurgent mortar position.
Now, there has been a lot of fighting in and around the Imam Ali Mosque. And an ominous sign that this fighting could escalate in the coming hours, there are now announcements coming from the mosque that it has been damaged in the fighting. The mosque is the most holiest place for Shia Muslims, one of the holiest in all of Islam.
Now, these broadcasts, which are coming from the mosque, are now calling on the people of Najaf to rise up and fight the U.S. troops -- Carol.
COSTELLO: John Vause reporting live for us from Baghdad this morning.
Thank you.
Also in the news, Salt Lake City police and their cadaver dogs are knee deep in garbage this morning. They're again searching an area landfill, where they suspect Lori Hacking's body was dumped. Police suspect that Mark Hacking killed his wife while she slept.
Private Lynndie England will be back in front of a military court this morning for a third day of testimony. Her supervisor testified that England had no business being around prisoners at Abu Ghraib and had disobeyed orders numerous times.
Fixing O'Hare Airport on the schedule today. Discussions continue among airline and transportation officials as they try to end gridlock at the airport. Commercial flights may again be limited in an effort to end delays across the country.
Over to the Weather Center and Chad -- good morning.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: The computer file trail now leads to Britain. We told you about 13 arrests in the U.K. yesterday. Well, this morning, one of them is being called a suspected al Qaeda operative, one with ties to Mohammad Noor Khan.
More from London now and Diana Muriel.
(BEGIN VIDEO TAPE)
DIANA MURIEL, CNN CORRESPONDENT: British police are continuing their interrogation of 12 suspects arrested as part of a wide scale operation of raids that took place across the U.K. on Tuesday afternoon and Tuesday evening. Pakistani intelligence officials have told CNN that at least one of the 12 suspects held on suspicion of being involved in terrorist activities in Britain was arrested as a result of intelligence gathered from the arrest of a Pakistani computer expert.
Twenty-five-year-old Mohammad Naeem Noor Khan was arrested in Lahore on July the 13th and is described as an al Qaeda computer expert.
Pakistani officials said that his interrogation yielded information concerning a terror network in Britain and that he frequently relayed messages from Pakistan to its leader. Sources have told CNN the Noor Khan did, indeed, travel to the U.K. frequently and that he had multiple contacts with a terrorist group or network operating in Britain.
U.K. newspapers have named the man as Abu Musar Al-Hindi or Abu Eisa Al-Hindi, although these are believed to be aliases. U.K. police have declined to comment on these newspaper reports or, indeed, confirm a link between the arrests here in the U.K. and those in Pakistan. They say the British raids were part of a long planned intelligence led operation, indicating that it began before the recent Pakistani arrests.
British newspapers are also reporting that there was a plan to attack London's Heathrow Airport, Europe's busiest, and that the information regarding this proposed attack was gained from computer files recovered by the Pakistan intelligence services following the arrests of Noor Khan and Ahmed Khalfan Ghailani, who was arrested last week in Pakistan. CNN has been unable to confirm this.
British police are continuing to search residential premises at various locations around the U.K. where the arrests were made on Tuesday and they have two weeks before they must charge the 12 suspects or release them.
Diana Muriel, CNN, London.
(END VIDEO TAPE)
COSTELLO: So, as each day passes, we're learning more about a terrorist plot to topple financial icons in the United States. This morning, more new and disturbing evidence that al Qaeda could have operatives here in the United States who are ready to strike.
Bill Prasad live in Washington with that part of the story -- good morning, Bill.
BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.
The long arm of al Qaeda may be reaching out to operatives right here in America. Sources say there is evidence that the terrorist group has recently communicated with people in the U.S.
(BEGIN VIDEO TAPE)
PRASAD (voice-over): An ominous reminder that the nation's capital faces an orange alert. But U.S. officials say what you don't see may be most disturbing. Two senior U.S. government sources say there's evidence that al Qaeda operatives in Pakistan have contacted one or more people in the U.S. in the last few months.
TOM RIDGE, HOMELAND SECURITY SECRETARY: We are exploring every conceivable potential contact that any al Qaeda operative anywhere in the world might have had with anyone in the United States.
PRASAD: Two senior Pakistani intelligence officials say evidence shows alleged al Qaeda computer expert Mohammad Naeem Noor Khan contacted at least six al Qaeda operatives in the U.S. and others in Great Britain. Khan was arrested last month in Pakistan. Officials believe he is one of al Qaeda's key players.
SHEIKH RASHIO, PAKISTAN INFORMATION MINISTER: He is among those. So that's why I think his arrest is very important.
PRASAD: So important that khan's arrest may have led to the capture of 12 suspected terrorists in Britain Tuesday. Officials also say information collected last week has corroborated surveillance information that dates back several years.
RIDGE: All of the information isn't irrelevant information.
PRASAD: Officials say this is particularly important when the enemy is invisible and very patient.
(END VIDEO TAPE)
PRASAD: U.S. officials continue to scrutinize information gathered in Pakistan. So far, there is no evidence of when an attack might take place or even if al Qaeda is ready to attack -- Carol, back to you.
COSTELLO: All right, Bill Prasad reporting live for us from Washington this morning.
Thank you.
Just eight days remain until the opening ceremonies for the Summer Games in Greece. But actually it's just six days until the first event. Around 80 members of the U.S. Olympic team are already in Greece to prepare for their events. Armed American agents are on hand to provide security for those athletes. The U.S. Olympic basketball team still has some business to attend to before heading off to Greece. Team USA used a last second shot by Allen Iverson to beat the Germans in a pre-Olympic exhibition game. Yes, they barely escaped with a win against the Germans. As you know, they lost to the Italians a couple of days ago.
That brings us to our e-mail Question of the Day. Not exactly about Olympic basketball, but about the games themselves. Are you excited about the 2004 Summer Games in Athens?
Send your e-mails to daybreak@cnn.com and we're going to read some more of them on the air a little later this hour.
Her husband may be under arrest, but the search for a missing Utah woman goes on. At 15 after, where investigators hope to find clues to what is now a murder investigation.
Plus, a campaign trail miss -- close proximity for President Bush and John Kerry in the State of Iowa. At 20 past the hour, why Iowa is such a key battleground state.
But first, here's a look at what lese is making news this Thursday morning, August 5.
(COMMERCIAL BREAK)
COSTELLO: The stock market closed higher thanks to gains late in the session. This morning, the Dow opens up, oh, just over 6 points. The tech heavy Nasdaq starts the day down 3 points. The S&P 500 opens down 1 point, as well.
Time for a little business buzz now.
Delta wants its pilots to accept $1 billion in wage cuts. The pilots say now way.
Carrie Lee has more live from the Nasdaq market site.
But Delta is teetering there on the brink of bankruptcy, isn't it?
CARRIE LEE, CNN CORRESPONDENT: It has been for quite a while, Carol, so we'll see what happens with these pilot negotiations. But last week, Delta had asked its pilots to give back $1 billion in wage cuts and other concessions. Well, the union now says that that expectation far exceeds the company's economic situation and the union members are hinting they might have to take another path in the negotiations.
Delta last week asked for a billion dollars in concessions, as well as proposed changes to its pension plan. The pilots came back offering $655 million to $705 million, saying that $1 billion mark was too high. The pilots also want a stake in equity, profit sharing and corporate governance rights.
Last night, Delta sent a letter to the union saying that this is not a take it or leave it process. And so the negotiations continue.
But I can tell you, Carol, that with high fuel prices and with other challenges to the airline industry, this is a pretty tough time for Delta. So it looks like they're really going to have to need to work something out in order to stay afloat, if you will.
COSTELLO: Stay afloat -- in the air. Something like that.
LEE: You know how to get that in there, right?
COSTELLO: Exactly.
A quick look at the futures?
LEE: Futures are looking slightly positive for at least technology issues, issues that trade here at the Nasdaq. Otherwise, pretty flat. We will get a look at the weekly jobs report. New unemployment filings for last week could give us some direction. Tomorrow, we'll get the big jobs report for the month of July. A lot of people looking for that.
Goodyear Tire & Rubber reporting profits this morning. Wall Street looking for $0.08 a share on the bottom line versus a loss of $0.20 a year ago.
That's the latest -- Carol.
COSTELLO: All right, thank you.
Carrie Lee live from the NASDAQ market site.
Your news, money, weather and sports.
It is 6:14 Eastern.
Here's what's all new this morning.
Cadaver dogs used once again at a Salt Lake City landfill to search for Lori Hacking. Information from her husband Mark led police back to that landfill. He's been arrested, but not yet charged in the death of his wife.
The government says it cannot lower the price of an important AIDS drug. The price of the drug Norvir more than quintupled last year. And despite pressure from Congress, the Feds say the law doesn't allow them to force the price back down.
In money news, Chrysler is recalling more than 800,000 minivans due to a potential power steering problem. Problems in Voyagers and Caravans built between 2002 and 2004 could cause engine fires.
In culture, some never before seen family photos debut today at a special Anne Frank exhibit at the Holocaust Museum in Houston. It was 60 years ago Wednesday that Frank was discovered hiding in an Amsterdam home.
In sports, revenge for the Yankees. A day after being crushed by the As, the Yanks come from behind to steal a victory. A-Rod blasted a home run in the bottom of the eleventh to give the Yankees their league leading 67th win.
What are they, 800 games ahead of Boston now?
MYERS: Not quite. The only team with a better record, St. Louis. They have 68 wins right now.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
In just about four hours, President Bush signs a massive Department of Defense spending bill. The Senate unanimously passed the $416 billion measure. It marks an increase of $22 billion over last year's spending. It includes money to add 20,000 soldiers to the Army and a 3 1/2 percent pay raise for the troops. Aid for war torn Sudan is part of the bill, too, along with $25 billion more for operations in Afghanistan and Iraq.
President Bush is campaigning today in the Midwest. He'll hold a town hall meeting in Columbus, Ohio. Later in Michigan, the president is expected to put a positive spin on the economy. He narrowly lost that state in the 2000 election.
Democratic rival Senator John Kerry starts his day in Washington, as well. Kerry addresses the Unity Conference of minority journalists this morning and then later he'll join John Edwards in St. Louis, Missouri. Their Believe In America tour will then take them to Jefferson City and then on to Kansas City. And as one Iowa newspaper put it, it was the duel in Davenport. Both candidates for president made a stop in Iowa yesterday. They were blocks from each other. But in this extremely partisan time in American politics, will that strategy work? Will Bush or Kerry draw more votes with more visits?
Joining us by phone is Kathie Obradovich.
Did I pronounce your name right?
KATHIE OBRADOVICH, POLITICAL EDITOR, "DES MOINES REGISTER": Pretty close. It's Obradovich.
COSTELLO: OK. Obradovich. I apologize.
OBRADOVICH: That's OK.
COSTELLO: She is the political editor for the "Des Moines Register."
Welcome to DAYBREAK.
OBRADOVICH: Thanks.
COSTELLO: Al Gore won Iowa by a little more than 4,000 votes in the year 2000. Some say he won because he visited Iowa a week and a half before the election.
Do you think that's true?
OBRADOVICH: I think it certainly didn't hurt. At that point it was about turning out the base. Al Gore not only visited a week before the election, but some say his trip down the Mississippi River after his nomination was a really good strategy. He won nine out of the 10 counties along that, basically what we call the east coast of Iowa. And Bush only won one of those counties.
So that might be one reason why you saw them both in Davenport.
COSTELLO: But it's such a different election this time around. I mean people really have their minds made up.
Do you think it really will make a difference if either candidate pays Davenport, Iowa 10 more visits before November?
OBRADOVICH: Well, you're right, they do have their minds made up. And three out of four Iowans said, in our poll a couple of weeks ago, that they had already decided. Now, some can still change their minds. But what these candidates are doing is not necessarily trying to persuade undecided voters, even at this early date. What they're talking about is getting their base to turn out and making sure that they get every one of their own supporters to the polls.
And the more times they come here and energize their base, the more effective they can be at turnout. And so that's really what it's all about. COSTELLO: Well, having said that, I know there are many Catholics in Iowa and there are conservative Democrats, as well.
Which candidate is winning that vote and is it even possible in light of what you just said?
OBRADOVICH: Well, they're definitely battling for the vote and I guess we'll find out who is going to win. But conservative Democrats and, even in Iowa, in the Dubuque area, for example, a heavily Catholic area, it's still a pretty Democratic part of the state. John Kerry was there Tuesday night. And so they're both going to be working hard on the Catholic vote. But it'll be interesting to see how that comes out.
COSTELLO: It certainly will.
One last question. I know the Davenport mayor is a Republican.
Has he endorsed anyone?
OBRADOVICH: You know, I think he was at the Bush rally yesterday. So he wasn't making much of a secret of it. But I don't know if Iowans that much attention to endorsements anyway.
COSTELLO: Yes, I think that they are pretty hard-minded and probably make up their minds on their own.
OBRADOVICH: Yes.
COSTELLO: All right, thank you so much for joining us this morning.
Next on DAYBREAK, after a huge loss, the U.S. Olympic basketball team pulls off a win, just barely, though. But is anyone other than the athletes ready for these games? Well, maybe the U.S. basketball team isn't ready.
Anyway, we're asking you this question this morning -- are you excited about the 2004 Summer Games? E-mail us your thoughts, daybreak@cnn.com. We've gotten great responses so far, so keep those e-mails coming.
(COMMERCIAL BREAK)
COSTELLO: We're talking about the Summer Olympics this morning, if you're at all excited about them, because nobody is really talking about the 2004 Summer Olympic Games.
MYERS: NBC is, because they have the Games.
COSTELLO: Well, they're not even talking about it that much, though.
MYERS: To be really honest, they're not, and they're spending a lot of money over there.
COSTELLO: Oh, yes they are.
MYERS: Probably as much as Greece had to spend to get all this stuff done.
COSTELLO: Probably so. But we've been soliciting your e-mails this morning, asking you, are you excited about the 2004 Summer Olympic Games in Athens?
And we have some of your responses now.
This is from Todd in Kansas City: "It's time for the Summer Olympics already? Wow. Time flies when you don't give a damn."
MYERS: From Jim in Naples, Florida. He says: "I do care about the games, but I really want to see my son come home from Iraq."
COSTELLO: Oh, man, that breaks your heart. This is from Sarge in Granville, Ohio. He says: "Of course I'm excited about the Olympics. My one big fear is this, that the Olympics will be pushed back into the spotlight, but only at the unfortunate news of a terror attack in Athens."
MYERS: Yes. From Gary in Key West: "I remember watching the Munich Olympics. I'm fearful that something like that is going to happen. A lot of innocent people could be hurt."
COSTELLO: I have to get this one off the printer because I liked it.
MYERS: Go ahead.
"I think the Olympics are an important reminder that not everything is about money. The athlete does not do this for the sake of money" -- well, except for the basketball players, of course, because they're paid. But that is -- no place where that's from. (UNINTELLIGIBLE).
COSTELLO: But they're not paid for playing in the Olympics.
MYERS: No, not for playing in the Olympics. Right.
COSTELLO: But this e-mail goes good after that one. This is from Tom from California, from Laguna Niguel. He says: "Some may take it as unpatriotic, but I am excited about the possibility of seeing the USA basketball team get beaten. Why? As NBA professionals, they make too much money, behave like babies and thugs and don't appreciate how good they've got it."
MYERS: All right.
COSTELLO: So there you go.
We'll be right back with more on DAYBREAK.
Keep those e-mails coming. Daybreak@cnn.com.
(COMMERCIAL BREAK)
COSTELLO: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, within the last couple of hours, a U.S. helicopter transporting a wounded American was downed by small arms fire in Najaf. That's south of Baghdad.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, within the last couple of hours, a U.S. helicopter transporting a wounded American was downed by small arms fire in Najaf. That's south of Baghdad. Two other Americans were also hurt. Najaf's hospitals also have been hit by mortar fire, killing at least one worker. U.S. and Iraqi troops are battling guerrillas loyal to a Muslim cleric.
Three and a half hours from now, President Bush signs a $416 billion defense spending bill. He then leaves for two Rust Belt battleground states, Ohio and Michigan. He's got a town hall meeting in Columbus and a rally later in Saginaw.
And the president's opponent, Senator John Kerry, delivers a speech in Washington two and a half hours from now. Later, he and running mate John Edwards board a train in St. Louis for a five state campaign tour.
And Private Lynndie England will be back in front of a military court this morning for a third day of testimony. Her supervisor testified that England had no business being around prisoners at Abu Ghraib and had disobeyed orders numerous times.
To the Weather Center and Chad.
MYERS: Good morning, Carol.
(WEATHER REPORT)
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 5, 2004 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
It is Thursday, August 5.
First up this morning, we have been following some fierce fighting going on right now in Iraq. A U.S. helicopter has been shot down over Najaf. U.S. troops and Iraqi security forces are engaging militants loyal to Muqtada al-Sadr.
Let's head live to Baghdad now and John Vause for an update -- good morning, John. JOHN VAUSE, CNN CORRESPONDENT: Good morning, Carol.
This fighting began in Najaf about 13 hours ago now the sporadic clashes that began with an attack on the Iraqi police there. Iraqi National Guardsmen were then called in to back up the police. But when the situation escalated, that is when the governor of Najaf turned to U.S. troops for help.
Now, they went into the city and that is when the fighting has escalated ever since, and apparently getting -- reaching a peak in the last hour or so. And during that fighting, a U.S. helicopter, as you mentioned, Carol, has been shot down. It was on a medical flight, transporting an injured U.S. soldier away from Najaf when it was brought down. Two more U.S. soldiers were wounded during that crash landing.
Now, all of the crew and the wounded U.S. soldier who was on board have all been evacuated from the scene. But also during this fighting, U.S. forces called in an air strike, dropping a 500 pound bomb on an Iraqi insurgent mortar position.
Now, there has been a lot of fighting in and around the Imam Ali Mosque. And an ominous sign that this fighting could escalate in the coming hours, there are now announcements coming from the mosque that it has been damaged in the fighting. The mosque is the most holiest place for Shia Muslims, one of the holiest in all of Islam.
Now, these broadcasts, which are coming from the mosque, are now calling on the people of Najaf to rise up and fight the U.S. troops -- Carol.
COSTELLO: John Vause reporting live for us from Baghdad this morning.
Thank you.
Also in the news, Salt Lake City police and their cadaver dogs are knee deep in garbage this morning. They're again searching an area landfill, where they suspect Lori Hacking's body was dumped. Police suspect that Mark Hacking killed his wife while she slept.
Private Lynndie England will be back in front of a military court this morning for a third day of testimony. Her supervisor testified that England had no business being around prisoners at Abu Ghraib and had disobeyed orders numerous times.
Fixing O'Hare Airport on the schedule today. Discussions continue among airline and transportation officials as they try to end gridlock at the airport. Commercial flights may again be limited in an effort to end delays across the country.
Over to the Weather Center and Chad -- good morning.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: The computer file trail now leads to Britain. We told you about 13 arrests in the U.K. yesterday. Well, this morning, one of them is being called a suspected al Qaeda operative, one with ties to Mohammad Noor Khan.
More from London now and Diana Muriel.
(BEGIN VIDEO TAPE)
DIANA MURIEL, CNN CORRESPONDENT: British police are continuing their interrogation of 12 suspects arrested as part of a wide scale operation of raids that took place across the U.K. on Tuesday afternoon and Tuesday evening. Pakistani intelligence officials have told CNN that at least one of the 12 suspects held on suspicion of being involved in terrorist activities in Britain was arrested as a result of intelligence gathered from the arrest of a Pakistani computer expert.
Twenty-five-year-old Mohammad Naeem Noor Khan was arrested in Lahore on July the 13th and is described as an al Qaeda computer expert.
Pakistani officials said that his interrogation yielded information concerning a terror network in Britain and that he frequently relayed messages from Pakistan to its leader. Sources have told CNN the Noor Khan did, indeed, travel to the U.K. frequently and that he had multiple contacts with a terrorist group or network operating in Britain.
U.K. newspapers have named the man as Abu Musar Al-Hindi or Abu Eisa Al-Hindi, although these are believed to be aliases. U.K. police have declined to comment on these newspaper reports or, indeed, confirm a link between the arrests here in the U.K. and those in Pakistan. They say the British raids were part of a long planned intelligence led operation, indicating that it began before the recent Pakistani arrests.
British newspapers are also reporting that there was a plan to attack London's Heathrow Airport, Europe's busiest, and that the information regarding this proposed attack was gained from computer files recovered by the Pakistan intelligence services following the arrests of Noor Khan and Ahmed Khalfan Ghailani, who was arrested last week in Pakistan. CNN has been unable to confirm this.
British police are continuing to search residential premises at various locations around the U.K. where the arrests were made on Tuesday and they have two weeks before they must charge the 12 suspects or release them.
Diana Muriel, CNN, London.
(END VIDEO TAPE)
COSTELLO: So, as each day passes, we're learning more about a terrorist plot to topple financial icons in the United States. This morning, more new and disturbing evidence that al Qaeda could have operatives here in the United States who are ready to strike.
Bill Prasad live in Washington with that part of the story -- good morning, Bill.
BILL PRASAD, CNN CORRESPONDENT: Good morning, Carol.
The long arm of al Qaeda may be reaching out to operatives right here in America. Sources say there is evidence that the terrorist group has recently communicated with people in the U.S.
(BEGIN VIDEO TAPE)
PRASAD (voice-over): An ominous reminder that the nation's capital faces an orange alert. But U.S. officials say what you don't see may be most disturbing. Two senior U.S. government sources say there's evidence that al Qaeda operatives in Pakistan have contacted one or more people in the U.S. in the last few months.
TOM RIDGE, HOMELAND SECURITY SECRETARY: We are exploring every conceivable potential contact that any al Qaeda operative anywhere in the world might have had with anyone in the United States.
PRASAD: Two senior Pakistani intelligence officials say evidence shows alleged al Qaeda computer expert Mohammad Naeem Noor Khan contacted at least six al Qaeda operatives in the U.S. and others in Great Britain. Khan was arrested last month in Pakistan. Officials believe he is one of al Qaeda's key players.
SHEIKH RASHIO, PAKISTAN INFORMATION MINISTER: He is among those. So that's why I think his arrest is very important.
PRASAD: So important that khan's arrest may have led to the capture of 12 suspected terrorists in Britain Tuesday. Officials also say information collected last week has corroborated surveillance information that dates back several years.
RIDGE: All of the information isn't irrelevant information.
PRASAD: Officials say this is particularly important when the enemy is invisible and very patient.
(END VIDEO TAPE)
PRASAD: U.S. officials continue to scrutinize information gathered in Pakistan. So far, there is no evidence of when an attack might take place or even if al Qaeda is ready to attack -- Carol, back to you.
COSTELLO: All right, Bill Prasad reporting live for us from Washington this morning.
Thank you.
Just eight days remain until the opening ceremonies for the Summer Games in Greece. But actually it's just six days until the first event. Around 80 members of the U.S. Olympic team are already in Greece to prepare for their events. Armed American agents are on hand to provide security for those athletes. The U.S. Olympic basketball team still has some business to attend to before heading off to Greece. Team USA used a last second shot by Allen Iverson to beat the Germans in a pre-Olympic exhibition game. Yes, they barely escaped with a win against the Germans. As you know, they lost to the Italians a couple of days ago.
That brings us to our e-mail Question of the Day. Not exactly about Olympic basketball, but about the games themselves. Are you excited about the 2004 Summer Games in Athens?
Send your e-mails to daybreak@cnn.com and we're going to read some more of them on the air a little later this hour.
Her husband may be under arrest, but the search for a missing Utah woman goes on. At 15 after, where investigators hope to find clues to what is now a murder investigation.
Plus, a campaign trail miss -- close proximity for President Bush and John Kerry in the State of Iowa. At 20 past the hour, why Iowa is such a key battleground state.
But first, here's a look at what lese is making news this Thursday morning, August 5.
(COMMERCIAL BREAK)
COSTELLO: The stock market closed higher thanks to gains late in the session. This morning, the Dow opens up, oh, just over 6 points. The tech heavy Nasdaq starts the day down 3 points. The S&P 500 opens down 1 point, as well.
Time for a little business buzz now.
Delta wants its pilots to accept $1 billion in wage cuts. The pilots say now way.
Carrie Lee has more live from the Nasdaq market site.
But Delta is teetering there on the brink of bankruptcy, isn't it?
CARRIE LEE, CNN CORRESPONDENT: It has been for quite a while, Carol, so we'll see what happens with these pilot negotiations. But last week, Delta had asked its pilots to give back $1 billion in wage cuts and other concessions. Well, the union now says that that expectation far exceeds the company's economic situation and the union members are hinting they might have to take another path in the negotiations.
Delta last week asked for a billion dollars in concessions, as well as proposed changes to its pension plan. The pilots came back offering $655 million to $705 million, saying that $1 billion mark was too high. The pilots also want a stake in equity, profit sharing and corporate governance rights.
Last night, Delta sent a letter to the union saying that this is not a take it or leave it process. And so the negotiations continue.
But I can tell you, Carol, that with high fuel prices and with other challenges to the airline industry, this is a pretty tough time for Delta. So it looks like they're really going to have to need to work something out in order to stay afloat, if you will.
COSTELLO: Stay afloat -- in the air. Something like that.
LEE: You know how to get that in there, right?
COSTELLO: Exactly.
A quick look at the futures?
LEE: Futures are looking slightly positive for at least technology issues, issues that trade here at the Nasdaq. Otherwise, pretty flat. We will get a look at the weekly jobs report. New unemployment filings for last week could give us some direction. Tomorrow, we'll get the big jobs report for the month of July. A lot of people looking for that.
Goodyear Tire & Rubber reporting profits this morning. Wall Street looking for $0.08 a share on the bottom line versus a loss of $0.20 a year ago.
That's the latest -- Carol.
COSTELLO: All right, thank you.
Carrie Lee live from the NASDAQ market site.
Your news, money, weather and sports.
It is 6:14 Eastern.
Here's what's all new this morning.
Cadaver dogs used once again at a Salt Lake City landfill to search for Lori Hacking. Information from her husband Mark led police back to that landfill. He's been arrested, but not yet charged in the death of his wife.
The government says it cannot lower the price of an important AIDS drug. The price of the drug Norvir more than quintupled last year. And despite pressure from Congress, the Feds say the law doesn't allow them to force the price back down.
In money news, Chrysler is recalling more than 800,000 minivans due to a potential power steering problem. Problems in Voyagers and Caravans built between 2002 and 2004 could cause engine fires.
In culture, some never before seen family photos debut today at a special Anne Frank exhibit at the Holocaust Museum in Houston. It was 60 years ago Wednesday that Frank was discovered hiding in an Amsterdam home.
In sports, revenge for the Yankees. A day after being crushed by the As, the Yanks come from behind to steal a victory. A-Rod blasted a home run in the bottom of the eleventh to give the Yankees their league leading 67th win.
What are they, 800 games ahead of Boston now?
MYERS: Not quite. The only team with a better record, St. Louis. They have 68 wins right now.
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COSTELLO: Those are the latest headlines for you.
In just about four hours, President Bush signs a massive Department of Defense spending bill. The Senate unanimously passed the $416 billion measure. It marks an increase of $22 billion over last year's spending. It includes money to add 20,000 soldiers to the Army and a 3 1/2 percent pay raise for the troops. Aid for war torn Sudan is part of the bill, too, along with $25 billion more for operations in Afghanistan and Iraq.
President Bush is campaigning today in the Midwest. He'll hold a town hall meeting in Columbus, Ohio. Later in Michigan, the president is expected to put a positive spin on the economy. He narrowly lost that state in the 2000 election.
Democratic rival Senator John Kerry starts his day in Washington, as well. Kerry addresses the Unity Conference of minority journalists this morning and then later he'll join John Edwards in St. Louis, Missouri. Their Believe In America tour will then take them to Jefferson City and then on to Kansas City. And as one Iowa newspaper put it, it was the duel in Davenport. Both candidates for president made a stop in Iowa yesterday. They were blocks from each other. But in this extremely partisan time in American politics, will that strategy work? Will Bush or Kerry draw more votes with more visits?
Joining us by phone is Kathie Obradovich.
Did I pronounce your name right?
KATHIE OBRADOVICH, POLITICAL EDITOR, "DES MOINES REGISTER": Pretty close. It's Obradovich.
COSTELLO: OK. Obradovich. I apologize.
OBRADOVICH: That's OK.
COSTELLO: She is the political editor for the "Des Moines Register."
Welcome to DAYBREAK.
OBRADOVICH: Thanks.
COSTELLO: Al Gore won Iowa by a little more than 4,000 votes in the year 2000. Some say he won because he visited Iowa a week and a half before the election.
Do you think that's true?
OBRADOVICH: I think it certainly didn't hurt. At that point it was about turning out the base. Al Gore not only visited a week before the election, but some say his trip down the Mississippi River after his nomination was a really good strategy. He won nine out of the 10 counties along that, basically what we call the east coast of Iowa. And Bush only won one of those counties.
So that might be one reason why you saw them both in Davenport.
COSTELLO: But it's such a different election this time around. I mean people really have their minds made up.
Do you think it really will make a difference if either candidate pays Davenport, Iowa 10 more visits before November?
OBRADOVICH: Well, you're right, they do have their minds made up. And three out of four Iowans said, in our poll a couple of weeks ago, that they had already decided. Now, some can still change their minds. But what these candidates are doing is not necessarily trying to persuade undecided voters, even at this early date. What they're talking about is getting their base to turn out and making sure that they get every one of their own supporters to the polls.
And the more times they come here and energize their base, the more effective they can be at turnout. And so that's really what it's all about. COSTELLO: Well, having said that, I know there are many Catholics in Iowa and there are conservative Democrats, as well.
Which candidate is winning that vote and is it even possible in light of what you just said?
OBRADOVICH: Well, they're definitely battling for the vote and I guess we'll find out who is going to win. But conservative Democrats and, even in Iowa, in the Dubuque area, for example, a heavily Catholic area, it's still a pretty Democratic part of the state. John Kerry was there Tuesday night. And so they're both going to be working hard on the Catholic vote. But it'll be interesting to see how that comes out.
COSTELLO: It certainly will.
One last question. I know the Davenport mayor is a Republican.
Has he endorsed anyone?
OBRADOVICH: You know, I think he was at the Bush rally yesterday. So he wasn't making much of a secret of it. But I don't know if Iowans that much attention to endorsements anyway.
COSTELLO: Yes, I think that they are pretty hard-minded and probably make up their minds on their own.
OBRADOVICH: Yes.
COSTELLO: All right, thank you so much for joining us this morning.
Next on DAYBREAK, after a huge loss, the U.S. Olympic basketball team pulls off a win, just barely, though. But is anyone other than the athletes ready for these games? Well, maybe the U.S. basketball team isn't ready.
Anyway, we're asking you this question this morning -- are you excited about the 2004 Summer Games? E-mail us your thoughts, daybreak@cnn.com. We've gotten great responses so far, so keep those e-mails coming.
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COSTELLO: We're talking about the Summer Olympics this morning, if you're at all excited about them, because nobody is really talking about the 2004 Summer Olympic Games.
MYERS: NBC is, because they have the Games.
COSTELLO: Well, they're not even talking about it that much, though.
MYERS: To be really honest, they're not, and they're spending a lot of money over there.
COSTELLO: Oh, yes they are.
MYERS: Probably as much as Greece had to spend to get all this stuff done.
COSTELLO: Probably so. But we've been soliciting your e-mails this morning, asking you, are you excited about the 2004 Summer Olympic Games in Athens?
And we have some of your responses now.
This is from Todd in Kansas City: "It's time for the Summer Olympics already? Wow. Time flies when you don't give a damn."
MYERS: From Jim in Naples, Florida. He says: "I do care about the games, but I really want to see my son come home from Iraq."
COSTELLO: Oh, man, that breaks your heart. This is from Sarge in Granville, Ohio. He says: "Of course I'm excited about the Olympics. My one big fear is this, that the Olympics will be pushed back into the spotlight, but only at the unfortunate news of a terror attack in Athens."
MYERS: Yes. From Gary in Key West: "I remember watching the Munich Olympics. I'm fearful that something like that is going to happen. A lot of innocent people could be hurt."
COSTELLO: I have to get this one off the printer because I liked it.
MYERS: Go ahead.
"I think the Olympics are an important reminder that not everything is about money. The athlete does not do this for the sake of money" -- well, except for the basketball players, of course, because they're paid. But that is -- no place where that's from. (UNINTELLIGIBLE).
COSTELLO: But they're not paid for playing in the Olympics.
MYERS: No, not for playing in the Olympics. Right.
COSTELLO: But this e-mail goes good after that one. This is from Tom from California, from Laguna Niguel. He says: "Some may take it as unpatriotic, but I am excited about the possibility of seeing the USA basketball team get beaten. Why? As NBA professionals, they make too much money, behave like babies and thugs and don't appreciate how good they've got it."
MYERS: All right.
COSTELLO: So there you go.
We'll be right back with more on DAYBREAK.
Keep those e-mails coming. Daybreak@cnn.com.
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COSTELLO: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, within the last couple of hours, a U.S. helicopter transporting a wounded American was downed by small arms fire in Najaf. That's south of Baghdad.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, within the last couple of hours, a U.S. helicopter transporting a wounded American was downed by small arms fire in Najaf. That's south of Baghdad. Two other Americans were also hurt. Najaf's hospitals also have been hit by mortar fire, killing at least one worker. U.S. and Iraqi troops are battling guerrillas loyal to a Muslim cleric.
Three and a half hours from now, President Bush signs a $416 billion defense spending bill. He then leaves for two Rust Belt battleground states, Ohio and Michigan. He's got a town hall meeting in Columbus and a rally later in Saginaw.
And the president's opponent, Senator John Kerry, delivers a speech in Washington two and a half hours from now. Later, he and running mate John Edwards board a train in St. Louis for a five state campaign tour.
And Private Lynndie England will be back in front of a military court this morning for a third day of testimony. Her supervisor testified that England had no business being around prisoners at Abu Ghraib and had disobeyed orders numerous times.
To the Weather Center and Chad.
MYERS: Good morning, Carol.
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