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CNN Live At Daybreak

Florida Preparing For Back-to-Back Storms; 9/11 Road Show

Aired August 12, 2004 - 06:30   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 thousand-acre Bear fire has destroyed 40 structures and injured five people so far. It's believed sparks from a lawn mower started this fire.
And boarding up the Panhandle, Florida residents prepare for Bonnie and Charley.

Let's go right to Chad. He's live in Panama City Beach.

Good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

And you have to think of these two storms almost together, because we have Bonnie coming in first, laying down a lot of rain, getting the ground very saturated. And then you're going to have a category 2, maybe category 3 hurricane run right over the same areas in Georgia, South Carolina, North Carolina, Virginia, all the way up to the District of Columbia.

So, don't really be concerned that this thing is only a 50-mile- per-hour storm. It is certainly going to have more of an impact than just the wind, putting down all of the rain.

We have had some rain in the overnight hours; in fact, almost an inch or two of rain here at Panama City Beach.

Things are still pretty calm, but if you notice, every one of the beach chairs are off the beach, all packed away, all put away. The waves are now up to about, oh, maybe five to six feet and headed higher. The waves here could at least be 8 to 10 before it's done.

Here is the track now for Bonnie. It really hasn't changed very much. Out in the middle of the Gulf of Mexico, max winds 50 miles per hour. It goes right over Panama City. The center of the storm, very close to Panama City this late morning, probably somewhere around noon or then thereafter.

And here's the problem. See where it goes? Right over to Piedmont, right off to Virginia, and then eventually even to Pennsylvania. All of those areas are all going to have an awful lot of rainfall.

And then here comes a bigger storm with more wind and, well, a category 2 already by this point as it goes over Havana. Winds, 100 miles per hour. Tampa, you're really under the gun for a big storm. The eye wall, actually the worst part of the storm, could literally go all of the way from Fort Charlotte through Naples and then along and into Tampa.

And you almost want to think of this, Carol -- and then obviously it exits itself right on up into the Carolinas. You want to think of the eye wall as the worst part of the storm. That's were the winds are the strongest right around the eye. Well, this eye may brush Florida for hours and hours and hours as it spins directly up the coast.

So, the worst part of this storm, the eye wall, could affect hundreds of miles of the Florida west coast, and obviously a storm surge, a lot of lowland flooding, and a lot of folks down there that haven't seen a storm like this in 30 or 40 years.

COSTELLO: And the ground is already saturated in so many parts of Florida. Thank you, Chad. We'll get back to you.

MYERS: Exactly. You bet.

COSTELLO: We could call these storm systems the Bonnie and Clyde of hurricanes, Clyde masquerading as Charley in this case.

Ed Lavandera is live for us in Clearwater, Florida.

How is Charley affecting that part of the state?

ED LAVANDERA, CNN CORRESPONDENT: Well, actually we're waking up to a beautiful morning here. And I think the predominant theme in what we're hearing from a lot of folks is that they'll believe Charley when they see it. And I think for most people it's perhaps a little too far away.

In fact, we've spoken this morning with several of the emergency management officials around the area. There doesn't seem to be a lot of excitement there as well either, although we have talked to several people where meetings are planned for later this morning to determine exactly what will be done and what should be done here in Clearwater and across the bay. Here you might see that's Clearwater Beach Island across the way there.

And there have been people preparing, doing some minor preparations as this storm approaches. But as we mentioned, a lot of these people are just kind of waiting to see what will happen today. I anticipate that today will be the day that determines what a lot of people will do in terms of how they prepare for Hurricane Charley.

There had been some reports that Hurricane Charley could be a category 2 by the time it reaches here into the Tampa area. But still, a lot of people are waking up this morning. The sunshine will be shining here shortly. And a lot of people will be waking up and then determining exactly what they will do.

We haven't seen a lot of people boarding up. We have driven up and down the road here on the waterfront. I haven't seen a lot of people boarding up homes or anything like that just yet. So, I anticipate that's what will be happening later today -- Carol.

COSTELLO: I'm sure. I'm sure you're right. Ed Lavandera reporting live from Tampa, Florida, this morning.

For more on the double-dose of storms heading Florida's way, click on to our Web site, CNN.com/weather.

The battle lines are being drawn between Capitol Hill and the Pentagon. Lawmakers are deciding how to implement the recommendations from the September 11 commission. They held two more House committee hearings on the issue.

During the session, the Defense Department made clear it will fight to keep control over intelligence matters. The 9/11 Commission recommends that intelligence agencies be centralized under a single chief that would be the new intelligence chief that the president says he is in favor of.

Well, you could call it the 9/11 road show. Members of the 9/11 Commission are traveling throughout the country to urge you to act. Commission member Tim Roemer was just in Atlanta to talk about why the president should adopt the 9/11 Commission's recommendations.

We wanted to know if the road show was effective, so we've asked an everyday citizen who participated to be with us this morning, Dr. Carl Biven.

Welcome.

CARL BIVEN, FORMER GEORGIA TECH PROFESSOR: Thank you. It's nice to be here, Carol.

COSTELLO: It's nice that you're here. So, were you at the Carter Center to hear Tim Roemer?

BIVEN: I was. I had been reading the report, which, by the way, is impressive. The amount of research that went into it was very large.

Incidentally, I think people find it very interesting, some parts of it, like describing the behavior of the terrorists and so on. It reads like a good mystery novel.

COSTELLO: Oh, yes.

BIVEN: But the main talk of Mr. Roemer was about the recommendations. And he was impressive. The 10 members of the commission are traveling all over the country in order to try to get people's interest in it.

COSTELLO: Well, as you were listening to Congressman Roemer, were you more afraid?

BIVEN: I don't think I was more afraid, and I had the feeling that something really will be done about this.

COSTELLO: And why did you get that feeling?

BIVEN: Well, first of all, the report has had very widespread coverage. It's a best-seller. They had three million touches on their Web site. But the strongest political voice, I think, is going to be the family of the victims of 9/11. In fact, I don't think this commission would not have even been appointed had it not been for the pressure of these people.

COSTELLO: So, what did Tim Roemer want everyday citizens to do?

BIVEN: He wanted them to contact their congressmen, to contact anyone that they could in order to press that this thing doesn't just wind up on the shelf.

COSTELLO: And are you going to do that?

BIVEN: Am I going to do what?

COSTELLO: Are you going to contact your congressmen?

BIVEN: Yes, I will. I will. And I'm getting a voice here on CNN.

COSTELLO: That's right, and we're glad to provide that for you this morning.

Tell us what his major point was. Was it the creation of this new intelligence chief that everybody is talking about?

BIVEN: The disturbing point of that committee, and it ought to be disturbing to anybody in America, is the breakdown in communication among these various intelligence agencies. It's really shocking that they withheld information from one another; that is, they didn't pass it on. It was crucial to certain groups that were monitoring what was going on.

It was simply a breakdown in the interaction of the intelligence groups. And that's the point in trying to appoint a sort of intelligence czar is that he'll force people to talk together and work together.

COSTELLO: Well, the president has said that he's in favor of such a thing, but we don't know exactly how much power the president wants that position to have. Do you think that such a czar will really be appointed? Will it really happen? Will the government really move to adopt some of these recommendations?

BIVEN: I think they will, because I think the pressure is going to be very great to do it. But the thing you're always fighting in a case like this is everybody has their own turf, and they don't want to give it up. And the Congress needs to press very, very hard to see these really important and significant changes take place.

COSTELLO: Carl Biven, thank you for joining DAYBREAK this morning.

BIVEN: Thank you, Carol.

COSTELLO: Thanks for waking up early. We appreciate that.

Now for some other stories making news across America this Thursday.

Amber Frey is set to return to the witness stand today. Frey is testifying about lies told by Scott Peterson during their more than 300 phone conversations. Frey admitted that she began taping the calls at the request of Modesto police after Laci Peterson's disappearance.

Police seized what may a "Dear John" letter from the apartment of Mark and Lori Hacking. The letter was one of hundreds of items taken from the home, including several that had traces of blood. Mark Hacking is charged with murdering his wife. Her body still hasn't been found. A formal memorial service for Lori Hacking is scheduled for Saturday.

Will the Kobe Bryant criminal trial ever begin? Prosecutors have now asked for an indefinite delay of the case. Jury selection was supposed to begin August 27. The request for that delay comes just one day after the attorney for Bryant's accuser filed a civil case against the NBA star.

Out in California, two relatively small wildfires are causing a large amount of damage.

For more on that, we're joined by CNN's Miguel Marquez. He is live in Oroville, California.

Miguel -- what can you tell us?

MIGUEL MARQUEZ, CNN CORRESPONDENT: I can tell you there are two fires burning up here right now. And it's a bit early in the season for this area of California to be having their fire season.

I am right outside of Oroville, California, at the Oregon fire, about 90 miles southeast of Sacramento, California. This thing has blown up from about 500 acres when it was first seen to about 750 acres now.

They say they have it 45-percent contained, and firefighters seem to be feeling fairly confident about this fire. One home has been destroyed here and about 100 people evacuated.

But the real action seems to be north of here in Redding, California, the Bear fire up there just north of Redding. It's blown up to 1,000 acres now burned, 20-percent contained, they say. Over 700 firefighters are on that scene.

Forty structures are destroyed. And the thing is moving so fast they know that many homes have been destroyed, but they're not entirely sure how many homes. There have been five injuries -- three to civilians, two to firefighters. And this thing was started by a person mowing their lawn, mowing this dry grass out here, hoping to protect his home from fires. And it starts off a fire, and it started the Bear fire now. And that person has been cited, according to firefighters.

One interesting side note is that there is a big resort on the south shore of Lake Shasta, and 120 people at that resort had to be evacuated by boat.

Firefighters are expecting the temperatures to climb to triple digits today, and the humidity is staying very low. So, even though they feel fairly confident here north of Sacramento, they're not so confident about the fire just north of Redding, California.

Back to you.

COSTELLO: I know you'll be out there continuing to watch. Miguel Marquez reporting live from Oroville, California, this morning.

We're also keeping close tabs on Bonnie and Charley. In about six minutes, what's happening with the tropical weather in Florida and in the Caribbean? We'll have a live report for you ahead.

And, in about 10 minutes, if you're looking to make a career move, we have got the inside scoop on what jobs are out there and what cities are looking to hire.

But first, here's a look at what else is making news this Thursday.

(COMMERCIAL BREAK)

COSTELLO: Tech stocks take a tumble on Wall Street. And later this morning, the Nasdaq will open down more than 26 points. The Dow opens down 6 points. The S&P 500 opens down three and a quarter points.

It's time for a little business buzz.

A sad ending to this toy story? Toys R Us may exit the toy business.

Carrie Lee is live at the Nasdaq Marketsite.

Wow! You're kidding!

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: It sounds pretty ironic, right, Carol? Because this has been the company's bread and butter, or so you would think.

Well, it's actually the Babies R Us unit that has been more successful than Toys R Us' toy business. So, at the very least, the company is now considerating (ph) -- considering, rather, separating the two units. At the most, they could be selling the global toy division and spinning off the Babies R Us unit.

So, a lot of this is still being decided.

It's kind of interesting that Toys R Us in the 1980s and the 1990s put a lot of small toy companies, toy retailers out of business, because they offered better selection, lower prices.

Well, lately Wal-Mart has been kind of doing the same thing to Toys R Us. Wal-Mart often uses toys as a loss leader. That means they're not even making money on toys. They use them to get people into the door and buy other products.

Wal-Mart is the largest toy retailer in the country today, about 25 percent of the U.S. market versus Toys R Us' 15 percent.

By the way, Carol, Wal-Mart just came out with profits for the recent quarter this morning. It looks like they beat the Street by a penny a share on the bottom line; profits of 62 cents. They came in a little bit light on sales; sales of $69.7 billion, an 11-percent increase from the year ago.

Carol -- back to you.

COSTELLO: A look at the futures before you go.

LEE: Oh, yes. Futures are looking modestly lower for today's session; this, after a little bit of selling yesterday. Cisco Systems warning high oil prices weighing on shares. We'll see what happens today. We get weekly jobless claims and a lot of retail numbers coming out before the market opens.

Back to you.

COSTELLO: Carrie Lee live from the Nasdaq Marketsite.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

Napster is going to war. The online music service strikes a deal to offer its digital music service to the armed forces. Napster will offer 10 to 15 percent discounts to GIs and their families when purchased through the Army and Air Force Exchange Service.

Gas prices have fallen for three straight weeks, even while the price of oil has risen to record highs. "USA Today" is reporting the latest nationwide average is $1.88 a gallon. That's 30 cents a gallon higher than this time last year.

In culture, actress and activist Jane Fonda joined other prominent women in announcing a new get-out-the-vote initiative. They're hoping to involve the 40 million women who failed to vote in the last presidential election.

And in sports, can you believe it? Oh, I bet you can't. An early exit for Ken Griffey, Jr. -- again. The Reds outfielder will have surgery next week on a ruptured hamstring. Oh, so painful. The injury will bench him for the rest of the season. It is the third straight season Griffey has failed to play in 100 games. (WEATHER BREAK)

COSTELLO: Let's head live to New York to check in with Bill and Heidi, who is in for Soledad, for a look at what's coming up on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.

HEIDI COLLINS, CNN ANCHOR: Good morning, Carol.

HEMMER: A very busy day here, too, on "AMERICAN MORNING." The latest out of Najaf, the U.S. launching a major offensive overnight against militants loyal to the cleric, Muqtada al-Sadr. Matthew Chance is watching that with the Marines and the Iraqi forces as well. We'll get to Matthew this morning.

COLLINS: We will also get to Florida, where they are bracing for a one-two punch as Hurricane Charley and Tropical Storm Bonnie swirl closer and closer. We had Chad Myers, as you know, there, and also Ed Lavandera reporting live all morning long.

HEMMER: Now, how about that testimony yesterday in the Peterson case? We'll let the jury decide whether or not this man is guilty or not, but Scott Peterson has one heck of an imagination. We do know that from the tapes that have been played in court. Much more on how Amber Frey is doing on the stand. We'll talk to our analyst about that today.

Jack continues his vacation, and Toure continues his experience.

COLLINS: Our experience or his experience?

HEMMER: Well, maybe it's all three of us today.

See you at the top of the hour, Carol, OK?

COSTELLO: All right. Thank you. We'll catch you in 10 minutes.

We're going to take a short break. When we come back, a look at where the hot jobs are.

(COMMERCIAL BREAK)

COSTELLO: And news across America this Thursday. Will California's same-sex marriages be overturned? The state supreme court will issue its ruling today on whether San Francisco's mayor illegally allowed gay couples to get married. The court is also expected to decide whether to recognize the thousands of same-sex marriages already performed.

Police seized what may be a "Dear John" letter from the apartment of Mark and Lori Hacking. The letter was one of hundreds of items taken from the home, including several that had traces of blood. Mark Hacking is charged with murdering his wife. Her body still hasn't been found. A formal memorial service for Lori Hacking is scheduled for Saturday.

Will the Kobe Bryant criminal trial ever begin? Prosecutors have now asked for an indefinite delay in the case. Jury selection was supposed to begin on August 27. The request for the delay comes just one day after the attorney for Bryant's accuser filed a civil case against the NBA star.

Amber Frey takes the stand for a third day today. She's expected to recount what happened when she realized that Scott Peterson's wife was missing.

CNN's Ted Rowlands brings you up-to-date.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): Amber Frey, arriving for another day on the witness stand, was driven into the courthouse garage out of public view. With written transcripts in hand, jurors followed along as prosecutors played more phone conversations between Frey and Scott Peterson.

Frey started taping calls for police after finding out who Peterson really was, less than a week after his wife, Laci, was reported missing.

One recording, which lasted more than an hour, was a New Year's Eve call Peterson claimed he was making from Paris. At one point, while talking about the future, Peterson tells Frey -- quote -- "My thoughts are that I think that we would be wonderful together."

GLORIA ALLRED, AMBER FREY'S ATTORNEY: So obviously he is planning a future with Amber.

ROWLANDS: But some courtroom observers believe Peterson was actually setting up an eventual split with Frey. During one call, he brings up their differences and says -- quote -- "Unfortunately, 5 percent of me, you know, has questions."

New Year's Day, Peterson called and claimed he was in Brussels and said that because of all of the French food he had been eating, he was going jogging. He also claimed that a bomb had gone off while he was in Paris, but he assured Frey that he was safe.

Despite knowing the truth, Frey seemed comfortable on the phone listening to Peterson's constant lying. Frey testified that police had told her what to say during some of the conversations. At times, on the tape, she seemed to be pressing Peterson to talk about certain subjects, including their future.

(END VIDEOTAPE)

COSTELLO: That report from our Ted Rowlands.

Frey's attorney, Gloria Allred, says the most chilling part of the taped calls was when Peterson admits that his favorite movie is "The Shining." Today's mug winner will be announced in two minutes. But first, this is DAYBREAK for Thursday morning.

(COMMERCIAL BREAK)

COSTELLO: And you're taking a live look at Panama City Beach, Florida, where Tropical Storm Bonnie is still out to sea. It's just raining there. Of course, the good news is it's Tropical Storm Bonnie and not hurricane Bonnie any longer.

The more dangerous thing is for the Florida Keys, because Hurricane Charley is still out there. And, of course, we'll be keeping you posted throughout the day here on CNN.

It is time now to reveal the winner of the DAYBREAK coffee quiz. On Wednesday, we asked you these questions. Name one way to soothe a cranky baby? The answer was, massage their feet. And the second question was, name the company introducing a new food label for its products. That's Pepsico.

And the winner is Em Rider of Pacific Grove, California. Congrats, Em.

Now here is your chance to win a DAYBREAK coffee mug this morning. Today's quiz questions: Which presidential candidate won Ohio in the year 2000? And No. 2, name two of six cities where the job market is hot. And this question doesn't apply because our guest did not show up this morning. So just answer the first one. We'll name our winner tomorrow.

That does it for us. "AMERICAN MORNING" starts right now.

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 12, 2004 - 06:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The thousand-acre Bear fire has destroyed 40 structures and injured five people so far. It's believed sparks from a lawn mower started this fire.
And boarding up the Panhandle, Florida residents prepare for Bonnie and Charley.

Let's go right to Chad. He's live in Panama City Beach.

Good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

And you have to think of these two storms almost together, because we have Bonnie coming in first, laying down a lot of rain, getting the ground very saturated. And then you're going to have a category 2, maybe category 3 hurricane run right over the same areas in Georgia, South Carolina, North Carolina, Virginia, all the way up to the District of Columbia.

So, don't really be concerned that this thing is only a 50-mile- per-hour storm. It is certainly going to have more of an impact than just the wind, putting down all of the rain.

We have had some rain in the overnight hours; in fact, almost an inch or two of rain here at Panama City Beach.

Things are still pretty calm, but if you notice, every one of the beach chairs are off the beach, all packed away, all put away. The waves are now up to about, oh, maybe five to six feet and headed higher. The waves here could at least be 8 to 10 before it's done.

Here is the track now for Bonnie. It really hasn't changed very much. Out in the middle of the Gulf of Mexico, max winds 50 miles per hour. It goes right over Panama City. The center of the storm, very close to Panama City this late morning, probably somewhere around noon or then thereafter.

And here's the problem. See where it goes? Right over to Piedmont, right off to Virginia, and then eventually even to Pennsylvania. All of those areas are all going to have an awful lot of rainfall.

And then here comes a bigger storm with more wind and, well, a category 2 already by this point as it goes over Havana. Winds, 100 miles per hour. Tampa, you're really under the gun for a big storm. The eye wall, actually the worst part of the storm, could literally go all of the way from Fort Charlotte through Naples and then along and into Tampa.

And you almost want to think of this, Carol -- and then obviously it exits itself right on up into the Carolinas. You want to think of the eye wall as the worst part of the storm. That's were the winds are the strongest right around the eye. Well, this eye may brush Florida for hours and hours and hours as it spins directly up the coast.

So, the worst part of this storm, the eye wall, could affect hundreds of miles of the Florida west coast, and obviously a storm surge, a lot of lowland flooding, and a lot of folks down there that haven't seen a storm like this in 30 or 40 years.

COSTELLO: And the ground is already saturated in so many parts of Florida. Thank you, Chad. We'll get back to you.

MYERS: Exactly. You bet.

COSTELLO: We could call these storm systems the Bonnie and Clyde of hurricanes, Clyde masquerading as Charley in this case.

Ed Lavandera is live for us in Clearwater, Florida.

How is Charley affecting that part of the state?

ED LAVANDERA, CNN CORRESPONDENT: Well, actually we're waking up to a beautiful morning here. And I think the predominant theme in what we're hearing from a lot of folks is that they'll believe Charley when they see it. And I think for most people it's perhaps a little too far away.

In fact, we've spoken this morning with several of the emergency management officials around the area. There doesn't seem to be a lot of excitement there as well either, although we have talked to several people where meetings are planned for later this morning to determine exactly what will be done and what should be done here in Clearwater and across the bay. Here you might see that's Clearwater Beach Island across the way there.

And there have been people preparing, doing some minor preparations as this storm approaches. But as we mentioned, a lot of these people are just kind of waiting to see what will happen today. I anticipate that today will be the day that determines what a lot of people will do in terms of how they prepare for Hurricane Charley.

There had been some reports that Hurricane Charley could be a category 2 by the time it reaches here into the Tampa area. But still, a lot of people are waking up this morning. The sunshine will be shining here shortly. And a lot of people will be waking up and then determining exactly what they will do.

We haven't seen a lot of people boarding up. We have driven up and down the road here on the waterfront. I haven't seen a lot of people boarding up homes or anything like that just yet. So, I anticipate that's what will be happening later today -- Carol.

COSTELLO: I'm sure. I'm sure you're right. Ed Lavandera reporting live from Tampa, Florida, this morning.

For more on the double-dose of storms heading Florida's way, click on to our Web site, CNN.com/weather.

The battle lines are being drawn between Capitol Hill and the Pentagon. Lawmakers are deciding how to implement the recommendations from the September 11 commission. They held two more House committee hearings on the issue.

During the session, the Defense Department made clear it will fight to keep control over intelligence matters. The 9/11 Commission recommends that intelligence agencies be centralized under a single chief that would be the new intelligence chief that the president says he is in favor of.

Well, you could call it the 9/11 road show. Members of the 9/11 Commission are traveling throughout the country to urge you to act. Commission member Tim Roemer was just in Atlanta to talk about why the president should adopt the 9/11 Commission's recommendations.

We wanted to know if the road show was effective, so we've asked an everyday citizen who participated to be with us this morning, Dr. Carl Biven.

Welcome.

CARL BIVEN, FORMER GEORGIA TECH PROFESSOR: Thank you. It's nice to be here, Carol.

COSTELLO: It's nice that you're here. So, were you at the Carter Center to hear Tim Roemer?

BIVEN: I was. I had been reading the report, which, by the way, is impressive. The amount of research that went into it was very large.

Incidentally, I think people find it very interesting, some parts of it, like describing the behavior of the terrorists and so on. It reads like a good mystery novel.

COSTELLO: Oh, yes.

BIVEN: But the main talk of Mr. Roemer was about the recommendations. And he was impressive. The 10 members of the commission are traveling all over the country in order to try to get people's interest in it.

COSTELLO: Well, as you were listening to Congressman Roemer, were you more afraid?

BIVEN: I don't think I was more afraid, and I had the feeling that something really will be done about this.

COSTELLO: And why did you get that feeling?

BIVEN: Well, first of all, the report has had very widespread coverage. It's a best-seller. They had three million touches on their Web site. But the strongest political voice, I think, is going to be the family of the victims of 9/11. In fact, I don't think this commission would not have even been appointed had it not been for the pressure of these people.

COSTELLO: So, what did Tim Roemer want everyday citizens to do?

BIVEN: He wanted them to contact their congressmen, to contact anyone that they could in order to press that this thing doesn't just wind up on the shelf.

COSTELLO: And are you going to do that?

BIVEN: Am I going to do what?

COSTELLO: Are you going to contact your congressmen?

BIVEN: Yes, I will. I will. And I'm getting a voice here on CNN.

COSTELLO: That's right, and we're glad to provide that for you this morning.

Tell us what his major point was. Was it the creation of this new intelligence chief that everybody is talking about?

BIVEN: The disturbing point of that committee, and it ought to be disturbing to anybody in America, is the breakdown in communication among these various intelligence agencies. It's really shocking that they withheld information from one another; that is, they didn't pass it on. It was crucial to certain groups that were monitoring what was going on.

It was simply a breakdown in the interaction of the intelligence groups. And that's the point in trying to appoint a sort of intelligence czar is that he'll force people to talk together and work together.

COSTELLO: Well, the president has said that he's in favor of such a thing, but we don't know exactly how much power the president wants that position to have. Do you think that such a czar will really be appointed? Will it really happen? Will the government really move to adopt some of these recommendations?

BIVEN: I think they will, because I think the pressure is going to be very great to do it. But the thing you're always fighting in a case like this is everybody has their own turf, and they don't want to give it up. And the Congress needs to press very, very hard to see these really important and significant changes take place.

COSTELLO: Carl Biven, thank you for joining DAYBREAK this morning.

BIVEN: Thank you, Carol.

COSTELLO: Thanks for waking up early. We appreciate that.

Now for some other stories making news across America this Thursday.

Amber Frey is set to return to the witness stand today. Frey is testifying about lies told by Scott Peterson during their more than 300 phone conversations. Frey admitted that she began taping the calls at the request of Modesto police after Laci Peterson's disappearance.

Police seized what may a "Dear John" letter from the apartment of Mark and Lori Hacking. The letter was one of hundreds of items taken from the home, including several that had traces of blood. Mark Hacking is charged with murdering his wife. Her body still hasn't been found. A formal memorial service for Lori Hacking is scheduled for Saturday.

Will the Kobe Bryant criminal trial ever begin? Prosecutors have now asked for an indefinite delay of the case. Jury selection was supposed to begin August 27. The request for that delay comes just one day after the attorney for Bryant's accuser filed a civil case against the NBA star.

Out in California, two relatively small wildfires are causing a large amount of damage.

For more on that, we're joined by CNN's Miguel Marquez. He is live in Oroville, California.

Miguel -- what can you tell us?

MIGUEL MARQUEZ, CNN CORRESPONDENT: I can tell you there are two fires burning up here right now. And it's a bit early in the season for this area of California to be having their fire season.

I am right outside of Oroville, California, at the Oregon fire, about 90 miles southeast of Sacramento, California. This thing has blown up from about 500 acres when it was first seen to about 750 acres now.

They say they have it 45-percent contained, and firefighters seem to be feeling fairly confident about this fire. One home has been destroyed here and about 100 people evacuated.

But the real action seems to be north of here in Redding, California, the Bear fire up there just north of Redding. It's blown up to 1,000 acres now burned, 20-percent contained, they say. Over 700 firefighters are on that scene.

Forty structures are destroyed. And the thing is moving so fast they know that many homes have been destroyed, but they're not entirely sure how many homes. There have been five injuries -- three to civilians, two to firefighters. And this thing was started by a person mowing their lawn, mowing this dry grass out here, hoping to protect his home from fires. And it starts off a fire, and it started the Bear fire now. And that person has been cited, according to firefighters.

One interesting side note is that there is a big resort on the south shore of Lake Shasta, and 120 people at that resort had to be evacuated by boat.

Firefighters are expecting the temperatures to climb to triple digits today, and the humidity is staying very low. So, even though they feel fairly confident here north of Sacramento, they're not so confident about the fire just north of Redding, California.

Back to you.

COSTELLO: I know you'll be out there continuing to watch. Miguel Marquez reporting live from Oroville, California, this morning.

We're also keeping close tabs on Bonnie and Charley. In about six minutes, what's happening with the tropical weather in Florida and in the Caribbean? We'll have a live report for you ahead.

And, in about 10 minutes, if you're looking to make a career move, we have got the inside scoop on what jobs are out there and what cities are looking to hire.

But first, here's a look at what else is making news this Thursday.

(COMMERCIAL BREAK)

COSTELLO: Tech stocks take a tumble on Wall Street. And later this morning, the Nasdaq will open down more than 26 points. The Dow opens down 6 points. The S&P 500 opens down three and a quarter points.

It's time for a little business buzz.

A sad ending to this toy story? Toys R Us may exit the toy business.

Carrie Lee is live at the Nasdaq Marketsite.

Wow! You're kidding!

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: It sounds pretty ironic, right, Carol? Because this has been the company's bread and butter, or so you would think.

Well, it's actually the Babies R Us unit that has been more successful than Toys R Us' toy business. So, at the very least, the company is now considerating (ph) -- considering, rather, separating the two units. At the most, they could be selling the global toy division and spinning off the Babies R Us unit.

So, a lot of this is still being decided.

It's kind of interesting that Toys R Us in the 1980s and the 1990s put a lot of small toy companies, toy retailers out of business, because they offered better selection, lower prices.

Well, lately Wal-Mart has been kind of doing the same thing to Toys R Us. Wal-Mart often uses toys as a loss leader. That means they're not even making money on toys. They use them to get people into the door and buy other products.

Wal-Mart is the largest toy retailer in the country today, about 25 percent of the U.S. market versus Toys R Us' 15 percent.

By the way, Carol, Wal-Mart just came out with profits for the recent quarter this morning. It looks like they beat the Street by a penny a share on the bottom line; profits of 62 cents. They came in a little bit light on sales; sales of $69.7 billion, an 11-percent increase from the year ago.

Carol -- back to you.

COSTELLO: A look at the futures before you go.

LEE: Oh, yes. Futures are looking modestly lower for today's session; this, after a little bit of selling yesterday. Cisco Systems warning high oil prices weighing on shares. We'll see what happens today. We get weekly jobless claims and a lot of retail numbers coming out before the market opens.

Back to you.

COSTELLO: Carrie Lee live from the Nasdaq Marketsite.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

Napster is going to war. The online music service strikes a deal to offer its digital music service to the armed forces. Napster will offer 10 to 15 percent discounts to GIs and their families when purchased through the Army and Air Force Exchange Service.

Gas prices have fallen for three straight weeks, even while the price of oil has risen to record highs. "USA Today" is reporting the latest nationwide average is $1.88 a gallon. That's 30 cents a gallon higher than this time last year.

In culture, actress and activist Jane Fonda joined other prominent women in announcing a new get-out-the-vote initiative. They're hoping to involve the 40 million women who failed to vote in the last presidential election.

And in sports, can you believe it? Oh, I bet you can't. An early exit for Ken Griffey, Jr. -- again. The Reds outfielder will have surgery next week on a ruptured hamstring. Oh, so painful. The injury will bench him for the rest of the season. It is the third straight season Griffey has failed to play in 100 games. (WEATHER BREAK)

COSTELLO: Let's head live to New York to check in with Bill and Heidi, who is in for Soledad, for a look at what's coming up on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.

HEIDI COLLINS, CNN ANCHOR: Good morning, Carol.

HEMMER: A very busy day here, too, on "AMERICAN MORNING." The latest out of Najaf, the U.S. launching a major offensive overnight against militants loyal to the cleric, Muqtada al-Sadr. Matthew Chance is watching that with the Marines and the Iraqi forces as well. We'll get to Matthew this morning.

COLLINS: We will also get to Florida, where they are bracing for a one-two punch as Hurricane Charley and Tropical Storm Bonnie swirl closer and closer. We had Chad Myers, as you know, there, and also Ed Lavandera reporting live all morning long.

HEMMER: Now, how about that testimony yesterday in the Peterson case? We'll let the jury decide whether or not this man is guilty or not, but Scott Peterson has one heck of an imagination. We do know that from the tapes that have been played in court. Much more on how Amber Frey is doing on the stand. We'll talk to our analyst about that today.

Jack continues his vacation, and Toure continues his experience.

COLLINS: Our experience or his experience?

HEMMER: Well, maybe it's all three of us today.

See you at the top of the hour, Carol, OK?

COSTELLO: All right. Thank you. We'll catch you in 10 minutes.

We're going to take a short break. When we come back, a look at where the hot jobs are.

(COMMERCIAL BREAK)

COSTELLO: And news across America this Thursday. Will California's same-sex marriages be overturned? The state supreme court will issue its ruling today on whether San Francisco's mayor illegally allowed gay couples to get married. The court is also expected to decide whether to recognize the thousands of same-sex marriages already performed.

Police seized what may be a "Dear John" letter from the apartment of Mark and Lori Hacking. The letter was one of hundreds of items taken from the home, including several that had traces of blood. Mark Hacking is charged with murdering his wife. Her body still hasn't been found. A formal memorial service for Lori Hacking is scheduled for Saturday.

Will the Kobe Bryant criminal trial ever begin? Prosecutors have now asked for an indefinite delay in the case. Jury selection was supposed to begin on August 27. The request for the delay comes just one day after the attorney for Bryant's accuser filed a civil case against the NBA star.

Amber Frey takes the stand for a third day today. She's expected to recount what happened when she realized that Scott Peterson's wife was missing.

CNN's Ted Rowlands brings you up-to-date.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): Amber Frey, arriving for another day on the witness stand, was driven into the courthouse garage out of public view. With written transcripts in hand, jurors followed along as prosecutors played more phone conversations between Frey and Scott Peterson.

Frey started taping calls for police after finding out who Peterson really was, less than a week after his wife, Laci, was reported missing.

One recording, which lasted more than an hour, was a New Year's Eve call Peterson claimed he was making from Paris. At one point, while talking about the future, Peterson tells Frey -- quote -- "My thoughts are that I think that we would be wonderful together."

GLORIA ALLRED, AMBER FREY'S ATTORNEY: So obviously he is planning a future with Amber.

ROWLANDS: But some courtroom observers believe Peterson was actually setting up an eventual split with Frey. During one call, he brings up their differences and says -- quote -- "Unfortunately, 5 percent of me, you know, has questions."

New Year's Day, Peterson called and claimed he was in Brussels and said that because of all of the French food he had been eating, he was going jogging. He also claimed that a bomb had gone off while he was in Paris, but he assured Frey that he was safe.

Despite knowing the truth, Frey seemed comfortable on the phone listening to Peterson's constant lying. Frey testified that police had told her what to say during some of the conversations. At times, on the tape, she seemed to be pressing Peterson to talk about certain subjects, including their future.

(END VIDEOTAPE)

COSTELLO: That report from our Ted Rowlands.

Frey's attorney, Gloria Allred, says the most chilling part of the taped calls was when Peterson admits that his favorite movie is "The Shining." Today's mug winner will be announced in two minutes. But first, this is DAYBREAK for Thursday morning.

(COMMERCIAL BREAK)

COSTELLO: And you're taking a live look at Panama City Beach, Florida, where Tropical Storm Bonnie is still out to sea. It's just raining there. Of course, the good news is it's Tropical Storm Bonnie and not hurricane Bonnie any longer.

The more dangerous thing is for the Florida Keys, because Hurricane Charley is still out there. And, of course, we'll be keeping you posted throughout the day here on CNN.

It is time now to reveal the winner of the DAYBREAK coffee quiz. On Wednesday, we asked you these questions. Name one way to soothe a cranky baby? The answer was, massage their feet. And the second question was, name the company introducing a new food label for its products. That's Pepsico.

And the winner is Em Rider of Pacific Grove, California. Congrats, Em.

Now here is your chance to win a DAYBREAK coffee mug this morning. Today's quiz questions: Which presidential candidate won Ohio in the year 2000? And No. 2, name two of six cities where the job market is hot. And this question doesn't apply because our guest did not show up this morning. So just answer the first one. We'll name our winner tomorrow.

That does it for us. "AMERICAN MORNING" starts right now.

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