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CNN Live At Daybreak

In Florida Panhandle, Residents Preparing to be Hit by Hurricane Bonnie; Major U.S. Offensive Against in Najaf

Aired August 12, 2004 - 05:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Bracing for a one-two punch, a tropical storm aims for Florida's Panhandle and a hurricane threatens the Keys.
It is Thursday, August 12.

This is DAYBREAK.

And good morning to you.

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

Now in the news, thousands of U.S. troops are part of a major offensive in the Iraqi city of Najaf. It's happening right now. You're looking at pictures just in to CNN. You see the thick black smoke there. We'll have a live report out of Najaf in about five minutes.

Also, fighting under way in the city of al-Kut, about 100 miles south of Baghdad. Iraqi security forces are battling insurgents who attacked city hall, police stations and a national guard barracks.

And hundreds of firefighters are battling a fast moving blaze near northern California's Shasta Lake. The fire has already destroyed 40 structures and is threatening at least 300 more buildings. Residents have been evacuated from the resort area.

And the problem in Florida is not fire, it's water. Residents are boarding up as tropical storm Bonnie heads toward the Florida Panhandle and hurricane Charley is aiming for the Keys. Chad will join us live from Panama City Beach, Florida.

In fact, he's there right now.

And I see the rain coming down behind you -- Chad.

CHAD MYERS, CNN CORRESPONDENT: It is pouring down rain behind me, Carol, and it's just coming down everywhere. And that's what people here are most concerned about. There's very little land down here around Panama City, all the way from Apalachicola, for that matter, all the way back over to Destiny and Fort Walton Beach, and very little land. That's over about 10 feet high. All of this land is going to be inundated with a big storm surge here, water coming through.

Now, the winds are only 50 miles per hour and this is not a category three hurricane. But the storm is still a tropical storm. It still has tropical storm force winds. In the overnight hours just around my hotel, winds were at least 30, maybe 45 miles per hour.

I'm in a protected zone right now, but as I get a little more rambunctious, we'll get around to the other side of the hotel and show you what the winds are doing, because they are now starting to blow in.

The only good news is this storm is still way offshore, almost 170 miles offshore, and it's coming in at about 16 miles per hour.

Here's some of the rainfall totals and some things of what's going on here as this storm just wraps itself up. We're going to start to push all of this moisture, this entire storm, right onshore. And as that happens, this rain is going to continue to come down. In fact, Carol, we've already seen significant signs of water on the roadways.

Here's tropical storm Bonnie now. The latest numbers from the Hurricane Center, winds at 50 miles per hour, moving northeast at 16. And there's the center, actually, almost directly south of Mobile Bay. And it will move right at this area. In fact, right at Panama City.

Here is the satellite picture. The satellite picture shows the big yellow exploding again in the overnight hours. We had a very disorganized storm at about three in the morning. The hurricane hunter aircraft in there looking at it. They still think it's disorganized, but there is still some potential for, say, strengthening before it hits land.

There you see all that orange from Panama City to Fort Walton Beach, right on up to Dolphin. Many of these areas have picked up three to four inches of rain already in the overnight hours. And they certainly don't need more, but they're going to get it.

And there is Charley. If you want to talk about a big orange blob, there he is, headed for Grand Cayman and Cayman Brac. Cayman Brac, the little island to the right; Grand Cayman the one a little bit off to the left. And then, of course, over toward Pinal Del Rio and then over toward Havana and even into Key West.

So this whole system, Rob Marciano is going to have that for you back at the studio, because he is going to focus on Charley, and we're going to see what's going on with Bonnie all day long -- Carol, back to you.

COSTELLO: All right, and we'll get back to you in a bit.

Thank you, Chad.

Let's talk about Charley for a second now. People in the Florida Keys are preparing for hurricane Charley's big hit. Tourists there are being told to leave ahead of the storm.

Reporter Ted Scouten of CNN affiliate WFOR in Key West has details for you. (BEGIN VIDEO TAPE)

TED SCOUTEN, WFOR CORRESPONDENT (voice-over): They're boarding up into the night all along Duval Street, preparing for the worst.

UNIDENTIFIED MALE: And we're just boarding up just in case the hurricane comes. If it hits us, we'll be ready and none of our merchandise will get destroyed or anything.

SCOUTEN: At Home Depot, people loaded up on plywood. It's the most popular aisle in the store, the crowds four deep.

UNIDENTIFIED MALE: Whatever happens, happens, you know? We're getting ready. I guess it's going to be a bad one.

SCOUTEN: And all is quiet at the port. It will officially close in the morning. No mega liners, no charters, no sunset cruisers and some boats have already pulled out.

UNIDENTIFIED FEMALE: We took both boats out of the water today, got them both up on dry dock and stripped them down completely and made sure everything was secured.

SCOUTEN: Flights are still coming in, but once the winds hit 40 miles per hour, the airport will close, too. Already hotels are telling guests they've been ordered to get out or sign a release that they ignored the official evacuation. Begrudgingly, many are leaving.

UNIDENTIFIED MALE: Spend the night, go out and party, probably leave tomorrow.

UNIDENTIFIED FEMALE: It's going to cut off a few days of our vacation and we've had this plan since February, so it's kind of disappointed.

(END VIDEO TAPE)

COSTELLO: I'm just getting word that hurricane warnings have now been issued for the Keys and parts of the southern coast of Florida.

Rob Marciano is up there in the Weather Center. He's tracking things. He's going to get to us, what, in about 10 minutes, to tell us more.

But hurricane warnings for the Keys and for the southern coast of Florida, so be careful out there.

And our thanks to Ted Scouten of CNN affiliate WFOR in Key West for the report you just heard.

For more on the double dose of storms heading Florida's way, click onto our Web site, cnn.com/weather. It has an extensive look at both storms, plus it offers some safety tips for you.

A major U.S. offensive under way in Najaf. Heavy fighting going on right now. Thousands of American troops are trying to dislodge militiamen loyal to a renegade Shiite cleric.

CNN's Matthew Chance is with U.S. Marines in Najaf.

He joins us live now with an update.

What exactly is happening there now?

MATTHEW CHANCE, CNN CORRESPONDENT: Carol, this is one of the biggest offensive operations on the part of the U.S. military for several months. Thousands of U.S. Marines and Army personnel are on the ground in and around Najaf, conducting offensive operations. Troops backed by tanks and armored vehicles and helicopter gunships in the skies unleashing awesome firepower against suspected strongholds of the Medhi Army, fighters loyal to the radical Shiite cleric Muqtada al-Sadr.

Much of the fighting still is concentrated around the old city of -- the holy city of Najaf, where there is a sacred mosque, the mosque of Imam Ali, one of the most sacred shrines in Shia Islam.

We understand in the last few hours at least 25 mortars have been fired by the insurgents camped in that mosque out of the mosque toward an Iraqi police station. They're causing significant damage and significant casualties.

Underlining, as well, just what kind of challenge is confronting the U.S. forces as they battle here in Najaf, it's being seen, this mosque, this holy sanctuary, as something of a red line for the U.S. forces, which they're extremely reluctant to cross. They're saying they don't intend to do it, in fact, at this stage.

But at the same time, they also say they're in constant communication with the Iraqi prime minister, Iyad Allawi, to get guidance on how to proceed with this.

For their part, the Iraqi government have expressed concern about U.S. forces entering such a holy Shiite shrine, fearful that it may start some kind of wider backlash. And what they are saying is that if any military action does take place to try and clear that mosque, then that military action will be taken by Iraqi security forces themselves -- Carol.

COSTELLO: You know, there was a quote from a Iraqi interior minister this morning, who said that these Iraqi security forces fighting alongside U.S. soldiers aren't really up to speed, aren't really all that trained. How much of a concern is that?

CHANCE: You know, I think it's a big concern amongst the U.S. military personnel here. They're very sensitive to the fact that if there is any military action that has to be taken in these sacred places, in many ways, the best people to do it would be the Iraqis themselves. That would cause less of a backlash.

But they're also saying that they're concerned because these Iraqi troops are neither well equipped or equipped enough or well enough trained in order to carry out that kind of a very difficult operation without possibly causing very grave damage to these ancient sites.

And so they're very concerned. I think what they'd like to happen is for them to stay away from the mosque altogether. If it continues to get attacked like this, 35 mortars, let's say, in the past few hours coming out from the center courtyard of the mosque itself, it's going to be very difficult for those troops on the ground and the Iraqi security forces, as well, to hold back from striking back.

COSTELLO: Matthew Chance live in Najaf.

Be careful out there.

Thank you so much for that report.

And, by the way, about 2,000 U.S. soldiers are fighting in and around Najaf and about 1,800 Iraqi security forces are fighting with them. We don't know how many insurgents there are within the city itself.

There is also reported fighting 100 miles southeast of Baghdad. Iraqi officials say insurgents and Medhi militia attacked government offices and police stations in Kut. At least 70 people have been killed, all of them Iraqis.

Here is more on the situation this morning in Iraq. Oil pipelines and port facilities in Basra are being threatened by Shiite militants. They've promised to blow them up if U.S. troops launch a major attack in Najaf.

Ahmad Chalabi of the Iraqi National Congress has returned to Iraq to face an arrest warrant. It charges him with counterfeiting. Chalabi has been in Iran.

Two U.S. Marines have been killed and three injured in a helicopter crash in the al-Anbar Province west of Baghdad. The cause of the crash being investigated, but no enemy fire was seen in the area.

And, of course, you can get the latest details on all of these stories surrounding Iraq on our Web site. The address, cnn.com/world.

The mistress as witness -- Scott Peterson's jury hears more love talk and lies on audiotape. A trial update from Ted Rowlands in nine minutes.

Five minutes later, the uprising in Iraq at a site that's both a stronghold and a sacred shrine with a bloody history. John Vause live in Baghdad with that report.

And know what bundling means? Our presidential candidates do. It means bundles of campaign cash. Lisa Sylvester has part three of The Best Government Money Can Buy in 37 minutes.

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

(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 about 6 points. The S&P 500 down 3 1/4 points. In markets overseas, Japan's Nikkei stock average closes down more than 21 points. Britain's FTSE Index gains almost 9 points and France's CAC is up nearly 31 points.

Your news, money, weather and sports.

It is 5:13 Eastern.

Here's what's all new this morning.

In Iraq, U.S. forces launch a full scale assault in Najaf to crush a week long uprising by followers of Shiite cleric Muqtada al- Sadr.

Hundreds of fighters are battling two fast moving northern California wildfires. Near Lake Shasta, 40 structures are damaged or destroyed and more than 100 residences evacuated.

In money news, mark downs are part of this toy store. Toys R Us is planning a $150 million toy liquidation in an effort to improve their bottom line. The company is also planning to spin-off its Babies R Us franchise.

In culture, a poem for you. Ted Kooser will be named a poet of much fame. The Nebraskan is getting set to become the country's new poet laureate.

In sports, sprinter Gail Devers is going to get a chance at her third Olympic gold in the 100 meters. Devers was chosen to replace Tory Edwards in the event. Edwards was banned after a positive drug test.

OK, we've got double team weather for you this morning.

Chad's out in Florida. Rob in the forecast center.

Let's start with Chad.

MYERS: Hey, good morning, Carol.

I didn't realize, the Olympics are going to start. Did you know that? We've been talking about that for a while.

Anyway, back to Bonnie. Bonnie has really calmed down a little bit here for us. Literally, we had bands coming in earlier with some thunder and lightning and I would say none of the crew got any sleep at all last night. The thunder and lightning was very vivid throughout the night. So residents here, they're probably a little bit weary this morning because they didn't get any sleep. And now the winds are going to begin to come in.

We don't have a lot of wind right now. Winds are only about, I'd say, maybe 15 or 20 miles per hour. But the winds offshore are much bigger than that.

Let me show you some of the graphics here. Here are the latest stats on Bonnie. Tropical storm Bonnie now 175 miles from Apalachicola. That's about 160 miles, maybe, from us, as the crow flies. Northeast wind at 16 miles per hour.

The satellite picture does show that this area of moisture, this area of orange beginning to get a little bit larger. We call it the nocturnal -- the duration or the nocturnal flare-up of storms, Carol. And this happens all the time in a hurricane, where a hurricane is always stronger in the morning than it was in the overnight hours. And that's what's happening now. So we're getting this buildup of storms around this country. And obviously we're going to get a buildup of wind, as well.

But we'll have more on Bonnie, because Charley is actually more of a concern to more of Florida than anybody else. And Rob has that.

COSTELLO: Yes, he certainly does.

And before we get to you, Rob, we want to tell our viewers, if you have questions about these hurricanes, send them to daybreak@cnn.com. We've got two weather guys to answer your questions this morning. So questions about the weather, daybreak@cnn.com.

So, Rob, take it away with Charley.

MARCIANO: OK, Carol.

Thanks very much.

We'll slide down the Florida Peninsula and the thing about Charley is that the angle that it's coming in, the forecast of where exactly it comes in during the daytime tomorrow, it could be -- it could vary quite a bit. So folks who live anywhere south and east of Tampa are going to be on your toes.

Right now, the latest from the 5:00 advisory shows a hurricane warning out from Bonita Beach south to the Florida Keys and the Seven Mile Bridge, meaning we expect hurricane conditions here in the next 24 to 48 hours. So we're getting more confident, at least, that the track of this thing will bring it across Cuba, across the Florida Keys and somewhere into the western part of Florida in the next 24 to 48 hours.

Here is the orange blob that Chad talked about in the western Caribbean. The Cayman Islands here, obviously Cuba, and it will continue this track off to the west/northwest and then eventually it will turn to the north as it gets caught up in the same jet stream that's affecting Bonnie at this point.

These are the latest. That's maximum winds of 85 miles an hour, Carol, but we expect this to strengthen to category two strength, meaning about 100 mile an hour winds and getting very close, if not a direct hit, possibly to Tampa during the daytime tomorrow. And as you may know, very low elevation there. The storm surge is going be a huge, huge factor. So this could be a potentially dangerous storm and we'll definitely keep an eye on it over the next two days -- back over to you.

COSTELLO: We sure will.

Thank you, Rob.

MARCIANO: You bet.

COSTELLO: 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 seize 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 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 has an update for you.

(BEGIN VIDEO TAPE)

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 VIDEO TAPE)

COSTELLO: That report from our Ted Rowlands.

Frey's attorney, by the way, Gloria Allred, says the most chilling part of the taped calls is when Peterson admits that his favorite movie is the horror movie "The Shining."

Still to come this morning, Najaf under fire -- U.S. forces launch a major offensive to crush militants loyal to a firebrand cleric. But dislodging him is one thing; doing it from a shrine another. We're live in Baghdad in two minutes.

You're watching DAYBREAK for a Thursday.

(COMMERCIAL BREAK)

COSTELLO: Amazing pictures this morning. Thick black smoke rising over Najaf as the U.S. military launches a major offensive on the city. They're trying to wrest control from the Medhi Army, which is loyal to coalition military authorities. The U.S. military has attacked parts of the city with tanks and heavy artillery. Helicopter gunships also keeping watch from the sky.

The battle for Najaf is taking a large toll on human life, but it may be property damage that draws the most anger.

For more on the situation in Najaf, we head live to Baghdad and CNN's John Vause -- good morning, John.

JOHN VAUSE, CNN CORRESPONDENT: Good morning, Carol.

The Iman Ali Mosque is a sacred piece of real estate, especially to Shia Muslims here in Iraq. And if Iraqi and U.S. forces are ever to crush this rebellion by Muqtada al-Sadr and his Medhi Army, it seems at the very least Iraqi forces will have to go into that mosque compound to do so. And when they do, it could cause a backlash around the Muslim world.

(BEGIN VIDEO TAPE) VAUSE (voice-over): Inside the shrine to Iman Ali in Najaf, the stronghold now of Shiite cleric Muqtada al-Sadr and his Medhi Army. These pictures appear to have been taken within the last month. The man to the right of screen only recently appointed as a senior aide to al-Sadr. U.S. military authorities allege the radical cleric used a six week cease-fire to stockpile weapons and ammunition inside the shrine.

This is a sacred site to Shia Muslims, the place where Ali, son- in-law and cousin of the Prophet Mohammed, is believed to be buried. Iraq's majority Shiite population believe Ali is the true and only successor to Mohammed.

DILIP HIRFO, AUTHOR, IRAQ: EYE OF THE STORM: Ali is important not only to the Shiites, but also to Sunnis. And this, where he's buried is, for the Shiites, is the most important holy site after Mecca, where Prophet Mohammed was born; Medina where Prophet Mohammed was buried. And number three is where Iman Ali is buried, in Najaf.

VAUSE: The shrine, with its golden bricks and dome, is in the center of Najaf's old town, a sprawling complex surrounded by walls more than 20 feet high. The vast cemetery outside is one of the biggest in the world, with as many as two million graves. Now it, too, has become a battlefield.

The shrine has a bloody history, dating back hundreds of years. More recently, Saddam Hussein sent his soldiers into the mosque to crush a Shiite uprising in 1991. Seven years later, he visited the mosque, an attempt to win support among Shia.

For the U.S. military, an assault on the compound could provoke widespread outrage from Muslims around the world.

HIRFO: So in that sense, you're attacking something as sacred as the Vatican or the Saint Mark's Square. And that will be the equivalent of Americans physically participating in attacking this shrine of Iman Ali in Najaf.

(END VIDEO TAPE)

VAUSE: And, Carol, we've heard from the Iraqi interior ministry a short time ago, saying if there is to be an offensive on the mosque, it will be led by Iraqi forces. But that may not quell the anger of those already sympathetic to Muqtada al-Sadr. And he is calling on his followers to continue fighting, even if he is killed or captured -- Carol.

COSTELLO: John Vause live in Baghdad this morning.

Thank you.

Let's look deeper into this battle for Najaf and what the implications are for Iraq as a whole and for the United States.

For that, we turn to military analyst Dan Plesch, author of "The Beauty Queen's Guide To World Peace." He joins us live from London this morning.

Thank you for joining us.

When we say launch a major offensive, what does that mean?

DAN PLESCH, MILITARY ANALYST: Well, the U.S. military are attempting to use the 11th Marine Expeditionary Unit, a force of around 2,000 soldiers and elements of the 1st Calvary Division in cooperation with the Iraqi National Guard to root out the al-Sadr militia and its supporters around the center of Najaf. That's the essence of it.

They're equipped with, as we've seen in the pictures, with very heavy weapons, Apache helicopters, tanks and so forth. But the question is what is the political objective here on the ground. Frankly, I think many people see this very much plays into al-Sadr's hands, going back to the attempted crackdown on him by Paul Bremer, which produced the uprising in April, after which he was allowed to remain as an actor, although the U.S. had said that they wanted to take him dead or alive. That was a major victory for him.

And this further attack frankly reminds me of nothing much more than, you may remember, Carol, the old Brer Rabbit stories, where Brer Rabbit is always going don't throw me in the briar patch. I think the U.S. military just threw al-Sadr in the briar patch.

COSTELLO: Do you think so? Because some analysts think Muqtada al-Sadr has over played his hands, because there's no way of knowing just how many men are out there fighting for him.

PLESCH: Well, I noticed a Marine captain, I think, quoted on one of the wire services this morning saying that it looked like al-Sadr's militia were cloning; that is, every time you kill some, more appear. I hope that isn't true, but the man, al-Sadr started off as very much a marginal figure in Iraqi politics. And the more he's been attacked and made the center of attention by the United States, the more he has grown in political support and stature.

And, indeed, the cease-fire, frankly, which was a victory for him given that he was still standing when the U.S. said they were going to destroy him, after that U.S. defeat, which is what it was, he was able to reequip and reorganize himself. And then we saw this extraordinary situation, from a tactical perspective, where the U.S. military gave 24 hours warning that they were going to attack. Now, one can understand that from a humanitarian perspective, but there must have been military people saying the last thing you want to do is to give up all element of surprise in a situation like this.

COSTELLO: Well, in fairness to the U.S....

PLESCH: And many British Army...

COSTELLO: In fairness to the U.S. military, though, there are a lot of civilians who live around there who had to actually flee when this intense fighting began. PLESCH: Well, indeed. But this is one of the real dilemmas of this sort of operation. I know that there are many within the British military, and perhaps in the American military, who doubt the wisdom of this kind of operation at all and the use of very heavy weapons in this sort of environment. And the use of much more light forces, snipers and so on, on a much more patient basis can be much more effective, particularly because even if you win the tactical battle on the ground, that is, you occupy a particular piece of territory, you lose the political battle because of the implications of being seen to crush relatively weak people with this massive force.

And from their perspective, and trying to put it into U.S. terms, it's a little like the fighting going on in the Arlington National Cemetery or in the cemetery at the National Cathedral. This is absolutely explosive stuff. And for many people, it doesn't matter who is doing the fighting. What matters is, on the Iraqi side, what matters is that there are foreigners fighting in our national shrines.

And, again, if you think about it in terms of fighting in the Iraqi national cemetery -- in Arlington National Cemetery, many people in the U.S. wouldn't care what the issues were. It just shouldn't be happening there.

COSTELLO: Dan Plesch joining us live from London.

Thank you.

(COMMERCIAL BREAK)

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Aired August 12, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Bracing for a one-two punch, a tropical storm aims for Florida's Panhandle and a hurricane threatens the Keys.
It is Thursday, August 12.

This is DAYBREAK.

And good morning to you.

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

Now in the news, thousands of U.S. troops are part of a major offensive in the Iraqi city of Najaf. It's happening right now. You're looking at pictures just in to CNN. You see the thick black smoke there. We'll have a live report out of Najaf in about five minutes.

Also, fighting under way in the city of al-Kut, about 100 miles south of Baghdad. Iraqi security forces are battling insurgents who attacked city hall, police stations and a national guard barracks.

And hundreds of firefighters are battling a fast moving blaze near northern California's Shasta Lake. The fire has already destroyed 40 structures and is threatening at least 300 more buildings. Residents have been evacuated from the resort area.

And the problem in Florida is not fire, it's water. Residents are boarding up as tropical storm Bonnie heads toward the Florida Panhandle and hurricane Charley is aiming for the Keys. Chad will join us live from Panama City Beach, Florida.

In fact, he's there right now.

And I see the rain coming down behind you -- Chad.

CHAD MYERS, CNN CORRESPONDENT: It is pouring down rain behind me, Carol, and it's just coming down everywhere. And that's what people here are most concerned about. There's very little land down here around Panama City, all the way from Apalachicola, for that matter, all the way back over to Destiny and Fort Walton Beach, and very little land. That's over about 10 feet high. All of this land is going to be inundated with a big storm surge here, water coming through.

Now, the winds are only 50 miles per hour and this is not a category three hurricane. But the storm is still a tropical storm. It still has tropical storm force winds. In the overnight hours just around my hotel, winds were at least 30, maybe 45 miles per hour.

I'm in a protected zone right now, but as I get a little more rambunctious, we'll get around to the other side of the hotel and show you what the winds are doing, because they are now starting to blow in.

The only good news is this storm is still way offshore, almost 170 miles offshore, and it's coming in at about 16 miles per hour.

Here's some of the rainfall totals and some things of what's going on here as this storm just wraps itself up. We're going to start to push all of this moisture, this entire storm, right onshore. And as that happens, this rain is going to continue to come down. In fact, Carol, we've already seen significant signs of water on the roadways.

Here's tropical storm Bonnie now. The latest numbers from the Hurricane Center, winds at 50 miles per hour, moving northeast at 16. And there's the center, actually, almost directly south of Mobile Bay. And it will move right at this area. In fact, right at Panama City.

Here is the satellite picture. The satellite picture shows the big yellow exploding again in the overnight hours. We had a very disorganized storm at about three in the morning. The hurricane hunter aircraft in there looking at it. They still think it's disorganized, but there is still some potential for, say, strengthening before it hits land.

There you see all that orange from Panama City to Fort Walton Beach, right on up to Dolphin. Many of these areas have picked up three to four inches of rain already in the overnight hours. And they certainly don't need more, but they're going to get it.

And there is Charley. If you want to talk about a big orange blob, there he is, headed for Grand Cayman and Cayman Brac. Cayman Brac, the little island to the right; Grand Cayman the one a little bit off to the left. And then, of course, over toward Pinal Del Rio and then over toward Havana and even into Key West.

So this whole system, Rob Marciano is going to have that for you back at the studio, because he is going to focus on Charley, and we're going to see what's going on with Bonnie all day long -- Carol, back to you.

COSTELLO: All right, and we'll get back to you in a bit.

Thank you, Chad.

Let's talk about Charley for a second now. People in the Florida Keys are preparing for hurricane Charley's big hit. Tourists there are being told to leave ahead of the storm.

Reporter Ted Scouten of CNN affiliate WFOR in Key West has details for you. (BEGIN VIDEO TAPE)

TED SCOUTEN, WFOR CORRESPONDENT (voice-over): They're boarding up into the night all along Duval Street, preparing for the worst.

UNIDENTIFIED MALE: And we're just boarding up just in case the hurricane comes. If it hits us, we'll be ready and none of our merchandise will get destroyed or anything.

SCOUTEN: At Home Depot, people loaded up on plywood. It's the most popular aisle in the store, the crowds four deep.

UNIDENTIFIED MALE: Whatever happens, happens, you know? We're getting ready. I guess it's going to be a bad one.

SCOUTEN: And all is quiet at the port. It will officially close in the morning. No mega liners, no charters, no sunset cruisers and some boats have already pulled out.

UNIDENTIFIED FEMALE: We took both boats out of the water today, got them both up on dry dock and stripped them down completely and made sure everything was secured.

SCOUTEN: Flights are still coming in, but once the winds hit 40 miles per hour, the airport will close, too. Already hotels are telling guests they've been ordered to get out or sign a release that they ignored the official evacuation. Begrudgingly, many are leaving.

UNIDENTIFIED MALE: Spend the night, go out and party, probably leave tomorrow.

UNIDENTIFIED FEMALE: It's going to cut off a few days of our vacation and we've had this plan since February, so it's kind of disappointed.

(END VIDEO TAPE)

COSTELLO: I'm just getting word that hurricane warnings have now been issued for the Keys and parts of the southern coast of Florida.

Rob Marciano is up there in the Weather Center. He's tracking things. He's going to get to us, what, in about 10 minutes, to tell us more.

But hurricane warnings for the Keys and for the southern coast of Florida, so be careful out there.

And our thanks to Ted Scouten of CNN affiliate WFOR in Key West for the report you just heard.

For more on the double dose of storms heading Florida's way, click onto our Web site, cnn.com/weather. It has an extensive look at both storms, plus it offers some safety tips for you.

A major U.S. offensive under way in Najaf. Heavy fighting going on right now. Thousands of American troops are trying to dislodge militiamen loyal to a renegade Shiite cleric.

CNN's Matthew Chance is with U.S. Marines in Najaf.

He joins us live now with an update.

What exactly is happening there now?

MATTHEW CHANCE, CNN CORRESPONDENT: Carol, this is one of the biggest offensive operations on the part of the U.S. military for several months. Thousands of U.S. Marines and Army personnel are on the ground in and around Najaf, conducting offensive operations. Troops backed by tanks and armored vehicles and helicopter gunships in the skies unleashing awesome firepower against suspected strongholds of the Medhi Army, fighters loyal to the radical Shiite cleric Muqtada al-Sadr.

Much of the fighting still is concentrated around the old city of -- the holy city of Najaf, where there is a sacred mosque, the mosque of Imam Ali, one of the most sacred shrines in Shia Islam.

We understand in the last few hours at least 25 mortars have been fired by the insurgents camped in that mosque out of the mosque toward an Iraqi police station. They're causing significant damage and significant casualties.

Underlining, as well, just what kind of challenge is confronting the U.S. forces as they battle here in Najaf, it's being seen, this mosque, this holy sanctuary, as something of a red line for the U.S. forces, which they're extremely reluctant to cross. They're saying they don't intend to do it, in fact, at this stage.

But at the same time, they also say they're in constant communication with the Iraqi prime minister, Iyad Allawi, to get guidance on how to proceed with this.

For their part, the Iraqi government have expressed concern about U.S. forces entering such a holy Shiite shrine, fearful that it may start some kind of wider backlash. And what they are saying is that if any military action does take place to try and clear that mosque, then that military action will be taken by Iraqi security forces themselves -- Carol.

COSTELLO: You know, there was a quote from a Iraqi interior minister this morning, who said that these Iraqi security forces fighting alongside U.S. soldiers aren't really up to speed, aren't really all that trained. How much of a concern is that?

CHANCE: You know, I think it's a big concern amongst the U.S. military personnel here. They're very sensitive to the fact that if there is any military action that has to be taken in these sacred places, in many ways, the best people to do it would be the Iraqis themselves. That would cause less of a backlash.

But they're also saying that they're concerned because these Iraqi troops are neither well equipped or equipped enough or well enough trained in order to carry out that kind of a very difficult operation without possibly causing very grave damage to these ancient sites.

And so they're very concerned. I think what they'd like to happen is for them to stay away from the mosque altogether. If it continues to get attacked like this, 35 mortars, let's say, in the past few hours coming out from the center courtyard of the mosque itself, it's going to be very difficult for those troops on the ground and the Iraqi security forces, as well, to hold back from striking back.

COSTELLO: Matthew Chance live in Najaf.

Be careful out there.

Thank you so much for that report.

And, by the way, about 2,000 U.S. soldiers are fighting in and around Najaf and about 1,800 Iraqi security forces are fighting with them. We don't know how many insurgents there are within the city itself.

There is also reported fighting 100 miles southeast of Baghdad. Iraqi officials say insurgents and Medhi militia attacked government offices and police stations in Kut. At least 70 people have been killed, all of them Iraqis.

Here is more on the situation this morning in Iraq. Oil pipelines and port facilities in Basra are being threatened by Shiite militants. They've promised to blow them up if U.S. troops launch a major attack in Najaf.

Ahmad Chalabi of the Iraqi National Congress has returned to Iraq to face an arrest warrant. It charges him with counterfeiting. Chalabi has been in Iran.

Two U.S. Marines have been killed and three injured in a helicopter crash in the al-Anbar Province west of Baghdad. The cause of the crash being investigated, but no enemy fire was seen in the area.

And, of course, you can get the latest details on all of these stories surrounding Iraq on our Web site. The address, cnn.com/world.

The mistress as witness -- Scott Peterson's jury hears more love talk and lies on audiotape. A trial update from Ted Rowlands in nine minutes.

Five minutes later, the uprising in Iraq at a site that's both a stronghold and a sacred shrine with a bloody history. John Vause live in Baghdad with that report.

And know what bundling means? Our presidential candidates do. It means bundles of campaign cash. Lisa Sylvester has part three of The Best Government Money Can Buy in 37 minutes.

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

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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 about 6 points. The S&P 500 down 3 1/4 points. In markets overseas, Japan's Nikkei stock average closes down more than 21 points. Britain's FTSE Index gains almost 9 points and France's CAC is up nearly 31 points.

Your news, money, weather and sports.

It is 5:13 Eastern.

Here's what's all new this morning.

In Iraq, U.S. forces launch a full scale assault in Najaf to crush a week long uprising by followers of Shiite cleric Muqtada al- Sadr.

Hundreds of fighters are battling two fast moving northern California wildfires. Near Lake Shasta, 40 structures are damaged or destroyed and more than 100 residences evacuated.

In money news, mark downs are part of this toy store. Toys R Us is planning a $150 million toy liquidation in an effort to improve their bottom line. The company is also planning to spin-off its Babies R Us franchise.

In culture, a poem for you. Ted Kooser will be named a poet of much fame. The Nebraskan is getting set to become the country's new poet laureate.

In sports, sprinter Gail Devers is going to get a chance at her third Olympic gold in the 100 meters. Devers was chosen to replace Tory Edwards in the event. Edwards was banned after a positive drug test.

OK, we've got double team weather for you this morning.

Chad's out in Florida. Rob in the forecast center.

Let's start with Chad.

MYERS: Hey, good morning, Carol.

I didn't realize, the Olympics are going to start. Did you know that? We've been talking about that for a while.

Anyway, back to Bonnie. Bonnie has really calmed down a little bit here for us. Literally, we had bands coming in earlier with some thunder and lightning and I would say none of the crew got any sleep at all last night. The thunder and lightning was very vivid throughout the night. So residents here, they're probably a little bit weary this morning because they didn't get any sleep. And now the winds are going to begin to come in.

We don't have a lot of wind right now. Winds are only about, I'd say, maybe 15 or 20 miles per hour. But the winds offshore are much bigger than that.

Let me show you some of the graphics here. Here are the latest stats on Bonnie. Tropical storm Bonnie now 175 miles from Apalachicola. That's about 160 miles, maybe, from us, as the crow flies. Northeast wind at 16 miles per hour.

The satellite picture does show that this area of moisture, this area of orange beginning to get a little bit larger. We call it the nocturnal -- the duration or the nocturnal flare-up of storms, Carol. And this happens all the time in a hurricane, where a hurricane is always stronger in the morning than it was in the overnight hours. And that's what's happening now. So we're getting this buildup of storms around this country. And obviously we're going to get a buildup of wind, as well.

But we'll have more on Bonnie, because Charley is actually more of a concern to more of Florida than anybody else. And Rob has that.

COSTELLO: Yes, he certainly does.

And before we get to you, Rob, we want to tell our viewers, if you have questions about these hurricanes, send them to daybreak@cnn.com. We've got two weather guys to answer your questions this morning. So questions about the weather, daybreak@cnn.com.

So, Rob, take it away with Charley.

MARCIANO: OK, Carol.

Thanks very much.

We'll slide down the Florida Peninsula and the thing about Charley is that the angle that it's coming in, the forecast of where exactly it comes in during the daytime tomorrow, it could be -- it could vary quite a bit. So folks who live anywhere south and east of Tampa are going to be on your toes.

Right now, the latest from the 5:00 advisory shows a hurricane warning out from Bonita Beach south to the Florida Keys and the Seven Mile Bridge, meaning we expect hurricane conditions here in the next 24 to 48 hours. So we're getting more confident, at least, that the track of this thing will bring it across Cuba, across the Florida Keys and somewhere into the western part of Florida in the next 24 to 48 hours.

Here is the orange blob that Chad talked about in the western Caribbean. The Cayman Islands here, obviously Cuba, and it will continue this track off to the west/northwest and then eventually it will turn to the north as it gets caught up in the same jet stream that's affecting Bonnie at this point.

These are the latest. That's maximum winds of 85 miles an hour, Carol, but we expect this to strengthen to category two strength, meaning about 100 mile an hour winds and getting very close, if not a direct hit, possibly to Tampa during the daytime tomorrow. And as you may know, very low elevation there. The storm surge is going be a huge, huge factor. So this could be a potentially dangerous storm and we'll definitely keep an eye on it over the next two days -- back over to you.

COSTELLO: We sure will.

Thank you, Rob.

MARCIANO: You bet.

COSTELLO: 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 seize 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 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 has an update for you.

(BEGIN VIDEO TAPE)

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 VIDEO TAPE)

COSTELLO: That report from our Ted Rowlands.

Frey's attorney, by the way, Gloria Allred, says the most chilling part of the taped calls is when Peterson admits that his favorite movie is the horror movie "The Shining."

Still to come this morning, Najaf under fire -- U.S. forces launch a major offensive to crush militants loyal to a firebrand cleric. But dislodging him is one thing; doing it from a shrine another. We're live in Baghdad in two minutes.

You're watching DAYBREAK for a Thursday.

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COSTELLO: Amazing pictures this morning. Thick black smoke rising over Najaf as the U.S. military launches a major offensive on the city. They're trying to wrest control from the Medhi Army, which is loyal to coalition military authorities. The U.S. military has attacked parts of the city with tanks and heavy artillery. Helicopter gunships also keeping watch from the sky.

The battle for Najaf is taking a large toll on human life, but it may be property damage that draws the most anger.

For more on the situation in Najaf, we head live to Baghdad and CNN's John Vause -- good morning, John.

JOHN VAUSE, CNN CORRESPONDENT: Good morning, Carol.

The Iman Ali Mosque is a sacred piece of real estate, especially to Shia Muslims here in Iraq. And if Iraqi and U.S. forces are ever to crush this rebellion by Muqtada al-Sadr and his Medhi Army, it seems at the very least Iraqi forces will have to go into that mosque compound to do so. And when they do, it could cause a backlash around the Muslim world.

(BEGIN VIDEO TAPE) VAUSE (voice-over): Inside the shrine to Iman Ali in Najaf, the stronghold now of Shiite cleric Muqtada al-Sadr and his Medhi Army. These pictures appear to have been taken within the last month. The man to the right of screen only recently appointed as a senior aide to al-Sadr. U.S. military authorities allege the radical cleric used a six week cease-fire to stockpile weapons and ammunition inside the shrine.

This is a sacred site to Shia Muslims, the place where Ali, son- in-law and cousin of the Prophet Mohammed, is believed to be buried. Iraq's majority Shiite population believe Ali is the true and only successor to Mohammed.

DILIP HIRFO, AUTHOR, IRAQ: EYE OF THE STORM: Ali is important not only to the Shiites, but also to Sunnis. And this, where he's buried is, for the Shiites, is the most important holy site after Mecca, where Prophet Mohammed was born; Medina where Prophet Mohammed was buried. And number three is where Iman Ali is buried, in Najaf.

VAUSE: The shrine, with its golden bricks and dome, is in the center of Najaf's old town, a sprawling complex surrounded by walls more than 20 feet high. The vast cemetery outside is one of the biggest in the world, with as many as two million graves. Now it, too, has become a battlefield.

The shrine has a bloody history, dating back hundreds of years. More recently, Saddam Hussein sent his soldiers into the mosque to crush a Shiite uprising in 1991. Seven years later, he visited the mosque, an attempt to win support among Shia.

For the U.S. military, an assault on the compound could provoke widespread outrage from Muslims around the world.

HIRFO: So in that sense, you're attacking something as sacred as the Vatican or the Saint Mark's Square. And that will be the equivalent of Americans physically participating in attacking this shrine of Iman Ali in Najaf.

(END VIDEO TAPE)

VAUSE: And, Carol, we've heard from the Iraqi interior ministry a short time ago, saying if there is to be an offensive on the mosque, it will be led by Iraqi forces. But that may not quell the anger of those already sympathetic to Muqtada al-Sadr. And he is calling on his followers to continue fighting, even if he is killed or captured -- Carol.

COSTELLO: John Vause live in Baghdad this morning.

Thank you.

Let's look deeper into this battle for Najaf and what the implications are for Iraq as a whole and for the United States.

For that, we turn to military analyst Dan Plesch, author of "The Beauty Queen's Guide To World Peace." He joins us live from London this morning.

Thank you for joining us.

When we say launch a major offensive, what does that mean?

DAN PLESCH, MILITARY ANALYST: Well, the U.S. military are attempting to use the 11th Marine Expeditionary Unit, a force of around 2,000 soldiers and elements of the 1st Calvary Division in cooperation with the Iraqi National Guard to root out the al-Sadr militia and its supporters around the center of Najaf. That's the essence of it.

They're equipped with, as we've seen in the pictures, with very heavy weapons, Apache helicopters, tanks and so forth. But the question is what is the political objective here on the ground. Frankly, I think many people see this very much plays into al-Sadr's hands, going back to the attempted crackdown on him by Paul Bremer, which produced the uprising in April, after which he was allowed to remain as an actor, although the U.S. had said that they wanted to take him dead or alive. That was a major victory for him.

And this further attack frankly reminds me of nothing much more than, you may remember, Carol, the old Brer Rabbit stories, where Brer Rabbit is always going don't throw me in the briar patch. I think the U.S. military just threw al-Sadr in the briar patch.

COSTELLO: Do you think so? Because some analysts think Muqtada al-Sadr has over played his hands, because there's no way of knowing just how many men are out there fighting for him.

PLESCH: Well, I noticed a Marine captain, I think, quoted on one of the wire services this morning saying that it looked like al-Sadr's militia were cloning; that is, every time you kill some, more appear. I hope that isn't true, but the man, al-Sadr started off as very much a marginal figure in Iraqi politics. And the more he's been attacked and made the center of attention by the United States, the more he has grown in political support and stature.

And, indeed, the cease-fire, frankly, which was a victory for him given that he was still standing when the U.S. said they were going to destroy him, after that U.S. defeat, which is what it was, he was able to reequip and reorganize himself. And then we saw this extraordinary situation, from a tactical perspective, where the U.S. military gave 24 hours warning that they were going to attack. Now, one can understand that from a humanitarian perspective, but there must have been military people saying the last thing you want to do is to give up all element of surprise in a situation like this.

COSTELLO: Well, in fairness to the U.S....

PLESCH: And many British Army...

COSTELLO: In fairness to the U.S. military, though, there are a lot of civilians who live around there who had to actually flee when this intense fighting began. PLESCH: Well, indeed. But this is one of the real dilemmas of this sort of operation. I know that there are many within the British military, and perhaps in the American military, who doubt the wisdom of this kind of operation at all and the use of very heavy weapons in this sort of environment. And the use of much more light forces, snipers and so on, on a much more patient basis can be much more effective, particularly because even if you win the tactical battle on the ground, that is, you occupy a particular piece of territory, you lose the political battle because of the implications of being seen to crush relatively weak people with this massive force.

And from their perspective, and trying to put it into U.S. terms, it's a little like the fighting going on in the Arlington National Cemetery or in the cemetery at the National Cathedral. This is absolutely explosive stuff. And for many people, it doesn't matter who is doing the fighting. What matters is, on the Iraqi side, what matters is that there are foreigners fighting in our national shrines.

And, again, if you think about it in terms of fighting in the Iraqi national cemetery -- in Arlington National Cemetery, many people in the U.S. wouldn't care what the issues were. It just shouldn't be happening there.

COSTELLO: Dan Plesch joining us live from London.

Thank you.

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