Return to Transcripts main page

CNN Live Today

Showdown in Najaf; Tropical Double-Header; Scott Peterson Trial

Aired August 12, 2004 - 10:59   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.


DARYN KAGAN, CNN ANCHOR: Let's take a look at the stories making news at this hour.
The battle for Najaf: thick black smoke rising over the Iraqi city. U.S. and Iraqi forces have launched a major offensive against militants loyal to Shiite cleric Muqtada al-Sadr. The Iraqi government reports intense fighting around Shiite holy sites, with Iraqi forces taking the lead.

Tropical Storm Bonnie barrels toward northwest Florida, while Hurricane Charley returns its way toward the Florida Keys. Forecasters have an update on the back-to-back storms this hour. We'll go live to Panama City and to the National Hurricane Center in Miami within about the next 15 minutes.

The military says a U.S. Marine was killed and 14 others were wounded in a helicopter crash in Afghanistan today. According to U.S. Central Command, no hostile fire was involved. The Black Hawk helicopter went down in the coast providence which borders Afghanistan.

A California Supreme Court ruling on same-sex marriages is expected in about two hours. The issue, whether San Francisco's mayor exceeded his authority by allowing such marriages. It's not clear whether the court will rule on the legality of more than 4,000 marriage licenses issued to same-sex couples.

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

We're just a minute past 11:00 a.m. on the East Coast, just past 8:00 on the West. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.

We begin this hour in Iraq. U.S. and Iraqi forces unleashed a fierce assault today against fighters loyal to Shiite cleric Muqtada al-Sadr. The promised crackdown comes down after a week of clashes in the city Najaf, home to the sacred Shiite shrine of the Iman Ali. Just moments ago, the Defense Department read a statement from interim Prime Minister Iyad Allawi.

(BEGIN VIDEO CLIP)

HAZAM SHAYALAN, IRAQI DEFENSE MINISTER (through translator): "Therefore, our government calls upon all the armed troops to drop their weapons and to return to the site. The political process is open for all, and everyone is invited to take part in it. We also hope -- we also call upon all (UNINTELLIGIBLE) to evacuate the holy shrine and not to violate its holiness."

(END VIDEO CLIP)

KAGAN: More now from our correspondent, Matthew Chance, who is inside Najaf. He's filed a late report on the showdown.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT: Well, fierce fighting in this, the latest phase of the offensive against the insurgents operating in the streets of Najaf. Thousands of U.S. troops backed by tanks and helicopter gunships have been raiding the positions of the Mehdi Army, forces loyal to the firebrand Shiite cleric, Muqtada al- Sadr.

There have been reports of clashes in several parts of the city, including nearby to the house of Muqtada al-Sadr himself. But also, reports of fighting in several areas, particularly around the Imam Ali Mosque, one of the holiest shrines, of course, in Shia Islam which has been the scene of confrontation for the past week or so.

We're told that in the space of 10 minutes insurgents inside that mosque fired at least 25 mortar rounds on to a close-by Iraqi police post, causing significant damage and serious injuries to some as well. And that really underlines the problems here in Najaf, certainly for U.S. forces.

They do have these militants holed up in certain sacred sites. They consider entering those sites a red lion. And so it's becoming very difficult to deal with those militants, those members of the Mehdi Army in places like the Imam Ali Mosque.

One of the options that's being considered is to get Iraqi forces to go in there and to root out those insurgents. That's something that's being considered as an option, but no decision has yet been taken as to whether or not to storm the mosque of Imam Ali or any of the other sacred sites in Najaf.

Matthew Chance, CNN, Najaf.

(END VIDEOTAPE)

KAGAN: And those are live pictures we're showing you from Najaf. You can see the black smoke rising from the site in the middle of the city. The battle going on. No end in sight. We'll continue to bring in live pictures and monitor what is taking place in the southern Iraqi city of Najaf.

There is more fighting in a different part of Iraq. Insurgents in the city of Al-Kut attacked city hall and police stations today. Iraqi security forces fought back. They've arrested around 100 members of the al-Sadr militia.

Now we want to focus here in the U.S. to the tropical double- header that is threatening Florida, from the Panhandle to the Keys. Tropical Storm Bonnie is expected to make landfall along the Panhandle this afternoon. Forecasters say the storm could dump four to six inches of rain along its path.

Meanwhile, Hurricane Charley is headed toward the Cayman Islands and the Florida Keys, with winds already at 85 miles per hour. We have extensive coverage of the storms throughout the hour. Reporter Eric Philips is in Panama City awaiting Bonnie's arrival, and meteorologist Orelon Sidney is tracking the storms.

Eric, we start with you, where things look pretty sunny and dry right now.

ERIC PHILIPS, CNN CORRESPONDENT: Daryn, good morning to you.

I can say that it is sunny and dry here. As a matter of fact, just a few minutes before this live shot, it's like the sun came out. It looks like a beautiful sunny day here at Panama City Beach. But what we've seen during the day off and on is rain showers coming down, followed by gusting winds blowing, followed by no wind at all.

You can tell there's some people out here on the beach just kind of enjoying themselves right now. I'm telling you, it's been an off and on type of situation here all day long. But forecasters are still saying that right now this is just the calm before the storm here at Panama City Beach.

As a matter of fact, we're understanding that just a few moments ago Tropical Storm Bonnie did reach landfall at Apalachicola, Florida, which means that it should be on its way here, moving at about 22 miles an hour. So while it's sunny and nice right now, we are expecting to see the situation deteriorate in the coming hours.

KAGAN: Eric, the winds don't look that bad. But as the situation does kind of go downhill, I think the big problem we've been hearing most about is flooding. What are residents doing to get ready for that?

PHILIPS: Well, certainly flooding is the biggest concern here in the Panhandle because already another system over the last week or so dumped lots of rain in this area. So what you have is a situation where the grounded is saturated, and then Bonnie coming and threatening to dump another four to six inches of rain on top of that. Certainly flooding is a big deal.

So residents and officials here in the Panhandle have been trying to prepare for that, trying to sort of board up, and trying to sandbag and make sure they're preparing for any type of possible flooding. If it's really a big deal, and you're in a very low-lying area, officials are suggesting that you might want to evacuate if you don't feel comfortable.

They're not making it mandatory or anything. They're just saying, if you're not comfortable, perhaps you want to consider evacuation. But I can tell you, most people here in Panama City Beach have decided -- that live here, that is -- have decided to stay here and see this thing through, knowing that they've seen much worse come through here before. A lot of tourists, vacationers have chosen to evacuate. Many chose not to come at all. The hotel where we're staying, we checked in last night. They were expecting about 160 people to check in. Only about 40 people checked in. Everyone else canceled, if that gives you any indication.

KAGAN: All right. Well, you're not going anywhere. You're staying put, or you're going to chase the storm?

PHILIPS: Absolutely.

KAGAN: OK. We'll check back with you, Eric Philips, in Panama City.

Now, we did learn in the last hour, Orelon Sidney was poing out, do not be fooled by the sunshine in certain parts of Florida. That's actually an indication of what is on the way.

Here's Orelon with more on that.

ORELON SIDNEY, CNN METEOROLOGIST: Thanks a lot.

It looks like it's going to be a very, very busy afternoon. We of course have Bonnie to watch here. We have Charley here, a little bit to the south.

Now, Bonnie has actually made landfall around Cape San Blas. That's that little tip right there on the Florida Panhandle, just to the west of Apalachicola, which is about here. So the center of the circulation is now moving onshore.

Again, I just don't want you to get fooled by that, because where the center of the storm comes in, in a storm like this, isn't as important. Because there's no eye wall, there's no really gusty winds around the center, what you're going to find on the eastern side of the storm is lots of thunderstorms, lots of rainfall, and the potential for tornadoes.

We have one tornado watch box that's out now, southern Georgia, northern parts of Florida, until 2:00 p.m. Eastern Time. Storm Prediction Center may be putting out another watch box here further to the north. That will encompass places like Charleston, Augusta, and perhaps even back down towards the Jacksonville area, overlapping.

Here are the current coordinates now on Bonnie. She is inland just about 18 miles from Apalachicola, 50 mile-an-hour winds moving northeast. Look at this, 27 miles an hour. It's really getting caught up in that upper level trough.

And, again, the rain is going to be the big story. So we're looking at watches and warnings probably later this afternoon for heavy rain across much of the Southeast.

Here's the deal now. Here is the storm. And look at this big dip in the jet stream. You usually you don't see this this time of year. It's more like a fall-type system. And this is what's going to pick up the storm and start accelerating it rapidly off to the Northeast. The good news here is that this trough will be advancing eastward and will push the storm more towards the coast.

So it's not going to be something that's going to bring a lot of rain to the Appalachians and inland. It's going to be mostly along the coast. But those areas do you have to watch out for some very heavy rain.

Now, here's Charley. We've updated that as well. The winds are now up to 90 miles an hour in Charley. You may see some fluctuations now as it starts to move across Cuba, heading towards the Florida Keys, 337 miles now from Key West. Again, maximum winds at 90 miles an hour make it a Category One storm currently, but there is the potential for this to strengthen.

In fact, not just the potential, but the expectation that this storm will strengthen from Category One. If it went inland now, you would expect minor coastal flooding and very limited structure damage. But, once again, we do expect this to increase in strength before it moves across the Florida Keys tomorrow -- Daryn.

KAGAN: All right. Orelon, thank you. Back with you later in the hour.

SIDNEY: You're welcome.

KAGAN: Meanwhile, more coverage of the storms just ahead, 11:15 Eastern. We'll go live to the National Hurricane Center. Our Ed Lavandera reports from Clearwater, Florida, at 11:30 Eastern.

Let's head westward, a totally different type of problem, to Shasta Lake, California. Sparks from a lawn mower are blamed for igniting this inferno. Shifting winds and temperatures near 100 degrees have helped push the fire across 3,000 acres.

And people had to flee by boat as the flames encroached on the area. At least 40 structures have been destroyed. Many of them homes. Crews are also battling two other major fires in California.

Sex, lies and audio tape. Up next, the other woman once again takes the stand, and Scott Peterson's own words may be the prosecution's best weapon. We're live, coming up next.

Also, a new reality show is giving contestants a chance to win green. Not money, but a green card. We'll show you how.

And as Tropical Storm Bonnie moves ashore, we continue tracking an even bigger threat, Hurricane Charley. We're live from Florida when CNN LIVE TODAY returns.

(COMMERCIAL BREAK)

RHONDA SCHAFFLER, CNN CORRESPONDENT: I'm Rhonda Schaffler at the New York Stock Exchange, where stocks are sinking on more bad news from the technology sector and ever-higher oil prices. Hewlett- Packard reported weaker-than-expected quarterly results. The computer and printer maker also warns that its results in the current quarter will fall short of expectations. Hewlett shares sinking more than $3 or about 16 percent.

Meanwhile, crude oil is back above $45 a barrel. That's hurting investor sentiment as well.

Here are the latest numbers for you. Dow Jones industrial average off its worse levels in session, but still down close to 60 points. And the Nasdaq is down eight-tenths of a percent, it's lowest level in 11 months.

That's the very latest from here on Wall Street. LIVE TODAY continues right after this.

(COMMERCIAL BREAK)

KAGAN: It is a third day on the stand for the other woman, Amber Frey, in the Scott Peterson double murder trial. Our Rusty Dornin joins us from the courthouse in Redwood City, California.

Rusty, good morning.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Daryn, you know, we've heard hours of conversation between Amber Frey and Scott Peterson, much of it seeming like idle chitchat between two love-struck teenagers.

Scott Peterson comes across as cool, calm and collected, even as he's cooing promises of a future with Frey. Prosecution are hoping the jury sees that as a rather cavalier attitude, keeping in mind that during these conversations there was the search for Laci Peterson in full swing. They also want the jury to believe that for Scott Peterson, Amber Frey was more than just a passing fancy.

(BEGIN VIDEOTAPE)

DORNIN (voice-over): Jurors heard more lies on audio tape as the court played several phone conversations between Scott Peterson and Amber Frey in the days following his wife Laci's disappearance, taped by police after Frey learned the truth about Peterson. In several phone calls, he pretends to be in Europe. Frey plays along with his deceit and says she was even coached by investigators to push Peterson on certain suggests.

On New Year's, Peterson claims to be in Paris. He told Frey they had a long future together. "You know, in my mind, we could have a wonderful life together. I could care for you in any way and every way for the rest of our lives." Frey's attorney says those words of love will be tough for the Scott Peterson team to tear down on cross- examination.

GLORIA ALLRED, AMBER FREY'S ATTORNEY: For the defense, who may choose to try to minimize the relationship and suggest that he was not hoping or planning for a future with her, I think that Scott's words on the tapes speak for themselves.

DORNIN: During one of the calls he asked Frey if she'd been watching the news and had she heard about a bombing in Paris. When she hadn't, he assured her he was fine. During the calls, some lasting more than an hour, both the jury and Scott Peterson can be seen intently following the written transcripts as the tapes are played in court.

(END VIDEOTAPE)

DORNIN: And even at times spectators and jurors have chuckled over some of these exchanges on these phone calls. But we're going to be hearing some more tension interjected into these phone calls as we are approaching the date where Scott Peterson does tell Amber Frey who he is and that his wife is the one that is missing and all over the news. Now, we are also -- she is telling police right after that that she wants to be taken into protective custody because she fears what might happen as the result -- Daryn.

KAGAN: Rusty Dornin, in Redwood City, thank you.

Let's get an update now on Tropical Storm Bonnie and Hurricane Charley. Ed Rappaport is deputy director of the National Hurricane Center. He joins us from Miami.

Ed, good morning.

ED RAPPAPORT, NATIONAL HURRICANE CENTER: Good morning.

KAGAN: Give us the latest, please, on each storm.

RAPPAPORT: Well, we do have the two systems, still. We have Tropical Storm Bonnie, which is now making landfall over the Florida Panhandle with winds of about 50 miles per hour, and we have Hurricane Charley down to the southeast.

If you look a little more closely at Bonnie, the center of Bonnie is coming ashore near Apalachicola, Florida. Most of the heavy weather, which in this case is rain, is well in front. So the worst of the conditions are beginning to move onshore now.

If we go to Charley, we can see also a radar view. This coming out of Cuba. You can see the center very well defined for this hurricane.

Winds are now up to about 90 miles an hour. That's Category One. Expect Charley to turn towards the north and threaten the Florida Keys and Florida peninsula in the next 24 hours.

KAGAN: And by the time that Charley does hit the U.S., what strength do you expect it to be?

RAPPAPORT: We're forecasting Charley to strengthen further, to be Category Two, perhaps Category Three at landfall. And that could push a storm surge on the order of 10 feet into the Florida west coast. KAGAN: You'll be tracking it. Definitely a busy time at the National Hurricane Center. Ed, thank you for your time and the latest information.

Coming up, it is a game show where you have to work for your prize. And your prize is a chance to work here in the U.S.

John Kerry goes West, while George W. Bush drops the campaign slogan. The morning's most complete political wrap-up is coming up.

(COMMERCIAL BREAK)

KAGAN: A California teenager critically wounded by a handgun a decade ago today is bidding on the assets of the bankrupt gun maker. Brandon Maxwell is now 17. He's raised about $175,000, mostly through an Internet campaign. If it's successful, he plans to have the gun- making parts melted down.

Last year, the teenager won a $24 million judgment against Brico (ph) firearms. He was disabled when a Brico (ph) handgun misfired.

Just when you thought reality television couldn't get any closer to the edge of the cliff, along comes a show with immigrants, some of them illegal, competing for a chance at a green card. Now, we need to caution some viewers. Some of the footage we're about to show you might be disturbing. Here now, financial correspondent Peter Viles.

(BEGIN VIDEOTAPE)

PETER VILES, CNN FINANCIAL CORRESPONDENT (voice-over): Behind the scenes at the hottest new reality TV show in Los Angeles. Like "Fear Factor," it's a contest to eat disgusting food. Today, nachos with duck embryos.

UNIDENTIFIED MALE: Seis, dos, uno (UNINTELLIGIBLE).

VILES: But there's a bizarre twist in "Gana la Verde." The prize isn't money, it's the hope of a green card, which means legal residency. Winners receive free legal advice from an immigration lawyer, which means some of the contestants are illegal aliens. This is how the show begins.

Contests include risky stunts, jumping from one speeding truck to another, jumping from one speeding boat to another, fending off attack dogs, climbing down the side of a cliff. And, of course, there's food. Contestants have eaten worms, and burritos stuffed with pig intestines, and a plateful of scorpions.

(on camera): And "Gana la Verde" is only broadcast in four American cities right now, and yet it's already a huge ratings hit. In Los Angeles alone, it's now reaching a weekly audience of one million viewers.

(voice-over): And it is causing controversy. Critics say the show offers false hope to immigrants while humiliating them and exposing them to legal action. CARL SHUSTERMAN, IMMIGRATION ATTORNEY: And as an ex-INS prosecutor, I think it's totally bizarre. It's like, here I am, I'm illegal, come and get me.

Unfortunately for them, the criteria for getting a green card is not determined by how many worms or scorpions that you eat. It's determined whether you have relatives who are U.S. citizens who can apply for you.

VILES: The creator of the program says no laws are being broken and no one is being misled about the ultimate prize.

LENARD LIBERMAN, LIBERMAN BROADCASTING: No one says if you participate and do these things you have a green card. We're very up front and very honest and explain, "We're here to help you. We want to provide a service which is very valuable to you." But I wonder if those critics would say things if we brought in a breast implant or a toaster oven? That would be a better prize?

VILES: The federal government is not amused. In a statement, Immigration and Customs enforcement tell CNN, "Exploiting individual hopes and creating inaccurate expectations can lead the public to believe that legal immigration benefits can easily be acquired by anyone, which is not the case."

And not all contestants are illegal. Some are students, some are trying to win green cards for relatives. In any event, the station says thousands of people are now lining up to appear on this show.

Peter Viles, CNN, Burbank, California.

(END VIDEOTAPE)

KAGAN: Speaking of Burbank, are you eating your breakfast there on the West Coast? If so, we apologize if that didn't help everything go down so easily.

We are bracing for the one-two tropical punch. Up next, we are live along Florida's west coast, where one storm's moving in and another even more dangerous system is taking aim at another area of the state.

And U.S. forces on the attack in Najaf. The latest pictures and information coming up next.

CNN LIVE TODAY is back after this.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan in Atlanta. Let's take a look at the stories "Now in the News." This is Thursday, August 12.

U.S. and Iraqi forces opened a major assault on rebels in the Iraqi city of Najaf today. CNN correspondent Matthew Chance says the tanks, heavy weapons and helicopter gunships are part of the arsenal. Rain and winds from Tropical Storm Bonnie are lashing the Florida Panhandle this morning as the storm nears shore. At last check, top winds for Bonnie were at about 50 miles an hour.

Two fast-moving wildfires in northern California have damaged or destroyed 40 structures. More than 100 people have fled their homes as the flames come closer.

And Defense Secretary Donald Rumsfeld is raising red flags about Iran's nuclear ambitions. On a stop in (UNINTELLIGIBLE), Rumsfeld warned nuclear material from Iran could fall into the hands of terrorists.

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

Forecasters say Hurricane Charley could be a Category Two or Category Three storm by the time it makes landfall. Florida emergency officials now say Charley could come ashore in the Tampa area within the next 24 hours. They are urging residents there to be prepared.

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 - 10:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Let's take a look at the stories making news at this hour.
The battle for Najaf: thick black smoke rising over the Iraqi city. U.S. and Iraqi forces have launched a major offensive against militants loyal to Shiite cleric Muqtada al-Sadr. The Iraqi government reports intense fighting around Shiite holy sites, with Iraqi forces taking the lead.

Tropical Storm Bonnie barrels toward northwest Florida, while Hurricane Charley returns its way toward the Florida Keys. Forecasters have an update on the back-to-back storms this hour. We'll go live to Panama City and to the National Hurricane Center in Miami within about the next 15 minutes.

The military says a U.S. Marine was killed and 14 others were wounded in a helicopter crash in Afghanistan today. According to U.S. Central Command, no hostile fire was involved. The Black Hawk helicopter went down in the coast providence which borders Afghanistan.

A California Supreme Court ruling on same-sex marriages is expected in about two hours. The issue, whether San Francisco's mayor exceeded his authority by allowing such marriages. It's not clear whether the court will rule on the legality of more than 4,000 marriage licenses issued to same-sex couples.

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

We're just a minute past 11:00 a.m. on the East Coast, just past 8:00 on the West. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.

We begin this hour in Iraq. U.S. and Iraqi forces unleashed a fierce assault today against fighters loyal to Shiite cleric Muqtada al-Sadr. The promised crackdown comes down after a week of clashes in the city Najaf, home to the sacred Shiite shrine of the Iman Ali. Just moments ago, the Defense Department read a statement from interim Prime Minister Iyad Allawi.

(BEGIN VIDEO CLIP)

HAZAM SHAYALAN, IRAQI DEFENSE MINISTER (through translator): "Therefore, our government calls upon all the armed troops to drop their weapons and to return to the site. The political process is open for all, and everyone is invited to take part in it. We also hope -- we also call upon all (UNINTELLIGIBLE) to evacuate the holy shrine and not to violate its holiness."

(END VIDEO CLIP)

KAGAN: More now from our correspondent, Matthew Chance, who is inside Najaf. He's filed a late report on the showdown.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT: Well, fierce fighting in this, the latest phase of the offensive against the insurgents operating in the streets of Najaf. Thousands of U.S. troops backed by tanks and helicopter gunships have been raiding the positions of the Mehdi Army, forces loyal to the firebrand Shiite cleric, Muqtada al- Sadr.

There have been reports of clashes in several parts of the city, including nearby to the house of Muqtada al-Sadr himself. But also, reports of fighting in several areas, particularly around the Imam Ali Mosque, one of the holiest shrines, of course, in Shia Islam which has been the scene of confrontation for the past week or so.

We're told that in the space of 10 minutes insurgents inside that mosque fired at least 25 mortar rounds on to a close-by Iraqi police post, causing significant damage and serious injuries to some as well. And that really underlines the problems here in Najaf, certainly for U.S. forces.

They do have these militants holed up in certain sacred sites. They consider entering those sites a red lion. And so it's becoming very difficult to deal with those militants, those members of the Mehdi Army in places like the Imam Ali Mosque.

One of the options that's being considered is to get Iraqi forces to go in there and to root out those insurgents. That's something that's being considered as an option, but no decision has yet been taken as to whether or not to storm the mosque of Imam Ali or any of the other sacred sites in Najaf.

Matthew Chance, CNN, Najaf.

(END VIDEOTAPE)

KAGAN: And those are live pictures we're showing you from Najaf. You can see the black smoke rising from the site in the middle of the city. The battle going on. No end in sight. We'll continue to bring in live pictures and monitor what is taking place in the southern Iraqi city of Najaf.

There is more fighting in a different part of Iraq. Insurgents in the city of Al-Kut attacked city hall and police stations today. Iraqi security forces fought back. They've arrested around 100 members of the al-Sadr militia.

Now we want to focus here in the U.S. to the tropical double- header that is threatening Florida, from the Panhandle to the Keys. Tropical Storm Bonnie is expected to make landfall along the Panhandle this afternoon. Forecasters say the storm could dump four to six inches of rain along its path.

Meanwhile, Hurricane Charley is headed toward the Cayman Islands and the Florida Keys, with winds already at 85 miles per hour. We have extensive coverage of the storms throughout the hour. Reporter Eric Philips is in Panama City awaiting Bonnie's arrival, and meteorologist Orelon Sidney is tracking the storms.

Eric, we start with you, where things look pretty sunny and dry right now.

ERIC PHILIPS, CNN CORRESPONDENT: Daryn, good morning to you.

I can say that it is sunny and dry here. As a matter of fact, just a few minutes before this live shot, it's like the sun came out. It looks like a beautiful sunny day here at Panama City Beach. But what we've seen during the day off and on is rain showers coming down, followed by gusting winds blowing, followed by no wind at all.

You can tell there's some people out here on the beach just kind of enjoying themselves right now. I'm telling you, it's been an off and on type of situation here all day long. But forecasters are still saying that right now this is just the calm before the storm here at Panama City Beach.

As a matter of fact, we're understanding that just a few moments ago Tropical Storm Bonnie did reach landfall at Apalachicola, Florida, which means that it should be on its way here, moving at about 22 miles an hour. So while it's sunny and nice right now, we are expecting to see the situation deteriorate in the coming hours.

KAGAN: Eric, the winds don't look that bad. But as the situation does kind of go downhill, I think the big problem we've been hearing most about is flooding. What are residents doing to get ready for that?

PHILIPS: Well, certainly flooding is the biggest concern here in the Panhandle because already another system over the last week or so dumped lots of rain in this area. So what you have is a situation where the grounded is saturated, and then Bonnie coming and threatening to dump another four to six inches of rain on top of that. Certainly flooding is a big deal.

So residents and officials here in the Panhandle have been trying to prepare for that, trying to sort of board up, and trying to sandbag and make sure they're preparing for any type of possible flooding. If it's really a big deal, and you're in a very low-lying area, officials are suggesting that you might want to evacuate if you don't feel comfortable.

They're not making it mandatory or anything. They're just saying, if you're not comfortable, perhaps you want to consider evacuation. But I can tell you, most people here in Panama City Beach have decided -- that live here, that is -- have decided to stay here and see this thing through, knowing that they've seen much worse come through here before. A lot of tourists, vacationers have chosen to evacuate. Many chose not to come at all. The hotel where we're staying, we checked in last night. They were expecting about 160 people to check in. Only about 40 people checked in. Everyone else canceled, if that gives you any indication.

KAGAN: All right. Well, you're not going anywhere. You're staying put, or you're going to chase the storm?

PHILIPS: Absolutely.

KAGAN: OK. We'll check back with you, Eric Philips, in Panama City.

Now, we did learn in the last hour, Orelon Sidney was poing out, do not be fooled by the sunshine in certain parts of Florida. That's actually an indication of what is on the way.

Here's Orelon with more on that.

ORELON SIDNEY, CNN METEOROLOGIST: Thanks a lot.

It looks like it's going to be a very, very busy afternoon. We of course have Bonnie to watch here. We have Charley here, a little bit to the south.

Now, Bonnie has actually made landfall around Cape San Blas. That's that little tip right there on the Florida Panhandle, just to the west of Apalachicola, which is about here. So the center of the circulation is now moving onshore.

Again, I just don't want you to get fooled by that, because where the center of the storm comes in, in a storm like this, isn't as important. Because there's no eye wall, there's no really gusty winds around the center, what you're going to find on the eastern side of the storm is lots of thunderstorms, lots of rainfall, and the potential for tornadoes.

We have one tornado watch box that's out now, southern Georgia, northern parts of Florida, until 2:00 p.m. Eastern Time. Storm Prediction Center may be putting out another watch box here further to the north. That will encompass places like Charleston, Augusta, and perhaps even back down towards the Jacksonville area, overlapping.

Here are the current coordinates now on Bonnie. She is inland just about 18 miles from Apalachicola, 50 mile-an-hour winds moving northeast. Look at this, 27 miles an hour. It's really getting caught up in that upper level trough.

And, again, the rain is going to be the big story. So we're looking at watches and warnings probably later this afternoon for heavy rain across much of the Southeast.

Here's the deal now. Here is the storm. And look at this big dip in the jet stream. You usually you don't see this this time of year. It's more like a fall-type system. And this is what's going to pick up the storm and start accelerating it rapidly off to the Northeast. The good news here is that this trough will be advancing eastward and will push the storm more towards the coast.

So it's not going to be something that's going to bring a lot of rain to the Appalachians and inland. It's going to be mostly along the coast. But those areas do you have to watch out for some very heavy rain.

Now, here's Charley. We've updated that as well. The winds are now up to 90 miles an hour in Charley. You may see some fluctuations now as it starts to move across Cuba, heading towards the Florida Keys, 337 miles now from Key West. Again, maximum winds at 90 miles an hour make it a Category One storm currently, but there is the potential for this to strengthen.

In fact, not just the potential, but the expectation that this storm will strengthen from Category One. If it went inland now, you would expect minor coastal flooding and very limited structure damage. But, once again, we do expect this to increase in strength before it moves across the Florida Keys tomorrow -- Daryn.

KAGAN: All right. Orelon, thank you. Back with you later in the hour.

SIDNEY: You're welcome.

KAGAN: Meanwhile, more coverage of the storms just ahead, 11:15 Eastern. We'll go live to the National Hurricane Center. Our Ed Lavandera reports from Clearwater, Florida, at 11:30 Eastern.

Let's head westward, a totally different type of problem, to Shasta Lake, California. Sparks from a lawn mower are blamed for igniting this inferno. Shifting winds and temperatures near 100 degrees have helped push the fire across 3,000 acres.

And people had to flee by boat as the flames encroached on the area. At least 40 structures have been destroyed. Many of them homes. Crews are also battling two other major fires in California.

Sex, lies and audio tape. Up next, the other woman once again takes the stand, and Scott Peterson's own words may be the prosecution's best weapon. We're live, coming up next.

Also, a new reality show is giving contestants a chance to win green. Not money, but a green card. We'll show you how.

And as Tropical Storm Bonnie moves ashore, we continue tracking an even bigger threat, Hurricane Charley. We're live from Florida when CNN LIVE TODAY returns.

(COMMERCIAL BREAK)

RHONDA SCHAFFLER, CNN CORRESPONDENT: I'm Rhonda Schaffler at the New York Stock Exchange, where stocks are sinking on more bad news from the technology sector and ever-higher oil prices. Hewlett- Packard reported weaker-than-expected quarterly results. The computer and printer maker also warns that its results in the current quarter will fall short of expectations. Hewlett shares sinking more than $3 or about 16 percent.

Meanwhile, crude oil is back above $45 a barrel. That's hurting investor sentiment as well.

Here are the latest numbers for you. Dow Jones industrial average off its worse levels in session, but still down close to 60 points. And the Nasdaq is down eight-tenths of a percent, it's lowest level in 11 months.

That's the very latest from here on Wall Street. LIVE TODAY continues right after this.

(COMMERCIAL BREAK)

KAGAN: It is a third day on the stand for the other woman, Amber Frey, in the Scott Peterson double murder trial. Our Rusty Dornin joins us from the courthouse in Redwood City, California.

Rusty, good morning.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Daryn, you know, we've heard hours of conversation between Amber Frey and Scott Peterson, much of it seeming like idle chitchat between two love-struck teenagers.

Scott Peterson comes across as cool, calm and collected, even as he's cooing promises of a future with Frey. Prosecution are hoping the jury sees that as a rather cavalier attitude, keeping in mind that during these conversations there was the search for Laci Peterson in full swing. They also want the jury to believe that for Scott Peterson, Amber Frey was more than just a passing fancy.

(BEGIN VIDEOTAPE)

DORNIN (voice-over): Jurors heard more lies on audio tape as the court played several phone conversations between Scott Peterson and Amber Frey in the days following his wife Laci's disappearance, taped by police after Frey learned the truth about Peterson. In several phone calls, he pretends to be in Europe. Frey plays along with his deceit and says she was even coached by investigators to push Peterson on certain suggests.

On New Year's, Peterson claims to be in Paris. He told Frey they had a long future together. "You know, in my mind, we could have a wonderful life together. I could care for you in any way and every way for the rest of our lives." Frey's attorney says those words of love will be tough for the Scott Peterson team to tear down on cross- examination.

GLORIA ALLRED, AMBER FREY'S ATTORNEY: For the defense, who may choose to try to minimize the relationship and suggest that he was not hoping or planning for a future with her, I think that Scott's words on the tapes speak for themselves.

DORNIN: During one of the calls he asked Frey if she'd been watching the news and had she heard about a bombing in Paris. When she hadn't, he assured her he was fine. During the calls, some lasting more than an hour, both the jury and Scott Peterson can be seen intently following the written transcripts as the tapes are played in court.

(END VIDEOTAPE)

DORNIN: And even at times spectators and jurors have chuckled over some of these exchanges on these phone calls. But we're going to be hearing some more tension interjected into these phone calls as we are approaching the date where Scott Peterson does tell Amber Frey who he is and that his wife is the one that is missing and all over the news. Now, we are also -- she is telling police right after that that she wants to be taken into protective custody because she fears what might happen as the result -- Daryn.

KAGAN: Rusty Dornin, in Redwood City, thank you.

Let's get an update now on Tropical Storm Bonnie and Hurricane Charley. Ed Rappaport is deputy director of the National Hurricane Center. He joins us from Miami.

Ed, good morning.

ED RAPPAPORT, NATIONAL HURRICANE CENTER: Good morning.

KAGAN: Give us the latest, please, on each storm.

RAPPAPORT: Well, we do have the two systems, still. We have Tropical Storm Bonnie, which is now making landfall over the Florida Panhandle with winds of about 50 miles per hour, and we have Hurricane Charley down to the southeast.

If you look a little more closely at Bonnie, the center of Bonnie is coming ashore near Apalachicola, Florida. Most of the heavy weather, which in this case is rain, is well in front. So the worst of the conditions are beginning to move onshore now.

If we go to Charley, we can see also a radar view. This coming out of Cuba. You can see the center very well defined for this hurricane.

Winds are now up to about 90 miles an hour. That's Category One. Expect Charley to turn towards the north and threaten the Florida Keys and Florida peninsula in the next 24 hours.

KAGAN: And by the time that Charley does hit the U.S., what strength do you expect it to be?

RAPPAPORT: We're forecasting Charley to strengthen further, to be Category Two, perhaps Category Three at landfall. And that could push a storm surge on the order of 10 feet into the Florida west coast. KAGAN: You'll be tracking it. Definitely a busy time at the National Hurricane Center. Ed, thank you for your time and the latest information.

Coming up, it is a game show where you have to work for your prize. And your prize is a chance to work here in the U.S.

John Kerry goes West, while George W. Bush drops the campaign slogan. The morning's most complete political wrap-up is coming up.

(COMMERCIAL BREAK)

KAGAN: A California teenager critically wounded by a handgun a decade ago today is bidding on the assets of the bankrupt gun maker. Brandon Maxwell is now 17. He's raised about $175,000, mostly through an Internet campaign. If it's successful, he plans to have the gun- making parts melted down.

Last year, the teenager won a $24 million judgment against Brico (ph) firearms. He was disabled when a Brico (ph) handgun misfired.

Just when you thought reality television couldn't get any closer to the edge of the cliff, along comes a show with immigrants, some of them illegal, competing for a chance at a green card. Now, we need to caution some viewers. Some of the footage we're about to show you might be disturbing. Here now, financial correspondent Peter Viles.

(BEGIN VIDEOTAPE)

PETER VILES, CNN FINANCIAL CORRESPONDENT (voice-over): Behind the scenes at the hottest new reality TV show in Los Angeles. Like "Fear Factor," it's a contest to eat disgusting food. Today, nachos with duck embryos.

UNIDENTIFIED MALE: Seis, dos, uno (UNINTELLIGIBLE).

VILES: But there's a bizarre twist in "Gana la Verde." The prize isn't money, it's the hope of a green card, which means legal residency. Winners receive free legal advice from an immigration lawyer, which means some of the contestants are illegal aliens. This is how the show begins.

Contests include risky stunts, jumping from one speeding truck to another, jumping from one speeding boat to another, fending off attack dogs, climbing down the side of a cliff. And, of course, there's food. Contestants have eaten worms, and burritos stuffed with pig intestines, and a plateful of scorpions.

(on camera): And "Gana la Verde" is only broadcast in four American cities right now, and yet it's already a huge ratings hit. In Los Angeles alone, it's now reaching a weekly audience of one million viewers.

(voice-over): And it is causing controversy. Critics say the show offers false hope to immigrants while humiliating them and exposing them to legal action. CARL SHUSTERMAN, IMMIGRATION ATTORNEY: And as an ex-INS prosecutor, I think it's totally bizarre. It's like, here I am, I'm illegal, come and get me.

Unfortunately for them, the criteria for getting a green card is not determined by how many worms or scorpions that you eat. It's determined whether you have relatives who are U.S. citizens who can apply for you.

VILES: The creator of the program says no laws are being broken and no one is being misled about the ultimate prize.

LENARD LIBERMAN, LIBERMAN BROADCASTING: No one says if you participate and do these things you have a green card. We're very up front and very honest and explain, "We're here to help you. We want to provide a service which is very valuable to you." But I wonder if those critics would say things if we brought in a breast implant or a toaster oven? That would be a better prize?

VILES: The federal government is not amused. In a statement, Immigration and Customs enforcement tell CNN, "Exploiting individual hopes and creating inaccurate expectations can lead the public to believe that legal immigration benefits can easily be acquired by anyone, which is not the case."

And not all contestants are illegal. Some are students, some are trying to win green cards for relatives. In any event, the station says thousands of people are now lining up to appear on this show.

Peter Viles, CNN, Burbank, California.

(END VIDEOTAPE)

KAGAN: Speaking of Burbank, are you eating your breakfast there on the West Coast? If so, we apologize if that didn't help everything go down so easily.

We are bracing for the one-two tropical punch. Up next, we are live along Florida's west coast, where one storm's moving in and another even more dangerous system is taking aim at another area of the state.

And U.S. forces on the attack in Najaf. The latest pictures and information coming up next.

CNN LIVE TODAY is back after this.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan in Atlanta. Let's take a look at the stories "Now in the News." This is Thursday, August 12.

U.S. and Iraqi forces opened a major assault on rebels in the Iraqi city of Najaf today. CNN correspondent Matthew Chance says the tanks, heavy weapons and helicopter gunships are part of the arsenal. Rain and winds from Tropical Storm Bonnie are lashing the Florida Panhandle this morning as the storm nears shore. At last check, top winds for Bonnie were at about 50 miles an hour.

Two fast-moving wildfires in northern California have damaged or destroyed 40 structures. More than 100 people have fled their homes as the flames come closer.

And Defense Secretary Donald Rumsfeld is raising red flags about Iran's nuclear ambitions. On a stop in (UNINTELLIGIBLE), Rumsfeld warned nuclear material from Iran could fall into the hands of terrorists.

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

Forecasters say Hurricane Charley could be a Category Two or Category Three storm by the time it makes landfall. Florida emergency officials now say Charley could come ashore in the Tampa area within the next 24 hours. They are urging residents there to be prepared.

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