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CNN Live At Daybreak

Cleanup, Rebuilding Efforts After Direct Hit from Hurricane Charley; Michael Jackson's Visits Church, Sunday School Day Before Court Appearance

Aired August 16, 2004 - 06:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: Some still in shock -- Floridians slowly begin picking up the pieces hurricane Charley left behind.
It is Monday, August 16.

This is DAYBREAK.

And good morning to you.

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

Now in the news, shifting U.S. military around the world. President Bush is expected to announce plans to withdraw about 70,000 troops from Europe and Asia. They'll be redeployed in an attempt to allow the military to better fight the war on terrorism.

In Venezuela, President Hugo Chavez has survived a recall election. Opposition lawmakers are rejecting t partial vote count, though. But election officials say Chavez clearly has the majority support.

High winds are fanning a wildfire near Redding, California. More than 1,200 firefighters are battling the blaze, which is roaring through an old mining town. The fire has destroyed more than 20 homes and forced about 300 people to flee.

And people have been lining up to get relief supplies in Florida in the wake of hurricane Charley. In the meantime, officials are still trying to fully assess the damage in hard hit Punta Gorda and other communities.

To the forecast center and Rob.

ROB MARCIANO, CNN CORRESPONDENT: Hi, Carol.

Chad still down there reporting from the scene and will be back here tonight. The good news is it's a little bit more quiet this morning down there, and across the Carolinas, where they got hit with Charley yesterday. Across the Northeast, where Charley went through yesterday, as well, some leftover showers, not so much from Charley, but just from a little left over weakening funnel boundary.

(WEATHER REPORT)

COSTELLO: So Charley is gone, but the recovery is only starting for people living in Florida. The hurricane killed at least 16 in the state. President Bush toured the hard hit areas on Sunday and he promised federal aid. The storm wreaked havoc on the citrus industry, as well, and the first day of school has now been delayed in southwest Florida for up to two weeks.

Thousands still without power this morning and that number could actually be as high as one million. The hurricane victims in Florida are feeling a bit overwhelmed as a result. Some have lost everything. But how to rebuild when there aren't any basics available?

Live to Port Charlotte, Florida and CNN's Keith Oppenheim -- good morning, Keith.

KEITH OPPENHEIM, CNN CORRESPONDENT: Good morning to you, Carol.

And I'm in a neighborhood in Port Charlotte, Florida, where, unfortunately, a lot of the homes look like what you see behind me. It's obviously going to take quite a while to cleanup a mess like this. And for the folks who live here, it's a pretty frustrating process where they have to wait days, often weeks, before the lights come back on.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Want some water?

UNIDENTIFIED FEMALE: Please. Thank you so much. I appreciate it.

UNIDENTIFIED MALE: You're very welcome, ma'am.

OPPENHEIM (voice-over): A bag of ice is good to have in Port Charlotte. Soaring temperatures and no power, residents have been flocking to a distribution center.

UNIDENTIFIED FEMALE: They're really saving our lives here.

OPPENHEIM: National Guard troops and volunteers hand out the basics for survival.

VAMILA SENE, VOLUNTEER: Some are desperate. Some have no food. They have children they have to feed.

OPPENHEIM: In fact, some here are trying to leave their damaged properties and go to a hotel. It isn't easy.

MIKE WHISENANT, HURRICANE VICTIM: I've called and went everywhere that I could. I came back and slept in the one room that wasn't real wet. Smelly as hell, but it wasn't real wet.

OPPENHEIM: In hard hit areas, gas lines are long. People fill up fuel containers for generators until power is restored.

MAE BACH, DISPLACED RESIDENT: This room got it the most.

OPPENHEIM: Senior citizens in particular are in a tough spot. Mae Bach's home is badly damaged. For now, she's staying with friends, but ultimately she doesn't know where she'll go.

BACH: I don't know if we ever can come back here.

OPPENHEIM: President Bush promised federal aid to 25 of Florida's 67 counties.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The government's job is to help people help rebuild their lives.

OPPENHEIM: As Florida rebuilds, the Carolinas are just cleaning up. Charley diminished by the time it got to the Carolina coast, but was still damaging as a weaker storm.

(END VIDEO TAPE)

OPPENHEIM: Hurricane Charley is gone now, but it changed lives and ended lives, as well. The death toll here is 16 people. Search teams continue to look for more victims. And, Carol, I'll add that the utility companies have been working pretty hard out here. They've brought back the lights to about 900,000 customers, but there are still about 1.1 million people, we understand, who don't have electricity yet -- back to you.

COSTELLO: Understandable.

I was wondering about the scene behind you and if you could explain that to our viewers this morning.

OPPENHEIM: Yes, this is a home of someone who isn't here right now, but what I can see behind me is a roof that got sheared off. He's got a Mustang in his front driveway in which the pieces of his house smashed the roof of that car. Also, he has a motor boat which is under the rubble. And basically half his house has been blown away by the storm.

COSTELLO: Oh, just horrible stories out of there.

Keith Oppenheim live from Florida for us this morning.

Thank you.

As we mentioned, Florida citrus growers have a sour taste in their mouth after Charley. The hurricane uprooted whole groves of trees. A citrus industry group says Charley also left much of this fall's unripened orange and grapefruit crop on the ground. Charley did damage in seven counties that make up more than a third of the state's citrus groves. And you'll probably see, oh, increased prices at the grocery store as a result.

Our Ed Lavandera, by the way, will join us from Port Charlotte in the next half hour of DAYBREAK for the latest on cleanup efforts there.

It is a new war and a new face for the U.S. military. President Bush today could announce a major shifting of military forces around the world. The administration is planning to withdraw tens of thousands of troops from Europe and Asia and reposition them to better fight the war on terror.

Republican and Democratic lawmakers say it is a good idea.

(BEGIN VIDEO CLIP)

SEN. RICHARD LUGAR (R-IA), FOREIGN RELATIONS COMMITTEE: So this is a fundamental change and it's a change, probably in the tactics of our military, so that our people will be more mobile, more available at other places all over the Earth.

SEN. CARL LEVIN (D-MI), INTELLIGENCE COMMITTEE: There are some things that we should do to redeploy troops so that they are in the best position possible for what the new threats are.

(END VIDEO CLIP)

COSTELLO: Some of the troops could be coming back to the United States, along with family members and military support staff.

Now, checking the latest developments out of Iraq. More military deaths, this time in Najaf and Baghdad. The U.S. military says sniper fire killed two troops in the center of Najaf. And in Baghdad, a soldier was killed in a bomb blast. It is not clear if that soldier was an American.

In the meantime, in the city of Najaf, Iraqi officials are ordering all journalists to get out. The order comes after word that militia fighters holed up inside a mosque are threatening to blow it up.

Now, the violence is in Najaf is topping the agenda at a national political conference in Baghdad. The conference this morning has decided to send out a delegation to try to persuade a radical Shiite cleric to pull his fighters out of Najaf. Officials also trying to get him to join the political process.

You can keep up with the latest from Iraq, including the tense situation at the mosque, on our Web site. You know the address, cnn.com.

Michael Jackson in Sunday school, meeting with children and praying with them, in a Los Angeles church. Um-hmm. It's a prelude to a day in court for the pop star.

First off, California's attorney general has investigated Jackson's complaint that sheriffs' deputies mishandled him last November. And the attorney general says that did not happen.

Later this morning, Jackson will be in court for a pretrial hearing, but we thought you'd like to see more of him attending church services in Los Angeles.

Jane Yamamato of KT-TV was there, too.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Forever and ever.

UNIDENTIFIED CONGREGANTS: And ever.

JANE YAMAMOTO, KT-TV CORRESPONDENT (voice-over): Raising their voices with music and prayer for a special guest.

UNIDENTIFIED MALE: Michael, our prayers for you during your time of travail.

YAMAMOTO: Listening to the prayer, pop star Michael Jackson in the congregation at the First AME Church. Sitting next to him, his brother Randy, Attorney Tom Mesereau and Jackson's close friend, comedian Steve Harvey.

STEVE HARVEY, COMEDIAN: Michael is doing really well. I believe in his innocence. I don't believe that he harmed anyone.

YAMAMOTO: Outside, Jackson's fans line up, hoping to get a glimpse of the self-proclaimed king of pop. He waves his hand, acknowledging the support, then drives off to meet with Sunday school kids.

UNIDENTIFIED MALE: Does anybody want to ask Michael any questions?

YAMAMOTO: The one question she wants answered...

UNIDENTIFIED FEMALE: Would it be OK if we went to the Neverland Ranch?

MICHAEL JACKSON, ENTERTAINER: You're welcome any time.

YAMAMOTO: His Neverland Ranch is at the center of a key piece of evidence in the prosecution's case, a videotape of Jackson's alleged victim shot at the ranch, along with files taken from a private investigator, all critical in the molestation case. But whether it was obtained illegally will be part of Monday's pretrial hearing.

Jackson's family expected to be at his side in the courtroom. Today, friends were at his side and many from the church shared their thoughts about what's ahead for Jackson.

UNIDENTIFIED FEMALE: We'll let the lord take sides. We'll leave it in his hands.

UNIDENTIFIED MALE: The bible says David prayed before going into battle. Many times people will call Pastor Murray and say would you come over and pray for me before I go in for surgery. I oftentimes pray for my family members and friends that are going to the hospital, so to me this is no different. In this country you are innocent until proven guilty, and so no matter what has been alleged, it is when the jury makes the decision that the decision has been made.

(END VIDEO TAPE)

COSTELLO: Again, in the pretrial hearing today, the district attorney may testify about a search of a private investigator's office.

And that report was from Jane Yamamoto of CNN affiliate KT-TV in last.

Other stories across America this Monday, Kobe Bryant expected to appear in a pretrial hearing today. But most of the attention is on whether the NBA star's sexual assault trial will ever take place. Recent court rulings have not gone the prosecution's way, and that's leading to speculation that prosecutors may try to dismiss the charge.

The prosecution's star witness back on the stand today in the Scott Peterson California murder trial. Amber Frey, of course, is Peterson's former mistress. Jurors today will hear more taped phone calls between Peterson and Frey. In them, she expresses fears that Peterson was involved in his wife Laci's disappearance.

New Jersey's governor plans to come back to work later this week, but his future remains on shaky ground. Critics are questioning James McGreevey's ability to govern in the face of his admission that he had an extramarital affair with another man. His opponents want him to step down right away.

The damage is estimated in the billions.

At about 14 after the hour, we'll examine the huge financial burden hurricane Charley has put on the State of Florida.

At about 16 after, a live report for you out of Washington on the 9/11 Commission hearings on Capitol Hill today. We'll tell you what they're trying to accomplish in this next round of hearings.

And later on DAYBREAK, what is up with the men's Olympic basketball team? A closer look at the supposed Dream Team's historic loss.

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

(COMMERCIAL BREAK)

COSTELLO: Stocks finished slightly higher Friday, so the Dow opens this morning up 10 3/4 points.

The Nasdaq up 4 3/4.

And the S&P 500 up 1 1/2 points.

Time for a little business buzz now.

Florida's citrus groves took a major hit from hurricane Charley. We've been talking about that this morning. Well, your wallet may take one, too.

Carrie Lee has more live from the NASDAQ market site -- good morning, Carrie.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

Good morning to you.

No surprise, hurricane Charley devastated Florida's $9.1 billion citrus industry, uprooting trees, stripping off fruit that was ripening for the 2005 harvest.

Now, the state is still assessing damage to this industry, which employs 90,000 people, but according to Florida's Citrus Mutual, the big industry group, this is certainly going to have a huge impact on those folks' livelihood and the season's citrus crop.

And as one expert says, from the state's agricultural commission, that if it's even close to what hurricane Andrew did to farmers in southern Miami-Dade in 1992, it's going to be tough for some of these farmers to bounce back.

And keep in mind, Carol, this is in an industry that's already been hard hit over the past couple of months, and even the past year or so, because of the popularity of low carb diets. So we'll see what happens with this industry as we get more information. But certainly the effect is going to be a major one.

COSTELLO: A look at the futures this morning.

LEE: Things looking a bit bullish, especially for technology issues. So we could get a bounce after a lot of selling over the past couple of months. In fact, if we take a look at the Nasdaq last week, down 1.1 percent. The Dow not doing as badly, but still we've seen a lot of selling there.

If you take a look at the high point for January of 2004, the high point for 2004, you can see that the Nasdaq is down nearly 20 percent. And that constitutes widely on Wall Street a bear market.

So, Carol, getting dangerously close to those levels. It looks like people just aren't that confident about the economic outlook for the rest of this year.

COSTELLO: Nothing seems to make sense anymore. Even when good things happen it doesn't really affect the storm in a positive way.

LEE: You know, it's really been day to day activity. And the profit reporting season, which we've just wrapped up, numbers haven't been that bad. But it's that look ahead that has people concerned. Of course, high oil prices -- we hit another all time high overnight last night -- causing some effect, as well, lately.

COSTELLO: Thank you.

Carrie Lee live from the Nasdaq market site.

Your news, money, weather and sports.

It's 6:17 Eastern.

Here's what's all new this morning.

Help is on the way. At least 60 tractor trailer trucks filled with food, toilets, blankets, cots, heading to areas of Florida slammed by Hurricane Charley.

Eleven days of separation -- formerly conjoined 2-year-olds are doing better than their doctors expected. The boys were connected at the head. Doctors performed four surgeries over 10 months to separate them.

In money news, with crude oil surging past $46 a barrel, look for gas prices to pump back up. The latest Lundberg Survey shows the nationwide average at $1.87 a gallon.

In culture, call it a Phish rapper. Sixty thousand Phish heads came from far and wide for the band's farewell concert in a Woodstock like setting in rural Vermont, Phish's home state.

In sport, Singh his praises. Vijay Singh birdied the first hole of a three hole play-off, to win the 86th PGA championship. And that gives him two PGA titles among his three major championships -- Rob.

MARCIANO: And that should lock up player of the year honors for Vijay. Tiger nowhere to be found.

(WEATHER REPORT)

COSTELLO: Thank you, Rob.

Those are the latest headlines for you.

On Capitol Hill today, law makers will take a break from their summer recess to delve into more 9/11 hearings. One issue at the top of the agenda is transportation security.

Ed Henry, our congressional correspondent, live on the line with more -- Ed, what will exactly take place today?

ED HENRY, CNN CORRESPONDENT: We've got three hearings today, a lot more throughout the week. The first one today, the Senate Governmental Affairs Committee, which has already started holding hearings, is going to have yet another, this time focusing on that proposal for a national intelligence director which would take over all 15 intelligence agencies.

Also, as you mentioned, transportation security one of the issues, discussed by Asa Hutchinson, the number two official at the Department of Homeland Security. Today he's going to be meeting at the Senate Commerce and Transportation Committee. That's chaired by Senator John McCain, of course.

Also appearing there, two very important people in this process, Tom Kean and Lee Hamilton, the co-chairs of the 9/11 Commission. They're pushing very hard for their 41 recommendations for reforming the intelligence community to actually be implemented by Congress as soon as they come back to work full time in September. The third hearing today is going to be a Senate Armed Services Committee. A lot of top former Pentagon officials are going to come in, talk about the Pentagon and the Defense Department's role in all of the intelligence gathering. As you know, about 80 percent of the intelligence budget is controlled by the Defense Department -- Carol.

COSTELLO: You know, Ed, it seems like we've already covered this ground and they're just talking and talking and talking. And when might a decision be made?

HENRY: Well, that's what some people have started complaining about, that there's been a lot of hearings, a lot of discussions and they do repave a lot of the same ground at these hearings. In fact, Tom Kean and Lee Hamilton have already testified three or four times at various committees. It seems like all the different committee chairmen want to have their day with Kean and Hamilton, maybe, you know, get -- make sure that some of the attention is on them.

But I think the bottom line is that you're hearing from a chorus of other people on Capitol Hill that they feel that there should be no rush, that it shouldn't move too quickly, that this is such an important job it has to be done right.

What we've been hearing from Republicans in the House is that right after the Republican convention at the end of this month Congress comes back into session, and those Republican leaders would like to bring something to the House floor, even in the first or second week of September, bring up a reform package, probably not all 41 recommendations of the 9/11 Commission, but at least most of the recommendations. The significance there, it would be right on the eve of the third anniversary of the 9/11 tragedies. A lot of political symbolism there.

COSTELLO: Well, Ed, I couldn't help but giggle, because some people are really upset that it's taking so long. You say they want to take their time and do it right, but a lot of people feel there isn't all that much time and get on with it.

HENRY: That's right. I mean clearly when you have a heightened sense of terror alerts, there are some people who are saying move as quickly as you can. But I can tell you that today at some of these hearings we're going to hear from a lot of former CIA officials, former defense secretaries. And, in fact, tomorrow we're going to hear from the current defense secretary, Donald Rumsfeld. And what some of these current and former officials say is sure, you have to move quickly, but you also have to make sure you do it right, because if you move too quickly, you could end up creating more problems. You could actually make the country less safe.

So there's a delicate balancing act there.

COSTELLO: Ed Henry joining us live from Washington this morning.

Thank you.

On the campaign trail today, next, if the presidential candidates are coming to a city near you.

And later, it's time for kids to start heading back to school. In fact, school has begun for many kids. So what are you packing in their lunches? We'll help make sure they're getting the nutrition they need.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: On the campaign trail today, President Bush campaigns in Michigan and Ohio. He'll travel to Cincinnati to deliver a speech at the Veterans of Foreign Wars convention. Aides say the president will announce a major realignment of U.S. troops in Asia and Europe. President Bush will then head to Traverse City, Michigan.

John Kerry is taking a few days off for a little R&R. Kerry is vacationing at his family home in Ketchum, Idaho. Over the weekend, Kerry wrapped up a two week cross country tour with campaign stops in Oregon.

By the way, CNN's Paula Zahn will host a town hall meeting on the undecided vote live from Canton, Ohio, my hometown.

Tune in for that Wednesday night at 8:00 Eastern.

And to learn more about the politics of your home state, go to cnn.com. You can look up your state's presidential voting history and learn more about who's running in the major races this year.

The headlines are coming your way in two minutes.

But first, your DAYBREAK day planner, stories you will see later today on CNN.

(COMMERCIAL BREAK)

COSTELLO: Lives put on hold -- Floridians begin picking up the pieces from hurricane Charley.

It is Monday, August 16.

This is DAYBREAK.

And good morning to you.

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

Now in the news, President Bush unveils a new plan this morning to redeploy and reposition U.S. troops around the world. Most of the American troop reductions are expected to be in Europe. President Bush makes his announcement four and a half hours from now. CNN does plan live coverage for you.

In Venezuela, President Hugo Chavez survives. Election officials say preliminary results show a recall vote failed. President Chavez will now finish the remaining two years of his term.

Pope John Paul II returned to Italy today after visiting the shrine at Lourdes in France. More than 300,000 pilgrims attended a mass the pope celebrated there.

The dig out begins in Florida, where hurricane Charley left 16 people dead and billions in damage. Nearly one million Floridians still without power this morning.

To the forecast center and Rob Marciano.

MARCIANO: Good morning, Carol.

We'll start you off in Florida. It looks to be a quieter day than it was just a couple of days ago. Pop up afternoon thunderstorms expected, 90s, lower 90s for highs. The Carolinas drying out.

(WEATHER REPORT)

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


Aired August 16, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Some still in shock -- Floridians slowly begin picking up the pieces hurricane Charley left behind.
It is Monday, August 16.

This is DAYBREAK.

And good morning to you.

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

Now in the news, shifting U.S. military around the world. President Bush is expected to announce plans to withdraw about 70,000 troops from Europe and Asia. They'll be redeployed in an attempt to allow the military to better fight the war on terrorism.

In Venezuela, President Hugo Chavez has survived a recall election. Opposition lawmakers are rejecting t partial vote count, though. But election officials say Chavez clearly has the majority support.

High winds are fanning a wildfire near Redding, California. More than 1,200 firefighters are battling the blaze, which is roaring through an old mining town. The fire has destroyed more than 20 homes and forced about 300 people to flee.

And people have been lining up to get relief supplies in Florida in the wake of hurricane Charley. In the meantime, officials are still trying to fully assess the damage in hard hit Punta Gorda and other communities.

To the forecast center and Rob.

ROB MARCIANO, CNN CORRESPONDENT: Hi, Carol.

Chad still down there reporting from the scene and will be back here tonight. The good news is it's a little bit more quiet this morning down there, and across the Carolinas, where they got hit with Charley yesterday. Across the Northeast, where Charley went through yesterday, as well, some leftover showers, not so much from Charley, but just from a little left over weakening funnel boundary.

(WEATHER REPORT)

COSTELLO: So Charley is gone, but the recovery is only starting for people living in Florida. The hurricane killed at least 16 in the state. President Bush toured the hard hit areas on Sunday and he promised federal aid. The storm wreaked havoc on the citrus industry, as well, and the first day of school has now been delayed in southwest Florida for up to two weeks.

Thousands still without power this morning and that number could actually be as high as one million. The hurricane victims in Florida are feeling a bit overwhelmed as a result. Some have lost everything. But how to rebuild when there aren't any basics available?

Live to Port Charlotte, Florida and CNN's Keith Oppenheim -- good morning, Keith.

KEITH OPPENHEIM, CNN CORRESPONDENT: Good morning to you, Carol.

And I'm in a neighborhood in Port Charlotte, Florida, where, unfortunately, a lot of the homes look like what you see behind me. It's obviously going to take quite a while to cleanup a mess like this. And for the folks who live here, it's a pretty frustrating process where they have to wait days, often weeks, before the lights come back on.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Want some water?

UNIDENTIFIED FEMALE: Please. Thank you so much. I appreciate it.

UNIDENTIFIED MALE: You're very welcome, ma'am.

OPPENHEIM (voice-over): A bag of ice is good to have in Port Charlotte. Soaring temperatures and no power, residents have been flocking to a distribution center.

UNIDENTIFIED FEMALE: They're really saving our lives here.

OPPENHEIM: National Guard troops and volunteers hand out the basics for survival.

VAMILA SENE, VOLUNTEER: Some are desperate. Some have no food. They have children they have to feed.

OPPENHEIM: In fact, some here are trying to leave their damaged properties and go to a hotel. It isn't easy.

MIKE WHISENANT, HURRICANE VICTIM: I've called and went everywhere that I could. I came back and slept in the one room that wasn't real wet. Smelly as hell, but it wasn't real wet.

OPPENHEIM: In hard hit areas, gas lines are long. People fill up fuel containers for generators until power is restored.

MAE BACH, DISPLACED RESIDENT: This room got it the most.

OPPENHEIM: Senior citizens in particular are in a tough spot. Mae Bach's home is badly damaged. For now, she's staying with friends, but ultimately she doesn't know where she'll go.

BACH: I don't know if we ever can come back here.

OPPENHEIM: President Bush promised federal aid to 25 of Florida's 67 counties.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The government's job is to help people help rebuild their lives.

OPPENHEIM: As Florida rebuilds, the Carolinas are just cleaning up. Charley diminished by the time it got to the Carolina coast, but was still damaging as a weaker storm.

(END VIDEO TAPE)

OPPENHEIM: Hurricane Charley is gone now, but it changed lives and ended lives, as well. The death toll here is 16 people. Search teams continue to look for more victims. And, Carol, I'll add that the utility companies have been working pretty hard out here. They've brought back the lights to about 900,000 customers, but there are still about 1.1 million people, we understand, who don't have electricity yet -- back to you.

COSTELLO: Understandable.

I was wondering about the scene behind you and if you could explain that to our viewers this morning.

OPPENHEIM: Yes, this is a home of someone who isn't here right now, but what I can see behind me is a roof that got sheared off. He's got a Mustang in his front driveway in which the pieces of his house smashed the roof of that car. Also, he has a motor boat which is under the rubble. And basically half his house has been blown away by the storm.

COSTELLO: Oh, just horrible stories out of there.

Keith Oppenheim live from Florida for us this morning.

Thank you.

As we mentioned, Florida citrus growers have a sour taste in their mouth after Charley. The hurricane uprooted whole groves of trees. A citrus industry group says Charley also left much of this fall's unripened orange and grapefruit crop on the ground. Charley did damage in seven counties that make up more than a third of the state's citrus groves. And you'll probably see, oh, increased prices at the grocery store as a result.

Our Ed Lavandera, by the way, will join us from Port Charlotte in the next half hour of DAYBREAK for the latest on cleanup efforts there.

It is a new war and a new face for the U.S. military. President Bush today could announce a major shifting of military forces around the world. The administration is planning to withdraw tens of thousands of troops from Europe and Asia and reposition them to better fight the war on terror.

Republican and Democratic lawmakers say it is a good idea.

(BEGIN VIDEO CLIP)

SEN. RICHARD LUGAR (R-IA), FOREIGN RELATIONS COMMITTEE: So this is a fundamental change and it's a change, probably in the tactics of our military, so that our people will be more mobile, more available at other places all over the Earth.

SEN. CARL LEVIN (D-MI), INTELLIGENCE COMMITTEE: There are some things that we should do to redeploy troops so that they are in the best position possible for what the new threats are.

(END VIDEO CLIP)

COSTELLO: Some of the troops could be coming back to the United States, along with family members and military support staff.

Now, checking the latest developments out of Iraq. More military deaths, this time in Najaf and Baghdad. The U.S. military says sniper fire killed two troops in the center of Najaf. And in Baghdad, a soldier was killed in a bomb blast. It is not clear if that soldier was an American.

In the meantime, in the city of Najaf, Iraqi officials are ordering all journalists to get out. The order comes after word that militia fighters holed up inside a mosque are threatening to blow it up.

Now, the violence is in Najaf is topping the agenda at a national political conference in Baghdad. The conference this morning has decided to send out a delegation to try to persuade a radical Shiite cleric to pull his fighters out of Najaf. Officials also trying to get him to join the political process.

You can keep up with the latest from Iraq, including the tense situation at the mosque, on our Web site. You know the address, cnn.com.

Michael Jackson in Sunday school, meeting with children and praying with them, in a Los Angeles church. Um-hmm. It's a prelude to a day in court for the pop star.

First off, California's attorney general has investigated Jackson's complaint that sheriffs' deputies mishandled him last November. And the attorney general says that did not happen.

Later this morning, Jackson will be in court for a pretrial hearing, but we thought you'd like to see more of him attending church services in Los Angeles.

Jane Yamamato of KT-TV was there, too.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Forever and ever.

UNIDENTIFIED CONGREGANTS: And ever.

JANE YAMAMOTO, KT-TV CORRESPONDENT (voice-over): Raising their voices with music and prayer for a special guest.

UNIDENTIFIED MALE: Michael, our prayers for you during your time of travail.

YAMAMOTO: Listening to the prayer, pop star Michael Jackson in the congregation at the First AME Church. Sitting next to him, his brother Randy, Attorney Tom Mesereau and Jackson's close friend, comedian Steve Harvey.

STEVE HARVEY, COMEDIAN: Michael is doing really well. I believe in his innocence. I don't believe that he harmed anyone.

YAMAMOTO: Outside, Jackson's fans line up, hoping to get a glimpse of the self-proclaimed king of pop. He waves his hand, acknowledging the support, then drives off to meet with Sunday school kids.

UNIDENTIFIED MALE: Does anybody want to ask Michael any questions?

YAMAMOTO: The one question she wants answered...

UNIDENTIFIED FEMALE: Would it be OK if we went to the Neverland Ranch?

MICHAEL JACKSON, ENTERTAINER: You're welcome any time.

YAMAMOTO: His Neverland Ranch is at the center of a key piece of evidence in the prosecution's case, a videotape of Jackson's alleged victim shot at the ranch, along with files taken from a private investigator, all critical in the molestation case. But whether it was obtained illegally will be part of Monday's pretrial hearing.

Jackson's family expected to be at his side in the courtroom. Today, friends were at his side and many from the church shared their thoughts about what's ahead for Jackson.

UNIDENTIFIED FEMALE: We'll let the lord take sides. We'll leave it in his hands.

UNIDENTIFIED MALE: The bible says David prayed before going into battle. Many times people will call Pastor Murray and say would you come over and pray for me before I go in for surgery. I oftentimes pray for my family members and friends that are going to the hospital, so to me this is no different. In this country you are innocent until proven guilty, and so no matter what has been alleged, it is when the jury makes the decision that the decision has been made.

(END VIDEO TAPE)

COSTELLO: Again, in the pretrial hearing today, the district attorney may testify about a search of a private investigator's office.

And that report was from Jane Yamamoto of CNN affiliate KT-TV in last.

Other stories across America this Monday, Kobe Bryant expected to appear in a pretrial hearing today. But most of the attention is on whether the NBA star's sexual assault trial will ever take place. Recent court rulings have not gone the prosecution's way, and that's leading to speculation that prosecutors may try to dismiss the charge.

The prosecution's star witness back on the stand today in the Scott Peterson California murder trial. Amber Frey, of course, is Peterson's former mistress. Jurors today will hear more taped phone calls between Peterson and Frey. In them, she expresses fears that Peterson was involved in his wife Laci's disappearance.

New Jersey's governor plans to come back to work later this week, but his future remains on shaky ground. Critics are questioning James McGreevey's ability to govern in the face of his admission that he had an extramarital affair with another man. His opponents want him to step down right away.

The damage is estimated in the billions.

At about 14 after the hour, we'll examine the huge financial burden hurricane Charley has put on the State of Florida.

At about 16 after, a live report for you out of Washington on the 9/11 Commission hearings on Capitol Hill today. We'll tell you what they're trying to accomplish in this next round of hearings.

And later on DAYBREAK, what is up with the men's Olympic basketball team? A closer look at the supposed Dream Team's historic loss.

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

(COMMERCIAL BREAK)

COSTELLO: Stocks finished slightly higher Friday, so the Dow opens this morning up 10 3/4 points.

The Nasdaq up 4 3/4.

And the S&P 500 up 1 1/2 points.

Time for a little business buzz now.

Florida's citrus groves took a major hit from hurricane Charley. We've been talking about that this morning. Well, your wallet may take one, too.

Carrie Lee has more live from the NASDAQ market site -- good morning, Carrie.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

Good morning to you.

No surprise, hurricane Charley devastated Florida's $9.1 billion citrus industry, uprooting trees, stripping off fruit that was ripening for the 2005 harvest.

Now, the state is still assessing damage to this industry, which employs 90,000 people, but according to Florida's Citrus Mutual, the big industry group, this is certainly going to have a huge impact on those folks' livelihood and the season's citrus crop.

And as one expert says, from the state's agricultural commission, that if it's even close to what hurricane Andrew did to farmers in southern Miami-Dade in 1992, it's going to be tough for some of these farmers to bounce back.

And keep in mind, Carol, this is in an industry that's already been hard hit over the past couple of months, and even the past year or so, because of the popularity of low carb diets. So we'll see what happens with this industry as we get more information. But certainly the effect is going to be a major one.

COSTELLO: A look at the futures this morning.

LEE: Things looking a bit bullish, especially for technology issues. So we could get a bounce after a lot of selling over the past couple of months. In fact, if we take a look at the Nasdaq last week, down 1.1 percent. The Dow not doing as badly, but still we've seen a lot of selling there.

If you take a look at the high point for January of 2004, the high point for 2004, you can see that the Nasdaq is down nearly 20 percent. And that constitutes widely on Wall Street a bear market.

So, Carol, getting dangerously close to those levels. It looks like people just aren't that confident about the economic outlook for the rest of this year.

COSTELLO: Nothing seems to make sense anymore. Even when good things happen it doesn't really affect the storm in a positive way.

LEE: You know, it's really been day to day activity. And the profit reporting season, which we've just wrapped up, numbers haven't been that bad. But it's that look ahead that has people concerned. Of course, high oil prices -- we hit another all time high overnight last night -- causing some effect, as well, lately.

COSTELLO: Thank you.

Carrie Lee live from the Nasdaq market site.

Your news, money, weather and sports.

It's 6:17 Eastern.

Here's what's all new this morning.

Help is on the way. At least 60 tractor trailer trucks filled with food, toilets, blankets, cots, heading to areas of Florida slammed by Hurricane Charley.

Eleven days of separation -- formerly conjoined 2-year-olds are doing better than their doctors expected. The boys were connected at the head. Doctors performed four surgeries over 10 months to separate them.

In money news, with crude oil surging past $46 a barrel, look for gas prices to pump back up. The latest Lundberg Survey shows the nationwide average at $1.87 a gallon.

In culture, call it a Phish rapper. Sixty thousand Phish heads came from far and wide for the band's farewell concert in a Woodstock like setting in rural Vermont, Phish's home state.

In sport, Singh his praises. Vijay Singh birdied the first hole of a three hole play-off, to win the 86th PGA championship. And that gives him two PGA titles among his three major championships -- Rob.

MARCIANO: And that should lock up player of the year honors for Vijay. Tiger nowhere to be found.

(WEATHER REPORT)

COSTELLO: Thank you, Rob.

Those are the latest headlines for you.

On Capitol Hill today, law makers will take a break from their summer recess to delve into more 9/11 hearings. One issue at the top of the agenda is transportation security.

Ed Henry, our congressional correspondent, live on the line with more -- Ed, what will exactly take place today?

ED HENRY, CNN CORRESPONDENT: We've got three hearings today, a lot more throughout the week. The first one today, the Senate Governmental Affairs Committee, which has already started holding hearings, is going to have yet another, this time focusing on that proposal for a national intelligence director which would take over all 15 intelligence agencies.

Also, as you mentioned, transportation security one of the issues, discussed by Asa Hutchinson, the number two official at the Department of Homeland Security. Today he's going to be meeting at the Senate Commerce and Transportation Committee. That's chaired by Senator John McCain, of course.

Also appearing there, two very important people in this process, Tom Kean and Lee Hamilton, the co-chairs of the 9/11 Commission. They're pushing very hard for their 41 recommendations for reforming the intelligence community to actually be implemented by Congress as soon as they come back to work full time in September. The third hearing today is going to be a Senate Armed Services Committee. A lot of top former Pentagon officials are going to come in, talk about the Pentagon and the Defense Department's role in all of the intelligence gathering. As you know, about 80 percent of the intelligence budget is controlled by the Defense Department -- Carol.

COSTELLO: You know, Ed, it seems like we've already covered this ground and they're just talking and talking and talking. And when might a decision be made?

HENRY: Well, that's what some people have started complaining about, that there's been a lot of hearings, a lot of discussions and they do repave a lot of the same ground at these hearings. In fact, Tom Kean and Lee Hamilton have already testified three or four times at various committees. It seems like all the different committee chairmen want to have their day with Kean and Hamilton, maybe, you know, get -- make sure that some of the attention is on them.

But I think the bottom line is that you're hearing from a chorus of other people on Capitol Hill that they feel that there should be no rush, that it shouldn't move too quickly, that this is such an important job it has to be done right.

What we've been hearing from Republicans in the House is that right after the Republican convention at the end of this month Congress comes back into session, and those Republican leaders would like to bring something to the House floor, even in the first or second week of September, bring up a reform package, probably not all 41 recommendations of the 9/11 Commission, but at least most of the recommendations. The significance there, it would be right on the eve of the third anniversary of the 9/11 tragedies. A lot of political symbolism there.

COSTELLO: Well, Ed, I couldn't help but giggle, because some people are really upset that it's taking so long. You say they want to take their time and do it right, but a lot of people feel there isn't all that much time and get on with it.

HENRY: That's right. I mean clearly when you have a heightened sense of terror alerts, there are some people who are saying move as quickly as you can. But I can tell you that today at some of these hearings we're going to hear from a lot of former CIA officials, former defense secretaries. And, in fact, tomorrow we're going to hear from the current defense secretary, Donald Rumsfeld. And what some of these current and former officials say is sure, you have to move quickly, but you also have to make sure you do it right, because if you move too quickly, you could end up creating more problems. You could actually make the country less safe.

So there's a delicate balancing act there.

COSTELLO: Ed Henry joining us live from Washington this morning.

Thank you.

On the campaign trail today, next, if the presidential candidates are coming to a city near you.

And later, it's time for kids to start heading back to school. In fact, school has begun for many kids. So what are you packing in their lunches? We'll help make sure they're getting the nutrition they need.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: On the campaign trail today, President Bush campaigns in Michigan and Ohio. He'll travel to Cincinnati to deliver a speech at the Veterans of Foreign Wars convention. Aides say the president will announce a major realignment of U.S. troops in Asia and Europe. President Bush will then head to Traverse City, Michigan.

John Kerry is taking a few days off for a little R&R. Kerry is vacationing at his family home in Ketchum, Idaho. Over the weekend, Kerry wrapped up a two week cross country tour with campaign stops in Oregon.

By the way, CNN's Paula Zahn will host a town hall meeting on the undecided vote live from Canton, Ohio, my hometown.

Tune in for that Wednesday night at 8:00 Eastern.

And to learn more about the politics of your home state, go to cnn.com. You can look up your state's presidential voting history and learn more about who's running in the major races this year.

The headlines are coming your way in two minutes.

But first, your DAYBREAK day planner, stories you will see later today on CNN.

(COMMERCIAL BREAK)

COSTELLO: Lives put on hold -- Floridians begin picking up the pieces from hurricane Charley.

It is Monday, August 16.

This is DAYBREAK.

And good morning to you.

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

Now in the news, President Bush unveils a new plan this morning to redeploy and reposition U.S. troops around the world. Most of the American troop reductions are expected to be in Europe. President Bush makes his announcement four and a half hours from now. CNN does plan live coverage for you.

In Venezuela, President Hugo Chavez survives. Election officials say preliminary results show a recall vote failed. President Chavez will now finish the remaining two years of his term.

Pope John Paul II returned to Italy today after visiting the shrine at Lourdes in France. More than 300,000 pilgrims attended a mass the pope celebrated there.

The dig out begins in Florida, where hurricane Charley left 16 people dead and billions in damage. Nearly one million Floridians still without power this morning.

To the forecast center and Rob Marciano.

MARCIANO: Good morning, Carol.

We'll start you off in Florida. It looks to be a quieter day than it was just a couple of days ago. Pop up afternoon thunderstorms expected, 90s, lower 90s for highs. The Carolinas drying out.

(WEATHER REPORT)

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