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CNN Live At Daybreak
Latest Developments in Scott Peterson Murder Trial; Show of Unity Among Jackson Family at Hearing in Child Molestation Case
Aired August 17, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The suspicions, the mistrust, the accusations and denials. Amber Frey's secretly recorded audiotapes in the spotlight this morning.
It is Tuesday, August 17.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, a deadly explosion in Baghdad within the past hour and a half. The bomb went off in the city's center, killing at least four people and injuring around two dozen. The blast damaged store fronts on a busy street and gutted vehicles. We'll have more on this story in a live report at the bottom of this hour.
Also in Iraq, the vexing problem of how to end the deadly fighting in Najaf. That's the focus of the Iraqi National Congress today. A group from the conference is heading to Najaf to meet with Muqtada al-Sadr.
Creating a new cabinet level national intelligence director -- Defense Secretary Donald Rumsfeld will tell a Senate panel today if he thinks that's a good idea. The 9/11 Commission is calling for the post.
Back home, at least 19 dead and 760,000 still in the dark in Florida after hurricane Charley. No running water, no phones -- that's what people are facing as they try to clean up this morning.
To the forecast center now and Chad -- welcome back.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
It's nice to be back. I'll tell you what, it was an experience to be down there. And we'll get into that later in the show. But let me tell you, it hits home. It hits home when you see all those folks that remind you of your mom and dad doing all those things that they have to do down there to clean that stuff up.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
MYERS: You're welcome.
COSTELLO: Tales of sex, murder and child abuse are being sorted out in two California courtrooms. Of course, I'm talking about the cases of Michael Jackson and Scott Peterson. We have reports on both.
First, the Peterson trial. Jurors heard more taped phone conversations because the accused wife killer and his former mistress.
Here's more from CNN's Ted Rowlands.
(BEGIN VIDEO TAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Jurors heard another full day of taped conversations between Amber Frey and Scott Peterson. On these tapes, Frey, who was working with police at the time, grilled Peterson about his lies and tried to get him to open up by telling him how upset she was.
AMBER FREY: And I have this, this fear inside my heart that you had something to do with this and that you may have possibly and potentially have killed your wife.
SCOTT PETERSON: No, you don't need to have that fear. You know me well enough.
FREY: What was that?
PETERSON: I am not an evil guy.
ROWLANDS: At one point, Scott Peterson's mother started to cry while listening to her son on the tapes recount the true story of how she was hospitalized due to stress during the search for Laci. Amber Frey also broke down at one point during a portion of the tape where she was sobbing about how devastating the ordeal had been for her.
Frey said: "I was so happy to have met you."
Peterson replied, "I'm sorry I ruined that."
Also today, jurors heard Peterson tell Amber Frey that Laci knew about their affair and had accepted it. Frey argued with Peterson about whether or not that could have been true.
GLORIA ALLRED, AMBER FREY'S ATTORNEY: What pregnant woman do you know who would be fine with her husband having a girlfriend? Who is he kidding?
ROWLANDS: Last week, jurors heard Peterson read a poem to Amber Frey. CNN went back and found videotape of the exact same poem on a message to volunteers at the Laci Peterson search center. That message was posted on January 5, with a note from Peterson, saying it was a poem he and Laci read to each other. The next day, on the 6th, Frey recorded Peterson reading it to her.
PETERSON: Beneath the willow wound round with ivy. We take cover from the worst of the storm with a great coat round our shoulders and my hands around your waist.
ROWLANDS (on camera): The defense is expected to cross-examine Frey Wednesday.
Ted Rowlands, CNN, Redwood City, California.
(END VIDEO TAPE)
COSTELLO: And the other big case in the California courts, Michael Jackson. There will be another pretrial hearing today. So, do you want to hear some courtroom fireworks?
Here they are, from CNN's Miguel Marquez.
(BEGIN VIDEO TAPE)
MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): Were they on tour, it might be called the Jackson Unity Tour -- Michael, his sisters Janet and LaToya; his brothers, Randy, Jermaine and Jackie; all march into court, all wearing white.
ROBERTA CLARIN, JACKSON FAN: The whole family wore white -- unity, purity, innocence.
MARQUEZ: The show of unity was for the questioning of Santa Barbara County District Attorney Tom Sneddon, the man prosecuting Jackson on charges of child molestation and conspiracy, charges Jackson has denied.
Steve Corbett, a columnist with the "Santa Maria Times," has reported on Jackson and Sneddon for years.
STEVE CORBETT, "SANTA MARIA TIMES": Sneddon faltered. Sneddon stumbled. Sneddon appeared to be on the defensive.
MARQUEZ: Wearing sunglasses throughout the hearing, the self- proclaimed king of pop stared without emotion at the district attorney as he was questioned by Jackson lawyer Thomas Mesereau. Mesereau worked to establish whether Sneddon knew or should have known that Bradley Miller, a Beverly Hills private investigator, was working for Jackson's former lawyer, Mark Geragos, and not directly for Michael Jackson.
CORBETT: If that can be established, I don't think you need to be an attorney to figure out that that's a big deal.
MARQUEZ: And why a big deal? Because Miller's office, along with Jackson's Neverland Ranch and another address in Los Angeles, was one of the three principal places investigators searched.
CORBETT: Ample evidence was taken into custody. They sledge- hammered the door to obtain it. They wanted it and they wanted it then and there.
MARQUEZ: If Jackson's legal team can convince the judge that investigators knew or should have known that Miller worked for Geragos, then all the evidence seized from the investigators' office could be covered by attorney-client privilege, never to be seen by a jury.
(on camera): As soon as Tom Sneddon, the district attorney, was done with his testimony, Jackson and his entire family left. This hearing is expected to last all week and it'll be up to a judge to decide what evidence any eventual jury may hear.
Miguel Marquez, CNN, Santa Maria, California.
(END VIDEO TAPE)
COSTELLO: In other news across America this morning, they've had a big setback but Colorado prosecutors say they still plan to put NBA star Kobe Bryant on trial. On Monday, prosecutors lost a last minute attempt to keep details of the alleged victim's sex life out of court. Bryant's sexual assault trial is scheduled to start on August 27.
People in New Jersey say there is more to their governor's resignation than meets the eye. James McGreevey back on the job this morning, but he does plan to leave office in November. There's a new poll out and nearly half the people surveyed say he's quitting because of corruption in his administration, not because he had a gay affair.
Donald Rumsfeld will give his take on some of the recommendations of the 9/11 Commission today. The commission has called for revamping the nation's intelligence community and urging Congress to act. Rumsfeld will tell a Senate panel how those proposals could affect military operations.
Two U.S. Army divisions based in Germany will return stateside as part of a major realignment of forces announced by the Bush administration. Overall, the restructuring will bring up to 70,000 American troops from around the world back home over the next 10 years. Pentagon officials say the 1st Armored Division and the 1st Infantry Division probably won't start leaving Germany until 2006 at the earliest. Each division has 10,000 to 15,000 soldiers. They'll be replaced by smaller, more mobile brigades of 3,000 to 5,000 troops.
CNN's Chris Burns joins us from Wesbaden, where the 1st Armored Division is based.
What's the reaction there?
CHRIS BURNS, CNN CORRESPONDENT: Well, good morning, Carol.
The reaction is perhaps that some of the troops might be happy to go home. But others have mixed feelings. And among the Germans, they're very worried.
Take a look at the front page of "The Handelsblatt," one of Germany's leading business newspapers with Uncle Sam saying "I Want You To Come Home." And it does talk about how some communities here in southwestern Germany could be hurting quite a bit. And officials are telling us in just one area they get about more than $1 billion worth of economic activity from the American presence, some tens of thousands of jobs just in one area. If they lose that, that could be a big blow to a country with more than 10 percent unemployment.
So it might not make sense arithmetically, arithmetic wise. But according to geopolitical reasons, it does make sense.
(BEGIN VIDEO TAPE)
BURNS (voice-over): Wesbaden, home of the U.S. 1st Armored Division in Germany; a 90 minute drive from what during the cold war as an East-West German border armed to the teeth. Back then, tens of thousands of U.S. troops and their tanks faced Soviet-led Warsaw Pact forces across Fulda Gap, a threat that melted away with the Berlin Wall.
Today, the 1st Armored has been operating in Iraq, no longer needed here in a Europe at peace and widely believed to be among the forces to be redeployed back home.
Mixed feelings among some of the troops.
GREGORY ALEXANDER, TEMPLE, TEXAS: It's a nice place to come and actually get a chance to see other countries and be able to travel and...
BURNS (on camera): So you'd miss that if you had to go back to States?
ALEXANDER: I probably would, yes.
BURNS (voice-over): And though many Germans have been critical of U.S. policy lately, the Americans here will be missed.
(on camera): The U.S. Army says that in the Wesbaden area alone are 18,000 American soldiers, civilian employees, family members and retirees. That's a lot of consumers for this area to lose and businesses here are bracing for it.
(voice-over): At this cuckoo clock shop, most customers were American during the cold war. No longer. Others expecting to hurt from the redeployment, restaurants, landlords and construction companies.
SHRAGA STERN, CO-OWNER, CUCKOO CLOCK SHOP: And I'm sorry to see them go, because the Americans were good shoppers and they were good friends.
BURNS: No public list of bases on the chopping block. But officials are confirming that among those that will stay in Germany are Ramstein and Rheinmein Air Base and Landstuhl Medical Center, vital links to the operation in Iraq. Training grounds in Bavaria are also to remain. U.S. officials insist the redeployment isn't retribution for Germany's sitting out the conflict in Iraq and the Germans are at least publicly saying they understand, the defense minister calling it a logical consequence of the cold war.
(COMMERCIAL BREAK) BURNS: Now, some American servicemen families could be a bit reluctant to leave. They've spent years here and been quite well planted here. So it could be difficult for them to actually leave a place where they have a lot of friends here and even family.
Back to you -- Carol.
COSTELLO: Chris Burns live from Germany this morning.
Thank you.
On the campaign trail, President Bush heads to battleground states of Pennsylvania and West Virginia today. The president will speak at a Boeing plant in Delaware County. He'll then head to West Virginia for a campaign rally in Hedgesville. While stopping in Michigan, the president voice sympathy for those feeling squeezed by the economy, but he said conditions are improving.
John Kerry is still taking some time off the campaign trail for a little relaxation at his home in Idaho. But tomorrow he will travel to Cincinnati, Ohio. He'll speak at the Veterans of Foreign Wars convention. And that's the very same group that President Bush -- where President Bush unveiled his troop redeployment strategy and took jabs at Kerry on Iraq.
For an update on all of today's campaigning and political news, catch Judy Woodruff's INSIDE POLITICS. That airs this afternoon at 3:30 Eastern.
And CNN's Paula Zahn will host a town hall meeting on the undecided vote live from Canton, Ohio. So tune in for that tomorrow night at 8:00 Eastern.
To the Olympic Games in Athens now.
U.S. swimmer Michael Phelps will not be matching Mark Spitz's record of seven gold medals. Phelps finished third in the 200-meter freestyle. Australian Ian Thorpe won the race in Olympic record time. And so far China leads the medal count, with 15, including 10 gold. Australia and the U.S. have 13 medals each. Russia has eight, Japan seven, including five gold.
And that brings us to our DAYBREAK Question of the Day. Are you watching the Olympics' coverage? There are a lot of empty seats in each venue at the Olympics, a lot of empty seats. Are you watching on television, at least? E-mail us your responses and, of course, we'll read some. Daybreak@cnn.com. That's daybreak@cnn.com.
We'll have much more on the Olympics ahead in this hour of DAYBREAK, including a live report from Athens. That's at six minutes to the hour. Get a front row view of some big events.
Also ahead about five minutes from now, we'll take you inside the tented emergency room where disaster medical teams treat victims of hurricane Charley. And at the bottom of the hour, the fight for Najaf is taking a toll on U.S. troops morale. Hear from some of the men on the front lines.
Plus, a live report on the latest blast in Baghdad.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: Will there be a repeat on Wall Street? Falling oil prices and stocks at bargain prices put investors in a buying mood.
Here's a look at how the markets ended.
The Dow gained 129 points.
The Nasdaq move up 25 1/2 points.
And the S&P 500 gained 14 1/2 points.
On the international markets, Japan's Nikkei closed up today more than 38 points.
European stocks are not doing as well.
Britain's FTSE is trading up, but less than 2 points.
And the French CAC is down more than 1 1/2 points.
Your news, money, weather and sports.
It is 5:16 Eastern.
Here's what's all new this morning.
A little more than 90 minutes ago, a bomb exploded in a busy section of central Baghdad. Early reports have four people dead, 24 wounded.
Illinois is creating a computer online network of pharmacies so people can buy certain cheaper prescription drugs from Canada, Ireland and the U.K. The governor of Illinois makes the announcement seven hours from now.
In money news, federal regulators have opened an inquiry into Google's failure to register 28 million shares into options given employees and consultants. Still, initial public trading of the computer search engine's stock could begin tomorrow.
In culture, Oscar nominated actress Diane Lane and actor Joss Brolin are married. They got hitched Sunday at Brolin's 97-acre ranch in St. Luis Obispo, coffin. Ironically, Lane was nominated for best actress in "Unfaithful," a drama about adultery. In sports, the Atlanta Braves' Chipper Jones goes deep. You're going to see him soon getting his -- there it is -- 300th home run in a 5-4 win over the San Diego Padres. Jones becomes the fourth Brave to hit at least 300 home runs, and, boy, have they come on strong.
MYERS: They are. They are on a streak. I mean just, I don't know, maybe 15 games ago they were behind the Phillies and now they're like eight games out from under.
COSTELLO: Exactly.
MYERS: Yes, hey, good morning everybody.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
Those are the latest headlines for you.
Now, more on hurricane Charley's costly legacy. Seven-hundred sixty people still without power. One hundred fifty thousand without phone service. And with so many homes damaged or destroyed, life after Charley is proving difficult.
(BEGIN VIDEO TAPE)
UNIDENTIFIED CORRESPONDENT: Lucas Hazel (ph) probably won't remember hurricane Charley.
UNIDENTIFIED MALE: He doesn't like us now.
UNIDENTIFIED CORRESPONDENT: But his mother Amanda will never forget taking him to the emergency room.
UNIDENTIFIED MALE: One or two little stitches.
UNIDENTIFIED CORRESPONDENT: The local hospital was damaged, so Lucas is being treated across the street at FEMA's temporary and tented emergency room, staffed by volunteer doctors.
UNIDENTIFIED MALE: It's a wonderful feeling at the end of the day to be totally exhausted and yet know that you have really helped to change some people's lives.
UNIDENTIFIED CORRESPONDENT: This makeshift emergency room has been averaging 70 to 90 patients per day since it opened on Friday.
UNIDENTIFIED MALE: As people clean up, lots of nails through the feet, lots of glass injuries and things are still really a mess -- all of the problems that a community faces, everything from babies to heart attacks.
UNIDENTIFIED CORRESPONDENT: Lucas bumped his head in a shelter. After a few stitches and a lot of TLC, he's just fine and heading home with mom and dad.
UNIDENTIFIED FEMALE: This is just a total disaster area.
UNIDENTIFIED CORRESPONDENT: Only problem is there's not much to go back to.
UNIDENTIFIED FEMALE: This was our duplex. We lived here five months. We moved from Colorado.
UNIDENTIFIED CORRESPONDENT: And just in time to salvage a few essentials.
UNIDENTIFIED FEMALE: Oh, Mr. Robot. Do you still work? He does.
UNIDENTIFIED CORRESPONDENT: For now, going home is going to the shelter.
UNIDENTIFIED FEMALE: Well, you know, are you ready to go back to the shelter? I know. I know.
(END VIDEO TAPE)
COSTELLO: And in one small way the Hazels are lucky, because they were just renting their house. But they also didn't have renters' insurance, so they're going to have to replace literally everything.
MYERS: Yes.
COSTELLO: You did so many touching stories like that out there in Florida.
MYERS: If you could imagine, you just, you can't imagine what those people are going through. It's almost like taking it back to cave man days. They're asking for charcoal so that they can -- when they get water, they can boil it so they can drink it. They can't even wash themselves. There's no water. There's nothing. They're not going in the canals with the alligators. It's just -- we're going to have more on this coming up in a little bit. I'll tell you when.
COSTELLO: Yes, in the next block, Chad's going to share some of the more touching stories that he covered in Florida and...
MYERS: You know, and there's good and there's bad. There are some good stories out there, too.
COSTELLO: A lot of good-hearted people out there.
MYERS: Absolutely.
COSTELLO: All right.
So later this hour, we will take you live to Athens two, where we'll bring us up to date on the Olympics.
We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: It's time to check out our Web clicks this morning.
We're really interested in cnn.com because it gives us a different perspective on what you're interested in out there.
MYERS: Sometimes it's not what we're thinking.
COSTELLO: No, not at all. And today again it's not what we're thinking.
The top clicked on story at cnn.com are the party schools, because the "Princeton Review" has its report out. And, yes, the top party school is...
MYERS: The University of Albany.
COSTELLO: For the ninth time.
MYERS: A state university, SUNY New York, Albany.
COSTELLO: For the ninth time it heads -- that's amazing.
Number two, Washington & Lee University out of Lexington, Virginia; number three, the University of Wisconsin at Madison...
MYERS: Wow!
COSTELLO: Number four, West Virginia University. Number five, Ohio University in Athens.
MYERS: Really?
COSTELLO: Yes.
MYERS: Not Ohio State?
COSTELLO: Not Ohio State. That does surprise me.
Number six, Florida State University.
MYERS: They're on there all the time.
COSTELLO: Yes, that doesn't surprise me.
Seven, the University of Texas, Austin. Number eight, is the University of Georgia, which surprised no one here in the CNN Center. Number nine, the University of Colorado. Number 10, the University of Mississippi.
The number two most clicked on story on our Web site, Oprah Winfrey is going to be on a jury.
MYERS: Right.
COSTELLO: She was picked to be on a jury in Chicago. MYERS: Yes. I can't believe it.
COSTELLO: She gets paid $17 a day.
MYERS: That's great.
COSTELLO: And she'll help decide whether Dion Coleman is guilty of shooting to death Walter Holley after a dispute over a counterfeit $50 bill.
MYERS: Can you see her accountant when she goes to do her taxes in April? He goes, "Did you have to serve on any juries?," because he has to put that in there. You have to add that money in. You get $17 a day.
COSTELLO: It's very funny.
The third most clicked on story, of course, the Scott Peterson trial. And, of course, we'll have much more on that later on DAYBREAK.
MYERS: Yes.
COSTELLO: So, very interesting.
Time for our DAYBREAK "Eye-Opener" now.
Look familiar? There you go. It's another Elvis impersonator. There he is. This one warmed up his pipes as he took part in a celebration at a New York restaurant on the 27th anniversary of Elvis' death. We just thought you'd like to see that this morning.
What a wonderful surprise. This Minnesota couple got back from vacation and learned they were instant millionaires. David and Mary Wenell won the PowerBall jackpot with more than $98 million. They chose the lump sum cash option of $53.1 million and they say they plan to retire right away. Good for them.
This is a dizzying sight. A pleasure boat goes out of control in New York's Rockaway Inland, turning circle after circle. You see it there?
MYERS: Yes, no rider, no driver.
COSTELLO: We're told the operator fell off the boat. He was rescued later. The U.S. Park Police finally corralled the craft. They tried to rope it.
MYERS: Nice job.
COSTELLO: That didn't work. But some guy jumped on the runway boat...
MYERS: Well, he had a (UNINTELLIGIBLE) there. Look at that.
COSTELLO: Yes, it's amazing. MYERS: That's pretty good.
COSTELLO: Good job!
Here's what's all new in the next half hour of DAYBREAK.
All the Olympic news, plus the latest on Ian Thorpe and Michael Phelps as the pick of the pack go head to head for Olympic gold. We'll tell you who rules the pool.
Also, the fighting in Najaf rages on, but for the soldiers stationed there, morale is a major concern.
Plus...
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: How long did it last?
UNIDENTIFIED FEMALE: Well, for (UNINTELLIGIBLE).
(END VIDEO CLIP)
COSTELLO: Hurricane Charley may be just a memory now, but its fury left behind at least one million disrupted lives and billions in damage. Chad was on the front lines. We're going to hear his story.
This is DAYBREAK for Tuesday.
(BEGIN VIDEO CLIP)
MICHAEL MOYER, SENIOR EDITOR, "SPORTS ILLUSTRATED": When we were considering the different tracks and the future of the car, one is, of course, in this great tradition in America of performance oriented vehicles. Right now, the fastest street cars get up beyond 200 miles an hour. We came up with our super car, which uses lightweight composites, a much bigger engine than we've usually seen, to get up to somewhere, you know, around 350 miles an hour.
When we were thinking about, you know, is this really feasible, would someone go down the freeway going 350 miles an hour? Of course not. This sort of thing would be more feasible if you were out maybe, you know, go out on the weekends toward some racetrack where they can get these things up to that speed and be able to really test out to the limit of their abilities.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
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Aired August 17, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The suspicions, the mistrust, the accusations and denials. Amber Frey's secretly recorded audiotapes in the spotlight this morning.
It is Tuesday, August 17.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, a deadly explosion in Baghdad within the past hour and a half. The bomb went off in the city's center, killing at least four people and injuring around two dozen. The blast damaged store fronts on a busy street and gutted vehicles. We'll have more on this story in a live report at the bottom of this hour.
Also in Iraq, the vexing problem of how to end the deadly fighting in Najaf. That's the focus of the Iraqi National Congress today. A group from the conference is heading to Najaf to meet with Muqtada al-Sadr.
Creating a new cabinet level national intelligence director -- Defense Secretary Donald Rumsfeld will tell a Senate panel today if he thinks that's a good idea. The 9/11 Commission is calling for the post.
Back home, at least 19 dead and 760,000 still in the dark in Florida after hurricane Charley. No running water, no phones -- that's what people are facing as they try to clean up this morning.
To the forecast center now and Chad -- welcome back.
CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.
It's nice to be back. I'll tell you what, it was an experience to be down there. And we'll get into that later in the show. But let me tell you, it hits home. It hits home when you see all those folks that remind you of your mom and dad doing all those things that they have to do down there to clean that stuff up.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
MYERS: You're welcome.
COSTELLO: Tales of sex, murder and child abuse are being sorted out in two California courtrooms. Of course, I'm talking about the cases of Michael Jackson and Scott Peterson. We have reports on both.
First, the Peterson trial. Jurors heard more taped phone conversations because the accused wife killer and his former mistress.
Here's more from CNN's Ted Rowlands.
(BEGIN VIDEO TAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Jurors heard another full day of taped conversations between Amber Frey and Scott Peterson. On these tapes, Frey, who was working with police at the time, grilled Peterson about his lies and tried to get him to open up by telling him how upset she was.
AMBER FREY: And I have this, this fear inside my heart that you had something to do with this and that you may have possibly and potentially have killed your wife.
SCOTT PETERSON: No, you don't need to have that fear. You know me well enough.
FREY: What was that?
PETERSON: I am not an evil guy.
ROWLANDS: At one point, Scott Peterson's mother started to cry while listening to her son on the tapes recount the true story of how she was hospitalized due to stress during the search for Laci. Amber Frey also broke down at one point during a portion of the tape where she was sobbing about how devastating the ordeal had been for her.
Frey said: "I was so happy to have met you."
Peterson replied, "I'm sorry I ruined that."
Also today, jurors heard Peterson tell Amber Frey that Laci knew about their affair and had accepted it. Frey argued with Peterson about whether or not that could have been true.
GLORIA ALLRED, AMBER FREY'S ATTORNEY: What pregnant woman do you know who would be fine with her husband having a girlfriend? Who is he kidding?
ROWLANDS: Last week, jurors heard Peterson read a poem to Amber Frey. CNN went back and found videotape of the exact same poem on a message to volunteers at the Laci Peterson search center. That message was posted on January 5, with a note from Peterson, saying it was a poem he and Laci read to each other. The next day, on the 6th, Frey recorded Peterson reading it to her.
PETERSON: Beneath the willow wound round with ivy. We take cover from the worst of the storm with a great coat round our shoulders and my hands around your waist.
ROWLANDS (on camera): The defense is expected to cross-examine Frey Wednesday.
Ted Rowlands, CNN, Redwood City, California.
(END VIDEO TAPE)
COSTELLO: And the other big case in the California courts, Michael Jackson. There will be another pretrial hearing today. So, do you want to hear some courtroom fireworks?
Here they are, from CNN's Miguel Marquez.
(BEGIN VIDEO TAPE)
MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): Were they on tour, it might be called the Jackson Unity Tour -- Michael, his sisters Janet and LaToya; his brothers, Randy, Jermaine and Jackie; all march into court, all wearing white.
ROBERTA CLARIN, JACKSON FAN: The whole family wore white -- unity, purity, innocence.
MARQUEZ: The show of unity was for the questioning of Santa Barbara County District Attorney Tom Sneddon, the man prosecuting Jackson on charges of child molestation and conspiracy, charges Jackson has denied.
Steve Corbett, a columnist with the "Santa Maria Times," has reported on Jackson and Sneddon for years.
STEVE CORBETT, "SANTA MARIA TIMES": Sneddon faltered. Sneddon stumbled. Sneddon appeared to be on the defensive.
MARQUEZ: Wearing sunglasses throughout the hearing, the self- proclaimed king of pop stared without emotion at the district attorney as he was questioned by Jackson lawyer Thomas Mesereau. Mesereau worked to establish whether Sneddon knew or should have known that Bradley Miller, a Beverly Hills private investigator, was working for Jackson's former lawyer, Mark Geragos, and not directly for Michael Jackson.
CORBETT: If that can be established, I don't think you need to be an attorney to figure out that that's a big deal.
MARQUEZ: And why a big deal? Because Miller's office, along with Jackson's Neverland Ranch and another address in Los Angeles, was one of the three principal places investigators searched.
CORBETT: Ample evidence was taken into custody. They sledge- hammered the door to obtain it. They wanted it and they wanted it then and there.
MARQUEZ: If Jackson's legal team can convince the judge that investigators knew or should have known that Miller worked for Geragos, then all the evidence seized from the investigators' office could be covered by attorney-client privilege, never to be seen by a jury.
(on camera): As soon as Tom Sneddon, the district attorney, was done with his testimony, Jackson and his entire family left. This hearing is expected to last all week and it'll be up to a judge to decide what evidence any eventual jury may hear.
Miguel Marquez, CNN, Santa Maria, California.
(END VIDEO TAPE)
COSTELLO: In other news across America this morning, they've had a big setback but Colorado prosecutors say they still plan to put NBA star Kobe Bryant on trial. On Monday, prosecutors lost a last minute attempt to keep details of the alleged victim's sex life out of court. Bryant's sexual assault trial is scheduled to start on August 27.
People in New Jersey say there is more to their governor's resignation than meets the eye. James McGreevey back on the job this morning, but he does plan to leave office in November. There's a new poll out and nearly half the people surveyed say he's quitting because of corruption in his administration, not because he had a gay affair.
Donald Rumsfeld will give his take on some of the recommendations of the 9/11 Commission today. The commission has called for revamping the nation's intelligence community and urging Congress to act. Rumsfeld will tell a Senate panel how those proposals could affect military operations.
Two U.S. Army divisions based in Germany will return stateside as part of a major realignment of forces announced by the Bush administration. Overall, the restructuring will bring up to 70,000 American troops from around the world back home over the next 10 years. Pentagon officials say the 1st Armored Division and the 1st Infantry Division probably won't start leaving Germany until 2006 at the earliest. Each division has 10,000 to 15,000 soldiers. They'll be replaced by smaller, more mobile brigades of 3,000 to 5,000 troops.
CNN's Chris Burns joins us from Wesbaden, where the 1st Armored Division is based.
What's the reaction there?
CHRIS BURNS, CNN CORRESPONDENT: Well, good morning, Carol.
The reaction is perhaps that some of the troops might be happy to go home. But others have mixed feelings. And among the Germans, they're very worried.
Take a look at the front page of "The Handelsblatt," one of Germany's leading business newspapers with Uncle Sam saying "I Want You To Come Home." And it does talk about how some communities here in southwestern Germany could be hurting quite a bit. And officials are telling us in just one area they get about more than $1 billion worth of economic activity from the American presence, some tens of thousands of jobs just in one area. If they lose that, that could be a big blow to a country with more than 10 percent unemployment.
So it might not make sense arithmetically, arithmetic wise. But according to geopolitical reasons, it does make sense.
(BEGIN VIDEO TAPE)
BURNS (voice-over): Wesbaden, home of the U.S. 1st Armored Division in Germany; a 90 minute drive from what during the cold war as an East-West German border armed to the teeth. Back then, tens of thousands of U.S. troops and their tanks faced Soviet-led Warsaw Pact forces across Fulda Gap, a threat that melted away with the Berlin Wall.
Today, the 1st Armored has been operating in Iraq, no longer needed here in a Europe at peace and widely believed to be among the forces to be redeployed back home.
Mixed feelings among some of the troops.
GREGORY ALEXANDER, TEMPLE, TEXAS: It's a nice place to come and actually get a chance to see other countries and be able to travel and...
BURNS (on camera): So you'd miss that if you had to go back to States?
ALEXANDER: I probably would, yes.
BURNS (voice-over): And though many Germans have been critical of U.S. policy lately, the Americans here will be missed.
(on camera): The U.S. Army says that in the Wesbaden area alone are 18,000 American soldiers, civilian employees, family members and retirees. That's a lot of consumers for this area to lose and businesses here are bracing for it.
(voice-over): At this cuckoo clock shop, most customers were American during the cold war. No longer. Others expecting to hurt from the redeployment, restaurants, landlords and construction companies.
SHRAGA STERN, CO-OWNER, CUCKOO CLOCK SHOP: And I'm sorry to see them go, because the Americans were good shoppers and they were good friends.
BURNS: No public list of bases on the chopping block. But officials are confirming that among those that will stay in Germany are Ramstein and Rheinmein Air Base and Landstuhl Medical Center, vital links to the operation in Iraq. Training grounds in Bavaria are also to remain. U.S. officials insist the redeployment isn't retribution for Germany's sitting out the conflict in Iraq and the Germans are at least publicly saying they understand, the defense minister calling it a logical consequence of the cold war.
(COMMERCIAL BREAK) BURNS: Now, some American servicemen families could be a bit reluctant to leave. They've spent years here and been quite well planted here. So it could be difficult for them to actually leave a place where they have a lot of friends here and even family.
Back to you -- Carol.
COSTELLO: Chris Burns live from Germany this morning.
Thank you.
On the campaign trail, President Bush heads to battleground states of Pennsylvania and West Virginia today. The president will speak at a Boeing plant in Delaware County. He'll then head to West Virginia for a campaign rally in Hedgesville. While stopping in Michigan, the president voice sympathy for those feeling squeezed by the economy, but he said conditions are improving.
John Kerry is still taking some time off the campaign trail for a little relaxation at his home in Idaho. But tomorrow he will travel to Cincinnati, Ohio. He'll speak at the Veterans of Foreign Wars convention. And that's the very same group that President Bush -- where President Bush unveiled his troop redeployment strategy and took jabs at Kerry on Iraq.
For an update on all of today's campaigning and political news, catch Judy Woodruff's INSIDE POLITICS. That airs this afternoon at 3:30 Eastern.
And CNN's Paula Zahn will host a town hall meeting on the undecided vote live from Canton, Ohio. So tune in for that tomorrow night at 8:00 Eastern.
To the Olympic Games in Athens now.
U.S. swimmer Michael Phelps will not be matching Mark Spitz's record of seven gold medals. Phelps finished third in the 200-meter freestyle. Australian Ian Thorpe won the race in Olympic record time. And so far China leads the medal count, with 15, including 10 gold. Australia and the U.S. have 13 medals each. Russia has eight, Japan seven, including five gold.
And that brings us to our DAYBREAK Question of the Day. Are you watching the Olympics' coverage? There are a lot of empty seats in each venue at the Olympics, a lot of empty seats. Are you watching on television, at least? E-mail us your responses and, of course, we'll read some. Daybreak@cnn.com. That's daybreak@cnn.com.
We'll have much more on the Olympics ahead in this hour of DAYBREAK, including a live report from Athens. That's at six minutes to the hour. Get a front row view of some big events.
Also ahead about five minutes from now, we'll take you inside the tented emergency room where disaster medical teams treat victims of hurricane Charley. And at the bottom of the hour, the fight for Najaf is taking a toll on U.S. troops morale. Hear from some of the men on the front lines.
Plus, a live report on the latest blast in Baghdad.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: Will there be a repeat on Wall Street? Falling oil prices and stocks at bargain prices put investors in a buying mood.
Here's a look at how the markets ended.
The Dow gained 129 points.
The Nasdaq move up 25 1/2 points.
And the S&P 500 gained 14 1/2 points.
On the international markets, Japan's Nikkei closed up today more than 38 points.
European stocks are not doing as well.
Britain's FTSE is trading up, but less than 2 points.
And the French CAC is down more than 1 1/2 points.
Your news, money, weather and sports.
It is 5:16 Eastern.
Here's what's all new this morning.
A little more than 90 minutes ago, a bomb exploded in a busy section of central Baghdad. Early reports have four people dead, 24 wounded.
Illinois is creating a computer online network of pharmacies so people can buy certain cheaper prescription drugs from Canada, Ireland and the U.K. The governor of Illinois makes the announcement seven hours from now.
In money news, federal regulators have opened an inquiry into Google's failure to register 28 million shares into options given employees and consultants. Still, initial public trading of the computer search engine's stock could begin tomorrow.
In culture, Oscar nominated actress Diane Lane and actor Joss Brolin are married. They got hitched Sunday at Brolin's 97-acre ranch in St. Luis Obispo, coffin. Ironically, Lane was nominated for best actress in "Unfaithful," a drama about adultery. In sports, the Atlanta Braves' Chipper Jones goes deep. You're going to see him soon getting his -- there it is -- 300th home run in a 5-4 win over the San Diego Padres. Jones becomes the fourth Brave to hit at least 300 home runs, and, boy, have they come on strong.
MYERS: They are. They are on a streak. I mean just, I don't know, maybe 15 games ago they were behind the Phillies and now they're like eight games out from under.
COSTELLO: Exactly.
MYERS: Yes, hey, good morning everybody.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
Those are the latest headlines for you.
Now, more on hurricane Charley's costly legacy. Seven-hundred sixty people still without power. One hundred fifty thousand without phone service. And with so many homes damaged or destroyed, life after Charley is proving difficult.
(BEGIN VIDEO TAPE)
UNIDENTIFIED CORRESPONDENT: Lucas Hazel (ph) probably won't remember hurricane Charley.
UNIDENTIFIED MALE: He doesn't like us now.
UNIDENTIFIED CORRESPONDENT: But his mother Amanda will never forget taking him to the emergency room.
UNIDENTIFIED MALE: One or two little stitches.
UNIDENTIFIED CORRESPONDENT: The local hospital was damaged, so Lucas is being treated across the street at FEMA's temporary and tented emergency room, staffed by volunteer doctors.
UNIDENTIFIED MALE: It's a wonderful feeling at the end of the day to be totally exhausted and yet know that you have really helped to change some people's lives.
UNIDENTIFIED CORRESPONDENT: This makeshift emergency room has been averaging 70 to 90 patients per day since it opened on Friday.
UNIDENTIFIED MALE: As people clean up, lots of nails through the feet, lots of glass injuries and things are still really a mess -- all of the problems that a community faces, everything from babies to heart attacks.
UNIDENTIFIED CORRESPONDENT: Lucas bumped his head in a shelter. After a few stitches and a lot of TLC, he's just fine and heading home with mom and dad.
UNIDENTIFIED FEMALE: This is just a total disaster area.
UNIDENTIFIED CORRESPONDENT: Only problem is there's not much to go back to.
UNIDENTIFIED FEMALE: This was our duplex. We lived here five months. We moved from Colorado.
UNIDENTIFIED CORRESPONDENT: And just in time to salvage a few essentials.
UNIDENTIFIED FEMALE: Oh, Mr. Robot. Do you still work? He does.
UNIDENTIFIED CORRESPONDENT: For now, going home is going to the shelter.
UNIDENTIFIED FEMALE: Well, you know, are you ready to go back to the shelter? I know. I know.
(END VIDEO TAPE)
COSTELLO: And in one small way the Hazels are lucky, because they were just renting their house. But they also didn't have renters' insurance, so they're going to have to replace literally everything.
MYERS: Yes.
COSTELLO: You did so many touching stories like that out there in Florida.
MYERS: If you could imagine, you just, you can't imagine what those people are going through. It's almost like taking it back to cave man days. They're asking for charcoal so that they can -- when they get water, they can boil it so they can drink it. They can't even wash themselves. There's no water. There's nothing. They're not going in the canals with the alligators. It's just -- we're going to have more on this coming up in a little bit. I'll tell you when.
COSTELLO: Yes, in the next block, Chad's going to share some of the more touching stories that he covered in Florida and...
MYERS: You know, and there's good and there's bad. There are some good stories out there, too.
COSTELLO: A lot of good-hearted people out there.
MYERS: Absolutely.
COSTELLO: All right.
So later this hour, we will take you live to Athens two, where we'll bring us up to date on the Olympics.
We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: It's time to check out our Web clicks this morning.
We're really interested in cnn.com because it gives us a different perspective on what you're interested in out there.
MYERS: Sometimes it's not what we're thinking.
COSTELLO: No, not at all. And today again it's not what we're thinking.
The top clicked on story at cnn.com are the party schools, because the "Princeton Review" has its report out. And, yes, the top party school is...
MYERS: The University of Albany.
COSTELLO: For the ninth time.
MYERS: A state university, SUNY New York, Albany.
COSTELLO: For the ninth time it heads -- that's amazing.
Number two, Washington & Lee University out of Lexington, Virginia; number three, the University of Wisconsin at Madison...
MYERS: Wow!
COSTELLO: Number four, West Virginia University. Number five, Ohio University in Athens.
MYERS: Really?
COSTELLO: Yes.
MYERS: Not Ohio State?
COSTELLO: Not Ohio State. That does surprise me.
Number six, Florida State University.
MYERS: They're on there all the time.
COSTELLO: Yes, that doesn't surprise me.
Seven, the University of Texas, Austin. Number eight, is the University of Georgia, which surprised no one here in the CNN Center. Number nine, the University of Colorado. Number 10, the University of Mississippi.
The number two most clicked on story on our Web site, Oprah Winfrey is going to be on a jury.
MYERS: Right.
COSTELLO: She was picked to be on a jury in Chicago. MYERS: Yes. I can't believe it.
COSTELLO: She gets paid $17 a day.
MYERS: That's great.
COSTELLO: And she'll help decide whether Dion Coleman is guilty of shooting to death Walter Holley after a dispute over a counterfeit $50 bill.
MYERS: Can you see her accountant when she goes to do her taxes in April? He goes, "Did you have to serve on any juries?," because he has to put that in there. You have to add that money in. You get $17 a day.
COSTELLO: It's very funny.
The third most clicked on story, of course, the Scott Peterson trial. And, of course, we'll have much more on that later on DAYBREAK.
MYERS: Yes.
COSTELLO: So, very interesting.
Time for our DAYBREAK "Eye-Opener" now.
Look familiar? There you go. It's another Elvis impersonator. There he is. This one warmed up his pipes as he took part in a celebration at a New York restaurant on the 27th anniversary of Elvis' death. We just thought you'd like to see that this morning.
What a wonderful surprise. This Minnesota couple got back from vacation and learned they were instant millionaires. David and Mary Wenell won the PowerBall jackpot with more than $98 million. They chose the lump sum cash option of $53.1 million and they say they plan to retire right away. Good for them.
This is a dizzying sight. A pleasure boat goes out of control in New York's Rockaway Inland, turning circle after circle. You see it there?
MYERS: Yes, no rider, no driver.
COSTELLO: We're told the operator fell off the boat. He was rescued later. The U.S. Park Police finally corralled the craft. They tried to rope it.
MYERS: Nice job.
COSTELLO: That didn't work. But some guy jumped on the runway boat...
MYERS: Well, he had a (UNINTELLIGIBLE) there. Look at that.
COSTELLO: Yes, it's amazing. MYERS: That's pretty good.
COSTELLO: Good job!
Here's what's all new in the next half hour of DAYBREAK.
All the Olympic news, plus the latest on Ian Thorpe and Michael Phelps as the pick of the pack go head to head for Olympic gold. We'll tell you who rules the pool.
Also, the fighting in Najaf rages on, but for the soldiers stationed there, morale is a major concern.
Plus...
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: How long did it last?
UNIDENTIFIED FEMALE: Well, for (UNINTELLIGIBLE).
(END VIDEO CLIP)
COSTELLO: Hurricane Charley may be just a memory now, but its fury left behind at least one million disrupted lives and billions in damage. Chad was on the front lines. We're going to hear his story.
This is DAYBREAK for Tuesday.
(BEGIN VIDEO CLIP)
MICHAEL MOYER, SENIOR EDITOR, "SPORTS ILLUSTRATED": When we were considering the different tracks and the future of the car, one is, of course, in this great tradition in America of performance oriented vehicles. Right now, the fastest street cars get up beyond 200 miles an hour. We came up with our super car, which uses lightweight composites, a much bigger engine than we've usually seen, to get up to somewhere, you know, around 350 miles an hour.
When we were thinking about, you know, is this really feasible, would someone go down the freeway going 350 miles an hour? Of course not. This sort of thing would be more feasible if you were out maybe, you know, go out on the weekends toward some racetrack where they can get these things up to that speed and be able to really test out to the limit of their abilities.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
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