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American Morning
Najaf Uprising; Intelligence Battle; Terror Suspects in London Attend Hearing
Aired August 18, 2004 - 07:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: It's just about half past the hour now on this AMERICAN MORNING.
And it may be d-day in Najaf. Radical cleric Muqtada al-Sadr refusing to meet with an Iraqi delegation trying to bring peace to the city, but now it looks like one Iraqi official may have issued an ultimatum to al-Sadr. In just a moment, we're going to talk to a reporter who was traveling with the delegation when they went inside that shrine we've been talking about for several days now.
BILL HEMMER, CNN ANCHOR: It is getting serious. And, again, as we mentioned a short time ago, perhaps there is movement on that today.
Also, on a much lighter note, "90-Second Pop" a bit later. Christina Aguilera has pierced just about everything on her body. Now it looks like she's in the midst of an image overhaul. And our pop panel takes a shot at that, still to come.
COLLINS: For now back to Iraq, though, where the country is readying an assault on rebel forces in Najaf after an attempt at reaching a truce that that didn't work out. And there has been heavy fighting between U.S. troops and forces loyal to radical Shiite leader Muqtada al-Sadr again today, as there has been for two weeks. You see the video there.
A delegation from Baghdad returned this morning without meeting with al-Sadr. The peace negotiations crossed the battlefield to get to the Imam Ali Mosque, where al-Sadr and his people are holed up.
"Washington Post" reporter Rajiv Chandrasekaran was with the delegation.
(BEGIN VIDEOTAPE)
COLLINS: Rajiv, I know that you traveled with the Iraqi delegation through the American frontlines and directly into the shrine that we have been talking about the last several days. But the rebel cleric, Muqtada al-Sadr, refused to meet with the delegation that went to Najaf. How big of a setback is this?
RAJIV CHANDRASEKARAN, "WASHINGTON POST": Well, I think it's a pretty fundamental setback. This delegation from the Iraqi National Conference had wanted to see him face-to-face. They wanted to convey to him the gravity of the situation.
COLLINS: Rajiv, what sort of reason did Muqtada al-Sadr give for snubbing the delegation?
CHANDRASEKARAN: Well, Sadr's aides said that it blamed American military action in the area. They said there was artillery firing, other attacks that made it too unsafe for Muqtada al-Sadr to come to the shrine.
Now, it's not at all clear where he is. Some people believe he might have been in the shrine the whole time in another part of that vast compound, or at some other location pretty close by. The shrine and its surrounding areas are pretty much the safest parts of Najaf right now, because the Americans aren't directly attacking that compound.
COLLINS: What was the atmosphere like when you actually got into the shrine?
CHANDRASEKARAN: Well, it was very boisterous. It wasn't really tense. The young men -- and there were probably about 1,000 or more of them there that sort of had converged -- were quite happy to see this delegation. And as we walked up to the shrine we saw scores young militiamen with grenades and rifles, all of whom seemed to greet us quite openly and warmly.
And I think that they were hoping that there would be some sort of deal that would be in Sadr's favor that might be hammered out.
As we came in, it was a huge crush of people as we entered that shrine and made our way to the office. It sort of was like a mosh pit at a concert. Everybody was crowding around. In fact, I had to hold onto one of the delegates so I didn't get lost in the crowd. There was a lot of chanting, "long live Muqtada." So very, very lively and boisterous.
(END VIDEOTAPE)
COLLINS: Again, "Washington Post" reporter Rajiv Chandrasekaran for us this morning.
HEMMER: We're going to move to London right now, a developing story there. Eight terrorist suspects are now in a London courtroom -- in fact, at this hour -- including two thought to have had surveillance plans of financial buildings in New Jersey, New York and the Washington, D.C. area.
It was those discoveries that led to the most recent terrorist alerts. The men are among 13 arrested back on the 3rd of August. We do have a reporter there in London. We'll make contact a bit later this morning there.
In the meantime, though, back in this country, Washington has been divided into factions around the 9/11 Commission, those recommendations for a new intelligence chief. While the discussions continue in D.C., Ed Henry has an update for us this morning.
(BEGIN VIDEOTAPE) ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (voice-over): With support for a powerful national intelligence director picking up steam, Defense Secretary Donald Rumsfeld tried to hit the brakes.
DONALD RUMSFELD, SECRETARY OF DEFENSE: If we move unwisely and get it wrong, the penalty would be great.
HENRY: Rumsfeld, who controls most of the estimated $40 billion intelligence budget, doesn't relish giving up that authority. But President Bush has endorsed the concept of an NID, so Rumsfeld stuck to a cautious refrain.
RUMSFELD: I am not in a position to say anything other than the devil's in the details. We said the devil's in the details. You darn well better get it right.
HENRY: Rumsfeld was backed by the Joint Chiefs chairman. He warned that creating new bureaucracy would not be a panacea.
GEN. RICHARD MYERS, CHAIRMAN OF THE JOINT CHIEFS: There cannot be a czar that just starts pointing and pulling levers. There is no Wizard of Oz here that's going to solve this, in my opinion. It's got to be a collaborative effort.
HENRY: But this pits the defense chiefs against another powerful political force, the 9/11 families. Even as Rumsfeld spoke, they pushed for a strong national intelligence director at a separate hearing.
KRISTEN BREITWEISER, SEPTEMBER 11 ADVOCATE: Going forward, we must ensure that when intelligence community judgments are made and people are killed, at a bare minimum, someone in our intelligence community is held accountable. An NID would be that person.
HENRY (on camera): The 9/11 Commission will continue its push for reform this morning when co-chairs Tom Kean and Lee Hamilton head to a secure room in the Capitol for a closed hearing with the House Intelligence Committee.
Ed Henry, CNN, Washington.
(END VIDEOTAPE)
HEMMER: Let's move from Washington back overseas to London and Paula Hancocks outside the courthouse now, where those eight men were just inside the courthouse.
And what did we learn -- Paula? Good afternoon there.
PAULA HANCOCKS, CNN CORRESPONDENT: Hello there, Bill.
Well, this was the first court appearance for these eight suspects. They have been remanded in custody. They haven't been granted bail. They didn't apply for bail.
And the magistrate in this court here in Belmont high security prison has said that there's going to be a plea hearing on the 25th of August. So these eight suspects will be able to give their plea at the Central Criminal Court.
Now, they are all charged with conspiracy to murder and also conspiracy to cause public nuisance with the use of explosives or radioactive substances.
So that's the latest we have from here -- Bill.
HEMMER: All right, Paula, thanks. We'll track that from here. Paula Hancocks there in London.
Now to Heidi.
COLLINS: It's just about 37 minutes past the hour now. Carol Costello is standing by to have a look at the rest of the headlines for us this morning.
Carol -- good morning once again.
CAROL COSTELLO, CNN ANCHOR: Good morning, Heidi.
There is increasing pressure this morning on the New Jersey governor, Jim McGreevey, to resign early. Some lawmakers are calling for the governor to step down before a September deadline for special elections. In the next half-hour, we'll speak with an attorney who is suing to force a special state election later in the year.
Federal prosecutors are admitting a possible translation error as a key piece of evidence against two men accused of supporting terrorism. Authorities say Yassan Araf (ph) and Mohammad Hasain (ph) had attempted to launder money to buy a should-fired missile. Defense attorneys say the translation error undermines the entire government case and both men should get out on bail.
In California, a National Guardsman is the first soldier to sue the government for extending his military service. At issue is the stop loss program created after the September 11 attacks to extend military service of some 20,000 soldiers. His lawyer says the soldier already served in Iraq and could now be heading back there or to Afghanistan for another tour of duty.
And after 56 years, a package mailed from Belgium has finally arrived in the United States. Postal workers in Lancing, Illinois, receiving the package, postmarked "1948." It contained a U.S. flag that was draped over the coffin of World War II veteran Floyd Dust (ph). The package has now been forwarded to Dust's (ph) sister in Alabama. And we're assured it will get there in just a couple of days.
Back to New York now.
COLLINS: Oh, that's great. All right, Carol, thanks so much.
There are now 76 days until the November election. Yesterday, President Bush was campaigning in West Virginia and Pennsylvania. Today, he heads to two other battleground states, Wisconsin and Minnesota, before going to his Texas ranch.
And Senator John Kerry left Idaho yesterday for Ohio. Kerry had spent the last few days at his Idaho vacation home. Today, Kerry addresses the Veterans of Foreign Wars national convention in Cincinnati, where President Bush spoke on Monday. CNN will carry that speech live, coming your way at 10:30 a.m. Eastern.
John Kerry, Bob Kerrey, is it easy to get confused? Well, the Kerry campaign claims it was a simple mistake that led its Web site to tout that John Kerry once served as vice chairman of the Senate Select Committee on Intelligence, a post once held by former Senator Bob Kerrey. Senator John Kerry did serve as a member of that committee, but not as chairman.
Republicans, though, were less willing to see it as an innocent mistake. A Republican National Committee spokeswoman said -- quote -- "It's difficult to take John Kerry's claims about his intelligence experience seriously."
And Paula Zahn will be talking to undecided voters tonight in the battleground states of -- or state, that is, of Ohio. Don't miss her live town hall meeting coming up at 8:00 p.m. Eastern tonight.
HEMMER: Kerry and Kerrey separated by the letter E.
COLLINS: Yes, they are.
(WEATHER BREAK)
HEMMER: In a moment here on AMERICAN MORNING, Google's long- awaited IPO delayed yet again, but that may be good news for stock investors. Christine explains in a moment here.
COLLINS: And Bruce Springsteen may be in for all he can handle now that he's gotten political. Stay with us on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: Welcome back, everyone. Google is dropping its price on its IPO offering, but oil prices, they keep climbing, too.
So Christine Romans is working through this with Andy Serwer out on vacation, "Minding Your Business."
Good morning.
CHRISTINE ROMANS, CNN FINANCIAL NEWS: Let's start with Google, because is this a stock offering or is this a soap opera? I'm not sure. Every day there seems to be another stumbling block, another glitch.
We told you yesterday that Google had presented all of its registration documents to the SEC. And yesterday the SEC essentially didn't accept, didn't act on the paperwork.
Then today, Google is changing its tune here. It's cut its IPO price to $85 to $95 a share. Remember, it was above 100 earlier. That's more reasonable a lot of analysts are saying, because, you know, you just don't know what the growth potential is for this company going forward in the Internet space.
The founders are cutting how much stock they will be issuing, about 5 and a half million shares.
And the stumbling blocks, we've been really -- we've been chronicling this along the way. It's a slumping IPO market overall. The "Playboy" interview is now legendary, because some people think that maybe the company was talking when it shouldn't have been talking. It should have been a quiet period.
There is an informal inquiry into these 23 million shares that were registered potentially illegally. All kinds of little problems now...
HEMMER: They're setting the bar lower, too, though, in the game of expectations to protect themselves in the event that it doesn't go to the moon.
ROMANS: It is. It is. It is. But some people say that this is a potential brand problem for this company. What if the whole IPO thing just doesn't go well? What if the market is weak? What if it gets really sloppy? And then the brand, the Google brand is hurt. And what if a weak IPO hurts the whole market?
HEMMER: Help me understand. Why would the SEC not accept their paperwork?
ROMANS: They didn't say. They didn't say. Maybe it's because there is an investigation under way, maybe because they have some more questions that they're going to be answering, and maybe they think that it's all been rushing.
HEMMER: You know, something tells me we're going to be talking about this again tomorrow.
ROMANS: Yes.
HEMMER: Quickly on the markets, positive territory.
ROMANS: We'll be talking about that tomorrow, too, oil, because another record high for oil, $47 a barrel. Stocks were actually a little bit higher yesterday. We'll watch to see if stocks can hold up with oil at 47. Look at that. Look at that chart, $47, a lot of people say 50 is imminent, just like the Google IPO is imminent.
Oh, if I hear much anticipated IPO one more time, you know...
JACK CAFFERTY, CNN ANCHOR: Do you know what's imminent?
COLLINS: By who?
ROMANS: By everyone. You know, it's just so hyped and this IPO is so hyped. CAFFERTY: Do you know what's imminent? A decline in the sale of Hummers. That's imminent. I mean, $50 oil, I mean, you won't be able to afford to drive one.
COLLINS: Yes, that's for sure.
CAFFERTY: So that would be imminent.
ROMANS: Maybe the people who drive Hummers don't care about $50 oil.
CAFFERTY: Maybe not.
COLLINS: You're probably right there.
All right, "Question of the Day" now.
CAFFERTY: Yes, it's about that rebel cleric, Muqtada al-Sadr. He remains holed up in that Shiite shrine, which is something you say carefully, in the city of Najaf. A delegation of Iraqi political leaders went to the shrine yesterday. They offered him a deal. They said we'll give you amnesty for you and all of your followers and a role in the country's elections. This clown never even showed up for the meetings.
Now Iraq says the time to negotiate is over. Military preparations to liberate the shrine are complete. But, I mean, they've been doing this off and on for months, it seems like. They fight a while. They talk a while. They fight a while. They do nothing a while.
Meanwhile, al-Sadr is holding the entire process hostage from moving forward.
So here is some of what you have offered in the way of suggestions.
Shawn in Roanoke, Virginia: "Whatever is done with this cleric, it must be done by the Iraqis. In reality, there is no possibility of a positive conclusion no matter what is done. Martyrdom spawns a league of more fanatics. And to leave him alone undermines what little legitimacy the new Iraqi government has."
A guy named Jack writes: "Completely isolate Najaf. With a combination of U.S. and Iraqi troops, go door to door until al-Sadr is found, or announce that the first Iraqi to deliver his head to the troops searching for him will receive a sizable bounty. The idea that this thug in a robe is creating this much havoc is absurd."
Sandy in South Carolina: "Take him out behind the barn and give him the thrashing his father failed to give him. Teach him to respect his elders. And by elders, I don't mean the United States. I mean the true clerics of Iraq who wish he would sit down and shut up."
Charlie in Newport writes: "Level the mosque. It's no longer a holy shrine but a den of evil." And Mike in Las Vegas says: "Obviously he is protecting the weapons of mass destruction that are hidden in the mosque, so they should proceed with care."
COLLINS: OK. All right, Jack, thanks so much for that.
And still to come this morning, changes are ahead for late-night on CBS. Will it now be ladies' night? "90-Second Pop" is next. Stay with us on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: Time slips away and leaves you with nothing, mister, but boring stories of glory days. The best line in the whole song.
It's time for "90-Second Pop." Sarah Bernard from "New York" magazine.
Good morning, Sarah.
SARAH BERNARD, "NEW YORK" MAGAZINE: Good morning.
HEMMER: B.J. Sigesmund, staff editor for "US Weekly."
B.J. SIGESMUND, "US WEEKLY": Good morning.
HEMMER: And VH1 contributor Jesse Klein is here as well.
JESSE KLEIN, VH1 CORRESPONDENT: Good morning.
HEMMER: Good morning to all three of you.
Let's first start with the really, really, really, really late, late, late show.
BERNARD: At 3:00 a.m. I think it's on.
HEMMER: Craig Kilborn, he's going to end the show. And who takes his place?
BERNARD: Well, that's the question of the day. I think we're talking about Amy Sedaris, who is this fantastic improv background, actress-comedian, who made her name really with a show called "Strangers With Candy." And I think the idea of having a woman is so great. This is the first time since basically Joan Rivers was being talked about to replace Johnny Carson in the '80s that a woman has been up for a job like this.
And she really might get it, because actually David Letterman's Worldwide Pants production company produced "Strangers with Candy," and also has the time slot for this show.
HEMMER: So she's got backing then, you're saying.
BERNARD: Yes, exactly.
SIGESMUND: I want to say, I love Amy Sedaris.
BERNARD: She's amazing.
SIGESMUND: She is such a New York personality. I've met her a couple times. She used to be a waitress at this cafe I went to six or seven years ago. But everyone I know...
BERNARD: She (UNINTELLIGIBLE) sometimes.
SIGESMUND: Yes. Everyone I know has met Amy Sedaris.
BERNARD: Yes.
SIGESMUND: She's just one of those people. She does a million things around New York.
KLEIN: She's a regular person. And, you know, she's the sister actually of writer David Sedaris. My idea would be if we could just create, like, a whole Sedaris channel, so that it's like all Sedaris all the time.
HEMMER: SNN. The producer, by the way, Mark Bernerts (ph), says don't believe the rumors.
SIGESMUND: Well, that's...
HEMMER: She's getting...
SIGESMUND: ... one of those things that are out there.
BERNARD: Well, I think maybe there is another one who should be considered. I think Tina Fey from "Saturday Night Live."
HEMMER: All right. I'll go with that.
BERNARD: She's a good writer...
HEMMER: Just do us a favor.
BERNARD: ... a good actress.
HEMMER: That's like the dark side of the moon for this schedule, by the way. Change the show time or change the name.
BERNARD: Did you know that there's TV all night long?
HEMMER: No!
KLEIN: I don't want to cause anarchy, but, Bill...
HEMMER: Yes.
KLEIN: ... at least as funny Craig Kilborn, I would say.
HEMMER: All right, OK.
Let's talk about the Boss. Boycott the Boss is a campaign. Some group in New York is leading it up. What's at issue here?
SIGESMUND: Right. Well, here's the deal, just to back it up for a second. On august 4, a group of 20 artists announced that they were going to tour through some swing states in October on this vote for change campaign. And that includes Bruce Springsteen, Pearl Jam, REM and few other groups.
Now, this is the first time Bruce Springsteen, very much a man of the people, has ever gotten into the political game over all of his years. But he said that this time he could not help himself. He had to speak up.
So, a conservative senatorial candidate from New York has spoken out and created this ad saying, you know, boycott the Boss, don't buy his music.
BERNARD: But, you know, he's been political. I mean, first of all, "Born in the USA" is a political song. That's actually about coming home from the Vietnam War. And he has that song "American Skin, 41 Shots," which was...
HEMMER: He's always had causes.
SIGESMUND: Yes.
HEMMER: But he's never really attached himself to a particular candidate at this point.
SIGESMUND: Right.
BERNARD: Not a candidate.
KLEIN: All I know is that the people who are asking America to boycott the Boss are making a huge, huge mistake. You don't boycott the Boss. If it was someone like Yanni, something like boycotting Yanni...
SIGESMUND: Exactly.
KLEIN: But, like, I don't what he says, I need to listen to the Boss.
SIGESMUND: Right.
BERNARD: I don't think it's going to have any affect on his sales.
(CROSSTALK)
SIGESMUND: I think it could. Well, I think it could backfire and get more people, spread the rumor -- or I'm sorry. Spread the word that Bruce Springsteen is out there bashing Bush.
KLEIN: Yes, that's right.
HEMMER: Well, the word is that Springsteen is not responding to this, but he might tell Ted Koppel...
BERNARD: Yes!
HEMMER: ... again and again.
Christiana Aguilera has a lot of body jewelry. And apparently she's...
BERNARD: That's a nice way of putting it.
HEMMER: ... changing her position on this?
KLEIN: She's changing her position. Apparently Christina Aguilera has decided that she's going to go for a classier look sort of like a Jackie O or a Grace Kelly, taking out all of the piercings except for one.
HEMMER: Hang on. Ears, belly button, eyebrow, lip and tongue.
KLEIN: Right, all of...
HEMMER: What's left?
KLEIN: All of those...
BERNARD: There are a couple more.
KLEIN: The one that's left is just the nipple ring. Again, Jackie O, Grace Kelly, they also had it. I don't know why she's doing this, actually. I think actually not that she needs it, but maybe this is like a new Hollywood diet where it helps you lose weight.
BERNARD: I think.
KLEIN: There's like at least two pounds of (UNINTELLIGIBLE) that's gone.
BERNARD: I think she's doing it because there is some cosmic connection between Christina and Britney, where when Britney is acting crazy and getting all of this interest...
KLEIN: That's right.
BERNARD: ... she has to be the classy one. And then it will just invert. You know, something else will happen...
SIGESMUND: Oh, I was going to say -- yes.
BERNARD: ... and Christina will be tattooed all over.
SIGESMUND: I was going say the exact same thing. You know, Britney -- remember it was always Britney and Christina, Christina and Britney back in the day. Well, over the last year they've really separated. And, you know, Christina is growing up, and Britney refuses to.
HEMMER: She once said when she gets unhappy she pierces another part of her body. It's kind of like women shopping, don't you think?
BERNARD: Yes.
KLEIN: Don't we all?
BERNARD: Maybe we should just take out her credit card, buy some clothes.
HEMMER: Thanks to all three of you. Good to see you this morning here.
KLEIN: Thank you.
HEMMER: Here's Heidi.
COLLINS: Still to come, frustration in Florida as angry residents are kept from their homes. We'll get the latest and talk to the mayor of Sanibel Island coming up on AMERICAN MORNING.
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 18, 2004 - 07:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: It's just about half past the hour now on this AMERICAN MORNING.
And it may be d-day in Najaf. Radical cleric Muqtada al-Sadr refusing to meet with an Iraqi delegation trying to bring peace to the city, but now it looks like one Iraqi official may have issued an ultimatum to al-Sadr. In just a moment, we're going to talk to a reporter who was traveling with the delegation when they went inside that shrine we've been talking about for several days now.
BILL HEMMER, CNN ANCHOR: It is getting serious. And, again, as we mentioned a short time ago, perhaps there is movement on that today.
Also, on a much lighter note, "90-Second Pop" a bit later. Christina Aguilera has pierced just about everything on her body. Now it looks like she's in the midst of an image overhaul. And our pop panel takes a shot at that, still to come.
COLLINS: For now back to Iraq, though, where the country is readying an assault on rebel forces in Najaf after an attempt at reaching a truce that that didn't work out. And there has been heavy fighting between U.S. troops and forces loyal to radical Shiite leader Muqtada al-Sadr again today, as there has been for two weeks. You see the video there.
A delegation from Baghdad returned this morning without meeting with al-Sadr. The peace negotiations crossed the battlefield to get to the Imam Ali Mosque, where al-Sadr and his people are holed up.
"Washington Post" reporter Rajiv Chandrasekaran was with the delegation.
(BEGIN VIDEOTAPE)
COLLINS: Rajiv, I know that you traveled with the Iraqi delegation through the American frontlines and directly into the shrine that we have been talking about the last several days. But the rebel cleric, Muqtada al-Sadr, refused to meet with the delegation that went to Najaf. How big of a setback is this?
RAJIV CHANDRASEKARAN, "WASHINGTON POST": Well, I think it's a pretty fundamental setback. This delegation from the Iraqi National Conference had wanted to see him face-to-face. They wanted to convey to him the gravity of the situation.
COLLINS: Rajiv, what sort of reason did Muqtada al-Sadr give for snubbing the delegation?
CHANDRASEKARAN: Well, Sadr's aides said that it blamed American military action in the area. They said there was artillery firing, other attacks that made it too unsafe for Muqtada al-Sadr to come to the shrine.
Now, it's not at all clear where he is. Some people believe he might have been in the shrine the whole time in another part of that vast compound, or at some other location pretty close by. The shrine and its surrounding areas are pretty much the safest parts of Najaf right now, because the Americans aren't directly attacking that compound.
COLLINS: What was the atmosphere like when you actually got into the shrine?
CHANDRASEKARAN: Well, it was very boisterous. It wasn't really tense. The young men -- and there were probably about 1,000 or more of them there that sort of had converged -- were quite happy to see this delegation. And as we walked up to the shrine we saw scores young militiamen with grenades and rifles, all of whom seemed to greet us quite openly and warmly.
And I think that they were hoping that there would be some sort of deal that would be in Sadr's favor that might be hammered out.
As we came in, it was a huge crush of people as we entered that shrine and made our way to the office. It sort of was like a mosh pit at a concert. Everybody was crowding around. In fact, I had to hold onto one of the delegates so I didn't get lost in the crowd. There was a lot of chanting, "long live Muqtada." So very, very lively and boisterous.
(END VIDEOTAPE)
COLLINS: Again, "Washington Post" reporter Rajiv Chandrasekaran for us this morning.
HEMMER: We're going to move to London right now, a developing story there. Eight terrorist suspects are now in a London courtroom -- in fact, at this hour -- including two thought to have had surveillance plans of financial buildings in New Jersey, New York and the Washington, D.C. area.
It was those discoveries that led to the most recent terrorist alerts. The men are among 13 arrested back on the 3rd of August. We do have a reporter there in London. We'll make contact a bit later this morning there.
In the meantime, though, back in this country, Washington has been divided into factions around the 9/11 Commission, those recommendations for a new intelligence chief. While the discussions continue in D.C., Ed Henry has an update for us this morning.
(BEGIN VIDEOTAPE) ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (voice-over): With support for a powerful national intelligence director picking up steam, Defense Secretary Donald Rumsfeld tried to hit the brakes.
DONALD RUMSFELD, SECRETARY OF DEFENSE: If we move unwisely and get it wrong, the penalty would be great.
HENRY: Rumsfeld, who controls most of the estimated $40 billion intelligence budget, doesn't relish giving up that authority. But President Bush has endorsed the concept of an NID, so Rumsfeld stuck to a cautious refrain.
RUMSFELD: I am not in a position to say anything other than the devil's in the details. We said the devil's in the details. You darn well better get it right.
HENRY: Rumsfeld was backed by the Joint Chiefs chairman. He warned that creating new bureaucracy would not be a panacea.
GEN. RICHARD MYERS, CHAIRMAN OF THE JOINT CHIEFS: There cannot be a czar that just starts pointing and pulling levers. There is no Wizard of Oz here that's going to solve this, in my opinion. It's got to be a collaborative effort.
HENRY: But this pits the defense chiefs against another powerful political force, the 9/11 families. Even as Rumsfeld spoke, they pushed for a strong national intelligence director at a separate hearing.
KRISTEN BREITWEISER, SEPTEMBER 11 ADVOCATE: Going forward, we must ensure that when intelligence community judgments are made and people are killed, at a bare minimum, someone in our intelligence community is held accountable. An NID would be that person.
HENRY (on camera): The 9/11 Commission will continue its push for reform this morning when co-chairs Tom Kean and Lee Hamilton head to a secure room in the Capitol for a closed hearing with the House Intelligence Committee.
Ed Henry, CNN, Washington.
(END VIDEOTAPE)
HEMMER: Let's move from Washington back overseas to London and Paula Hancocks outside the courthouse now, where those eight men were just inside the courthouse.
And what did we learn -- Paula? Good afternoon there.
PAULA HANCOCKS, CNN CORRESPONDENT: Hello there, Bill.
Well, this was the first court appearance for these eight suspects. They have been remanded in custody. They haven't been granted bail. They didn't apply for bail.
And the magistrate in this court here in Belmont high security prison has said that there's going to be a plea hearing on the 25th of August. So these eight suspects will be able to give their plea at the Central Criminal Court.
Now, they are all charged with conspiracy to murder and also conspiracy to cause public nuisance with the use of explosives or radioactive substances.
So that's the latest we have from here -- Bill.
HEMMER: All right, Paula, thanks. We'll track that from here. Paula Hancocks there in London.
Now to Heidi.
COLLINS: It's just about 37 minutes past the hour now. Carol Costello is standing by to have a look at the rest of the headlines for us this morning.
Carol -- good morning once again.
CAROL COSTELLO, CNN ANCHOR: Good morning, Heidi.
There is increasing pressure this morning on the New Jersey governor, Jim McGreevey, to resign early. Some lawmakers are calling for the governor to step down before a September deadline for special elections. In the next half-hour, we'll speak with an attorney who is suing to force a special state election later in the year.
Federal prosecutors are admitting a possible translation error as a key piece of evidence against two men accused of supporting terrorism. Authorities say Yassan Araf (ph) and Mohammad Hasain (ph) had attempted to launder money to buy a should-fired missile. Defense attorneys say the translation error undermines the entire government case and both men should get out on bail.
In California, a National Guardsman is the first soldier to sue the government for extending his military service. At issue is the stop loss program created after the September 11 attacks to extend military service of some 20,000 soldiers. His lawyer says the soldier already served in Iraq and could now be heading back there or to Afghanistan for another tour of duty.
And after 56 years, a package mailed from Belgium has finally arrived in the United States. Postal workers in Lancing, Illinois, receiving the package, postmarked "1948." It contained a U.S. flag that was draped over the coffin of World War II veteran Floyd Dust (ph). The package has now been forwarded to Dust's (ph) sister in Alabama. And we're assured it will get there in just a couple of days.
Back to New York now.
COLLINS: Oh, that's great. All right, Carol, thanks so much.
There are now 76 days until the November election. Yesterday, President Bush was campaigning in West Virginia and Pennsylvania. Today, he heads to two other battleground states, Wisconsin and Minnesota, before going to his Texas ranch.
And Senator John Kerry left Idaho yesterday for Ohio. Kerry had spent the last few days at his Idaho vacation home. Today, Kerry addresses the Veterans of Foreign Wars national convention in Cincinnati, where President Bush spoke on Monday. CNN will carry that speech live, coming your way at 10:30 a.m. Eastern.
John Kerry, Bob Kerrey, is it easy to get confused? Well, the Kerry campaign claims it was a simple mistake that led its Web site to tout that John Kerry once served as vice chairman of the Senate Select Committee on Intelligence, a post once held by former Senator Bob Kerrey. Senator John Kerry did serve as a member of that committee, but not as chairman.
Republicans, though, were less willing to see it as an innocent mistake. A Republican National Committee spokeswoman said -- quote -- "It's difficult to take John Kerry's claims about his intelligence experience seriously."
And Paula Zahn will be talking to undecided voters tonight in the battleground states of -- or state, that is, of Ohio. Don't miss her live town hall meeting coming up at 8:00 p.m. Eastern tonight.
HEMMER: Kerry and Kerrey separated by the letter E.
COLLINS: Yes, they are.
(WEATHER BREAK)
HEMMER: In a moment here on AMERICAN MORNING, Google's long- awaited IPO delayed yet again, but that may be good news for stock investors. Christine explains in a moment here.
COLLINS: And Bruce Springsteen may be in for all he can handle now that he's gotten political. Stay with us on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: Welcome back, everyone. Google is dropping its price on its IPO offering, but oil prices, they keep climbing, too.
So Christine Romans is working through this with Andy Serwer out on vacation, "Minding Your Business."
Good morning.
CHRISTINE ROMANS, CNN FINANCIAL NEWS: Let's start with Google, because is this a stock offering or is this a soap opera? I'm not sure. Every day there seems to be another stumbling block, another glitch.
We told you yesterday that Google had presented all of its registration documents to the SEC. And yesterday the SEC essentially didn't accept, didn't act on the paperwork.
Then today, Google is changing its tune here. It's cut its IPO price to $85 to $95 a share. Remember, it was above 100 earlier. That's more reasonable a lot of analysts are saying, because, you know, you just don't know what the growth potential is for this company going forward in the Internet space.
The founders are cutting how much stock they will be issuing, about 5 and a half million shares.
And the stumbling blocks, we've been really -- we've been chronicling this along the way. It's a slumping IPO market overall. The "Playboy" interview is now legendary, because some people think that maybe the company was talking when it shouldn't have been talking. It should have been a quiet period.
There is an informal inquiry into these 23 million shares that were registered potentially illegally. All kinds of little problems now...
HEMMER: They're setting the bar lower, too, though, in the game of expectations to protect themselves in the event that it doesn't go to the moon.
ROMANS: It is. It is. It is. But some people say that this is a potential brand problem for this company. What if the whole IPO thing just doesn't go well? What if the market is weak? What if it gets really sloppy? And then the brand, the Google brand is hurt. And what if a weak IPO hurts the whole market?
HEMMER: Help me understand. Why would the SEC not accept their paperwork?
ROMANS: They didn't say. They didn't say. Maybe it's because there is an investigation under way, maybe because they have some more questions that they're going to be answering, and maybe they think that it's all been rushing.
HEMMER: You know, something tells me we're going to be talking about this again tomorrow.
ROMANS: Yes.
HEMMER: Quickly on the markets, positive territory.
ROMANS: We'll be talking about that tomorrow, too, oil, because another record high for oil, $47 a barrel. Stocks were actually a little bit higher yesterday. We'll watch to see if stocks can hold up with oil at 47. Look at that. Look at that chart, $47, a lot of people say 50 is imminent, just like the Google IPO is imminent.
Oh, if I hear much anticipated IPO one more time, you know...
JACK CAFFERTY, CNN ANCHOR: Do you know what's imminent?
COLLINS: By who?
ROMANS: By everyone. You know, it's just so hyped and this IPO is so hyped. CAFFERTY: Do you know what's imminent? A decline in the sale of Hummers. That's imminent. I mean, $50 oil, I mean, you won't be able to afford to drive one.
COLLINS: Yes, that's for sure.
CAFFERTY: So that would be imminent.
ROMANS: Maybe the people who drive Hummers don't care about $50 oil.
CAFFERTY: Maybe not.
COLLINS: You're probably right there.
All right, "Question of the Day" now.
CAFFERTY: Yes, it's about that rebel cleric, Muqtada al-Sadr. He remains holed up in that Shiite shrine, which is something you say carefully, in the city of Najaf. A delegation of Iraqi political leaders went to the shrine yesterday. They offered him a deal. They said we'll give you amnesty for you and all of your followers and a role in the country's elections. This clown never even showed up for the meetings.
Now Iraq says the time to negotiate is over. Military preparations to liberate the shrine are complete. But, I mean, they've been doing this off and on for months, it seems like. They fight a while. They talk a while. They fight a while. They do nothing a while.
Meanwhile, al-Sadr is holding the entire process hostage from moving forward.
So here is some of what you have offered in the way of suggestions.
Shawn in Roanoke, Virginia: "Whatever is done with this cleric, it must be done by the Iraqis. In reality, there is no possibility of a positive conclusion no matter what is done. Martyrdom spawns a league of more fanatics. And to leave him alone undermines what little legitimacy the new Iraqi government has."
A guy named Jack writes: "Completely isolate Najaf. With a combination of U.S. and Iraqi troops, go door to door until al-Sadr is found, or announce that the first Iraqi to deliver his head to the troops searching for him will receive a sizable bounty. The idea that this thug in a robe is creating this much havoc is absurd."
Sandy in South Carolina: "Take him out behind the barn and give him the thrashing his father failed to give him. Teach him to respect his elders. And by elders, I don't mean the United States. I mean the true clerics of Iraq who wish he would sit down and shut up."
Charlie in Newport writes: "Level the mosque. It's no longer a holy shrine but a den of evil." And Mike in Las Vegas says: "Obviously he is protecting the weapons of mass destruction that are hidden in the mosque, so they should proceed with care."
COLLINS: OK. All right, Jack, thanks so much for that.
And still to come this morning, changes are ahead for late-night on CBS. Will it now be ladies' night? "90-Second Pop" is next. Stay with us on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: Time slips away and leaves you with nothing, mister, but boring stories of glory days. The best line in the whole song.
It's time for "90-Second Pop." Sarah Bernard from "New York" magazine.
Good morning, Sarah.
SARAH BERNARD, "NEW YORK" MAGAZINE: Good morning.
HEMMER: B.J. Sigesmund, staff editor for "US Weekly."
B.J. SIGESMUND, "US WEEKLY": Good morning.
HEMMER: And VH1 contributor Jesse Klein is here as well.
JESSE KLEIN, VH1 CORRESPONDENT: Good morning.
HEMMER: Good morning to all three of you.
Let's first start with the really, really, really, really late, late, late show.
BERNARD: At 3:00 a.m. I think it's on.
HEMMER: Craig Kilborn, he's going to end the show. And who takes his place?
BERNARD: Well, that's the question of the day. I think we're talking about Amy Sedaris, who is this fantastic improv background, actress-comedian, who made her name really with a show called "Strangers With Candy." And I think the idea of having a woman is so great. This is the first time since basically Joan Rivers was being talked about to replace Johnny Carson in the '80s that a woman has been up for a job like this.
And she really might get it, because actually David Letterman's Worldwide Pants production company produced "Strangers with Candy," and also has the time slot for this show.
HEMMER: So she's got backing then, you're saying.
BERNARD: Yes, exactly.
SIGESMUND: I want to say, I love Amy Sedaris.
BERNARD: She's amazing.
SIGESMUND: She is such a New York personality. I've met her a couple times. She used to be a waitress at this cafe I went to six or seven years ago. But everyone I know...
BERNARD: She (UNINTELLIGIBLE) sometimes.
SIGESMUND: Yes. Everyone I know has met Amy Sedaris.
BERNARD: Yes.
SIGESMUND: She's just one of those people. She does a million things around New York.
KLEIN: She's a regular person. And, you know, she's the sister actually of writer David Sedaris. My idea would be if we could just create, like, a whole Sedaris channel, so that it's like all Sedaris all the time.
HEMMER: SNN. The producer, by the way, Mark Bernerts (ph), says don't believe the rumors.
SIGESMUND: Well, that's...
HEMMER: She's getting...
SIGESMUND: ... one of those things that are out there.
BERNARD: Well, I think maybe there is another one who should be considered. I think Tina Fey from "Saturday Night Live."
HEMMER: All right. I'll go with that.
BERNARD: She's a good writer...
HEMMER: Just do us a favor.
BERNARD: ... a good actress.
HEMMER: That's like the dark side of the moon for this schedule, by the way. Change the show time or change the name.
BERNARD: Did you know that there's TV all night long?
HEMMER: No!
KLEIN: I don't want to cause anarchy, but, Bill...
HEMMER: Yes.
KLEIN: ... at least as funny Craig Kilborn, I would say.
HEMMER: All right, OK.
Let's talk about the Boss. Boycott the Boss is a campaign. Some group in New York is leading it up. What's at issue here?
SIGESMUND: Right. Well, here's the deal, just to back it up for a second. On august 4, a group of 20 artists announced that they were going to tour through some swing states in October on this vote for change campaign. And that includes Bruce Springsteen, Pearl Jam, REM and few other groups.
Now, this is the first time Bruce Springsteen, very much a man of the people, has ever gotten into the political game over all of his years. But he said that this time he could not help himself. He had to speak up.
So, a conservative senatorial candidate from New York has spoken out and created this ad saying, you know, boycott the Boss, don't buy his music.
BERNARD: But, you know, he's been political. I mean, first of all, "Born in the USA" is a political song. That's actually about coming home from the Vietnam War. And he has that song "American Skin, 41 Shots," which was...
HEMMER: He's always had causes.
SIGESMUND: Yes.
HEMMER: But he's never really attached himself to a particular candidate at this point.
SIGESMUND: Right.
BERNARD: Not a candidate.
KLEIN: All I know is that the people who are asking America to boycott the Boss are making a huge, huge mistake. You don't boycott the Boss. If it was someone like Yanni, something like boycotting Yanni...
SIGESMUND: Exactly.
KLEIN: But, like, I don't what he says, I need to listen to the Boss.
SIGESMUND: Right.
BERNARD: I don't think it's going to have any affect on his sales.
(CROSSTALK)
SIGESMUND: I think it could. Well, I think it could backfire and get more people, spread the rumor -- or I'm sorry. Spread the word that Bruce Springsteen is out there bashing Bush.
KLEIN: Yes, that's right.
HEMMER: Well, the word is that Springsteen is not responding to this, but he might tell Ted Koppel...
BERNARD: Yes!
HEMMER: ... again and again.
Christiana Aguilera has a lot of body jewelry. And apparently she's...
BERNARD: That's a nice way of putting it.
HEMMER: ... changing her position on this?
KLEIN: She's changing her position. Apparently Christina Aguilera has decided that she's going to go for a classier look sort of like a Jackie O or a Grace Kelly, taking out all of the piercings except for one.
HEMMER: Hang on. Ears, belly button, eyebrow, lip and tongue.
KLEIN: Right, all of...
HEMMER: What's left?
KLEIN: All of those...
BERNARD: There are a couple more.
KLEIN: The one that's left is just the nipple ring. Again, Jackie O, Grace Kelly, they also had it. I don't know why she's doing this, actually. I think actually not that she needs it, but maybe this is like a new Hollywood diet where it helps you lose weight.
BERNARD: I think.
KLEIN: There's like at least two pounds of (UNINTELLIGIBLE) that's gone.
BERNARD: I think she's doing it because there is some cosmic connection between Christina and Britney, where when Britney is acting crazy and getting all of this interest...
KLEIN: That's right.
BERNARD: ... she has to be the classy one. And then it will just invert. You know, something else will happen...
SIGESMUND: Oh, I was going to say -- yes.
BERNARD: ... and Christina will be tattooed all over.
SIGESMUND: I was going say the exact same thing. You know, Britney -- remember it was always Britney and Christina, Christina and Britney back in the day. Well, over the last year they've really separated. And, you know, Christina is growing up, and Britney refuses to.
HEMMER: She once said when she gets unhappy she pierces another part of her body. It's kind of like women shopping, don't you think?
BERNARD: Yes.
KLEIN: Don't we all?
BERNARD: Maybe we should just take out her credit card, buy some clothes.
HEMMER: Thanks to all three of you. Good to see you this morning here.
KLEIN: Thank you.
HEMMER: Here's Heidi.
COLLINS: Still to come, frustration in Florida as angry residents are kept from their homes. We'll get the latest and talk to the mayor of Sanibel Island coming up on AMERICAN MORNING.
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