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CNN Live At Daybreak

Ivan Barrels Along Overnight

Aired September 17, 2004 - 06:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: Ivan barrels along overnight, still bringing heavy rains and flooding to parts of the South.
It is Friday, September 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 little more than an hour ago, a suicide car bomb explodes near an Iraqi police convoy in Baghdad. Our Diana Muriel is in the Iraqi capital. She reports 20 Iraqis were killed, 40 more wounded.

Also in Iraq, the U.S.-led coalition says it killed about 60 so- called foreign fighters in an air strike in Fallujah. The coalition says the fighters had ties to a terrorist leader. Iraqis say many of the dead were women and children.

Chechen terrorist leader Shamil Basayev claims responsibility for that recent attack on a Russian school. But he claims President Putin caused the deaths by ordering troops to storm the building.

Different results from two new national polls on the Kerry-Bush race. A Gallup poll just out this morning shows the president widening his lead. But a Pew Center poll shows the race is a dead heat.

To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

I want to try to actually get to a forecast for you today. We've been concentrating so much on where the rainfall is, where it's going. Rainfall across parts of Ohio, also into Pennsylvania today. This is the region where the flooding will be probably the worst later on this afternoon. Some spots across the Allegheny Plateau and into the Ohio Valley. Here, we'll see five to six inches of rainfall everywhere. And then the rain continues all the way down into Atlanta, even to Columbia, into South Carolina, and one little tail all the way down to Valdosta, Georgia, now moving not that far to the west of Jacksonville.

(WEATHER REPORT) COSTELLO: Well, the pictures say it all. Check out this flooding in St. Bernard Parish, Louisiana. Floodwaters approached 20 feet in parts of this coastal area. A 12-foot alligator named Chuckie is hindering cleanup efforts in Gulf Shores, Alabama. That's the coastal town where Ivan crashed onto land. The Gulf Shores Zoo evacuated most of its animals. But Chuckie and five other alligators that had not been evacuated are now swimming around the flooded island. They're telling people to be very careful.

Ivan pummeled Florida's Panhandle. This is some of the damage in Pensacola. Some people have lost their businesses. Others have lost all of their possessions.

And heavy rains from a downgraded hurricane Ivan caused flooding all the way to North Carolina, where there were evacuations along rivers there and the power was out for thousands of people.

President Bush has already designated Florida, Alabama and Louisiana as disaster areas. About a million people along the Gulf Coast were left without power after Ivan scored a direct hit.

We're joined now by CNN's Sara Dorsey.

She's live in Pensacola, Florida with more -- good morning.

SARA DORSEY, CNN CORRESPONDENT: Good morning to you, Carol.

For the most part, people here are living without power and running water. And this is becoming more of an emotional experience than even a financial one. This has been the third storm they've had to plan for. And Ivan, for these folks, has been the most devastating.

(BEGIN VIDEO TAPE)

DORSEY (voice-over): Hurricane Ivan has left the Gulf Coast region, but its impact certainly won't soon be forgotten.

GOV. BOB RILEY (R), ALABAMA: There is utter devastation down on the beach especially. Other areas, if people can return, we want them to. We want to get people back in their homes just as fast as we possibly can. But on the beach, it just doesn't make any sense for anyone to go down now and even look at it.

DORSEY: Ivan continued to make a mark inland as it moved through the Southeast. In Montgomery, Alabama, high winds toppled trees and torrential rains flooded rivers and streams. The same was true as the storm hit Georgia.

Many residents who survived Ivan's wrath couldn't believe their eyes as they surveyed the damage.

UNIDENTIFIED MALE: Absolutely incredible. I mean I've grown up down here all my life and I've never seen water anything like this.

DORSEY: More than a million are without power. Some lost almost everything. That means starting entirely over from scratch.

UNIDENTIFIED MALE: Really just try to do what we can and hopefully, you know, the one -- a lot of times it feels like the things that we do, it's just a small piece of what needs to be done.

(END VIDEO TAPE)

DORSEY: Interstate 10, the main corridor connecting the Panhandle to the eastern part of the state, is closed. The DOT is saying there is major structural damage and it will be a significant amount of time before that's reopened.

We're live in Pensacola, Florida.

Sara Dorsey.

Now back to you -- Carol.

COSTELLO: Thank you, Sara.

For some of the people in the Florida Panhandle, the destruction came from what Ivan spawned. At least a dozen tornadoes swept through the area, some with deadly results.

CNN's David Mattingly looks at the remains of one devastated community.

(BEGIN VIDEO TAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): In pitch darkness, the unmistakable roar of wind told Nikki Dawsey something terrible had happened. Just down the road, the double wide mobile home of her aunt and uncle, Melvin and Frances Terry (ph) of Calhoun County, Florida, was caught in the path of an Ivan spawned tornado.

NIKKI DAWSEY, TORNADO SURVIVOR: Oh, they were good people. They were good people. They would help anybody in this world, no matter who they were or how bad they were. They were good people.

MATTINGLY: Dawsey's uncle died at the scene, as did her cousin Donna. Her aunt and two other cousins were badly injured. Their home was utterly shattered. Finding something to salvage was almost impossible.

(on camera): These cement posts are all that's left of the couple's home. According to family members, they have been through storms before and this time they thought they'd be OK. But when the tornado hit, it picked up their home and threw it over there into the neighbor's house.

(voice-over): The neighbors, who also decided to stay, survived. In all, four people were killed in this tiny Panhandle community near Blountstown, a place where choosing to stay or go proved for some to be a life or death decision.

UNIDENTIFIED MALE: She's a worry wart. UNIDENTIFIED FEMALE: What did she say to you when she called?

UNIDENTIFIED FEMALE: You are crazy to stay in the house. You need to get out and come up here. You're not safe.

MATTINGLY: Chris Ammans (ph) and Santana Sullivan believe they are alive because of a nervous phone call from her mother.

UNIDENTIFIED FEMALE: His soon to be mother-in-law called them and told them that they needed to get to the motel. And she meant they wanted them at the motel.

MATTINGLY: The couple is due to be married next month and don't intend to let Ivan change their plans. Their wedding rings were lost somewhere inside the rubble of their demolish home. Fortunately, the future they have planned together was not.

David Mattingly, CNN, Blountstown, Florida.

(END VIDEO TAPE)

COSTELLO: We've been covering developing news out of Iraq this morning. Baghdad the scene of another deadly suicide bombing. It happened about 90 minutes ago. There are early reports of many dead and wounded.

Let's head live to Baghdad now and Diana Muriel -- good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol.

Well, we're getting those early numbers on just how many may have died or been injured in this terrible car bomb incident that took place, as you say, just 90 minutes ago here in Baghdad.

Local police on the ground are saying that about 20 people are dead and more than 40 wounded. But we've just heard from the health ministry, who have confirmed that there are five people dead. We do expect those numbers to rise.

What happened in Al-Rasheed Street in central Baghdad earlier this morning was that a police convoy of about six vehicles was traveling down the road in marked police cars. A car drove up alongside them and detonated a huge explosive. Most of the dead appear to be those who were traveling in those six vehicles and, of course, civilians in the area.

This is a very busy shopping district here in central Baghdad. Quiet on a Friday, which is the day of rest here in Iraq, but nonetheless, there would have been a lot of people there window shopping and shopping from the street vendors who have market stalls in that area.

The U.S. troops have arrived on the scene and they're assisting police with their inquiry, with the investigation that's beginning there. This is, of course, the second time that the police have been targeted this week in a massive car bomb. The first one on Tuesday in Haifa Street, outside a police station, where 47 people died.

In Haifa Street today, U.S. troops were more successful in averting another attempt at a car bomb. A car driving very fast tried to ram a checkpoint that was being manned by U.S. soldiers. The U.S. troops fired on the vehicle, killing the two men inside. It transpired later that on board was another huge explosive that they were presumably attempting to detonate once they had ran through that checkpoint.

So one successful attempt and one unsuccessful attempt by this -- by the insurgents here in Baghdad. And at the moment, we are looking at something in the order of around 20 dead, possibly, and around 40 wounded -- Carol.

COSTELLO: Diana Muriel live from Baghdad this morning.

Thank you.

Victims of more than one hurricane this season will find an unpleasant surprise when they file claims with their insurance companies. We'll explain at 15 minutes past.

And illegal, that is what U.N. Secretary General Kofi Annan is calling the U.S. invasion of Iraq. Details on that in 15 minutes.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 6:13 Eastern.

Here's what's all new this morning.

Heavy rains from a downgraded hurricane Ivan caused flooding all the way to North Carolina. There were evacuations along rivers there and power was out to thousands of people.

Scott Peterson was visibly shaken and cried during testimony about the autopsy of his unborn son Conner. An expert testified that Laci Peterson had not given birth before her death.

Stricter security standards are on tap for travelers beginning next week. The Transportation Security Administration says airport screens will conduct more pat down searches. They'll also do more checks of carryon luggage.

In money news, the Fed says you're getting richer, really. Total household wealth jumped to a record $46 trillion in the second quarter of this year. That's an increase of almost 1 1/2 percent. In culture, the prime time Emmy Awards are scheduled for Sunday night. HBO is hoping to carry away the lion's share. They lead the way with 124 nominations. NBC a distant second with 65.

In sports, Boston Red Sox pitcher Kurt Schilling notched his 20th win of the season by beating the Tampa Bay Devil Rays 11-4. The victory keeps the Sox five and a half games ahead of the Angels in the American League wild card race -- Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Hurricane victims are sending claims to their insurance companies. But what happens if you were struck by two of the recent hurricanes or maybe even three?

Carrie Lee has answers for you live from the Nasdaq market site -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

A lot of people aren't happy about this. Three storms ripping through the Southeast. Orlando, for example, hit by hurricane Charley and hurricane Frances. And for people who are filing insurance, there is a good chance they're going to have to pay two deductibles. That's what the law dictates. "USA Today" reporting that the law requires victims to file for two separate claims. Florida insurance regulators have received over 900 complaints from homeowners who have been told they have to pay two deductibles.

For example, a homeowner who gets hit with two 2 percent deductibles on a home valued at $200,000 will have to pay $8,000 before insurance begins to pick up the tab. Some people wondering why they have insurance in the first place. A lot of people saying that this isn't fair, that the laws should be changed.

Also, a lot of homeowners are complaining that they don't have much of a choice in choosing a deductible that's right for them. So this could very well begin a debate and perhaps we'll see some debate about changing the law on this front.

Meanwhile, turning to stocks, futures pointing higher for today's session. It looks like we can see some buying at the 9:30 opening bell.

Texas Instruments one stock to watch. It was a nice gainer last night, up about 2 1/2 percent. TXN says it has plans to buy back $1 billion wroth of shares and they're raising their dividend by 18 percent. Texas Instruments a big communications chip maker.

And that's the latest business news.

Carol -- back to you. COSTELLO: Thank you, Carrie.

A new report paints a pessimistic picture of Iraq. We'll have details for you ahead.

Plus, strong language from Kofi Annan on the U.S. invasion of Iraq. We'll have that story next.

And later, a look at where the candidates stand in a new presidential poll as they exchange pot shots over the war in Iraq.

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: A newly revealed intelligence warning takes a hard look at the realities of the future of Iraq. Sources say the report, prepared for the intelligence community, gives a grim outlook for Iraq's future. The worst case scenario predicts Iraq faces civil war. The report was sent to the White House in July. Presidential advisers say the information is nothing new, but they add it's realistic to expect increased violence in Iraq.

U.N. Secretary General Kofi Annan took a swipe at the U.S. war in Iraq, calling the invasion illegal. Annan says it didn't conform with the United Nations charter. And that drew sharp reaction from U.S. allies in Iraq, along with a rebuke from the secretary of state, Colin Powell.

CNN's Kitty Pilgrim has more.

(BEGIN VIDEO TAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): The secretary general abruptly walked away from a press conference today without addressing the issue. His spokesman did little to clear up the issue earlier, saying it was nothing new. But that's not how the world took it.

JOHN DANFORTH, U.S. AMBASSADOR TO U.N.: We don't agree with the secretary general on this point.

PILGRIM: Prime Minister Tony Blair's government also came out saying they strongly disagreed with the U.N. secretary general. Australian prime minister John Howard slammed the U.N., saying it was, quote, "paralyzed," and the invasion of Iraq was entirely valid.

JOHN HOWARD, AUSTRALIAN PRIME MINISTER: I'm a little surprised that eighteen months or more after the event, this issue is being raised.

PILGRIM: For Howard, the timing couldn't be worse. He faces election in about three weeks, and his opponent is running on a campaign pledge to bring Australian troops home.

U.S. experts say Annan's remarks are, quote, "unhelpful" to U.S. elections, and at this time, make no sense.

AMB. EDWARD WALKER, MIDDLE EAST INSTITUTE: I don't understand quite what he means by legal. The Security Council has authorized the current situation. They have supported the government of Allawi, and they have been in favor of the elections in January.

PILGRIM: Kofi Annan also said there could not be credible elections in Iraq in the current security climate, but it's up to the U.N. to help run the elections.

PROF. ABRAHAM SOFAER, HOOVER INSTITUTION: There is a lot of pressure on the secretary general and the U.N. as an organization right now to perform its role, especially in connection with the elections. And this could be a signal from him that he simply can't do it, and he is shifting the blame once again to the U.S. and its allies.

PILGRIM: The U.S. ambassador to the United Nations responded there would be no delay in Iraqi elections.

(END VIDEO TAPE)

COSTELLO: Once again that report from CNN's Kitty Pilgrim.

Ivan trudges onward. A live report ahead on some of the devastation left behind in one Gulf Coast city.

And from infancy through their teenaged years, how are your kids affected by watching television? At 10 minutes until the hour, "Parenting" magazine joins us with some interesting revelations. They have a new study out.

This is DAYBREAK for a Friday morning.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you.

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

Thank you for joining us today.

Hurricane Ivan left a path of destruction all along the Gulf Coast. One of the hardest hit areas is just east of where the storm made landfall.

CNN's Chris Lawrence is in Pensacola, Florida, where they're still assessing the damage -- good morning.

CHRIS LAWRENCE, CNN CORRESPONDENT: Hey, good morning, Carol.

Unfortunately, there hasn't been a whole lot of improvement from yesterday until today. Basically, everything from here and west is still cut off, virtually, from the rest of Florida. Interstate 10 is still shut down in both directions as we take a look now at some of the damage there. A piece of it basically is missing in the center of it, out over Escambia Bay. It collapsed during the hurricane and police are blocking that from people who are driving getting anywhere near it.

Some of the witnesses tell us that it was almost like a giant hand picked up the highway and jerked it hard and left several sections of it missing.

Now, that's not the only damage you're going to see here in Pensacola. Going into the city, four of the major hospitals were damaged. One of them suffered pretty significant damage in certain parts. There was a section of the wall that was literally, at times people reported that the wall was literally peeling off the side of the building.

There were a lot of patients in there, well over 100 patients. Some of them in the rehabilitation institute were quadriplegic. They couldn't move themselves. The nurses were scrambling pretty much all night, trying to move them away from the windows as the winds were smashing holes in those windows.

So it has been a very, pretty much a very tough time for a lot of people here, extensive wind damage. And this is just in the general vicinity of Pensacola in the outlying areas. We haven't even got to the beach areas because access has been closed down. Some of the air helicopters could not land yesterday. They hope to be able to get out today. The governor is going to be touring, Governor Jeb Bush is going to be touring some of the areas today.

But from all the damage that we've seen around the Pensacola area, it could be much worse once we get a look at some of those beach areas -- Carol.

COSTELLO: Are people coming back yet, Chris?

LAWRENCE: No. In fact, the emergency center is still advising people to stay off the roads, and if you're in a shelter, to stay in the shelter right now. They're trying to get the roads clear, could perhaps have them clear by Monday. But if you drive around, literally, just for us to get here, I mean you've got to go off the road into like ditches and dirt to get around some of these huge trees that are blocking almost complete portions of the highway.

COSTELLO: Chris Lawrence reporting live from Pensacola, Florida this morning.

Thank you.

Casinos along the Mississippi's Gulf Coast are set to reopen this morning after being largely untouched by hurricane Ivan. Thousands of people, though, left without power. But most of Mississippi was spared the worse.

CNN's Susan Candiotti has the story of some who watched the storm blow by near Biloxi, Mississippi.

(BEGIN VIDEO TAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT: All I see are some downed branches here.

UNIDENTIFIED MALE: We lost a couple of trees, in fact. But we were fortunate.

CANDIOTTI (voice-over): On the day after Ivan, the Adams family admits it lucked out.

C. ADAMS: Well, I have to admit, I was skeptical.

UNIDENTIFIED MALE: I know you think we're crazy, but we didn't leave simply because I've been through Camille.

CANDIOTTI: They opted to face down Ivan from their beachfront, 94-year-old home, despite a mandatory evacuation order. Catherine Adams and her husband say they weren't trying to be brave, they just felt a homestead that survived a category five storm named Camille in '69 could survive Ivan.

UNIDENTIFIED MALE: We feel lucky. We were very fortunate.

CANDIOTTI: Harrison County Sheriff's Lieutenant Greg Frederico (ph) says the Adams' example is now one he'd encourage.

LT. GREG FREDERICO: What happened then may not happen next time. We may be in a situation where we have to rescue them and we can't.

CANDIOTTI: Farther down the road on the bayou, Lieutenant Frederico checks on another family.

UNIDENTIFIED FEMALE: Yes?

FREDERICO: Hi. Lieutenant Frederico again.

UNIDENTIFIED FEMALE: Hi.

FREDERICO: How are you doing?

CANDIOTTI: On Wednesday, this family signed a next of kin notification form in case they didn't make it.

FREDERICO: With the evacuation order, you know, we know it's hard on people. We understand that. It's hard to displace families. But we -- it's done with your best interests in mind, especially the children.

CANDIOTTI: The woman listens politely. But Lieutenant Frederico is convinced if they were ordered to leave again, they wouldn't.

(on camera): Lieutenant, do you think this family learned any lessons?

FREDERICO: No. I don't think they did and I don't think they will evacuate next time. In talking to her just now, they're dead set on staying here.

CANDIOTTI (voice-over): A problem facing disaster planners next time.

UNIDENTIFIED FEMALE: Thank you.

FREDERICO: We're trying to educate people to the dangers of water, the dangers of win, how they don't mix.

CANDIOTTI: Susan Candiotti, CNN, Pass Christian, Mississippi.

(END VIDEO TAPE)

COSTELLO: Let's talk about damage estimates now from hurricanes Ivan, Frances and Charley. They're slowly coming in. Fitch Ratings estimates that losses from hurricane Ivan are expected to hit between $4 billion and $10 billion.

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 September 17, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Ivan barrels along overnight, still bringing heavy rains and flooding to parts of the South.
It is Friday, September 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 little more than an hour ago, a suicide car bomb explodes near an Iraqi police convoy in Baghdad. Our Diana Muriel is in the Iraqi capital. She reports 20 Iraqis were killed, 40 more wounded.

Also in Iraq, the U.S.-led coalition says it killed about 60 so- called foreign fighters in an air strike in Fallujah. The coalition says the fighters had ties to a terrorist leader. Iraqis say many of the dead were women and children.

Chechen terrorist leader Shamil Basayev claims responsibility for that recent attack on a Russian school. But he claims President Putin caused the deaths by ordering troops to storm the building.

Different results from two new national polls on the Kerry-Bush race. A Gallup poll just out this morning shows the president widening his lead. But a Pew Center poll shows the race is a dead heat.

To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

I want to try to actually get to a forecast for you today. We've been concentrating so much on where the rainfall is, where it's going. Rainfall across parts of Ohio, also into Pennsylvania today. This is the region where the flooding will be probably the worst later on this afternoon. Some spots across the Allegheny Plateau and into the Ohio Valley. Here, we'll see five to six inches of rainfall everywhere. And then the rain continues all the way down into Atlanta, even to Columbia, into South Carolina, and one little tail all the way down to Valdosta, Georgia, now moving not that far to the west of Jacksonville.

(WEATHER REPORT) COSTELLO: Well, the pictures say it all. Check out this flooding in St. Bernard Parish, Louisiana. Floodwaters approached 20 feet in parts of this coastal area. A 12-foot alligator named Chuckie is hindering cleanup efforts in Gulf Shores, Alabama. That's the coastal town where Ivan crashed onto land. The Gulf Shores Zoo evacuated most of its animals. But Chuckie and five other alligators that had not been evacuated are now swimming around the flooded island. They're telling people to be very careful.

Ivan pummeled Florida's Panhandle. This is some of the damage in Pensacola. Some people have lost their businesses. Others have lost all of their possessions.

And heavy rains from a downgraded hurricane Ivan caused flooding all the way to North Carolina, where there were evacuations along rivers there and the power was out for thousands of people.

President Bush has already designated Florida, Alabama and Louisiana as disaster areas. About a million people along the Gulf Coast were left without power after Ivan scored a direct hit.

We're joined now by CNN's Sara Dorsey.

She's live in Pensacola, Florida with more -- good morning.

SARA DORSEY, CNN CORRESPONDENT: Good morning to you, Carol.

For the most part, people here are living without power and running water. And this is becoming more of an emotional experience than even a financial one. This has been the third storm they've had to plan for. And Ivan, for these folks, has been the most devastating.

(BEGIN VIDEO TAPE)

DORSEY (voice-over): Hurricane Ivan has left the Gulf Coast region, but its impact certainly won't soon be forgotten.

GOV. BOB RILEY (R), ALABAMA: There is utter devastation down on the beach especially. Other areas, if people can return, we want them to. We want to get people back in their homes just as fast as we possibly can. But on the beach, it just doesn't make any sense for anyone to go down now and even look at it.

DORSEY: Ivan continued to make a mark inland as it moved through the Southeast. In Montgomery, Alabama, high winds toppled trees and torrential rains flooded rivers and streams. The same was true as the storm hit Georgia.

Many residents who survived Ivan's wrath couldn't believe their eyes as they surveyed the damage.

UNIDENTIFIED MALE: Absolutely incredible. I mean I've grown up down here all my life and I've never seen water anything like this.

DORSEY: More than a million are without power. Some lost almost everything. That means starting entirely over from scratch.

UNIDENTIFIED MALE: Really just try to do what we can and hopefully, you know, the one -- a lot of times it feels like the things that we do, it's just a small piece of what needs to be done.

(END VIDEO TAPE)

DORSEY: Interstate 10, the main corridor connecting the Panhandle to the eastern part of the state, is closed. The DOT is saying there is major structural damage and it will be a significant amount of time before that's reopened.

We're live in Pensacola, Florida.

Sara Dorsey.

Now back to you -- Carol.

COSTELLO: Thank you, Sara.

For some of the people in the Florida Panhandle, the destruction came from what Ivan spawned. At least a dozen tornadoes swept through the area, some with deadly results.

CNN's David Mattingly looks at the remains of one devastated community.

(BEGIN VIDEO TAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): In pitch darkness, the unmistakable roar of wind told Nikki Dawsey something terrible had happened. Just down the road, the double wide mobile home of her aunt and uncle, Melvin and Frances Terry (ph) of Calhoun County, Florida, was caught in the path of an Ivan spawned tornado.

NIKKI DAWSEY, TORNADO SURVIVOR: Oh, they were good people. They were good people. They would help anybody in this world, no matter who they were or how bad they were. They were good people.

MATTINGLY: Dawsey's uncle died at the scene, as did her cousin Donna. Her aunt and two other cousins were badly injured. Their home was utterly shattered. Finding something to salvage was almost impossible.

(on camera): These cement posts are all that's left of the couple's home. According to family members, they have been through storms before and this time they thought they'd be OK. But when the tornado hit, it picked up their home and threw it over there into the neighbor's house.

(voice-over): The neighbors, who also decided to stay, survived. In all, four people were killed in this tiny Panhandle community near Blountstown, a place where choosing to stay or go proved for some to be a life or death decision.

UNIDENTIFIED MALE: She's a worry wart. UNIDENTIFIED FEMALE: What did she say to you when she called?

UNIDENTIFIED FEMALE: You are crazy to stay in the house. You need to get out and come up here. You're not safe.

MATTINGLY: Chris Ammans (ph) and Santana Sullivan believe they are alive because of a nervous phone call from her mother.

UNIDENTIFIED FEMALE: His soon to be mother-in-law called them and told them that they needed to get to the motel. And she meant they wanted them at the motel.

MATTINGLY: The couple is due to be married next month and don't intend to let Ivan change their plans. Their wedding rings were lost somewhere inside the rubble of their demolish home. Fortunately, the future they have planned together was not.

David Mattingly, CNN, Blountstown, Florida.

(END VIDEO TAPE)

COSTELLO: We've been covering developing news out of Iraq this morning. Baghdad the scene of another deadly suicide bombing. It happened about 90 minutes ago. There are early reports of many dead and wounded.

Let's head live to Baghdad now and Diana Muriel -- good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol.

Well, we're getting those early numbers on just how many may have died or been injured in this terrible car bomb incident that took place, as you say, just 90 minutes ago here in Baghdad.

Local police on the ground are saying that about 20 people are dead and more than 40 wounded. But we've just heard from the health ministry, who have confirmed that there are five people dead. We do expect those numbers to rise.

What happened in Al-Rasheed Street in central Baghdad earlier this morning was that a police convoy of about six vehicles was traveling down the road in marked police cars. A car drove up alongside them and detonated a huge explosive. Most of the dead appear to be those who were traveling in those six vehicles and, of course, civilians in the area.

This is a very busy shopping district here in central Baghdad. Quiet on a Friday, which is the day of rest here in Iraq, but nonetheless, there would have been a lot of people there window shopping and shopping from the street vendors who have market stalls in that area.

The U.S. troops have arrived on the scene and they're assisting police with their inquiry, with the investigation that's beginning there. This is, of course, the second time that the police have been targeted this week in a massive car bomb. The first one on Tuesday in Haifa Street, outside a police station, where 47 people died.

In Haifa Street today, U.S. troops were more successful in averting another attempt at a car bomb. A car driving very fast tried to ram a checkpoint that was being manned by U.S. soldiers. The U.S. troops fired on the vehicle, killing the two men inside. It transpired later that on board was another huge explosive that they were presumably attempting to detonate once they had ran through that checkpoint.

So one successful attempt and one unsuccessful attempt by this -- by the insurgents here in Baghdad. And at the moment, we are looking at something in the order of around 20 dead, possibly, and around 40 wounded -- Carol.

COSTELLO: Diana Muriel live from Baghdad this morning.

Thank you.

Victims of more than one hurricane this season will find an unpleasant surprise when they file claims with their insurance companies. We'll explain at 15 minutes past.

And illegal, that is what U.N. Secretary General Kofi Annan is calling the U.S. invasion of Iraq. Details on that in 15 minutes.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 6:13 Eastern.

Here's what's all new this morning.

Heavy rains from a downgraded hurricane Ivan caused flooding all the way to North Carolina. There were evacuations along rivers there and power was out to thousands of people.

Scott Peterson was visibly shaken and cried during testimony about the autopsy of his unborn son Conner. An expert testified that Laci Peterson had not given birth before her death.

Stricter security standards are on tap for travelers beginning next week. The Transportation Security Administration says airport screens will conduct more pat down searches. They'll also do more checks of carryon luggage.

In money news, the Fed says you're getting richer, really. Total household wealth jumped to a record $46 trillion in the second quarter of this year. That's an increase of almost 1 1/2 percent. In culture, the prime time Emmy Awards are scheduled for Sunday night. HBO is hoping to carry away the lion's share. They lead the way with 124 nominations. NBC a distant second with 65.

In sports, Boston Red Sox pitcher Kurt Schilling notched his 20th win of the season by beating the Tampa Bay Devil Rays 11-4. The victory keeps the Sox five and a half games ahead of the Angels in the American League wild card race -- Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Hurricane victims are sending claims to their insurance companies. But what happens if you were struck by two of the recent hurricanes or maybe even three?

Carrie Lee has answers for you live from the Nasdaq market site -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

A lot of people aren't happy about this. Three storms ripping through the Southeast. Orlando, for example, hit by hurricane Charley and hurricane Frances. And for people who are filing insurance, there is a good chance they're going to have to pay two deductibles. That's what the law dictates. "USA Today" reporting that the law requires victims to file for two separate claims. Florida insurance regulators have received over 900 complaints from homeowners who have been told they have to pay two deductibles.

For example, a homeowner who gets hit with two 2 percent deductibles on a home valued at $200,000 will have to pay $8,000 before insurance begins to pick up the tab. Some people wondering why they have insurance in the first place. A lot of people saying that this isn't fair, that the laws should be changed.

Also, a lot of homeowners are complaining that they don't have much of a choice in choosing a deductible that's right for them. So this could very well begin a debate and perhaps we'll see some debate about changing the law on this front.

Meanwhile, turning to stocks, futures pointing higher for today's session. It looks like we can see some buying at the 9:30 opening bell.

Texas Instruments one stock to watch. It was a nice gainer last night, up about 2 1/2 percent. TXN says it has plans to buy back $1 billion wroth of shares and they're raising their dividend by 18 percent. Texas Instruments a big communications chip maker.

And that's the latest business news.

Carol -- back to you. COSTELLO: Thank you, Carrie.

A new report paints a pessimistic picture of Iraq. We'll have details for you ahead.

Plus, strong language from Kofi Annan on the U.S. invasion of Iraq. We'll have that story next.

And later, a look at where the candidates stand in a new presidential poll as they exchange pot shots over the war in Iraq.

This is DAYBREAK.

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COSTELLO: A newly revealed intelligence warning takes a hard look at the realities of the future of Iraq. Sources say the report, prepared for the intelligence community, gives a grim outlook for Iraq's future. The worst case scenario predicts Iraq faces civil war. The report was sent to the White House in July. Presidential advisers say the information is nothing new, but they add it's realistic to expect increased violence in Iraq.

U.N. Secretary General Kofi Annan took a swipe at the U.S. war in Iraq, calling the invasion illegal. Annan says it didn't conform with the United Nations charter. And that drew sharp reaction from U.S. allies in Iraq, along with a rebuke from the secretary of state, Colin Powell.

CNN's Kitty Pilgrim has more.

(BEGIN VIDEO TAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): The secretary general abruptly walked away from a press conference today without addressing the issue. His spokesman did little to clear up the issue earlier, saying it was nothing new. But that's not how the world took it.

JOHN DANFORTH, U.S. AMBASSADOR TO U.N.: We don't agree with the secretary general on this point.

PILGRIM: Prime Minister Tony Blair's government also came out saying they strongly disagreed with the U.N. secretary general. Australian prime minister John Howard slammed the U.N., saying it was, quote, "paralyzed," and the invasion of Iraq was entirely valid.

JOHN HOWARD, AUSTRALIAN PRIME MINISTER: I'm a little surprised that eighteen months or more after the event, this issue is being raised.

PILGRIM: For Howard, the timing couldn't be worse. He faces election in about three weeks, and his opponent is running on a campaign pledge to bring Australian troops home.

U.S. experts say Annan's remarks are, quote, "unhelpful" to U.S. elections, and at this time, make no sense.

AMB. EDWARD WALKER, MIDDLE EAST INSTITUTE: I don't understand quite what he means by legal. The Security Council has authorized the current situation. They have supported the government of Allawi, and they have been in favor of the elections in January.

PILGRIM: Kofi Annan also said there could not be credible elections in Iraq in the current security climate, but it's up to the U.N. to help run the elections.

PROF. ABRAHAM SOFAER, HOOVER INSTITUTION: There is a lot of pressure on the secretary general and the U.N. as an organization right now to perform its role, especially in connection with the elections. And this could be a signal from him that he simply can't do it, and he is shifting the blame once again to the U.S. and its allies.

PILGRIM: The U.S. ambassador to the United Nations responded there would be no delay in Iraqi elections.

(END VIDEO TAPE)

COSTELLO: Once again that report from CNN's Kitty Pilgrim.

Ivan trudges onward. A live report ahead on some of the devastation left behind in one Gulf Coast city.

And from infancy through their teenaged years, how are your kids affected by watching television? At 10 minutes until the hour, "Parenting" magazine joins us with some interesting revelations. They have a new study out.

This is DAYBREAK for a Friday morning.

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COSTELLO: And good morning to you.

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

Thank you for joining us today.

Hurricane Ivan left a path of destruction all along the Gulf Coast. One of the hardest hit areas is just east of where the storm made landfall.

CNN's Chris Lawrence is in Pensacola, Florida, where they're still assessing the damage -- good morning.

CHRIS LAWRENCE, CNN CORRESPONDENT: Hey, good morning, Carol.

Unfortunately, there hasn't been a whole lot of improvement from yesterday until today. Basically, everything from here and west is still cut off, virtually, from the rest of Florida. Interstate 10 is still shut down in both directions as we take a look now at some of the damage there. A piece of it basically is missing in the center of it, out over Escambia Bay. It collapsed during the hurricane and police are blocking that from people who are driving getting anywhere near it.

Some of the witnesses tell us that it was almost like a giant hand picked up the highway and jerked it hard and left several sections of it missing.

Now, that's not the only damage you're going to see here in Pensacola. Going into the city, four of the major hospitals were damaged. One of them suffered pretty significant damage in certain parts. There was a section of the wall that was literally, at times people reported that the wall was literally peeling off the side of the building.

There were a lot of patients in there, well over 100 patients. Some of them in the rehabilitation institute were quadriplegic. They couldn't move themselves. The nurses were scrambling pretty much all night, trying to move them away from the windows as the winds were smashing holes in those windows.

So it has been a very, pretty much a very tough time for a lot of people here, extensive wind damage. And this is just in the general vicinity of Pensacola in the outlying areas. We haven't even got to the beach areas because access has been closed down. Some of the air helicopters could not land yesterday. They hope to be able to get out today. The governor is going to be touring, Governor Jeb Bush is going to be touring some of the areas today.

But from all the damage that we've seen around the Pensacola area, it could be much worse once we get a look at some of those beach areas -- Carol.

COSTELLO: Are people coming back yet, Chris?

LAWRENCE: No. In fact, the emergency center is still advising people to stay off the roads, and if you're in a shelter, to stay in the shelter right now. They're trying to get the roads clear, could perhaps have them clear by Monday. But if you drive around, literally, just for us to get here, I mean you've got to go off the road into like ditches and dirt to get around some of these huge trees that are blocking almost complete portions of the highway.

COSTELLO: Chris Lawrence reporting live from Pensacola, Florida this morning.

Thank you.

Casinos along the Mississippi's Gulf Coast are set to reopen this morning after being largely untouched by hurricane Ivan. Thousands of people, though, left without power. But most of Mississippi was spared the worse.

CNN's Susan Candiotti has the story of some who watched the storm blow by near Biloxi, Mississippi.

(BEGIN VIDEO TAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT: All I see are some downed branches here.

UNIDENTIFIED MALE: We lost a couple of trees, in fact. But we were fortunate.

CANDIOTTI (voice-over): On the day after Ivan, the Adams family admits it lucked out.

C. ADAMS: Well, I have to admit, I was skeptical.

UNIDENTIFIED MALE: I know you think we're crazy, but we didn't leave simply because I've been through Camille.

CANDIOTTI: They opted to face down Ivan from their beachfront, 94-year-old home, despite a mandatory evacuation order. Catherine Adams and her husband say they weren't trying to be brave, they just felt a homestead that survived a category five storm named Camille in '69 could survive Ivan.

UNIDENTIFIED MALE: We feel lucky. We were very fortunate.

CANDIOTTI: Harrison County Sheriff's Lieutenant Greg Frederico (ph) says the Adams' example is now one he'd encourage.

LT. GREG FREDERICO: What happened then may not happen next time. We may be in a situation where we have to rescue them and we can't.

CANDIOTTI: Farther down the road on the bayou, Lieutenant Frederico checks on another family.

UNIDENTIFIED FEMALE: Yes?

FREDERICO: Hi. Lieutenant Frederico again.

UNIDENTIFIED FEMALE: Hi.

FREDERICO: How are you doing?

CANDIOTTI: On Wednesday, this family signed a next of kin notification form in case they didn't make it.

FREDERICO: With the evacuation order, you know, we know it's hard on people. We understand that. It's hard to displace families. But we -- it's done with your best interests in mind, especially the children.

CANDIOTTI: The woman listens politely. But Lieutenant Frederico is convinced if they were ordered to leave again, they wouldn't.

(on camera): Lieutenant, do you think this family learned any lessons?

FREDERICO: No. I don't think they did and I don't think they will evacuate next time. In talking to her just now, they're dead set on staying here.

CANDIOTTI (voice-over): A problem facing disaster planners next time.

UNIDENTIFIED FEMALE: Thank you.

FREDERICO: We're trying to educate people to the dangers of water, the dangers of win, how they don't mix.

CANDIOTTI: Susan Candiotti, CNN, Pass Christian, Mississippi.

(END VIDEO TAPE)

COSTELLO: Let's talk about damage estimates now from hurricanes Ivan, Frances and Charley. They're slowly coming in. Fitch Ratings estimates that losses from hurricane Ivan are expected to hit between $4 billion and $10 billion.

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