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CNN Live At Daybreak
A Gruesome Execution and a New Deadline; Latest on Disputed Memos CBS Used in Report on President Bush
Aired September 21, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
PATTY HENSLEY, WIFE OF AMERICAN HOSTAGE: I am making another attempt at pleading with these captors to please open communications with us again.
(END VIDEO CLIP)
CAROL COSTELLO, CNN ANCHOR: That was a wife pleading for her husband -- a life on the line.
It is Tuesday, September 21.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, a gruesome execution and a new deadline. Iraqi insurgents beheaded American hostage Eugene Armstrong and they're now threatening to kill another hostage in 24 hours unless female Iraqi prisoners are freed.
And Iraq will be a major theme this morning as President Bush goes before the U.N. General Assembly. He's trying to reassure world leaders that the post-war nation is moving toward democracy.
Big stakes for big tobacco -- the Justice Department's $280 billion lawsuit against the tobacco industry goes to trial today. The government accuses cigarette companies of lying to you for 50 years about the dangers of smoking.
At least 500 people are dead in Haiti from tropical storm Jeanne, which flooded the nation last week. But authorities expect to find many more bodies. That's according to U.N. and Haitian officials.
To the forecast center now and Chad.
CHAD MYERS, CNN METEOROLOGIST: And, good morning, Carol.
You can see behind me here the three storms. Still here Jeanne; and then back behind me here, a big storm, Karl; and then this little blob here back out behind Karl? That's, in fact, Lisa. Lisa, in fact, has the best chance of making it to the U.S., although, although I say that with Jeanne making a big loop in the Atlantic Ocean. It may be headed back for North Carolina in about a week or so. That's a long way out there and that storm could die before then.
(WEATHER REPORT)
COSTELLO: We begin this morning with another desperate plea from the wife of American hostage Jack Hensley. Iraqi insurgents kidnapped Hensley in Baghdad last week, along with fellow American Eugene Armstrong and a British man. They killed Armstrong and they're threatening to kill Hensley next.
(BEGIN VIDEO CLIP)
HENSLEY: I'm making another attempt at pleading with this captors to please open communications with us again so that we can perhaps come to some agreement on what it is exactly they want and perhaps how those needs can be met.
(END VIDEO CLIP)
COSTELLO: In the meantime, relatives of British hostage Ken Bigley are appealing to their leaders to intervene to save Bigley's life. His brother says the situation is desperate.
(BEGIN VIDEO CLIP)
PHILIP BIGLEY, BROTHER OF HOSTAGE: This message goes to the prime minister, to the foreign office, to Jack Straw, to all the politicians and it goes to the militants over in Iraq who are holding my brother and the other American hostage. We are begging you not to kill them. We are begging you to find a solution, a compromise that will help to save two lives, innocent lives.
(END VIDEO CLIP)
COSTELLO: Eugene Armstrong was taken hostage along with Bigley and Hensley. His family and friends gathered in his Michigan hometown last night to remember and to pray for the others.
CNN's Walter Rodgers is a veteran of our coverage on Iraq.
He has more from Baghdad on the death of the American from Michigan.
(BEGIN VIDEO TAPE)
WALTER RODGERS, CNN CORRESPONDENT (voice-over): The militant Islamist group calling itself Unification and Jihad released this video showing Eugene Armstrong on his knees, blindfolded, helpless, his hands bound moments before the execution.
Five hooded Muslim militants stand behind him. One reads a statement promising two other hostages will be killed. The killings will resume again in 24 hours, they say, unless their demands are met -- release all Iraqi women prisoners or the next American, Jack Hensley, will be beheaded, followed by the British subject Kenneth Bigley. The hooded man reads a statement saying he is carrying out God's law. Then he saws off Armstrong's head with a knife as the dying man screams in pain.
The three civilians lived in this house in an upscale Baghdad neighborhood until last Thursday when they were kidnapped early in the morning. Their Iraqi overnight guard disappeared, did not come to work, leaving them for the kidnappers.
(on camera): Armstrong's body was later recovered by Iraqi police. That leaves seven other hostages still in the hands of the Iraqi kidnappers, the one remaining American, the one British subject; then there were two Italian aid workers, both women; and there were two French journalists; and, finally, an Iraqi-American businessman.
Walter Rodgers, CNN, Baghdad.
(END VIDEO TAPE)
COSTELLO: The taking of hostages in Iraq, the every day security issues, recent attacks on Iraq's oil production -- all of this comes as President Bush heads to the United Nations five and a half hours from now for his annual speech to the world body. He's expected to defend his decision to invade Iraq, but unlike last year when Iraq and terrorism was a prime focus, the president is expected to talk about other issues, as well. The president's speech to the U.N. General Assembly is scheduled for 10:30 Eastern this morning, 7:30 Pacific. CNN, of course, will bring it to you live.
The latest now on those disputed memos CBS used in a report on President Bush. Kerry campaign adviser Joe Lockhart says he talked with the man who CBS says turned over the memos. The chat happened just days before the story aired. But Lockhart says the Kerry camp had nothing to do with the memos.
All this as CBS tries to recover.
Our Jeanne Meserve brings you up to date.
(BEGIN VIDEO TAPE)
JEANNE MESERVE, CNN CORRESPONDENT (voice-over): On "60 Minutes 180" from CBS, the network says it made a mistake and cannot authenticate documents it had presented as genuine 12 days ago.
The man who CBS says gave it the documents, Bill Burkett, says he did not forge them and he believes they're real. In his first on-air interview with CBS, Burkett argued forcefully that he had misled the network in order to protect his source.
BILL BURKETT: Well, I didn't totally mislead you. I did mislead you on the one individual. You know, your staff pressured me to a point to reveal that source.
(BEGIN VIDEO CLIP FROM "CBS EVENING NEWS," SEPTEMBER 20)
DAN RATHER, CBS NEWS: Well, we were trying to get the chain of possession.
BURKETT: I understand that.
RATHER: And you said you had received them from someone.
BURKETT: I understand that.
RATHER: And we did press you to say, well, you received them from someone and that someone was who?
BURKETT: Yes.
RATHER: And it's true, we pressured you because it was a very important point for us.
BURKETT: Yes, and I simply threw out a name that was basically -- it was, I guess, to get a little pressure off for a moment.
(END VIDEO CLIP)
MESERVE: But CBS failed to nail down the source or the authenticity of the documents, something Burkett says he told the network to do.
RATHER: The failure of CBS News to do just that, to properly fully scrutinize the documents and their source, led to our airing the documents when we should not have done so. It was a mistake. CBS News deeply regrets it. Also, I want to say personally and directly I'm sorry.
MESERVE: Bill Burkett has in the past sued the Texas National Guard over medical benefits and alleged that President Bush's military records were sanitized, a charge that former Bush aides have called hogwash. The White House pounced on the revelation that Burkett, a Democrat, was CBS' source.
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: What contacts did Mr. Burkett have with Democrats? There are reports that he had senior level contacts with members of the Kerry campaign.
MESERVE: Terry McAuliffe, chairman of the Democratic National Committee, says don't point fingers at his party.
TERRY MCAULIFFE, DNC SPOKESMAN: And no Democrats, none at the Democratic National Committee or the John Kerry for President, had anything to do with the preparations of these documents.
MESERVE: But Republicans said McAuliffe left unanswered whether Democrats had anything to do with the dissemination of the documents.
(on camera): When it was first broadcast, Democrats hoped the "60 Minutes" report might hurt the Bush campaign. But some ruefully acknowledge that the only group that's been hurt at this juncture is CBS News.
Jean Meserve, CNN, Washington. (END VIDEO TAPE)
COSTELLO: And that bring us to our e-mail Question of the Morning. Should Dan Rather resign over this memo fallout? What should he do? How can CBS repair the damage -- or can it? Drop us a line at daybreak@cnn.com. That's daybreak@cnn.com.
The latest campaign poll shows President Bush with an edge in the battleground state of Iowa. The CNN/"USA Today"/Gallup poll shows likely voters favor Bush over John Kerry 50 percent to 44 percent. Ralph Nader gets 2 percent. And among registered voters, Bush gets 48 percent support, Kerry 43 percent and Nader 3 percent.
Keep in mind the poll has a margin of error of plus or minus 4 percentage points, so it's pretty darned close.
There's official word this morning about where these two campaigns come head to head in the debates. The first Bush-Kerry debate it September 30 at the University of Miami in Coral Gables, Florida. On October 5, the only vice presidential debate is set for Case Western Reserve in Cleveland. The presidential debates resume October 8 at Washington University in St. Louis. The final debate October 13 at the Arizona State University in Tempe.
In other news across America now, police in Springfield, Illinois are searching for a man accused of gunning down a security guard inside the state capital building. An arrest warrant for murder was issued for 24-year-old Derek Potts. Police say they don't know why Potts walked into the state capital with a shotgun and killed the unarmed guard.
A dramatic rescue of a pregnant woman in Tennessee. Take a look at this. Come on over. Take a look. The woman in the truck was swept away by an overflowing river. She was trapped in that water for 40 minutes before a rescue boat could pull her out. The woman credits a 9/11 operator for saving her life by keeping her calm during the entire ordeal. Wow!
Macaulay Culkin may wish he were still home alone. The 24-year- old actor has been charged with two misdemeanor drug counts. Culkin was arrested in Oklahoma on Friday when police found a half ounce of marijuana and several tablets of the prescription drug Zanax. Culkin is now out on bail. No court date set.
Did tobacco companies conspire to make millions off of people addicted to cigarettes? That's the question at the heart of the government's case against the tobacco industry. Today that trial begins. At stake, the very survival of the tobacco industry.
CNN's Louise Schiavone takes a look.
(BEGIN VIDEO TAPE)
LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): The federal government is seeking $280 billion from the tobacco industry. The sum originally envisioned by Clinton administration lawyers as repayment of ill-gotten gains.
WILLIAM SCHULTZ, FORMER ASSISTANT DEPUTY ATTORNEY GENERAL: We had evidence that the tobacco industry, over a 50-year period, had engaged in really what is a massive fraud that was intended to put doubt in the public mind about the health risks of tobacco.
SCHIAVONE: Among those named in the suit, R.J. Reynolds, Lorillard, Liggett, Brown & Williamson, British American Tobacco and Philip Morris USA parent company Altria.
Having rebuffed a Bush administration effort to settle out of court three years ago, the industry now comes face-to-face with costly federal racketeering charges.
RICHARD DAYNARD, NORTHEASTERN UNIVERSITY LAW SCHOOL: All of this stuff has been demonstrated in individual cases already. So there's really not much chance that the tobacco companies are going to escape an unfavorable verdict. Once they get officially labeled as racketeers, I think that's very bad news for them politically and in future litigation.
SCHIAVONE: Tobacco lawyers argue the industry has been mending its ways for several years now, retreating from previous aggressive advertising and mounting anti-smoking campaigns of its own. They believe the racketeering case won't hold up.
WILLIAM OHLEMEYER, ALTRIA: It's using a law that was designed to deal with organized crime to try to bring about change or regulation in an industry that has changed dramatically and is regulated and could, and perhaps should, be regulated in the future, but not through one lawsuit in one courthouse in one part of the country.
SCHIAVONE: Clinton appointee Judge Gladys Kessler presides over the non-jury trial.
(on camera): So far, Judge Kessler has dismissed government efforts to recover medical costs related to smoking. But she did not dismiss the $280 billion claim reflecting profits from millions of youth-addicted smokers, the issue at the heart of the case.
Louise Schiavone, CNN, Washington.
(END VIDEO TAPE)
COSTELLO: Scott Peterson was the main suspect in his wife's murder right from the start. Find out what the lead detective had to say in court. That comes your way six minutes from now.
Plus, gearing up for the face-off between George Bush and John Kerry. We'll look at the debating skills of both candidates in 25 minutes.
And doing dialysis at home. At 54 minutes past the hour, we'll tell you about a new system that offers incredible freedom to those with kidney failure.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It is 5:16 Eastern time.
Here's what's all new this morning.
Another hostage deadline looms in Iraq after a gruesome murder. Islamic militants behead American Eugene Armstrong. Now they say a second hostage will be killed in 24 hours if the U.S. does not release Iraqi women from prisons.
Syria is redeploying its troops from central and northern Lebanon today. It's unclear if the forces are moving to other locations. They're pulling out of the country. The move comes amid growing international pressure.
In money news, analysts expect interest rates to jump another 1/4 point when the Fed meets later today. It will be the third straight hike this year.
In culture, now you, too, can walk all over Billy Joel. The 55- year-old singer is the latest to get a star on the Hollywood Walk of Fame. Joel wrote his signature song "Piano Man" after working in a Los Angeles piano bar.
In sports, "Monday Night Football's" Donavan McNabb stepped up and took control as the Philadelphia Eagles beat the Minnesota Vikings 27-16. The Eagles' quarterback threw for two scores, two touchdowns, rather, and then ran for another.
Chad -- need I remind you that the Detroit Lions are 2-0.
MYERS: How about them Lions?
COSTELLO: They're at the top of their division.
MYERS: You bet! It'll be Lions and the Falcons.
COSTELLO: Whooo!
MYERS: (UNINTELLIGIBLE) but that's OK. There's always hope and there's always next year, if not.
Hey, good morning, Carol.
Tornado warning this morning for western Palm Beach County in Florida. We want to circle the area of concern right through here. You see that angle of the storm right through here. The tornado indicated by Doppler radar at the Weather Service down there. It could be near Belle Glade by 5:20 and South Bay by 5:30. This entire storm is actually moving to the west at about 20 miles per hour. Let's get you to some other things across the country today. Flying into Florida, would you believe that the rain and even that storm there -- that's the remnant moisture of Ivan. It went across and out to sea, back down the Atlantic Ocean the wrong way, from north to south, and then back into Florida. This stuff just will not leave Florida alone.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Now on to California and the Scott Peterson trial. More testimony expected today from a detective who investigated Laci Peterson's disappearance.
As CNN's Ted Rowlands reports, police had a gut feeling about her husband Scott early on.
(BEGIN VIDEO TAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Modesto Police Detective Craig Grogan testified that Scott Peterson was the focus of his investigation from the beginning. Grogan said Peterson lied to him the day after Laci Peterson was reported missing, saying he was not having an affair.
Grogan said Peterson was an initial suspect because he was the last person to see and speak to his wife, the one who discovered she was missing, but not the one that called police, and because he was alone without a confirmed alibi the day she was reported missing.
As the lead detective, Grogan can testify about the entire case, giving an overview that can be compared to testimony from earlier witnesses.
DEAN JOHNSON, LEGAL ANALYST: And what you saw is, in effect, that the prosecution gets to give, through its investigating officer, a mini-closing argument.
ROWLANDS: Grogan said Peterson told him his wife had gone for a walk wearing jewelry she'd inherited from her grandmother, and that he thought she might have been robbed.
When talking about this concrete residue in Peterson's warehouse, Grogan was able to reinforce the prosecution's theory that Peterson used homemade weights to dispose of his wife's body, saying, "It seemed like a tremendous mess for making one eight-pound anchor."
For the prosecution, Birgit Fladager, who normally plays a supporting role, handled the questioning of Grogan.
(on camera): Late in the day, prosecutors showed a videotape of Detective Grogan confronting Scott Peterson with a photograph of he and Amber Frey. The photograph was a faxed copy of poor quality. On the tape, you can see Peterson look down at the photograph and then after several moments he looked up, and according to Grogan, said, "Is this supposed to be me?" in an apparent effort to continue to hide Frey from authorities.
Detective Grogan is expected to be back on the stand when court resumes.
Ted Rowlands, CNN, Redwood City, California.
(END VIDEO TAPE)
COSTELLO: Still to come on DAYBREAK, a presidential candidate lets loose. Senator John Kerry takes a break from the daily grind to have some fun with David Letterman. Wait until you hear what he had to say about President Bush.
Also, our e-mail Question of the Morning, and, boy, they're coming in fast. Should Dan Rather retire? Should he step down? What should CBS do to make up for airing those phony documents about President Bush's National Guard service? We want to hear from you. The address, daybreak@cnn.com, daybreak@cnn.com.
This is DAYBREAK for Tuesday.
(COMMERCIAL BREAK)
COSTELLO: Chad, you up there?
MYERS: How are you?
COSTELLO: I know you're a little busy this morning, but share in this, oh, I guess fun, this morning.
MYERS: All right. Go for it!
COSTELLO: We find fun wherever we can on DAYBREAK.
Senator John Kerry got to poke a little fun at the drudgery involved in negotiating presidential debates. He was a guest on "The Late Show with David Letterman" and he joked, oh, just about how every detail is ironed out.
Listen.
(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN," COURTESY CBS)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I came here tonight to lower the expectations for these debates, David, so.
DAVID LETTERMAN, HOST: You just settled on three debates? Is that what I understand?
KERRY: We settled on three.
LETTERMAN: Originally, one of the positions was who wanted to stand? You wanted to stand, Bush wanted to sit?
KERRY: I wanted to -- I didn't care, stand or sit. LETTERMAN: Yes.
KERRY: I wanted to have John Edwards stand. Dick Cheney wanted to sit through the whole debate.
LETTERMAN: Oh, I see. Yes.
And they compromised and now they're going to squat, is that what we heard?
KERRY: No. Now what's going to happen -- no. No, we compromised and George Bush is going to sit on Dick Cheney's lap.
LETTERMAN: Well...
(END VIDEO CLIP) COSTELLO: They also did a Top Ten list and I have the Top Ten list in my hot little hands.
MYERS: All right.
COSTELLO: OK. So, my favorites are number seven, this is Kerry's Top Ten Bush tax proposals.
MYERS: OK.
COSTELLO: Number seven, the reduced earned income tax credit is so unfair, it just makes me want to tear out my lustrous, finely groomed hair. That was a pretty good one.
MYERS: Does he have good hair?
COSTELLO: Well, John Kerry has hair that does not move.
MYERS: Oh.
COSTELLO: That was the point.
Number six...
MYERS: You're talking to a guy without hair about hair. You know, anyone who has hair is my hero.
COSTELLO: Did I ask you to join in this? I can't believe I -- OK. Let's go to number six, Chad. Six, Attorney General John Ashcroft gets to write off the entire U.S. constitution.
MYERS: Budda bing.
COSTELLO: Yes.
MYERS: Maybe it was out of context.
COSTELLO: Let's go to number three.
Well, remember, this is Kerry's Top Ten Bush tax proposals. MYERS: All right.
COSTELLO: Number three, Cheney could claim Bush as a dependent.
Number two, a $100 penalty if you pronounce it nuclear instead of nuke-a-lar. Oh, you liked that one, didn't you?
And the number one Top Ten Bush tax proposals, George W. Bush gets a deduction for mortgaging our entire future. That's not -- you know, that's just a low blow.
MYERS: Ooh.
COSTELLO: But that was on "David Letterman" last night, because I know our viewers missed it because they were sleeping.
MYERS: I certainly did.
COSTELLO: I did, too.
Hey, thanks for joining me.
MYERS: All right.
Back in five minutes.
COSTELLO: All right.
Time for our DAYBREAK "Eye Openers."
Star Wars fans can get their hands on the original trilogy on DVD starting today. But beware, creator George Lucas has made some changes to the movie. No, Chubaka hasn't gone blonde. But several subtle changes were made, including a revamped Jabba the Hutt and a new voice for Boba Fett.
This teenager is pretty darned smart. 16-year-old Tracy Chou got a perfect score on her SAT. That's an accomplishment in its own right. But what's even more impressive is that Tracy also got a perfect score on the ACT. It happens only once every other year that someone gets the highest score on both college entrance exams.
Takes a look at this pocket sized pooch. Danka is just over seven inches long and weighs less than two pounds. The Chihuahua took the world record away from eight inch tiny Pinocchio. But Danka is not the shortest dog. That title belongs to a Yorkie named Whitey -- or Whitney. I'm sorry Whitney. Whitney is just three inches tall.
Here's what's all new in the next half hour of DAYBREAK.
Over the next six weeks, you will have three chances to size up the candidates side by side. What can you expect?
And President Bush addresses the U.N. General Assembly today. But will the stormy state of U.S.-U.N. relations take center stage?
These stories and more ahead.
This is DAYBREAK for Tuesday.
(COMMERCIAL BREAK)
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Aired September 21, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
PATTY HENSLEY, WIFE OF AMERICAN HOSTAGE: I am making another attempt at pleading with these captors to please open communications with us again.
(END VIDEO CLIP)
CAROL COSTELLO, CNN ANCHOR: That was a wife pleading for her husband -- a life on the line.
It is Tuesday, September 21.
This is DAYBREAK.
And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, a gruesome execution and a new deadline. Iraqi insurgents beheaded American hostage Eugene Armstrong and they're now threatening to kill another hostage in 24 hours unless female Iraqi prisoners are freed.
And Iraq will be a major theme this morning as President Bush goes before the U.N. General Assembly. He's trying to reassure world leaders that the post-war nation is moving toward democracy.
Big stakes for big tobacco -- the Justice Department's $280 billion lawsuit against the tobacco industry goes to trial today. The government accuses cigarette companies of lying to you for 50 years about the dangers of smoking.
At least 500 people are dead in Haiti from tropical storm Jeanne, which flooded the nation last week. But authorities expect to find many more bodies. That's according to U.N. and Haitian officials.
To the forecast center now and Chad.
CHAD MYERS, CNN METEOROLOGIST: And, good morning, Carol.
You can see behind me here the three storms. Still here Jeanne; and then back behind me here, a big storm, Karl; and then this little blob here back out behind Karl? That's, in fact, Lisa. Lisa, in fact, has the best chance of making it to the U.S., although, although I say that with Jeanne making a big loop in the Atlantic Ocean. It may be headed back for North Carolina in about a week or so. That's a long way out there and that storm could die before then.
(WEATHER REPORT)
COSTELLO: We begin this morning with another desperate plea from the wife of American hostage Jack Hensley. Iraqi insurgents kidnapped Hensley in Baghdad last week, along with fellow American Eugene Armstrong and a British man. They killed Armstrong and they're threatening to kill Hensley next.
(BEGIN VIDEO CLIP)
HENSLEY: I'm making another attempt at pleading with this captors to please open communications with us again so that we can perhaps come to some agreement on what it is exactly they want and perhaps how those needs can be met.
(END VIDEO CLIP)
COSTELLO: In the meantime, relatives of British hostage Ken Bigley are appealing to their leaders to intervene to save Bigley's life. His brother says the situation is desperate.
(BEGIN VIDEO CLIP)
PHILIP BIGLEY, BROTHER OF HOSTAGE: This message goes to the prime minister, to the foreign office, to Jack Straw, to all the politicians and it goes to the militants over in Iraq who are holding my brother and the other American hostage. We are begging you not to kill them. We are begging you to find a solution, a compromise that will help to save two lives, innocent lives.
(END VIDEO CLIP)
COSTELLO: Eugene Armstrong was taken hostage along with Bigley and Hensley. His family and friends gathered in his Michigan hometown last night to remember and to pray for the others.
CNN's Walter Rodgers is a veteran of our coverage on Iraq.
He has more from Baghdad on the death of the American from Michigan.
(BEGIN VIDEO TAPE)
WALTER RODGERS, CNN CORRESPONDENT (voice-over): The militant Islamist group calling itself Unification and Jihad released this video showing Eugene Armstrong on his knees, blindfolded, helpless, his hands bound moments before the execution.
Five hooded Muslim militants stand behind him. One reads a statement promising two other hostages will be killed. The killings will resume again in 24 hours, they say, unless their demands are met -- release all Iraqi women prisoners or the next American, Jack Hensley, will be beheaded, followed by the British subject Kenneth Bigley. The hooded man reads a statement saying he is carrying out God's law. Then he saws off Armstrong's head with a knife as the dying man screams in pain.
The three civilians lived in this house in an upscale Baghdad neighborhood until last Thursday when they were kidnapped early in the morning. Their Iraqi overnight guard disappeared, did not come to work, leaving them for the kidnappers.
(on camera): Armstrong's body was later recovered by Iraqi police. That leaves seven other hostages still in the hands of the Iraqi kidnappers, the one remaining American, the one British subject; then there were two Italian aid workers, both women; and there were two French journalists; and, finally, an Iraqi-American businessman.
Walter Rodgers, CNN, Baghdad.
(END VIDEO TAPE)
COSTELLO: The taking of hostages in Iraq, the every day security issues, recent attacks on Iraq's oil production -- all of this comes as President Bush heads to the United Nations five and a half hours from now for his annual speech to the world body. He's expected to defend his decision to invade Iraq, but unlike last year when Iraq and terrorism was a prime focus, the president is expected to talk about other issues, as well. The president's speech to the U.N. General Assembly is scheduled for 10:30 Eastern this morning, 7:30 Pacific. CNN, of course, will bring it to you live.
The latest now on those disputed memos CBS used in a report on President Bush. Kerry campaign adviser Joe Lockhart says he talked with the man who CBS says turned over the memos. The chat happened just days before the story aired. But Lockhart says the Kerry camp had nothing to do with the memos.
All this as CBS tries to recover.
Our Jeanne Meserve brings you up to date.
(BEGIN VIDEO TAPE)
JEANNE MESERVE, CNN CORRESPONDENT (voice-over): On "60 Minutes 180" from CBS, the network says it made a mistake and cannot authenticate documents it had presented as genuine 12 days ago.
The man who CBS says gave it the documents, Bill Burkett, says he did not forge them and he believes they're real. In his first on-air interview with CBS, Burkett argued forcefully that he had misled the network in order to protect his source.
BILL BURKETT: Well, I didn't totally mislead you. I did mislead you on the one individual. You know, your staff pressured me to a point to reveal that source.
(BEGIN VIDEO CLIP FROM "CBS EVENING NEWS," SEPTEMBER 20)
DAN RATHER, CBS NEWS: Well, we were trying to get the chain of possession.
BURKETT: I understand that.
RATHER: And you said you had received them from someone.
BURKETT: I understand that.
RATHER: And we did press you to say, well, you received them from someone and that someone was who?
BURKETT: Yes.
RATHER: And it's true, we pressured you because it was a very important point for us.
BURKETT: Yes, and I simply threw out a name that was basically -- it was, I guess, to get a little pressure off for a moment.
(END VIDEO CLIP)
MESERVE: But CBS failed to nail down the source or the authenticity of the documents, something Burkett says he told the network to do.
RATHER: The failure of CBS News to do just that, to properly fully scrutinize the documents and their source, led to our airing the documents when we should not have done so. It was a mistake. CBS News deeply regrets it. Also, I want to say personally and directly I'm sorry.
MESERVE: Bill Burkett has in the past sued the Texas National Guard over medical benefits and alleged that President Bush's military records were sanitized, a charge that former Bush aides have called hogwash. The White House pounced on the revelation that Burkett, a Democrat, was CBS' source.
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: What contacts did Mr. Burkett have with Democrats? There are reports that he had senior level contacts with members of the Kerry campaign.
MESERVE: Terry McAuliffe, chairman of the Democratic National Committee, says don't point fingers at his party.
TERRY MCAULIFFE, DNC SPOKESMAN: And no Democrats, none at the Democratic National Committee or the John Kerry for President, had anything to do with the preparations of these documents.
MESERVE: But Republicans said McAuliffe left unanswered whether Democrats had anything to do with the dissemination of the documents.
(on camera): When it was first broadcast, Democrats hoped the "60 Minutes" report might hurt the Bush campaign. But some ruefully acknowledge that the only group that's been hurt at this juncture is CBS News.
Jean Meserve, CNN, Washington. (END VIDEO TAPE)
COSTELLO: And that bring us to our e-mail Question of the Morning. Should Dan Rather resign over this memo fallout? What should he do? How can CBS repair the damage -- or can it? Drop us a line at daybreak@cnn.com. That's daybreak@cnn.com.
The latest campaign poll shows President Bush with an edge in the battleground state of Iowa. The CNN/"USA Today"/Gallup poll shows likely voters favor Bush over John Kerry 50 percent to 44 percent. Ralph Nader gets 2 percent. And among registered voters, Bush gets 48 percent support, Kerry 43 percent and Nader 3 percent.
Keep in mind the poll has a margin of error of plus or minus 4 percentage points, so it's pretty darned close.
There's official word this morning about where these two campaigns come head to head in the debates. The first Bush-Kerry debate it September 30 at the University of Miami in Coral Gables, Florida. On October 5, the only vice presidential debate is set for Case Western Reserve in Cleveland. The presidential debates resume October 8 at Washington University in St. Louis. The final debate October 13 at the Arizona State University in Tempe.
In other news across America now, police in Springfield, Illinois are searching for a man accused of gunning down a security guard inside the state capital building. An arrest warrant for murder was issued for 24-year-old Derek Potts. Police say they don't know why Potts walked into the state capital with a shotgun and killed the unarmed guard.
A dramatic rescue of a pregnant woman in Tennessee. Take a look at this. Come on over. Take a look. The woman in the truck was swept away by an overflowing river. She was trapped in that water for 40 minutes before a rescue boat could pull her out. The woman credits a 9/11 operator for saving her life by keeping her calm during the entire ordeal. Wow!
Macaulay Culkin may wish he were still home alone. The 24-year- old actor has been charged with two misdemeanor drug counts. Culkin was arrested in Oklahoma on Friday when police found a half ounce of marijuana and several tablets of the prescription drug Zanax. Culkin is now out on bail. No court date set.
Did tobacco companies conspire to make millions off of people addicted to cigarettes? That's the question at the heart of the government's case against the tobacco industry. Today that trial begins. At stake, the very survival of the tobacco industry.
CNN's Louise Schiavone takes a look.
(BEGIN VIDEO TAPE)
LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): The federal government is seeking $280 billion from the tobacco industry. The sum originally envisioned by Clinton administration lawyers as repayment of ill-gotten gains.
WILLIAM SCHULTZ, FORMER ASSISTANT DEPUTY ATTORNEY GENERAL: We had evidence that the tobacco industry, over a 50-year period, had engaged in really what is a massive fraud that was intended to put doubt in the public mind about the health risks of tobacco.
SCHIAVONE: Among those named in the suit, R.J. Reynolds, Lorillard, Liggett, Brown & Williamson, British American Tobacco and Philip Morris USA parent company Altria.
Having rebuffed a Bush administration effort to settle out of court three years ago, the industry now comes face-to-face with costly federal racketeering charges.
RICHARD DAYNARD, NORTHEASTERN UNIVERSITY LAW SCHOOL: All of this stuff has been demonstrated in individual cases already. So there's really not much chance that the tobacco companies are going to escape an unfavorable verdict. Once they get officially labeled as racketeers, I think that's very bad news for them politically and in future litigation.
SCHIAVONE: Tobacco lawyers argue the industry has been mending its ways for several years now, retreating from previous aggressive advertising and mounting anti-smoking campaigns of its own. They believe the racketeering case won't hold up.
WILLIAM OHLEMEYER, ALTRIA: It's using a law that was designed to deal with organized crime to try to bring about change or regulation in an industry that has changed dramatically and is regulated and could, and perhaps should, be regulated in the future, but not through one lawsuit in one courthouse in one part of the country.
SCHIAVONE: Clinton appointee Judge Gladys Kessler presides over the non-jury trial.
(on camera): So far, Judge Kessler has dismissed government efforts to recover medical costs related to smoking. But she did not dismiss the $280 billion claim reflecting profits from millions of youth-addicted smokers, the issue at the heart of the case.
Louise Schiavone, CNN, Washington.
(END VIDEO TAPE)
COSTELLO: Scott Peterson was the main suspect in his wife's murder right from the start. Find out what the lead detective had to say in court. That comes your way six minutes from now.
Plus, gearing up for the face-off between George Bush and John Kerry. We'll look at the debating skills of both candidates in 25 minutes.
And doing dialysis at home. At 54 minutes past the hour, we'll tell you about a new system that offers incredible freedom to those with kidney failure.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It is 5:16 Eastern time.
Here's what's all new this morning.
Another hostage deadline looms in Iraq after a gruesome murder. Islamic militants behead American Eugene Armstrong. Now they say a second hostage will be killed in 24 hours if the U.S. does not release Iraqi women from prisons.
Syria is redeploying its troops from central and northern Lebanon today. It's unclear if the forces are moving to other locations. They're pulling out of the country. The move comes amid growing international pressure.
In money news, analysts expect interest rates to jump another 1/4 point when the Fed meets later today. It will be the third straight hike this year.
In culture, now you, too, can walk all over Billy Joel. The 55- year-old singer is the latest to get a star on the Hollywood Walk of Fame. Joel wrote his signature song "Piano Man" after working in a Los Angeles piano bar.
In sports, "Monday Night Football's" Donavan McNabb stepped up and took control as the Philadelphia Eagles beat the Minnesota Vikings 27-16. The Eagles' quarterback threw for two scores, two touchdowns, rather, and then ran for another.
Chad -- need I remind you that the Detroit Lions are 2-0.
MYERS: How about them Lions?
COSTELLO: They're at the top of their division.
MYERS: You bet! It'll be Lions and the Falcons.
COSTELLO: Whooo!
MYERS: (UNINTELLIGIBLE) but that's OK. There's always hope and there's always next year, if not.
Hey, good morning, Carol.
Tornado warning this morning for western Palm Beach County in Florida. We want to circle the area of concern right through here. You see that angle of the storm right through here. The tornado indicated by Doppler radar at the Weather Service down there. It could be near Belle Glade by 5:20 and South Bay by 5:30. This entire storm is actually moving to the west at about 20 miles per hour. Let's get you to some other things across the country today. Flying into Florida, would you believe that the rain and even that storm there -- that's the remnant moisture of Ivan. It went across and out to sea, back down the Atlantic Ocean the wrong way, from north to south, and then back into Florida. This stuff just will not leave Florida alone.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Now on to California and the Scott Peterson trial. More testimony expected today from a detective who investigated Laci Peterson's disappearance.
As CNN's Ted Rowlands reports, police had a gut feeling about her husband Scott early on.
(BEGIN VIDEO TAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Modesto Police Detective Craig Grogan testified that Scott Peterson was the focus of his investigation from the beginning. Grogan said Peterson lied to him the day after Laci Peterson was reported missing, saying he was not having an affair.
Grogan said Peterson was an initial suspect because he was the last person to see and speak to his wife, the one who discovered she was missing, but not the one that called police, and because he was alone without a confirmed alibi the day she was reported missing.
As the lead detective, Grogan can testify about the entire case, giving an overview that can be compared to testimony from earlier witnesses.
DEAN JOHNSON, LEGAL ANALYST: And what you saw is, in effect, that the prosecution gets to give, through its investigating officer, a mini-closing argument.
ROWLANDS: Grogan said Peterson told him his wife had gone for a walk wearing jewelry she'd inherited from her grandmother, and that he thought she might have been robbed.
When talking about this concrete residue in Peterson's warehouse, Grogan was able to reinforce the prosecution's theory that Peterson used homemade weights to dispose of his wife's body, saying, "It seemed like a tremendous mess for making one eight-pound anchor."
For the prosecution, Birgit Fladager, who normally plays a supporting role, handled the questioning of Grogan.
(on camera): Late in the day, prosecutors showed a videotape of Detective Grogan confronting Scott Peterson with a photograph of he and Amber Frey. The photograph was a faxed copy of poor quality. On the tape, you can see Peterson look down at the photograph and then after several moments he looked up, and according to Grogan, said, "Is this supposed to be me?" in an apparent effort to continue to hide Frey from authorities.
Detective Grogan is expected to be back on the stand when court resumes.
Ted Rowlands, CNN, Redwood City, California.
(END VIDEO TAPE)
COSTELLO: Still to come on DAYBREAK, a presidential candidate lets loose. Senator John Kerry takes a break from the daily grind to have some fun with David Letterman. Wait until you hear what he had to say about President Bush.
Also, our e-mail Question of the Morning, and, boy, they're coming in fast. Should Dan Rather retire? Should he step down? What should CBS do to make up for airing those phony documents about President Bush's National Guard service? We want to hear from you. The address, daybreak@cnn.com, daybreak@cnn.com.
This is DAYBREAK for Tuesday.
(COMMERCIAL BREAK)
COSTELLO: Chad, you up there?
MYERS: How are you?
COSTELLO: I know you're a little busy this morning, but share in this, oh, I guess fun, this morning.
MYERS: All right. Go for it!
COSTELLO: We find fun wherever we can on DAYBREAK.
Senator John Kerry got to poke a little fun at the drudgery involved in negotiating presidential debates. He was a guest on "The Late Show with David Letterman" and he joked, oh, just about how every detail is ironed out.
Listen.
(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN," COURTESY CBS)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I came here tonight to lower the expectations for these debates, David, so.
DAVID LETTERMAN, HOST: You just settled on three debates? Is that what I understand?
KERRY: We settled on three.
LETTERMAN: Originally, one of the positions was who wanted to stand? You wanted to stand, Bush wanted to sit?
KERRY: I wanted to -- I didn't care, stand or sit. LETTERMAN: Yes.
KERRY: I wanted to have John Edwards stand. Dick Cheney wanted to sit through the whole debate.
LETTERMAN: Oh, I see. Yes.
And they compromised and now they're going to squat, is that what we heard?
KERRY: No. Now what's going to happen -- no. No, we compromised and George Bush is going to sit on Dick Cheney's lap.
LETTERMAN: Well...
(END VIDEO CLIP) COSTELLO: They also did a Top Ten list and I have the Top Ten list in my hot little hands.
MYERS: All right.
COSTELLO: OK. So, my favorites are number seven, this is Kerry's Top Ten Bush tax proposals.
MYERS: OK.
COSTELLO: Number seven, the reduced earned income tax credit is so unfair, it just makes me want to tear out my lustrous, finely groomed hair. That was a pretty good one.
MYERS: Does he have good hair?
COSTELLO: Well, John Kerry has hair that does not move.
MYERS: Oh.
COSTELLO: That was the point.
Number six...
MYERS: You're talking to a guy without hair about hair. You know, anyone who has hair is my hero.
COSTELLO: Did I ask you to join in this? I can't believe I -- OK. Let's go to number six, Chad. Six, Attorney General John Ashcroft gets to write off the entire U.S. constitution.
MYERS: Budda bing.
COSTELLO: Yes.
MYERS: Maybe it was out of context.
COSTELLO: Let's go to number three.
Well, remember, this is Kerry's Top Ten Bush tax proposals. MYERS: All right.
COSTELLO: Number three, Cheney could claim Bush as a dependent.
Number two, a $100 penalty if you pronounce it nuclear instead of nuke-a-lar. Oh, you liked that one, didn't you?
And the number one Top Ten Bush tax proposals, George W. Bush gets a deduction for mortgaging our entire future. That's not -- you know, that's just a low blow.
MYERS: Ooh.
COSTELLO: But that was on "David Letterman" last night, because I know our viewers missed it because they were sleeping.
MYERS: I certainly did.
COSTELLO: I did, too.
Hey, thanks for joining me.
MYERS: All right.
Back in five minutes.
COSTELLO: All right.
Time for our DAYBREAK "Eye Openers."
Star Wars fans can get their hands on the original trilogy on DVD starting today. But beware, creator George Lucas has made some changes to the movie. No, Chubaka hasn't gone blonde. But several subtle changes were made, including a revamped Jabba the Hutt and a new voice for Boba Fett.
This teenager is pretty darned smart. 16-year-old Tracy Chou got a perfect score on her SAT. That's an accomplishment in its own right. But what's even more impressive is that Tracy also got a perfect score on the ACT. It happens only once every other year that someone gets the highest score on both college entrance exams.
Takes a look at this pocket sized pooch. Danka is just over seven inches long and weighs less than two pounds. The Chihuahua took the world record away from eight inch tiny Pinocchio. But Danka is not the shortest dog. That title belongs to a Yorkie named Whitey -- or Whitney. I'm sorry Whitney. Whitney is just three inches tall.
Here's what's all new in the next half hour of DAYBREAK.
Over the next six weeks, you will have three chances to size up the candidates side by side. What can you expect?
And President Bush addresses the U.N. General Assembly today. But will the stormy state of U.S.-U.N. relations take center stage?
These stories and more ahead.
This is DAYBREAK for Tuesday.
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