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CNN Live At Daybreak

Latest Developments in the Presidential Campaign; Latest on Abducted CNN Producer Riad Ali

Aired September 28, 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: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news -- early today, U.S. planes hit suspected terrorist targets in the Iraqi city of Fallujah. Local police say at least three people were killed and nine wounded. The U.S. military says the suspected terrorists its targeting are connection to Abu Musab al-Zarqawi. The U.S. believes Zarqawi is behind kidnappings and beheadings.

Moscow police believe they know who killed the editor of "Forbes Russia" in July. Russia's Interfax News Agency reports police detained two Chechens they believe killed him outside his Moscow office.

School safety on the agenda in Washington this morning. A House committee looks into the idea of giving the Department of Education authority to collect and share information on teachers with criminal records.

The remnants of hurricane Jeanne have washed out dozens of roads in south Georgia. The storm also knocked out power to 76,000 residents. This is Valdosta, which got more than five inches of rain on Monday.

To the forecast center now and Rob, who's in for Chad today -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

Chad making his way back, and he'll be back here tomorrow, after chasing yet another hurricane across Florida.

But rainfall tallies over the last 24 -- actually, these are over the last 36 hours -- or 42, I should say: 6.89 in Ocala; Valdosta, Georgia, 5.38; and Atlanta getting a fair shake, as well, with over three inches, most of it coming last night; Jacksonville, 4.14; and you had a couple of hours before that in, I'm sure, parts of Orlando and Jacksonville reporting more rain.

But it should be drier today across Orlando and Miami.

(WEATHER REPORT)

COSTELLO: Debate practice and campaigning -- it's been a mix of both for Bush and Kerry ahead of Thursday's first presidential debate.

Joining us live from Washington with the latest from both campaigns, CNN's Skip Loescher -- good morning, Skip.

SKIP LOESCHER, CNN CORRESPONDENT: Good morning to you, Carol.

President Bush heading in for the first debate, this first face to face debate with his opponent, Senator John Kerry. The president in pretty good shape, according to the White House. Poll ratings showing his job approval level at 54 percent. That's the highest since last January.

(BEGIN VIDEOTAPE)

LOESCHER (voice-over): While Thursday's debate, the first of three, is important to both men, it is even more crucial to Senator John Kerry. According to the latest CNN/"USA Today"/Gallup poll of likely voters, the president has an 8 point lead over his Democratic opponent. Mr. Bush claims Kerry keeps flip-flopping positions on the war on terror and Iraq.

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: He said it was the right decision to go into Iraq. Now he calls it the wrong war. He probably could spend 90 minutes debating himself.

LOESCHER: Kerry, on the other hand, accuses the president of hiding the real situation in Iraq from the American people. But what about changing horses in midstream?

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: When your horse is drowning, it's a good time to change horses in midstream, folks.

LOESCHER: Kerry needs to convince Americans that he'd make a better commander-in-chief. And he's gotten some help from the other Massachusetts senator.

SEN. TED KENNEDY (D), MASSACHUSETTS: The president's handling of the war has been a toxic mix of ignorance, arrogance and stubborn ideology.

LOESCHER: Thursday's debate will concentrate on national security issues and both men will spend most of the next few days preparing for it.

(END VIDEOTAPE)

LOESCHER: But the latest CNN poll shows that only 18 percent of registered voters say the outcome of the debate will have much of an affect on who they vote for.

We're live in Washington.

I'm Skip Loescher.

Carol -- back to you.

COSTELLO: Thank you, Skip.

At the half hour, libertarian radio talk show host Neal Boortz and liberal radio talker Nancy Skinner duke it out in our "Today's Talkers" segment. We'll ask them about the Iraq war and its impact on the presidential race, plus they'll have a lot to say about Thursday's upcoming debate.

In other news across America now, 15 Florida counties may not be ready for the November presidential election and it has nothing to do with the hurricanes. A federal appeals court reinstated a lawsuit over some touch screen voting machines. The lawsuit contends that all voters should receive paper records of their votes. Fifteen counties have machines that do not provide paper proof.

Four bodies have been located in the wreckage of a tour helicopter in Hawaii. One person is still missing, but it presumed to have died in the crash on the island of Kauai. The helicopter crashed into the side of a cliff on Friday. But bad weather delayed the recovery effort.

The FBI is falling behind in its anti-terrorism work. That's the finding of a new Justice Department audit. The report says the FBI has a large backlog of untranslated materials from al Qaeda investigations. Nearly 500,000 hours of audiotapes still haven't been reviewed.

Turning our attention overseas now, still no word this morning on who's behind the kidnapping of a CNN producer. Gunmen seized Riad Ali in the Gaza Strip yesterday. No one has claimed responsibility.

CNN's Ben Wedeman was with Ali when it happened.

He joins us now live from Gaza City.

Any update? BEN WEDEMAN, CNN CORRESPONDENT: No, Carol, no update. No word. No claim of responsibility. No demands for ransom, nothing of the sort. We have heard, however, all of the Palestinian militias or armed groups here in Gaza denying any responsibility and calling for Riad's release.

Here I have two statements. One is from Islamic Jihad, the other from the Al Aqsa Martyrs Brigades. Both of them condemning the kidnapping of Riad and calling for his immediate release. This has been very embarrassing for many people here in Gaza, including the Palestinian Authority. Journalists have, for many years, been able to operate here in Gaza despite the difficulties created by the intifada, the Palestinian uprising in September 2000.

And there have been, in the past, I should point out, Carol, there have been in the past some incidents where journalists were taken into custody by Palestinian groups but they weren't mistreated and they weren't held for very long. They came under intense pressure from many different quarters here in Gaza and were released.

But in this case with Riad, we're still, we're now almost 18 hours after the fact and not a word from the people who were behind his abduction -- Carol.

COSTELLO: Ben, for our viewers who don't know, how did this happen?

WEDEMAN: Well, it was about 6:35 p.m. yesterday. We were leaving the CNN offices here in Gaza and going to our hotel. We had just arrived a few hours from Jerusalem. As we were pulling around the corner, going up a fairly large street here, a car, a white Peugeot pulled out in front of us.

A man stepped out of the back, walked up to the car, walked up to the window I was sitting by, stuck a gun in the window and he said in Arabic, he said, "Which one of you is Riad?"

And of course, I was completely dumbstruck, but Riad spoke up. He said, "I'm Riad."

And he said, "Get out of the car!"

Meanwhile, other people were getting out of this Peugeot that had pulled out in front of us. They were carrying AK-47 assault rifles, looking very confident. They were not masked or anything of the sort. They made Riad get into the back seat of the Peugeot and drove away. The entire incident couldn't have lasted more than 40 seconds. It was so quick. They were so confident. They were clearly professionals at what they were doing.

So it raises some question who's behind it because we've had these incidents in the past where freelance, sort of local organizations have done this. And normally they're fairly sloppy jobs. These men knew exactly what they were doing. They weren't worried about the fact that they were doing this in broad daylight on a street where there were other people, other cars driving by. So lots of question marks, Carol, but I'm afraid no answers at the moment.

COSTELLO: Well, again, I ask you how your -- I mean any added precautions that you guys are taking or journalists as a whole in that area of the world?

WEDEMAN: Well, every situation is different. Here in Gaza, for years I've been coming, I didn't have security. I didn't have extra protection. Obviously now it's going to be a little different. We have -- outside our office, we do have armed Palestinian security guards from the local security services. I've been in regular contact with Palestinian intelligence here, who in addition to wanting to know my version of events, they're also just trying to keep up updated. But until now we have nothing.

But I don't feel particularly threatened or insecure here at the moment. Obviously, I'm not going to be wandering around the streets of Gaza. But we're watching. We're keeping an eye out -- Carol.

COSTELLO: You stay safe.

Ben Wedeman reporting live for us. And our prayers go out for Riad's safe return.

Thanks, Ben.

Still to come on DAYBREAK, black gold, Texas tea, no matter how you describe it, the cost of oil is at record prices and you're paying for it at the pump. But for how long? At 12 minutes past the hour, we'll get a report from our business desk.

Also, Scott Peterson's defense turns now on the notion that he was, indeed, a downright cad. But does that also make him a killer? That's coming your way at 20 minutes past.

And law and order in the nation's capital. Did a Metro police officer go too far in detaining a pregnant 23-year-old woman who was talking too loudly on her cell phone? We'll hash that out with Judlyne Lilly of WTOP, who joins us at 45 minutes past.

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Time for a little business buzz now.

Hurricane Ivan disrupted oil production in the United States and guess what? You're going to pay for it.

Carrie Lee has more on this story.

She's live at the Nasdaq market site.

A lot of other things are affecting oil prices, too, aren't they?

CARRIE LEE, CNN CORRESPONDENT: They are, Carol. The latest worry is Nigeria, which, believe it or not, is the fifth largest OPEC producer for oil. Oil prices reached a $50 mark a barrel last night. Nigeria emerging as the latest focus for worries about supply in an already tight worldwide energy market.

Nigeria worries compounding worries about supply security in Russia, Saudi Arabia and Iraq. The bottom line here, U.S. light crude November contracts rose $0.36 a barrel in the after hours electronic market last night, to reach $50 a barrel, the loftiest level in the 21 years of trading on the New York Mercantile Exchange.

The contract then settled in at $49.64, its highest ever settlement.

Now, kind of interesting that futures are looking a bit bullish this morning. So we could see stocks open higher. Oil, of course, has been a drag on stocks lately. We do have some positive news out of Dell. I also want to tell you about Starbucks, Carol. On average, raising prices by $0.11 per cup of coffee. So Starbucks is a stock to watch today.

COSTELLO: Really?

LEE: I think this is their fourth -- no, their fifth price increase in 10 years. So we'll see if people still go and pay, what, now, $4.95 for a cup?

COSTELLO: Yes, I know I do for my latte.

LEE: OK.

COSTELLO: Thank you.

LEE: You're one of the devotees then.

COSTELLO: I am.

I'm sorry to say I am, although I love the coffee.

Carrie Lee live from the NASDAQ market site.

Thank you.

Your news, money, weather and sports.

It's 6:14 Eastern.

Here's what's all new this morning.

China is sending police officers to Haiti to help control the chaos following hurricane Jeanne. It's China's first ever deployment to the Western hemisphere. Jeanne caused more than 1,000 deaths and riots have broken out at many aid distribution centers.

In money news, you can get an updated picture of Ulysses S. Grant starting today. The picture of the 18th president is on the new $50 bill. It will be similar to the new pastel colored $20 bills. The redesign, of course, is to make it more difficult to counterfeit. A new $100 bill comes out next year.

In culture, a series of letters written by President Ronald Reagan are up for sale. The 41 letters were written to former actor turned Senator George Murphy between the late 1970s to the early 1990s. The letters reveal a harder edge to the former president, who's critical of Ted Kennedy, Walter Mondale and Jimmy Carter.

In sports, the Dallas Cowboys pulled out all the stops in their Monday night win over the Washington Redskins. Oh, with a 21-18 win, the Cowboys have now beaten the Redskins in 13 of their last 14 meetings. Poor Joe Gibbs, Rob.

MARCIANO: Hey, it was a good one to watch. I know you and I didn't see it, because we were sleeping.

Hey, here is the radar out of North Carolina. And there's a tornado warning out now for areas Kingston and Lenoir County in eastern North Carolina. So just be aware of that. And then we'll see, continue to see areas like this develop throughout the afternoon as remnants of Jeanne continues to move up toward the north and run into that cool front. Rain expected across the northern I-95 corridor to the west, though.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Still to come on DAYBREAK, could the testimony of a Modesto police detective actually be a plus for Scott Peterson's defense? New details from the double murder trial. Kendall Coffey will join us for some "Coffey Talk" next.

(COMMERCIAL BREAK)

COSTELLO: Time now for our DAYBREAK Legal Briefs.

Legendary music producer Phil Spector has now been indicted in the shooting death of actress Lana Clarkson. Clarkson died at Spector's Los Angeles area mansion last year. Spector, who is free on $1 million bond, says Clarkson killed herself. He has also not been shy to voice his displeasure with prosecutors.

Listen.

(BEGIN VIDEO CLIP)

PHIL SPECTOR, INDICTED FOR MURDER: The actions of the Hitler- like district attorney and his storm trooping henchmen to seek an indictment against me and censor all means of me getting my evidence and the truth out are reprehensible, unconscionable and despicable.

(END VIDEO CLIP)

COSTELLO: An important ruling is expected to come as early as today in the Michael Jackson case. The judge will rule on the inclusion of evidence gained from a series of searches. That includes materials taken from the Neverland Ranch. Jackson faces numerous charges, including child molestation.

And the testimony turned to trysts in the Scott Peterson trial. The lead detective was questioned about several adulterous affairs Peterson had, including that one with Amber Frey. The defense contends that since he had strayed so many times, the Amber Frey affair would not constitute motive for murder.

Let's turn now to our legal expert, Kendall Coffey, for some "Coffey Talk" about this case -- good morning, Kendall.

KENDALL COFFEY, CNN LEGAL ANALYST: Hey, good morning, Carol.

COSTELLO: OK, it's kind of a sickening strategy, but the serial adulterer defense, will it work?

COFFEY: Well, it's sort of like everything else in the case. It may seem odd, but it's an explanation of sorts. And the fact that they're minimizing the importance of Amber Frey, which the prosecutions are so heavily invested in as a theory for what is a truly horrible crime, if he's a serial skirt chaser, then, sure, that certainly detracts from the theory of an obsession with Amber Frey.

COSTELLO: This detective that's now on the stand, he also testified that a relative of Scott Peterson told him that Peterson had told her that Laci knew about the affair with Frey, and according to the police report, she was very angry about that.

Will that make a difference?

COFFEY: Well, it's certainly helpful for the defense. He -- this guy Grogan was supposed to be the cleanup hitter. Instead, a lot of the prosecution's better points are getting cleaned up and eliminated by the defense. And it's happened time and time again, Carol. The prosecution puts somebody on in direct, they make a few points, they turn into a defense witness during the cross-examination by the Scott Peterson defense team.

COSTELLO: Unbelievable.

This detective also said that early on they received this call from a woman named Michelle who looked very similar to Laci. She was also pregnant. She was a lawyer and she had threats against her.

COFFEY: Perfect for the defense, because it's helping them posit the one thing that they haven't developed yet, and that is an alternative scenario for how and why Laci Peterson was killed.

Let's look at some of the other things Grogan's done.

The prosecution's invested in the theory that Laci couldn't walk her dog. Well, Laci's own mother confirmed that she was walking the dog.

The mysterious disappearing cement. Whatever happened to it? Now Grogan is basically acknowledging that there's evidence that it went into fence posts in the yard.

So there seems to be an explanation for almost everything. It's got to be clear at this point that the prosecution is really struggling.

COSTELLO: So, does the defense have to put on any witnesses at all of its own?

COFFEY: I think they're going to focus on one thing, and that's showing that Laci Peterson was still alive on December 24. Because if she was, and if she was seen walking her dog, or if the time of death forensic experts can show that she wasn't, that she was, in fact, alive after December 24, then clearly Scott Peterson is innocent.

I think they're going to put on that kind of evidence. Beyond that, I think the defense considers itself ahead in this case and doesn't really need to take a lot of chances when it becomes its turn to present its own witnesses and its own evidence in the defense case.

COSTELLO: Kendall Coffey live in Miami.

Thank you, Kendall.

COFFEY: Hey, thanks.

COSTELLO: Parents of a Florida woman at the center of a right to die case say they will keep fighting to keep their brain damaged daughter alive. Terri Schiavo has relied on a feeding tube to live for the past 14 years. A state supreme court ruling last week could pave the way for that tube to be disconnected.

On CNN's "LARRY KING LIVE," Schiavo's parents talked about their ordeal.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

MARY SCHINDLER, TERRI SCHIAVO'S MOTHER: You've never seen like it, Larry, in your life, as a mother watching your child starve to death.

ROBERT SCHINDLER, TERRI SCHIAVO'S FATHER: And we went through that two times.

M. SCHINDLER: Two times.

LARRY KING, HOST: When they stopped food?

(CROSSTALK)

KING: How long? How many days?

M. SCHINDLER: The first time was 60 days.

KING: Sixty...

R. SCHINDLER: No, no, no.

M. SCHINDLER: Sixty -- I'm sorry, 60 hours.

R. SCHINDLER: Sixty hours.

M. SCHINDLER: The second time was seven days.

R. SCHINDLER: And the...

M. SCHINDLER: And she is a strong girl.

KING: Did she nearly die, seven days?

M. SCHINDLER: Well, yes. She was close to it.

R. SCHINDLER: Yes. But they wouldn't let us in the room by ourselves with her. There were police outside of her room, there were police in her room. M. SCHINDLER: There was Michael's representatives in her room. I didn't have one second alone with her while she was dying.

(END VIDEO CLIP)

COSTELLO: The Schindlers are trying to win guardianship of Terri from her husband. They'll attend a hearing on that issue on Thursday.

Still much more ahead here on DAYBREAK. The candidates have issues with each other and the country. But is either talking about what people really care about?

Also, controversy on the Metro. Did police go too far in trying to silence one pregnant woman's cell phone call? We have all the details when DAYBREAK returns.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you.

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

Now in the news, word in this morning of an ambush on a British military convoy in Iraq. The British Ministry of Defense says two British soldiers were killed on the southwestern outskirts of Basra.

The U.S. held him for three years as an enemy combatant. Today, Yasser Hamdi could fly back to his native Saudi Arabia. Under a deal with the U.S., Hamdi has to give up his U.S. citizenship, but he gets to keep his Saudi citizenship.

Fans still fighting over Barry Bond's 700th home run ball. The San Francisco Giants fan who caught it is being sued by another fan, who says the ball was stolen from him during a mad scramble in the stands.

To the forecast center now and Rob.

MARCIANO: That's a shame. It's all about money, isn't it?

He's going to auction it off. Or was he going to give it back to Barry?

COSTELLO: Oh, right.

MARCIANO: Hey, good news out of Florida. It's a little bit more quiet today. There'll be a chance for a shower or storm, but temperatures generally right around 90.

Here's where Jeanne's going, western parts of the mid-Atlantic up through Virginia and upstate New York, as well. Flooding rains potentially there.

(WEATHER REPORT)

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


Aired September 28, 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: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news -- early today, U.S. planes hit suspected terrorist targets in the Iraqi city of Fallujah. Local police say at least three people were killed and nine wounded. The U.S. military says the suspected terrorists its targeting are connection to Abu Musab al-Zarqawi. The U.S. believes Zarqawi is behind kidnappings and beheadings.

Moscow police believe they know who killed the editor of "Forbes Russia" in July. Russia's Interfax News Agency reports police detained two Chechens they believe killed him outside his Moscow office.

School safety on the agenda in Washington this morning. A House committee looks into the idea of giving the Department of Education authority to collect and share information on teachers with criminal records.

The remnants of hurricane Jeanne have washed out dozens of roads in south Georgia. The storm also knocked out power to 76,000 residents. This is Valdosta, which got more than five inches of rain on Monday.

To the forecast center now and Rob, who's in for Chad today -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

Chad making his way back, and he'll be back here tomorrow, after chasing yet another hurricane across Florida.

But rainfall tallies over the last 24 -- actually, these are over the last 36 hours -- or 42, I should say: 6.89 in Ocala; Valdosta, Georgia, 5.38; and Atlanta getting a fair shake, as well, with over three inches, most of it coming last night; Jacksonville, 4.14; and you had a couple of hours before that in, I'm sure, parts of Orlando and Jacksonville reporting more rain.

But it should be drier today across Orlando and Miami.

(WEATHER REPORT)

COSTELLO: Debate practice and campaigning -- it's been a mix of both for Bush and Kerry ahead of Thursday's first presidential debate.

Joining us live from Washington with the latest from both campaigns, CNN's Skip Loescher -- good morning, Skip.

SKIP LOESCHER, CNN CORRESPONDENT: Good morning to you, Carol.

President Bush heading in for the first debate, this first face to face debate with his opponent, Senator John Kerry. The president in pretty good shape, according to the White House. Poll ratings showing his job approval level at 54 percent. That's the highest since last January.

(BEGIN VIDEOTAPE)

LOESCHER (voice-over): While Thursday's debate, the first of three, is important to both men, it is even more crucial to Senator John Kerry. According to the latest CNN/"USA Today"/Gallup poll of likely voters, the president has an 8 point lead over his Democratic opponent. Mr. Bush claims Kerry keeps flip-flopping positions on the war on terror and Iraq.

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: He said it was the right decision to go into Iraq. Now he calls it the wrong war. He probably could spend 90 minutes debating himself.

LOESCHER: Kerry, on the other hand, accuses the president of hiding the real situation in Iraq from the American people. But what about changing horses in midstream?

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: When your horse is drowning, it's a good time to change horses in midstream, folks.

LOESCHER: Kerry needs to convince Americans that he'd make a better commander-in-chief. And he's gotten some help from the other Massachusetts senator.

SEN. TED KENNEDY (D), MASSACHUSETTS: The president's handling of the war has been a toxic mix of ignorance, arrogance and stubborn ideology.

LOESCHER: Thursday's debate will concentrate on national security issues and both men will spend most of the next few days preparing for it.

(END VIDEOTAPE)

LOESCHER: But the latest CNN poll shows that only 18 percent of registered voters say the outcome of the debate will have much of an affect on who they vote for.

We're live in Washington.

I'm Skip Loescher.

Carol -- back to you.

COSTELLO: Thank you, Skip.

At the half hour, libertarian radio talk show host Neal Boortz and liberal radio talker Nancy Skinner duke it out in our "Today's Talkers" segment. We'll ask them about the Iraq war and its impact on the presidential race, plus they'll have a lot to say about Thursday's upcoming debate.

In other news across America now, 15 Florida counties may not be ready for the November presidential election and it has nothing to do with the hurricanes. A federal appeals court reinstated a lawsuit over some touch screen voting machines. The lawsuit contends that all voters should receive paper records of their votes. Fifteen counties have machines that do not provide paper proof.

Four bodies have been located in the wreckage of a tour helicopter in Hawaii. One person is still missing, but it presumed to have died in the crash on the island of Kauai. The helicopter crashed into the side of a cliff on Friday. But bad weather delayed the recovery effort.

The FBI is falling behind in its anti-terrorism work. That's the finding of a new Justice Department audit. The report says the FBI has a large backlog of untranslated materials from al Qaeda investigations. Nearly 500,000 hours of audiotapes still haven't been reviewed.

Turning our attention overseas now, still no word this morning on who's behind the kidnapping of a CNN producer. Gunmen seized Riad Ali in the Gaza Strip yesterday. No one has claimed responsibility.

CNN's Ben Wedeman was with Ali when it happened.

He joins us now live from Gaza City.

Any update? BEN WEDEMAN, CNN CORRESPONDENT: No, Carol, no update. No word. No claim of responsibility. No demands for ransom, nothing of the sort. We have heard, however, all of the Palestinian militias or armed groups here in Gaza denying any responsibility and calling for Riad's release.

Here I have two statements. One is from Islamic Jihad, the other from the Al Aqsa Martyrs Brigades. Both of them condemning the kidnapping of Riad and calling for his immediate release. This has been very embarrassing for many people here in Gaza, including the Palestinian Authority. Journalists have, for many years, been able to operate here in Gaza despite the difficulties created by the intifada, the Palestinian uprising in September 2000.

And there have been, in the past, I should point out, Carol, there have been in the past some incidents where journalists were taken into custody by Palestinian groups but they weren't mistreated and they weren't held for very long. They came under intense pressure from many different quarters here in Gaza and were released.

But in this case with Riad, we're still, we're now almost 18 hours after the fact and not a word from the people who were behind his abduction -- Carol.

COSTELLO: Ben, for our viewers who don't know, how did this happen?

WEDEMAN: Well, it was about 6:35 p.m. yesterday. We were leaving the CNN offices here in Gaza and going to our hotel. We had just arrived a few hours from Jerusalem. As we were pulling around the corner, going up a fairly large street here, a car, a white Peugeot pulled out in front of us.

A man stepped out of the back, walked up to the car, walked up to the window I was sitting by, stuck a gun in the window and he said in Arabic, he said, "Which one of you is Riad?"

And of course, I was completely dumbstruck, but Riad spoke up. He said, "I'm Riad."

And he said, "Get out of the car!"

Meanwhile, other people were getting out of this Peugeot that had pulled out in front of us. They were carrying AK-47 assault rifles, looking very confident. They were not masked or anything of the sort. They made Riad get into the back seat of the Peugeot and drove away. The entire incident couldn't have lasted more than 40 seconds. It was so quick. They were so confident. They were clearly professionals at what they were doing.

So it raises some question who's behind it because we've had these incidents in the past where freelance, sort of local organizations have done this. And normally they're fairly sloppy jobs. These men knew exactly what they were doing. They weren't worried about the fact that they were doing this in broad daylight on a street where there were other people, other cars driving by. So lots of question marks, Carol, but I'm afraid no answers at the moment.

COSTELLO: Well, again, I ask you how your -- I mean any added precautions that you guys are taking or journalists as a whole in that area of the world?

WEDEMAN: Well, every situation is different. Here in Gaza, for years I've been coming, I didn't have security. I didn't have extra protection. Obviously now it's going to be a little different. We have -- outside our office, we do have armed Palestinian security guards from the local security services. I've been in regular contact with Palestinian intelligence here, who in addition to wanting to know my version of events, they're also just trying to keep up updated. But until now we have nothing.

But I don't feel particularly threatened or insecure here at the moment. Obviously, I'm not going to be wandering around the streets of Gaza. But we're watching. We're keeping an eye out -- Carol.

COSTELLO: You stay safe.

Ben Wedeman reporting live for us. And our prayers go out for Riad's safe return.

Thanks, Ben.

Still to come on DAYBREAK, black gold, Texas tea, no matter how you describe it, the cost of oil is at record prices and you're paying for it at the pump. But for how long? At 12 minutes past the hour, we'll get a report from our business desk.

Also, Scott Peterson's defense turns now on the notion that he was, indeed, a downright cad. But does that also make him a killer? That's coming your way at 20 minutes past.

And law and order in the nation's capital. Did a Metro police officer go too far in detaining a pregnant 23-year-old woman who was talking too loudly on her cell phone? We'll hash that out with Judlyne Lilly of WTOP, who joins us at 45 minutes past.

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Time for a little business buzz now.

Hurricane Ivan disrupted oil production in the United States and guess what? You're going to pay for it.

Carrie Lee has more on this story.

She's live at the Nasdaq market site.

A lot of other things are affecting oil prices, too, aren't they?

CARRIE LEE, CNN CORRESPONDENT: They are, Carol. The latest worry is Nigeria, which, believe it or not, is the fifth largest OPEC producer for oil. Oil prices reached a $50 mark a barrel last night. Nigeria emerging as the latest focus for worries about supply in an already tight worldwide energy market.

Nigeria worries compounding worries about supply security in Russia, Saudi Arabia and Iraq. The bottom line here, U.S. light crude November contracts rose $0.36 a barrel in the after hours electronic market last night, to reach $50 a barrel, the loftiest level in the 21 years of trading on the New York Mercantile Exchange.

The contract then settled in at $49.64, its highest ever settlement.

Now, kind of interesting that futures are looking a bit bullish this morning. So we could see stocks open higher. Oil, of course, has been a drag on stocks lately. We do have some positive news out of Dell. I also want to tell you about Starbucks, Carol. On average, raising prices by $0.11 per cup of coffee. So Starbucks is a stock to watch today.

COSTELLO: Really?

LEE: I think this is their fourth -- no, their fifth price increase in 10 years. So we'll see if people still go and pay, what, now, $4.95 for a cup?

COSTELLO: Yes, I know I do for my latte.

LEE: OK.

COSTELLO: Thank you.

LEE: You're one of the devotees then.

COSTELLO: I am.

I'm sorry to say I am, although I love the coffee.

Carrie Lee live from the NASDAQ market site.

Thank you.

Your news, money, weather and sports.

It's 6:14 Eastern.

Here's what's all new this morning.

China is sending police officers to Haiti to help control the chaos following hurricane Jeanne. It's China's first ever deployment to the Western hemisphere. Jeanne caused more than 1,000 deaths and riots have broken out at many aid distribution centers.

In money news, you can get an updated picture of Ulysses S. Grant starting today. The picture of the 18th president is on the new $50 bill. It will be similar to the new pastel colored $20 bills. The redesign, of course, is to make it more difficult to counterfeit. A new $100 bill comes out next year.

In culture, a series of letters written by President Ronald Reagan are up for sale. The 41 letters were written to former actor turned Senator George Murphy between the late 1970s to the early 1990s. The letters reveal a harder edge to the former president, who's critical of Ted Kennedy, Walter Mondale and Jimmy Carter.

In sports, the Dallas Cowboys pulled out all the stops in their Monday night win over the Washington Redskins. Oh, with a 21-18 win, the Cowboys have now beaten the Redskins in 13 of their last 14 meetings. Poor Joe Gibbs, Rob.

MARCIANO: Hey, it was a good one to watch. I know you and I didn't see it, because we were sleeping.

Hey, here is the radar out of North Carolina. And there's a tornado warning out now for areas Kingston and Lenoir County in eastern North Carolina. So just be aware of that. And then we'll see, continue to see areas like this develop throughout the afternoon as remnants of Jeanne continues to move up toward the north and run into that cool front. Rain expected across the northern I-95 corridor to the west, though.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Still to come on DAYBREAK, could the testimony of a Modesto police detective actually be a plus for Scott Peterson's defense? New details from the double murder trial. Kendall Coffey will join us for some "Coffey Talk" next.

(COMMERCIAL BREAK)

COSTELLO: Time now for our DAYBREAK Legal Briefs.

Legendary music producer Phil Spector has now been indicted in the shooting death of actress Lana Clarkson. Clarkson died at Spector's Los Angeles area mansion last year. Spector, who is free on $1 million bond, says Clarkson killed herself. He has also not been shy to voice his displeasure with prosecutors.

Listen.

(BEGIN VIDEO CLIP)

PHIL SPECTOR, INDICTED FOR MURDER: The actions of the Hitler- like district attorney and his storm trooping henchmen to seek an indictment against me and censor all means of me getting my evidence and the truth out are reprehensible, unconscionable and despicable.

(END VIDEO CLIP)

COSTELLO: An important ruling is expected to come as early as today in the Michael Jackson case. The judge will rule on the inclusion of evidence gained from a series of searches. That includes materials taken from the Neverland Ranch. Jackson faces numerous charges, including child molestation.

And the testimony turned to trysts in the Scott Peterson trial. The lead detective was questioned about several adulterous affairs Peterson had, including that one with Amber Frey. The defense contends that since he had strayed so many times, the Amber Frey affair would not constitute motive for murder.

Let's turn now to our legal expert, Kendall Coffey, for some "Coffey Talk" about this case -- good morning, Kendall.

KENDALL COFFEY, CNN LEGAL ANALYST: Hey, good morning, Carol.

COSTELLO: OK, it's kind of a sickening strategy, but the serial adulterer defense, will it work?

COFFEY: Well, it's sort of like everything else in the case. It may seem odd, but it's an explanation of sorts. And the fact that they're minimizing the importance of Amber Frey, which the prosecutions are so heavily invested in as a theory for what is a truly horrible crime, if he's a serial skirt chaser, then, sure, that certainly detracts from the theory of an obsession with Amber Frey.

COSTELLO: This detective that's now on the stand, he also testified that a relative of Scott Peterson told him that Peterson had told her that Laci knew about the affair with Frey, and according to the police report, she was very angry about that.

Will that make a difference?

COFFEY: Well, it's certainly helpful for the defense. He -- this guy Grogan was supposed to be the cleanup hitter. Instead, a lot of the prosecution's better points are getting cleaned up and eliminated by the defense. And it's happened time and time again, Carol. The prosecution puts somebody on in direct, they make a few points, they turn into a defense witness during the cross-examination by the Scott Peterson defense team.

COSTELLO: Unbelievable.

This detective also said that early on they received this call from a woman named Michelle who looked very similar to Laci. She was also pregnant. She was a lawyer and she had threats against her.

COFFEY: Perfect for the defense, because it's helping them posit the one thing that they haven't developed yet, and that is an alternative scenario for how and why Laci Peterson was killed.

Let's look at some of the other things Grogan's done.

The prosecution's invested in the theory that Laci couldn't walk her dog. Well, Laci's own mother confirmed that she was walking the dog.

The mysterious disappearing cement. Whatever happened to it? Now Grogan is basically acknowledging that there's evidence that it went into fence posts in the yard.

So there seems to be an explanation for almost everything. It's got to be clear at this point that the prosecution is really struggling.

COSTELLO: So, does the defense have to put on any witnesses at all of its own?

COFFEY: I think they're going to focus on one thing, and that's showing that Laci Peterson was still alive on December 24. Because if she was, and if she was seen walking her dog, or if the time of death forensic experts can show that she wasn't, that she was, in fact, alive after December 24, then clearly Scott Peterson is innocent.

I think they're going to put on that kind of evidence. Beyond that, I think the defense considers itself ahead in this case and doesn't really need to take a lot of chances when it becomes its turn to present its own witnesses and its own evidence in the defense case.

COSTELLO: Kendall Coffey live in Miami.

Thank you, Kendall.

COFFEY: Hey, thanks.

COSTELLO: Parents of a Florida woman at the center of a right to die case say they will keep fighting to keep their brain damaged daughter alive. Terri Schiavo has relied on a feeding tube to live for the past 14 years. A state supreme court ruling last week could pave the way for that tube to be disconnected.

On CNN's "LARRY KING LIVE," Schiavo's parents talked about their ordeal.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

MARY SCHINDLER, TERRI SCHIAVO'S MOTHER: You've never seen like it, Larry, in your life, as a mother watching your child starve to death.

ROBERT SCHINDLER, TERRI SCHIAVO'S FATHER: And we went through that two times.

M. SCHINDLER: Two times.

LARRY KING, HOST: When they stopped food?

(CROSSTALK)

KING: How long? How many days?

M. SCHINDLER: The first time was 60 days.

KING: Sixty...

R. SCHINDLER: No, no, no.

M. SCHINDLER: Sixty -- I'm sorry, 60 hours.

R. SCHINDLER: Sixty hours.

M. SCHINDLER: The second time was seven days.

R. SCHINDLER: And the...

M. SCHINDLER: And she is a strong girl.

KING: Did she nearly die, seven days?

M. SCHINDLER: Well, yes. She was close to it.

R. SCHINDLER: Yes. But they wouldn't let us in the room by ourselves with her. There were police outside of her room, there were police in her room. M. SCHINDLER: There was Michael's representatives in her room. I didn't have one second alone with her while she was dying.

(END VIDEO CLIP)

COSTELLO: The Schindlers are trying to win guardianship of Terri from her husband. They'll attend a hearing on that issue on Thursday.

Still much more ahead here on DAYBREAK. The candidates have issues with each other and the country. But is either talking about what people really care about?

Also, controversy on the Metro. Did police go too far in trying to silence one pregnant woman's cell phone call? We have all the details when DAYBREAK returns.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you.

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

Now in the news, word in this morning of an ambush on a British military convoy in Iraq. The British Ministry of Defense says two British soldiers were killed on the southwestern outskirts of Basra.

The U.S. held him for three years as an enemy combatant. Today, Yasser Hamdi could fly back to his native Saudi Arabia. Under a deal with the U.S., Hamdi has to give up his U.S. citizenship, but he gets to keep his Saudi citizenship.

Fans still fighting over Barry Bond's 700th home run ball. The San Francisco Giants fan who caught it is being sued by another fan, who says the ball was stolen from him during a mad scramble in the stands.

To the forecast center now and Rob.

MARCIANO: That's a shame. It's all about money, isn't it?

He's going to auction it off. Or was he going to give it back to Barry?

COSTELLO: Oh, right.

MARCIANO: Hey, good news out of Florida. It's a little bit more quiet today. There'll be a chance for a shower or storm, but temperatures generally right around 90.

Here's where Jeanne's going, western parts of the mid-Atlantic up through Virginia and upstate New York, as well. Flooding rains potentially there.

(WEATHER REPORT)

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