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CNN Live At Daybreak

In Iraq, Another Hostage Crisis; Arab View of Developments in Iraq

Aired October 27, 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, another hostage stand-off in Iraq. This video from an Islamic Web site shows insurgents holding a Japanese man. They're threatening to kill him unless Japan pulls its troops out of Iraq. We'll have a live report for you from Baghdad in a few minutes.

And from northern Japan this morning, pictures of survival. Rescue workers found a woman and her two young children. They had been buried here for four days in their car after this weekend's earthquakes.

In California, the prosecution calls rebuttal witnesses today in the Scott Peterson trial. The defense has rested its case without calling Peterson to the stand. Our legal analyst, Kendall Coffey, weighs in at 20 minutes past the hour.

And the curse has not stopped Boston, and St. Louis hasn't either. The Red Sox have chalked up yet another win against the Cardinals, taking a three games to none lead in the World Series. Boston tries for a sweep tonight.

To the forecast center.

Rob Marciano in for Chad today -- good morning.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Just under a week left, six days to go until Election Day, and George Bush and John Kerry are hitting the battleground states hard as the two contenders try to sway undecided voters. They're accusing each other of dropping the ball on key issues.

John Kerry got in some baseball practice when he stopped in New Mexico. But George Bush doesn't liken the senator's game. Kerry again hammered Bush on Iraq, saying nearly 400 tons over missing explosives shows the president bungled the war.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Terrorists could be helping themselves to what has been called, I quote, and this is by the people who reported them missing, "the greatest explosives bonanza in history." No wonder the president thinks and said the other day that whether or not we're going to be safe is "up in the air."

COSTELLO: George Bush is staying upbeat on Iraq. In Wisconsin, he said the Kerry camp is all talk and no action.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: My opponent has no plan, no vision, just a long list of com[plaints. But a Monday morning quarterback has never led any team to victory.

COSTELLO: With less than a week to go, Bush and Kerry are hitting the battleground states hard. Bush visits Pennsylvania, Ohio and Michigan today. In the meantime, Kerry is making two stops in Iowa, with a stop in Minnesota in between. The latest poll shows the two locked in a tight race in the battlegrounds. In Iowa, a CNN/"USA Today"/Gallup poll of likely voters shows 50 percent back Bush, while 46 percent favor Kerry. But among registered voters in the state, Kerry leads Bush by 1 point, 48 percent Kerry, 47 percent Bush. The poll has a 4 percent margin of error.

Ah, the race is just as tight in Florida. But as many as 14,000 people might not be able to vote there. A federal judge has ruled that because they didn't fill out voter registration forms completely, election officials do not have to process them. An appeal is expected, but it is not clear this morning if the issue will be resolved before the election on November 2.

In Iraq this morning, major troop movements and yet another hostage crisis.

For the latest, let's head live to Baghdad and CNN's Jane Arraf -- good morning, Jane.

JANE ARRAF, CNN CORRESPONDENT: Good morning, Carol.

British troops are on the move from the south of Iraq closer to Baghdad, to back up U.S. forces. About 550 troops from the elite Black Watch Battalion and 300 more support troops headed out this morning, along with about 50 tanks on transporters.

They're going to end up near Babil, south of Baghdad, to help U.S. forces, particularly in that volatile region, as the U.S. military prepares for an assault on Falluja, expected to destabilize several parts of the country.

And another hostage drama unfolding. The Japanese government says it will not withdraw its troops. It has about 500 non-combat troops close to the south and it says they are staying despite a threat to behead a 24-year-old Japanese man. He was kidnapped with the clock ticking. The group holding him associated with Abu Musab al-Zarqawi, who's believed to have pledged allegiance to Osama bin Laden, has said it will execute him in 48 hours if the Japanese do not withdraw. They say they're not sure why he was heading to Iraq. He was apparently seized while in a car on the way from Jordan, the implication being that he was just traveling, a trip obviously gone terribly wrong -- Carol.

COSTELLO: Jane Arraf reporting live from Baghdad this morning. Thank you.

In News Across America this morning, a Florida judge will be asked today to pick a day for the removal of Terri Schiavo's feeding tube. Her husband Michael is asking the court to let his severely brain damaged wife die. Terri Schiavo's parents and Governor Jeb Bush have been fighting in court to keep her alive.

A Dallas judge held a party, yes, a party, for a convicted felon, complete with balloons and a cake. It doubled as a welcome home party and a going away party. This man was sentenced to life in prison. Billy Wayne Williams, that's what his name is. He was on the lam last year when he was convicted of aggravated assault and he was finally recaptured last week, to the judge's delight.

No charges will be filed against a former actor whose tiger got loose in July. You'll remember that Bobo the tiger was shot by a wildlife officer after 26 hours on the loose. Prosecutors had considered charging owner Steve Sipek for allowing the animal to escape and causing a threat to the public.

Things got a little heated between Howard Stern and FCC Chairman Michael Powell. The two got into a verbal duel during a radio call-in show in Sacramento. The shock jock called into question Powell's credentials as head of the Federal Communications Commission.

Listen.

(BEGIN VIDEO CLIP)

MICHAEL POWELL, FCC CHAIRMAN: POWELL: I think you have a right to be concerned about the way the indecency fines are done, but rather than attack me personally, you can challenge the regime. But the entire commission has voted on those fines. The commission has a statue...

HOWARD STERN: Michael...

POWELL: ... that its required to enforce...

STERN: Michael, Michael, you just...

POWELL: And I think it's a cheap shot to say just because my father's famous, I don't belong in my position even though I've served longer than any commissioner in decades at the Commission.

If you don't believe the Commission should have any right to draw limits, I think that's a respectable position...

STERN: Michael...

POWELL: ... but it doesn't happen to be the law.

STERN: Well, Michael, it's not a cheap shot to say to you that your father got you your position, and I'll tell you why. Guys like me, who came from nowhere out of nothing, who worked their way up and committed themselves to broadcasting and a career in broadcasting have to answer to you. And it is in question as to how you got to where you got to. And let's face it, you got to the head of the FCC, you got to the front of the class the way George W. Bush got out of the draft.

(END VIDEO CLIP)

COSTELLO: Michael Powell, of course, is son of Secretary of State Colin Powell. He was appointed to the Commission under President Clinton, but became chairman under President Bush. Clear Channel Communications, you may remember, was fined nearly half a million dollars by the FCC for indecent material in the Howard Stern radio show.

Still to come on DAYBREAK, the hostages in Iraq. What are the Arab media saying to their viewers about the men and the women being held by insurgents? That's ahead at 6:15 Eastern.

Plus, they wait and then a few of them get to watch. We'll hear from the dedicated spectators at the Scott Peterson trial. You will not believe this story. That comes your way at 20 minutes past the hour.

And then, taking the low carb or the low cal route for trick or treat this year? We'll see if that sugar-free candy really makes a difference in your diet.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 6:12 Eastern.

Here's what's all new this morning.

Colin Powell's calls for talks between China and Taiwan have now been rejected by China. In the meantime, there were protests in Taiwan after Powell said that Taiwan is not an independent state.

NASA scientists have gotten their best look ever at Saturn's largest moon. The Cassini spacecraft took this picture during its first pass by Titan. Later this year, NASA will send a probe down to Titan's surface.

In money news, ATA has become the third major airline to file for Chapter 11 bankruptcy protection in the past two years. ATA is the nation's tenth largest airline. It's hoping to keep flying while it restructures. US Airways and United Airlines are also operating under Chapter 11.

In culture, it was 100 years ago today that New Yorkers got their first taste of subway travel. Back then, a ride cost a nickel. Today, millions of people pay $2 per trip to ride the New York subway. In sports, here's a new twist on an old rivalry. SBC Communications has paid $1 million for naming rights to the annual Ohio State-Michigan football game. The next two meetings between the teams will be called the SBC Michigan-Ohio State Classic. Oh, that's just wrong. That's just wrong.

MARCIANO: Well, hey, you know, they said the same thing when they started sponsoring Bowl games, it's going to open up a can of worms and it means mas dinero for the universities across America.

COSTELLO: I know.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Developments in Iraq seldom play out in the Arab media the way they do here.

So let's get an Arab view of the recent kidnappings and the missing explosives.

Joining us, as she does every week at this time, is CNN's senior editor for Arab affairs, Octavia Nasr -- good morning, Octavia.

OCTAVIA NASR, CNN CORRESPONDENT: Good morning, Carol.

COSTELLO: Should we start with the missing weapons cache and how the Arab media is playing that out on television?

NASR: Sure. Why not?

COSTELLO: OK.

NASR: The interesting thing about the missing weapons is that you don't see much of it on Arab media. And yesterday I was speaking with an Arab media executive and I said how come? This is a big story. It should be a big story for you. And he said it's too confusing. They do not know how to report that story. The IAEA is saying something. The Pentagon is saying something else. The Iraqis have nothing to say on this. And they're stuck in the middle. The executive yesterday said look, this is a U.S. story. We're going to leave it alone until it's clear, until someone steps in and says I'm responsible, my troops are responsible, they -- it's a confusing story.

COSTELLO: So they're not going to go and ferret out the facts, because really it makes not much difference to them?

NASR: And it's not -- they don't have access to that kind of reporting. So they're staying out of it. Now, they are reporting it, but they're reporting it in the framework of the U.S. elections. So they're talking about they're reporting it as a tit for tat between Kerry and Bush over did you know or did you not know, it's your responsibility, it's your fault. Well, it could have been worse under you. COSTELLO: And that said, it's just the same as the, as the United States media.

Let's talk about the British troops. They're on the move now. They're going toward Baghdad, some 800 British troops, so that they can relieve some American forces to go fight in hot spots like Falluja and Ramadi. This seemingly will effect the situation of Margaret Hassan, the woman married to the Iraqi, the British citizen who's now being held hostage.

How is that being played out in the Arab media?

NASR: They are warning that her life is in danger and any action such as this one by the British government is going to jeopardize her life. Al Jazeera especially continues to run appeals. Yesterday they had a new emotional appeal by Margaret Hassan's husband, who, as you said, is an Iraqi citizen. And, of course, she works for CARE. She works for an organization that is known for helping Iraqis and people around the world.

So Al Jazeera especially, and Arab media in general, they're playing this very high. They're still reminding that she is an Iraqi citizen, as well, by marriage, but she's served in Iraq for the last 30 years. She loves Iraq and so forth. But they do warn that actions such as the movement of troops and sending in more troops by the British government is not going to help Margaret's case at all.

COSTELLO: And of course this morning we found that another man was taken hostage, a Japanese national.

NASR: Right. A Japanese national was taken hostage and there is a new threat. They said, the group that took him is called Kahadet al-Jihad Tribilata Rafiden (ph), which means that Kahadet Jihad in the Euphrates country. It's a new group. Some believe that this is the same group as that of Zarqawi, the Unification and Jihad, but changed names after the group supposedly pledged allegiance to bin Laden.

Anyway, they took this guy hostage and they're giving the Japanese government 48 hours to either pull out of Iraq or the guy will be beheaded.

Now, what Arab media are reporting, this is their top story. The newscast I just watched before coming here, that's the lead story. But the focus is not so much on the hostage himself, but on the Japanese government reaction. And basically they're saying the Japanese government is saying it loud and clear, that they are not going to cave in to kidnappers' demands and they are not going to pull their troops out of Iraq.

So, again, Arab media warning this is not too good for the life of this gentleman.

COSTELLO: Octavia Nasr, thank you for joining us, as usual.

NASR: Any time. COSTELLO: Still to come on DAYBREAK, closing arguments will begin soon in the Scott Peterson case. But most of you probably haven't heard what's going on outside of the courtroom.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Scott looked like a real fox in his -- before he was arrested.

(END VIDEO CLIP)

COSTELLO: Wow!

What's in the minds of the people who wait in line to see the Scott Peterson trial? You won't believe it.

You're watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: After just 14 witnesses and six days, Scott Peterson's star attorney rested his case. Yes, the defense has rested and Scott Peterson did not take the stand. Some legal experts call Mark Geragos' strategy potentially dangerous. After all, the prosecution's case took 19 weeks and more than 100 witnesses. Today, the prosecution will begin its rebuttal with as many as eight witnesses being called to testify.

Kendall Coffey, our legal analyst, is in Miami this morning.

He has been following this case -- and, Kendall, we have questions for you this morning.

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

Go ahead.

COSTELLO: So Peterson's attorney put on an expert on cement and Peterson's parents. Those were like the highlights of the defense's case.

Is this, as some legal experts are saying, a potentially dangerous strategy?

COFFEY: Well, it's a typical strategy in defense cases where they want to emphasize on the prosecution's inability to prove its case rather than put the defense in the position of having to prove that they are innocent.

I think one of the concerns here, though, is that the defense may have over promised in its opening statement about what it would show and now it's under delivering in the defense case. That could cost credibility points in front of the jury.

COSTELLO: Before we get to what Mark Geragos said in his opening arguments, wouldn't it have been more effective if you're trying that defense strategy to put on no defense at all, to just say, to just sit down?

COFFEY: Well, it all depends what you've got. If you've got a few decent cards, you're going to play them. And in this case, I think the defense made at least a few points with respect to the cement evidence. You remember their defense experts sort of may have convinced the jury that that cement wound up, after all, in the driveway of Scott Peterson, rather than in anchors or weights weighing down the body of Laci Peterson.

COSTELLO: OK, let's go back to something else that you said about Mark Geragos overstating his case in opening arguments. He said that he would prove Scott Peterson was "stone cold innocent." He certainly didn't do that.

COFFEY: No, he did not prove, for example, as he told the jury, that Conner was born alive. Nor did he produce witnesses that he said he would produce who saw a pregnant -- who say they saw someone who looked a whole lot like Laci Peterson walking a dog the morning after Scott Peterson supposedly murdered her.

But it's all going to come down to reasonable doubt. The jury is going to get some instructions, Carol, that will help the defense with respect to the fact that it's a circumstantial case that has to be proven beyond a reasonable doubt.

COSTELLO: And finally, Kendall, do we get any sense as to what the jury might be thinking?

COFFEY: Well, if you're reading the tea leaves as they're being reported, there are clearly a number of jurors that think he's guilty. There could be a couple that are going to be there for the defense, but certainly there is clearly a body of jurors that are ready to convict Scott Peterson.

COSTELLO: Kendall Coffey live in Miami this morning.

Thank you.

COFFEY: Any time.

COSTELLO: So, the Peterson trial is entering its final phase and it could be over quite soon. But for some people, the end of this trial comes as an unwelcome sign that they actually have to go out and get a life.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There will be 27 seats available today, 27.

UNIDENTIFIED FEMALE: It's a matter of arriving by 7:30, getting a little ticket. We're on our way up north for our vacation and couldn't help but stop halfway.

UNIDENTIFIED FEMALE: Eight-five-one-four.

UNIDENTIFIED FEMALE: Wow! UNIDENTIFIED MALE: This is on my way to work. So if I get in, I call my boss and tell him I have car trouble or I'm calling in sick today. If I don't get in, I go to work. I've met people here from as far away as New York, Minnesota.

UNIDENTIFIED FEMALE: Northern Kentucky. I especially came out for the trial.

UNIDENTIFIED FEMALE: Eight-five-zero-seven.

UNIDENTIFIED FEMALE: I admire his performance anyway, Geragos. I don't agree with him, but, you know, I like his showmanship.

UNIDENTIFIED FEMALE: I want to see all the evidence. I don't like the way evidence is interpreted on TV. I like to see it for myself.

UNIDENTIFIED MALE: First of all, I thought he was guilty. Since I've been coming, I've seen what Geragos has been bringing in, the other side. So now I'm neutral.

UNIDENTIFIED FEMALE: Scott looked like a real fox in his -- before he was arrested.

UNIDENTIFIED MALE: Don't go away until we confirm the last number, all right?

UNIDENTIFIED FEMALE: I was amazed at how small he is in stature compared to what he looked like on camera.

UNIDENTIFIED FEMALE: Pale. And he's very -- he's got jail pale, jail pale.

UNIDENTIFIED FEMALE: Really?

UNIDENTIFIED FEMALE: No color.

UNIDENTIFIED MALE: By the way, this is the public seating card you've got there.

UNIDENTIFIED FEMALE: And I got pick number one and they're left out in the cold.

UNIDENTIFIED FEMALE: And we hate her, absolutely hate her.

UNIDENTIFIED FEMALE: Upset, capital U. She takes us to lunch.

(END VIDEO CLIP)

COSTELLO: You want to keep up with the trial of Scott Peterson without waiting in line? Then go online and visit cnn.com for daily updates. Closing arguments, by the way, start next week.

Coming up, what exactly happened and when? Questions abound from the case of those missing explosives in Iraq. We'll check out the time line of events and discuss reaction from the campaigns. Then, he's coached Jordan, Pippen, Kobe and Shaq. Now Phil Jackson shares his NBA memories.

(COMMERCIAL BREAK)

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 October 27, 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, another hostage stand-off in Iraq. This video from an Islamic Web site shows insurgents holding a Japanese man. They're threatening to kill him unless Japan pulls its troops out of Iraq. We'll have a live report for you from Baghdad in a few minutes.

And from northern Japan this morning, pictures of survival. Rescue workers found a woman and her two young children. They had been buried here for four days in their car after this weekend's earthquakes.

In California, the prosecution calls rebuttal witnesses today in the Scott Peterson trial. The defense has rested its case without calling Peterson to the stand. Our legal analyst, Kendall Coffey, weighs in at 20 minutes past the hour.

And the curse has not stopped Boston, and St. Louis hasn't either. The Red Sox have chalked up yet another win against the Cardinals, taking a three games to none lead in the World Series. Boston tries for a sweep tonight.

To the forecast center.

Rob Marciano in for Chad today -- good morning.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Just under a week left, six days to go until Election Day, and George Bush and John Kerry are hitting the battleground states hard as the two contenders try to sway undecided voters. They're accusing each other of dropping the ball on key issues.

John Kerry got in some baseball practice when he stopped in New Mexico. But George Bush doesn't liken the senator's game. Kerry again hammered Bush on Iraq, saying nearly 400 tons over missing explosives shows the president bungled the war.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Terrorists could be helping themselves to what has been called, I quote, and this is by the people who reported them missing, "the greatest explosives bonanza in history." No wonder the president thinks and said the other day that whether or not we're going to be safe is "up in the air."

COSTELLO: George Bush is staying upbeat on Iraq. In Wisconsin, he said the Kerry camp is all talk and no action.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: My opponent has no plan, no vision, just a long list of com[plaints. But a Monday morning quarterback has never led any team to victory.

COSTELLO: With less than a week to go, Bush and Kerry are hitting the battleground states hard. Bush visits Pennsylvania, Ohio and Michigan today. In the meantime, Kerry is making two stops in Iowa, with a stop in Minnesota in between. The latest poll shows the two locked in a tight race in the battlegrounds. In Iowa, a CNN/"USA Today"/Gallup poll of likely voters shows 50 percent back Bush, while 46 percent favor Kerry. But among registered voters in the state, Kerry leads Bush by 1 point, 48 percent Kerry, 47 percent Bush. The poll has a 4 percent margin of error.

Ah, the race is just as tight in Florida. But as many as 14,000 people might not be able to vote there. A federal judge has ruled that because they didn't fill out voter registration forms completely, election officials do not have to process them. An appeal is expected, but it is not clear this morning if the issue will be resolved before the election on November 2.

In Iraq this morning, major troop movements and yet another hostage crisis.

For the latest, let's head live to Baghdad and CNN's Jane Arraf -- good morning, Jane.

JANE ARRAF, CNN CORRESPONDENT: Good morning, Carol.

British troops are on the move from the south of Iraq closer to Baghdad, to back up U.S. forces. About 550 troops from the elite Black Watch Battalion and 300 more support troops headed out this morning, along with about 50 tanks on transporters.

They're going to end up near Babil, south of Baghdad, to help U.S. forces, particularly in that volatile region, as the U.S. military prepares for an assault on Falluja, expected to destabilize several parts of the country.

And another hostage drama unfolding. The Japanese government says it will not withdraw its troops. It has about 500 non-combat troops close to the south and it says they are staying despite a threat to behead a 24-year-old Japanese man. He was kidnapped with the clock ticking. The group holding him associated with Abu Musab al-Zarqawi, who's believed to have pledged allegiance to Osama bin Laden, has said it will execute him in 48 hours if the Japanese do not withdraw. They say they're not sure why he was heading to Iraq. He was apparently seized while in a car on the way from Jordan, the implication being that he was just traveling, a trip obviously gone terribly wrong -- Carol.

COSTELLO: Jane Arraf reporting live from Baghdad this morning. Thank you.

In News Across America this morning, a Florida judge will be asked today to pick a day for the removal of Terri Schiavo's feeding tube. Her husband Michael is asking the court to let his severely brain damaged wife die. Terri Schiavo's parents and Governor Jeb Bush have been fighting in court to keep her alive.

A Dallas judge held a party, yes, a party, for a convicted felon, complete with balloons and a cake. It doubled as a welcome home party and a going away party. This man was sentenced to life in prison. Billy Wayne Williams, that's what his name is. He was on the lam last year when he was convicted of aggravated assault and he was finally recaptured last week, to the judge's delight.

No charges will be filed against a former actor whose tiger got loose in July. You'll remember that Bobo the tiger was shot by a wildlife officer after 26 hours on the loose. Prosecutors had considered charging owner Steve Sipek for allowing the animal to escape and causing a threat to the public.

Things got a little heated between Howard Stern and FCC Chairman Michael Powell. The two got into a verbal duel during a radio call-in show in Sacramento. The shock jock called into question Powell's credentials as head of the Federal Communications Commission.

Listen.

(BEGIN VIDEO CLIP)

MICHAEL POWELL, FCC CHAIRMAN: POWELL: I think you have a right to be concerned about the way the indecency fines are done, but rather than attack me personally, you can challenge the regime. But the entire commission has voted on those fines. The commission has a statue...

HOWARD STERN: Michael...

POWELL: ... that its required to enforce...

STERN: Michael, Michael, you just...

POWELL: And I think it's a cheap shot to say just because my father's famous, I don't belong in my position even though I've served longer than any commissioner in decades at the Commission.

If you don't believe the Commission should have any right to draw limits, I think that's a respectable position...

STERN: Michael...

POWELL: ... but it doesn't happen to be the law.

STERN: Well, Michael, it's not a cheap shot to say to you that your father got you your position, and I'll tell you why. Guys like me, who came from nowhere out of nothing, who worked their way up and committed themselves to broadcasting and a career in broadcasting have to answer to you. And it is in question as to how you got to where you got to. And let's face it, you got to the head of the FCC, you got to the front of the class the way George W. Bush got out of the draft.

(END VIDEO CLIP)

COSTELLO: Michael Powell, of course, is son of Secretary of State Colin Powell. He was appointed to the Commission under President Clinton, but became chairman under President Bush. Clear Channel Communications, you may remember, was fined nearly half a million dollars by the FCC for indecent material in the Howard Stern radio show.

Still to come on DAYBREAK, the hostages in Iraq. What are the Arab media saying to their viewers about the men and the women being held by insurgents? That's ahead at 6:15 Eastern.

Plus, they wait and then a few of them get to watch. We'll hear from the dedicated spectators at the Scott Peterson trial. You will not believe this story. That comes your way at 20 minutes past the hour.

And then, taking the low carb or the low cal route for trick or treat this year? We'll see if that sugar-free candy really makes a difference in your diet.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 6:12 Eastern.

Here's what's all new this morning.

Colin Powell's calls for talks between China and Taiwan have now been rejected by China. In the meantime, there were protests in Taiwan after Powell said that Taiwan is not an independent state.

NASA scientists have gotten their best look ever at Saturn's largest moon. The Cassini spacecraft took this picture during its first pass by Titan. Later this year, NASA will send a probe down to Titan's surface.

In money news, ATA has become the third major airline to file for Chapter 11 bankruptcy protection in the past two years. ATA is the nation's tenth largest airline. It's hoping to keep flying while it restructures. US Airways and United Airlines are also operating under Chapter 11.

In culture, it was 100 years ago today that New Yorkers got their first taste of subway travel. Back then, a ride cost a nickel. Today, millions of people pay $2 per trip to ride the New York subway. In sports, here's a new twist on an old rivalry. SBC Communications has paid $1 million for naming rights to the annual Ohio State-Michigan football game. The next two meetings between the teams will be called the SBC Michigan-Ohio State Classic. Oh, that's just wrong. That's just wrong.

MARCIANO: Well, hey, you know, they said the same thing when they started sponsoring Bowl games, it's going to open up a can of worms and it means mas dinero for the universities across America.

COSTELLO: I know.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Developments in Iraq seldom play out in the Arab media the way they do here.

So let's get an Arab view of the recent kidnappings and the missing explosives.

Joining us, as she does every week at this time, is CNN's senior editor for Arab affairs, Octavia Nasr -- good morning, Octavia.

OCTAVIA NASR, CNN CORRESPONDENT: Good morning, Carol.

COSTELLO: Should we start with the missing weapons cache and how the Arab media is playing that out on television?

NASR: Sure. Why not?

COSTELLO: OK.

NASR: The interesting thing about the missing weapons is that you don't see much of it on Arab media. And yesterday I was speaking with an Arab media executive and I said how come? This is a big story. It should be a big story for you. And he said it's too confusing. They do not know how to report that story. The IAEA is saying something. The Pentagon is saying something else. The Iraqis have nothing to say on this. And they're stuck in the middle. The executive yesterday said look, this is a U.S. story. We're going to leave it alone until it's clear, until someone steps in and says I'm responsible, my troops are responsible, they -- it's a confusing story.

COSTELLO: So they're not going to go and ferret out the facts, because really it makes not much difference to them?

NASR: And it's not -- they don't have access to that kind of reporting. So they're staying out of it. Now, they are reporting it, but they're reporting it in the framework of the U.S. elections. So they're talking about they're reporting it as a tit for tat between Kerry and Bush over did you know or did you not know, it's your responsibility, it's your fault. Well, it could have been worse under you. COSTELLO: And that said, it's just the same as the, as the United States media.

Let's talk about the British troops. They're on the move now. They're going toward Baghdad, some 800 British troops, so that they can relieve some American forces to go fight in hot spots like Falluja and Ramadi. This seemingly will effect the situation of Margaret Hassan, the woman married to the Iraqi, the British citizen who's now being held hostage.

How is that being played out in the Arab media?

NASR: They are warning that her life is in danger and any action such as this one by the British government is going to jeopardize her life. Al Jazeera especially continues to run appeals. Yesterday they had a new emotional appeal by Margaret Hassan's husband, who, as you said, is an Iraqi citizen. And, of course, she works for CARE. She works for an organization that is known for helping Iraqis and people around the world.

So Al Jazeera especially, and Arab media in general, they're playing this very high. They're still reminding that she is an Iraqi citizen, as well, by marriage, but she's served in Iraq for the last 30 years. She loves Iraq and so forth. But they do warn that actions such as the movement of troops and sending in more troops by the British government is not going to help Margaret's case at all.

COSTELLO: And of course this morning we found that another man was taken hostage, a Japanese national.

NASR: Right. A Japanese national was taken hostage and there is a new threat. They said, the group that took him is called Kahadet al-Jihad Tribilata Rafiden (ph), which means that Kahadet Jihad in the Euphrates country. It's a new group. Some believe that this is the same group as that of Zarqawi, the Unification and Jihad, but changed names after the group supposedly pledged allegiance to bin Laden.

Anyway, they took this guy hostage and they're giving the Japanese government 48 hours to either pull out of Iraq or the guy will be beheaded.

Now, what Arab media are reporting, this is their top story. The newscast I just watched before coming here, that's the lead story. But the focus is not so much on the hostage himself, but on the Japanese government reaction. And basically they're saying the Japanese government is saying it loud and clear, that they are not going to cave in to kidnappers' demands and they are not going to pull their troops out of Iraq.

So, again, Arab media warning this is not too good for the life of this gentleman.

COSTELLO: Octavia Nasr, thank you for joining us, as usual.

NASR: Any time. COSTELLO: Still to come on DAYBREAK, closing arguments will begin soon in the Scott Peterson case. But most of you probably haven't heard what's going on outside of the courtroom.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Scott looked like a real fox in his -- before he was arrested.

(END VIDEO CLIP)

COSTELLO: Wow!

What's in the minds of the people who wait in line to see the Scott Peterson trial? You won't believe it.

You're watching DAYBREAK.

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COSTELLO: After just 14 witnesses and six days, Scott Peterson's star attorney rested his case. Yes, the defense has rested and Scott Peterson did not take the stand. Some legal experts call Mark Geragos' strategy potentially dangerous. After all, the prosecution's case took 19 weeks and more than 100 witnesses. Today, the prosecution will begin its rebuttal with as many as eight witnesses being called to testify.

Kendall Coffey, our legal analyst, is in Miami this morning.

He has been following this case -- and, Kendall, we have questions for you this morning.

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

Go ahead.

COSTELLO: So Peterson's attorney put on an expert on cement and Peterson's parents. Those were like the highlights of the defense's case.

Is this, as some legal experts are saying, a potentially dangerous strategy?

COFFEY: Well, it's a typical strategy in defense cases where they want to emphasize on the prosecution's inability to prove its case rather than put the defense in the position of having to prove that they are innocent.

I think one of the concerns here, though, is that the defense may have over promised in its opening statement about what it would show and now it's under delivering in the defense case. That could cost credibility points in front of the jury.

COSTELLO: Before we get to what Mark Geragos said in his opening arguments, wouldn't it have been more effective if you're trying that defense strategy to put on no defense at all, to just say, to just sit down?

COFFEY: Well, it all depends what you've got. If you've got a few decent cards, you're going to play them. And in this case, I think the defense made at least a few points with respect to the cement evidence. You remember their defense experts sort of may have convinced the jury that that cement wound up, after all, in the driveway of Scott Peterson, rather than in anchors or weights weighing down the body of Laci Peterson.

COSTELLO: OK, let's go back to something else that you said about Mark Geragos overstating his case in opening arguments. He said that he would prove Scott Peterson was "stone cold innocent." He certainly didn't do that.

COFFEY: No, he did not prove, for example, as he told the jury, that Conner was born alive. Nor did he produce witnesses that he said he would produce who saw a pregnant -- who say they saw someone who looked a whole lot like Laci Peterson walking a dog the morning after Scott Peterson supposedly murdered her.

But it's all going to come down to reasonable doubt. The jury is going to get some instructions, Carol, that will help the defense with respect to the fact that it's a circumstantial case that has to be proven beyond a reasonable doubt.

COSTELLO: And finally, Kendall, do we get any sense as to what the jury might be thinking?

COFFEY: Well, if you're reading the tea leaves as they're being reported, there are clearly a number of jurors that think he's guilty. There could be a couple that are going to be there for the defense, but certainly there is clearly a body of jurors that are ready to convict Scott Peterson.

COSTELLO: Kendall Coffey live in Miami this morning.

Thank you.

COFFEY: Any time.

COSTELLO: So, the Peterson trial is entering its final phase and it could be over quite soon. But for some people, the end of this trial comes as an unwelcome sign that they actually have to go out and get a life.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There will be 27 seats available today, 27.

UNIDENTIFIED FEMALE: It's a matter of arriving by 7:30, getting a little ticket. We're on our way up north for our vacation and couldn't help but stop halfway.

UNIDENTIFIED FEMALE: Eight-five-one-four.

UNIDENTIFIED FEMALE: Wow! UNIDENTIFIED MALE: This is on my way to work. So if I get in, I call my boss and tell him I have car trouble or I'm calling in sick today. If I don't get in, I go to work. I've met people here from as far away as New York, Minnesota.

UNIDENTIFIED FEMALE: Northern Kentucky. I especially came out for the trial.

UNIDENTIFIED FEMALE: Eight-five-zero-seven.

UNIDENTIFIED FEMALE: I admire his performance anyway, Geragos. I don't agree with him, but, you know, I like his showmanship.

UNIDENTIFIED FEMALE: I want to see all the evidence. I don't like the way evidence is interpreted on TV. I like to see it for myself.

UNIDENTIFIED MALE: First of all, I thought he was guilty. Since I've been coming, I've seen what Geragos has been bringing in, the other side. So now I'm neutral.

UNIDENTIFIED FEMALE: Scott looked like a real fox in his -- before he was arrested.

UNIDENTIFIED MALE: Don't go away until we confirm the last number, all right?

UNIDENTIFIED FEMALE: I was amazed at how small he is in stature compared to what he looked like on camera.

UNIDENTIFIED FEMALE: Pale. And he's very -- he's got jail pale, jail pale.

UNIDENTIFIED FEMALE: Really?

UNIDENTIFIED FEMALE: No color.

UNIDENTIFIED MALE: By the way, this is the public seating card you've got there.

UNIDENTIFIED FEMALE: And I got pick number one and they're left out in the cold.

UNIDENTIFIED FEMALE: And we hate her, absolutely hate her.

UNIDENTIFIED FEMALE: Upset, capital U. She takes us to lunch.

(END VIDEO CLIP)

COSTELLO: You want to keep up with the trial of Scott Peterson without waiting in line? Then go online and visit cnn.com for daily updates. Closing arguments, by the way, start next week.

Coming up, what exactly happened and when? Questions abound from the case of those missing explosives in Iraq. We'll check out the time line of events and discuss reaction from the campaigns. Then, he's coached Jordan, Pippen, Kobe and Shaq. Now Phil Jackson shares his NBA memories.

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