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CNN Live At Daybreak

Kmart, Sears to Merge; Arab Voice; Tea Time

Aired November 17, 2004 - 06:30   ET

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

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


CAROL COSTELLO, CNN ANCHOR: And good morning to you. Welcome to DAYBREAK. There is a lot going on this morning, and that is no understatement. Here are the latest headlines for you now.
Russian President Vladimir Putin says Russia is developing a new type of nuclear missile unlike those held by other countries. Russian News Agency quotes him as saying the new weapons will be put into service within the next few years.

And there's also this: Is Iran secretly developing nuclear weapons? This morning, an Iranian opposition group says the country has a secret weapons facility in the capital, Tehran. The group says it has satellite photos to back up its claim.

Also in Iraq, the U.S. military says the northern city of Mosul is mostly calm this morning. This is the second day of a stepped-up offensive aimed at securing Mosul from insurgents.

And CNN has learned of a business merger involving two big names in the retail market. Sears and Kmart department stores plan to merge by March of next year in an $11 billion deal. We'll have more of this live from the Nasdaq in just a second.

And traffic is moving again along Interstate 35 at the Texas- Oklahoma state line. The highway was closed for several hours after a 25 car pileup. Three people were taken to area hospitals.

(WEATHER REPORT)

COSTELLO: Word just coming into us. There are reports this morning that Sears and Kmart will merge by March of 2005, and it's a whopper of a deal, $11 billion.

Joining us with more on this is CNN's Carrie Lee. She's live at the Nasdaq Marketsite.

Tell us more -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Well, this is official, Carol. The companies have announced it.

Sears Roebuck and Kmart merging, as you said, in an $11 billion stock deal, combining two big retailers that have both lost ground in competition with the discounters in recent years. The new company is going to be called Sears Holding Corporation -- Holdings, plural, Corporation, and be based at Sears' current headquarters in Chicago. Both names will be continued to be used on the stores. Now, the deal is advertised as a merger of equals, but details suggest it's slightly tilted towards a Kmart purchase of Sears.

If you're a Sears shareholder, then you're going to be able to choose between $50 in cash or half a share in the new Sears company, the stock valued at about $50.61. If you're a Kmart shareholder, you're going to get one share of Sears Holdings for each of your shares. Kmart shares yesterday closing at $101.22, Sears closing at 45.20.

So a little bit of a premium for the Sears shares, a premium of about 10 to 12 percent. Kmart shareholders, though, will see maybe no premium or maybe even a slightly lower value. So a very big deal for retailers, Carol.

COSTELLO: Boy!

LEE: It will be very interesting to see what these stocks do today.

COSTELLO: Oh, you're not kidding! I know that this is breaking news, and we don't know much. But is there any word on how it might change the merchandise in either store?

LEE: You know, it's interesting. It seems like Sears and Kmart, we know they've both been losing ground. We know Martha Stewart's items have been a strong point within Kmart. It seems like they just want to kind of combine and become a stronger entity. Who knows? Maybe they're going to weed through some of their weaker selling units, weaker selling items, take the strength within both stores and hopefully bring those two together. And, of course, they'll get some economies of scale as far as maybe back-office work and things like that.

So it's going to be a very interesting day for these companies in terms of stock price, but certainly a very big deal. This is going to become the nation's third-largest retailer, by the way -- Carol.

COSTELLO: It's planned to take place in March of 2005.

LEE: That's right.

COSTELLO: Carrie Lee live at the Nasdaq Marketsite, thank you.

New claims this morning that Iran is trying to develop nuclear weapons. An Iranian opposition group is releasing satellite photos. They did that this morning. They allegedly show a secret nuclear weapons research facility in Tehran. Take a look at the pictures now.

A satellite picture of the site taken in August of 2003 shows various buildings. But in a picture taken about seven months later -- here it is -- you see the buildings are gone. The group says the whole nuclear facility was moved to a new site to evade U.N. inspectors. These images, we have to tell you, have not been independently confirmed, but a Washington business consultant with ties to the opposition group says Iran is lying to the U.N. Nuclear Agency.

(BEGIN VIDEO CLIP)

ALI SAFAVI, BUSINESS CONSULTANT: It demonstrates, I think, before anything else, that despite its claims, its claims of cooperation with the IAEA, the Iranian regime is continuing its clandestine nuclear weapons program in defiance of its international obligations.

(END VIDEO CLIP)

COSTELLO: Iran's top nuclear negotiator tells CNN the claims are false and politically motivated. We'll have much more on this throughout the day on CNN.

The Iran nuclear controversy is one of the many major international issues Condoleezza Rice will have to tackle, if and when she becomes secretary of state. President Bush is urging the Senate to quickly confirm Rice. The president named his national security chief to succeed Colin Powell as the nation's top diplomat. Rice is one of the president's closest confidantes.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Condi Rice is already known to all Americans and to much of the world. During the last four years, I've relied on her counsel, benefited from her great experience, and appreciated her sound and steady judgment. And now I'm honored she has agreed to serve in my cabinet.

The secretary of state is America's face to the world, and in Dr. Rice the world will see the strength, the grace and the decency of our country.

(END VIDEO CLIP)

COSTELLO: Other cabinet changes could lie ahead. There's also word that Homeland Security Secretary Tom Ridge could be the next one to resign, although the administration has denied those reports.

Reporters get a sneak peek this morning at Bill Clinton's presidential library in Little Rock, Arkansas. The grand opening is tomorrow. President Bush, his father and former President Jimmy Carter will be on hand, and that's prompting a nearby company to remind workers to keep their guns at home. You see, it's deer hunting season in Arkansas, and some hunters keep their guns in their cars so they can dash to the woods right after work.

As the military investigates what happened at a Falluja mosque last Saturday, the incident continues to get heavy media attention. Up next, we'll take a look at how Arab television networks are portraying this story.

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

(COMMERCIAL BREAK)

COSTELLO: The story of the Marine killing -- the story of a Marine killing a wounded Iraqi is the top story on Arab television. It's being played out against the backdrop of what Arab journalists call censorship.

As you may know, Al-Jazeera has been banned from live reporting in Iraq, and U.S. forces arrested a correspondent from Al Arabiya without explanation.

With us now, our senior editor of Arab affairs, Octavia Nasr.

Good morning -- Octavia.

OCTAVIA NASR, CNN SENIOR EDITOR, ARAB AFFAIRS: Good morning, Carol.

COSTELLO: Octavia, during the active combat phase of the war, Arab correspondents were allowed to be embedded with U.S. troops. Not so now. How is that coloring Arab TV coverage?

NASR: Well, it's a very important story for Arab networks. Al- Jazeera, for example, keeps apologizing to their viewers, saying that we cannot bring you the story from the battlefield because we are banned from reporting there. Al Arabiya, as you mentioned, are playing high the fact their correspondent in Falluja was arrested last Thursday and with no explanation and no hope for his release.

These are the images that are playing on Arab networks. You see how they have these arrows pointing to the difference between day one and day two when the Marines went into that mosque. They're really detailing step by step what's happened there, explaining who got killed the first day, who was injured, how the Marines behaved. They're really playing the story very high on their newscasts.

COSTELLO: And in...

NASR: It's definitely a big story for them.

COSTELLO: In that case, we're talking about the Marine who shot the insurgent inside of that mosque in Falluja. The interesting thing is Margaret Hassan, the international CARE worker, was allegedly murdered on videotape. Are they showing that tape as well as this tape from inside that mosque?

NASR: No. Al-Jazeera is the one who are playing the tape of who they believe is Margaret Hassan. They couldn't confirm for sure. The family believes it is her also.

They didn't show the tape, they said, because it's too graphic. They are showing this one, and they're showing it over and over again in headlines, in voice-overs, over commentary. It's all over the place. They're showing it. Like I said, they're also showing arrows pointing, circling the shooting event. This one is playing out uncut, just as they got it.

Of course, Western media, especially when you look at CNN, we exercise a lot of sensitivity to the video and to the feelings of viewers and those involved in the video. So we don't run the video as is. But on Arab networks it's the whole thing is shown.

COSTELLO: All right, Octavia Nasr live from Atlanta this morning, thank you.

Your news, money, weather and sports. It's 6:43 Eastern. Here's what's all new this morning.

An Iranian opposition group says Iran is lying to U.N. nuclear inspectors. This morning, the group says it has evidence Iran is harboring a secret nuclear weapons research facility.

Secretary of State Colin Powell is gearing up for a mission to the Middle East. Powell will travel to the Palestinian territories and to Israel on Sunday and Monday. The State Department says Powell will focus on the Palestinian elections set for January.

In money news, CNN has learned of a business merger involving two big names in the retail market. Kmart and Sears department stores plan to merge by March of next year in an $11 billion deal.

And in culture, don't be surprised if you see David Lee Roth jumping out of a New York City ambulance. Yes, that David Lee Roth. The singer is training to become an emergency medical technician. He's been doing ride-along for the past several weeks. I love that story.

In sports, Red Sox fans beware. Ace pitcher Pedro Martinez and his agents met face-to-face with New York Yankees owner George Steinbrenner. Martinez is a free agent and has been offered a two year contract worth more than $25 million by the Red Sox.

To the forecast center and Chad.

CHAD MYERS, CNN METEOROLOGIST: Carol, after all of that "Who's your Daddy" stuff, could he really play for the Yankees?

COSTELLO: Oh, you're not kidding!

MYERS: Oh my!

(WEATHER REPORT)

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

Let's head down the street now and check in with Bill and Soledad for a look at what's coming up on "AMERICAN MORNING."

BILL HEMMER, CNN ANCHOR: I like the way that sounds, don't you?

COSTELLO: Oh, you're back!

SOLEDAD O'BRIEN, CNN ANCHOR: Down the street.

HEMMER: Down the street.

O'BRIEN: Hey, we've got to talk about getting together for lunch, you know, now that we're like blocks away.

COSTELLO: That would be terrific. Are you paying?

O'BRIEN: On my CNN corporate card.

HEMMER: No chance.

O'BRIEN: Yes, I am.

COSTELLO: I love how you think.

O'BRIEN: Good morning to you. This morning, we're talking about this big controversy -- you've been discussing it as well -- over "Monday Night Football." Well, not really the "Monday Night Football" part of it; more the steamy introduction. ABC is apologizing now just months after the Janet Jackson fiasco and the Super Bowl. This morning, we'll show you part of that controversial clip. We're going to also talk with media columnist Michael Wolf (ph) and "Sports Illustrated's" Josh Elliott about that.

HEMMER: Also, the Kobe Bryant matter continues today in Colorado. Why might the accuser want the civil trial in Bryant's home state of California instead? We'll talk to Linda Fairstein about that issue coming up this morning.

O'BRIEN: And we're talking about feeling no pain. This morning, we meet a little girl. She's got a rare disorder. Each and every day is very dangerous for her. We'll explain what her problem is and what we can do to help. That's ahead on "AMERICAN MORNING."

Carol -- we'll see you in a little bit.

COSTELLO: It sounds like a great show. Thank you.

A lot of you are having your morning coffee right now, but what we're about to tell you may make you set aside that cup of Joe and brew yourself some tea instead. You are watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: OK. We all know about an apple a day. But can a cup of tea a day cure a headache, aid digestion and actually burn fat? With tea becoming increasingly popular, we want to know the truth behind the tea.

Registered dietitian Lisa Drayer is here with me, and she has the answer in the bag.

This is really fascinating, because tea is supposed to be able to do so many things. But are any of the claims true? LISA DRAYER, REGISTERED DIETITIAN: Well, actually, Carol, according to Harvard researchers, there may be some truth to the theory that tea can help to fight colds and the flu.

Researchers at Brigham and Women's Hospital, they studied the immune systems of men and women before and after they started drinking black tea. So they drank about five to six small cups of black tea each day, about 20 ounces, for a period of two weeks, and they found that after the two-week period the individuals did have a boost in immunity. They actually had a greater ability to produce proteins that fight bacteria.

COSTELLO: Interesting. So it's black tea. You can't just drink an old cup of Lipton.

DRAYER: Well, actually the black tea was the one that was studied. But there is some growing research showing benefits of all types of tea. For example, green tea as well.

And, by the way, the researchers think that it's a special amino acid that's present only in tea, not in coffee or any other beverages. But green tea, we've talked a lot about this.

COSTELLO: Yes. Yes, tell me about green tea, because that's the one that's supposed to burn fat. In fact, I just heard the other day on "Oprah" that if you drink green tea instead of coffee you can actually lose six pounds a year.

DRAYER: Right. There are lots of body fat claims, weight-loss claims, with green tea. The reason is green tea has a chemical called EGCG, and it's been studied. They've actually extracted this chemical and found that it actually increases metabolism and burn rates. We do need to see a little bit more research.

But that's the main difference. That is that EGCG is the difference between green and black tea. It's present in green tea. Green tea doesn't undergo oxidation, meaning that it won't convert. Those chemicals won't convert to other beneficial antioxidants. But black tea may be just as beneficial. It just hasn't been studied as much.

COSTELLO: OK. I see something that I've never seen before, and that would be white tea.

DRAYER: Yes. White tea, also like green tea and black tea, comes from the leaves of the plant Camellia sinensis. That's what makes tea tea. But basically, white tea may actually have the most antioxidants out of all of the teas. So that's...

COSTELLO: So does it taste like water?

DRAYER: You know, I tried it last night, and actually it's a little bit mild. If you like a mild-taste, it tastes like water.

COSTELLO: Don't try to fool me. Chai tea, we hear a lot about Chai tea. DRAYER: Yes. Chai tea is actually black tea with spices and milk added to it. It actually originated in India. But in America, you'll usually find that Chai tea is a lot sweeter, because honey or sweeteners are added to it. Think about a Starbucks Chai latte, for example.

COSTELLO: Oh, yes, that's really good. I do like that. Celestial Seasonings. That always makes me feel like I'm like wow-mad in another world when I read the labels.

DRAYER: That's right. Right. This is actually an example of an herbal tea. And believe it or not, herbal tea is not really tea. And the reason is the tea -- there are no tea leaves that come from that plant, Camellia sinensis. So it's basically a blend of herbs. But you're not actually getting the beneficial compounds that you would find in black tea or green tea.

COSTELLO: But can it help me sleep?

DRAYER: It may if some of the herbs in them can help relax you. But you do want to be careful, because some of these herbal teas incorporate health claims. Like, for example, this one reducing stress. Some of them have herbs in them, like kava. At high levels, it can be dangerous. So you just want to be careful.

You see a lot of different health claims. This one promotes pregnancy. This one helps to fight PMS.

COSTELLO: Oh, come on!

DRAYER: Right. Remember we talked about the cereals with these structure function claims? They're not proven. But what manufacturers do is they categorize them as dietary supplements. So they don't have to prove that their ingredients are safe or that they work. So there is really no way to tell you. You have to be careful.

COSTELLO: So if you want to become pregnant, it's probably, like, it won't help you if you drink that tea, or maybe it will psychologically. You never know.

DRAYER: Maybe psychologically, but I'm not sure of more than that.

COSTELLO: OK. So I think we should drink green tea instead of coffee to see if we really do lose six -- not that you need to lose six pounds. I mean, it would be an interesting experiment.

DRAYER: It would be. But the caffeine content actually is much less. So if you're looking for that caffeine boost, green tea has about 25 milligrams per six-ounce cup. Usually a cup of caffeinated coffee has at least 80 milligrams.

COSTELLO: Whew!

DRAYER: So that's more than double. So don't count on it for a morning jolt. COSTELLO: Thank you, Lisa. Interesting information this morning.

We'll be right back. This is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Chad, are you having turkey for Thanksgiving this year? Are you going to cook it?

MYERS: Carol, whatever I cook is what we're having, because my wife is due before then. So she won't be cooking.

COSTELLO: No, and that's a good thing that you're nicely going to cook for her.

MYERS: I will.

COSTELLO: I would come and yell at you if you weren't going to do that.

Anyway, we want to talk about one lucky bird. Here he is. This is Clyde the turkey. He was officially pardoned by the Alabama governor. This is a tradition, as you know.

MYERS: It seems early to pardon the turkey to me. Shouldn't you pardon him at the 11th hour?

COSTELLO: Well, Christmas decorations are already out, so maybe, like, we're celebrating Thanksgiving earlier and earlier, too. I don't know.

This is Clyde in his patriotic suit. He'll spend the holiday outside with some lady friends instead, of course, inside of an oven.

(BEGIN VIDEO CLIP)

GOV. BOB RILEY (R), ALABAMA: Now in compliance with the authority vested in the governor of the state of Alabama by the constitution and the laws of the state of Alabama to grant pardons to Thanksgiving turkeys, it is ordered that a pardon be granted to the above-named as a result of the above-stated convictions. And it is further ordered that all barnyard rights which were forfeited as a result of the afore-said conviction be thee are hereby restored.

(END VIDEO CLIP)

COSTELLO: Oh, I'm so happy, Chad, that all of his barnyard rights were restored.

MYERS: Maybe I'll be having a garden burger or something, Carol.

COSTELLO: Now you're feeling guilty.

MYERS: I am kind of feeling guilty. COSTELLO: Yes, the Alabama turkey tradition, by the way, dates back to 1949. And as you probably know, President Truman started pardoning turkeys at the White House in 1947. And this morning, President Bush will continue that tradition. CNN will have live coverage of the president, the turkey and all of the trimmings beginning at 10:10 a.m. Eastern.

That does it for us. "AMERICAN MORNING" starts right now.

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 November 17, 2004 - 06:30   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. Welcome to DAYBREAK. There is a lot going on this morning, and that is no understatement. Here are the latest headlines for you now.
Russian President Vladimir Putin says Russia is developing a new type of nuclear missile unlike those held by other countries. Russian News Agency quotes him as saying the new weapons will be put into service within the next few years.

And there's also this: Is Iran secretly developing nuclear weapons? This morning, an Iranian opposition group says the country has a secret weapons facility in the capital, Tehran. The group says it has satellite photos to back up its claim.

Also in Iraq, the U.S. military says the northern city of Mosul is mostly calm this morning. This is the second day of a stepped-up offensive aimed at securing Mosul from insurgents.

And CNN has learned of a business merger involving two big names in the retail market. Sears and Kmart department stores plan to merge by March of next year in an $11 billion deal. We'll have more of this live from the Nasdaq in just a second.

And traffic is moving again along Interstate 35 at the Texas- Oklahoma state line. The highway was closed for several hours after a 25 car pileup. Three people were taken to area hospitals.

(WEATHER REPORT)

COSTELLO: Word just coming into us. There are reports this morning that Sears and Kmart will merge by March of 2005, and it's a whopper of a deal, $11 billion.

Joining us with more on this is CNN's Carrie Lee. She's live at the Nasdaq Marketsite.

Tell us more -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Well, this is official, Carol. The companies have announced it.

Sears Roebuck and Kmart merging, as you said, in an $11 billion stock deal, combining two big retailers that have both lost ground in competition with the discounters in recent years. The new company is going to be called Sears Holding Corporation -- Holdings, plural, Corporation, and be based at Sears' current headquarters in Chicago. Both names will be continued to be used on the stores. Now, the deal is advertised as a merger of equals, but details suggest it's slightly tilted towards a Kmart purchase of Sears.

If you're a Sears shareholder, then you're going to be able to choose between $50 in cash or half a share in the new Sears company, the stock valued at about $50.61. If you're a Kmart shareholder, you're going to get one share of Sears Holdings for each of your shares. Kmart shares yesterday closing at $101.22, Sears closing at 45.20.

So a little bit of a premium for the Sears shares, a premium of about 10 to 12 percent. Kmart shareholders, though, will see maybe no premium or maybe even a slightly lower value. So a very big deal for retailers, Carol.

COSTELLO: Boy!

LEE: It will be very interesting to see what these stocks do today.

COSTELLO: Oh, you're not kidding! I know that this is breaking news, and we don't know much. But is there any word on how it might change the merchandise in either store?

LEE: You know, it's interesting. It seems like Sears and Kmart, we know they've both been losing ground. We know Martha Stewart's items have been a strong point within Kmart. It seems like they just want to kind of combine and become a stronger entity. Who knows? Maybe they're going to weed through some of their weaker selling units, weaker selling items, take the strength within both stores and hopefully bring those two together. And, of course, they'll get some economies of scale as far as maybe back-office work and things like that.

So it's going to be a very interesting day for these companies in terms of stock price, but certainly a very big deal. This is going to become the nation's third-largest retailer, by the way -- Carol.

COSTELLO: It's planned to take place in March of 2005.

LEE: That's right.

COSTELLO: Carrie Lee live at the Nasdaq Marketsite, thank you.

New claims this morning that Iran is trying to develop nuclear weapons. An Iranian opposition group is releasing satellite photos. They did that this morning. They allegedly show a secret nuclear weapons research facility in Tehran. Take a look at the pictures now.

A satellite picture of the site taken in August of 2003 shows various buildings. But in a picture taken about seven months later -- here it is -- you see the buildings are gone. The group says the whole nuclear facility was moved to a new site to evade U.N. inspectors. These images, we have to tell you, have not been independently confirmed, but a Washington business consultant with ties to the opposition group says Iran is lying to the U.N. Nuclear Agency.

(BEGIN VIDEO CLIP)

ALI SAFAVI, BUSINESS CONSULTANT: It demonstrates, I think, before anything else, that despite its claims, its claims of cooperation with the IAEA, the Iranian regime is continuing its clandestine nuclear weapons program in defiance of its international obligations.

(END VIDEO CLIP)

COSTELLO: Iran's top nuclear negotiator tells CNN the claims are false and politically motivated. We'll have much more on this throughout the day on CNN.

The Iran nuclear controversy is one of the many major international issues Condoleezza Rice will have to tackle, if and when she becomes secretary of state. President Bush is urging the Senate to quickly confirm Rice. The president named his national security chief to succeed Colin Powell as the nation's top diplomat. Rice is one of the president's closest confidantes.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Condi Rice is already known to all Americans and to much of the world. During the last four years, I've relied on her counsel, benefited from her great experience, and appreciated her sound and steady judgment. And now I'm honored she has agreed to serve in my cabinet.

The secretary of state is America's face to the world, and in Dr. Rice the world will see the strength, the grace and the decency of our country.

(END VIDEO CLIP)

COSTELLO: Other cabinet changes could lie ahead. There's also word that Homeland Security Secretary Tom Ridge could be the next one to resign, although the administration has denied those reports.

Reporters get a sneak peek this morning at Bill Clinton's presidential library in Little Rock, Arkansas. The grand opening is tomorrow. President Bush, his father and former President Jimmy Carter will be on hand, and that's prompting a nearby company to remind workers to keep their guns at home. You see, it's deer hunting season in Arkansas, and some hunters keep their guns in their cars so they can dash to the woods right after work.

As the military investigates what happened at a Falluja mosque last Saturday, the incident continues to get heavy media attention. Up next, we'll take a look at how Arab television networks are portraying this story.

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

(COMMERCIAL BREAK)

COSTELLO: The story of the Marine killing -- the story of a Marine killing a wounded Iraqi is the top story on Arab television. It's being played out against the backdrop of what Arab journalists call censorship.

As you may know, Al-Jazeera has been banned from live reporting in Iraq, and U.S. forces arrested a correspondent from Al Arabiya without explanation.

With us now, our senior editor of Arab affairs, Octavia Nasr.

Good morning -- Octavia.

OCTAVIA NASR, CNN SENIOR EDITOR, ARAB AFFAIRS: Good morning, Carol.

COSTELLO: Octavia, during the active combat phase of the war, Arab correspondents were allowed to be embedded with U.S. troops. Not so now. How is that coloring Arab TV coverage?

NASR: Well, it's a very important story for Arab networks. Al- Jazeera, for example, keeps apologizing to their viewers, saying that we cannot bring you the story from the battlefield because we are banned from reporting there. Al Arabiya, as you mentioned, are playing high the fact their correspondent in Falluja was arrested last Thursday and with no explanation and no hope for his release.

These are the images that are playing on Arab networks. You see how they have these arrows pointing to the difference between day one and day two when the Marines went into that mosque. They're really detailing step by step what's happened there, explaining who got killed the first day, who was injured, how the Marines behaved. They're really playing the story very high on their newscasts.

COSTELLO: And in...

NASR: It's definitely a big story for them.

COSTELLO: In that case, we're talking about the Marine who shot the insurgent inside of that mosque in Falluja. The interesting thing is Margaret Hassan, the international CARE worker, was allegedly murdered on videotape. Are they showing that tape as well as this tape from inside that mosque?

NASR: No. Al-Jazeera is the one who are playing the tape of who they believe is Margaret Hassan. They couldn't confirm for sure. The family believes it is her also.

They didn't show the tape, they said, because it's too graphic. They are showing this one, and they're showing it over and over again in headlines, in voice-overs, over commentary. It's all over the place. They're showing it. Like I said, they're also showing arrows pointing, circling the shooting event. This one is playing out uncut, just as they got it.

Of course, Western media, especially when you look at CNN, we exercise a lot of sensitivity to the video and to the feelings of viewers and those involved in the video. So we don't run the video as is. But on Arab networks it's the whole thing is shown.

COSTELLO: All right, Octavia Nasr live from Atlanta this morning, thank you.

Your news, money, weather and sports. It's 6:43 Eastern. Here's what's all new this morning.

An Iranian opposition group says Iran is lying to U.N. nuclear inspectors. This morning, the group says it has evidence Iran is harboring a secret nuclear weapons research facility.

Secretary of State Colin Powell is gearing up for a mission to the Middle East. Powell will travel to the Palestinian territories and to Israel on Sunday and Monday. The State Department says Powell will focus on the Palestinian elections set for January.

In money news, CNN has learned of a business merger involving two big names in the retail market. Kmart and Sears department stores plan to merge by March of next year in an $11 billion deal.

And in culture, don't be surprised if you see David Lee Roth jumping out of a New York City ambulance. Yes, that David Lee Roth. The singer is training to become an emergency medical technician. He's been doing ride-along for the past several weeks. I love that story.

In sports, Red Sox fans beware. Ace pitcher Pedro Martinez and his agents met face-to-face with New York Yankees owner George Steinbrenner. Martinez is a free agent and has been offered a two year contract worth more than $25 million by the Red Sox.

To the forecast center and Chad.

CHAD MYERS, CNN METEOROLOGIST: Carol, after all of that "Who's your Daddy" stuff, could he really play for the Yankees?

COSTELLO: Oh, you're not kidding!

MYERS: Oh my!

(WEATHER REPORT)

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

Let's head down the street now and check in with Bill and Soledad for a look at what's coming up on "AMERICAN MORNING."

BILL HEMMER, CNN ANCHOR: I like the way that sounds, don't you?

COSTELLO: Oh, you're back!

SOLEDAD O'BRIEN, CNN ANCHOR: Down the street.

HEMMER: Down the street.

O'BRIEN: Hey, we've got to talk about getting together for lunch, you know, now that we're like blocks away.

COSTELLO: That would be terrific. Are you paying?

O'BRIEN: On my CNN corporate card.

HEMMER: No chance.

O'BRIEN: Yes, I am.

COSTELLO: I love how you think.

O'BRIEN: Good morning to you. This morning, we're talking about this big controversy -- you've been discussing it as well -- over "Monday Night Football." Well, not really the "Monday Night Football" part of it; more the steamy introduction. ABC is apologizing now just months after the Janet Jackson fiasco and the Super Bowl. This morning, we'll show you part of that controversial clip. We're going to also talk with media columnist Michael Wolf (ph) and "Sports Illustrated's" Josh Elliott about that.

HEMMER: Also, the Kobe Bryant matter continues today in Colorado. Why might the accuser want the civil trial in Bryant's home state of California instead? We'll talk to Linda Fairstein about that issue coming up this morning.

O'BRIEN: And we're talking about feeling no pain. This morning, we meet a little girl. She's got a rare disorder. Each and every day is very dangerous for her. We'll explain what her problem is and what we can do to help. That's ahead on "AMERICAN MORNING."

Carol -- we'll see you in a little bit.

COSTELLO: It sounds like a great show. Thank you.

A lot of you are having your morning coffee right now, but what we're about to tell you may make you set aside that cup of Joe and brew yourself some tea instead. You are watching DAYBREAK.

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COSTELLO: OK. We all know about an apple a day. But can a cup of tea a day cure a headache, aid digestion and actually burn fat? With tea becoming increasingly popular, we want to know the truth behind the tea.

Registered dietitian Lisa Drayer is here with me, and she has the answer in the bag.

This is really fascinating, because tea is supposed to be able to do so many things. But are any of the claims true? LISA DRAYER, REGISTERED DIETITIAN: Well, actually, Carol, according to Harvard researchers, there may be some truth to the theory that tea can help to fight colds and the flu.

Researchers at Brigham and Women's Hospital, they studied the immune systems of men and women before and after they started drinking black tea. So they drank about five to six small cups of black tea each day, about 20 ounces, for a period of two weeks, and they found that after the two-week period the individuals did have a boost in immunity. They actually had a greater ability to produce proteins that fight bacteria.

COSTELLO: Interesting. So it's black tea. You can't just drink an old cup of Lipton.

DRAYER: Well, actually the black tea was the one that was studied. But there is some growing research showing benefits of all types of tea. For example, green tea as well.

And, by the way, the researchers think that it's a special amino acid that's present only in tea, not in coffee or any other beverages. But green tea, we've talked a lot about this.

COSTELLO: Yes. Yes, tell me about green tea, because that's the one that's supposed to burn fat. In fact, I just heard the other day on "Oprah" that if you drink green tea instead of coffee you can actually lose six pounds a year.

DRAYER: Right. There are lots of body fat claims, weight-loss claims, with green tea. The reason is green tea has a chemical called EGCG, and it's been studied. They've actually extracted this chemical and found that it actually increases metabolism and burn rates. We do need to see a little bit more research.

But that's the main difference. That is that EGCG is the difference between green and black tea. It's present in green tea. Green tea doesn't undergo oxidation, meaning that it won't convert. Those chemicals won't convert to other beneficial antioxidants. But black tea may be just as beneficial. It just hasn't been studied as much.

COSTELLO: OK. I see something that I've never seen before, and that would be white tea.

DRAYER: Yes. White tea, also like green tea and black tea, comes from the leaves of the plant Camellia sinensis. That's what makes tea tea. But basically, white tea may actually have the most antioxidants out of all of the teas. So that's...

COSTELLO: So does it taste like water?

DRAYER: You know, I tried it last night, and actually it's a little bit mild. If you like a mild-taste, it tastes like water.

COSTELLO: Don't try to fool me. Chai tea, we hear a lot about Chai tea. DRAYER: Yes. Chai tea is actually black tea with spices and milk added to it. It actually originated in India. But in America, you'll usually find that Chai tea is a lot sweeter, because honey or sweeteners are added to it. Think about a Starbucks Chai latte, for example.

COSTELLO: Oh, yes, that's really good. I do like that. Celestial Seasonings. That always makes me feel like I'm like wow-mad in another world when I read the labels.

DRAYER: That's right. Right. This is actually an example of an herbal tea. And believe it or not, herbal tea is not really tea. And the reason is the tea -- there are no tea leaves that come from that plant, Camellia sinensis. So it's basically a blend of herbs. But you're not actually getting the beneficial compounds that you would find in black tea or green tea.

COSTELLO: But can it help me sleep?

DRAYER: It may if some of the herbs in them can help relax you. But you do want to be careful, because some of these herbal teas incorporate health claims. Like, for example, this one reducing stress. Some of them have herbs in them, like kava. At high levels, it can be dangerous. So you just want to be careful.

You see a lot of different health claims. This one promotes pregnancy. This one helps to fight PMS.

COSTELLO: Oh, come on!

DRAYER: Right. Remember we talked about the cereals with these structure function claims? They're not proven. But what manufacturers do is they categorize them as dietary supplements. So they don't have to prove that their ingredients are safe or that they work. So there is really no way to tell you. You have to be careful.

COSTELLO: So if you want to become pregnant, it's probably, like, it won't help you if you drink that tea, or maybe it will psychologically. You never know.

DRAYER: Maybe psychologically, but I'm not sure of more than that.

COSTELLO: OK. So I think we should drink green tea instead of coffee to see if we really do lose six -- not that you need to lose six pounds. I mean, it would be an interesting experiment.

DRAYER: It would be. But the caffeine content actually is much less. So if you're looking for that caffeine boost, green tea has about 25 milligrams per six-ounce cup. Usually a cup of caffeinated coffee has at least 80 milligrams.

COSTELLO: Whew!

DRAYER: So that's more than double. So don't count on it for a morning jolt. COSTELLO: Thank you, Lisa. Interesting information this morning.

We'll be right back. This is DAYBREAK for a Wednesday morning.

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COSTELLO: Chad, are you having turkey for Thanksgiving this year? Are you going to cook it?

MYERS: Carol, whatever I cook is what we're having, because my wife is due before then. So she won't be cooking.

COSTELLO: No, and that's a good thing that you're nicely going to cook for her.

MYERS: I will.

COSTELLO: I would come and yell at you if you weren't going to do that.

Anyway, we want to talk about one lucky bird. Here he is. This is Clyde the turkey. He was officially pardoned by the Alabama governor. This is a tradition, as you know.

MYERS: It seems early to pardon the turkey to me. Shouldn't you pardon him at the 11th hour?

COSTELLO: Well, Christmas decorations are already out, so maybe, like, we're celebrating Thanksgiving earlier and earlier, too. I don't know.

This is Clyde in his patriotic suit. He'll spend the holiday outside with some lady friends instead, of course, inside of an oven.

(BEGIN VIDEO CLIP)

GOV. BOB RILEY (R), ALABAMA: Now in compliance with the authority vested in the governor of the state of Alabama by the constitution and the laws of the state of Alabama to grant pardons to Thanksgiving turkeys, it is ordered that a pardon be granted to the above-named as a result of the above-stated convictions. And it is further ordered that all barnyard rights which were forfeited as a result of the afore-said conviction be thee are hereby restored.

(END VIDEO CLIP)

COSTELLO: Oh, I'm so happy, Chad, that all of his barnyard rights were restored.

MYERS: Maybe I'll be having a garden burger or something, Carol.

COSTELLO: Now you're feeling guilty.

MYERS: I am kind of feeling guilty. COSTELLO: Yes, the Alabama turkey tradition, by the way, dates back to 1949. And as you probably know, President Truman started pardoning turkeys at the White House in 1947. And this morning, President Bush will continue that tradition. CNN will have live coverage of the president, the turkey and all of the trimmings beginning at 10:10 a.m. Eastern.

That does it for us. "AMERICAN MORNING" starts right now.

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