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CNN Live At Daybreak

Barrage of Mortar Rounds Lands in Iraqi Capital; Privacy in the Workplace

Aired December 02, 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: Smoke over Baghdad -- a barrage of mortar rounds lands in the Iraqi capital. Details for you in a minute.
Privacy in the workplace -- monitoring workers. Just how far can employers go?

And buying wine online and the legal entanglements. We'll pop the cork on this story later this hour.

It is Thursday, December 2.

You are watching DAYBREAK.

And good morning to you.

Thank you for waking up with us.

I'm Carol Costello along with Rob Marciano this morning.

Let's check the headlines right now.

Just a few hours ago, five mortar rounds hit in the heart of Baghdad, killing one person and wounding a dozen others. Among those wounded, eight people near the city's technical university.

Right now in Ukraine's capital of Kiev, the nation's supreme court is meeting. It's considering the legitimacy of the vote for president that has triggered a national crisis. We could have a decision some time today.

On his first day home from Canada, President Bush will focus today on the crisis in Sudan's Darfur region. He'll meet in the White House with Nigeria's president, who is chairman of the African Union.

Excuse me. I have a cold and I apologize for that.

Let's talk about the Scott Peterson trial. The father of Scott Peterson says his son was the perfect infant and a sunny and motivated teenager. The comments came on the second day of testimony in the penalty phase of Peterson's murder trial.

To the forecast center and Rob -- good morning.

ROB MARCIANO, CNN METEOROLOGIST: Carol, I'm a little concerned about you today. COSTELLO: Oh, I have such a nasty cold.

MARCIANO: You're kind of in a struggle this past -- a cold?

COSTELLO: Nasty, nasty cold.

MARCIANO: I'm sorry. Well, you -- your personal doctor is there helping you out, I suppose, this morning.

COSTELLO: Yes, he's right over there.

(WEATHER REPORT)

COSTELLO: More U.S. soldiers are being sent to Iraq. The Pentagon says they're needed to increase security there before the January elections. Here's how it breaks down. The 1,500 new troops are all coming from the Army's 82nd Airborne units at Fort Bragg. The Pentagon's also extending the stays of more than 10,000 U.S. forces already in Iraq. Those troops had been scheduled to return home next month.

To CNN's Nic Robertson now, who is embedded with soldiers from Alpha Company 321 in Mosul -- hello, Nic.

NIC ROBERTSON, CNN CORRESPONDENT: Hello, Carol.

Well, none of the soldiers here in Mosul appear to be affected in terms of having their rotations extended. And all the soldiers I talked to said that they weren't surprised to hear this. Really, the expectation here amongst the soldiers and officers is that getting close to the elections, the insurgents will try harder to destabilize the political process that's being pushed forward here.

And in Mosul in particular, they expect to get more trouble. Mosul is now seen as an area, a town that the insurgents are concentrating their activities on. According to the troops here, it's the second most important town in terms of potential insurgent activity inside Iraq.

They haven't heard if any of those additional numbers of troops may be coming here. They wouldn't, they say, again, that they wouldn't be surprised if that's the case.

Some of the officers I talked to, I said look, what would it be if it was your men that were being told to extend? And they say, look, we readily accept and expect that those soldiers who have been told to extend, that they will be disappointed. Many of them have been looking forward to going home. But the reality is every soldier I talk to on the ground here says this is the Army and if we get extended, that's just the way that it is. And everyone tells us the best way for them to get through the time here is just to be busy, and that makes the time pass very quickly, they say -- Carol.

COSTELLO: Pretty amazing people, Nic.

Exactly what are the troops that you're with doing? Can you tell us?

ROBERTSON: They're involved in operations in Mosul, trying to track down two different essential types of people here. Members of the, former members of the Baath Party, senior members, who are seen as intimidating the city's residents, as funding the insurgency here. And they're also trying to track down the insurgents themselves.

There is a belief here that the insurgents may be regrouping or trying to gain strength in the city of Mosul, that there's no physical evidence yet to see that that's happening. Ongoing, there is ongoing sporadic mortarings of the various U.S. bases inside the city of Mosul. But the general expectation here is, is that they're going to have to continue what is often many overnight operations, trying to track down the insurgents, trying to deny them the positions to fire their mortars from, trying to catch their key ringleaders.

But they are preparing, they say, the expectation for an upsurge in trouble as the elections come closer -- Carol.

COSTELLO: Nic Robertson reporting live from Mosul this morning.

The soldier who's been called the poster child of Abu Ghraib prisoner abuse scandal is due back in military court this morning. The second day of Army Private Lynndie England's hearing and those infamous photographs are at the heart of the proceedings so far.

CNN's Susan Candiotti brings you up to date.

(BEGIN VIDEO TAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): Slimmed down after giving birth, Private First Class Lynndie England came to court without her mother, who stayed behind to baby-sit the young soldier's seven-week-old baby boy. In a final round of pretrial hearings before next month's court martial, England's lawyers went for broke, asking a judge to throw out photos seen round the world -- England, holding a prisoner by a leash; England pointing to the private parts of a row of naked Iraqi detainees; England smiling behind a human pyramid of Iraqi prisoners.

Her lawyers also asked a judge to disallow three sworn statements England made discussing alleged abuse. That could be a hard sell. Investigators testified when England was first questioned about Abu Ghraib Prison, she was read her rights and did not request a lawyer.

The arguments over the now notorious photos were delayed until Thursday. If England loses on both issues, that could ratchet up pressure on her to consider a guilty plea to avoid a much longer sentence.

(on camera): Four others have already pleaded guilty in the Abu Ghraib scandal. The longest sentence went to the highest ranking enlisted man, eight years. But the young mother from West Virginia could face as much as 38 years in prison if she stands trial next month and is convicted.

Susan Candiotti, CNN, Fort Bragg, North Carolina.

(END VIDEO TAPE)

COSTELLO: Army Sergeant Hassan Akbar is facing a pretrial hearing, as well, at Fort Bragg today. Akbar is accused of attacking several other soldiers in Kuwait. You may remember this particular case. At least three grenades were thrown into tents at Camp Pennsylvania, a staging camp for troops going into Iraq. The sergeant was arrested following this grenade attack. Two soldiers were killed, more than a dozen wounded.

At Ladder Company 61 in the Bronx, a memorial for the first New York City firefighter to die in Iraq. Chris Engledrum, "Drum" to his friends, was serving with the Army National Guard. He was killed in Baghdad on Monday when his Humvee rolled over an explosive. "Drum" was 39 years old.

We now know who will serve on the World Trade Center Memorial Foundation's board of directors. New York Governor George Pataki says the board will have three dozen members. Civic leaders, CEOs and celebrities will serve, as will seven relatives of the victims of the September attacks.

(BEGIN VIDEO CLIP)

GOV. GEORGE PATAKI (R), NEW YORK: We can never stop forgetting that the most important thing we have to do there is honor the memory of those who died on September 11, reflection the courage of those who responded on that day and be able to tell that story as best we can, not just to those of us who are here today, but to those who will be coming decades and generations from now.

(END VIDEO CLIP)

COSTELLO: A revised design for the memorial will be unveiled in two weeks.

In other stories across America this Thursday, NBC Sports Chief Dick Ebersol says his charter jet struggled just 20 feet into the air before it fell back to the runway and broke apart. That's according to aviation officials. Ebersol's 14-year-old son and two crew members were killed in Sunday's crash in Colorado. Ebersol was pulled from the wreckage by another son. The plane's co-pilot survived.

Condemned killer Frances Newton had two hours before her death sentence was to be carried out when the governor of Texas decided to stay her execution. Newton is on death row for the murders of her husband and children.

(BEGIN VIDEO CLIP)

PAMELA NELMS, NEWTON'S SISTER: This is indescribable. Joy, unspeakable joy, that's what it is.

QUESTION: You believed in her innocence? NELMS: All the time. All the time. Not just because she's my sister, but you can't kill your family and have the kind of peace that she has.

(END VIDEO CLIP)

COSTELLO: The execution has been put off for 120 days to allow authorities to do some more testing on some evidence.

In Florida, authorities are investigating the clinic at the center of a possible Botox scare. Four people who received injections at an Oakland Park clinic are hospitalized with suspected botulism poisoning. The California company that makes Botox says the two vials it sold to the Florida clinic came from batches that tested normal.

Coming up, when sports fans and cell phone users unite -- a new service may attract viewers like you. At least that's one hope for the industry.

Then, privacy in the office -- your messages probably aren't as secretive as you think.

Like it or not, they're going on the block. The controversy over an art auction set for today.

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Time now for a little "Business Buzz."

So you missed last night's game? Instead of calling your buddy with highlights, here's a way you can get connected to the source.

Carrie Lee is live at the Nasdaq market site -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

A bold move here. ESPN getting into the cell phone game. The sports network plans to offer its very own cell phone service, called ESPN Mobile. It's going to give sports fans wireless service directly, offering people things like sports headlines, audio and video, photos; also, ring tones. A bold move because ESPN, of course, has sports news experience, but doesn't have any experience with phones. So this deal is going to be the first of its kind.

ESPN is stemmed -- the idea stems from Walt Disney, which owns ESPN. It could be the first in this cell phone branding line. We'll see if other companies do this sort of thing going forward.

But certainly an interesting idea. It could be a big gamble, of course, Carol, because most people already have a cell phone. But we'll see if the idea takes off. COSTELLO: You never know.

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.

At least five mortar rounds landed in central Baghdad just about three hours ago. One person killed. At least seven others were injured, eight of those students at a technical college.

Gunfire in the presidential palace in Port-Au-Prince, Haiti. It came will Secretary of State Colin Powell was meeting with Haitian officials. Powell is calling for more U.N. troops in Haiti.

Excuse me. I apologize once again.

In money news, U.S. crude oil prices have steadied, but they're still above $45 a barrel. Prices have tumbled more than $3 after a big increase in heating oil supplies.

In culture, it will be all over when the fat man sings. Luciano Pavarotti says he will bring down the curtain on a 43-year career with a 40 city international tour. The concert schedule isn't final yet, though.

In sports, the Detroit Pistons have banned two men from the Palace for their involvement in last month's brawl. One of the men is accused of throwing a cup at Pacers' forward Ron Artest.

To the forecast center and Rob -- good morning.

MARCIANO: Good morning, Carol.

A familiar video from the past couple of weeks.

(WEATHER REPORT)

COSTELLO: Oh, more importantly, though, the Christmas tree in Washington, D.C. is expected to be lit at 5:00 p.m. Eastern. So, Rob, what's the weather going to be like?

MARCIANO: Looking pretty good today. It'll be a little bit breezy, but dry. And it's always a grand tradition up there.

COSTELLO: Oh, it absolutely is. The president comes out to the Ellipse and lights the beautiful tree and all the local news stations carry it live. And, of course, CNN will, too.

MARCIANO: Excellent. Yes. The weather is not going to be a problem. Everybody can enjoy it. COSTELLO: Oh, 11,000 tiny lights will glow thanks to you, Rob. Yes, right.

MARCIANO: Nice to have you back, Carol.

COSTELLO: Oh, yes.

Think you're all alone in that cubical every day? Guess again. Big Brother is right there with you, as you control, alt, delete. A look at privacy in the workplace that you won't want to miss.

And don't click on that cabernet just yet. Ordering wine online still a tricky business.

You're watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Here's looking at you, kid. Those security cameras are your workplace, are they just there to prevent theft or are they just making sure you're not goofing off?

Technology correspondent Daniel Sieberg takes a look at who might be watching you.

(BEGIN VIDEO TAPE)

DANIEL SIEBERG, CNN CORRESPONDENT (voice-over): Ever wonder if your boss is spying on you? Well, Bill Bartlett had more than a sneaking suspicion when a camera was installed literally over his shoulder at a cell phone retail shop.

BILL BARTLETT, FORMER KIOSK EMPLOYEE: I felt it was intrusive in nature. I felt like I was being harassed, actually. I received a phone call from my son on Father's Day to wish me a happy Father's Day.

Do you know if Danny is calling to arrange, too?

And I saw the camera zooming on me to see what it is that I was doing.

SIEBERG (on camera): And did you have any sort of gut reaction at various times of the day?

BARTLETT: It was so close to me that I actually found myself kind of running around the kiosk hiding from it. And it was so close to me that I had to kind of restrain myself from actually knocking it off the attachment. When I approached the owners and management in regard, I was told to deal with it or to leave. So I left.

SIEBERG (voice-over): When contacted by CNN, the kiosk owner stated that the camera was installed to protect both the company and its employees from theft and liability.

BARTLETT: I'm a proud worker. I do my job to the best of my ability. But I think there should be some guidelines.

SIEBERG (on camera): What would you tell your son when he grows up about working in a situation like you were in?

BARTLETT: Well, do whatever you can to protect your civil liberties, you know? I felt it was intrusive.

SIEBERG: Bill's situation happened to take place here in this mall, but you could be watched while you're sitting at your cubicle, talking on the phone, surfing the Web. And while some employees aren't quitting their job, they are fighting back using technology, even if it means they could get fired.

(voice-over): Computer programs like Anonymizer are now available. They claim to shield users from monitoring software. One called X Cleaner even claims to anti-spy your boss.

DOUG ISENBERG, FOUNDER, GIGILAW.COM: You install it at your own risk.

SIEBERG: Doug Isenberg is an Internet lawyer and founder of Gigilaw.com.

(on camera): Are you familiar with some employees who have decided to fight back or decided to quit or are just really fed up with this amount of monitoring, be it necessary or not?

ISENBERG: The very act of installing that software might violate a company's Internet or computer usage policy.

SIEBERG: Because a lot of employees maybe say, you know, I spend a lot of overtime working for the company, maybe they don't get paid for it, you know, I'm here early, I leave late, I've got kids to worry about, I've got bills to pay. I just don't have time to do all these things. I have to do them at work.

ISENBERG: And that's why a lot of employers will tolerate a reasonable amount of personal computer use. The employer may learn that its employees are using e-mail for personal reasons and choose to do nothing about it because it keeps the employees happy. And that should be tolerated.

SIEBERG: Although most employers do have a written monitoring policy in place, experts say many companies still do not do a good enough job of informing employees about those guidelines.

NANCY FLYNN, THE EPOLICY INSTITUTE: Some employers will monitor telephone conversations. Some employers have installed cameras and other security devices. And other employers are monitoring computer activity. Let your employees know what you're doing when it comes to monitoring and let them know why you're doing it.

SIEBERG: According to a recent American Management Association survey, 90 percent of employees say they use company resources for some personal use. Over 60 percent of employers monitor their workers' computer usage and 25 percent of U.S. businesses have fired an employee for e-mail abuse alone.

FLYNN: Most employees tend to think my e-mail is my business. My employer has no right to read my e-mail messages, particularly if it's a message to a friend or a family member. But in reality, here in the U.S., the federal government gives employers the right to monitor all employee e-mail, instant messaging and Internet activity.

SIEBERG: Ultimately, experts say companies need to find a balance between clamping down too hard and lowering employee morale and mitigating any legal hot water.

(END VIDEO TAPE)

SIEBERG: All right, I know what many of you might be thinking. You work for a huge company, how could they possibly monitor every one and everything? Well, the Orwellian image of your boss watching every line of e-mails, every word in a phone conversation in real time likely isn't practical. But, just because they're not watching every word, doesn't mean they're not recording it forever. Remember that nothing is truly deleted in the digital age. You could raise a red flag for some reason and they could go back and check on your history -- Carol.

COSTELLO: That just strikes me as so sick. I mean I understand you want to watch your employees to see if they're doing something wrong or abusing the system or their e-mails are going onto porn Web sites or something. But is it really necessary to watch their every move?

SIEBERG: Well, this is a tough story. You can almost see both sides in this case, because, you know, you want to watch your employees to make sure they're doing the right thing. On the legal side, though, companies could be liable, say, for a sexual harassment case or for someone who illegally downloads music. So they have a vested interest in protecting their bottom line, too.

COSTELLO: It always comes down to that doesn't it, Daniel?

SIEBERG: Yes, it does.

COSTELLO: The bottom line.

SIEBERG: It always does.

COSTELLO: Daniel Sieberg, thank you.

SIEBERG: Thank you.

COSTELLO: He went in looking like his usual self and came out looking, well, different. An unusual story about the politics of appearances and the man who wants to be president of Ukraine.

Plus, our hot topics this morning, the 9/11 reform bill. The president is home from Canada. Now it's time to put on his lobbying hat. But will he?

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you.

Thank you for waking up with us.

I'm Carol Costello with Rob Marciano this morning.

Let's check the headlines for you now.

Explosions rock central Baghdad this morning. One person killed, a dozen wounded. You're looking at video just into us. We got this in about two hours. This is from one of the blast sites. Police say the explosions were caused by at least five mortar rounds.

Fifteen hundred U.S. troops are getting the call-up from the Pentagon. They're being told they'll soon be heading to Iraq. The government is also extending the stays of more than 10,000 other U.S. forces already there.

The man who stabbed Sweden's foreign minister to death last year will be jailed for life. That's the ruling from Sweden's Supreme Court. It overturned an appeals court ruling that would have sent the confessed killer to a mental hospital.

Excuse me.

Residents of the eastern Philippines are getting battered by a powerful typhoon. This one comes after another typhoon killed 420 people. More than 160,000 people have sought refuge from this latest storm, which has winds of up to 150 miles per hour.

To the forecast center and Rob in for Chad today -- good morning.

MARCIANO: You know how we have hurricane seasons, the one that just actually ended officially? That part of the world has typhoon pretty much year round.

COSTELLO: Oh.

MARCIANO: So it's -- and they're obviously getting one right after the other. A super typhoon coming now.

(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 December 2, 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: Smoke over Baghdad -- a barrage of mortar rounds lands in the Iraqi capital. Details for you in a minute.
Privacy in the workplace -- monitoring workers. Just how far can employers go?

And buying wine online and the legal entanglements. We'll pop the cork on this story later this hour.

It is Thursday, December 2.

You are watching DAYBREAK.

And good morning to you.

Thank you for waking up with us.

I'm Carol Costello along with Rob Marciano this morning.

Let's check the headlines right now.

Just a few hours ago, five mortar rounds hit in the heart of Baghdad, killing one person and wounding a dozen others. Among those wounded, eight people near the city's technical university.

Right now in Ukraine's capital of Kiev, the nation's supreme court is meeting. It's considering the legitimacy of the vote for president that has triggered a national crisis. We could have a decision some time today.

On his first day home from Canada, President Bush will focus today on the crisis in Sudan's Darfur region. He'll meet in the White House with Nigeria's president, who is chairman of the African Union.

Excuse me. I have a cold and I apologize for that.

Let's talk about the Scott Peterson trial. The father of Scott Peterson says his son was the perfect infant and a sunny and motivated teenager. The comments came on the second day of testimony in the penalty phase of Peterson's murder trial.

To the forecast center and Rob -- good morning.

ROB MARCIANO, CNN METEOROLOGIST: Carol, I'm a little concerned about you today. COSTELLO: Oh, I have such a nasty cold.

MARCIANO: You're kind of in a struggle this past -- a cold?

COSTELLO: Nasty, nasty cold.

MARCIANO: I'm sorry. Well, you -- your personal doctor is there helping you out, I suppose, this morning.

COSTELLO: Yes, he's right over there.

(WEATHER REPORT)

COSTELLO: More U.S. soldiers are being sent to Iraq. The Pentagon says they're needed to increase security there before the January elections. Here's how it breaks down. The 1,500 new troops are all coming from the Army's 82nd Airborne units at Fort Bragg. The Pentagon's also extending the stays of more than 10,000 U.S. forces already in Iraq. Those troops had been scheduled to return home next month.

To CNN's Nic Robertson now, who is embedded with soldiers from Alpha Company 321 in Mosul -- hello, Nic.

NIC ROBERTSON, CNN CORRESPONDENT: Hello, Carol.

Well, none of the soldiers here in Mosul appear to be affected in terms of having their rotations extended. And all the soldiers I talked to said that they weren't surprised to hear this. Really, the expectation here amongst the soldiers and officers is that getting close to the elections, the insurgents will try harder to destabilize the political process that's being pushed forward here.

And in Mosul in particular, they expect to get more trouble. Mosul is now seen as an area, a town that the insurgents are concentrating their activities on. According to the troops here, it's the second most important town in terms of potential insurgent activity inside Iraq.

They haven't heard if any of those additional numbers of troops may be coming here. They wouldn't, they say, again, that they wouldn't be surprised if that's the case.

Some of the officers I talked to, I said look, what would it be if it was your men that were being told to extend? And they say, look, we readily accept and expect that those soldiers who have been told to extend, that they will be disappointed. Many of them have been looking forward to going home. But the reality is every soldier I talk to on the ground here says this is the Army and if we get extended, that's just the way that it is. And everyone tells us the best way for them to get through the time here is just to be busy, and that makes the time pass very quickly, they say -- Carol.

COSTELLO: Pretty amazing people, Nic.

Exactly what are the troops that you're with doing? Can you tell us?

ROBERTSON: They're involved in operations in Mosul, trying to track down two different essential types of people here. Members of the, former members of the Baath Party, senior members, who are seen as intimidating the city's residents, as funding the insurgency here. And they're also trying to track down the insurgents themselves.

There is a belief here that the insurgents may be regrouping or trying to gain strength in the city of Mosul, that there's no physical evidence yet to see that that's happening. Ongoing, there is ongoing sporadic mortarings of the various U.S. bases inside the city of Mosul. But the general expectation here is, is that they're going to have to continue what is often many overnight operations, trying to track down the insurgents, trying to deny them the positions to fire their mortars from, trying to catch their key ringleaders.

But they are preparing, they say, the expectation for an upsurge in trouble as the elections come closer -- Carol.

COSTELLO: Nic Robertson reporting live from Mosul this morning.

The soldier who's been called the poster child of Abu Ghraib prisoner abuse scandal is due back in military court this morning. The second day of Army Private Lynndie England's hearing and those infamous photographs are at the heart of the proceedings so far.

CNN's Susan Candiotti brings you up to date.

(BEGIN VIDEO TAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): Slimmed down after giving birth, Private First Class Lynndie England came to court without her mother, who stayed behind to baby-sit the young soldier's seven-week-old baby boy. In a final round of pretrial hearings before next month's court martial, England's lawyers went for broke, asking a judge to throw out photos seen round the world -- England, holding a prisoner by a leash; England pointing to the private parts of a row of naked Iraqi detainees; England smiling behind a human pyramid of Iraqi prisoners.

Her lawyers also asked a judge to disallow three sworn statements England made discussing alleged abuse. That could be a hard sell. Investigators testified when England was first questioned about Abu Ghraib Prison, she was read her rights and did not request a lawyer.

The arguments over the now notorious photos were delayed until Thursday. If England loses on both issues, that could ratchet up pressure on her to consider a guilty plea to avoid a much longer sentence.

(on camera): Four others have already pleaded guilty in the Abu Ghraib scandal. The longest sentence went to the highest ranking enlisted man, eight years. But the young mother from West Virginia could face as much as 38 years in prison if she stands trial next month and is convicted.

Susan Candiotti, CNN, Fort Bragg, North Carolina.

(END VIDEO TAPE)

COSTELLO: Army Sergeant Hassan Akbar is facing a pretrial hearing, as well, at Fort Bragg today. Akbar is accused of attacking several other soldiers in Kuwait. You may remember this particular case. At least three grenades were thrown into tents at Camp Pennsylvania, a staging camp for troops going into Iraq. The sergeant was arrested following this grenade attack. Two soldiers were killed, more than a dozen wounded.

At Ladder Company 61 in the Bronx, a memorial for the first New York City firefighter to die in Iraq. Chris Engledrum, "Drum" to his friends, was serving with the Army National Guard. He was killed in Baghdad on Monday when his Humvee rolled over an explosive. "Drum" was 39 years old.

We now know who will serve on the World Trade Center Memorial Foundation's board of directors. New York Governor George Pataki says the board will have three dozen members. Civic leaders, CEOs and celebrities will serve, as will seven relatives of the victims of the September attacks.

(BEGIN VIDEO CLIP)

GOV. GEORGE PATAKI (R), NEW YORK: We can never stop forgetting that the most important thing we have to do there is honor the memory of those who died on September 11, reflection the courage of those who responded on that day and be able to tell that story as best we can, not just to those of us who are here today, but to those who will be coming decades and generations from now.

(END VIDEO CLIP)

COSTELLO: A revised design for the memorial will be unveiled in two weeks.

In other stories across America this Thursday, NBC Sports Chief Dick Ebersol says his charter jet struggled just 20 feet into the air before it fell back to the runway and broke apart. That's according to aviation officials. Ebersol's 14-year-old son and two crew members were killed in Sunday's crash in Colorado. Ebersol was pulled from the wreckage by another son. The plane's co-pilot survived.

Condemned killer Frances Newton had two hours before her death sentence was to be carried out when the governor of Texas decided to stay her execution. Newton is on death row for the murders of her husband and children.

(BEGIN VIDEO CLIP)

PAMELA NELMS, NEWTON'S SISTER: This is indescribable. Joy, unspeakable joy, that's what it is.

QUESTION: You believed in her innocence? NELMS: All the time. All the time. Not just because she's my sister, but you can't kill your family and have the kind of peace that she has.

(END VIDEO CLIP)

COSTELLO: The execution has been put off for 120 days to allow authorities to do some more testing on some evidence.

In Florida, authorities are investigating the clinic at the center of a possible Botox scare. Four people who received injections at an Oakland Park clinic are hospitalized with suspected botulism poisoning. The California company that makes Botox says the two vials it sold to the Florida clinic came from batches that tested normal.

Coming up, when sports fans and cell phone users unite -- a new service may attract viewers like you. At least that's one hope for the industry.

Then, privacy in the office -- your messages probably aren't as secretive as you think.

Like it or not, they're going on the block. The controversy over an art auction set for today.

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Time now for a little "Business Buzz."

So you missed last night's game? Instead of calling your buddy with highlights, here's a way you can get connected to the source.

Carrie Lee is live at the Nasdaq market site -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

A bold move here. ESPN getting into the cell phone game. The sports network plans to offer its very own cell phone service, called ESPN Mobile. It's going to give sports fans wireless service directly, offering people things like sports headlines, audio and video, photos; also, ring tones. A bold move because ESPN, of course, has sports news experience, but doesn't have any experience with phones. So this deal is going to be the first of its kind.

ESPN is stemmed -- the idea stems from Walt Disney, which owns ESPN. It could be the first in this cell phone branding line. We'll see if other companies do this sort of thing going forward.

But certainly an interesting idea. It could be a big gamble, of course, Carol, because most people already have a cell phone. But we'll see if the idea takes off. COSTELLO: You never know.

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.

At least five mortar rounds landed in central Baghdad just about three hours ago. One person killed. At least seven others were injured, eight of those students at a technical college.

Gunfire in the presidential palace in Port-Au-Prince, Haiti. It came will Secretary of State Colin Powell was meeting with Haitian officials. Powell is calling for more U.N. troops in Haiti.

Excuse me. I apologize once again.

In money news, U.S. crude oil prices have steadied, but they're still above $45 a barrel. Prices have tumbled more than $3 after a big increase in heating oil supplies.

In culture, it will be all over when the fat man sings. Luciano Pavarotti says he will bring down the curtain on a 43-year career with a 40 city international tour. The concert schedule isn't final yet, though.

In sports, the Detroit Pistons have banned two men from the Palace for their involvement in last month's brawl. One of the men is accused of throwing a cup at Pacers' forward Ron Artest.

To the forecast center and Rob -- good morning.

MARCIANO: Good morning, Carol.

A familiar video from the past couple of weeks.

(WEATHER REPORT)

COSTELLO: Oh, more importantly, though, the Christmas tree in Washington, D.C. is expected to be lit at 5:00 p.m. Eastern. So, Rob, what's the weather going to be like?

MARCIANO: Looking pretty good today. It'll be a little bit breezy, but dry. And it's always a grand tradition up there.

COSTELLO: Oh, it absolutely is. The president comes out to the Ellipse and lights the beautiful tree and all the local news stations carry it live. And, of course, CNN will, too.

MARCIANO: Excellent. Yes. The weather is not going to be a problem. Everybody can enjoy it. COSTELLO: Oh, 11,000 tiny lights will glow thanks to you, Rob. Yes, right.

MARCIANO: Nice to have you back, Carol.

COSTELLO: Oh, yes.

Think you're all alone in that cubical every day? Guess again. Big Brother is right there with you, as you control, alt, delete. A look at privacy in the workplace that you won't want to miss.

And don't click on that cabernet just yet. Ordering wine online still a tricky business.

You're watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Here's looking at you, kid. Those security cameras are your workplace, are they just there to prevent theft or are they just making sure you're not goofing off?

Technology correspondent Daniel Sieberg takes a look at who might be watching you.

(BEGIN VIDEO TAPE)

DANIEL SIEBERG, CNN CORRESPONDENT (voice-over): Ever wonder if your boss is spying on you? Well, Bill Bartlett had more than a sneaking suspicion when a camera was installed literally over his shoulder at a cell phone retail shop.

BILL BARTLETT, FORMER KIOSK EMPLOYEE: I felt it was intrusive in nature. I felt like I was being harassed, actually. I received a phone call from my son on Father's Day to wish me a happy Father's Day.

Do you know if Danny is calling to arrange, too?

And I saw the camera zooming on me to see what it is that I was doing.

SIEBERG (on camera): And did you have any sort of gut reaction at various times of the day?

BARTLETT: It was so close to me that I actually found myself kind of running around the kiosk hiding from it. And it was so close to me that I had to kind of restrain myself from actually knocking it off the attachment. When I approached the owners and management in regard, I was told to deal with it or to leave. So I left.

SIEBERG (voice-over): When contacted by CNN, the kiosk owner stated that the camera was installed to protect both the company and its employees from theft and liability.

BARTLETT: I'm a proud worker. I do my job to the best of my ability. But I think there should be some guidelines.

SIEBERG (on camera): What would you tell your son when he grows up about working in a situation like you were in?

BARTLETT: Well, do whatever you can to protect your civil liberties, you know? I felt it was intrusive.

SIEBERG: Bill's situation happened to take place here in this mall, but you could be watched while you're sitting at your cubicle, talking on the phone, surfing the Web. And while some employees aren't quitting their job, they are fighting back using technology, even if it means they could get fired.

(voice-over): Computer programs like Anonymizer are now available. They claim to shield users from monitoring software. One called X Cleaner even claims to anti-spy your boss.

DOUG ISENBERG, FOUNDER, GIGILAW.COM: You install it at your own risk.

SIEBERG: Doug Isenberg is an Internet lawyer and founder of Gigilaw.com.

(on camera): Are you familiar with some employees who have decided to fight back or decided to quit or are just really fed up with this amount of monitoring, be it necessary or not?

ISENBERG: The very act of installing that software might violate a company's Internet or computer usage policy.

SIEBERG: Because a lot of employees maybe say, you know, I spend a lot of overtime working for the company, maybe they don't get paid for it, you know, I'm here early, I leave late, I've got kids to worry about, I've got bills to pay. I just don't have time to do all these things. I have to do them at work.

ISENBERG: And that's why a lot of employers will tolerate a reasonable amount of personal computer use. The employer may learn that its employees are using e-mail for personal reasons and choose to do nothing about it because it keeps the employees happy. And that should be tolerated.

SIEBERG: Although most employers do have a written monitoring policy in place, experts say many companies still do not do a good enough job of informing employees about those guidelines.

NANCY FLYNN, THE EPOLICY INSTITUTE: Some employers will monitor telephone conversations. Some employers have installed cameras and other security devices. And other employers are monitoring computer activity. Let your employees know what you're doing when it comes to monitoring and let them know why you're doing it.

SIEBERG: According to a recent American Management Association survey, 90 percent of employees say they use company resources for some personal use. Over 60 percent of employers monitor their workers' computer usage and 25 percent of U.S. businesses have fired an employee for e-mail abuse alone.

FLYNN: Most employees tend to think my e-mail is my business. My employer has no right to read my e-mail messages, particularly if it's a message to a friend or a family member. But in reality, here in the U.S., the federal government gives employers the right to monitor all employee e-mail, instant messaging and Internet activity.

SIEBERG: Ultimately, experts say companies need to find a balance between clamping down too hard and lowering employee morale and mitigating any legal hot water.

(END VIDEO TAPE)

SIEBERG: All right, I know what many of you might be thinking. You work for a huge company, how could they possibly monitor every one and everything? Well, the Orwellian image of your boss watching every line of e-mails, every word in a phone conversation in real time likely isn't practical. But, just because they're not watching every word, doesn't mean they're not recording it forever. Remember that nothing is truly deleted in the digital age. You could raise a red flag for some reason and they could go back and check on your history -- Carol.

COSTELLO: That just strikes me as so sick. I mean I understand you want to watch your employees to see if they're doing something wrong or abusing the system or their e-mails are going onto porn Web sites or something. But is it really necessary to watch their every move?

SIEBERG: Well, this is a tough story. You can almost see both sides in this case, because, you know, you want to watch your employees to make sure they're doing the right thing. On the legal side, though, companies could be liable, say, for a sexual harassment case or for someone who illegally downloads music. So they have a vested interest in protecting their bottom line, too.

COSTELLO: It always comes down to that doesn't it, Daniel?

SIEBERG: Yes, it does.

COSTELLO: The bottom line.

SIEBERG: It always does.

COSTELLO: Daniel Sieberg, thank you.

SIEBERG: Thank you.

COSTELLO: He went in looking like his usual self and came out looking, well, different. An unusual story about the politics of appearances and the man who wants to be president of Ukraine.

Plus, our hot topics this morning, the 9/11 reform bill. The president is home from Canada. Now it's time to put on his lobbying hat. But will he?

This is DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you.

Thank you for waking up with us.

I'm Carol Costello with Rob Marciano this morning.

Let's check the headlines for you now.

Explosions rock central Baghdad this morning. One person killed, a dozen wounded. You're looking at video just into us. We got this in about two hours. This is from one of the blast sites. Police say the explosions were caused by at least five mortar rounds.

Fifteen hundred U.S. troops are getting the call-up from the Pentagon. They're being told they'll soon be heading to Iraq. The government is also extending the stays of more than 10,000 other U.S. forces already there.

The man who stabbed Sweden's foreign minister to death last year will be jailed for life. That's the ruling from Sweden's Supreme Court. It overturned an appeals court ruling that would have sent the confessed killer to a mental hospital.

Excuse me.

Residents of the eastern Philippines are getting battered by a powerful typhoon. This one comes after another typhoon killed 420 people. More than 160,000 people have sought refuge from this latest storm, which has winds of up to 150 miles per hour.

To the forecast center and Rob in for Chad today -- good morning.

MARCIANO: You know how we have hurricane seasons, the one that just actually ended officially? That part of the world has typhoon pretty much year round.

COSTELLO: Oh.

MARCIANO: So it's -- and they're obviously getting one right after the other. A super typhoon coming now.

(WEATHER REPORT)

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