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CNN Live At Daybreak

Rice to Face Tough Questions; Ridge Says Security Highest Ever for 2nd Bush Inauguration

Aired January 18, 2005 - 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: Straight ahead on DAYBREAK, streets shut down, police out in force. It's not an emergency, it's an inauguration.
Also, look up in the sky. It's not a bird and it's certainly not your average plane. It's super jumbo.

And being on the road doesn't mean you have to be offline. We'll show you some gadgets on the go.

It is Tuesday, January 18.

You are watching DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

"Now in the News," word just in to CNN, a Catholic news agency has just confirmed that a Catholic archbishop abducted yesterday in northern Iraq has been freed. The archbishop was taken outside of the private residence in Mosul. The agency says no ransom was paid, despite reports that one was demanded. We'll update this story as soon as we get more information into our newsroom.

The office of one of Iraq's largest Shiite political parties is targeted by a suicide car bomber in Baghdad. A guard intervened, forcing the bomber to detonate before reaching the office gates. The guard was killed. Seven others were injured.

National Security Adviser Condoleezza Rice is expected to face some tough questions on Capitol Hill today. In about three hours, a Senate committee will open hearings on Rice's nomination for secretary of state. Observers say her confirmation is all but certain.

And many of us know her as Phoebe Tyler on "All My Children." ABC confirms this morning that actress Ruth Warrick has died at the age of 88 of complications from pneumonia. Warrick launched her career 64 years ago with a role in the Orson Welles classic, "Citizen Kane."

To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Almost everyone expects Condoleezza Rice to win confirmation as the president's next secretary of state. But you can expect sparks to fly during the Senate confirmation hearing, which start today.

CNN's Kareen Wynter has a preview for you.

KAREEN WYNTER, CNN CORRESPONDENT: Good morning, Carol.

Dr. Rice will have to answer some tough questions in this hearing, from the intelligence used to wage war in Iraq to the U.S.' response to this month's tsunami disaster.

(BEGIN VIDEOTAPE)

WYNTER (voice-over): She has years of government experience under her belt. But this will be the first Senate confirmation hearing for Dr. Condoleezza Rice. And it could be contentious.

Rice will be grilled by the Senate Foreign Relations Committee, including former Democratic presidential candidate John Kerry, on many topics -- her handling of terror threats, the intelligence used to justify the war in Iraq and the failure to find weapons of mass destruction.

SUSAN RICE, FORMER ADVISER TO SENATOR JOHN KERRY: I think it'll be a robust questioning of her record, looking backwards as well as, of course, the president's record. But it will also be an opportunity to try to pin her down on where she sees foreign policy going in the course of the second term.

WYNTER: There are also questions about Rice's close relationship with President Bush and whether she has her own voice of dissent to be an effective cabinet secretary.

LAWRENCE EAGLEBURGER, FORMER SECRETARY OF STATE: I do not believe that you should have in the secretary of state someone who has spent their last four years in the White House next to the president.

WYNTER: If confirmed, Dr. Rice would be the first African- American woman and only the second woman to head the State Department. The first woman was Madeleine Albright, who served during the Clinton administration.

(END VIDEOTAPE)

WYNTER: Secretary of State Colin Powell said last week he expects the hearings to go well and that Dr. Rice could be confirmed and sworn in soon after President Bush's inauguration -- Carol.

COSTELLO: Thank you.

Kareen Wynter reporting live from Washington this morning.

Here's a little background on Condi Rice. She was born a minister's daughter in 1954 in segregated Birmingham, Alabama. She entered college at the age of 15. She earned a doctorate by the age of 26. A year later, in 1981, she went to work as a political science professor at Stanford. Five years later, in addition to teaching, she began serving as a special assistant to the director of the joint chiefs of staff. She also served as a Soviet expert in the first Bush administration.

Once again, those Senate confirmation hearings begin at 9:00 Eastern this morning, 6:00 Pacific Time. CNN, of course, will bring that confirmation hearing to you live.

Condoleezza Rice won't be the only one in the hot seat this morning.

In just under four hours, another Senate panel holds a hearing on Michael Leavitt's nomination as health secretary. Leavitt currently serves as head of the EPA.

Now for a look at "Defending America."

The world will be watching President Bush's second inauguration this Thursday. Homeland Security Secretary Tom Ridge says security will be at the highest levels ever for any event.

CNN homeland security correspondent Jeanne Meserve takes a look at the security blanket that's been placed over the nation's capital.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): On Washington's subway system, Metro, the inauguration will mean heavy ridership and heavy security. Two stations near the festivities will be shut down altogether. There will be more canine teams, more police and authorities are asking for more eyes.

CHIEF POLLY HANSON, METRO TRANSIT POLICE: I am pleading, begging, directing, demanding that our passengers be engaged with us. I am not suggesting that we can do it by ourselves.

MESERVE: An FBI and Department of Homeland Security inauguration threat assessment mentions other modes of transportation which are potential targets or potential weapons. Limousines, for instance, which al Qaeda has explored using as bombs because of their large capacity and the access they sometimes have to restricted areas. The FBI warned limo operators months ago to be on the lookout.

RICHARD KANE, INTERNATIONAL LIMOUSINE SERVICE INC.: The questions that they were concerned about for us is do we have anybody that is asking the capacity, size, the weight capacity of our vehicles. And fortunately, it's not been our case here.

MESERVE: A wide web of street closings is intended to keep limos and all vehicles away from inaugural activities. Officials are hoping to avoid anything like this, the chaotic evacuation of the capital during the funeral of President Reagan, triggered when a plane carrying the governor of Kentucky entered restricted air space. UNIDENTIFIED MALE: If you don't have to fly, don't fly on that day.

MESERVE: Officials are briefing pilots on expanded flight restrictions being imposed over the national capital region, warning them that violators will be met by fighter jets or Black Hawk helicopters. If they don't respond to radio calls, signals or flares, they risk being shot down.

KEITH ERICKSEN, FLIGHT INSTRUCTOR: Nobody likes to be told that they can't go somewhere or can't do something. But we understand that these safety procedures are in place for a reason.

MESERVE: As a precaution, general aviation at Reagan National Airport will be shut down altogether and the entire region is being monitored by the military's North American Aerospace Defense Command in Colorado.

COL. THOMAS MUIR, NORAD: The experts across the front row will monitor events on the week prior to the inauguration through the week after the inauguration. You can see up on our wall of knowledge, we like to call it, where we're able to provide real time situational awareness.

UNIDENTIFIED MALE: On this coast, we've got a 25454.

MESERVE: Armed Coast Guard vessels are already patrolling a security zone established on the Potomac, checking out more than boat traffic.

LT. FRANK DISPUTED ELECTION ROSSO, U.S. COAST GUARD: We're keeping an eye on the bridges, as well, underneath the bridges and also on the bridges. Like with broken down trucks, cars that have been there for a while, we'll call them into local law enforcement so they can go out there and check them out.

MESERVE: The Coast Guard will also eyeball bordering park land and roads, on the lookout for suspicious vehicles or people.

The capital city and the inauguration it will host are emblems of the nation and its democratic traditions. But authorities say they have no credible information that terrorists are targeting the ceremony or celebrations.

Jean Meserve, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Along with heightened security, you can look for protesters. One has a prime perch overlooking Pennsylvania Avenue. Washington, D.C. Councilman Jim Graham can watch the inaugural parade from his office in the Wilson Building and everyone else can watch as he hangs anti-Bush signs from his window.

(BEGIN VIDEO CLIP)

JIM GRAHAM, CITY COUNCILMAN: We just simply disagree with him. We give him his day...

QUESTION: We or you?

GRAHAM: I disagree and many others disagree with the agenda which this president has in store for America.

This is not a sign of disrespect. It's meant to be an expression of disagreement with the policies of the Bush administration.

(END VIDEO CLIP)

COSTELLO: Graham is being thrifty. He says the signs are leftovers from John Kerry's failed White House bid.

Be sure to stay with CNN for more of our "Security Watch" and our special series on "Defending America." That comes your way tonight at 7:00 p.m. Eastern with Anderson Cooper, so stay tuned to CNN.

Howard Hughes had a similar dream, but it barely got off the ground. Today a new chapter in aviation history unfolds as a European aircraft company unveils the largest passenger jet ever. You're looking at ceremonies in France. Of course, that is the French president, Jacques Chirac. This plane he's talking about can hold up to 550 passengers.

Richard Quest, also in Toulouse, France, where the ceremony that you're looking at is taking place.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN CORRESPONDENT: By any standards, the events taking place here in Toulouse usher in a new era for air travel and for passengers. It may still be another year before the first passengers get to sit on the A380, but that shouldn't distract from what has actually taken place.

The plane, costing some $250 million at the catalog price, is the most expensive passenger plane in the world. But no one believes that the 11 carriers, Quantus, Singapore, Emirates, to name but a few, actually paid that sort of money. They'll have got heavy discounts for being the first through the door.

So far, Airbus has sold 149 of the super jumbos. They say before the end of January, a Chinese airline will make an order for many more. And that's crucial because no U.S. carrier has yet bought the A380. And if it is to be a commercial success, then, of course, it has to hit the 250 mark.

Airbus say that over the 40-year life span of this program, it will sell many hundreds, over a thousand, they believe.

Boeing believes that's simply pie in the sky. They say passengers want frequency, smaller planes and more destinations and a behemoth like the A380 simply doesn't make that possible.

This is truly one of those cases where the two big world plane makers have gone their separate ways. The only thing we can say with certainty is that the 747 days are numbered. The A380 has arrived.

Richard Quest, CNN, Toulouse, France.

(END VIDEOTAPE)

COSTELLO: That's so big they can fit a spa on board and maybe shopping. And a nursery, too. Who knows?

Condoleezza Rice faces the Senate Foreign Relations Committee this morning. You can bet she'll be taking some tough questions. Or will she? We'll preview her day on the Hill.

Another car bomb in Baghdad. And Iraqi officials take more steps to tighten security before this election that's now less than two weeks away. We'll head live to the capital city later this hour.

And need to check your e-mail on the road? Ali Velshi will tell us what gadgets are best on the go.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 6:15 Eastern.

Here's what's all new this morning.

Confirmation hearings for Condoleezza Rice set to get underway this morning. The current national security adviser can expect some tough questioning from the Senate Foreign Relations Committee. Rice was chosen to replace Colin Powell as secretary of state.

We are following a developing story this morning. The Vatican has now confirmed that a Catholic archbishop abducted yesterday in northern Iraq has been freed. The archbishop was taken outside of a private residence in Mosul. The Vatican says no ransom was paid. A Catholic news agency reports that a $200,000 ransom had been demanded.

In money news, the president of Comair has decided to step down for what the company says are personal reasons. The move comes less than a month after the airline canceled all flights on Christmas due to a computer failure.

In culture, Moammar Qaddafi highlights this year's opera season in London. No kidding. The opera, based on Qaddafi's life, features a rapper as the Libyan leader and a chorus of all female bodyguards. You remember London also plays host to a very successful opera based on the Jerry Springer show.

In sports, the San Francisco 49ers are hoping family history can help. The team tapped Baltimore Ravens' defensive coordinator Mike Nolan as their next head coach. Nolan's father coached the Niners for eight seasons in the late '60s and early '70s, you know, back when the Niners were good.

To the forecast center and Chad.

MYERS: Carol, did you hear the news about NASCAR?

COSTELLO: No.

MYERS: Dale Earnhardt, Jr. and Waltrip, Michael Waltrip, are switching crews, switching cars, switching everything.

COSTELLO: You're kidding?

MYERS: And that is a big shakeup in DEI.

COSTELLO: Why?

MYERS: Because they want to win more races. We'll see if it works.

COSTELLO: That's why.

(WEATHER REPORT)

COSTELLO: And those are the latest headlines for you this morning.

Should you Blackberry or Trio? Not even sure what that means? Well, Ali Velshi will be back to tell us which handheld device is best on the road.

And it's Gallup Tuesday. How do people feel about Condoleezza Rice replacing Colin Powell? Gallup will ask the question and we get some answers this hour on DAYBREAK.

(COMMERCIAL BREAK)

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

Verizon and Yahoo! are teaming up to give you more content and more choices.

Carrie Lee at the Nasdaq market site to tell us all about it -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

The two companies set to partner this summer and Verizon and Yahoo! are going to provide Yahoo! premium content to Verizon DSL customers.

Why are they doing this?

Well, Internet providers are trying to offer customers more than just a fast Internet connection. The content providers, meanwhile, get better exposure and part of the subscriber fees. Now, the terms of the deal haven't been disclosed but there aren't going to be any additional costs to the user. Yahoo! already has a similar deal with SBC Communications. Verizon has a similar deal with MSN. But this summer, Yahoo! is going to become Verizon's preferred partner.

So we'll see how these stocks do today. Meanwhile, Yahoo! is going to report recent quarterly profits after the close of trading tonight.

We are waiting to hear from 3M, the diversified manufacturer, before trading gets underway. And since this manufacturing company is so diverse, it's really a bellwether for how manufacturing is holding up as a whole. So a lot of people are watching 3M's report.

Meanwhile, futures so far looking flat to slightly lower for this Tuesday's session -- Carol.

COSTELLO: All right, Carrie Lee live from the NASDAQ market site.

Thank you.

Across America this morning, 32 Chinese stowaways will be given the chance to apply for asylum in the United States. They were discovered in a cargo container at the Port of Los Angeles over the weekend. The 32 men and teenaged boys spent two weeks locked inside that container. The cargo ship's crew members are not considered suspects.

An Arizona prison is under lockdown after a fight turned into a stand-off with guards. Three guards were injured while trying to break up a brawl in the Tucson prison's dining hall. More than 40 inmates then barricaded themselves inside the hall. Police used a chemical agent to force them to surrender.

The Cobb County, Georgia School Board will appeal a judge's decision on evolution. The judge ruled last week that the school system must remove controversial stickers from biology textbooks. The stickers said that evolution is a theory, not a fact.

As the election draws near, more street violence in Iraq. This morning, a car bombing in Baghdad. We're going to take you there live after a break.

Plus, Condoleezza Rice faces some tough questions on Capitol Hill today. We will have a preview for you.

You are watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Good morning to you.

Welcome to the last half hour of DAYBREAK.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

A Senate confirmation hearing opens this morning for Condoleezza Rice as the next secretary of state. She is expected to face some tough questions, especially about Iraq.

Nearly two million Muslims from across the world are converging on the holy city of Mecca for the annual Hajj, which begins today. Security is tight as Saudi officials try to prevent stampedes and possible terrorist attacks.

Police believe a fugitive couple who abducted their own children may be getting help from family members. An amber alert was issued after the parents took their two children at gunpoint from a foster home. It's believed they fled into the mountains of Tennessee.

And jury selection begins today in the retrial of former Tyco CEO Dennis Kozlowski and his financial chief, Mark Swartz. The two are accused of stealing $600 million from the company. The original case ended in a mistrial last April.

To the forecast center now and Chad -- good morning.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Word just into CNN minutes ago, a Catholic archbishop abducted yesterday in Mosul has been released. CNN has just confirmed that with the Vatican.

Let's head live now to Jeff Koinange in Baghdad for more -- hello, Jeff.

KOINANGE: Hello there, Carol.

Yes, a bit of good news coming out this Tuesday morning. We can confirm that Archbishop Basil George Casmoussa has been released, according to the Vatican spokesman here in Baghdad. He says he has actually spoken to the archbishop and he is in good health, he is well and that the Vatican did not pay a ransom for his release. This contrary to reports in the last 24 hours or so that said that the kidnappers had actually demanded up to $200,000 for the release of the archbishop. The Vatican denying that, saying the archbishop has been released without a ransom.

All this coming on the day when Iraq's interior ministry has announced some new security measures. Starting January 29th and through the 31st, all borders will be closed to, in their words, a security precaution in the period of the elections. This coming on a day when yet another suicide bombing right here in Baghdad. In fact, it was so loud, we heard the explosion right here in our offices, which shook the walls and rattled the windows.

According to the spokesman for the Supreme Council for the Islamic Revolution of Iraq, or SCIRI, that's the main Shia political party, a vehicle tried to make its way past the first barrier, ran into the headquarters. The guards there opened fir on the vehicle, which detonated, killing one of the guards and injuring up to nine people. U.S. forces on the ground have secured the area.

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 January 18, 2005 - 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: Straight ahead on DAYBREAK, streets shut down, police out in force. It's not an emergency, it's an inauguration.
Also, look up in the sky. It's not a bird and it's certainly not your average plane. It's super jumbo.

And being on the road doesn't mean you have to be offline. We'll show you some gadgets on the go.

It is Tuesday, January 18.

You are watching DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

"Now in the News," word just in to CNN, a Catholic news agency has just confirmed that a Catholic archbishop abducted yesterday in northern Iraq has been freed. The archbishop was taken outside of the private residence in Mosul. The agency says no ransom was paid, despite reports that one was demanded. We'll update this story as soon as we get more information into our newsroom.

The office of one of Iraq's largest Shiite political parties is targeted by a suicide car bomber in Baghdad. A guard intervened, forcing the bomber to detonate before reaching the office gates. The guard was killed. Seven others were injured.

National Security Adviser Condoleezza Rice is expected to face some tough questions on Capitol Hill today. In about three hours, a Senate committee will open hearings on Rice's nomination for secretary of state. Observers say her confirmation is all but certain.

And many of us know her as Phoebe Tyler on "All My Children." ABC confirms this morning that actress Ruth Warrick has died at the age of 88 of complications from pneumonia. Warrick launched her career 64 years ago with a role in the Orson Welles classic, "Citizen Kane."

To the forecast center now and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Almost everyone expects Condoleezza Rice to win confirmation as the president's next secretary of state. But you can expect sparks to fly during the Senate confirmation hearing, which start today.

CNN's Kareen Wynter has a preview for you.

KAREEN WYNTER, CNN CORRESPONDENT: Good morning, Carol.

Dr. Rice will have to answer some tough questions in this hearing, from the intelligence used to wage war in Iraq to the U.S.' response to this month's tsunami disaster.

(BEGIN VIDEOTAPE)

WYNTER (voice-over): She has years of government experience under her belt. But this will be the first Senate confirmation hearing for Dr. Condoleezza Rice. And it could be contentious.

Rice will be grilled by the Senate Foreign Relations Committee, including former Democratic presidential candidate John Kerry, on many topics -- her handling of terror threats, the intelligence used to justify the war in Iraq and the failure to find weapons of mass destruction.

SUSAN RICE, FORMER ADVISER TO SENATOR JOHN KERRY: I think it'll be a robust questioning of her record, looking backwards as well as, of course, the president's record. But it will also be an opportunity to try to pin her down on where she sees foreign policy going in the course of the second term.

WYNTER: There are also questions about Rice's close relationship with President Bush and whether she has her own voice of dissent to be an effective cabinet secretary.

LAWRENCE EAGLEBURGER, FORMER SECRETARY OF STATE: I do not believe that you should have in the secretary of state someone who has spent their last four years in the White House next to the president.

WYNTER: If confirmed, Dr. Rice would be the first African- American woman and only the second woman to head the State Department. The first woman was Madeleine Albright, who served during the Clinton administration.

(END VIDEOTAPE)

WYNTER: Secretary of State Colin Powell said last week he expects the hearings to go well and that Dr. Rice could be confirmed and sworn in soon after President Bush's inauguration -- Carol.

COSTELLO: Thank you.

Kareen Wynter reporting live from Washington this morning.

Here's a little background on Condi Rice. She was born a minister's daughter in 1954 in segregated Birmingham, Alabama. She entered college at the age of 15. She earned a doctorate by the age of 26. A year later, in 1981, she went to work as a political science professor at Stanford. Five years later, in addition to teaching, she began serving as a special assistant to the director of the joint chiefs of staff. She also served as a Soviet expert in the first Bush administration.

Once again, those Senate confirmation hearings begin at 9:00 Eastern this morning, 6:00 Pacific Time. CNN, of course, will bring that confirmation hearing to you live.

Condoleezza Rice won't be the only one in the hot seat this morning.

In just under four hours, another Senate panel holds a hearing on Michael Leavitt's nomination as health secretary. Leavitt currently serves as head of the EPA.

Now for a look at "Defending America."

The world will be watching President Bush's second inauguration this Thursday. Homeland Security Secretary Tom Ridge says security will be at the highest levels ever for any event.

CNN homeland security correspondent Jeanne Meserve takes a look at the security blanket that's been placed over the nation's capital.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): On Washington's subway system, Metro, the inauguration will mean heavy ridership and heavy security. Two stations near the festivities will be shut down altogether. There will be more canine teams, more police and authorities are asking for more eyes.

CHIEF POLLY HANSON, METRO TRANSIT POLICE: I am pleading, begging, directing, demanding that our passengers be engaged with us. I am not suggesting that we can do it by ourselves.

MESERVE: An FBI and Department of Homeland Security inauguration threat assessment mentions other modes of transportation which are potential targets or potential weapons. Limousines, for instance, which al Qaeda has explored using as bombs because of their large capacity and the access they sometimes have to restricted areas. The FBI warned limo operators months ago to be on the lookout.

RICHARD KANE, INTERNATIONAL LIMOUSINE SERVICE INC.: The questions that they were concerned about for us is do we have anybody that is asking the capacity, size, the weight capacity of our vehicles. And fortunately, it's not been our case here.

MESERVE: A wide web of street closings is intended to keep limos and all vehicles away from inaugural activities. Officials are hoping to avoid anything like this, the chaotic evacuation of the capital during the funeral of President Reagan, triggered when a plane carrying the governor of Kentucky entered restricted air space. UNIDENTIFIED MALE: If you don't have to fly, don't fly on that day.

MESERVE: Officials are briefing pilots on expanded flight restrictions being imposed over the national capital region, warning them that violators will be met by fighter jets or Black Hawk helicopters. If they don't respond to radio calls, signals or flares, they risk being shot down.

KEITH ERICKSEN, FLIGHT INSTRUCTOR: Nobody likes to be told that they can't go somewhere or can't do something. But we understand that these safety procedures are in place for a reason.

MESERVE: As a precaution, general aviation at Reagan National Airport will be shut down altogether and the entire region is being monitored by the military's North American Aerospace Defense Command in Colorado.

COL. THOMAS MUIR, NORAD: The experts across the front row will monitor events on the week prior to the inauguration through the week after the inauguration. You can see up on our wall of knowledge, we like to call it, where we're able to provide real time situational awareness.

UNIDENTIFIED MALE: On this coast, we've got a 25454.

MESERVE: Armed Coast Guard vessels are already patrolling a security zone established on the Potomac, checking out more than boat traffic.

LT. FRANK DISPUTED ELECTION ROSSO, U.S. COAST GUARD: We're keeping an eye on the bridges, as well, underneath the bridges and also on the bridges. Like with broken down trucks, cars that have been there for a while, we'll call them into local law enforcement so they can go out there and check them out.

MESERVE: The Coast Guard will also eyeball bordering park land and roads, on the lookout for suspicious vehicles or people.

The capital city and the inauguration it will host are emblems of the nation and its democratic traditions. But authorities say they have no credible information that terrorists are targeting the ceremony or celebrations.

Jean Meserve, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: Along with heightened security, you can look for protesters. One has a prime perch overlooking Pennsylvania Avenue. Washington, D.C. Councilman Jim Graham can watch the inaugural parade from his office in the Wilson Building and everyone else can watch as he hangs anti-Bush signs from his window.

(BEGIN VIDEO CLIP)

JIM GRAHAM, CITY COUNCILMAN: We just simply disagree with him. We give him his day...

QUESTION: We or you?

GRAHAM: I disagree and many others disagree with the agenda which this president has in store for America.

This is not a sign of disrespect. It's meant to be an expression of disagreement with the policies of the Bush administration.

(END VIDEO CLIP)

COSTELLO: Graham is being thrifty. He says the signs are leftovers from John Kerry's failed White House bid.

Be sure to stay with CNN for more of our "Security Watch" and our special series on "Defending America." That comes your way tonight at 7:00 p.m. Eastern with Anderson Cooper, so stay tuned to CNN.

Howard Hughes had a similar dream, but it barely got off the ground. Today a new chapter in aviation history unfolds as a European aircraft company unveils the largest passenger jet ever. You're looking at ceremonies in France. Of course, that is the French president, Jacques Chirac. This plane he's talking about can hold up to 550 passengers.

Richard Quest, also in Toulouse, France, where the ceremony that you're looking at is taking place.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN CORRESPONDENT: By any standards, the events taking place here in Toulouse usher in a new era for air travel and for passengers. It may still be another year before the first passengers get to sit on the A380, but that shouldn't distract from what has actually taken place.

The plane, costing some $250 million at the catalog price, is the most expensive passenger plane in the world. But no one believes that the 11 carriers, Quantus, Singapore, Emirates, to name but a few, actually paid that sort of money. They'll have got heavy discounts for being the first through the door.

So far, Airbus has sold 149 of the super jumbos. They say before the end of January, a Chinese airline will make an order for many more. And that's crucial because no U.S. carrier has yet bought the A380. And if it is to be a commercial success, then, of course, it has to hit the 250 mark.

Airbus say that over the 40-year life span of this program, it will sell many hundreds, over a thousand, they believe.

Boeing believes that's simply pie in the sky. They say passengers want frequency, smaller planes and more destinations and a behemoth like the A380 simply doesn't make that possible.

This is truly one of those cases where the two big world plane makers have gone their separate ways. The only thing we can say with certainty is that the 747 days are numbered. The A380 has arrived.

Richard Quest, CNN, Toulouse, France.

(END VIDEOTAPE)

COSTELLO: That's so big they can fit a spa on board and maybe shopping. And a nursery, too. Who knows?

Condoleezza Rice faces the Senate Foreign Relations Committee this morning. You can bet she'll be taking some tough questions. Or will she? We'll preview her day on the Hill.

Another car bomb in Baghdad. And Iraqi officials take more steps to tighten security before this election that's now less than two weeks away. We'll head live to the capital city later this hour.

And need to check your e-mail on the road? Ali Velshi will tell us what gadgets are best on the go.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It is 6:15 Eastern.

Here's what's all new this morning.

Confirmation hearings for Condoleezza Rice set to get underway this morning. The current national security adviser can expect some tough questioning from the Senate Foreign Relations Committee. Rice was chosen to replace Colin Powell as secretary of state.

We are following a developing story this morning. The Vatican has now confirmed that a Catholic archbishop abducted yesterday in northern Iraq has been freed. The archbishop was taken outside of a private residence in Mosul. The Vatican says no ransom was paid. A Catholic news agency reports that a $200,000 ransom had been demanded.

In money news, the president of Comair has decided to step down for what the company says are personal reasons. The move comes less than a month after the airline canceled all flights on Christmas due to a computer failure.

In culture, Moammar Qaddafi highlights this year's opera season in London. No kidding. The opera, based on Qaddafi's life, features a rapper as the Libyan leader and a chorus of all female bodyguards. You remember London also plays host to a very successful opera based on the Jerry Springer show.

In sports, the San Francisco 49ers are hoping family history can help. The team tapped Baltimore Ravens' defensive coordinator Mike Nolan as their next head coach. Nolan's father coached the Niners for eight seasons in the late '60s and early '70s, you know, back when the Niners were good.

To the forecast center and Chad.

MYERS: Carol, did you hear the news about NASCAR?

COSTELLO: No.

MYERS: Dale Earnhardt, Jr. and Waltrip, Michael Waltrip, are switching crews, switching cars, switching everything.

COSTELLO: You're kidding?

MYERS: And that is a big shakeup in DEI.

COSTELLO: Why?

MYERS: Because they want to win more races. We'll see if it works.

COSTELLO: That's why.

(WEATHER REPORT)

COSTELLO: And those are the latest headlines for you this morning.

Should you Blackberry or Trio? Not even sure what that means? Well, Ali Velshi will be back to tell us which handheld device is best on the road.

And it's Gallup Tuesday. How do people feel about Condoleezza Rice replacing Colin Powell? Gallup will ask the question and we get some answers this hour on DAYBREAK.

(COMMERCIAL BREAK)

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

Verizon and Yahoo! are teaming up to give you more content and more choices.

Carrie Lee at the Nasdaq market site to tell us all about it -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

The two companies set to partner this summer and Verizon and Yahoo! are going to provide Yahoo! premium content to Verizon DSL customers.

Why are they doing this?

Well, Internet providers are trying to offer customers more than just a fast Internet connection. The content providers, meanwhile, get better exposure and part of the subscriber fees. Now, the terms of the deal haven't been disclosed but there aren't going to be any additional costs to the user. Yahoo! already has a similar deal with SBC Communications. Verizon has a similar deal with MSN. But this summer, Yahoo! is going to become Verizon's preferred partner.

So we'll see how these stocks do today. Meanwhile, Yahoo! is going to report recent quarterly profits after the close of trading tonight.

We are waiting to hear from 3M, the diversified manufacturer, before trading gets underway. And since this manufacturing company is so diverse, it's really a bellwether for how manufacturing is holding up as a whole. So a lot of people are watching 3M's report.

Meanwhile, futures so far looking flat to slightly lower for this Tuesday's session -- Carol.

COSTELLO: All right, Carrie Lee live from the NASDAQ market site.

Thank you.

Across America this morning, 32 Chinese stowaways will be given the chance to apply for asylum in the United States. They were discovered in a cargo container at the Port of Los Angeles over the weekend. The 32 men and teenaged boys spent two weeks locked inside that container. The cargo ship's crew members are not considered suspects.

An Arizona prison is under lockdown after a fight turned into a stand-off with guards. Three guards were injured while trying to break up a brawl in the Tucson prison's dining hall. More than 40 inmates then barricaded themselves inside the hall. Police used a chemical agent to force them to surrender.

The Cobb County, Georgia School Board will appeal a judge's decision on evolution. The judge ruled last week that the school system must remove controversial stickers from biology textbooks. The stickers said that evolution is a theory, not a fact.

As the election draws near, more street violence in Iraq. This morning, a car bombing in Baghdad. We're going to take you there live after a break.

Plus, Condoleezza Rice faces some tough questions on Capitol Hill today. We will have a preview for you.

You are watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Good morning to you.

Welcome to the last half hour of DAYBREAK.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

A Senate confirmation hearing opens this morning for Condoleezza Rice as the next secretary of state. She is expected to face some tough questions, especially about Iraq.

Nearly two million Muslims from across the world are converging on the holy city of Mecca for the annual Hajj, which begins today. Security is tight as Saudi officials try to prevent stampedes and possible terrorist attacks.

Police believe a fugitive couple who abducted their own children may be getting help from family members. An amber alert was issued after the parents took their two children at gunpoint from a foster home. It's believed they fled into the mountains of Tennessee.

And jury selection begins today in the retrial of former Tyco CEO Dennis Kozlowski and his financial chief, Mark Swartz. The two are accused of stealing $600 million from the company. The original case ended in a mistrial last April.

To the forecast center now and Chad -- good morning.

MYERS: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Word just into CNN minutes ago, a Catholic archbishop abducted yesterday in Mosul has been released. CNN has just confirmed that with the Vatican.

Let's head live now to Jeff Koinange in Baghdad for more -- hello, Jeff.

KOINANGE: Hello there, Carol.

Yes, a bit of good news coming out this Tuesday morning. We can confirm that Archbishop Basil George Casmoussa has been released, according to the Vatican spokesman here in Baghdad. He says he has actually spoken to the archbishop and he is in good health, he is well and that the Vatican did not pay a ransom for his release. This contrary to reports in the last 24 hours or so that said that the kidnappers had actually demanded up to $200,000 for the release of the archbishop. The Vatican denying that, saying the archbishop has been released without a ransom.

All this coming on the day when Iraq's interior ministry has announced some new security measures. Starting January 29th and through the 31st, all borders will be closed to, in their words, a security precaution in the period of the elections. This coming on a day when yet another suicide bombing right here in Baghdad. In fact, it was so loud, we heard the explosion right here in our offices, which shook the walls and rattled the windows.

According to the spokesman for the Supreme Council for the Islamic Revolution of Iraq, or SCIRI, that's the main Shia political party, a vehicle tried to make its way past the first barrier, ran into the headquarters. The guards there opened fir on the vehicle, which detonated, killing one of the guards and injuring up to nine people. U.S. forces on the ground have secured the area.

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