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CNN Live At Daybreak

World on Watch as Pope John Paul II Recovers From Bout With the Flu; Bizarre Hoax

Aired February 02, 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: The world's on watch as Pope John Paul II recovers from a bout with the flu. We take you live to Rome for the latest details straight ahead.
At first glance, it looks like a U.S. soldier in Iraq. But look again. We'll tell you about this bizarre hoax.

Plus, Michael Jackson gets plenty of support from his fans, but how will potential jurors see the pop star?

And watch your iPod. It's the latest electronic device to be targeted by thieves.

It is Wednesday, February 2.

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, the head of the Catholic Church is resting in a Rome hospital. An aide says there is no reason to be alarmed. Pope John Paul II spent a restful night after being rushed to the hospital with breathing problems. He's been battling the flu.

Just within the last hour, word out of Israel that Prime Minister Ariel Sharon has agreed to attend a summit in Egypt involving Palestinian leader Mahmoud Abbas. The summit is set for Tuesday at the Red Sea resort of Sharm el-Sheikh.

President Bush heads to Capitol Hill tonight for his State of the Union address. He's expected to push for changes in Social Security and talk about the elections in Iraq. The president also hopes to fill two cabinet posts soon. A divided Senate debated the nomination of Alberto Gonzales as attorney general. And Michael Chertoff goes before a Senate committee in four hours for his confirmation hearing as homeland security secretary.

To the forecast center and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT) COSTELLO: A bit of good news from the Vatican this morning. The pope is feeling better. He even participated in mass from his hospital bed today. Still, he is in the hospital and he's not been released.

CNN's Jim Bittermann joins us live from Rome with the latest on this.

Bring us up to date -- Jim.

JIM BITTERMANN, CNN CORRESPONDENT: Hi, Carol.

Well, that's -- in fact, the word from the Vatican is don't be alarmed. That's the quote of the morning in the Vatican. But the fact is the Vatican itself was alarmed enough last night, about 13 hours ago, that they decided to move the pope from the Vatican to the Gemelli Hospital here about two miles away from the vote.

It should be said that the Vatican has its own clinic and has quite a good deal of medical equipment that's been moved in there over the years as the pope has increasingly suffered the Parkinson's Disease.

But apparently last night he had real problems breathing, something that's called laryngeal spasms, a shortness of breath caused by muscular spasms. And doctors tell us that, in fact, it can be quite dramatic. We're not sure what happened with the pope, but in other cases you've got -- the patient can actually turn blue from the lack of breath.

So whatever happened last night, it was dramatic enough that the Vatican chose to move the pope here.

Now, this morning, the pope's spokesman says we shouldn't be alarmed, that the pope had slept some during the night. He confirmed that he is suffering from a respiratory infection, but that he also had a small breakfast this morning with coffee, and, as you mentioned, was preparing to celebrate mass as the papal spokesman was leaving.

And I'd just add, Carol, that, you know, one of the things that we heard all along here as the pope had suffered from Parkinson's Disease is that one of the worst things that can happen to Parkinson's patients is to get a respiratory infection because they have very little muscle control as they suffer increasingly from the disease. They have very little muscle control in sort of the lung and throat region, which accounts for why the pope has had problems breathing over the years.

So I would say that we're going to be watching this very carefully here throughout the day -- Carol.

COSTELLO: Yes, because doesn't the Vatican have a tendency to make things sound a bit better than they actually are, Jim?

BITTERMANN: In fact, I mean there's an old expression, an old expression around the Vatican that says the pope is never sick until he dies.

COSTELLO: Oh, Jim Bittermann live in Rome this morning.

Thank you.

Stay with CNN throughout the day for coverage on the pope's condition. You can also visit cnn.com for more, including a pictorial history of John Paul II.

It looks like Mideast peace efforts are moving forward. We're getting word this morning of an upcoming summit involving some key players.

For the latest, let's go straight to Jerusalem and CNN's Guy Raz -- good morning, Guy.

GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.

Indeed, it appears as if the momentum is gaining traction. The Israeli prime minister, Ariel Sharon, has accepted an offer to attend a Middle East peace summit in Egypt, the southern Egyptian resort town of Sharm el-Sheikh, early next week. That would include the Egyptian president, Hosni Mubarak, and the newly elected Palestinian president, Mahmoud Abbas. And it would be the first time in more than two years that such a high level meeting between Israeli and Palestinian officials has taken place at all, and the first official visit for the Israeli prime minister, Ariel Sharon, to Egypt since he was elected more than four years ago.

Now, relations between Israel and Egypt have been experiencing something of a warming trend in the past several months, particularly since Palestinian President Mahmoud Abbas was elected last month. Egypt wants to play a significant role in trying to bring about a resolution to the Israeli-Palestinian conflict. Egypt is the most populous Arab country and perhaps one of the most important politically, and also one of two Arab countries with a peace treaty, albeit a cold one, with Israel.

Now, what -- now, these developments will cap a week of very significant events taking place in the region. U.S. Secretary of State Condoleezza Rice will arrive to Jerusalem on Sunday. She'll hold bilateral talks with Israeli and Palestinian leaders in an effort, essentially, to bolster the momentum that's been created between Israelis and Palestinians since the election of Mahmoud Abbas.

Now, shortly after she leaves, we expect the Israeli prime minister, Ariel Sharon, to fly to Egypt to attend that summit. We shouldn't expect any major breakthroughs in terms of resolving the Israeli-Palestinian conflict, but certainly it underlines the momentum that has been established in this region for a return to the negotiating table -- Carol.

COSTELLO: Guy Raz reporting live from Jerusalem this morning.

Thank you. Back here in the States, in Washington, President Bush is gearing up for his State of the Union speech. He's been practicing pretty intensely, as you can see, for the past two days. Aides say the president will offer new details about his plans to revamp Social Security.

Expect some opposition from the Democrats. The Senate minority leader says flat out it will not happen.

The president is also expected to repeat a key theme from his inaugural address.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE SPOKESMAN: I think you can expect he'll continue to talk about the advance of freedom in the world. We have seen tremendous progress made when it comes to the advance of freedom in the world in the last few months. We've seen elections take place in Afghanistan. We've seen elections take place in the Palestinian territories. And we saw an historic election take place just this weekend in Iraq.

(END VIDEO CLIP)

COSTELLO: Our prime time coverage of the State of the Union address begins at 8:00 p.m. Eastern right here on CNN.

Many Democrats are calling for an exit strategy, a timetable. But Defense Secretary Donald Rumsfeld says it would be foolish to try to nail down a date when U.S. troops would be able to come home from Iraq.

In his first CNN interview since the Iraqi elections, the defense chief calls U.S. troop departure condition based.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: Obviously, the answer to your question is not a month or a year, it is a -- it's condition based. It's based on when the Iraqi government and their security forces have developed the capability, the capacity to provide for the security of their people. We've been working very hard on it. There are over 130,000 Iraqi security forces in the Ministry of Interior and in the Ministry of Defense. There's another 70,000 site protection people.

So a lot has been done.

(END VIDEO CLIP)

COSTELLO: More than 1,400 American troops have died in Iraq so far.

Always in Iraq there is the fear of being taken hostage by insurgents. But there is a new twist in this deadly game a doll named Cody, a doll. Our Pentagon correspondent, Barbara Starr, has the details for you.

(BEGIN VIDEO TAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): This Islamic Web site posted the statement claiming insurgents captured a U.S. soldier named John Adam after a firefight and were planning to behead him. This photograph accompanied the statement, a photograph CNN never aired because it could not confirm a U.S. soldier was missing. Now, it appears it was a hoax.

An action figure toy called Special Ops Cody, with a uniform of doll clothes and toy guns. The manufacturer says it looks like a toy made for the U.S. military exchange stores.

LIAM CUSACK, DRAGON MODELS USA: When we looked at it, we noticed that it looked, you know -- it beared a striking resemblance to an action figure that we had produced about a year and a half ago, around a year ago, I guess. We still don't want to come out and say that it is, you know, 100 percent for sure our action figure, but I mean it does bear, you know, like I said, a striking resemblance to an action figure that we did make.

STARR: But the military had to take it all very seriously, poring over the photograph, wondering about the uniform. The ammo best did not look like anything in U.S. military inventory. One senior officer saying, "We didn't know for sure. We had to start counting heads in Iraq to see if anybody was missing."

The Pentagon was not amused. They remind everyone that this is Army Specialist Keith Matthew Maupin, a U.S. Army soldier missing in Iraq since he was captured last year. His fate very much unknown.

(on camera): Officials say this photo could have been from insurgents or someone who hacked into a Web site. They don't really know. But any time a U.S. military person is reported captured, U.S. officials say they will pursue the matter.

Barbara Starr, CNN, the Pentagon.

(END VIDEO TAPE)

COSTELLO: Turning now to the Michael Jackson case.

Jury selection is moving relatively quickly in his child molestation case. On the second day of the process, the judge said enough potential jurors have been picked and now they can be whittled down. Court resumes next Monday.

As for Jackson reporters, they say he seemed to be paying close attention to what was going on.

(BEGIN VIDEO CLIP)

JANE VELEZ-MITCHELL, REPORTER, "CELEBRITY JUSTICE": I was really impressed with this very lengthy proceeding this morning. He was highly focused. He was taking notes. He was very engaged. He did not seem to be daydreaming. And I really got the sense that he is aware that he is really fighting for his life and there's sort of a seriousness that emanates out of him that we haven't seen previously.

So that really struck me.

(END VIDEO CLIP)

COSTELLO: But just how tough will it be to seat an impartial jury? We'll get some answers from one of the nation's leading lawyers at the bottom of this hour.

New year, new job -- if you are pounding the pavement for a new challenge, we'll tell you who's hiring. That's at 18 minutes past the hour.

At 33 minutes past, we'll hear some of the wild things Fidel Castro has to say about President Bush and the United States. It's out there.

And at 51 minutes past, you can choose the shuffle, the mini or the big gigs. But is picking an iPod going to get your pocket picked?

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It is 6:14 Eastern.

Here's what's all new this morning.

Pope John Paul II reportedly had a peaceful night at the hospital. The official Italian news agency quoting a Vatican source as saying the pontiff slept rather well. And his spokesman says there is no reason to be alarmed. Aides say the pope has the flu.

A former guard at Abu Ghraib Prison says it was stress and not his superiors that led him to abuse prisoners. Sergeant Javal Davis pleaded guilty to battery and to lying to investigators. A sentencing hearing is scheduled for today.

In money news, Google's got the goods. The Internet search leader reports sales have doubled, exceeding $1 billion over the past year. And first quarter profits were a record $204 million.

In culture, New York Yankees great Yogi Berra has filed a $10 million lawsuit against TBS. He says the cable television network sullied his name by using it without his permission in a racy advertisement for its "Sex and the City" reruns. TBS is a sister network of CNN. In sports, Emmitt Smith may be ready to call it a career. Several reports say the NFL's all time rushing leader could announce his retirement as early as tomorrow. Smith, who spent the last two seasons with the Cardinals, says he wants to retire as a member of the Dallas Cowboys -- Chad.

MYERS: And good morning, Carol.

(WEATHER REPORT)

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

Is there such a thing as a second term curse?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They've been in the bubble too long. You lose touch with ordinary people and you even lose touch with reality.

(END VIDEO CLIP)

COSTELLO: Ooh, that's harsh.

Far beyond tonight's joint session of Congress, what else does the president have to face over the next four years?

(COMMERCIAL BREAK)

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

Uncle Sam wants you. A new report shows the federal government needs to go on a hiring spree over the next two years.

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

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

Well, a good potential spot for people looking for work. The federal government needs to add 150,000 jobs over the next two years as people start to retire who are already working there. This according to a study from the Partnership for Public Service and the National Academy of Public Administration released this week.

The survey included 24 departments and agencies, which represent nearly all of the federal workforce.

Now, the government is the largest employer in the United States. Some areas most in need is security and law enforcement, medical professions, scientists and management and administrative positions; also, accounting, budget, business jobs, including IRS revenue agents and tax examiners.

Now, this report isn't an indication of what the government will do, but it's designed to help the government focus on its all over hiring needs. So an interesting report there coming out this week. Meanwhile, looking at futures, set for a higher open after nice gains yesterday, the first trading day of February. The Dow finishing higher by 62 points.

Boeing, one of the Dow 30, reporting profits this morning just out. They did see a big drop in that quarter over quarter -- or year over year profits, and that's because of a program to shut down its 717 short haul airliner. So we're keeping an eye on Boeing's stock today -- Carol, back to you.

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

Thank you.

Coming up on DAYBREAK, back to Rome for more on our top story. Pope John Paul II remains hospitalized this morning with an acute respiratory infection. We'll check in with our CNN Vatican analyst.

(COMMERCIAL BREAK)

COSTELLO: New word from the Vatican this morning -- calm down, it says. There's no reason to be alarmed. Still, when the aging and ailing pope is rushed to the hospital, the world wants to know all the details.

CNN's Vatican analyst John Allen joins us now live from Rome -- good morning.

JOHN ALLEN, CNN VATICAN ANALYST: Hi, Carol.

COSTELLO: What do you make of this new statement released by the Vatican this morning?

ALLEN: Well, I think it is a deliberate and obvious attempt to, as you say, calm the world down. The Vatican is saying that the pope did, indeed, have an acute respiratory episode last evening and his doctor decided that it would be best for him to be taken to the Gemelli Hospital here in Rome. This is actually the ninth time the pope has been hospitalized there. John Paul jokingly refers to it as the third Vatican, after the Vatican itself and then his summer residence at Castel Gondolfo, because he's been there so often.

But they're trying to tell us that, in essence, this is not a big deal, that the pope got sort of a routine intervention last evening, that he rested comfortably during the evening. We're told that he did not have a CAT scan because it was not indicated, that the tests were all routine, that this morning he had a little bit of breakfast and that he celebrated mass. And all of that by way of trying to indicate that he's doing fine, he's going to pull through and they expect a speedy and full recovery.

COSTELLO: Of course, I hope all of that is true. But when you hear that an 84-year-old man with Parkinson's Disease has trouble breathing and has to be rushed to the hospital, that sounds pretty serious to me. ALLEN: Yes, Carol, you're absolutely right. I mean of those nine hospitalizations, this is the only time, actually, that the pope has ever been taken in on an emergency basis in the middle of the night. Remember, this happened at around 11:00 Rome time last night. And certainly given his history of respiratory problems, compounded by the Parkinson's Disease and his overall frailty, you know, you are absolutely right. I mean this has to be taken very, very seriously. And obviously that was the motive for getting him to the hospital, rather than simply trying to sort of tough it out at home.

On the other hand, what they're trying to indicate to us is that he never lost consciousness, that all of his tests came back normal and that they are fully expecting that he will be back on the job. As a matter of fact, I was talking to one of the pope's senior aides this morning and they are still hoping that next Tuesday he will be able to meet with Condoleezza Rice, the new American secretary of state, when she is here in Rome on a state visit.

So I think two messages have to be struck. One is this is serious business. The other is a note of caution, that this is a man with a long history of pulling through health crises before, and all indications are he's going to do it again this time.

COSTELLO: All right, John Allen live from the Vatican this morning.

Thank you.

Coming up, terrorism, Social Security and the war in Iraq -- tonight's State of the Union will lay out the president's goals. We'll check in with our White House correspondent after the break.

And an unlikely suspect behind the wheel of this swerving car. Hmmm. You won't believe who she is.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: And 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.

Now in the news, new word this morning on the pope's health. A Vatican spokesman says John Paul II's condition is stable and there is no cause for alarm. The pope is in a Rome hospital with a respiratory infection.

Within the last hour, word that Israeli Prime Minister Ariel Sharon has accepted an invitation from Egypt's president to attend a summit there next week. Also attending, Palestinian leader Mahmoud Abbas. The gathering is scheduled Tuesday at the Red Sea resort of Sharm el-Sheikh. Some alarming intelligence about North Korea. According to published reports this morning, U.S. officials believe North Korea might have exported nuclear material to Libya. The reports say the communist nation has also made more weapons grade plutonium.

Jesse Jackson joins the effort to free an American hostage in Iraq. Jackson says he'll try to help negotiate the release of Roy Hallums. The American contractor was seen on a recent video pleading for his life at gunpoint.

To the forecast center and Chad -- you know, we keep forgetting to mention it's Ground Hog Day.

MYERS: It is Ground Hog -- Punxsutawney Phil, you've got Buckeye Chuck, you know? You've got all -- you've got Beauregard Lee, you've got all these guys trying to get out there and seeing their shadow. But the official one actually out in Punxsutawney, Pennsylvania, not too far from Pittsburgh, definitely will see a shadow this morning.

(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 February 2, 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: The world's on watch as Pope John Paul II recovers from a bout with the flu. We take you live to Rome for the latest details straight ahead.
At first glance, it looks like a U.S. soldier in Iraq. But look again. We'll tell you about this bizarre hoax.

Plus, Michael Jackson gets plenty of support from his fans, but how will potential jurors see the pop star?

And watch your iPod. It's the latest electronic device to be targeted by thieves.

It is Wednesday, February 2.

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, the head of the Catholic Church is resting in a Rome hospital. An aide says there is no reason to be alarmed. Pope John Paul II spent a restful night after being rushed to the hospital with breathing problems. He's been battling the flu.

Just within the last hour, word out of Israel that Prime Minister Ariel Sharon has agreed to attend a summit in Egypt involving Palestinian leader Mahmoud Abbas. The summit is set for Tuesday at the Red Sea resort of Sharm el-Sheikh.

President Bush heads to Capitol Hill tonight for his State of the Union address. He's expected to push for changes in Social Security and talk about the elections in Iraq. The president also hopes to fill two cabinet posts soon. A divided Senate debated the nomination of Alberto Gonzales as attorney general. And Michael Chertoff goes before a Senate committee in four hours for his confirmation hearing as homeland security secretary.

To the forecast center and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT) COSTELLO: A bit of good news from the Vatican this morning. The pope is feeling better. He even participated in mass from his hospital bed today. Still, he is in the hospital and he's not been released.

CNN's Jim Bittermann joins us live from Rome with the latest on this.

Bring us up to date -- Jim.

JIM BITTERMANN, CNN CORRESPONDENT: Hi, Carol.

Well, that's -- in fact, the word from the Vatican is don't be alarmed. That's the quote of the morning in the Vatican. But the fact is the Vatican itself was alarmed enough last night, about 13 hours ago, that they decided to move the pope from the Vatican to the Gemelli Hospital here about two miles away from the vote.

It should be said that the Vatican has its own clinic and has quite a good deal of medical equipment that's been moved in there over the years as the pope has increasingly suffered the Parkinson's Disease.

But apparently last night he had real problems breathing, something that's called laryngeal spasms, a shortness of breath caused by muscular spasms. And doctors tell us that, in fact, it can be quite dramatic. We're not sure what happened with the pope, but in other cases you've got -- the patient can actually turn blue from the lack of breath.

So whatever happened last night, it was dramatic enough that the Vatican chose to move the pope here.

Now, this morning, the pope's spokesman says we shouldn't be alarmed, that the pope had slept some during the night. He confirmed that he is suffering from a respiratory infection, but that he also had a small breakfast this morning with coffee, and, as you mentioned, was preparing to celebrate mass as the papal spokesman was leaving.

And I'd just add, Carol, that, you know, one of the things that we heard all along here as the pope had suffered from Parkinson's Disease is that one of the worst things that can happen to Parkinson's patients is to get a respiratory infection because they have very little muscle control as they suffer increasingly from the disease. They have very little muscle control in sort of the lung and throat region, which accounts for why the pope has had problems breathing over the years.

So I would say that we're going to be watching this very carefully here throughout the day -- Carol.

COSTELLO: Yes, because doesn't the Vatican have a tendency to make things sound a bit better than they actually are, Jim?

BITTERMANN: In fact, I mean there's an old expression, an old expression around the Vatican that says the pope is never sick until he dies.

COSTELLO: Oh, Jim Bittermann live in Rome this morning.

Thank you.

Stay with CNN throughout the day for coverage on the pope's condition. You can also visit cnn.com for more, including a pictorial history of John Paul II.

It looks like Mideast peace efforts are moving forward. We're getting word this morning of an upcoming summit involving some key players.

For the latest, let's go straight to Jerusalem and CNN's Guy Raz -- good morning, Guy.

GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.

Indeed, it appears as if the momentum is gaining traction. The Israeli prime minister, Ariel Sharon, has accepted an offer to attend a Middle East peace summit in Egypt, the southern Egyptian resort town of Sharm el-Sheikh, early next week. That would include the Egyptian president, Hosni Mubarak, and the newly elected Palestinian president, Mahmoud Abbas. And it would be the first time in more than two years that such a high level meeting between Israeli and Palestinian officials has taken place at all, and the first official visit for the Israeli prime minister, Ariel Sharon, to Egypt since he was elected more than four years ago.

Now, relations between Israel and Egypt have been experiencing something of a warming trend in the past several months, particularly since Palestinian President Mahmoud Abbas was elected last month. Egypt wants to play a significant role in trying to bring about a resolution to the Israeli-Palestinian conflict. Egypt is the most populous Arab country and perhaps one of the most important politically, and also one of two Arab countries with a peace treaty, albeit a cold one, with Israel.

Now, what -- now, these developments will cap a week of very significant events taking place in the region. U.S. Secretary of State Condoleezza Rice will arrive to Jerusalem on Sunday. She'll hold bilateral talks with Israeli and Palestinian leaders in an effort, essentially, to bolster the momentum that's been created between Israelis and Palestinians since the election of Mahmoud Abbas.

Now, shortly after she leaves, we expect the Israeli prime minister, Ariel Sharon, to fly to Egypt to attend that summit. We shouldn't expect any major breakthroughs in terms of resolving the Israeli-Palestinian conflict, but certainly it underlines the momentum that has been established in this region for a return to the negotiating table -- Carol.

COSTELLO: Guy Raz reporting live from Jerusalem this morning.

Thank you. Back here in the States, in Washington, President Bush is gearing up for his State of the Union speech. He's been practicing pretty intensely, as you can see, for the past two days. Aides say the president will offer new details about his plans to revamp Social Security.

Expect some opposition from the Democrats. The Senate minority leader says flat out it will not happen.

The president is also expected to repeat a key theme from his inaugural address.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE SPOKESMAN: I think you can expect he'll continue to talk about the advance of freedom in the world. We have seen tremendous progress made when it comes to the advance of freedom in the world in the last few months. We've seen elections take place in Afghanistan. We've seen elections take place in the Palestinian territories. And we saw an historic election take place just this weekend in Iraq.

(END VIDEO CLIP)

COSTELLO: Our prime time coverage of the State of the Union address begins at 8:00 p.m. Eastern right here on CNN.

Many Democrats are calling for an exit strategy, a timetable. But Defense Secretary Donald Rumsfeld says it would be foolish to try to nail down a date when U.S. troops would be able to come home from Iraq.

In his first CNN interview since the Iraqi elections, the defense chief calls U.S. troop departure condition based.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: Obviously, the answer to your question is not a month or a year, it is a -- it's condition based. It's based on when the Iraqi government and their security forces have developed the capability, the capacity to provide for the security of their people. We've been working very hard on it. There are over 130,000 Iraqi security forces in the Ministry of Interior and in the Ministry of Defense. There's another 70,000 site protection people.

So a lot has been done.

(END VIDEO CLIP)

COSTELLO: More than 1,400 American troops have died in Iraq so far.

Always in Iraq there is the fear of being taken hostage by insurgents. But there is a new twist in this deadly game a doll named Cody, a doll. Our Pentagon correspondent, Barbara Starr, has the details for you.

(BEGIN VIDEO TAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): This Islamic Web site posted the statement claiming insurgents captured a U.S. soldier named John Adam after a firefight and were planning to behead him. This photograph accompanied the statement, a photograph CNN never aired because it could not confirm a U.S. soldier was missing. Now, it appears it was a hoax.

An action figure toy called Special Ops Cody, with a uniform of doll clothes and toy guns. The manufacturer says it looks like a toy made for the U.S. military exchange stores.

LIAM CUSACK, DRAGON MODELS USA: When we looked at it, we noticed that it looked, you know -- it beared a striking resemblance to an action figure that we had produced about a year and a half ago, around a year ago, I guess. We still don't want to come out and say that it is, you know, 100 percent for sure our action figure, but I mean it does bear, you know, like I said, a striking resemblance to an action figure that we did make.

STARR: But the military had to take it all very seriously, poring over the photograph, wondering about the uniform. The ammo best did not look like anything in U.S. military inventory. One senior officer saying, "We didn't know for sure. We had to start counting heads in Iraq to see if anybody was missing."

The Pentagon was not amused. They remind everyone that this is Army Specialist Keith Matthew Maupin, a U.S. Army soldier missing in Iraq since he was captured last year. His fate very much unknown.

(on camera): Officials say this photo could have been from insurgents or someone who hacked into a Web site. They don't really know. But any time a U.S. military person is reported captured, U.S. officials say they will pursue the matter.

Barbara Starr, CNN, the Pentagon.

(END VIDEO TAPE)

COSTELLO: Turning now to the Michael Jackson case.

Jury selection is moving relatively quickly in his child molestation case. On the second day of the process, the judge said enough potential jurors have been picked and now they can be whittled down. Court resumes next Monday.

As for Jackson reporters, they say he seemed to be paying close attention to what was going on.

(BEGIN VIDEO CLIP)

JANE VELEZ-MITCHELL, REPORTER, "CELEBRITY JUSTICE": I was really impressed with this very lengthy proceeding this morning. He was highly focused. He was taking notes. He was very engaged. He did not seem to be daydreaming. And I really got the sense that he is aware that he is really fighting for his life and there's sort of a seriousness that emanates out of him that we haven't seen previously.

So that really struck me.

(END VIDEO CLIP)

COSTELLO: But just how tough will it be to seat an impartial jury? We'll get some answers from one of the nation's leading lawyers at the bottom of this hour.

New year, new job -- if you are pounding the pavement for a new challenge, we'll tell you who's hiring. That's at 18 minutes past the hour.

At 33 minutes past, we'll hear some of the wild things Fidel Castro has to say about President Bush and the United States. It's out there.

And at 51 minutes past, you can choose the shuffle, the mini or the big gigs. But is picking an iPod going to get your pocket picked?

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It is 6:14 Eastern.

Here's what's all new this morning.

Pope John Paul II reportedly had a peaceful night at the hospital. The official Italian news agency quoting a Vatican source as saying the pontiff slept rather well. And his spokesman says there is no reason to be alarmed. Aides say the pope has the flu.

A former guard at Abu Ghraib Prison says it was stress and not his superiors that led him to abuse prisoners. Sergeant Javal Davis pleaded guilty to battery and to lying to investigators. A sentencing hearing is scheduled for today.

In money news, Google's got the goods. The Internet search leader reports sales have doubled, exceeding $1 billion over the past year. And first quarter profits were a record $204 million.

In culture, New York Yankees great Yogi Berra has filed a $10 million lawsuit against TBS. He says the cable television network sullied his name by using it without his permission in a racy advertisement for its "Sex and the City" reruns. TBS is a sister network of CNN. In sports, Emmitt Smith may be ready to call it a career. Several reports say the NFL's all time rushing leader could announce his retirement as early as tomorrow. Smith, who spent the last two seasons with the Cardinals, says he wants to retire as a member of the Dallas Cowboys -- Chad.

MYERS: And good morning, Carol.

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

Is there such a thing as a second term curse?

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UNIDENTIFIED MALE: They've been in the bubble too long. You lose touch with ordinary people and you even lose touch with reality.

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COSTELLO: Ooh, that's harsh.

Far beyond tonight's joint session of Congress, what else does the president have to face over the next four years?

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

Uncle Sam wants you. A new report shows the federal government needs to go on a hiring spree over the next two years.

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

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

Well, a good potential spot for people looking for work. The federal government needs to add 150,000 jobs over the next two years as people start to retire who are already working there. This according to a study from the Partnership for Public Service and the National Academy of Public Administration released this week.

The survey included 24 departments and agencies, which represent nearly all of the federal workforce.

Now, the government is the largest employer in the United States. Some areas most in need is security and law enforcement, medical professions, scientists and management and administrative positions; also, accounting, budget, business jobs, including IRS revenue agents and tax examiners.

Now, this report isn't an indication of what the government will do, but it's designed to help the government focus on its all over hiring needs. So an interesting report there coming out this week. Meanwhile, looking at futures, set for a higher open after nice gains yesterday, the first trading day of February. The Dow finishing higher by 62 points.

Boeing, one of the Dow 30, reporting profits this morning just out. They did see a big drop in that quarter over quarter -- or year over year profits, and that's because of a program to shut down its 717 short haul airliner. So we're keeping an eye on Boeing's stock today -- Carol, back to you.

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

Thank you.

Coming up on DAYBREAK, back to Rome for more on our top story. Pope John Paul II remains hospitalized this morning with an acute respiratory infection. We'll check in with our CNN Vatican analyst.

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COSTELLO: New word from the Vatican this morning -- calm down, it says. There's no reason to be alarmed. Still, when the aging and ailing pope is rushed to the hospital, the world wants to know all the details.

CNN's Vatican analyst John Allen joins us now live from Rome -- good morning.

JOHN ALLEN, CNN VATICAN ANALYST: Hi, Carol.

COSTELLO: What do you make of this new statement released by the Vatican this morning?

ALLEN: Well, I think it is a deliberate and obvious attempt to, as you say, calm the world down. The Vatican is saying that the pope did, indeed, have an acute respiratory episode last evening and his doctor decided that it would be best for him to be taken to the Gemelli Hospital here in Rome. This is actually the ninth time the pope has been hospitalized there. John Paul jokingly refers to it as the third Vatican, after the Vatican itself and then his summer residence at Castel Gondolfo, because he's been there so often.

But they're trying to tell us that, in essence, this is not a big deal, that the pope got sort of a routine intervention last evening, that he rested comfortably during the evening. We're told that he did not have a CAT scan because it was not indicated, that the tests were all routine, that this morning he had a little bit of breakfast and that he celebrated mass. And all of that by way of trying to indicate that he's doing fine, he's going to pull through and they expect a speedy and full recovery.

COSTELLO: Of course, I hope all of that is true. But when you hear that an 84-year-old man with Parkinson's Disease has trouble breathing and has to be rushed to the hospital, that sounds pretty serious to me. ALLEN: Yes, Carol, you're absolutely right. I mean of those nine hospitalizations, this is the only time, actually, that the pope has ever been taken in on an emergency basis in the middle of the night. Remember, this happened at around 11:00 Rome time last night. And certainly given his history of respiratory problems, compounded by the Parkinson's Disease and his overall frailty, you know, you are absolutely right. I mean this has to be taken very, very seriously. And obviously that was the motive for getting him to the hospital, rather than simply trying to sort of tough it out at home.

On the other hand, what they're trying to indicate to us is that he never lost consciousness, that all of his tests came back normal and that they are fully expecting that he will be back on the job. As a matter of fact, I was talking to one of the pope's senior aides this morning and they are still hoping that next Tuesday he will be able to meet with Condoleezza Rice, the new American secretary of state, when she is here in Rome on a state visit.

So I think two messages have to be struck. One is this is serious business. The other is a note of caution, that this is a man with a long history of pulling through health crises before, and all indications are he's going to do it again this time.

COSTELLO: All right, John Allen live from the Vatican this morning.

Thank you.

Coming up, terrorism, Social Security and the war in Iraq -- tonight's State of the Union will lay out the president's goals. We'll check in with our White House correspondent after the break.

And an unlikely suspect behind the wheel of this swerving car. Hmmm. You won't believe who she is.

We'll be right back.

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COSTELLO: And 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.

Now in the news, new word this morning on the pope's health. A Vatican spokesman says John Paul II's condition is stable and there is no cause for alarm. The pope is in a Rome hospital with a respiratory infection.

Within the last hour, word that Israeli Prime Minister Ariel Sharon has accepted an invitation from Egypt's president to attend a summit there next week. Also attending, Palestinian leader Mahmoud Abbas. The gathering is scheduled Tuesday at the Red Sea resort of Sharm el-Sheikh. Some alarming intelligence about North Korea. According to published reports this morning, U.S. officials believe North Korea might have exported nuclear material to Libya. The reports say the communist nation has also made more weapons grade plutonium.

Jesse Jackson joins the effort to free an American hostage in Iraq. Jackson says he'll try to help negotiate the release of Roy Hallums. The American contractor was seen on a recent video pleading for his life at gunpoint.

To the forecast center and Chad -- you know, we keep forgetting to mention it's Ground Hog Day.

MYERS: It is Ground Hog -- Punxsutawney Phil, you've got Buckeye Chuck, you know? You've got all -- you've got Beauregard Lee, you've got all these guys trying to get out there and seeing their shadow. But the official one actually out in Punxsutawney, Pennsylvania, not too far from Pittsburgh, definitely will see a shadow this morning.

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