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CNN Live At Daybreak
Car Bomb Outside of Convention Center in Spain; Secretary of State Condoleezza Rice Arrives in Brussels, Belgium
Aired February 09, 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: A foreshadowing phone call and then this -- a car bomb outside of a convention center in Spain.
Eleven Marines received Purple Hearts. Now the Pentagon wants all of them back.
And then later, a Super Bowl ad that probably left many of you scratching your heads. And the people behind it wanted it that way.
It is Wednesday, February 9.
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, suburban Madrid has been rocked by a powerful car bomb. It went off near the Madrid convention center about two and a half hours ago, wounding more than 30 people. We'll go to our reporter on the scene in just a few minutes.
In Iraq, a correspondent for the Arab language TV network Al- Hurra was killed when gunmen burst into his home and shot him to death. Al-Hurra is funded by the United States.
Also in Baghdad this hour, a search is going on for a senior official with Iraq's Interior Ministry. He was kidnapped today as he was leaving home for his office.
And today is the first time in the 26 years of his leadership that the pontiff will miss prayers marking the beginning of Lent. The pope is spending Ash Wednesday in the hospital. The Vatican says the pope's health continues to improve.
To the forecast center now -- good morning, Chad.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: We might know exactly what's going on in Brussels right now. We believe Secretary of State Condoleezza Rice has arrived in Brussels, Belgium. It happened just a short time ago. It's the latest stop in her fence mending trip to Europe. Our CNN State Department correspondent, Andrea Koppel, is there -- Andrea, has the secretary of state arrived at NATO?
ANDREA KOPPEL, CNN CORRESPONDENT: No, she's not actually at NATO as yet. She's having a meeting right now just here at the airport with the foreign ministers of Brussels. But she'll be heading shortly over to NATO headquarters.
As you mentioned, Carol, this is her second to last stop on her 10 city tour of Europe and the Middle East. Here in Brussels, of course, the headquarters of the transatlantic alliance, the 26-member alliance that the United States is hoping to get more involved in particular in the training of senior officers in the Iraqi Army. There is some training that has begun, but not to the breadth or to the extent that the U.S. would like. And the hope is eventually to get a training mission up and running inside of Iraq right now.
There are other big issues on Secretary Rice's agenda here in NATO. And after she has meetings at NATO headquarters, she'll also be meeting with the head of the European Union. And that is primarily to try to convince the Europeans, although most don't think she will, to not lift their arms embargo against China. That embargo has been in place since 1989, Chinese military cracked down on students and others who were demonstrating for democracy in Tiananmen Square.
The expectation is that the U.S. may be able to get Europeans to strengthen their code of conduct. The Americans saying this is really about human rights. Why should you lift an arms embargo against China when its human rights is still so poor? Others say the concern is more strategic and the concern that this would start an arms race with Taiwan.
But really this is, again, part of her fence mending tour, part of her kiss and make up with many European allies who the U.S. has had strained relationships with since the U.S. invasion of Iraq.
The one area where NATO has been very helpful has been in the post-invasion of Afghanistan. There are about 20, 7,900 NATO troops that are in Afghanistan helping to try to keep the peace there.
So this is, you know, this is another sort of symbolic stop on her swing through, Carol. And one final stop before we head home, and that is in Luxembourg. Luxembourg right now has the presidency of the 25-member European Union -- Carol.
COSTELLO: Andrea Koppel reporting live from Brussels, Belgium this morning.
Thank you.
Defense Secretary Donald Rumsfeld is one of many Bush officials on that diplomatic duty in Europe. Rumsfeld is in France for an informal meeting with NATO defense ministers. He's also having lunch with American sailors today aboard the USS O'Bannon.
More now on those two incidents in Iraq -- the kidnapping of a senior government official and the shooting death of a reporter working for an American-funded TV network.
Here's CNN's senior international correspondent Nic Robertson -- hello, Nic.
NIC ROBERTSON, CNN CORRESPONDENT: Hello.
Good morning, Carol.
Well, there seems to be a developing situation here in Baghdad at the moment. You can probably see behind me some smoke billowing up about a mile away. That is close to an area known as Haifa Street, a particularly contentious area where insurgents are known to be able to roam with relative free will.
What we're hearing are a number of explosions. Gunfire has been going on in that area for perhaps the last half an hour or so. The big cloud of smoke billowing up. It's not clear what's causing that. There's a lot of sirens going off from vehicles. There are several surveillance helicopters up in the area. A couple of loud detonations just a few minutes ago. So it does seem as if there's some kind of extended gun battle going on in that area.
The scope and size of that battle is not clear at this time. It is, in as much as we can hear this far away, relatively unusual. It's not atypical, though, for there to be contacts between insurgents there and between U.S. troops. But, again a developing situation. Not clear exactly what that is.
As you say, in the southern town of Basra today, a journalist working for Al-Hurra, a U.S.-funded television, Arabic language television network, was killed. His son also killed when gunmen stormed into his house earlier in the day. And we've heard also from coalition officials in Mosul that one of their task force freedom soldiers was killed in a small arms gun battle on Sunday. And another soldier at a U.S. base on Tuesday was found dead from gunshot wounds. Officials not saying what caused those particular injuries -- Carol.
COSTELLO: And when you get more information on what's happening behind you, we'll get back to you.
Nic Robertson live in Baghdad this morning.
We have a little more information on what's happening in Spain this morning. A powerful car bomb has exploded near the Spanish capital, wounding at least 30 people.
CNN's Madrid bureau chief Al Goodman now on the scene of that bombing.
What are you seeing there -- Al.
AL GOODMAN, CNN CORRESPONDENT: Carol, we're seeing a six story red brick glass office building that houses at least an international computer company, Bull (ph). I've counted 40 windows that have been blown out of that. The car bomb was below that. Just a couple of long blocks in the background is the main Madrid convention center, where later this day King Juan Carlos, his wife Queen Sophia and the visiting Mexican president, Vicente Fox, were due to inaugurate the annual big contemporary arts fair.
Now, a Madrid city official has just come here to the scene to tell reporters that the injury count, Carol, is now at 39, although he said all of those people are said to be just slightly injured. This is blamed on the Basque separatist group ETA, which made a warning call to a Basque newspaper in northern Spain, which quickly alerted authorities.
They were clearing the area when the bomb went off at 9:30 a.m. local time, about two and a half hours ago -- Carol.
COSTELLO: Al Goodman reporting live from Madrid, Spain this morning.
Here in the United States, President Bush is staying on missing, putting Social Security reform at the top of his to do list. At a speech in Detroit, he said all options are on the table to pay for Social Security, with the exception of raising payroll taxes. He said it's up to Congress to figure out those options.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If you see a train wreck coming, you ought to be saying what are you going to do about it, Mr. Congressman or Madam Congressman? Are you going to sit there and let the train run over younger workers or are you going to act? I'm calling upon the Congress to act.
(END VIDEO CLIP)
COSTELLO: President Bush sent his budget to Congress this week. Some legislators from both parties have been attacking the spending cuts the president has proposed.
Still to come on DAYBREAK, come see the essential side of Sears, a department store facelift.
Plus, one "Apprentice" wannabe has two words for Donald Trump -- you're biased.
And we'll go live to Rome for an update on the pope's health on this Ash Wednesday.
And Purple Hearts received and then taken away. How could such a thing happen to men who served in Iraq?
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's 6:13 Eastern.
Here's what's all new this morning.
We are following a developing story out of Madrid, Spain. A powerful car bomb went off this morning near the city's main convention center. More than 30 people are wounded.
The testimony in the murder trial of actor Robert Blake is reading more like a mobster movie script. A former street thug who became a minister testified that he thought Blake wanted him to "whack somebody." Blake is accused of killing his wife.
In money news, Krispy Kreme may be running low on dough. The donut maker announced a round of job cuts in an effort to save money. Slow sales may also force the company to close some of its more than 400 stores.
In culture, Ben Stiller has been named host of the upcoming Kid's Choice Awards on Nickelodeon. The 18th annual awards let kids vote for their favorites in entertainment and sports. Online voting for the awards starts March 7.
In sports, New England Patriots assistant coach Romeo Crennel missed the Super Bowl victory parade back in Boston. Instead, he was being introduced as the new head coach of the Cleveland Browns. This is the first head coaching job for the 57-year-old Crennel -- Chad.
MYERS: Congrats to him. I still think he -- it would have been nice if they would have let him go on the parade. But that's (UNINTELLIGIBLE).
(WEATHER REPORT)
COSTELLO: We have been awaiting Condoleezza Rice's arrival in Brussels, Belgium at NATO and finally we have the picture we've been looking for. This is the secretary of state as she arrives at NATO in Brussels. She's going to go in and have a luncheon a little later, an informal luncheon with the foreign ministers there, probably to ask for help in Iraq and continue on her fence mending tour of Europe. We'll have more if the secretary of state comes out and says anything to reporters. Of course, we'll take you back to Brussels live.
Today is Ash Wednesday, marking the beginning of Lent.
Our Alessio Vinci live from Rome with the latest on the pope's condition.
Also ahead, Marines honored with Purple Hearts. Now the military says it wants the medals back. The explanation, just ahead on DAYBREAK.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Time now for a little "Business Buzz."
What will Sears and Kmart stores look like once the two retailers complete their merger?
Carrie Lee is live at the Nasdaq market site to tell us -- good morning, Carrie.
CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.
Well, Sears and Kmart, as you said, agreed to a merger and there's a new store format coming out called Sears Essentials. And it could be a hint of what future stores are going to look like once these companies merge.
Now, Sears Essentials is going to include mostly off mall locations, a mid-sized store format and they'll feature most of the items found in a traditional Sears store, things like apparel, electronics and tools. Also, Sears Essentials will have more services -- automotive and pharmacies. A pharmacy is something that Sears hasn't gotten into before. So they're branching out, trying to change their business. This as a lot of retailers have been struggling. The stores are going to be on one level and there's going to be a main aisle circling the sales floor. This is known as a racetrack layout and so Sears really trying to do what it can to stay abreast of current trends.
So the Sears Essentials stores will start debuting in the spring of 2005. so that's the latest there.
Turning to market futures, I think you touched on it, Carol, we could see weakness in technology stocks today. Futures are actually looking at tad weak right now because of Cisco Systems' profit report last night. They met the profit estimate on Wall Street, but sales came in a little bit light. So techs looking a little weak. But after two lackluster trading days, futures across-the-board are actually looking pretty flat.
And that's the latest from here -- back to you.
COSTELLO: All right, Carrie Lee live at the Nasdaq market site.
Thank you.
Time for some "Legal Briefs."
A 32-year-old lawyer from St. Louis has a missing for Donald Trump -- you're biased. James Schottel is a paraplegic who has sued the producers of Trump's reality show, "The Apprentice." He hasn't been turned down by the show, but says he just wants to be considered for the show. Still, Schottel is claiming the show discriminates against him and violates the Americans With Disabilities Act.
In Miami Beach, look out Anna. A 40-year-old homeless man faces a court hearing on Friday for alleged stalking tennis star Anna Kournikova. Police say William Lepeska was found lounging in the buff at a private poll near Kournikova's home. Police say he screamed, "Anna, save me!" when he was arrested.
Elizabeth Traylor gets to keep her Van Gogh. A federal judge has thrown out a lawsuit seeking to get Taylor to hand over an 1889 painting by the artist. The heirs of a German woman claimed to be the rightful owners. Taylor paid $257,000 for Van Gogh's "View of the Asylum and Chapel" at auction in 1963. It's now worth millions.
And the pope remains hospitalized on this Ash Wednesday. Straight ahead on DAYBREAK, we'll have the latest on his condition and a live report from Rome.
(COMMERCIAL BREAK)
COSTELLO: We have a little bit more information about what's going on in central Baghdad right now.
Let's get right to the pictures.
You see the thick black smoke here. As I said, this is in central Baghdad, on Haifa Street. You could see it right behind Nic Robertson as he was reporting a short time ago. Apparently U.S. troops and insurgents have been in an extended gun battle. You can hear explosions and gunfire for miles away. Not so unusual that there would be a gun battle in this particular place in Baghdad. But, of course, correspondents can't get close enough to actually see what's going on. All that we know, U.S. troops in a gun battle with insurgents. We don't know if there are casualties, don't know if there are fatalities. When we get more information and find out exactly why there is this thick, billowing, black smoke, of course, we'll pass it along to you.
Let's talk about the pope now.
An ailing Pope John Paul II missed Ash Wednesday service today. It is a first for him.
Let's head live to Rome and our Alessio Vinci for an update -- good morning, Alessio.
ALESSIO VINCI, CNN CORRESPONDENT: Good morning, Carol.
Well, doctors have persuaded Pope John Paul II to remain a few more days in the hospital. We are expecting a new bulletin tomorrow at around this time. But for the time being, we do know that the pope will remain in hospital. And that is why, as you said, for the first time in his long papacy, Pope John Paul II was unable to preside over liturgy marking Ash Wednesday. Ash Wednesday, of course, is the beginning of Lent, the traditional period of penitence, fasting and prayer for Christians around the world.
It is unclear whether the pope, during this morning, managed to prepare or to preside over a special service inside his bedroom at the clinic, at the Gemelli Hospital. We do know, however, from Vatican officials, that the pope does celebrate every morning a mass for the doctors and the nurses who are taking care of him at this time. Inside the Vatican, in St. Peter's Square Basilica, St. Peter's Basilica, the pope was substituted by an American cardinal, Cardinal James Stafford. The cardinal said at the beginning of the liturgy, "That we feel the pope's spiritual presence inside St. Peter's Basilica." And at the end of the liturgy, the cardinal also held a special prayer for the pope, wishing him health and comfort so that he can continue his pastoral ministry for the good of the church and all of humanity. That was the prayer that the cardinal recited for John Paul II.
Cardinal Stafford is one of two American cardinals who hold a high position in the Vatican curiae. The Vatican curiae is basically the government that rules the Vatican. He was involved in organizing several World Youth Days, including in 1993 in his home town of Denver. That was considered by Vatican officials a huge success and that is when, after that, Cardinal Stafford moved here to Rome. And he is now the head of the Apostolic Penitentiary, which is one of three Vatican courts, in this case, ruling on secret matters of conscience.
Now, we also have a message, a Lenten message that was released by Pope John Paul II, dedicated this year to the gift of longevity.
The pope said: "People should always remain open and welcoming toward older people, especially those who are weak, sick and suffering."
The pope sending a message around the world, but also describing very much his own condition.
Back to you -- Carol.
COSTELLO: Very fitting.
Alessio Vinci live in Rome this morning.
Thank you.
Injured Marines face an unusual prospect -- turning in their Purple Hearts.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It kind of seemed like I've told a lie, almost. You know, I've put in job applications that says I am a Purple Heart recipient.
(END VIDEO CLIP)
COSTELLO: How did this happen and what happens to those medals now?
And the man who put World Trade Center victims and Nazis all in one sentence -- there he is -- he's speaking out. We'll hear how he's defending himself.
(COMMERCIAL BREAK)
COSTELLO: Still to come on DAYBREAK, Baltimore's mayor isn't pulling any punches when it comes to President Bush's budget. Oooh, he's using the word terrorist to describe it. We'll tell you exactly what he had to say. There he is.
Also, would you like a pillow? Tough. We'll tell you how one major airline hopes to save a few bucks.
It is Wednesday, February 9.
You are watching DAYBREAK.
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, a powerful car bomb blast in Spain this morning. It went off near the Madrid convention center about three hours ago, wounding more than 40 people. Someone claiming to be with the Basque group reportedly phoned in a warning just before the blast.
In Iraq, gunmen burst into the home of a TV reporter this morning, shortage him dead. It happened in the southern city of Basra. The reporter worked for an Arab language network funded by the United States.
Condoleezza Rice is nearing the end of her first trip as secretary of state. She's now having an informal meeting with NATO foreign ministers in Brussels, Belgium.
And Chinese communities across the world are ringing in a new year. The Year of the Rooster began with travel and celebration. People are hoping the Year of the Rooster will be a time of peace and harmony.
To the forecast center and Chad -- good morning.
MYERS: Good morning, Carol.
(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 9, 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: A foreshadowing phone call and then this -- a car bomb outside of a convention center in Spain.
Eleven Marines received Purple Hearts. Now the Pentagon wants all of them back.
And then later, a Super Bowl ad that probably left many of you scratching your heads. And the people behind it wanted it that way.
It is Wednesday, February 9.
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, suburban Madrid has been rocked by a powerful car bomb. It went off near the Madrid convention center about two and a half hours ago, wounding more than 30 people. We'll go to our reporter on the scene in just a few minutes.
In Iraq, a correspondent for the Arab language TV network Al- Hurra was killed when gunmen burst into his home and shot him to death. Al-Hurra is funded by the United States.
Also in Baghdad this hour, a search is going on for a senior official with Iraq's Interior Ministry. He was kidnapped today as he was leaving home for his office.
And today is the first time in the 26 years of his leadership that the pontiff will miss prayers marking the beginning of Lent. The pope is spending Ash Wednesday in the hospital. The Vatican says the pope's health continues to improve.
To the forecast center now -- good morning, Chad.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: We might know exactly what's going on in Brussels right now. We believe Secretary of State Condoleezza Rice has arrived in Brussels, Belgium. It happened just a short time ago. It's the latest stop in her fence mending trip to Europe. Our CNN State Department correspondent, Andrea Koppel, is there -- Andrea, has the secretary of state arrived at NATO?
ANDREA KOPPEL, CNN CORRESPONDENT: No, she's not actually at NATO as yet. She's having a meeting right now just here at the airport with the foreign ministers of Brussels. But she'll be heading shortly over to NATO headquarters.
As you mentioned, Carol, this is her second to last stop on her 10 city tour of Europe and the Middle East. Here in Brussels, of course, the headquarters of the transatlantic alliance, the 26-member alliance that the United States is hoping to get more involved in particular in the training of senior officers in the Iraqi Army. There is some training that has begun, but not to the breadth or to the extent that the U.S. would like. And the hope is eventually to get a training mission up and running inside of Iraq right now.
There are other big issues on Secretary Rice's agenda here in NATO. And after she has meetings at NATO headquarters, she'll also be meeting with the head of the European Union. And that is primarily to try to convince the Europeans, although most don't think she will, to not lift their arms embargo against China. That embargo has been in place since 1989, Chinese military cracked down on students and others who were demonstrating for democracy in Tiananmen Square.
The expectation is that the U.S. may be able to get Europeans to strengthen their code of conduct. The Americans saying this is really about human rights. Why should you lift an arms embargo against China when its human rights is still so poor? Others say the concern is more strategic and the concern that this would start an arms race with Taiwan.
But really this is, again, part of her fence mending tour, part of her kiss and make up with many European allies who the U.S. has had strained relationships with since the U.S. invasion of Iraq.
The one area where NATO has been very helpful has been in the post-invasion of Afghanistan. There are about 20, 7,900 NATO troops that are in Afghanistan helping to try to keep the peace there.
So this is, you know, this is another sort of symbolic stop on her swing through, Carol. And one final stop before we head home, and that is in Luxembourg. Luxembourg right now has the presidency of the 25-member European Union -- Carol.
COSTELLO: Andrea Koppel reporting live from Brussels, Belgium this morning.
Thank you.
Defense Secretary Donald Rumsfeld is one of many Bush officials on that diplomatic duty in Europe. Rumsfeld is in France for an informal meeting with NATO defense ministers. He's also having lunch with American sailors today aboard the USS O'Bannon.
More now on those two incidents in Iraq -- the kidnapping of a senior government official and the shooting death of a reporter working for an American-funded TV network.
Here's CNN's senior international correspondent Nic Robertson -- hello, Nic.
NIC ROBERTSON, CNN CORRESPONDENT: Hello.
Good morning, Carol.
Well, there seems to be a developing situation here in Baghdad at the moment. You can probably see behind me some smoke billowing up about a mile away. That is close to an area known as Haifa Street, a particularly contentious area where insurgents are known to be able to roam with relative free will.
What we're hearing are a number of explosions. Gunfire has been going on in that area for perhaps the last half an hour or so. The big cloud of smoke billowing up. It's not clear what's causing that. There's a lot of sirens going off from vehicles. There are several surveillance helicopters up in the area. A couple of loud detonations just a few minutes ago. So it does seem as if there's some kind of extended gun battle going on in that area.
The scope and size of that battle is not clear at this time. It is, in as much as we can hear this far away, relatively unusual. It's not atypical, though, for there to be contacts between insurgents there and between U.S. troops. But, again a developing situation. Not clear exactly what that is.
As you say, in the southern town of Basra today, a journalist working for Al-Hurra, a U.S.-funded television, Arabic language television network, was killed. His son also killed when gunmen stormed into his house earlier in the day. And we've heard also from coalition officials in Mosul that one of their task force freedom soldiers was killed in a small arms gun battle on Sunday. And another soldier at a U.S. base on Tuesday was found dead from gunshot wounds. Officials not saying what caused those particular injuries -- Carol.
COSTELLO: And when you get more information on what's happening behind you, we'll get back to you.
Nic Robertson live in Baghdad this morning.
We have a little more information on what's happening in Spain this morning. A powerful car bomb has exploded near the Spanish capital, wounding at least 30 people.
CNN's Madrid bureau chief Al Goodman now on the scene of that bombing.
What are you seeing there -- Al.
AL GOODMAN, CNN CORRESPONDENT: Carol, we're seeing a six story red brick glass office building that houses at least an international computer company, Bull (ph). I've counted 40 windows that have been blown out of that. The car bomb was below that. Just a couple of long blocks in the background is the main Madrid convention center, where later this day King Juan Carlos, his wife Queen Sophia and the visiting Mexican president, Vicente Fox, were due to inaugurate the annual big contemporary arts fair.
Now, a Madrid city official has just come here to the scene to tell reporters that the injury count, Carol, is now at 39, although he said all of those people are said to be just slightly injured. This is blamed on the Basque separatist group ETA, which made a warning call to a Basque newspaper in northern Spain, which quickly alerted authorities.
They were clearing the area when the bomb went off at 9:30 a.m. local time, about two and a half hours ago -- Carol.
COSTELLO: Al Goodman reporting live from Madrid, Spain this morning.
Here in the United States, President Bush is staying on missing, putting Social Security reform at the top of his to do list. At a speech in Detroit, he said all options are on the table to pay for Social Security, with the exception of raising payroll taxes. He said it's up to Congress to figure out those options.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If you see a train wreck coming, you ought to be saying what are you going to do about it, Mr. Congressman or Madam Congressman? Are you going to sit there and let the train run over younger workers or are you going to act? I'm calling upon the Congress to act.
(END VIDEO CLIP)
COSTELLO: President Bush sent his budget to Congress this week. Some legislators from both parties have been attacking the spending cuts the president has proposed.
Still to come on DAYBREAK, come see the essential side of Sears, a department store facelift.
Plus, one "Apprentice" wannabe has two words for Donald Trump -- you're biased.
And we'll go live to Rome for an update on the pope's health on this Ash Wednesday.
And Purple Hearts received and then taken away. How could such a thing happen to men who served in Iraq?
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's 6:13 Eastern.
Here's what's all new this morning.
We are following a developing story out of Madrid, Spain. A powerful car bomb went off this morning near the city's main convention center. More than 30 people are wounded.
The testimony in the murder trial of actor Robert Blake is reading more like a mobster movie script. A former street thug who became a minister testified that he thought Blake wanted him to "whack somebody." Blake is accused of killing his wife.
In money news, Krispy Kreme may be running low on dough. The donut maker announced a round of job cuts in an effort to save money. Slow sales may also force the company to close some of its more than 400 stores.
In culture, Ben Stiller has been named host of the upcoming Kid's Choice Awards on Nickelodeon. The 18th annual awards let kids vote for their favorites in entertainment and sports. Online voting for the awards starts March 7.
In sports, New England Patriots assistant coach Romeo Crennel missed the Super Bowl victory parade back in Boston. Instead, he was being introduced as the new head coach of the Cleveland Browns. This is the first head coaching job for the 57-year-old Crennel -- Chad.
MYERS: Congrats to him. I still think he -- it would have been nice if they would have let him go on the parade. But that's (UNINTELLIGIBLE).
(WEATHER REPORT)
COSTELLO: We have been awaiting Condoleezza Rice's arrival in Brussels, Belgium at NATO and finally we have the picture we've been looking for. This is the secretary of state as she arrives at NATO in Brussels. She's going to go in and have a luncheon a little later, an informal luncheon with the foreign ministers there, probably to ask for help in Iraq and continue on her fence mending tour of Europe. We'll have more if the secretary of state comes out and says anything to reporters. Of course, we'll take you back to Brussels live.
Today is Ash Wednesday, marking the beginning of Lent.
Our Alessio Vinci live from Rome with the latest on the pope's condition.
Also ahead, Marines honored with Purple Hearts. Now the military says it wants the medals back. The explanation, just ahead on DAYBREAK.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Time now for a little "Business Buzz."
What will Sears and Kmart stores look like once the two retailers complete their merger?
Carrie Lee is live at the Nasdaq market site to tell us -- good morning, Carrie.
CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.
Well, Sears and Kmart, as you said, agreed to a merger and there's a new store format coming out called Sears Essentials. And it could be a hint of what future stores are going to look like once these companies merge.
Now, Sears Essentials is going to include mostly off mall locations, a mid-sized store format and they'll feature most of the items found in a traditional Sears store, things like apparel, electronics and tools. Also, Sears Essentials will have more services -- automotive and pharmacies. A pharmacy is something that Sears hasn't gotten into before. So they're branching out, trying to change their business. This as a lot of retailers have been struggling. The stores are going to be on one level and there's going to be a main aisle circling the sales floor. This is known as a racetrack layout and so Sears really trying to do what it can to stay abreast of current trends.
So the Sears Essentials stores will start debuting in the spring of 2005. so that's the latest there.
Turning to market futures, I think you touched on it, Carol, we could see weakness in technology stocks today. Futures are actually looking at tad weak right now because of Cisco Systems' profit report last night. They met the profit estimate on Wall Street, but sales came in a little bit light. So techs looking a little weak. But after two lackluster trading days, futures across-the-board are actually looking pretty flat.
And that's the latest from here -- back to you.
COSTELLO: All right, Carrie Lee live at the Nasdaq market site.
Thank you.
Time for some "Legal Briefs."
A 32-year-old lawyer from St. Louis has a missing for Donald Trump -- you're biased. James Schottel is a paraplegic who has sued the producers of Trump's reality show, "The Apprentice." He hasn't been turned down by the show, but says he just wants to be considered for the show. Still, Schottel is claiming the show discriminates against him and violates the Americans With Disabilities Act.
In Miami Beach, look out Anna. A 40-year-old homeless man faces a court hearing on Friday for alleged stalking tennis star Anna Kournikova. Police say William Lepeska was found lounging in the buff at a private poll near Kournikova's home. Police say he screamed, "Anna, save me!" when he was arrested.
Elizabeth Traylor gets to keep her Van Gogh. A federal judge has thrown out a lawsuit seeking to get Taylor to hand over an 1889 painting by the artist. The heirs of a German woman claimed to be the rightful owners. Taylor paid $257,000 for Van Gogh's "View of the Asylum and Chapel" at auction in 1963. It's now worth millions.
And the pope remains hospitalized on this Ash Wednesday. Straight ahead on DAYBREAK, we'll have the latest on his condition and a live report from Rome.
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COSTELLO: We have a little bit more information about what's going on in central Baghdad right now.
Let's get right to the pictures.
You see the thick black smoke here. As I said, this is in central Baghdad, on Haifa Street. You could see it right behind Nic Robertson as he was reporting a short time ago. Apparently U.S. troops and insurgents have been in an extended gun battle. You can hear explosions and gunfire for miles away. Not so unusual that there would be a gun battle in this particular place in Baghdad. But, of course, correspondents can't get close enough to actually see what's going on. All that we know, U.S. troops in a gun battle with insurgents. We don't know if there are casualties, don't know if there are fatalities. When we get more information and find out exactly why there is this thick, billowing, black smoke, of course, we'll pass it along to you.
Let's talk about the pope now.
An ailing Pope John Paul II missed Ash Wednesday service today. It is a first for him.
Let's head live to Rome and our Alessio Vinci for an update -- good morning, Alessio.
ALESSIO VINCI, CNN CORRESPONDENT: Good morning, Carol.
Well, doctors have persuaded Pope John Paul II to remain a few more days in the hospital. We are expecting a new bulletin tomorrow at around this time. But for the time being, we do know that the pope will remain in hospital. And that is why, as you said, for the first time in his long papacy, Pope John Paul II was unable to preside over liturgy marking Ash Wednesday. Ash Wednesday, of course, is the beginning of Lent, the traditional period of penitence, fasting and prayer for Christians around the world.
It is unclear whether the pope, during this morning, managed to prepare or to preside over a special service inside his bedroom at the clinic, at the Gemelli Hospital. We do know, however, from Vatican officials, that the pope does celebrate every morning a mass for the doctors and the nurses who are taking care of him at this time. Inside the Vatican, in St. Peter's Square Basilica, St. Peter's Basilica, the pope was substituted by an American cardinal, Cardinal James Stafford. The cardinal said at the beginning of the liturgy, "That we feel the pope's spiritual presence inside St. Peter's Basilica." And at the end of the liturgy, the cardinal also held a special prayer for the pope, wishing him health and comfort so that he can continue his pastoral ministry for the good of the church and all of humanity. That was the prayer that the cardinal recited for John Paul II.
Cardinal Stafford is one of two American cardinals who hold a high position in the Vatican curiae. The Vatican curiae is basically the government that rules the Vatican. He was involved in organizing several World Youth Days, including in 1993 in his home town of Denver. That was considered by Vatican officials a huge success and that is when, after that, Cardinal Stafford moved here to Rome. And he is now the head of the Apostolic Penitentiary, which is one of three Vatican courts, in this case, ruling on secret matters of conscience.
Now, we also have a message, a Lenten message that was released by Pope John Paul II, dedicated this year to the gift of longevity.
The pope said: "People should always remain open and welcoming toward older people, especially those who are weak, sick and suffering."
The pope sending a message around the world, but also describing very much his own condition.
Back to you -- Carol.
COSTELLO: Very fitting.
Alessio Vinci live in Rome this morning.
Thank you.
Injured Marines face an unusual prospect -- turning in their Purple Hearts.
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UNIDENTIFIED MALE: It kind of seemed like I've told a lie, almost. You know, I've put in job applications that says I am a Purple Heart recipient.
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COSTELLO: How did this happen and what happens to those medals now?
And the man who put World Trade Center victims and Nazis all in one sentence -- there he is -- he's speaking out. We'll hear how he's defending himself.
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COSTELLO: Still to come on DAYBREAK, Baltimore's mayor isn't pulling any punches when it comes to President Bush's budget. Oooh, he's using the word terrorist to describe it. We'll tell you exactly what he had to say. There he is.
Also, would you like a pillow? Tough. We'll tell you how one major airline hopes to save a few bucks.
It is Wednesday, February 9.
You are watching DAYBREAK.
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, a powerful car bomb blast in Spain this morning. It went off near the Madrid convention center about three hours ago, wounding more than 40 people. Someone claiming to be with the Basque group reportedly phoned in a warning just before the blast.
In Iraq, gunmen burst into the home of a TV reporter this morning, shortage him dead. It happened in the southern city of Basra. The reporter worked for an Arab language network funded by the United States.
Condoleezza Rice is nearing the end of her first trip as secretary of state. She's now having an informal meeting with NATO foreign ministers in Brussels, Belgium.
And Chinese communities across the world are ringing in a new year. The Year of the Rooster began with travel and celebration. People are hoping the Year of the Rooster will be a time of peace and harmony.
To the forecast center and Chad -- good morning.
MYERS: Good morning, Carol.
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