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CNN Live At Daybreak

Syria Discusses Withdrawing Troops from Lebanon; Senate Votes on Minimum Wage Increase

Aired March 07, 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: From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
Now in the news, funeral services underway in Rome for an Italian intelligence agent. Nicola Calipari was killed Friday by U.S. troops in Iraq in what the White House calls a horrific accident. Calipari died trying to protect Giuliana Sgrena, an Italian journalist who had just been released by kidnappers.

The Syrian and Lebanese presidents are meeting at this hour in Damascus. And when that meeting ends, Syrian troops may begin their two stage pullback in Lebanon. We'll take you live there to Brent Sadler in Damascus in just a minute.

An update on the condition of Pope John Paul II expected about a half hour from now. On Sunday, the pope appeared in his hospital window and he blessed the crowd.

In Utah, a rail car leaking toxic chemicals has forced the evacuation of more than 4,000 people. It also prompted the closure of a five mile stretch of interstate near downtown Salt Lake City. No injuries reported.

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

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The Syrian president insists he's no Saddam Hussein. Bashar Assad was quoted in "Time" magazine. This morning, he's trying to prove he's cooperating by talking about withdrawing his troops from Lebanon.

There's a meeting going on right now between Syria and Lebanon.

CNN's Beirut bureau chief Brent Sadler is in Damascus this morning.

Tell us about it -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Yes, good morning, Carol.

(UNINTELLIGIBLE) are meeting right now in the People's Palace in Syrian capital of Damascus right now between Syria's President Bashar al-Assad and his Lebanese counterpart, President Emil Lahoud. And they're working out details, yet to be disclosed, of a new security plan, widely expected to announce the first stage of a Syrian pullback of troops from neighboring Lebanon.

Now, I traveled here to Damascus a few hours ago, along the Beirut to Damascus highway, and saw large numbers of Lebanese Army troops at regular intervals across that highway leading to the Syrian border, widely in anticipation, we believe, of a movement of Syrian troops. We do not know the numbers. We do not know precisely when they will be moving. But Lebanese security forces certainly preparing for this expected redeployment, which the Syrians say will be the first stage of a two part withdrawal of troops.

No clarification whether or not the troops will be crossing the border any time soon, as demanded by U.S. president George W. Bush. But certainly the outcome of this meeting -- we do expect a press conference within the next couple of hours to flesh out the details of what the Syrians are planning to do with their forces in Lebanon -- Carol.

COSTELLO: Brent Sadler live in Beirut this morning.

Thank you.

New pictures this morning of terrorist leader Abu Musab al- Zarqawi surprising because they do not depict the usual hardened Zarqawi. Take a look. As you can see, he's chubbier and he certainly looks at ease. As you know, he's believed to be communicating with Osama bin Laden and is thought to be behind many of the insurgent bombings, kidnappings and videotaped beheadings in Iraq.

A former U.S. official tells CNN the CIA has transferred terrorism suspects overseas for interrogation. Various reports say detainees are secretly taken to the countries that condone torture. And some of those seized and shipped to third countries have said they were drugged, beaten and elected while in custody. The White House denies it, saying the U.S. does not "export terror."

President Bush is heading out on the road again this week, trying to sell his plan to overhaul Social Security. As the president left church yesterday, Treasury Secretary John Snow was on TV promoting his plan, including the private investment accounts for younger workers. President Bush heads for the South this week, visiting Kentucky, Alabama and Tennessee.

In the meantime, one Republican senator thinks he has a way to make Social Security changes more acceptable to middle aged workers.

Senator Chuck Hagel's plan would allow workers 45 and under to keep their guaranteed benefits and have the option of setting up a personal investment account.

He says an overhaul is critical.

(BEGIN VIDEO CLIP)

SEN. CHUCK HAGEL (R-NB), FOREIGN RELATIONS COMMITTEE: The current Social Security system is unsustainable. We already have a $3.7 trillion deficit in the next 75 years. That means we have $3.7 trillion worth of Social Security obligations to future generations that we don't know how we're going to pay for. So it has to be fixed.

I think what's important is not necessarily fixing it this year. If we can, yes. But what's important here is take the time to find a wise, sustainable course of action which can be brought into a new reform policy that fixes Social Security for future generations.

(END VIDEO CLIP)

COSTELLO: Want to hear the most controversial part of his plan? He plans to raise the retirement age to 68 years old.

The Senate is expected to vote today on rival amendments that would raise the minimum wage from its current $5.15 an hour. If such an amendment is approved, it'll be tacked onto a Republican bill that would make it harder to declare personal bankruptcy.

Let's head live to Washington to get more from CNN's Kareen Wynter -- good morning, Kareen.

KAREEN WYNTER, CNN CORRESPONDENT: Good morning to you, Carol.

And that debate begins at 2:30 this afternoon. But as you can imagine, Democrats and Republicans are offering differing proposals, with the GOP leaders calling for a more modest increase.

(BEGIN VIDEO TAPE)

WYNTER (voice-over): The minimum wage has not been changed in eight years. Today, the U.S. Senate will vote on raising the pay scale, but by how much? Democrats want to bump the current $5.15 hourly minimum wage by more than $2, bringing it to $7.25, to be distributed over a two year period.

REP. NANCY PELOSI (D-CA), HOUSE MINORITY LEADER: I do think we would have a very strong Democratic vote and a commitment to raising the minimum wage.

WYNTER: The Republican plan calls for a smaller increase. Republicans like Pennsylvania Senator Rick Santorum are recommending a $1.10 increase over 18 months, as well as tax breaks for small businesses. They also want greater flexibility in the 40 hour work week, something Democrats oppose, seeing it as a way to deny overtime pay.

But there's agreement that the minimum wage legislation should be tacked onto new bankruptcy rules to tighten restrictions on those who declare bankruptcy. Senator Edward Kennedy says that in the eight years since the last boost to the minimum wage, members of Congress have raised their own salaries seven times. But it's an argument that cuts little ice in the more conservative House, where the Republican leadership says it has no plans to take up the minimum wage legislation.

(END VIDEO TAPE)

WYNTER: Kennedy argued further the Republican plan would benefit around two million people, whereas his proposal would aim to triple that -- Carol.

COSTELLO: Kareen Wynter reporting live from Washington this morning.

Thank you.

Coming up on DAYBREAK, life on the front lines in Iraq involves a lot more than combat readiness. But the question is are coalition forces engaged in nation building? More on that story at 6:15 Eastern.

And he's the St. Louis born, Band-Aid wearing, hip-hop millionaire who your kids probably hear every day on the radio. So why is Nelly unwelcome on one college campus? We'll have some answers for you at 20 past the hour.

And at 6:35, controversy in Texas. When the call comes in about a huge fire, police officers are caught on tape making some very bad jokes.

But first -- what they call jokes, at least.

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

(COMMERCIAL BREAK)

COSTELLO: Still to come, your kids may think he's mainstream, but that doesn't matter in one town, where a campus concert by Nelly, oh, has some preachers protesting. I'm going to talk to one of them.

DAYBREAK back in a minute.

(COMMERCIAL BREAK)

COSTELLO: It's going to be 50 degrees here. I'm telling you, people are already celebrating in the streets.

Your news, money, weather and sports.

It's 6:12 Eastern.

Here's what's all new this morning.

In Rome, a funeral with full military honors going on right now for Italy's top intelligence officer. He was killed by U.S. troops after helping gain the release of an Italian journalist held hostage for a month.

Bolivia's president is offering to resign amid growing unrest in the country. President Carlos Mesa blames a wave of protests over regional autonomy for his decision. Bolivia's Congress still has to decide whether to accept his resignation.

In money news, former CBS President Howard Stringer is the new chairman of Sony. Stringer has overseen the company's entertainment interests since 1997. He does become the first foreigner to head a major Japanese electronics company.

In culture, like it or not, The Backstreet Boys are coming back. They're playing a 13 city tour beginning later this month. The Boys are also finishing up their work on their first new CD in five years.

In sports, Tiger Woods number one again. Woods overtook Phil Mickelson in the final round of the championship at Doral, to win by one stroke. The victory returns Woods to the top ranking in the world for the first time in six months.

So, apparently, Chad, he's broken the marriage curse.

MYERS: Yes. Finally breaking above V.J. Singh again. Although Singh only place third, so obviously the rankings very, very close at this point in time.

(WEATHER REPORT)

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

Coming up, when he speaks, investors listen. So what kind of advice is Warren Buffet offering now?

And protesting the message. A group of preachers stands up to one of the biggest names in hip-hop when DAYBREAK continues.

(COMMERCIAL BREAK)

CARRIE LEE, CNN CORRESPONDENT: Good morning, everyone.

I'm Carrie Lee at the Nasdaq market site.

When the oracle of Omaha speaks, people listen. Billionaire investor Warren Buffett this weekend released his annual very closely watched letter to shareholders of his conglomerate, Berkshire Hathaway. Buffett says he's worried about the weak dollar, blaming the country's trading practices. He also says he struck out in participating in some merger deals in 2004. And unable to find some attractive takeover targets, he's now sitting on $43 billion in cash. Hard for maybe the average person to relate to.

He does have some tips, though for smaller investors. He says invest in products with low expenses; also, don't invest in tips and fads. And rather than trying to time the market, he says buy consistently over time. And with the $43 billion in cash he's sitting on, his advice probably worth listening to.

Meanwhile, after a very nice rally for the bulls on Friday, markets looking like a bit of a higher open for this Monday session, as well, although some analysts on Wall Street believe the weak dollar and high oil prices could make it difficult to maintain that momentum. One stock to watch today, Krispy Kreme. The shares gained about 20 percent on Friday on rumors that Buffett was interested in the struggling donut chain.

And that's the latest from the Nasdaq.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

COSTELLO: Promise broken -- if you're wondering if all of those vehicles in Iraq are now armor plated, they're not.

"Time" magazine has uncovered some interesting documents from the Defense Department. They say exactly why the United States is not and was not prepared for nation building.

Sally Donnelly is the Pentagon correspondent for "Time" magazine.

She joins us now live from Washington.

Good morning, Sally.

SALLY DONNELLY, "TIME" CORRESPONDENT: Good morning.

COSTELLO: Now, most people probably don't know this, but the Army's psychological operations unit is employed with the task of nation building. And we're talking about that as it applies to Iraq.

Tell us about this unit.

DONNELLY: Well, there's also a part of it called civil affairs. And what they do is they go out into states that are trying to rebuild their government services. They're part of the U.S. military, but their job is to help set up basically a civil society. And that where the Pentagon has fallen woefully short in numbers of people that they need to do this vitally important task.

COSTELLO: Yes, and that's where you -- you have these new Defense Department documents. You've uncovered these documents.

What do they say about those units?

DONNELLY: Well, that they are -- they need about, they estimate, about 8,000 people. But, actually, if you look at the real numbers that are available, they are over 1,000 people short, because these people are neither trained up or not even trained at all in terms of the civil affairs jobs they need to do on the ground.

COSTELLO: And as far as equipment they need?

DONNELLY: Well, that was brought up last week by several members of Congress. Congressman Tim Ryan from Ohio held up some pictures that showed that there are vehicles still going out in Iraq that are not armored. This is -- after February 15, the secretary of defense promised that all the vehicles would be armored. And I think several members of Congress are really upset about this.

COSTELLO: Yes, we have a quote from Donald Rumsfeld. Specifically, this is what he said. He said: "By February 15, there will not be a single vehicle moving anywhere outside a protected compound that does not have appropriate armor."

But you're saying that that's still happening.

DONNELLY: Yes. And several members of Congress held up pictures that showed that was the case, very recount digitized pictures from Iraq. They showed that to General Abizaid, who is the commander of Central Command there, that controls the battlefield there in Iraq. And he said he would look into it. But it's really disappointing and tragic for soldiers on the ground.

COSTELLO: So what's the answer here? Why isn't this happening?

DONNELLY: That's not clear. And that's actually what General Abizaid said he would find out. But it's really remarkable, two years now on from the invasion they still don't -- it's obvious, sort of, that the Pentagon misplanned a lot of this after action part of the war.

COSTELLO: Sally, thank you for joining DAYBREAK this morning.

If you want to know more, that article is in this week's issue of "Time" magazine.

More "Stories Across America" now.

Martha Stewart expected to be back at her desk today after serving five months in prison. She plans to address employees at the Manhattan headquarters of her company. Under terms of her house arrest, she's allowed to spend 48 hours a week working outside of her home, but she has to wear an electronic ankle bracelet.

Thousands of people walked together across a bridge in Selma, Alabama to commemorate the 40th anniversary of a landmark civil rights march. That march became known as Bloody Sunday after police swarmed in to break up the crowd. The 1965 event, plus a second march led by Martin Luther King, helped set the stage for the passage of the Voting Rights Act.

Volunteers are nursing a number of dolphins back to health after a mass stranding near Key West. About 60 rough toothed dolphins stranded themselves on flats and sandbars. Nearly half died or were euthanized. Some swam back to deeper waters, while others were sent to rescue centers in Miami and in the Keys.

Still to come on DAYBREAK, a nation mourns. One life lost, another saved. What really happened during a hostage's getaway?

And results to share from the newest batch of crash tests. How would your car perform during a surprise crash from the side?

This is DAYBREAK. (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (voice-over): The top 25 business leaders who changed the way the world does business during CNN's first 25 years. We asked the writers of "Fortune" magazine to compile a list. Here are numbers 25 through 21.

Big Blue's big brother comes in at 25. Lou Gerstner changed IBM from a company on the verge of a backup into a money maker, catapulting its reputation and stock to record highs.

At number 24, the 19-year-old who started a music revolution on the Net. Shawn Fanning created the file swapping computer program called Napster.

Enron's former CEO, Ken Lay, is number 23. Accounting scandals drove energy trader Enron into one of the largest bankruptcies in U.S. history. Lay was indicated for fraud and now faces federal criminal charges. BETH FENNER, ASSISTANT MANAGING EDITOR, "FORBES": CEOs can no longer say, you know, I don't know about those numbers, that was somebody else's job.

UNIDENTIFIED FEMALE: Number 22, W. Edwards Denning, the American who helped turn post-war Japan into a manufacturing powerhouse.

Reporting in at 21, the late Katharine Graham. As a leader of the "Washington Post," Graham created a media empire and she did it at a time when most women were home taking care of the kids.

Stay tuned as we count down to number one.

(END VIDEO CLIP)

COSTELLO: After a brief appearance over the weekend, we are awaiting the latest update on Pope John Paul's condition.

It is Monday, March 7.

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 presidents of Syria and Lebanon meeting right now in Damascus to decide a timetable for a pullback of Syrian troops in Lebanon. Phase one of a two stage withdrawal could begin later today.

President Bush heads to Pittsburgh, Pennsylvania today. He'll tour a youth center and speak at a Helping America's Youth event. CNN will bring you live coverage this afternoon. The Michael Jackson trial resumes today with a cross-examination of the accuser's sister. In testimony last week, she said the family was coerced into saying good things about the entertainer.

And they're off. Nearly 80 mushers and their dogs are running in the 33rd Iditarod in Alaska. A ceremonial start was held in Anchorage. The starting line had to be moved about 30 miles because there wasn't enough snow in Alaska -- Chad.

MYERS: Yes, of all places.

Carol, do you know how much Tiger Woods made for winning the go forward tournament this weekend?

COSTELLO: No.

MYERS: Nine hundred and ninety thousand dollars. Do you know how much the Iditarod winner will win after doing all of this work?

COSTELLO: How much?

MYERS: Seventy-two thousand dollars.

COSTELLO: Well, that's not bad.

MYERS: Well, I guess not. But it's a lot more work than golfing for four days, although my...

COSTELLO: True.

MYERS: Yes.

COSTELLO: And colder.

MYERS: Much colder. And harder on the dogs, as well.

(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 March 7, 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: From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
Now in the news, funeral services underway in Rome for an Italian intelligence agent. Nicola Calipari was killed Friday by U.S. troops in Iraq in what the White House calls a horrific accident. Calipari died trying to protect Giuliana Sgrena, an Italian journalist who had just been released by kidnappers.

The Syrian and Lebanese presidents are meeting at this hour in Damascus. And when that meeting ends, Syrian troops may begin their two stage pullback in Lebanon. We'll take you live there to Brent Sadler in Damascus in just a minute.

An update on the condition of Pope John Paul II expected about a half hour from now. On Sunday, the pope appeared in his hospital window and he blessed the crowd.

In Utah, a rail car leaking toxic chemicals has forced the evacuation of more than 4,000 people. It also prompted the closure of a five mile stretch of interstate near downtown Salt Lake City. No injuries reported.

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

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The Syrian president insists he's no Saddam Hussein. Bashar Assad was quoted in "Time" magazine. This morning, he's trying to prove he's cooperating by talking about withdrawing his troops from Lebanon.

There's a meeting going on right now between Syria and Lebanon.

CNN's Beirut bureau chief Brent Sadler is in Damascus this morning.

Tell us about it -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Yes, good morning, Carol.

(UNINTELLIGIBLE) are meeting right now in the People's Palace in Syrian capital of Damascus right now between Syria's President Bashar al-Assad and his Lebanese counterpart, President Emil Lahoud. And they're working out details, yet to be disclosed, of a new security plan, widely expected to announce the first stage of a Syrian pullback of troops from neighboring Lebanon.

Now, I traveled here to Damascus a few hours ago, along the Beirut to Damascus highway, and saw large numbers of Lebanese Army troops at regular intervals across that highway leading to the Syrian border, widely in anticipation, we believe, of a movement of Syrian troops. We do not know the numbers. We do not know precisely when they will be moving. But Lebanese security forces certainly preparing for this expected redeployment, which the Syrians say will be the first stage of a two part withdrawal of troops.

No clarification whether or not the troops will be crossing the border any time soon, as demanded by U.S. president George W. Bush. But certainly the outcome of this meeting -- we do expect a press conference within the next couple of hours to flesh out the details of what the Syrians are planning to do with their forces in Lebanon -- Carol.

COSTELLO: Brent Sadler live in Beirut this morning.

Thank you.

New pictures this morning of terrorist leader Abu Musab al- Zarqawi surprising because they do not depict the usual hardened Zarqawi. Take a look. As you can see, he's chubbier and he certainly looks at ease. As you know, he's believed to be communicating with Osama bin Laden and is thought to be behind many of the insurgent bombings, kidnappings and videotaped beheadings in Iraq.

A former U.S. official tells CNN the CIA has transferred terrorism suspects overseas for interrogation. Various reports say detainees are secretly taken to the countries that condone torture. And some of those seized and shipped to third countries have said they were drugged, beaten and elected while in custody. The White House denies it, saying the U.S. does not "export terror."

President Bush is heading out on the road again this week, trying to sell his plan to overhaul Social Security. As the president left church yesterday, Treasury Secretary John Snow was on TV promoting his plan, including the private investment accounts for younger workers. President Bush heads for the South this week, visiting Kentucky, Alabama and Tennessee.

In the meantime, one Republican senator thinks he has a way to make Social Security changes more acceptable to middle aged workers.

Senator Chuck Hagel's plan would allow workers 45 and under to keep their guaranteed benefits and have the option of setting up a personal investment account.

He says an overhaul is critical.

(BEGIN VIDEO CLIP)

SEN. CHUCK HAGEL (R-NB), FOREIGN RELATIONS COMMITTEE: The current Social Security system is unsustainable. We already have a $3.7 trillion deficit in the next 75 years. That means we have $3.7 trillion worth of Social Security obligations to future generations that we don't know how we're going to pay for. So it has to be fixed.

I think what's important is not necessarily fixing it this year. If we can, yes. But what's important here is take the time to find a wise, sustainable course of action which can be brought into a new reform policy that fixes Social Security for future generations.

(END VIDEO CLIP)

COSTELLO: Want to hear the most controversial part of his plan? He plans to raise the retirement age to 68 years old.

The Senate is expected to vote today on rival amendments that would raise the minimum wage from its current $5.15 an hour. If such an amendment is approved, it'll be tacked onto a Republican bill that would make it harder to declare personal bankruptcy.

Let's head live to Washington to get more from CNN's Kareen Wynter -- good morning, Kareen.

KAREEN WYNTER, CNN CORRESPONDENT: Good morning to you, Carol.

And that debate begins at 2:30 this afternoon. But as you can imagine, Democrats and Republicans are offering differing proposals, with the GOP leaders calling for a more modest increase.

(BEGIN VIDEO TAPE)

WYNTER (voice-over): The minimum wage has not been changed in eight years. Today, the U.S. Senate will vote on raising the pay scale, but by how much? Democrats want to bump the current $5.15 hourly minimum wage by more than $2, bringing it to $7.25, to be distributed over a two year period.

REP. NANCY PELOSI (D-CA), HOUSE MINORITY LEADER: I do think we would have a very strong Democratic vote and a commitment to raising the minimum wage.

WYNTER: The Republican plan calls for a smaller increase. Republicans like Pennsylvania Senator Rick Santorum are recommending a $1.10 increase over 18 months, as well as tax breaks for small businesses. They also want greater flexibility in the 40 hour work week, something Democrats oppose, seeing it as a way to deny overtime pay.

But there's agreement that the minimum wage legislation should be tacked onto new bankruptcy rules to tighten restrictions on those who declare bankruptcy. Senator Edward Kennedy says that in the eight years since the last boost to the minimum wage, members of Congress have raised their own salaries seven times. But it's an argument that cuts little ice in the more conservative House, where the Republican leadership says it has no plans to take up the minimum wage legislation.

(END VIDEO TAPE)

WYNTER: Kennedy argued further the Republican plan would benefit around two million people, whereas his proposal would aim to triple that -- Carol.

COSTELLO: Kareen Wynter reporting live from Washington this morning.

Thank you.

Coming up on DAYBREAK, life on the front lines in Iraq involves a lot more than combat readiness. But the question is are coalition forces engaged in nation building? More on that story at 6:15 Eastern.

And he's the St. Louis born, Band-Aid wearing, hip-hop millionaire who your kids probably hear every day on the radio. So why is Nelly unwelcome on one college campus? We'll have some answers for you at 20 past the hour.

And at 6:35, controversy in Texas. When the call comes in about a huge fire, police officers are caught on tape making some very bad jokes.

But first -- what they call jokes, at least.

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

(COMMERCIAL BREAK)

COSTELLO: Still to come, your kids may think he's mainstream, but that doesn't matter in one town, where a campus concert by Nelly, oh, has some preachers protesting. I'm going to talk to one of them.

DAYBREAK back in a minute.

(COMMERCIAL BREAK)

COSTELLO: It's going to be 50 degrees here. I'm telling you, people are already celebrating in the streets.

Your news, money, weather and sports.

It's 6:12 Eastern.

Here's what's all new this morning.

In Rome, a funeral with full military honors going on right now for Italy's top intelligence officer. He was killed by U.S. troops after helping gain the release of an Italian journalist held hostage for a month.

Bolivia's president is offering to resign amid growing unrest in the country. President Carlos Mesa blames a wave of protests over regional autonomy for his decision. Bolivia's Congress still has to decide whether to accept his resignation.

In money news, former CBS President Howard Stringer is the new chairman of Sony. Stringer has overseen the company's entertainment interests since 1997. He does become the first foreigner to head a major Japanese electronics company.

In culture, like it or not, The Backstreet Boys are coming back. They're playing a 13 city tour beginning later this month. The Boys are also finishing up their work on their first new CD in five years.

In sports, Tiger Woods number one again. Woods overtook Phil Mickelson in the final round of the championship at Doral, to win by one stroke. The victory returns Woods to the top ranking in the world for the first time in six months.

So, apparently, Chad, he's broken the marriage curse.

MYERS: Yes. Finally breaking above V.J. Singh again. Although Singh only place third, so obviously the rankings very, very close at this point in time.

(WEATHER REPORT)

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

Coming up, when he speaks, investors listen. So what kind of advice is Warren Buffet offering now?

And protesting the message. A group of preachers stands up to one of the biggest names in hip-hop when DAYBREAK continues.

(COMMERCIAL BREAK)

CARRIE LEE, CNN CORRESPONDENT: Good morning, everyone.

I'm Carrie Lee at the Nasdaq market site.

When the oracle of Omaha speaks, people listen. Billionaire investor Warren Buffett this weekend released his annual very closely watched letter to shareholders of his conglomerate, Berkshire Hathaway. Buffett says he's worried about the weak dollar, blaming the country's trading practices. He also says he struck out in participating in some merger deals in 2004. And unable to find some attractive takeover targets, he's now sitting on $43 billion in cash. Hard for maybe the average person to relate to.

He does have some tips, though for smaller investors. He says invest in products with low expenses; also, don't invest in tips and fads. And rather than trying to time the market, he says buy consistently over time. And with the $43 billion in cash he's sitting on, his advice probably worth listening to.

Meanwhile, after a very nice rally for the bulls on Friday, markets looking like a bit of a higher open for this Monday session, as well, although some analysts on Wall Street believe the weak dollar and high oil prices could make it difficult to maintain that momentum. One stock to watch today, Krispy Kreme. The shares gained about 20 percent on Friday on rumors that Buffett was interested in the struggling donut chain.

And that's the latest from the Nasdaq.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

COSTELLO: Promise broken -- if you're wondering if all of those vehicles in Iraq are now armor plated, they're not.

"Time" magazine has uncovered some interesting documents from the Defense Department. They say exactly why the United States is not and was not prepared for nation building.

Sally Donnelly is the Pentagon correspondent for "Time" magazine.

She joins us now live from Washington.

Good morning, Sally.

SALLY DONNELLY, "TIME" CORRESPONDENT: Good morning.

COSTELLO: Now, most people probably don't know this, but the Army's psychological operations unit is employed with the task of nation building. And we're talking about that as it applies to Iraq.

Tell us about this unit.

DONNELLY: Well, there's also a part of it called civil affairs. And what they do is they go out into states that are trying to rebuild their government services. They're part of the U.S. military, but their job is to help set up basically a civil society. And that where the Pentagon has fallen woefully short in numbers of people that they need to do this vitally important task.

COSTELLO: Yes, and that's where you -- you have these new Defense Department documents. You've uncovered these documents.

What do they say about those units?

DONNELLY: Well, that they are -- they need about, they estimate, about 8,000 people. But, actually, if you look at the real numbers that are available, they are over 1,000 people short, because these people are neither trained up or not even trained at all in terms of the civil affairs jobs they need to do on the ground.

COSTELLO: And as far as equipment they need?

DONNELLY: Well, that was brought up last week by several members of Congress. Congressman Tim Ryan from Ohio held up some pictures that showed that there are vehicles still going out in Iraq that are not armored. This is -- after February 15, the secretary of defense promised that all the vehicles would be armored. And I think several members of Congress are really upset about this.

COSTELLO: Yes, we have a quote from Donald Rumsfeld. Specifically, this is what he said. He said: "By February 15, there will not be a single vehicle moving anywhere outside a protected compound that does not have appropriate armor."

But you're saying that that's still happening.

DONNELLY: Yes. And several members of Congress held up pictures that showed that was the case, very recount digitized pictures from Iraq. They showed that to General Abizaid, who is the commander of Central Command there, that controls the battlefield there in Iraq. And he said he would look into it. But it's really disappointing and tragic for soldiers on the ground.

COSTELLO: So what's the answer here? Why isn't this happening?

DONNELLY: That's not clear. And that's actually what General Abizaid said he would find out. But it's really remarkable, two years now on from the invasion they still don't -- it's obvious, sort of, that the Pentagon misplanned a lot of this after action part of the war.

COSTELLO: Sally, thank you for joining DAYBREAK this morning.

If you want to know more, that article is in this week's issue of "Time" magazine.

More "Stories Across America" now.

Martha Stewart expected to be back at her desk today after serving five months in prison. She plans to address employees at the Manhattan headquarters of her company. Under terms of her house arrest, she's allowed to spend 48 hours a week working outside of her home, but she has to wear an electronic ankle bracelet.

Thousands of people walked together across a bridge in Selma, Alabama to commemorate the 40th anniversary of a landmark civil rights march. That march became known as Bloody Sunday after police swarmed in to break up the crowd. The 1965 event, plus a second march led by Martin Luther King, helped set the stage for the passage of the Voting Rights Act.

Volunteers are nursing a number of dolphins back to health after a mass stranding near Key West. About 60 rough toothed dolphins stranded themselves on flats and sandbars. Nearly half died or were euthanized. Some swam back to deeper waters, while others were sent to rescue centers in Miami and in the Keys.

Still to come on DAYBREAK, a nation mourns. One life lost, another saved. What really happened during a hostage's getaway?

And results to share from the newest batch of crash tests. How would your car perform during a surprise crash from the side?

This is DAYBREAK. (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (voice-over): The top 25 business leaders who changed the way the world does business during CNN's first 25 years. We asked the writers of "Fortune" magazine to compile a list. Here are numbers 25 through 21.

Big Blue's big brother comes in at 25. Lou Gerstner changed IBM from a company on the verge of a backup into a money maker, catapulting its reputation and stock to record highs.

At number 24, the 19-year-old who started a music revolution on the Net. Shawn Fanning created the file swapping computer program called Napster.

Enron's former CEO, Ken Lay, is number 23. Accounting scandals drove energy trader Enron into one of the largest bankruptcies in U.S. history. Lay was indicated for fraud and now faces federal criminal charges. BETH FENNER, ASSISTANT MANAGING EDITOR, "FORBES": CEOs can no longer say, you know, I don't know about those numbers, that was somebody else's job.

UNIDENTIFIED FEMALE: Number 22, W. Edwards Denning, the American who helped turn post-war Japan into a manufacturing powerhouse.

Reporting in at 21, the late Katharine Graham. As a leader of the "Washington Post," Graham created a media empire and she did it at a time when most women were home taking care of the kids.

Stay tuned as we count down to number one.

(END VIDEO CLIP)

COSTELLO: After a brief appearance over the weekend, we are awaiting the latest update on Pope John Paul's condition.

It is Monday, March 7.

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 presidents of Syria and Lebanon meeting right now in Damascus to decide a timetable for a pullback of Syrian troops in Lebanon. Phase one of a two stage withdrawal could begin later today.

President Bush heads to Pittsburgh, Pennsylvania today. He'll tour a youth center and speak at a Helping America's Youth event. CNN will bring you live coverage this afternoon. The Michael Jackson trial resumes today with a cross-examination of the accuser's sister. In testimony last week, she said the family was coerced into saying good things about the entertainer.

And they're off. Nearly 80 mushers and their dogs are running in the 33rd Iditarod in Alaska. A ceremonial start was held in Anchorage. The starting line had to be moved about 30 miles because there wasn't enough snow in Alaska -- Chad.

MYERS: Yes, of all places.

Carol, do you know how much Tiger Woods made for winning the go forward tournament this weekend?

COSTELLO: No.

MYERS: Nine hundred and ninety thousand dollars. Do you know how much the Iditarod winner will win after doing all of this work?

COSTELLO: How much?

MYERS: Seventy-two thousand dollars.

COSTELLO: Well, that's not bad.

MYERS: Well, I guess not. But it's a lot more work than golfing for four days, although my...

COSTELLO: True.

MYERS: Yes.

COSTELLO: And colder.

MYERS: Much colder. And harder on the dogs, as well.

(WEATHER REPORT)

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