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CNN Live At Daybreak
A Violent Friday in Baghdad; 2006 Budget Blueprint Approved by Congress
Aired April 29, 2005 - 05:30 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.
(BEGIN VIDEO CLIP)
JAY LENO, THE TONIGHT SHOW WITH JAY LENO: Chaney, keep your eye -- watch what he does.
(LAUGHTER)
He goes over there. See, watch this. See, now what I'm saying, they're working. Yeah!
(END VIDEO CLIP)
(LAUGTHER)
CHAD MYERS, CNN METEROLOGIST: That was the Secret Service truck.
(LAUGHTER)
CAROL COSTELLO, CNN ANCHOR, DAYBREAK: I don't think I can recover from that.
Oh, let's get right to our e-mail question, shall we?
MYERS: Yes, do you know what it is?
COSTELLO: I barely remember now.
MYERS: Should the major networks have carried the entire news conference of the president live last night? A number of them cut out early so they could get to their prime-time programming. It is sweeps month, after all, Carol.
COSTELLO: After all. All right. This is from John in Chicago. "If were in the days of just four to five channels to watch I might be inclined to say the press conference should have been covered in its entirety. But given the number of choices of things to watch it is really not an issue.
"I would also venture to say that many people believe that people that the current administration is somewhat dis" --
Oh, it goes into like a political bent. But John, thank you for your comment. We're going to try to stay away from the politics this morning.
This is from our buddy in Vermont: "I agree with Carol, all the major networks that cut out early should have to relinquish on half hour of their number one-ranked, prime time programs and replace it with commercial free curling."
Somehow I don't think that's going to happen.
MYERS: You know what curling is, though Carol, right?
COSTELLO: Yes, I do. It's -- uh --
MYERS: Throw those big stones down the ice.
COSTELLO: Oh, I guess I don't then.
MYERS: No, it has nothing to do with an iron.
COSTELLO: No, no, no, what you do in the boats? You know, those big long boats? What is that called?
UNIDENTIFIED MALE: (INAUDIBLE)
COSTELLO: Rowing, crewing.
MYERS: Crew. No, to curl is to throw a 40-pound granite stone down the ice and try to get it to the red spot down on the end and knock your opponents big -- rocks out of the way. It's kind of a --
COSTELLO: It's Friday, isn't it?
MYERS: Yeah, it is Friday, Carol, because check this out. The elevators are broken, both escalators were going the wrong way, and I came in and my computer thought it was Saturday. Now that's the beginning of a day.
Sean in Roanoke, Virginia says, considering how few news conferences the president has, not only should all networks have covered this but citizens should have been given a holiday day off to watch it.
COSTELLO: Ah, see there you go.
MYERS: All right?
COSTELLO: DAYBREAK will be right back.
(COMMERCIAL BREAK)
COSTELLO: Good morning to you, welcome to the second half hour of DAYBREAK. From the Time Warner Center in New York I'm Carol Costello along with Chad Myers.
"Now in the News": It has been a violent Friday in Baghdad. There have been nine car bombings and one roadside bombing. At least 21 are dead, 71 hurt. The attacks targeted Iraqi soldiers and police.
In Washington, how does $2.6 trillion sound? Yes, indeed, big bucks. That is the 2006 budget blueprint approved by Congress. Among the provisions, $35 billion in spending cuts, $70 billion in tax cuts over five years. Now all they need to do is work out the rest of the details.
CNN has learned that the Shuttle Discovery will not be lifting off in May as originally planned. Concerns over the foam insulation on the external fuel tanks lead to the delay. The launch has been pushed back until at least July.
You heard about the $100,000 buck buried in the backyard in Massachusetts by three guys digging up a tree. The money is dated from 1899 to 1929. Now, police say they might have broken the law by not reporting it. Also, another man says the money is his. You knew that had to happen, Chad.
MYERS: Oh, I knew it was a bad idea to go on TV with that money.
COSTELLO: You knew it, somebody was going to claim it.
MYERS: I saw those guys on CNN and I'm thinking to myself, what are you guys doing?
(LAUGHTER)
Oh, man! Just take that money to a pawnshop there.
COSTELLO: And shut your mouth.
MYERS: And get your money for it and just be quiet, but obviously not. There is going to be more to that story for a long time. They were some beautiful bills in there, though. I really did enjoy seeing some of that old currency.
(WEATHER FORECAST)
COSTELLO: President Bush says his goal is that no American retire in poverty. At his first prime-time news conference since re- election, President Bush is standing by his plan that any changes to Social Security include investment retirement accounts.
The president stressed that private Social Security accounts could be voluntary. He also proposed benefits that would increase faster for lower income workers.
He also outlined his ideas to lower energy prices. They include better technology for conservation, making the most of existing energy resources, developing new sources of energy and helping other nations apply new technology.
Also the president had strong words for one of those other nations, that would be Russia. The president praised President Vladimir Putin's commitment to democracy, included some words of warning.
We take you "Beyond the Sound Bite" now.
(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're working closely with the Russians on the issue of vehicle-mounted weaponry to Syria. We didn't appreciate that, but we made ourselves clear.
As to Iran, what Russia has agree to do is to send highly enriched uranium to a nuclear civilian power plant. And then collect that uranium, after it is used for electricity, power purposes. That's what they've decided to do.
And I appreciate that gesture. See, what they recognize is that what America recognizes and what Great Britain, France and Germany recognize is that we can't trust the Iranians when it comes to enriching uranium; that they should not be allowed to enrich uranium.
And what the Iranians have said is, don't we deserve to have a nuclear power industry, just like you do? I kind of wonder why they need one since they have all the oil, but nevertheless, others in the world say, well, maybe that's their right to have their own civilian nuclear power industry.
And what has said: Fine, we'll provide you the uranium. We'll enrich it for you and provide it to you and then we'll collect. And I appreciate that gesture. I think it is --- so I think Vladimir is trying to help there. I know Vladimir Putin understands the dangers of an Iran with a nuclear weapon. And most the world understands that as well.
(END VIDEO CLIP)
COSTELLO: President Putin and President Bush are scheduled to meet in Moscow early next month. Right now, Vladimir Putin is in the Middle East. He's the first Russian leader to ever visit the Palestinian territories. He and Palestinian leader Mahmoud Abbas are due to hold a joint news conference. But lets head live now to region, our John Vause joins us from Jerusalem.
Good morning, John.
JOHN VAUSE, CNN CORRESPONDENT, DAYBREAK: Good morning, Carol. The meeting is still underway right now between Vladimir Putin and the Palestinian Authority President Mahmoud Abbas. The Russian president arrived in the West Bank city of Ramallah just over an hour or so ago now. Greeted by the Palestinian president there.
And then Mr. Putin paid his respects at the tomb of the late Yasser Arafat. This has been a difficult issue for many world leaders who have visited Ramallah. The Israelis don't look favorably upon this. Still, Mr. Putin laid a wreath at the tomb of Yasser Arafat. He paused for a moment, bowed his head.
In the past, when world leaders have turned up, like Tony Blair of Great Britain, he simply walked and nodded briefly and then moved on. In fact, when the former Secretary of State Colin Powell went to Ramallah, actually went to the West Bank, he went to Jericho to avoid this issue altogether. Now, during this meeting between Mr. Putin and Mr. Abbas, we understand they'll be discussing the sale of some 50 lightly armored personnel carriers. Mr. Putin says this is an attempt to bolster the Palestinian security forces. It is an issue which was discussed between Mr. Putin and the Israeli prime minister yesterday.
Israel had some concerns, but we're told by Israeli sources that both leaders have agreed that the sale should go ahead, providing that the sale of all military and security technology, by Russia, to the Palestinian is coordinated by the Israelis.
Also, today it is expected the Russians will give the Palestinian two transport helicopters. Now this will be for the Palestinian leadership to travel from the West Bank to Gaza and the West Bank to Jordan. And they will replace two other Russian helicopters which were destroyed by the Israelis a few years ago -- Carol.
COSTELLO: John Vause, reporting for us live this morning. Thank you.
Still to come on DAYBREAK, a determined president says he's not backing off on Social Security reform, John Bolton, or much else. We'll get reaction from our political editor in Washington.
Also, the latest in Las Vegas, with some high-priced but super sweet suites. But first, here's a look at what else is making news this Friday morning.
(GRAPHIC WITH HEADLINES)
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports. It is 5:44 Eastern. Here's what's all new this morning.
It is day three in the search for that missing bride to be in an Atlanta suburb. Investigators are trying to determine if a clump of hair and sweat pants found in the search are linked to the missing woman.
The Florida supreme court has refused to hear an appeal from conservative commentator Rush Limbaugh. The case centers on prosecutors' seizure of Limbaugh's medical records during an investigation into whether he illegally purchased painkillers.
In money news, mogul Steve Wynn has opened up his new $2.7- billion Wynn Casino in Las Vegas. Steve Wynn is the former owner of the Mirage, Treasure Island and the Bellagio. The 27,000 room casino is the first big casino to open in Vegas in the past five years.
In culture, the Broadway play, "Spamalot" received 12 Drama Desk award nominations. The Drama Desk awards are a traditional precursor for the Tony Awards. For those who don't know, "Spamalot" is a musical based on the 1975 movie "Monty Python and the Holy Grail".
In sports, a woman hit by a chair thrown by Texas pitcher Frank Francisco, is suing him, the team, and two other Rangers. The woman's nose was broken. Texas was playing Oakland when the pitcher go upset with hecklers.
To the Forecast Center now and Chad.
MYERS: I remember that game, surprised it didn't show up earlier.
(WEATHER FORECAST)
COSTELLO: That is a look at the latest headlines this morning. Still ahead on DAYBREAK, nothing stays a secret for very long in Hollywood. We'll tell you more on that new budding romance between you-know-who and you-know-who. We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Were you able to catch the president last night? He was blowing the bugle, no retreat over his plans to change Social Security. It is full steam ahead.
(BEGIN VIDEO CLIP)
BUSH: Social Security is too important for politics as usual. We have a shared responsibility fix Social Security and make the system better; to keep seniors out of poverty and expand ownership for people of every background. And when we do, Republicans and Democrats will be able to stand together and take credit for doing is what is right for our children and our grandchildren.
(END VIDEO CLIP)
COSTELLO: Is it enough to end the stalemate over Social Security, though? Let's bring in our CNN Political Editor John Mercurio for some reaction.
Good morning, John.
JOHN MERCURIO, CNN POLITICAL EDITOR, DAYBREAK: Good morning, Carol.
COSTELLO: So President Bush has been touring the country trying to sell his Social Security plan. Last night he talked about it again. Did he make any head way?
MERCURIO: Well, he certainly made a little bit of news. I mean, he's been talking for the past couple of months about private accounts, hasn't really been able to sell the idea of private accounts but last night he brought up this proposal that would sort of -- he sort of addressed this solvency issue, sort of the larger issue.
A lot of people think by proposing, offering fewer benefits to wealthier Americans, larger benefits to low income Americans, called progressive indexing, that has also faced a lot of resistance.
So, this is a president who I think likes to take political gambles. He's clearly doing it this time. We'll see how it pans out.
COSTELLO: Why did he decide to come up with that particular idea, do you think?
MERCURIO: I don't know. I actually wasn't in the policy meeting with the discussion. I think the idea, though, is that he needs to try to peel off -- it really just comes down to votes. He needs to try to peel off some Democratic members of Congress, Senators particularly and members of the House. This is an idea, the progressive indexing offering larger benefits to low-income Americans. That appeals to Democrats, at least some Democrats.
I think the problem he's going to have is that almost all of them, in fact, I think every member of the Democratic Caucus has signed a unity pledge saying they won't support the president if his proposal includes personal retirement accounts.
COSTELLO: OK, so let's move on to another topic that the president covered last night. And that would be high gas prices. Here's what he had to say.
(BEGIN VIDEO CLIP)
BUSH: If we can get that have some excess capacity to put crude on the market, the increased supply, hopefully, will meet increased demand and therefore take the pressure off price.
Listen, the energy bill is certainly no quick fix. You can't waive a magic wand. I wish I could.
(END VIDEO CLIP)
COSTELLO: Translation? Ain't much I can do right now, right?
MERCURIO: Translation, don't look at me.
Yes, which is pretty standard and I think is pretty widely accepted that it is -- the actual price of gas is sort of an issue that is beyond the control of the president. But, you know, this is all part of a larger sales pitch for his energy plan, which he's trying to get through Congress at this time, so.
COSTELLO: Well, and that energy plan includes some conservation. But are those things actually going to go into practice by the end of his term?
MERCURIO: Yes, that's a very good question and I think most people at this point see a lack of enforcement within the conservation part of the plan.
I wanted to touch on, too. Because we've been asking out viewers this morning, whether the big four networks should have dumped out of the president's news conference at 9 o'clock so they could return to their prime-time programming. The White House moved the president's speech up to 8 o'clock to make sure the networks would carry his speech. Your reaction to that? MERCURIO: Well, I think that was probably a good move on their part. They wanted to try to maximize the number of people who watched -- who watched his remarks, you know? Obviously, we believe that everybody should be watching CNN, which carried his entire speech.
But I think, look, this is the struggle, this is the tussle that they go through with the prime time, with the networks, every time they try to hold a prime-time news conference. It is part of why the White House has said, privately, that they don't like to hold prime- time news conferences because they usually have to accommodate these networks' needs.
And you also sort of miss out, I think, the president does, in holding a prime-time news conference on an entire news cycle. If you hold sort of an earlier, during-the-day news conference you don't get as much attention. It is not as ornate, it is not held in the East Room. But you do get to have sort of a much bigger influence on that day, on the nightly news cycle.
COSTELLO: Understand. John Mercurio, joining us live this morning. Thank you.
Here's what we're working on, all new in the next hour of DAYBREAK. There is a new Internet scam out there. We'll tell you what's working and how you can avoid getting your identity "pharmed". Don't know what "pharming" is? Then keep watching.
And are you feeling lucky? There is a new palace in Las Vegas where you can win big, if you can get past the crowds and through the front door, that is.
(COMMERCIAL BREAK)
COSTELLO: Entertainment headlines for you this morning: The contestant seen as the front-runner to become the next "American Idol" has a few skeletons in his closet. Gossip websites revealed rocker Bo Bice was arrested for felony cocaine possession back in 2001 and for marijuana possession in 2003. The producers of "American Idol" say Bice was upfront with them about it from the beginning.
Hearing that singer Whitney Houston ended court-imposed drug rehab early for the second time is enough to make you shake your head.
Now, an ah-ha moment: "People" magazine reports it was her mother, gospel singer Sissy Houston, who asked the court to intervene an order the latest rehab.
Here's some real news about Tina Fey. She's one of the anchors from Saturday Night Live" fake news desk. Well, "People" magazine says she is pregnant. It will be the first child for Fey and her husband, SNL composer Jeff Richmond.
And the paparazzi are all over Hollywood's newest couple. It is heartthrob Tom Cruise and actress Katie Holmes.
Here's more now from CNN's David Haffenreffer. (BEGIN VIDEO TAPE)
DAVID HAFFENREFFER, CNN CORRESPONDENT, DAYBREAK (voice over): The big news broke around the world when these photos of the lovebirds were taken walking hand in hand in Rome. Their relationship is a new one and already they're being photographed like Hollywood royalty.
This was the scene in Rome when the two emerged from their hotel. Flashbulbs, sunglasses, limousines. The two were in town for the Oscars of Italy, where Cruise was given a lifetime achievement award by the president of Italy. Lots of press for such a fledgling relationship.
UNIDENTIFIED MALE: It's a very new relationship. They met simply when he asked her out on a date. And they've only been going out a couple of weeks. So there's not a whole lot to know about this relationship so far.
HAFFENREFFER: Holmes isn't wasting any time getting back in the saddle. She only recently called off her engagement to actor Chris Kline, the two were dating for about five years.
Katie is certainly a cutie, but a far cry from Cruise's last love interest, Spanish bombshell, Penelope Cruz. Tom Cruise also had two high-profile marriages, to Mimi Rogers and Nicole Kidman. And both ended in high-profile divorces.
Will Katie be able to deal with the limelight?
UNIDENTIFIED MALE: From now on for Katie Holmes the spotlight is going to be much more intense, just because she's dating Tom Cruise. The good news about dating Tom Cruise is he's a very well-oiled machine. So when he wants to go somewhere, privately, he's able to do that.
HAFFENREFFER: Both stars have some high-profile movies hitting theaters this summer. Cruise will star in "War of the Worlds" a modern-day version of H.G. Well's classic book. And you can expect Holmes in "Batman Begins" which explores the Batman legend.
(END VIDEOTAPE)
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 April 29, 2005 - 05:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
JAY LENO, THE TONIGHT SHOW WITH JAY LENO: Chaney, keep your eye -- watch what he does.
(LAUGHTER)
He goes over there. See, watch this. See, now what I'm saying, they're working. Yeah!
(END VIDEO CLIP)
(LAUGTHER)
CHAD MYERS, CNN METEROLOGIST: That was the Secret Service truck.
(LAUGHTER)
CAROL COSTELLO, CNN ANCHOR, DAYBREAK: I don't think I can recover from that.
Oh, let's get right to our e-mail question, shall we?
MYERS: Yes, do you know what it is?
COSTELLO: I barely remember now.
MYERS: Should the major networks have carried the entire news conference of the president live last night? A number of them cut out early so they could get to their prime-time programming. It is sweeps month, after all, Carol.
COSTELLO: After all. All right. This is from John in Chicago. "If were in the days of just four to five channels to watch I might be inclined to say the press conference should have been covered in its entirety. But given the number of choices of things to watch it is really not an issue.
"I would also venture to say that many people believe that people that the current administration is somewhat dis" --
Oh, it goes into like a political bent. But John, thank you for your comment. We're going to try to stay away from the politics this morning.
This is from our buddy in Vermont: "I agree with Carol, all the major networks that cut out early should have to relinquish on half hour of their number one-ranked, prime time programs and replace it with commercial free curling."
Somehow I don't think that's going to happen.
MYERS: You know what curling is, though Carol, right?
COSTELLO: Yes, I do. It's -- uh --
MYERS: Throw those big stones down the ice.
COSTELLO: Oh, I guess I don't then.
MYERS: No, it has nothing to do with an iron.
COSTELLO: No, no, no, what you do in the boats? You know, those big long boats? What is that called?
UNIDENTIFIED MALE: (INAUDIBLE)
COSTELLO: Rowing, crewing.
MYERS: Crew. No, to curl is to throw a 40-pound granite stone down the ice and try to get it to the red spot down on the end and knock your opponents big -- rocks out of the way. It's kind of a --
COSTELLO: It's Friday, isn't it?
MYERS: Yeah, it is Friday, Carol, because check this out. The elevators are broken, both escalators were going the wrong way, and I came in and my computer thought it was Saturday. Now that's the beginning of a day.
Sean in Roanoke, Virginia says, considering how few news conferences the president has, not only should all networks have covered this but citizens should have been given a holiday day off to watch it.
COSTELLO: Ah, see there you go.
MYERS: All right?
COSTELLO: DAYBREAK will be right back.
(COMMERCIAL BREAK)
COSTELLO: Good morning to you, welcome to the second half hour of DAYBREAK. From the Time Warner Center in New York I'm Carol Costello along with Chad Myers.
"Now in the News": It has been a violent Friday in Baghdad. There have been nine car bombings and one roadside bombing. At least 21 are dead, 71 hurt. The attacks targeted Iraqi soldiers and police.
In Washington, how does $2.6 trillion sound? Yes, indeed, big bucks. That is the 2006 budget blueprint approved by Congress. Among the provisions, $35 billion in spending cuts, $70 billion in tax cuts over five years. Now all they need to do is work out the rest of the details.
CNN has learned that the Shuttle Discovery will not be lifting off in May as originally planned. Concerns over the foam insulation on the external fuel tanks lead to the delay. The launch has been pushed back until at least July.
You heard about the $100,000 buck buried in the backyard in Massachusetts by three guys digging up a tree. The money is dated from 1899 to 1929. Now, police say they might have broken the law by not reporting it. Also, another man says the money is his. You knew that had to happen, Chad.
MYERS: Oh, I knew it was a bad idea to go on TV with that money.
COSTELLO: You knew it, somebody was going to claim it.
MYERS: I saw those guys on CNN and I'm thinking to myself, what are you guys doing?
(LAUGHTER)
Oh, man! Just take that money to a pawnshop there.
COSTELLO: And shut your mouth.
MYERS: And get your money for it and just be quiet, but obviously not. There is going to be more to that story for a long time. They were some beautiful bills in there, though. I really did enjoy seeing some of that old currency.
(WEATHER FORECAST)
COSTELLO: President Bush says his goal is that no American retire in poverty. At his first prime-time news conference since re- election, President Bush is standing by his plan that any changes to Social Security include investment retirement accounts.
The president stressed that private Social Security accounts could be voluntary. He also proposed benefits that would increase faster for lower income workers.
He also outlined his ideas to lower energy prices. They include better technology for conservation, making the most of existing energy resources, developing new sources of energy and helping other nations apply new technology.
Also the president had strong words for one of those other nations, that would be Russia. The president praised President Vladimir Putin's commitment to democracy, included some words of warning.
We take you "Beyond the Sound Bite" now.
(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're working closely with the Russians on the issue of vehicle-mounted weaponry to Syria. We didn't appreciate that, but we made ourselves clear.
As to Iran, what Russia has agree to do is to send highly enriched uranium to a nuclear civilian power plant. And then collect that uranium, after it is used for electricity, power purposes. That's what they've decided to do.
And I appreciate that gesture. See, what they recognize is that what America recognizes and what Great Britain, France and Germany recognize is that we can't trust the Iranians when it comes to enriching uranium; that they should not be allowed to enrich uranium.
And what the Iranians have said is, don't we deserve to have a nuclear power industry, just like you do? I kind of wonder why they need one since they have all the oil, but nevertheless, others in the world say, well, maybe that's their right to have their own civilian nuclear power industry.
And what has said: Fine, we'll provide you the uranium. We'll enrich it for you and provide it to you and then we'll collect. And I appreciate that gesture. I think it is --- so I think Vladimir is trying to help there. I know Vladimir Putin understands the dangers of an Iran with a nuclear weapon. And most the world understands that as well.
(END VIDEO CLIP)
COSTELLO: President Putin and President Bush are scheduled to meet in Moscow early next month. Right now, Vladimir Putin is in the Middle East. He's the first Russian leader to ever visit the Palestinian territories. He and Palestinian leader Mahmoud Abbas are due to hold a joint news conference. But lets head live now to region, our John Vause joins us from Jerusalem.
Good morning, John.
JOHN VAUSE, CNN CORRESPONDENT, DAYBREAK: Good morning, Carol. The meeting is still underway right now between Vladimir Putin and the Palestinian Authority President Mahmoud Abbas. The Russian president arrived in the West Bank city of Ramallah just over an hour or so ago now. Greeted by the Palestinian president there.
And then Mr. Putin paid his respects at the tomb of the late Yasser Arafat. This has been a difficult issue for many world leaders who have visited Ramallah. The Israelis don't look favorably upon this. Still, Mr. Putin laid a wreath at the tomb of Yasser Arafat. He paused for a moment, bowed his head.
In the past, when world leaders have turned up, like Tony Blair of Great Britain, he simply walked and nodded briefly and then moved on. In fact, when the former Secretary of State Colin Powell went to Ramallah, actually went to the West Bank, he went to Jericho to avoid this issue altogether. Now, during this meeting between Mr. Putin and Mr. Abbas, we understand they'll be discussing the sale of some 50 lightly armored personnel carriers. Mr. Putin says this is an attempt to bolster the Palestinian security forces. It is an issue which was discussed between Mr. Putin and the Israeli prime minister yesterday.
Israel had some concerns, but we're told by Israeli sources that both leaders have agreed that the sale should go ahead, providing that the sale of all military and security technology, by Russia, to the Palestinian is coordinated by the Israelis.
Also, today it is expected the Russians will give the Palestinian two transport helicopters. Now this will be for the Palestinian leadership to travel from the West Bank to Gaza and the West Bank to Jordan. And they will replace two other Russian helicopters which were destroyed by the Israelis a few years ago -- Carol.
COSTELLO: John Vause, reporting for us live this morning. Thank you.
Still to come on DAYBREAK, a determined president says he's not backing off on Social Security reform, John Bolton, or much else. We'll get reaction from our political editor in Washington.
Also, the latest in Las Vegas, with some high-priced but super sweet suites. But first, here's a look at what else is making news this Friday morning.
(GRAPHIC WITH HEADLINES)
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports. It is 5:44 Eastern. Here's what's all new this morning.
It is day three in the search for that missing bride to be in an Atlanta suburb. Investigators are trying to determine if a clump of hair and sweat pants found in the search are linked to the missing woman.
The Florida supreme court has refused to hear an appeal from conservative commentator Rush Limbaugh. The case centers on prosecutors' seizure of Limbaugh's medical records during an investigation into whether he illegally purchased painkillers.
In money news, mogul Steve Wynn has opened up his new $2.7- billion Wynn Casino in Las Vegas. Steve Wynn is the former owner of the Mirage, Treasure Island and the Bellagio. The 27,000 room casino is the first big casino to open in Vegas in the past five years.
In culture, the Broadway play, "Spamalot" received 12 Drama Desk award nominations. The Drama Desk awards are a traditional precursor for the Tony Awards. For those who don't know, "Spamalot" is a musical based on the 1975 movie "Monty Python and the Holy Grail".
In sports, a woman hit by a chair thrown by Texas pitcher Frank Francisco, is suing him, the team, and two other Rangers. The woman's nose was broken. Texas was playing Oakland when the pitcher go upset with hecklers.
To the Forecast Center now and Chad.
MYERS: I remember that game, surprised it didn't show up earlier.
(WEATHER FORECAST)
COSTELLO: That is a look at the latest headlines this morning. Still ahead on DAYBREAK, nothing stays a secret for very long in Hollywood. We'll tell you more on that new budding romance between you-know-who and you-know-who. We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Were you able to catch the president last night? He was blowing the bugle, no retreat over his plans to change Social Security. It is full steam ahead.
(BEGIN VIDEO CLIP)
BUSH: Social Security is too important for politics as usual. We have a shared responsibility fix Social Security and make the system better; to keep seniors out of poverty and expand ownership for people of every background. And when we do, Republicans and Democrats will be able to stand together and take credit for doing is what is right for our children and our grandchildren.
(END VIDEO CLIP)
COSTELLO: Is it enough to end the stalemate over Social Security, though? Let's bring in our CNN Political Editor John Mercurio for some reaction.
Good morning, John.
JOHN MERCURIO, CNN POLITICAL EDITOR, DAYBREAK: Good morning, Carol.
COSTELLO: So President Bush has been touring the country trying to sell his Social Security plan. Last night he talked about it again. Did he make any head way?
MERCURIO: Well, he certainly made a little bit of news. I mean, he's been talking for the past couple of months about private accounts, hasn't really been able to sell the idea of private accounts but last night he brought up this proposal that would sort of -- he sort of addressed this solvency issue, sort of the larger issue.
A lot of people think by proposing, offering fewer benefits to wealthier Americans, larger benefits to low income Americans, called progressive indexing, that has also faced a lot of resistance.
So, this is a president who I think likes to take political gambles. He's clearly doing it this time. We'll see how it pans out.
COSTELLO: Why did he decide to come up with that particular idea, do you think?
MERCURIO: I don't know. I actually wasn't in the policy meeting with the discussion. I think the idea, though, is that he needs to try to peel off -- it really just comes down to votes. He needs to try to peel off some Democratic members of Congress, Senators particularly and members of the House. This is an idea, the progressive indexing offering larger benefits to low-income Americans. That appeals to Democrats, at least some Democrats.
I think the problem he's going to have is that almost all of them, in fact, I think every member of the Democratic Caucus has signed a unity pledge saying they won't support the president if his proposal includes personal retirement accounts.
COSTELLO: OK, so let's move on to another topic that the president covered last night. And that would be high gas prices. Here's what he had to say.
(BEGIN VIDEO CLIP)
BUSH: If we can get that have some excess capacity to put crude on the market, the increased supply, hopefully, will meet increased demand and therefore take the pressure off price.
Listen, the energy bill is certainly no quick fix. You can't waive a magic wand. I wish I could.
(END VIDEO CLIP)
COSTELLO: Translation? Ain't much I can do right now, right?
MERCURIO: Translation, don't look at me.
Yes, which is pretty standard and I think is pretty widely accepted that it is -- the actual price of gas is sort of an issue that is beyond the control of the president. But, you know, this is all part of a larger sales pitch for his energy plan, which he's trying to get through Congress at this time, so.
COSTELLO: Well, and that energy plan includes some conservation. But are those things actually going to go into practice by the end of his term?
MERCURIO: Yes, that's a very good question and I think most people at this point see a lack of enforcement within the conservation part of the plan.
I wanted to touch on, too. Because we've been asking out viewers this morning, whether the big four networks should have dumped out of the president's news conference at 9 o'clock so they could return to their prime-time programming. The White House moved the president's speech up to 8 o'clock to make sure the networks would carry his speech. Your reaction to that? MERCURIO: Well, I think that was probably a good move on their part. They wanted to try to maximize the number of people who watched -- who watched his remarks, you know? Obviously, we believe that everybody should be watching CNN, which carried his entire speech.
But I think, look, this is the struggle, this is the tussle that they go through with the prime time, with the networks, every time they try to hold a prime-time news conference. It is part of why the White House has said, privately, that they don't like to hold prime- time news conferences because they usually have to accommodate these networks' needs.
And you also sort of miss out, I think, the president does, in holding a prime-time news conference on an entire news cycle. If you hold sort of an earlier, during-the-day news conference you don't get as much attention. It is not as ornate, it is not held in the East Room. But you do get to have sort of a much bigger influence on that day, on the nightly news cycle.
COSTELLO: Understand. John Mercurio, joining us live this morning. Thank you.
Here's what we're working on, all new in the next hour of DAYBREAK. There is a new Internet scam out there. We'll tell you what's working and how you can avoid getting your identity "pharmed". Don't know what "pharming" is? Then keep watching.
And are you feeling lucky? There is a new palace in Las Vegas where you can win big, if you can get past the crowds and through the front door, that is.
(COMMERCIAL BREAK)
COSTELLO: Entertainment headlines for you this morning: The contestant seen as the front-runner to become the next "American Idol" has a few skeletons in his closet. Gossip websites revealed rocker Bo Bice was arrested for felony cocaine possession back in 2001 and for marijuana possession in 2003. The producers of "American Idol" say Bice was upfront with them about it from the beginning.
Hearing that singer Whitney Houston ended court-imposed drug rehab early for the second time is enough to make you shake your head.
Now, an ah-ha moment: "People" magazine reports it was her mother, gospel singer Sissy Houston, who asked the court to intervene an order the latest rehab.
Here's some real news about Tina Fey. She's one of the anchors from Saturday Night Live" fake news desk. Well, "People" magazine says she is pregnant. It will be the first child for Fey and her husband, SNL composer Jeff Richmond.
And the paparazzi are all over Hollywood's newest couple. It is heartthrob Tom Cruise and actress Katie Holmes.
Here's more now from CNN's David Haffenreffer. (BEGIN VIDEO TAPE)
DAVID HAFFENREFFER, CNN CORRESPONDENT, DAYBREAK (voice over): The big news broke around the world when these photos of the lovebirds were taken walking hand in hand in Rome. Their relationship is a new one and already they're being photographed like Hollywood royalty.
This was the scene in Rome when the two emerged from their hotel. Flashbulbs, sunglasses, limousines. The two were in town for the Oscars of Italy, where Cruise was given a lifetime achievement award by the president of Italy. Lots of press for such a fledgling relationship.
UNIDENTIFIED MALE: It's a very new relationship. They met simply when he asked her out on a date. And they've only been going out a couple of weeks. So there's not a whole lot to know about this relationship so far.
HAFFENREFFER: Holmes isn't wasting any time getting back in the saddle. She only recently called off her engagement to actor Chris Kline, the two were dating for about five years.
Katie is certainly a cutie, but a far cry from Cruise's last love interest, Spanish bombshell, Penelope Cruz. Tom Cruise also had two high-profile marriages, to Mimi Rogers and Nicole Kidman. And both ended in high-profile divorces.
Will Katie be able to deal with the limelight?
UNIDENTIFIED MALE: From now on for Katie Holmes the spotlight is going to be much more intense, just because she's dating Tom Cruise. The good news about dating Tom Cruise is he's a very well-oiled machine. So when he wants to go somewhere, privately, he's able to do that.
HAFFENREFFER: Both stars have some high-profile movies hitting theaters this summer. Cruise will star in "War of the Worlds" a modern-day version of H.G. Well's classic book. And you can expect Holmes in "Batman Begins" which explores the Batman legend.
(END VIDEOTAPE)
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