Return to Transcripts main page

CNN Live At Daybreak

Another Blow to Abu Musab Al Zarqawi's Terror Network; President Bush on the Backside of a Four-Day Overseas Trip

Aired May 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: Straight ahead on DAYBREAK, another blow to Abu Musab al Zarqawi's terror network. Iraqi security forces say a top aide is spilling the beans.
Also, it is apparently a costly lesson for the government, a very costly lesson, when it comes to anti-terrorism equipment and your safety.

Plus...

(BEGIN VIDEO CLIP)

I am Isabella's mom. I did conceive her. I birthed her. I'm raising her.

(END VIDEO CLIP)

COSTELLO: A promising civil union disintegrates into a bitter custody battle.

It is Monday, May 9. You are watching DAYBREAK.

And good morning to you. From the Time Warner in New York, I'm Carol Costello, along with Chad Myers.

"Now in the News": A huge World War II celebration this morning in Moscow's Red Square. Presidents Bush and Putin talked politics earlier in their visit, but today was reserved for a big parade celebrating the defeat of Nazi Germany 60 years ago.

Two U.S. Marines are dead after a five-hour firefight with insurgents. It happened near Jalalabad in eastern Afghanistan. Two of the insurgents also confirmed dead.

Call him controversial, but you might soon be calling him Mr. Ambassador, as well. The chairman of the Senate Foreign Relations Committee says John Bolton's nomination to be U.N. ambassador will likely make it to the Senate floor this week.

More good news for drivers, have you noticed? Gas prices have dropped another 3 cents over the past two weeks. The reason? Higher crude oil and gasoline supplies. The average price for a gallon of self-serve regular is $2.21 per gallon.

To the Forecast Center, Rob Marciano in for Chad this morning.

Good morning.

ROB MARCIANO, CNN METEOROLOGIST, DAYBREAK: Hi, Carol. Have you noticed? I haven't noticed; 3 cents isn't quite enough to notice yet is it?

COSTELLO: I know.

(WEATHER FORECAST)

COSTELLO: In the fight for Iraq the U.S. military death toll has now soared to 1,602. Seven American troops were killed this weekend alone. As for the number of Iraqis killed so far? Well, there are no reliable figures but it is estimated at 20,000 dead, with 300 killed just in the past 10 days.

Two Americans killed in a suicide car bombing in Baghdad have now been identified. Todd James Vanetta (ph) of White Hole, Arkansas and Brandon James Thomas of Salt Lake City, Utah. The two were military veterans working for a private security contractor. In all, 22 people were killed in that attack on Saturday.

Wait a minute, many of us thought the violence would stop once Iraq had its own government. But insurgents are still killing. And one of the ringleaders, Abu Musab al Zarqawi is still out there, not to say there hasn't been some success.

Take a look: Of the 20 people connected Zarqawi's inner circle, 13 have been captured by U.S. forces, seven killed. And one, Abu Taha (ph), is still wanted. Joining us now from Washington, John McLaughlin, a former acting CIA director and now a CNN national security adviser.

Good morning.

JOHN MCLAUGHLIN, CNN NATIONAL SECURITY ADVISER: Good morning, Carol.

COSTELLO: You know Zarqawi is said to be ill, his inner circle nearly decimated, still 300 Iraq security forces targeted and killed in the past few days. It doesn't sound like a weakened organization, is it?

MCLAUGHLIN: Well, each time one of these guys is taken off the street, it is an important advance for those who are opposing them, for the U.S. military and American intelligence, but this is a very diverse insurgency. There are at least three components to it. Zarqawi is one of them, but then there are unreconstructed Ba'athists, there is an assortment of Iraqi nationalists, who are still seeking to bring down this new government. And while it is good news it is premature to be overly optimistic.

COSTELLO: Let's talk about this man that they nabbed over the weekend, Mohammed Ammar al-Zubaydi, he's described by the U.S. as a prominent figure in the Zarqawi organization. What more can you tell us about him? MCLAUGHLIN: Well, as we understand this guy, he selected targets, he assigned suicide bombers, he brought foreign fighters into Iraq. And he's the guy who probably was responsible for that big attack on the Abu Ghuraib prison. So he's a big fish in the Zarqawi network and this should slow them down a little bit. And I would say with Zarqawi, I think regarding his organization, we're kind of peeling the onion. This is, as your set up pointed out about the 20th associate captured so far.

That said, Zarqawi is very elusive himself, recruits still come into the country, the borders are still porous. And intimidating the population is extremely important to these insurgents and that is what that's what they're trying to do now.

COSTELLO: I understand that, but the U.S. military seems to be putting a lot of importance on Al Zarqawi, yet his organization is weakened, but violence has stepped up in the recent days. So, can we come to any conclusion at all that he is not the primary force behind this? He's the guy that is just in the forefront because he appears in all of those gruesome videos, holding machetes to hostages' throats?

MCLAUGHLIN: Yes, I think he is probably the main driver for the suicide attacks. So when we're looking at those, he is probably the guy who organizing those. And this fellow who was captured was key to that. We didn't have suicide attacks over the weekend. There were bomb attacks and IEDs and other things. There may be some setback on that score, but I think its really too soon to tell.

COSTELLO: You know the other interesting thing, the U.S. military is issuing press releases talking about what this Mohammed Ammar al-Zubaydi is saying about Al Zarqawi. Supposedly he said Zarqawi became hysterical. You know, he was -- he became hysterical because he didn't know where he was on February 20, when he came close to being captured. Why would the U.S. military release this classified information now?

MCLAUGHLIN: I would guess they're just trying to show that they are putting a dent in the system. We've had earlier indications that Zarqawi has felt under pressure and has found it difficult to operate in Iraq, although obviously he's done so with great success. But it isn't the first time that we've had indications of the kind panicky attitude on his part. I guess they're just putting it out to emphasize that.

COSTELLO: John McLaughlin, CNN national security adviser, joining us this morning. Thank you.

Now to the most wanted man in Afghanistan, and the world for that matter, Osama bin Laden. Four years after the U.S. military went into Afghanistan with orders to hunt him down, he is still at large. Now we're hearing from a former CIA agent who was tracking bin Laden. He reveals the unusual orders he got from the head of the U.S. counter- terrorism unit.

(BEGIN VIDEO CLIP) GARY SCHROEN, FMR. CIA OFFICER: He did ask that we, once we got bin Laden and killed him, that we bring his head -- send his head back in a cardboard box, on dry ice. So that he could take it down and show the president.

(END VIDEO CLIP)

COSTELLO: The former agent says bin Laden has made a mockery of the U.S. effort to catch him.

In other news "Across America" this morning, a judge declares a mistrial in the Ohio highway shootings case. Charles McCoy has pleaded innocent by reason of insanity to a dozen highway shootings in 2003 and '04. One person was killed. Jurors could not decide if McCoy was insane. Prosecutors do plan to retry him.

Police in Georgia have partially re-opened the child murder case that terrorized the Atlanta area a quarter century ago. Wayne Williams, remember him? He was convicted of killing two young men and presumed responsible for the murders of more than 20 other people, all of them black, most of them boys. A local police chief says he believes Williams is innocent, so he has reopened several of the cases.

A dramatic weekend rescue off the North Carolina coast. A Coast Guard chopper had to hold hoist up two men after their sailboat ran into hurricane force winds. The men say high waves knocked them overboard twice. The name of their boat, At Ease.

How much are you willing to pay for your safety? We'll find out all about the safety net swing voters who are now not so sure they voted for the right man.

And all those billions spent on screening devices to secure the nation's seaport, borders and airports. Guess what? It might have all been for naught.

And a Georgia teacher who thinks he did the right thing, is looking for a new job today. We'll talk to him live.

But first, here's a look at what else is making news this Monday morning, May 9.

(GRAPHIC WITH HEADLINES)

(COMMERCIAL BREAK)

COSTELLO: President Bush is on the backside of his four-day overseas trip. A little more than two hours ago he was in Red Square for a big Victory Day Parade. Let's check on the trip highlights. Let's head live to Moscow now and our Moscow Bureau Chief Jill Dougherty.

Hello, Jill.

JILL DOUGHERTY, CNN MOSCOW BUREAU CHIEF, DAYBREAK: Hello, Carol. Well, you know it was really an amazing parade. It lasted for one hour. And it was filled with a lot of the symbolism of the Soviet Union. But that is natural, because of course the Soviet Union was the country at that time back in 1945, that was contributing to the victory over Nazi Germany.

And so you saw some of the vehicles of the period and some soldiers dressed in World War II uniforms, and some of those veterans. And now they're gray-haired men and women, who at that point were young people off to the battlefront. In fact, they actually -- there was a parade in 1941, in which the people when directly off to the battlefield.

And in those stands watching today, a different world completely. There were the representatives of the countries that had been enemies during World War II, specifically the Germans, the Japanese, the Italians, all sitting there together, with the Allies, the United States, and others.

George Bush was here of course, and he sat right next to Vladimir Putin. The two men have been at odds to a certain extent over this issue of democracy. And the charges by the Bush administration that Vladimir Putin is backsliding on democracy. But that seemed to be put aside, at least for the afternoon. The men talking very closely with each other, spending much of the day together.

And today, however, as President Bush sets off for the next part of his trip, there could be a little bit more of that tension emerging, because after all he is going to Tiblisi, Georgia, the scene of the Rose Revolution, which is something that Vladimir Putin considers illegal.

COSTELLO: Jill Dougherty reporting live from Moscow this morning. Thank you.

Your news, money, weather and sports, it is 6:15 Eastern. Here's what's all new this morning.

In Baghdad, there has been a suicide car bomb attack at a police check point. At least two are dead, nine others wounded.

In money news, GM motors says, absolutely no way. The automaker denies a report on "The Wall Street Journal" web site that its talking with Toyota about a quicker, wider offering of gas/electric hybrid cars.

In culture, Orlando Bloom is king of the box office this weekend. His battle filled epic, "King of Heaven" beat out the competition, earning $20 million in its debut.

In sports, wonder how many people, this morning are talking about their good fortune. That is if they bet on Giacomo at the Kentucky Derby. The 50/1 shot had won just once before in seven races.

To the Forecast Center now and Rob, in for Chad today.

(WEATHER FORECAST)

COSTELLO: Those are the latest headlines for you this morning. Still to come on DAYBREAK, wonder why your cell phone bill seems to creep up every single gosh darn month? You are certainly not alone. We've got the answer and some not-so-great news for the future, when DAYBREAK continues.

But first, a look at some famous people celebrating a birthday today.

(COMMERCIAL BREAK)

COSTELLO: Time now for a little "Business Buzz". You may have noticed your cell phone bill growing recently. More than usual that is, that is because cities and states are raising taxes on cell phones. Carrie Lee has more on this.

Why are they doing that?

CARRIE LEE, CNN FINANCIAL CORRESPONDENT: Well, they need to make money somewhere, right? So cities and states are trying to make up lost revenue as more people switch to traditional phone lines to cell phones.

The FCC says in 2004 there were 182 million cell phone subscribers, out number land line by 50 million. And a wireless industry association says taxes now account for $9 on the average cell phone bill of $51. That is what, almost 20 percent?

That includes federal taxes and charges for emergency 911 service. And I'm sure if you look at your bill there are some cryptic little descriptions as well.

COSTELLO: It is in really tiny writing, so you can't really notice it.

LEE: Exactly. It can be hard to figure out what they're really for. And some cities are coming up with other more creative ways to boost revenue. As you have been talking about this morning, Detroit asking voters to approve a 2 percent tax on fast food. They're basically trying to do what they can to keep the sales numbers coming in, so.

COSTELLO: That was our e-mail question in the 5 o'clock hour of DAYBREAK. And people do not like the idea of taxing fast food.

What about being fiscally responsible?

LEE: Hey, that's the bottom line.

COSTELLO: Balancing your budget?

LEE: That's the bottom line.

COSTELLO: What about not running up huge deficits? LEE: That's the thing though. A lot of times if you sign up with a cell phone company, they'll run down the fees. You want to find out how much you're being charged every month before you go in and then you'll see all these things that you weren't necessarily aware of when you originally sign up. What do you do? You get into a contract, it's hard to get out. So, I think they need to be a little bit more up front about exactly how much it is going to cost.

COSTELLO: The next step is using Internet. The Internet for your phone service and then they'll find some way to tax you on that, too.

LEE: Isn't that the voice over Internet protocol, what you're talking about, it is so much cheaper. A lot of people are starting to -- the big companies are starting to jump on that bandwagon as well. It is becoming more mainstream, so it is certainly a good option for some people.

COSTELLO: We should all practice that theme from "Broadcast News". I'm mad. I'm not going to take it anymore. I'm going to throw my cell phone out the window and never use it again!

LEE: We all want to be connected, so you know you have to take what you can get.

COSTELLO: It is hard to carry that computer around with you. Thank you, Carrie.

LEE: All right.

COSTELLO: As Americans we seem to have one thing in common. We want it all, but we certainly do not want to pay for it. As you know, very little comes for free. Now there is a name for it, though. It is called the "Safety Net Nation". It was brought to our attention by Rick Dunham, the White House correspondent for "BusinessWeek" magazine. He joins us now from Washington.

Good morning.

RICK DUNHAM, AUTHOR, "SAFETY NET NATION": Good morning, Carol.

COSTELLO: You talk about safety-net swing voters, who are they?

DUNHAM: Safety-net swing voters tend to be white men. They tend to be slightly below average education. Their patriotic, they tend to be socially conservative. Many voted for George Bush, many still think he's doing a good job, but they don't like what he's doing on Social Security.

COSTELLO: And other issues, or is it just Social Security? And why Social Security?

DUNHAM: Well, Social Security, just because it is the issue of the moment. But they feel strongly about things like health care. The government should give them some sort of security in old age and that they shouldn't be left to the vagaries of the capitalists system. COSTELLO: OK, before you go on we have some we have some stats, that you provided for us, actually. It is interesting, as you say, what they believe we're entitled to. According to a Civil Society Institute poll, when asked if it is a good idea for us to have guaranteed health care, 67 percent said yes; 27 percent said no.

That is interesting because that isn't going to happen anytime soon.

DUNHAM: Exactly.

COSTELLO: But how politically -- I mean how politically significant is this -- for politicians?

DUNHAM: Well, the significance is that there is not a visceral reaction against a government run, or at least government regulated health care system. You're right. The talk of socialized medicine scares off some people, but in terms of what people want, they want the government to help them in case there is a situation with a health care crisis, so they wouldn't lose their retirement. They wouldn't worry about lack of economic security because of something like that.

COSTELLO: Another interesting stat, when asked who is responsible for guaranteeing a minimum standard of living for retirees, this goes back to the Social Security issue, 47 percent say the government, 35 percent say the individual.

DUNHAM: Right, and I think you are seeing that in the debate over Social Security, where George Bush is getting that core 35 percent who believe the individual is primarily responsible. What he needs to do is reach out and get the people who are in the middle, or think that the government should have a role but that the individual should be able to supplement it.

COSTELLO: So to wrap this up and put it in a nutshell, why is this important?

DUNHAM: Well, it is important because George Bush can't get a majority of the people on his side unless he reaches out to some of these people who voted for him, but who want a government safety net. And he can't get the 50 percent, which he needs to do to pressure those wavering lawmakers to vote for what he wants on Social Security.

COSTELLO: Rick Dunham, White House correspondent for "BusinessWeek" magazine, thanks for joining us this morning.

Still to come on DAYBREAK. Billions of dollars spent on security since 9/11 and what do we have to show for it? A lot of problems according to one report. We'll sort through the latest data for you.

And later on a look at what happens to a child of same-sex parents after those parents break up. It is a story you'll see only on CNN. Stay tuned.

(COMMERCIAL BREAK)

COSTELLO: 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": Soldiers in the streets and cannons booming. It is not a war, it is a celebration. This morning President Bush joined other leaders in Moscow's Red Square to mark the World War II defeat of Nazi Germany.

A fierce offensive is going on right now against insurgents and so-called foreign fighters in the Anbar Province of western Iraq. The U.S. military says at least 75 insurgents and other fighters have been killed near the Syrian border.

The family of an Australian held hostage in Iraq says it will make a donation to the Iraqi people. Douglas Wood appeared on video shown last week on Arab television with a gun to his head. No information on just how much his family is offering.

The head of the International Atomic Energy Agency says he believes North Korea has five to six nuclear devices. Mohammad ElBaradei says he's very concerned the Pyongyang will test one of them.

To the Forecast Center, to Rob Marciano in today for Chad Myers.

(WEATHER FORECAST)

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 May 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: Straight ahead on DAYBREAK, another blow to Abu Musab al Zarqawi's terror network. Iraqi security forces say a top aide is spilling the beans.
Also, it is apparently a costly lesson for the government, a very costly lesson, when it comes to anti-terrorism equipment and your safety.

Plus...

(BEGIN VIDEO CLIP)

I am Isabella's mom. I did conceive her. I birthed her. I'm raising her.

(END VIDEO CLIP)

COSTELLO: A promising civil union disintegrates into a bitter custody battle.

It is Monday, May 9. You are watching DAYBREAK.

And good morning to you. From the Time Warner in New York, I'm Carol Costello, along with Chad Myers.

"Now in the News": A huge World War II celebration this morning in Moscow's Red Square. Presidents Bush and Putin talked politics earlier in their visit, but today was reserved for a big parade celebrating the defeat of Nazi Germany 60 years ago.

Two U.S. Marines are dead after a five-hour firefight with insurgents. It happened near Jalalabad in eastern Afghanistan. Two of the insurgents also confirmed dead.

Call him controversial, but you might soon be calling him Mr. Ambassador, as well. The chairman of the Senate Foreign Relations Committee says John Bolton's nomination to be U.N. ambassador will likely make it to the Senate floor this week.

More good news for drivers, have you noticed? Gas prices have dropped another 3 cents over the past two weeks. The reason? Higher crude oil and gasoline supplies. The average price for a gallon of self-serve regular is $2.21 per gallon.

To the Forecast Center, Rob Marciano in for Chad this morning.

Good morning.

ROB MARCIANO, CNN METEOROLOGIST, DAYBREAK: Hi, Carol. Have you noticed? I haven't noticed; 3 cents isn't quite enough to notice yet is it?

COSTELLO: I know.

(WEATHER FORECAST)

COSTELLO: In the fight for Iraq the U.S. military death toll has now soared to 1,602. Seven American troops were killed this weekend alone. As for the number of Iraqis killed so far? Well, there are no reliable figures but it is estimated at 20,000 dead, with 300 killed just in the past 10 days.

Two Americans killed in a suicide car bombing in Baghdad have now been identified. Todd James Vanetta (ph) of White Hole, Arkansas and Brandon James Thomas of Salt Lake City, Utah. The two were military veterans working for a private security contractor. In all, 22 people were killed in that attack on Saturday.

Wait a minute, many of us thought the violence would stop once Iraq had its own government. But insurgents are still killing. And one of the ringleaders, Abu Musab al Zarqawi is still out there, not to say there hasn't been some success.

Take a look: Of the 20 people connected Zarqawi's inner circle, 13 have been captured by U.S. forces, seven killed. And one, Abu Taha (ph), is still wanted. Joining us now from Washington, John McLaughlin, a former acting CIA director and now a CNN national security adviser.

Good morning.

JOHN MCLAUGHLIN, CNN NATIONAL SECURITY ADVISER: Good morning, Carol.

COSTELLO: You know Zarqawi is said to be ill, his inner circle nearly decimated, still 300 Iraq security forces targeted and killed in the past few days. It doesn't sound like a weakened organization, is it?

MCLAUGHLIN: Well, each time one of these guys is taken off the street, it is an important advance for those who are opposing them, for the U.S. military and American intelligence, but this is a very diverse insurgency. There are at least three components to it. Zarqawi is one of them, but then there are unreconstructed Ba'athists, there is an assortment of Iraqi nationalists, who are still seeking to bring down this new government. And while it is good news it is premature to be overly optimistic.

COSTELLO: Let's talk about this man that they nabbed over the weekend, Mohammed Ammar al-Zubaydi, he's described by the U.S. as a prominent figure in the Zarqawi organization. What more can you tell us about him? MCLAUGHLIN: Well, as we understand this guy, he selected targets, he assigned suicide bombers, he brought foreign fighters into Iraq. And he's the guy who probably was responsible for that big attack on the Abu Ghuraib prison. So he's a big fish in the Zarqawi network and this should slow them down a little bit. And I would say with Zarqawi, I think regarding his organization, we're kind of peeling the onion. This is, as your set up pointed out about the 20th associate captured so far.

That said, Zarqawi is very elusive himself, recruits still come into the country, the borders are still porous. And intimidating the population is extremely important to these insurgents and that is what that's what they're trying to do now.

COSTELLO: I understand that, but the U.S. military seems to be putting a lot of importance on Al Zarqawi, yet his organization is weakened, but violence has stepped up in the recent days. So, can we come to any conclusion at all that he is not the primary force behind this? He's the guy that is just in the forefront because he appears in all of those gruesome videos, holding machetes to hostages' throats?

MCLAUGHLIN: Yes, I think he is probably the main driver for the suicide attacks. So when we're looking at those, he is probably the guy who organizing those. And this fellow who was captured was key to that. We didn't have suicide attacks over the weekend. There were bomb attacks and IEDs and other things. There may be some setback on that score, but I think its really too soon to tell.

COSTELLO: You know the other interesting thing, the U.S. military is issuing press releases talking about what this Mohammed Ammar al-Zubaydi is saying about Al Zarqawi. Supposedly he said Zarqawi became hysterical. You know, he was -- he became hysterical because he didn't know where he was on February 20, when he came close to being captured. Why would the U.S. military release this classified information now?

MCLAUGHLIN: I would guess they're just trying to show that they are putting a dent in the system. We've had earlier indications that Zarqawi has felt under pressure and has found it difficult to operate in Iraq, although obviously he's done so with great success. But it isn't the first time that we've had indications of the kind panicky attitude on his part. I guess they're just putting it out to emphasize that.

COSTELLO: John McLaughlin, CNN national security adviser, joining us this morning. Thank you.

Now to the most wanted man in Afghanistan, and the world for that matter, Osama bin Laden. Four years after the U.S. military went into Afghanistan with orders to hunt him down, he is still at large. Now we're hearing from a former CIA agent who was tracking bin Laden. He reveals the unusual orders he got from the head of the U.S. counter- terrorism unit.

(BEGIN VIDEO CLIP) GARY SCHROEN, FMR. CIA OFFICER: He did ask that we, once we got bin Laden and killed him, that we bring his head -- send his head back in a cardboard box, on dry ice. So that he could take it down and show the president.

(END VIDEO CLIP)

COSTELLO: The former agent says bin Laden has made a mockery of the U.S. effort to catch him.

In other news "Across America" this morning, a judge declares a mistrial in the Ohio highway shootings case. Charles McCoy has pleaded innocent by reason of insanity to a dozen highway shootings in 2003 and '04. One person was killed. Jurors could not decide if McCoy was insane. Prosecutors do plan to retry him.

Police in Georgia have partially re-opened the child murder case that terrorized the Atlanta area a quarter century ago. Wayne Williams, remember him? He was convicted of killing two young men and presumed responsible for the murders of more than 20 other people, all of them black, most of them boys. A local police chief says he believes Williams is innocent, so he has reopened several of the cases.

A dramatic weekend rescue off the North Carolina coast. A Coast Guard chopper had to hold hoist up two men after their sailboat ran into hurricane force winds. The men say high waves knocked them overboard twice. The name of their boat, At Ease.

How much are you willing to pay for your safety? We'll find out all about the safety net swing voters who are now not so sure they voted for the right man.

And all those billions spent on screening devices to secure the nation's seaport, borders and airports. Guess what? It might have all been for naught.

And a Georgia teacher who thinks he did the right thing, is looking for a new job today. We'll talk to him live.

But first, here's a look at what else is making news this Monday morning, May 9.

(GRAPHIC WITH HEADLINES)

(COMMERCIAL BREAK)

COSTELLO: President Bush is on the backside of his four-day overseas trip. A little more than two hours ago he was in Red Square for a big Victory Day Parade. Let's check on the trip highlights. Let's head live to Moscow now and our Moscow Bureau Chief Jill Dougherty.

Hello, Jill.

JILL DOUGHERTY, CNN MOSCOW BUREAU CHIEF, DAYBREAK: Hello, Carol. Well, you know it was really an amazing parade. It lasted for one hour. And it was filled with a lot of the symbolism of the Soviet Union. But that is natural, because of course the Soviet Union was the country at that time back in 1945, that was contributing to the victory over Nazi Germany.

And so you saw some of the vehicles of the period and some soldiers dressed in World War II uniforms, and some of those veterans. And now they're gray-haired men and women, who at that point were young people off to the battlefront. In fact, they actually -- there was a parade in 1941, in which the people when directly off to the battlefield.

And in those stands watching today, a different world completely. There were the representatives of the countries that had been enemies during World War II, specifically the Germans, the Japanese, the Italians, all sitting there together, with the Allies, the United States, and others.

George Bush was here of course, and he sat right next to Vladimir Putin. The two men have been at odds to a certain extent over this issue of democracy. And the charges by the Bush administration that Vladimir Putin is backsliding on democracy. But that seemed to be put aside, at least for the afternoon. The men talking very closely with each other, spending much of the day together.

And today, however, as President Bush sets off for the next part of his trip, there could be a little bit more of that tension emerging, because after all he is going to Tiblisi, Georgia, the scene of the Rose Revolution, which is something that Vladimir Putin considers illegal.

COSTELLO: Jill Dougherty reporting live from Moscow this morning. Thank you.

Your news, money, weather and sports, it is 6:15 Eastern. Here's what's all new this morning.

In Baghdad, there has been a suicide car bomb attack at a police check point. At least two are dead, nine others wounded.

In money news, GM motors says, absolutely no way. The automaker denies a report on "The Wall Street Journal" web site that its talking with Toyota about a quicker, wider offering of gas/electric hybrid cars.

In culture, Orlando Bloom is king of the box office this weekend. His battle filled epic, "King of Heaven" beat out the competition, earning $20 million in its debut.

In sports, wonder how many people, this morning are talking about their good fortune. That is if they bet on Giacomo at the Kentucky Derby. The 50/1 shot had won just once before in seven races.

To the Forecast Center now and Rob, in for Chad today.

(WEATHER FORECAST)

COSTELLO: Those are the latest headlines for you this morning. Still to come on DAYBREAK, wonder why your cell phone bill seems to creep up every single gosh darn month? You are certainly not alone. We've got the answer and some not-so-great news for the future, when DAYBREAK continues.

But first, a look at some famous people celebrating a birthday today.

(COMMERCIAL BREAK)

COSTELLO: Time now for a little "Business Buzz". You may have noticed your cell phone bill growing recently. More than usual that is, that is because cities and states are raising taxes on cell phones. Carrie Lee has more on this.

Why are they doing that?

CARRIE LEE, CNN FINANCIAL CORRESPONDENT: Well, they need to make money somewhere, right? So cities and states are trying to make up lost revenue as more people switch to traditional phone lines to cell phones.

The FCC says in 2004 there were 182 million cell phone subscribers, out number land line by 50 million. And a wireless industry association says taxes now account for $9 on the average cell phone bill of $51. That is what, almost 20 percent?

That includes federal taxes and charges for emergency 911 service. And I'm sure if you look at your bill there are some cryptic little descriptions as well.

COSTELLO: It is in really tiny writing, so you can't really notice it.

LEE: Exactly. It can be hard to figure out what they're really for. And some cities are coming up with other more creative ways to boost revenue. As you have been talking about this morning, Detroit asking voters to approve a 2 percent tax on fast food. They're basically trying to do what they can to keep the sales numbers coming in, so.

COSTELLO: That was our e-mail question in the 5 o'clock hour of DAYBREAK. And people do not like the idea of taxing fast food.

What about being fiscally responsible?

LEE: Hey, that's the bottom line.

COSTELLO: Balancing your budget?

LEE: That's the bottom line.

COSTELLO: What about not running up huge deficits? LEE: That's the thing though. A lot of times if you sign up with a cell phone company, they'll run down the fees. You want to find out how much you're being charged every month before you go in and then you'll see all these things that you weren't necessarily aware of when you originally sign up. What do you do? You get into a contract, it's hard to get out. So, I think they need to be a little bit more up front about exactly how much it is going to cost.

COSTELLO: The next step is using Internet. The Internet for your phone service and then they'll find some way to tax you on that, too.

LEE: Isn't that the voice over Internet protocol, what you're talking about, it is so much cheaper. A lot of people are starting to -- the big companies are starting to jump on that bandwagon as well. It is becoming more mainstream, so it is certainly a good option for some people.

COSTELLO: We should all practice that theme from "Broadcast News". I'm mad. I'm not going to take it anymore. I'm going to throw my cell phone out the window and never use it again!

LEE: We all want to be connected, so you know you have to take what you can get.

COSTELLO: It is hard to carry that computer around with you. Thank you, Carrie.

LEE: All right.

COSTELLO: As Americans we seem to have one thing in common. We want it all, but we certainly do not want to pay for it. As you know, very little comes for free. Now there is a name for it, though. It is called the "Safety Net Nation". It was brought to our attention by Rick Dunham, the White House correspondent for "BusinessWeek" magazine. He joins us now from Washington.

Good morning.

RICK DUNHAM, AUTHOR, "SAFETY NET NATION": Good morning, Carol.

COSTELLO: You talk about safety-net swing voters, who are they?

DUNHAM: Safety-net swing voters tend to be white men. They tend to be slightly below average education. Their patriotic, they tend to be socially conservative. Many voted for George Bush, many still think he's doing a good job, but they don't like what he's doing on Social Security.

COSTELLO: And other issues, or is it just Social Security? And why Social Security?

DUNHAM: Well, Social Security, just because it is the issue of the moment. But they feel strongly about things like health care. The government should give them some sort of security in old age and that they shouldn't be left to the vagaries of the capitalists system. COSTELLO: OK, before you go on we have some we have some stats, that you provided for us, actually. It is interesting, as you say, what they believe we're entitled to. According to a Civil Society Institute poll, when asked if it is a good idea for us to have guaranteed health care, 67 percent said yes; 27 percent said no.

That is interesting because that isn't going to happen anytime soon.

DUNHAM: Exactly.

COSTELLO: But how politically -- I mean how politically significant is this -- for politicians?

DUNHAM: Well, the significance is that there is not a visceral reaction against a government run, or at least government regulated health care system. You're right. The talk of socialized medicine scares off some people, but in terms of what people want, they want the government to help them in case there is a situation with a health care crisis, so they wouldn't lose their retirement. They wouldn't worry about lack of economic security because of something like that.

COSTELLO: Another interesting stat, when asked who is responsible for guaranteeing a minimum standard of living for retirees, this goes back to the Social Security issue, 47 percent say the government, 35 percent say the individual.

DUNHAM: Right, and I think you are seeing that in the debate over Social Security, where George Bush is getting that core 35 percent who believe the individual is primarily responsible. What he needs to do is reach out and get the people who are in the middle, or think that the government should have a role but that the individual should be able to supplement it.

COSTELLO: So to wrap this up and put it in a nutshell, why is this important?

DUNHAM: Well, it is important because George Bush can't get a majority of the people on his side unless he reaches out to some of these people who voted for him, but who want a government safety net. And he can't get the 50 percent, which he needs to do to pressure those wavering lawmakers to vote for what he wants on Social Security.

COSTELLO: Rick Dunham, White House correspondent for "BusinessWeek" magazine, thanks for joining us this morning.

Still to come on DAYBREAK. Billions of dollars spent on security since 9/11 and what do we have to show for it? A lot of problems according to one report. We'll sort through the latest data for you.

And later on a look at what happens to a child of same-sex parents after those parents break up. It is a story you'll see only on CNN. Stay tuned.

(COMMERCIAL BREAK)

COSTELLO: 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": Soldiers in the streets and cannons booming. It is not a war, it is a celebration. This morning President Bush joined other leaders in Moscow's Red Square to mark the World War II defeat of Nazi Germany.

A fierce offensive is going on right now against insurgents and so-called foreign fighters in the Anbar Province of western Iraq. The U.S. military says at least 75 insurgents and other fighters have been killed near the Syrian border.

The family of an Australian held hostage in Iraq says it will make a donation to the Iraqi people. Douglas Wood appeared on video shown last week on Arab television with a gun to his head. No information on just how much his family is offering.

The head of the International Atomic Energy Agency says he believes North Korea has five to six nuclear devices. Mohammad ElBaradei says he's very concerned the Pyongyang will test one of them.

To the Forecast Center, to Rob Marciano in today for Chad Myers.

(WEATHER FORECAST)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com