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CNN Live At Daybreak

U.S. and Iraqi Troops in Action This Morning; U.S. and Britain Sending a Ton of Money Overseas

Aired June 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: It is Tuesday, June 7.
U.S. and Iraqi troops are in action this morning. Troops, tanks and planes converge on the insurgent stronghold of Tal Afar. CNN has exclusive pictures to show u.

Also, they've been allies in war. Now they're allies in aid. The U.S. and Britain are sending a ton of money overseas.

And a new warning for millions of consumers. Your personal information is at risk.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

COSTELLO: And good morning to you.

We'll have more on the U.S. push into Tal Afar in just a moment.

Also ahead, the Supreme Court shoots down medical marijuana. But will the ruling be enforced?

And Arlington National Cemetery is our nation's most cherished burial ground. But now there's a challenge facing those in charge -- they're running out of room.

But first, now in the news, a vote expected today on another one of President Bush's judicial nominees. Last month's Senate compromise should mean confirmation for California Supreme Court Justice Janice Rogers Brown. She was first nominated for a seat on a federal appeals court two years ago.

The U.S. is taking a bite out of crime. The FBI says the number of murders fell last year for the first time since 1999. Other types of violent crimes have also dropped.

It looks like a river, but, hey, this is a road. Check out the flooding in central Pennsylvania. Workers had to rescue a couple of cars and at least one driver. Some vehicles damaged, but luckily, Chad, no one hurt -- good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning.

A lot of vehicles damaged yesterday with hail. I'll tell you what, there's 255 reports of hail damage around. And you've got to get to a penny size or bigger -- typically, it takes about a quarter to put a good ding in your car. But I'm sure people will be looking at the hoods like this today looking for them.

(WEATHER REPORT)

COSTELLO: Up first this hour, urban warfare in Iraq. A big time push targets insurgents in northern Iraq. U.S. and Iraqi troops have detained 23 suspects so far.

So let's head live to Tal Afar and our Jane Arraf, who is embedded with U.S. forces.

Take it away -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Carol, there's a major offensive going into this city, which is an insurgent stronghold, according to the U.S. military. Just about 40 miles from the Syrian border, it has been infiltrated, and actually held in the grip of insurgents.

U.S. soldiers who have been going in there have been going in in tanks and Bradley fighting vehicles, and this morning they were in in force, just before dawn.

About (AUDIO GAP)...

COSTELLO: And we apologize about the audio. As you might expect, it's difficult to get a transmission from northern Iraq. But 4,000 U.S. troops are involved in that push to combat the insurgents there. It's right next to the Syrian border. Iraqi forces also involved, about 200 of them, fighting alongside U.S. troops. They've detained about 23 insurgents.

When we can get back to Jane Arraf, we certainly will.

Now to the stand-off over North Korea's nuclear weapons program. U.S. and North Korean officials met in New York, but there is no definitive word on whether North Korea is ready to resume six party talks. It's been a year since the last round of discussions aimed at ending North Korea's nuclear program.

Police in Aruba say two men arrested in the missing teen investigation are not being cooperative. In the meantime, the search for 18-year-old Natalee Holloway goes on. It's now been more than a week since she was supposed to come home from her graduation trip.

CNN's Karl Penhaul in Aruba with the latest.

(BEGIN VIDEO TAPE)

KARL PENHAUL, CNN CORRESPONDENT: Around 500 government employees took part in a large scale search on the windswept eastern tip of Aruba. The Aruban government had given them time off from work to take part in the hunt for clues as to the whereabouts of the missing teenager, Natalee Holloway.

Those government employees were joined by Dutch Marines and members of Aruba's search and rescue team. Using sticks, they prodded through mangrove areas. They also prodded through thorny scrub in an area covered by cactus. They haven't found anything, we are told by police.

The area of today's search, though, was very close to the town, San Nicolas, where two men aged 28 and 30 were arrested by police on suspicion that they are connected to the disappearance of Natalee Holloway exactly one week ago.

A senior police official has told me that in the course of the day, those two suspects underwent further interrogation. But he says that so far they haven't been cooperative. The police are pursuing two urgent lines of inquiry, first of all, to press these men on any clues as to the whereabouts of Natalee Holloway; and secondly, to try and determine if these two men have any links to three other young men who were last seen in the company of Natalee Holloway outside Carlos & Charlie's Bar in Aruba. That was the last time Natalee was seen.

Karl Penhaul, CNN, Palm Beach, Aruba.

(END VIDEO TAPE)

COSTELLO: Now to California, where jurors in the Michael Jackson case will be back at it again today, trying to reach a verdict.

So let's head live to Santa Maria, California to see what's happened so far -- good morning, Kareen Wynter.

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

Well, jurors deliberated for about six hours yesterday, and while they failed to reach a decision, they did inform the judge at one point that they had a question. The judge then called back in the prosecution and defense.

Now, the specifics of this were not disclosed.

Meantime, the waiting game here continues.

(BEGIN VIDEO TAPE)

WYNTER (voice-over): The next time we see Michael Jackson heading to court, it could be to learn his fate, when an eight woman, four man jury hands down that final decision. The entertainer will await word of the verdict here, at his Neverland Ranch home.

Jackson was indicted last April on 10 felony child molestation charges, including a conspiracy charge. The judge also gave jurors the option to find Jackson guilty of a lesser count, furnishing alcohol to a minor, a misdemeanor.

The singer has maintained his innocence.

MICHAEL JACKSON: Please keep an open mind and let me have my day in court.

WYNTER: If convicted of any of the four separate molestation charges, Jackson faces several years in state prison. Some legal analysts say jurors may be more inclined to find him guilty if they believe prior allegations of sexual misconduct by the pop star and, of course, testimony from his current accuser.

MICHAEL CARDOZA, LEGAL ANALYST: If this jury starts with the past sexual misconduct and they go through those and they find that they do not believe any of those, I think we will have a quick not guilty verdict.

WYNTER: The 12 jurors deliberating Jackson's future range in age from 20 to 79 years old; seven whites, four Hispanics and one Asian; no African-Americans.

Some jurors have said they're fanes of Jackson's music. Two have family members charged with or victims of sex crimes.

(END VIDEO TAPE)

WYNTER: And once the jurors reach a decision, the judge has given all parties involved here one hour to get back to the courthouse to hear the verdict -- Carol.

COSTELLO: Kareen Wynter live in California this morning.

In other "News Across America" now, a Utah judge sentenced convicted wife killer Mark Hacking to six years to life in prison. As you know, this case made headlines last year, when it was first believed Laurie Hacking was kidnapped while she went jogging. Mark Hacking later admitted to shooting his wife while she slept. The Utah Parole Board will decide the length of his sentence, but the judge says she hopes it's a very long time.

A $14,000 reward has been given to the man who identified "Precious Doe." That was the name given to a small girl found murdered in Missouri four years ago. Information from Thurman McIntosh led to the identification of the 3-year-old girl and the arrest of her mother on murder charges.

The Washington governor's race is finally over. A state judge upheld the 129 vote win by Democrat Christine Gregoire. Republican challenger Dino Rossi says he'll now drop any more challenges. Rossi had been declared the winner until a third recount in January gave Gregoire the victory.

A follow-up now on a deadly dog mauling we've been covering in San Francisco. Mayor Gavin Newsom has appointed a panel to find ways to prevent such attacks. Now, this could eventually lead to restrictions on certain breeds. The mayor's move follows the death of 12-year-old Nicholas Faibish, who was mauled by one or both of his family's pitbulls.

But his mother has a message for people. She says don't be angry at the dogs.

(BEGIN VIDEO CLIP)

MAUREEN FAIBISH, MOTHER: I don't want people to make this a dog thing. It was an accident. It was something that happened and I think god has a plan for everybody and it was time for Nicky to go. And, you know, I have a lot of guilt but, you know, I have to -- I have to realize that this is -- it was just -- he was destined to go at this time.

(END VIDEO CLIP)

COSTELLO: One of the pitbulls was shot and killed by a police officer. Animal control officials took custody of the other pitbull.

Still to come on DAYBREAK, where is the best place for laptops and latte? We'll show you how the country's -- we'll show you the country's top wireless cities in six minutes.

And an old ally crosses the pond. Why President Bush may greet Tony Blair with American greenbacks. That's at the bottom of this hour.

Also, the Supreme Court speaks. But are states listening? At 35 minutes after, why the justices' ruling on medical marijuana may be difficult to enforce.

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

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": The key thing to think about when your saving for your child's education is to get an early start. That's the single most important thing you can do. If you can start putting money away when the child is very young, it gives that money a chance to compound and grow and you wind up with more money when the child is ready to go to college.

Today, there are a lot of different ways to invest for a child's education. You may want to look at one of the popular 529 Plans, where you essentially can put anywhere up to about $11,000 a year. Another option is what's known as the Coverdale Education Savings Account. You can only put in $2,000 a year. And in both cases, the money is growing tax-free while it's within the account and when you pull it out, you don't pay any tax on it.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 6:15 Eastern.

Here's what's all new this morning.

U.S. and Iraqi troops are right now engaged in another major military operation against insurgents in Iraq. This time the offensive is in Tal Afar, which is close to the Syrian border. One U.S. soldier and four suspected insurgents have been killed so far in this operation.

In money news, a former Enron figure out of jail. Lee Fastow was released into a halfway house to finish out her one year sentence. The wife of Enron finance chief Andrew Fastow was jailed on tax charges related to her husband's kickbacks from the company.

In culture, Molly Ringwald says a sequel to "Sixteen Candles" may be on the way. The movie itself is celebrating its 21st birthday. Ringwald says she's finally seen a sequel script that she likes. So how old would that make her? Let's see, 21 plus 16 is 37 years old. That'll be interesting, won't it?

In sports, the St. Louis Cardinals used pitching and defense to beat the Boston Red Sox in their World Series rematch. The Cards took this game 7-1, but that may be little consolation for the team that lost last year's World Series in four straight games.

To the Forecast Center and Chad.

MYERS: Oh, look out! Oh.

COSTELLO: Oh.

MYERS: Got it!

Good morning, Boston.

(WEATHER REPORT)

COSTELLO: Chad, stick around.

MYERS: OK.

COSTELLO: We've got a story for computer junkies, you could say. Where do you go to hook up to the Internet without a traditional hookup? We're talking...

MYERS: Starbucks.

COSTELLO: Wi-fi. Yes, that's one place. We're talking wi-fi here, high speed Internet access through a small radio tower. That means you can surf the Web from coffeehouses like Starbucks...

MYERS: Right.

COSTELLO: ... restaurants, book -- yes, you get it.

A survey by computer chip maker Intel says the top wireless cities are these.

MYERS: Oh.

COSTELLO: And the top four don't surprise me, but look at number five.

MYERS: Right. Toledo! COSTELLO: Yes. I know...

MYERS: They must be having wi-fi at Tony Paco's. I don't know.

COSTELLO: Inside all those hot dogs they have.

So number one is Seattle.

MYERS: Yes.

COSTELLO: Number two, San Francisco; number three, Austin, Texas; number four, Portland; and number five, Toledo, Ohio.

MYERS: I'm a little surprised that maybe Miami is not on there, a little bit more progressive cities across the Northeast not on there. Maybe it's just a number of places per population, too. I mean New York City is -- I found it ironic that Youngstown, Ohio was one of the least unwired cities.

COSTELLO: You found that ironic?

MYERS: Yes, because Toledo is in the top four and Youngstown is in the bottom four.

COSTELLO: Well, that's because Toledo has got it going on.

MYERS: That far away. That's right.

COSTELLO: Yes.

Still to come on DAYBREAK, information from almost four million Citigroup customers goes missing. Find out who was affected and what's being done to help them.

But first, we want to say good morning, Philadelphia.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

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

Alan Greenspan cannot explain it. The Federal Reserve chief says he's not sure why long-term interest rates are falling, especially since the Fed has been boosting short-term rates. Speaking by satellite to an economic conference in China, Greenspan says he rejects the idea that massive foreign investment is holding U.S. rates down.

Being environmentally conscious could save you some bucks. New Haven, Connecticut is allowing free parking at the meters for hybrid cars and for cars that run on alternative fuels. New Haven has become the fourth city to do this. It joins Los Angeles, San Jose, California, along with Albuquerque, New Mexico.

UPS admits is lost a very small package. So, what's missing? I'm sure you've heard about this by now. The personal information of close to four million Citigroup customers in that very small package.

J.J. Ramberg in for Carrie Lee today.

J.J. RAMBERG, CNN CORRESPONDENT: Yes, better to lose a small Christmas present, right?

COSTELLO: Exactly.

RAMBERG: In that, 3.9 million customers they lost the information of. Now, this is the biggest breach of employee data or customer data that a company has reported so far. It was the personal information. The company is saying that it included the Social Security number, the account numbers and the payment history of their Citi Financial customers.

Now, both UPS and Citigroup -- UPS was the -- the company that was delivering this information -- said that they don't see any fraud right now, they don't think that it was stolen. But nonetheless, this is scary. You don't want to see this happen right now, right? I mean and this is just one in a string...

COSTELLO: So...

RAMBERG: ... because...

COSTELLO: So they don't think it was stolen, although they don't know that.

RAMBERG: They don't think it was stolen. They're pretty certain that it wasn't stolen. And, also, Citigroup is saying listen, for these customers, this is people who already have opened accounts, they already have credit. It's not -- they're not going to be able to get credit again without that customer's approval.

But privacy advocates...

COSTELLO: That makes me feel so much better.

RAMBERG: Right. Well, privacy advocates are saying but you can do all kinds of other things with this information once you get it. But Citigroup is saying your accounts aren't going to be breached here.

Now, Citigroup sent a letter to all of their customers. They gave them a telephone number and this number is where you call to work on trying to fix this and check your credit.

COSTELLO: You know what might happen? So, you know, somebody will steal, maybe, your Social Security number, they'll open up a credit card account and they'll charge a bunch of stuff. You'll call your credit card company, who says I didn't do this. The credit card companies will absorb all of those losses and your interest rates will go up.

RAMBERG: This is a real problem. Identity theft obviously is a real problem. And what's a little bit embarrassing about this is that Citigroup's done so much marketing around fixing identity theft. And UPS does so much marketing about how they can track packages so easily. And so both of them here are in a little bit of deep water.

But this is just one of a string. Time Warner had an incident like this. Bank of America had an incident like this. And so companies are really trying to do stuff to boost up security.

COSTELLO: Ameritrade. I mean it's just crazy.

RAMBERG: Yes. It's...

COSTELLO: So what...

RAMBERG: Well, Citigroup has come out and said listen, we're in the midst of changing how we move this data and it's going to be electronically moved starting in July.

COSTELLO: And, of course, that presents its own can of worms.

RAMBERG: Its own problems. Right. Exactly.

COSTELLO: A quick look at the futures?

RAMBERG: They're supposed to nudge a little bit higher. People -- there's not a lot of economic news coming out this week and so there's not a lot to direct investors. Yesterday the market was up a tiny bit because of some merger activity. But it seems that most people are trying to wait to see what Greenspan is going to say when he talks on Thursday.

COSTELLO: And we'll all be listening.

J.J. Ramberg, thank you.

Still to come on DAYBREAK, the U.S. and its closest ally join forces to help Africa. We'll have details for you.

And later, medical marijuana takes a hit from the U.S. Supreme Court. Find out why the justices just said no.

You are watching DAYBREAK for a Tuesday.

(COMMERCIAL BREAK)

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

COSTELLO: And good morning to you.

Thank you for being with us.

President Bush and Prime Minister Tony Blair come together today to announce a major initiative. We'll take you live to Ten Downing Street straight ahead.

Also coming up this half hour, an ongoing war and aging veterans mean big challenges for Arlington National Cemetery. We'll talk about what they're doing to keep up. They seem to be running out of room.

But first, now in the news, insurgents have targeted Iraqi Army checkpoints this morning. Three suicide car bombings at checkpoints in northern Iraq. They've killed at least six Iraqi soldiers. A dozen other people have been wounded.

Elsewhere in Iraq, U.S. and Iraqi forces mount a major operation in targeting insurgents in Tal Afar, near the Syrian border. At least 23 insurgents have been detained so far. One U.S. soldier has died in the operation.

Police in Aruba say two men charged in the disappearance of an Alabama teenager are not being cooperative. It's been more than a week since Natalee Holloway was supposed to come home from her senior trip. The search for the 18-year-old continues.

To the Forecast Center -- good morning, Chad Myers.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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


Aired June 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: It is Tuesday, June 7.
U.S. and Iraqi troops are in action this morning. Troops, tanks and planes converge on the insurgent stronghold of Tal Afar. CNN has exclusive pictures to show u.

Also, they've been allies in war. Now they're allies in aid. The U.S. and Britain are sending a ton of money overseas.

And a new warning for millions of consumers. Your personal information is at risk.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

COSTELLO: And good morning to you.

We'll have more on the U.S. push into Tal Afar in just a moment.

Also ahead, the Supreme Court shoots down medical marijuana. But will the ruling be enforced?

And Arlington National Cemetery is our nation's most cherished burial ground. But now there's a challenge facing those in charge -- they're running out of room.

But first, now in the news, a vote expected today on another one of President Bush's judicial nominees. Last month's Senate compromise should mean confirmation for California Supreme Court Justice Janice Rogers Brown. She was first nominated for a seat on a federal appeals court two years ago.

The U.S. is taking a bite out of crime. The FBI says the number of murders fell last year for the first time since 1999. Other types of violent crimes have also dropped.

It looks like a river, but, hey, this is a road. Check out the flooding in central Pennsylvania. Workers had to rescue a couple of cars and at least one driver. Some vehicles damaged, but luckily, Chad, no one hurt -- good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning.

A lot of vehicles damaged yesterday with hail. I'll tell you what, there's 255 reports of hail damage around. And you've got to get to a penny size or bigger -- typically, it takes about a quarter to put a good ding in your car. But I'm sure people will be looking at the hoods like this today looking for them.

(WEATHER REPORT)

COSTELLO: Up first this hour, urban warfare in Iraq. A big time push targets insurgents in northern Iraq. U.S. and Iraqi troops have detained 23 suspects so far.

So let's head live to Tal Afar and our Jane Arraf, who is embedded with U.S. forces.

Take it away -- Jane.

JANE ARRAF, CNN CORRESPONDENT: Carol, there's a major offensive going into this city, which is an insurgent stronghold, according to the U.S. military. Just about 40 miles from the Syrian border, it has been infiltrated, and actually held in the grip of insurgents.

U.S. soldiers who have been going in there have been going in in tanks and Bradley fighting vehicles, and this morning they were in in force, just before dawn.

About (AUDIO GAP)...

COSTELLO: And we apologize about the audio. As you might expect, it's difficult to get a transmission from northern Iraq. But 4,000 U.S. troops are involved in that push to combat the insurgents there. It's right next to the Syrian border. Iraqi forces also involved, about 200 of them, fighting alongside U.S. troops. They've detained about 23 insurgents.

When we can get back to Jane Arraf, we certainly will.

Now to the stand-off over North Korea's nuclear weapons program. U.S. and North Korean officials met in New York, but there is no definitive word on whether North Korea is ready to resume six party talks. It's been a year since the last round of discussions aimed at ending North Korea's nuclear program.

Police in Aruba say two men arrested in the missing teen investigation are not being cooperative. In the meantime, the search for 18-year-old Natalee Holloway goes on. It's now been more than a week since she was supposed to come home from her graduation trip.

CNN's Karl Penhaul in Aruba with the latest.

(BEGIN VIDEO TAPE)

KARL PENHAUL, CNN CORRESPONDENT: Around 500 government employees took part in a large scale search on the windswept eastern tip of Aruba. The Aruban government had given them time off from work to take part in the hunt for clues as to the whereabouts of the missing teenager, Natalee Holloway.

Those government employees were joined by Dutch Marines and members of Aruba's search and rescue team. Using sticks, they prodded through mangrove areas. They also prodded through thorny scrub in an area covered by cactus. They haven't found anything, we are told by police.

The area of today's search, though, was very close to the town, San Nicolas, where two men aged 28 and 30 were arrested by police on suspicion that they are connected to the disappearance of Natalee Holloway exactly one week ago.

A senior police official has told me that in the course of the day, those two suspects underwent further interrogation. But he says that so far they haven't been cooperative. The police are pursuing two urgent lines of inquiry, first of all, to press these men on any clues as to the whereabouts of Natalee Holloway; and secondly, to try and determine if these two men have any links to three other young men who were last seen in the company of Natalee Holloway outside Carlos & Charlie's Bar in Aruba. That was the last time Natalee was seen.

Karl Penhaul, CNN, Palm Beach, Aruba.

(END VIDEO TAPE)

COSTELLO: Now to California, where jurors in the Michael Jackson case will be back at it again today, trying to reach a verdict.

So let's head live to Santa Maria, California to see what's happened so far -- good morning, Kareen Wynter.

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

Well, jurors deliberated for about six hours yesterday, and while they failed to reach a decision, they did inform the judge at one point that they had a question. The judge then called back in the prosecution and defense.

Now, the specifics of this were not disclosed.

Meantime, the waiting game here continues.

(BEGIN VIDEO TAPE)

WYNTER (voice-over): The next time we see Michael Jackson heading to court, it could be to learn his fate, when an eight woman, four man jury hands down that final decision. The entertainer will await word of the verdict here, at his Neverland Ranch home.

Jackson was indicted last April on 10 felony child molestation charges, including a conspiracy charge. The judge also gave jurors the option to find Jackson guilty of a lesser count, furnishing alcohol to a minor, a misdemeanor.

The singer has maintained his innocence.

MICHAEL JACKSON: Please keep an open mind and let me have my day in court.

WYNTER: If convicted of any of the four separate molestation charges, Jackson faces several years in state prison. Some legal analysts say jurors may be more inclined to find him guilty if they believe prior allegations of sexual misconduct by the pop star and, of course, testimony from his current accuser.

MICHAEL CARDOZA, LEGAL ANALYST: If this jury starts with the past sexual misconduct and they go through those and they find that they do not believe any of those, I think we will have a quick not guilty verdict.

WYNTER: The 12 jurors deliberating Jackson's future range in age from 20 to 79 years old; seven whites, four Hispanics and one Asian; no African-Americans.

Some jurors have said they're fanes of Jackson's music. Two have family members charged with or victims of sex crimes.

(END VIDEO TAPE)

WYNTER: And once the jurors reach a decision, the judge has given all parties involved here one hour to get back to the courthouse to hear the verdict -- Carol.

COSTELLO: Kareen Wynter live in California this morning.

In other "News Across America" now, a Utah judge sentenced convicted wife killer Mark Hacking to six years to life in prison. As you know, this case made headlines last year, when it was first believed Laurie Hacking was kidnapped while she went jogging. Mark Hacking later admitted to shooting his wife while she slept. The Utah Parole Board will decide the length of his sentence, but the judge says she hopes it's a very long time.

A $14,000 reward has been given to the man who identified "Precious Doe." That was the name given to a small girl found murdered in Missouri four years ago. Information from Thurman McIntosh led to the identification of the 3-year-old girl and the arrest of her mother on murder charges.

The Washington governor's race is finally over. A state judge upheld the 129 vote win by Democrat Christine Gregoire. Republican challenger Dino Rossi says he'll now drop any more challenges. Rossi had been declared the winner until a third recount in January gave Gregoire the victory.

A follow-up now on a deadly dog mauling we've been covering in San Francisco. Mayor Gavin Newsom has appointed a panel to find ways to prevent such attacks. Now, this could eventually lead to restrictions on certain breeds. The mayor's move follows the death of 12-year-old Nicholas Faibish, who was mauled by one or both of his family's pitbulls.

But his mother has a message for people. She says don't be angry at the dogs.

(BEGIN VIDEO CLIP)

MAUREEN FAIBISH, MOTHER: I don't want people to make this a dog thing. It was an accident. It was something that happened and I think god has a plan for everybody and it was time for Nicky to go. And, you know, I have a lot of guilt but, you know, I have to -- I have to realize that this is -- it was just -- he was destined to go at this time.

(END VIDEO CLIP)

COSTELLO: One of the pitbulls was shot and killed by a police officer. Animal control officials took custody of the other pitbull.

Still to come on DAYBREAK, where is the best place for laptops and latte? We'll show you how the country's -- we'll show you the country's top wireless cities in six minutes.

And an old ally crosses the pond. Why President Bush may greet Tony Blair with American greenbacks. That's at the bottom of this hour.

Also, the Supreme Court speaks. But are states listening? At 35 minutes after, why the justices' ruling on medical marijuana may be difficult to enforce.

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

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": The key thing to think about when your saving for your child's education is to get an early start. That's the single most important thing you can do. If you can start putting money away when the child is very young, it gives that money a chance to compound and grow and you wind up with more money when the child is ready to go to college.

Today, there are a lot of different ways to invest for a child's education. You may want to look at one of the popular 529 Plans, where you essentially can put anywhere up to about $11,000 a year. Another option is what's known as the Coverdale Education Savings Account. You can only put in $2,000 a year. And in both cases, the money is growing tax-free while it's within the account and when you pull it out, you don't pay any tax on it.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 6:15 Eastern.

Here's what's all new this morning.

U.S. and Iraqi troops are right now engaged in another major military operation against insurgents in Iraq. This time the offensive is in Tal Afar, which is close to the Syrian border. One U.S. soldier and four suspected insurgents have been killed so far in this operation.

In money news, a former Enron figure out of jail. Lee Fastow was released into a halfway house to finish out her one year sentence. The wife of Enron finance chief Andrew Fastow was jailed on tax charges related to her husband's kickbacks from the company.

In culture, Molly Ringwald says a sequel to "Sixteen Candles" may be on the way. The movie itself is celebrating its 21st birthday. Ringwald says she's finally seen a sequel script that she likes. So how old would that make her? Let's see, 21 plus 16 is 37 years old. That'll be interesting, won't it?

In sports, the St. Louis Cardinals used pitching and defense to beat the Boston Red Sox in their World Series rematch. The Cards took this game 7-1, but that may be little consolation for the team that lost last year's World Series in four straight games.

To the Forecast Center and Chad.

MYERS: Oh, look out! Oh.

COSTELLO: Oh.

MYERS: Got it!

Good morning, Boston.

(WEATHER REPORT)

COSTELLO: Chad, stick around.

MYERS: OK.

COSTELLO: We've got a story for computer junkies, you could say. Where do you go to hook up to the Internet without a traditional hookup? We're talking...

MYERS: Starbucks.

COSTELLO: Wi-fi. Yes, that's one place. We're talking wi-fi here, high speed Internet access through a small radio tower. That means you can surf the Web from coffeehouses like Starbucks...

MYERS: Right.

COSTELLO: ... restaurants, book -- yes, you get it.

A survey by computer chip maker Intel says the top wireless cities are these.

MYERS: Oh.

COSTELLO: And the top four don't surprise me, but look at number five.

MYERS: Right. Toledo! COSTELLO: Yes. I know...

MYERS: They must be having wi-fi at Tony Paco's. I don't know.

COSTELLO: Inside all those hot dogs they have.

So number one is Seattle.

MYERS: Yes.

COSTELLO: Number two, San Francisco; number three, Austin, Texas; number four, Portland; and number five, Toledo, Ohio.

MYERS: I'm a little surprised that maybe Miami is not on there, a little bit more progressive cities across the Northeast not on there. Maybe it's just a number of places per population, too. I mean New York City is -- I found it ironic that Youngstown, Ohio was one of the least unwired cities.

COSTELLO: You found that ironic?

MYERS: Yes, because Toledo is in the top four and Youngstown is in the bottom four.

COSTELLO: Well, that's because Toledo has got it going on.

MYERS: That far away. That's right.

COSTELLO: Yes.

Still to come on DAYBREAK, information from almost four million Citigroup customers goes missing. Find out who was affected and what's being done to help them.

But first, we want to say good morning, Philadelphia.

DAYBREAK will be right back.

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

Alan Greenspan cannot explain it. The Federal Reserve chief says he's not sure why long-term interest rates are falling, especially since the Fed has been boosting short-term rates. Speaking by satellite to an economic conference in China, Greenspan says he rejects the idea that massive foreign investment is holding U.S. rates down.

Being environmentally conscious could save you some bucks. New Haven, Connecticut is allowing free parking at the meters for hybrid cars and for cars that run on alternative fuels. New Haven has become the fourth city to do this. It joins Los Angeles, San Jose, California, along with Albuquerque, New Mexico.

UPS admits is lost a very small package. So, what's missing? I'm sure you've heard about this by now. The personal information of close to four million Citigroup customers in that very small package.

J.J. Ramberg in for Carrie Lee today.

J.J. RAMBERG, CNN CORRESPONDENT: Yes, better to lose a small Christmas present, right?

COSTELLO: Exactly.

RAMBERG: In that, 3.9 million customers they lost the information of. Now, this is the biggest breach of employee data or customer data that a company has reported so far. It was the personal information. The company is saying that it included the Social Security number, the account numbers and the payment history of their Citi Financial customers.

Now, both UPS and Citigroup -- UPS was the -- the company that was delivering this information -- said that they don't see any fraud right now, they don't think that it was stolen. But nonetheless, this is scary. You don't want to see this happen right now, right? I mean and this is just one in a string...

COSTELLO: So...

RAMBERG: ... because...

COSTELLO: So they don't think it was stolen, although they don't know that.

RAMBERG: They don't think it was stolen. They're pretty certain that it wasn't stolen. And, also, Citigroup is saying listen, for these customers, this is people who already have opened accounts, they already have credit. It's not -- they're not going to be able to get credit again without that customer's approval.

But privacy advocates...

COSTELLO: That makes me feel so much better.

RAMBERG: Right. Well, privacy advocates are saying but you can do all kinds of other things with this information once you get it. But Citigroup is saying your accounts aren't going to be breached here.

Now, Citigroup sent a letter to all of their customers. They gave them a telephone number and this number is where you call to work on trying to fix this and check your credit.

COSTELLO: You know what might happen? So, you know, somebody will steal, maybe, your Social Security number, they'll open up a credit card account and they'll charge a bunch of stuff. You'll call your credit card company, who says I didn't do this. The credit card companies will absorb all of those losses and your interest rates will go up.

RAMBERG: This is a real problem. Identity theft obviously is a real problem. And what's a little bit embarrassing about this is that Citigroup's done so much marketing around fixing identity theft. And UPS does so much marketing about how they can track packages so easily. And so both of them here are in a little bit of deep water.

But this is just one of a string. Time Warner had an incident like this. Bank of America had an incident like this. And so companies are really trying to do stuff to boost up security.

COSTELLO: Ameritrade. I mean it's just crazy.

RAMBERG: Yes. It's...

COSTELLO: So what...

RAMBERG: Well, Citigroup has come out and said listen, we're in the midst of changing how we move this data and it's going to be electronically moved starting in July.

COSTELLO: And, of course, that presents its own can of worms.

RAMBERG: Its own problems. Right. Exactly.

COSTELLO: A quick look at the futures?

RAMBERG: They're supposed to nudge a little bit higher. People -- there's not a lot of economic news coming out this week and so there's not a lot to direct investors. Yesterday the market was up a tiny bit because of some merger activity. But it seems that most people are trying to wait to see what Greenspan is going to say when he talks on Thursday.

COSTELLO: And we'll all be listening.

J.J. Ramberg, thank you.

Still to come on DAYBREAK, the U.S. and its closest ally join forces to help Africa. We'll have details for you.

And later, medical marijuana takes a hit from the U.S. Supreme Court. Find out why the justices just said no.

You are watching DAYBREAK for a Tuesday.

(COMMERCIAL BREAK)

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

COSTELLO: And good morning to you.

Thank you for being with us.

President Bush and Prime Minister Tony Blair come together today to announce a major initiative. We'll take you live to Ten Downing Street straight ahead.

Also coming up this half hour, an ongoing war and aging veterans mean big challenges for Arlington National Cemetery. We'll talk about what they're doing to keep up. They seem to be running out of room.

But first, now in the news, insurgents have targeted Iraqi Army checkpoints this morning. Three suicide car bombings at checkpoints in northern Iraq. They've killed at least six Iraqi soldiers. A dozen other people have been wounded.

Elsewhere in Iraq, U.S. and Iraqi forces mount a major operation in targeting insurgents in Tal Afar, near the Syrian border. At least 23 insurgents have been detained so far. One U.S. soldier has died in the operation.

Police in Aruba say two men charged in the disappearance of an Alabama teenager are not being cooperative. It's been more than a week since Natalee Holloway was supposed to come home from her senior trip. The search for the 18-year-old continues.

To the Forecast Center -- good morning, Chad Myers.

MYERS: Good morning, Carol.

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