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CNN Live At Daybreak

Update on Missing Alabama Teenager; Car Bomb Explodes Near Baghdad Police Station

Aired June 20, 2005 - 06:31   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


ANNOUNCER: From the Time Warner center in New York, this is DAYBREAK, with Carol Costello and Chad Myers.
CAROL COSTELLO, CNN ANCHOR: And good morning to you. Thank you for waking up with us.

Coming up this half-hour, GM found a way to lure the customers. That's ahead in our "Business Buzz."

Also ahead, it's no announcement but it's close. Republican Senator Joe Biden talks politics and presidential intentions, and he's not alone.

But first, "Now in the News."

Secretary of State Condoleezza Rice is making a strong push for democratic reforms in Egypt. During her speech at Cairo's American University this hour, Rice called on Egyptians to become an example for the region.

A car bomb explodes near a Baghdad police station today. At least five officers are dead. The explosion occurred during a firefight between Iraqi forces and insurgents.

Also, a suicide car bomb exploded inside an Iraqi police compound in Erbil, killing at least 12 people and wounding more than 100 others.

Hundreds of people head back out in the next hour to look for a missing 11-year-old Utah Boy Scout. Brennan Hawkins (ph) was on a camping trip when he disappeared Friday in the mountains of northeastern Utah.

And starting today, you can view more CNN reports online. Just visit CNN.com, click on "watch," and check out the most popular stories in a range of categories, like politics, sports and entertainment.

To the forecast center.

(WEATHER REPORT)

COSTELLO: Police in Aruba still aren't speculating about whether missing Alabama teenager Natalee Holloway is dead or alive. She's been missing now for three weeks.

For the latest on the investigation and the search, we turn to CNN's Chris Lawrence. He joins us from Palm Beach, Aruba.

Hello -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Good morning, Carol.

The investigation definitely seems to be picking up. And the police here in Aruba definitely seem to be focusing more of their attention on the Van Der Sloot family. That includes 17-year-old Joran Van Der Sloot, who was the young man who kind of hit it off with Natalee the night she disappeared. And also now his father, Paul Van Der Sloot.

Take a look here and you can see, this is Paul Van Der Sloot literally running out of the police station over the weekend, after being questioned by police for up to four hours.

Now, Paul Van Der Sloot is a judge-in-training here on the island, and police brought him in to talk to him, and then brought him in again on Sunday to talk to him again. So, definitely more interest there.

They've also searched the Van Der Sloot's home. And we're told that Paul Van Der Sloot was not allowed to see his son, although the mother, his wife, was allowed to see him.

Now, the family of Natalee Holloway has come out publicly and said they do believe that the Van Der Sloot family knows more than they're actually telling police.

Here is Natalee Holloway's mother leaving a church service -- heading into church service over the weekend. She went to a vigil, surrounded by supporters. She's received a tremendous amount of support from people here on the island. There is anywhere from 10 to 12 family members here at any one time. Natalee Holloway's mother said she's been angry at times, frustrated at other times.

But she's also pleased with some of the movement we've seen, including the arrest of this man, the fourth suspect arrested on Friday. His name is Steven Croes. And he worked as a deejay on a local party boat here in Aruba, basically running booze cruises just off the island.

Now, he is due back in court later this morning, because prosecutors will have to show the judge basically just cause why they should be allowed to keep for another eight days without actually bringing charges against him -- Carol.

COSTELLO: Chris Lawrence live in Aruba this morning.

How does $477 billion sound? When this day ends, that's likely the new price tag for the wars in Afghanistan and Iraq. Take a look. There it is. There it is. The House will vote today to give President Bush an extra $45 billion for military operations. That's on top of $85 billion already approved for 2006 and $350 billion already allocated.

So let's head live to Washington and political analyst Amy Walter to talk more about this.

Good morning, Amy.

AMY WALTER, COOK POLITICAL REPORT: Good morning, Carol.

COSTELLO: So, $477 billion. No end in sight to the end of the war in Iraq. It makes you wonder how high the price tag could go.

WALTER: Well, you know, we're starting to see some in Congress say -- you know, again, they're not going to vote against this legislation. They're going to continue to fund the war in Iraq. But other issues are coming up, too, because there are other programs that aren't getting funded because of this war.

So, we're seeing a real stalemate on issues like the highway funding bill, other programs that legislators really want to get through, knowing that their election is a year away, and they want to make sure they have something to bring back home. It's getting definitely squeezed by this.

COSTELLO: Oh, you're not kidding. Republican John McCain had some interesting comments about Iraq and a possible run for president. Let's listen to what he had to say.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: Too often we have been told that -- the American people have been told that we're at a turning point, whether it would be the capture of Saddam Hussein or Uday and Qusay, or the elections. What the American people should have been told, and should be told -- and I believe the president is going to tell them. I think he's focusing back on Iraq -- I think is that it's long, it's hard, it's tough. It's very tough.

(END VIDEO CLIP)

COSTELLO: So, he's being critical to President Bush, and that's paving the way, of course, for that run in 2008.

WALTER: Again, this frustration here with members of Congress and the president has become very palpable over the last few months. Remember, this is a Congress that has been really in lock step with the Bush administration since very early on in this administration.

We've seen really no breakdown in that discipline until now, because, remember, we're starting to see real frustration on the part of voters, frustrated about the war in Iraq, frustrated about the direction of the country. And these folks are not just looking at 2008; they're looking at 2006 as well when they know they're going to have to go up and defend a lot of the decisions the Bush administration has made.

So, you're starting to see votes, not just -- and frustration not just about the war in Iraq, but other things like the Patriot Act, where we've seen real defection on the part of some Republican members of Congress. COSTELLO: Joe Biden also came out and talked about a possible run for president in 2008. Let's hear what he had to say.

(BEGIN VIDEO CLIP)

SEN. JOE BIDEN (D), DELAWARE: I'm acting now in terms of finding that out as if I'm running. My intention now is to seek the nomination.

(END VIDEO CLIP)

COSTELLO: He has also been critical of President Bush's policy. How difficult is it going to get for the president?

WALTER: Well, it's certainly not very easy right now, because, again, you have members of Congress who are starting to recognize their own personal concerns, as I said earlier, about their own elections, but also about the frustration they hear when they go home and they talk to voters. Remember, these guys are the ones who have -- are the closest to the Americans. They're hearing it out there at town hall meetings. They're hearing it every time they go home from recess. They're watching just as we all are. The daily reports of violence in Iraq. This stuff is going to really start to test this discipline.

Look, I think in the end, fundamentally, the way that the administration has dealt with Congress has really been just sort of push, push, push. Congress eventually goes back and does what the president wants.

For the first time what we're starting to see is that Congress is pushing back. How the White House deals with this ultimately is going to be fascinating, and it's not just on this issue, but it's on many other issues. The president is going to have to decide where and how he deals not only with Congress, but then on taking that to the American public.

COSTELLO: Amy Walter from the Cook Political Report joining DAYBREAK this morning. Thank you.

WALTER: Thanks, Carol.

COSTELLO: Still to come on DAYBREAK, General Motors' push to boost sales is having an effect. Carrie Lee has more on that after a break.

And later, what the smell of a grapefruit can do to a woman's perceived age. We're not kidding.

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

(COMMERCIAL BREAK)

COSTELLO: A look at how the international markets are trading. Tokyo's Nikkei is down 30 points. The London FTSE down 13. The German DAX down 38 points. It's time now for a little "Business Buzz."

General Motors' latest incentive plan seems to be working.

Carrie Lee joins us now with a more.

So, some good news finally for GM.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Finally for GM. Yes, we know they've had a tough time lately.

Well, GM has recently unveiled a new incentive plan, and now car buyers are reportedly flocking to dealers for the chance to shop like an employee. General Motors recently unveiled a new incentive plan, offering its employee discount to everyone, usually 3 to 4 percent off the price of a car.

One marketing research company says traffic in its dealerships is up strongly, and the company has had great success from 0 percent interest financing. They had that success back in 2001. But since then, its incentives have failed to inspire buyers.

But now the employee discount seems to be working, and it's forcing its competitors to react. Ford for one, offering its employees $1,000 to share their employee discount plan with family and friends. And Chrysler has unveiled a smart math program, and this is designed to show customers the value in buying a Chrysler car.

So, the competitors are reacting, but finally some good news, as you said.

COSTELLO: Yes, but in the long run -- could they lose money in the long run by giving such big discounts?

LEE: Well, that's the problem, and that has been the problem with discounts and these incentives overall. People get used to it. They get a little bit spoiled. And then you try to take it away. That's a tough thing to do. But if they can sell more cars and in an aggregate they make more money, well, then they could be in a better position.

COSTELLO: A quick look at the futures.

LEE: Futures are looking a bit lower. We're going to be keeping an eye on Cablevision stock today. The Dolan family owns this company, but reportedly they want to buy out the company and then split it into two parts: the cable operator and then the entertainment assets, which include the New York Knicks, the New York Rangers and Madison Square Garden. So, some big assets there.

COSTELLO: Good enough.

LEE: Thanks.

COSTELLO: Thank you, Carrie Lee.

Your news, money, weather and sports. It is 6:46 Eastern. Here's what's all new this morning.

Condi Rice just wrapped up a speech in Egypt a short time ago. She was talking about democracy there and for Egypt to lead the way.

In money news, the beginning may not be the end. The movie "Batman Begins" topped the weekend box office with nearly $47 million. That success led one Warner Brothers executive to hint that a sequel might get the green light.

In culture, Versailles Palace in Paris will be the site for that city's Live Aid 8 show. There will be eight Live 8 concerts held on July 2 to raise awareness and money for Africa. Among the acts slated to play in Paris are Shakira and Andre Palechi (ph).

In sports, Robert Horry hit a final three pointer in overtime to lead the San Antonio Spurs to victory over the Detroit Pistons. The 96-95 win gives the Spurs a three-games-to-two lead in the NBA finals. Game six is tomorrow night in San Antonio.

(WEATHER REPORT)

COSTELLO: Still to come on DAYBREAK, forget Chanel or any of those expensive perfumes you've tried or heard about. We'll tell you what the scent of grapefruit and botox have in common.

But first, it's time to say happy birthday.

(COMMERCIAL BREAK)

COSTELLO: It is 6:52 Eastern. Here is what will be making news today.

President Bush is hosting European Union leaders at the White House today. On the agenda, the Iraq war, trade, Mideast peace, and the upcoming G8 summit.

The John Bolton battle heads toward a big vote today. The Senate has scheduled a late afternoon vote on closing debate over his controversial nomination as U.N. ambassador.

And closing arguments may come today in the trial of Edgar Ray Killen. The 80-year-old former Klansman is accused of orchestrating the 1964 murders of three civil rights workers.

To the forecast center for...

CHAD MYERS, CNN METEOROLOGIST: The mug.

COSTELLO: ... the mug.

MYERS: It's my favorite time of the day. I love giving away these things, and it's the hottest ticket in TV. Here it is. Here it is now the DAYBREAK coffee mug for today.

How much did Google share -- did one share of Google cost when the company went public? The actual answer is it went public at 85, but nobody in the public got it for less than a hundred. Then it went down a little bit, then back up. But anyway, I took 85 bucks and all of the other answers as well. For the first time the U.S. Air Force has named a woman to what high-profile job? And that she became a pilot for the Thunderbirds.

The winner, Michael Cannon from Fayetteville, North Carolina. It's finally cooling down for you in Fayetteville. Fayetteville on Wednesday was 97 degrees. Put some iced tea in that coffee mug. Anyway, things are getting better for you. It's nice and cool today, 84.

Now for today. Lightning heats the air to what temperature Fahrenheit? We talked about that at length. And if you think you've been the victim of identity theft, how long does a fraud alert last? Put it on your TransUnion and all of that, put the fraud alert. How long does it actually stay on there before it drops off automatically?

Go to CNN.com/daybreak. There's a link. And give us your answers there. We'll give you the winner tomorrow.

COSTELLO: Hey, you know, I think I have a favorite new fruit. Are you ready?

MYERS: A new fruit?

COSTELLO: Are you ready for this? I know. It has nothing to do with what you've just said, but who cares?

MYERS: All right.

COSTELLO: This is interesting. It's a new study, and it found that the smell -- it's from the Smell and Taste Institute in Chicago. They say women who smell like grapefruit actually seem younger to men; about six years younger in fact.

MYERS: That's because they attract mosquitoes.

COSTELLO: It makes you wonder how they figured this out. I mean, did the women douse themselves with grapefruit juice and then they went around and men sniffed them, and say wow?

MYERS: It sounds like a good thing.

Now, but men look better how? What smell for them?

COSTELLO: I'm sorry. They have not found any scent that makes men seem younger to women.

MYERS: Oh, of course.

COSTELLO: Except for the smell of a brand, new Porsche. That might do it.

When we come back, more headlines and a look at your travel forecast. You're watching DAYBREAK for a Monday.

(COMMERCIAL BREAK)

COSTELLO: If you're in the airport right now, Chad has a travel update for you.

(WEATHER REPORT)

COSTELLO: "Now in the News."

Secretary of State Condoleezza Rice takes her case for democracy to Egypt. In a foreign policy speech in Cairo this hour, Rice called on Egypt to conduct free and fair national elections this fall.

The U.S. Senate votes later today on ending the debate over John Bolton. Bolton is President Bush's controversial nominee to be ambassador to the United Nations.

A car bombing in Baghdad at a police station killed at least five Iraqi officers today. And a suicide car bomb exploded inside of an Iraqi police compound in Erbil, killing at least 12 people and wounding more than 100 others.

And starting today, you can view more CNN reports online. Just visit CNN.com, click on "watch" to check out the most popular stories in a range of categories like politics, sports and entertainment.

From the Time Warner center in New York, I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.

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