Return to Transcripts main page
CNN Live At Daybreak
Supreme Court Rules on Eminent Domain; Fight for Iraq; Judge Arrested in Holloway Case; Arizona Wildfire; Tsunami Anniversary
Aired June 24, 2005 - 6:00 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 Friday, June 24.
Two leaders, two nations, one goal. Iraq's prime minister is in Washington. On his to-do list, talk to President Bush about the challenges that lie ahead in his nation.
The Supreme Court sides with a small Connecticut town. Now, some families will have to pack up and move.
And China's big play in the oil game. How it could affect your wallet.
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 those stories in just a moment.
Also ahead, take out your white ear buds for a few minutes and we'll tell you about the newest thing in headphones.
And ever wonder if Hollywood has any original ideas anymore? This morning, new twists on old favorites.
But first, now in the news, up against the flames. Near Phoenix, Arizona a wildfire grows. Forty-six thousand acres have now been scorched. But fire officials report the blaze does not appear heading toward populated areas.
In the meantime, a wildfire in southern California is expected to be contained by Saturday.
Men, horses and dogs from Texas will search for Natalee Holloway in Aruba. Four teams arrived yesterday, while the rest will travel today. Holloway's been missing for more than three weeks.
And there is plenty of reason to celebrate today in San Antonio. The Spurs dethroned Detroit 81-74 and gained seven of the NBA championships. It's San Antonio's third NBA title.
You can experience the power of CNN video on your computer. Just log on to cnn.com and click onto "video."
To the Forecast Center now -- good morning, Chad.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Up first for you this hour, Iraq's prime minister talks about security and the insurgency while on a visit to the United States. Ibrahim al-Jaafari visited wounded soldiers at Walter Reed Army Hospital on Thursday and he offered his gratitude for U.S. help in Iraq.
(BEGIN VIDEO CLIP)
IBRAHIM AL-JAAFARI, IRAQI PRIME MINISTER: In the name of my Iraq peoples, I'd like to thank all the patients I've seen today and for them to the American people about their sacrifices for the democracy process.
(END VIDEO CLIP)
COSTELLO: Al-Jaafari also had this to say to the "Washington Post," and I'm quoting here. He said: "We would like to see the withdrawal of American forces as quickly as possible because the presence of any foreign troops on our land means there is a weakness that we cannot by ourselves control the security situation."
Al-Jaafari meets with President Bush later this morning at the White House. We'll have live coverage for you starting at 11:25 a.m. Eastern right here on CNN.
In the meantime, some very vocal critics of the Iraq war are speaking up. When they're throwing around words like quagmire and talking about high level resignations, you know the gloves are off. That's how it's being played out on Capitol Hill.
So let's head live to Washington and CNN Radio's Dick Uliano -- good morning, Dick.
DICK ULIANO, CNN RADIO CORRESPONDENT: Good morning to you, Carol.
Can...
COSTELLO: Go ahead.
ULIANO: I was going to say that, you know, the 4th of July, Carol, is 10 days away, but the fireworks came to Washington early. This Senate hearing on Iraq was tense at times. An anti-war Senate Democrat, Ted Kennedy of Massachusetts, lit into Defense Secretary Rumsfeld.
(BEGIN VIDEO CLIP)
SEN. TED KENNEDY (D), MASSACHUSETTS: Mr. Secretary, I'm talking about the misjudgments and the mistakes that have made, the series which I've mentioned -- the disarming of the Iraqi Army -- those were judgments that were made and there have been a series of gross errors and mistakes. Those were on your watch. Those were on your watch. Is it time for you to resign?
DONALD RUMSFELD, SECRETARY OF DEFENSE: Senator, I've offered my resignation to the president twice and he's decided that he would prefer that he not accept it, and that's his call.
(END VIDEO CLIP)
ULIANO: The showdowns on Capitol Hill don't get much more intense than that, Carol. It was a tense moment. And other members of the committee chimed in, including Republicans. Lindsey Graham of South Carolina cautioning Rumsfeld that he sees support waning, public support for the war in Iraq, he said, in his street, which is an extremely patriotic state. And even the military commanders, General Abizaid told the committee he's concerned because he's heard too many troops in Iraq and Afghanistan and the Horn of Africa wondering if they're losing support for their mission among the American people.
COSTELLO: OK, so the big question now is will Donald Rumsfeld resign?
Will he offer his resignation to the president once again or will he be forced out?
ULIANO: Well, you know, Rumsfeld seemed chagrined, to say the least, when Kennedy issued this blistering attack. He didn't show any indication that he's about to resign. In fact, if you listen carefully to the witnesses, including the chairman of the joint chiefs, General Myers, the thrust of their remarks was that they feel they're making progress in Iraq, that the United States is enjoying some success against the insurgency.
But the perception among the American people is otherwise. And they've expressed concern about that and so did members of the committee.
COSTELLO: Dick Uliano reporting live from Washington this morning.
On the heels of that, a solemn tribute to the troops who've died in conflicts overseas. Illinois Congressman Rahm Emanuel organized a reading of the names during a one hour presentation on the House floor. Faces of the Fallen honored those who have died in Iraq and Afghanistan.
Now to fallout from revelations about that Pentagon recruiting database. Privacy advocates are alarmed the government is gathering personal information on students as young as 16 for military recruitment. But the defense secretary says there is no need to be concerned.
(BEGIN VIDEO CLIP)
RUMSFELD: My understanding is that there has always been work done with respect to the recruiting base and that's not new. There may be some new aspects to it because of additional technology and some things that are available. But we always worry about privacy issues.
(END VIDEO CLIP)
COSTELLO: Although the database was created two years ago, it was first publicly revealed late last month under the provision of the Privacy Act.
All right, a victory for cities means a loss for you and possibly your home. The Supreme Court rules that cities can, indeed, seize your property and hand it on over to private developers.
Brian Todd explains how the high court's ruling works.
(BEGIN VIDEO TAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): When Susette Kelo found her house by the water in New London, Connecticut, it had everything she wanted.
SUSETTE KELO, HOMEOWNER: It was like I'd been here all my life. It was just, it was just a warm and inviting feeling.
TODD: But now Kelo stands to lose her home after the Supreme Court's ruling that her city government has the right to seize it. Under the legal principle called eminent domain, a government can now condemn or take control of private property and hand it over to private developers.
The practice used to mean slums were torn down to build highways, schools or other public works. But by a 5-4 vote, the court sides with the New London city government that working class homes belonging to Kelo and many others must be sold to the city at so-called market value for upscale offices and hotels.
Justice John Paul Stevens writes for the majority: "The city has carefully formulated an economic development plan that it believes will provide appreciable benefits to the community, including, but by no means limited to, new jobs and increased tax revenue.
Attorneys for New London argued the city desperately needs that revenue after losing much of its tax base in recent years. They say in that context, even offices and hotels should be considered of public benefit.
WESLEY HORTON, ATTORNEY FOR NEW LONDON, CONNECTICUT: You can't have one rule for roads and another rule for blight and a third rule for economic development. It's all the same thing.
TODD: But Susette Kelo, other New London homeowners and their attorneys say this ruling will open the floodgates.
SCOTT BULLOCK, INSTITUTE FOR JUSTICE: Home and small business owners, especially the poor and working and middle class folks, are going to be more vulnerable to eminent domain abuse as a result of today's decision. You never know when your home or business is going to be targeted by your government and a large corporation. TODD (on camera): But experts on eminent domain tell us governments don't go knocking on people's doors very often. They say states have their own legal limits and options on what can be taken from a homeowner. And one expert says this will be a state by state fight.
Brian Todd, CNN, at the Supreme Court.
(END VIDEO TAPE)
COSTELLO: In other "Stories Across America" this Friday, police and volunteers will soon gather to search for three missing boys in Camden, New Jersey. The boys, ages five, six and 11, were last seen playing in one of their yards on Wednesday. Neighbors have been handing out fliers with their pictures. Officials have not ruled out the possibility the three have been abducted.
A sex offender has given grizzly details of the murder of Jessica Lunsford. In court documents, John Couey says he kept the 9-year-old in a closet, raping her for three days and then burying her alive back in March.
The FBI hopes you can help them find two murdered youngsters and solve a two year old mystery. The bureau released an audiotape on the Internet of the children's father describing where he'd buried the bodies. The kids were 14 and 11.
Here's part of that tape.
(BEGIN AUDIO CLIP)
MANUEL GEHRING: They were pretty massive. You know what I mean? You couldn't really lift, I mean people couldn't really lift it with their bare hands.
(END VIDEO CLIP)
COSTELLO: Before he hanged himself in jail, Manuel Gehring described a spot somewhere along Interstate 80 in the Midwest. The FBI hopes someone will recognize the area and lead them to those children's bodies.
Still to come on DAYBREAK this hour, China has got the cash and wants to come shopping here. We'll tell you what the communist nation is eyeing at 15 minutes past.
And we'll take you live to Arizona, where wildfires are scorching much of the scenic high desert north of Phoenix. That's at 35 minutes past the hour.
And it's hard to believe it's been six months since a huge tsunami devastated southern Asia's coast. At 50 minutes past the hour, we'll see how the rebuilding effort is going.
But first, here's a look at what else is making news this Friday.
(COMMERCIAL BREAK)
COSTELLO: Following up on a story we've been telling you about this week, the House has voted to restore a proposed $100 million budget cut for public broadcasting. Lawmakers were flooded with letters and phone calls from people protesting the cut, so Big Bird is safe.
In health news this morning, the FDA has, for the first time, approved a medicine for patients of one specific race. The government gave the drug BiDil the green light for treating heart failure in African-American patients. In testing, the drug was not as effective for patients of other races.
Let's talk about China now, because China is on a big time shopping spree in the United States. It's eyeing U.S. oil company Unocal for $18.5 billion. It also wants appliance maker -- it also wants Maytag, an appliance maker, and has already purchased PCs.
So, why should you be worried?
Well, there is our record $162 billion trade deficit with China, concerns about control over a limited resource and even national security worries.
Robert Friedman joins us now.
He's the international editor of "Fortune" magazine.
Good morning and thank you for coming in so early.
We appreciate it.
ROBERT FRIEDMAN, "FORTUNE" MAGAZINE: Good morning.
COSTELLO: To talk about a rather complicated subject.
But is it -- I just want to tell you what two former directors of the CIA said about this. James Woolsey said: "This is a long-term effort to take over as much of the American economy as possible."
Is there really evidence of that?
FRIEDMAN: No. This is alarmist and a protectionist reaction to a normal business situation that countries and companies go through. China is expanding. It's growing. Its energy needs are bigger. It needs more energy, just like other countries do. And so it's out on the world markets looking for oil. And...
COSTELLO: Oh. But it's a communist country.
FRIEDMAN: Well, there was a lot of reaction in the United States back in the '80s when the Japanese started buying Rockefeller Center and movie studios and other things. It turned out to be not such a bad thing.
COSTELLO: Well, before we get to that, let's get back to China and its bid for Unocal.
FRIEDMAN: Yes?
COSTELLO: Because Chevron is offering, too, but it's not offering a better deal. I mean, the Chinese company is not going to lay off any workers and it's going to pay more money.
So wouldn't that be better for the American worker in the long run?
FRIEDMAN: Better for the shareholders, who will get a higher price; better for the workers, who will not be laid off; and better that CNOOC, the Chinese company, has also promised to sell all the oil and gas in the United States. They're not going to be shipping it to China.
Most of Unocal, by the way, is -- its resources are in Asia. About 85 percent of the company's resources are in Asia. And how did that happen? Because an American company went and bought resources in Asia.
We don't want a world -- I don't want a world where at national borders you have to stop and say sorry, you can't come in here. There's 1,000 KFC franchises in China right now. Do we want the Chinese government to turn around and say sorry, you can't have this valuable real estate. Get out of here.
COSTELLO: Well...
FRIEDMAN: I mean this is not -- now, sure, chicken and oil are different commodities, right...
COSTELLO: Well, no, but I understand where you're going.
FRIEDMAN: Right.
COSTELLO: But two California lawmakers don't want this Chinese company to buy Unocal either. They don't want any part of that.
FRIEDMAN: Well...
COSTELLO: They think it'll be bad for California.
FRIEDMAN: I think quite the contrary. I think there are going to be -- there will be fewer workers laid off, probably, if the Chinese buy this company. I think this is just posturing for public sympathy and I, frankly, don't think that Washington is going to block this deal.
COSTELLO: Because money talks?
FRIEDMAN: Yes. And ultimately this is not a done deal. I mean Chevron is likely to raise its price. The board of directors might decide, for a variety of reasons, to go with the lower offer. In fact, even inside CNOOC, the Chinese company, there's a lot of opposition to this deal because they have to take on a whole of debt to buy this company. And there were people in China saying well, maybe this is not such a smart business decision.
This is what capitalism is about. Companies make offers and bids. And China is not doing anything illegally, underhanded or devious here. They've got their oil needs just like...
COSTELLO: So it's not a ploy to take over the American economy?
FRIEDMAN: I really don't believe so.
COSTELLO: And...
FRIEDMAN: I think Mr. Woolsey, it's a good thing that he's retired.
COSTELLO: Oh, man.
Robert Friedman, thank you for being so frank this morning, from "Fortune" magazine.
FRIEDMAN: OK.
COSTELLO: Still to come on DAYBREAK, Tom, Nicole, Herbie? They're all starring in new versions of old plots. Are these flicks up to snuff? Tom O'Neil will be around to tell us.
We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: A question for -- are you ready to put your thinking cap on?
Have you heard about Tom and Katie?
The new Hollywood in couple was front and center last night at the premier of the movie "War of the Worlds." Of course, we're talking about Tom Cruise and Katie Holmes.
We're also talking about what's playing at the movies this weekend.
One new flick stars Tom's ex-wife. And, of course, the other stars Tom.
With us now is Tom O'Neil, editor with "In Touch Weekly."
Welcome once again.
TOM O'NEIL, "IN TOUCH WEEKLY": Thank you, Carol.
COSTELLO: "War of the Worlds" -- I guess it's getting good buzz.
O'NEIL: Well, but we don't know whether to believe the buzz or not. Is this studio planting? The problem is they're not letting the media in to see this movie until Monday night. That is 48 hours, less than that, before the movie opens. Normally that means it's a bomb. COSTELLO: Really?
Have you -- so they're not showing any advance screenings?
O'NEIL: Not at all. It's really strange. How could Spielberg and Tom Cruise miss with such a classic story as this? But, remember, the story is pretty dull. It's -- it was daring in its day, you know, space aliens invading, but it's essentially two hours of a chase movie with a nice trick ending.
COSTELLO: It was scary in its day, in the '30s.
O'NEIL: I know. I know. So maybe it is a bomb. It's fascinating. We can't wait to see what is really on that screen.
COSTELLO: OK, let's talk about some other remakes, because that seems to be what Hollywood is making these days.
I guess the other big one is "Herbie," "The Love Bug."
O'NEIL: "The Love Bug" was the number one movie of 1969. And it starred Dean Jones as a, you know, a wannabe -- I mean as a kind of broken down, has been race car driver. And what they've done is updated it now with Lindsay Lohan in this charming little, you know, beat up old V.W. that wins the big NASCAR race. It's actually cute. They reinvented the movie. It's not great. It's not memorable, but it does work.
COSTELLO: It does work. You know, the other thing is Lindsay Lohan, because she got so skinny...
O'NEIL: Right.
COSTELLO: They took her off the poster. So they're not even really advertising her as the star of the movie now.
O'NEIL: Right, because she looks different now and so they didn't know how to reconcile that. It's better than "War of the Worlds," Carol. Tom Cruise isn't on that poster, for the first time in his career.
COSTELLO: Isn't that something?
O'NEIL: Yes.
COSTELLO: And supposedly he agreed to that but...
O'NEIL: Um-hmm.
COSTELLO: Yes.
The next one is "Bewitched" with Nicole Kidman. And this kind of is an interesting, clever twist on the old series.
O'NEIL: Right. They approached this project smartly, by trying to reinvent it, by saying let's have it be about two actors who are cast in a remake of "Bewitched" and she'll turn out to be a real witch just like Samantha. The problem is remember what made the TV show work is that she fell in love with this aw, shucks, sweet Earth bound guy, Daryn.
Will Ferrell is this smug has been actor. And the problem with this movie, and of course it's getting disastrous reviews. Everyone is saying it's an evil brew. The problem is Will Ferrell brought in his own writer. So you have this Will Ferrell movie going on and then this romantic comedy and they don't connect.
COSTELLO: No. And the other thing is, is Nicole Kidman can really act.
O'NEIL: Yes.
COSTELLO: He really cannot. He's just a big goofball.
O'NEIL: Yah, I think you're right.
COSTELLO: So they tried to make it kind of a love story and he learns a lesson, but I don't think he's capable of really showing that.
O'NEIL: I think you're on to something here. Hollywood needs to be careful about remaking any movies or TV shows. Last night I looked at the list of the hundred most successful movies ever made. Only one movie remake was on that list, "Ocean's Eleven." Two TV shows, three if you count "Batman" -- "The Fugitive" and "Mission: Impossible."
In general, it's a very bad idea. So now we have coming up, "War of the Worlds," "Dukes of Hazard," "Charlie and the Chocolate Factory." But "Charlie and the Chocolate Factory" looks as if they've smartly handled the approach. They've reinvented it as a creepy movie.
COSTELLO: Yes. And it looks very cool. I can't wait until you review that one.
O'NEIL: Yes.
COSTELLO: Tom O'Neil, thank you very much for being with us.
We appreciate it.
Kind of a tough transition here, but we have to go to Jane Arraf whenever we can get her, because, you know, she's been embedded with troops and she's also in a very remote part of that country right now.
U.S. troop morale in Iraq is the subject of much speculation and discussion, so we want to hear directly from a Marine on the front lines. We've got Jane Arraf. She's got a Marine with her.
So let's hear what she has to say -- hello, Jane.
JANE ARRAF, CNN CORRESPONDENT: Hi, Carol.
You're right, Carol, we don't get to hear from these guys often enough.
We have with us Sergeant Tony Perez, who's from Chicago, 23 years old. And we want to just talk (AUDIO GAP) about whether Americans, whether people back home are losing support for this war.
Does that matter to you? Is that something you follow?
SGT. TONY PEREZ, U.S. MARINES: No, not really, because as I told you before, as long as we have the love and support of our friends and family and they know that we're doing something good over here, that's all we need.
ARRAF: Your family, though, like many families, sounds like they're somewhat divided over the reasons that the U.S. went to war.
Is that correct?
PEREZ: Yes. A lot of people like my family involved, they have mixed emotions about it, because a lot of them have sons and daughters over here. And like I said, as long as they support us, everything is good. We know we're doing a good thing and that's all that matters.
ARRAF: What has this deployment been like for you? Has it been what you've expected?
PEREZ: Not all the time, but it's been good. A lot of time to think. A lot of down time sometimes. But all in all it's pretty good.
ARRAF: (AUDIO GAP) you're leaving the Marines.
PEREZ: I've got to do something else. It's time to do something else, go back to school and try to study around for a while.
ARRAF: And you've been here now a few months. And you are in one of the most remote parts of Iraq, one of the most volatile. We're pretty close to the Syrian border.
Do you feel that what you're doing here has made a difference in any way?
PEREZ: I do feel that we have made a difference, although it's small. It's not overnight change. But all in all it's a big difference.
ARRAF: What kind of changes do you see?
PEREZ: People respect that we're here trying to help, you know, their country get out of a bad situation. And they're not all bad. A lot of them are real friendly. It's just, you know, bad people are -- people put in bad situations tend to do things (INAUDIBLE).
ARRAF: When you joined the Marines, did you expect to be standing here in the desert in Iraq at some point?
PEREZ: Not really. I thought that we wouldn't be in war for a long time. But, you know, things change.
ARRAF: Now, you guys talk a lot. I mean you have down time and you talk about what it's like and whether you should be here.
Do your friends agree with you that it's worth it being here? What do they think?
PEREZ: Some do, some don't. But like I said, they know I'm here and they know I'm doing my job, so they support me either way.
ARRAF: Thank you so much.
Carol, that's the view of one Marine sergeant, Tony Perez, who's 23. And what you'll find if you talk to the guys here, particularly along the front lines where they are, many of them, actively engaged in fighting, is that they still believe they have a job to do. They don't spend a whole lot of time wondering about why they're here, they just get on with that job.
But it is increasingly their families back home and how they feel that are making a difference -- Carol.
COSTELLO: Yes, we wanted to explore this issue, Jane, because of what General John Abizaid said before Congress yesterday. And I want to, I want to let our viewers listen to that.
So let's listen to General Abizaid now.
(BEGIN VIDEO CLIP)
GEN. JOHN ABIZAID, COMMANDER, U.S. CENTRAL COMMAND: When my soldiers say to me and ask me the question whether or not they've got support from the American people or not, that worries me. And they're starting to do that. And when the people that we're training, Iraqis and Afghans, start asking me whether or not we have the staying power to stick with them, that worries me, too.
So I would say we'd better have a frank discussion with ourselves. I'm not against the debate. We that are fighting the war think it's a war worth fighting.
(END VIDEO CLIP)
COSTELLO: And, Jane, from what I heard from your young Marine in Iraq, that's not really quite it. It's more being away from the family that's diminishing morale.
Am I correct in that?
ARRAF: I think that's very true, Carol, because what we're talking about now are Marines and soldiers who are back for their second and third deployments. And you can imagine what that does to a family. You can imagine soldiers who are away from their families for a year, going back for a few months, and then they're told they're going back to Iraq. And it's a big problem when they're looking at recruitment and when they're looking at retention. Again, out here on the front lines, where they are actually seeing things happen, seeing things done, even if they're in the most dangerous of situations, morale tends to be fairly high. It's when you get to those huge bases, the ones around Baghdad, where some people spend their entire deployments never leaving the base that you hear a little bit more rumblings about what are we doing here -- Carol.
COSTELLO: Jane Arraf reporting from Iraq this morning. I'm glad we got to hear from you once again. Jane Arraf.
"Now in the News."
Iraq's prime minister talks about security and the insurgency while on a visit to the United States. Ibrahim Jaafari visited wounded soldiers at the Walter Reed Army Hospital, and he'll meet with President Bush later this morning. We will bring that to you live at 11:25 Eastern.
Iranians are voting today in a runoff for president. One of the candidates is a moderate conservative with the backing of progressive groups; the other, a hardliner, favored by Iran's ultra conservatives.
Back here in the states, that wildfire north of Phoenix has spread to 46,000 acres, but authorities say it's no longer threatening homes. An evacuation order has now been lifted.
You can experience the power of CNN video on your computer. Simply log on to CNN.com and click on "video." And, boy, there's lots of stuff in there.
(WEATHER REPORT)
COSTELLO: This weekend marks one month since Alabama teenager Natalee Holloway was reported missing on the Caribbean island of Aruba. One more person was taken into custody as a Texas search crew arrives on the island.
Live now to Palm Beach, Aruba. Chris Lawrence has more for us.
Good morning -- Chris.
CHRIS LAWRENCE, CNN CORRESPONDENT: Good morning, Carol.
Not only was Judge Paul Van Der Sloot arrested, but we're also hearing now that how some of the other suspects' stories are changing. And we're hearing it from their own mothers.
First off, Judge Paul Van Der Sloot had been questioned twice by police, but only as a witness, last weekend. On Thursday, he had taken his wife, Anita, to visit their son, Joran, in prison. He was on his way home when neighbors called him and said there are police all over your house. Instead of going there, he went directly to the police station to ask what's going on. That's when he was taken aside and taken into custody. Now, his son, Joran, was one of the last people to see Natalee on the night she disappeared. Joran told police he and two brothers dropped off Natalee here at this hotel. His mother, Anita, now says Joran told her, "Mom, I left her at the beach alone, because she wanted to stay."
And the mother of those two brothers visited her son also and says he has also admitted to her that he lied.
(BEGIN VIDEO CLIP)
NADIRA RAMIREZ, SON HELD BY POLICE: He said, me and my brother gave them a lift, and he came home. They don't know anything else about that. I said, (INAUDIBLE) is trusting you guys? He said, I'm telling you, momma, we didn't do anything.
(END VIDEO CLIP)
LAWRENCE: Also today, as all of this plays out in court and at the police station, a team from Texas will be hitting the ground for the first time, trying to search for evidence in this case. They're from Texas. They're made up of law enforcement people. They have some of the best search dogs in the country. They've got master divers and sonar equipment that can see up to 800 feet down. They're hoping to go out and possibly find anything that the police may have missed.
Back here on the front of the judge, he will remain in jail until at least Saturday afternoon, at which point the prosecutors will have to show just cause why they should be able to keep him longer -- Carol.
COSTELLO: Chris Lawrence live in Aruba this morning.
Of course, as Chris said, prosecutors in Aruba have their theories about Judge Paul Van Der Sloot's involvement in Natalee Holloway's disappearance. There will be more on "AMERICAN MORNING."
Soledad joins us now.
Good morning.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning to you, Carol.
Yes, lots more to talk about. As you just heard from Chris a moment ago, lots of twists and turns in this case.
This morning, we're going to sit down with the prosecution, find out what evidence they have. What can they tell the public about what's going on in this investigation? Are they getting any closer to naming a primary suspect and solving this case once and for all?
Also this morning, Carol, we're live at the White House. Dan Bartlett is the counselor, one of the counselors to the president. He joins us to talk about that showdown on Capitol Hill on Thursday. As you know, lawmakers grilled the president's top military man. They want a timetable for getting U.S. troops out of Iraq. Well, Defense Secretary Donald Rumsfeld says that would be a big mistake, setting a timetable.
The question, though, is the U.S. stuck there? We're going to talk to Mr. Bartlett about that and much more. That's all coming up a little bit later on "AMERICAN MORNING" at the top of the hour -- Carol.
COSTELLO: We look forward to it. Thank you, Soledad.
O'BRIEN: We'll see you then.
COSTELLO: More now on that Arizona wildfire we've been telling you about. Firefighters north of Phoenix say the blaze is spreading, but right not it looks like homes are no longer at risk.
CNN's Keith Oppenheim joins us on the phone from Carefree, Arizona.
Bring us up to date.
KEITH OPPENHEIM, CNN CORRESPONDENT: Hi, Carol.
It's been a fairly positive night as these things go. They're calling it the Cave Creek Complex fire, and it's really the combination of two fires that were both started a couple of days ago by lightning strikes.
And if you add to the weather recipe, super dry hot conditions and a steady wind, within a day or so those two fires joined, and eventually the fire grew to burn 46,000 acres, to burn about 10 homes, some luxury homes I'll add, and to force about 250 people to evacuate.
The good news is some of the evacuees have been allowed to go back. Right now, I'm standing fairly close to a subdivision called the Tonto Hills Subdivision. That's where folks were allowed to go back last night, although overnight in a more rural spot called Bartlett Lake inside the Tonto National Forest, there were 68 people evacuated. These are not homes. There were campers, people who were using the area in a recreational way. They were forced to go out.
But in the big picture, Carol, fire officials are saying though this thing is still growing, it's generally not heading towards where anyone lives, or at least they hope, and that the wind conditions don't change to make it worse.
COSTELLO: Enough said. Keith Oppenheim live from Arizona this morning.
When we come back, recovering from another natural disaster. Six months after the tsunami, we'll take you live to Indonesia.
You are watching DAYBREAK.
(COMMERCIAL BREAK) COSTELLO: Let's take a look at how the international markets are doing this morning. Tokyo's Nikkei is down almost 40 points. The London FTSE down just over 31. The German DAX is down by 53.5 points.
It's time for a little "Business Buzz" now.
The online auction site eBay is looking for more sellers. So, it's launched two new services. One will help sellers and small businesses build customized e-commerce sites. The other will let high-volume sellers buy discounted inventory from manufacturers and wholesalers.
And check out this new logo for the combined companies of Sprint and Nextel. Isn't it beautiful? The merger between the two is expected to be complete later this year. As you can see, the Sprint name is the dominant name, with Nextel continuing as a product brand name.
With the tremendous popularity of the Apple iPod, there is no shortage of accessories available, including wireless headphones.
Carrie Lee cut the cord, and she tried out the headphones. And she is here, I guess, to tell us how it was.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: How it was. Well, these are wireless headphones for the iPod. They're not made by Apple. They're made by a company called Logitech. They are Apple- approved, if you will.
And I'll tell you, we tested these out last night. The bottom line, they sound good, and they're very easy to use.
They cost about $150, so not exactly cheap, but if you're familiar with iPod accessories, well, none of them really are.
But this is the way it works. You take this adapter, plug it in. This automatically turns the iPod on. And then you turn on the headphones. There are some forward, backward controls here, as well as volume built right into the headphone. You press this, and then once the blue lights go on together, that means they're connected, and they're talking to each other.
The technology -- the wireless technology is from a company called Bluetooth. And these are going to go on sale starting in July. You can go to Logitech's Web site, go into Apple stores, retail stores starting next month.
And this is how they work. They sound good. They're a little big, as you can see, bigger than the bud-style, the wire. But, of course, you don't have the wire. And that's a big selling point. So, if you're working out, if you don't want to have the wire dangling from your bag connecting the two...
COSTELLO: Well, these never stay in my ears.
LEE: ... well, then here you go. COSTELLO: Maybe my ear holes are defective.
LEE: No, it's been a big complaint with those. That they're a little bit tough to use. If you're working out, they kind of fall out. So, you put these on like this.
Now, one downside...
COSTELLO: It doesn't mess up your hair.
LEE: Well, a little bit, but for demo purposes, we'll deal with that.
But they're not adjustable. So, I don't know if you want to try these on. They do sound good, though, I think.
COSTELLO: They do? Now, this is the part...
LEE: Those are actually upside down, but you have the...
COSTELLO: Oh, I can hear it.
LEE: But it sounds good, right?
COSTELLO: I wish you could hear it, too, because it sounds pretty good.
LEE: And that's the most important thing. The sound quality is the most important thing.
COSTELLO: Yes. This will probably help with theft, too, because iPods have been stolen because, you know, the thieves see these little white earbuds.
LEE: The white are very telltale of what you're listening to. And, of course, the iPods themselves can cost $300 or so. A very good point, because if somebody decides, oh, I'm just going to rip these off of somebody's head, well, without the receiver it comes with, these two are a team, these are useless. You can't just pair these with any old receiver or adapter. So, that's a good point.
They say the battery lasts for eight hours. I haven't had a chance to test that out exactly. And you can go about 30 feet away and still do this.
COSTELLO: Great!
LEE: So, I tried it in my apartment last night. That seems to be pretty true -- 30 feet or so. And then you start to break up. But I think the sound quality is very good. And this probably isn't the last wireless headset we're going to see. In fact, this is one of the first. So, as time goes on, maybe the price will come down, maybe they'll get a little bit smaller, and maybe you'll see more people walking around on the street.
COSTELLO: I wish I would have invested in that company, though, that makes them.
LEE: Logitech. It's interesting. The stock has done very well. I think it's in the $60-$70 range. So...
COSTELLO: I'm pointing this out. Carrie Lee, why didn't you tell me?
LEE: It's never too late, right?
COSTELLO: Thanks for the demonstration.
LEE: Sure, my pleasure.
COSTELLO: We appreciate it.
LEE: OK.
COSTELLO: Still to come on DAYBREAK, this weekend marks six months since the devastating tsunami struck in the Indian Ocean. How far have the survivors come? And what obstacles are still before them? We'll head live to Banda Aceh in just a moment.
But first, here's a look at what else is making news this Friday.
(COMMERCIAL BREAK)
COSTELLO: It's been almost six months to the day that an earthquake and tsunami devastated Southeast Asia. The world has reached out in a big way to help the survivors. Nearly $7 billion has been pledged from government and multilateral agencies, and $4.5 billion has been offered from private donations from around the world. But, you know, pledges are one thing. Paying up is another.
So, we want to check in with our Atika Shubert. She is in Banda Aceh.
Good morning.
ATIKA SHUBERT, CNN CORRESPONDENT: Good morning, Carol.
COSTELLO: How are the efforts going there?
SHUBERT: Things are moving but very slowly. A lot of the debris has been cleared away. The capital of Banda Aceh, where I'm at, is looking a lot better.
The people on the ground are still saying that reconstruction is just moving too slowly. And there are a number of reasons for it. One is the sheer scale of the devastation. It's only really coming to light now of just how much of this area was literally washed away by the tsunami, more than 600 square kilometers of housing. That's a huge portion of houses just swept out to sea.
And the other is bureaucracy. As you say, actually getting the money pledged is one thing, but getting it to people, into projects, is another. And it's simply just taken months and months to actually get these projects started, much less finished, some which could take years.
COSTELLO: Well, you know, the big concern, too, Atika, was that the money wasn't getting to those in need, but it would be sucked up by the government, and the government would keep it for whatever.
SHUBERT: Right. There is a lot of concern about corruption. And one of the reasons for that is that Indonesia is notorious for its corruption. It's been rated by Transparency International as one of the top five most corrupt countries in the world. So, you can see why there is a lot of concern.
Now, the government being aware of that has set up a special agency called the Reconstruction and Rehabilitation Agency that is coordinating all of the aid efforts on the ground. And they have made -- the director of that agency has made a pledge saying that he will not tolerate any corruption. Anybody who handles aid money, he says, had to sign an integrity pledge, and he's going to make the profits completely transparent.
So, he's certainly talking the talk. The question is: Can he pull it off and make sure that none of this money goes into the wrong places?
COSTELLO: Enough said. Atika Shubert reporting live from Banda Aceh this morning. Thank you.
It is 6:51 Eastern. Here is what will be making news today.
Investors will be watching crude oil prices after futures hit a whopping 60 bucks a barrel on the New York Mercantile Exchange. It's the highest level crude oil has ever hit. Prices stayed there only briefly before settling in at a record $59.42 a barrel.
It is decision day at NASA. Space shuttle managers will discuss the risk of falling ice on an orbiter. It's the last big issue to be resolved before the shuttle fleet can return to service.
And it is opening night for the Reverend Billy Graham. The 86- year-old man known as America's pastor begins three nights of services, marking his final American crusade in New York. Tens of thousands are expected to flock to Shea Stadium to hear him preach.
And, Chad, the hotels here in New York are literally filled. You cannot get a hotel room here because of Billy Graham.
MYERS: That's great.
COSTELLO: It is great.
MYERS: Well, unless you need a hotel room in an emergency, but there are other communities you can get to just by train, whatever, or rail.
Hey, let's get to the mug, Carol.
COSTELLO: OK. MYERS: It's time to give away a mug for today. And let me show you the answers and the questions from yesterday. In what year did Congress pass the last constitutional amendment? That was 1992. Guess what they did? They gave themselves a pay raise. And then, the Supreme Court is expected to rule on a file-sharing case involving what service? We got a lot of Napster answers here, but the real answer we were looking for kind of in a similar line, Grokster is the one that we were looking for. Grokster is the correct answer.
And the winner, the winner today is Ryan Eilders from Phoenix, Arizona. Ryan, you are the winner.
I am so surprised that all of you are up all over the country. You know, we get these winners from everywhere.
Here are your questions now for today. Maybe you can win another one if you're still awake, Ryan. The Supreme Court sided with what city government on eminent domain? I need the name of the city. It's up there in the Northeast. And how much is China's bid for oil company UNOCAL? It's more than ChevronTexaco's bid.
Go to CNN.com/daybreak, and there's a link there to send us your answers -- Carol.
COSTELLO: Oh, good questions this morning, Chad.
MYERS: Thank you.
COSTELLO: You went above and beyond.
MYERS: Right.
COSTELLO: When we come back, more headlines and a look at your travel forecast. You're watching DAYBREAK for a Friday.
(COMMERCIAL BREAK)
COSTELLO: If you're hanging out in the airport, it's that time.
(WEATHER REPORT)
COSTELLO: "Now in the News."
Iraq's prime minister talks about security and the insurgency while on a visit to the United States. Ibrahim al-Jaafari visited wounded soldiers at the Walter Reed Army Hospital. Al-Jaafari meets with President Bush later this morning. We will bring it to you live at 11:25 Eastern.
Man, horses and dogs from Texas will search for Natalee Holloway in Aruba. Four members of the search team arrived yesterday. The rest will travel today. Holloway has now been missing for a month.
Iranians are voting today in a runoff for president. One of the candidates is a moderate conservative with the backing of progressive groups; the other, a hardliner, favored by Iran's ultra conservatives. Up against the flames near Phoenix, Arizona, a wildfire grows; 46,000 acres have now been scorched. But fire officials report the blaze does not appear heading toward populated areas.
And there is plenty of reason to celebrate in San Antonio. The Spurs dethroned Detroit 81-74 in game seven of the NBA championship. It's San Antonio's third NBA title.
You can experience the power of CNN video on your computer. Log on to CNN.com. Click onto the "video" link, and you can watch what you want whenever you want.
From the Time Warner center in New York, I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
