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CNN Live At Daybreak

Supreme Court Drama; Judge in Kenya Acquitted Three Terror Suspects

Aired June 27, 2005 - 06:30   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.

The Supreme Court wraps up its term today. We are anticipating a round of rulings, and there is speculation one of the justices may retire.

Also coming up this half-hour, the final three suspects are acquitted in the 2002 bombing of a Kenyan hotel. Charges have already been dropped against four others. We'll have the full story ahead.

And Michael Jackson makes his first formal response to his recent acquittal.

But first, "Now in the News."

A U.S. military helicopter has crashed about 20 miles north of Baghdad. The U.S. Army Apache chopper reportedly carries a crew of two. We don't know what happened to them yet.

The Royal Nepalese Army says Maoist rebels have abducted 90 schoolchildren from Western Nepal. The military says the children were taken Wednesday about 185 miles west of Katmandu.

German Chancellor Gerhard Schroeder comes calling at the White House this morning. While the chancellor and President Bush differ over Iraq, the two have been working to curb Iran's nuclear ambitions.

And you can experience the power of CNN video on your computer. Log on to cnn.com and click "video." And you'll get video just like that.

To the forecast center.

(WEATHER REPORT)

COSTELLO: Decisions are expected today on some controversial cases as the Supreme Court wraps up its term.

Live to our Kimberly Osias who is outside the high court with more details.

Good morning. KIMBERLY OSIAS, CNN CORRESPONDENT: And good morning to you, Carol.

Well, still some big decisions to be handed down today. One on Internet file-sharing, peer-to-peer file swapping. One on the power of domestic restraining orders. That case comes out of Colorado about a mother and her three little girls -- three little girls that were shot and killed by her estranged husband. There was a restraining order out against him; so that case.

And, of course, probably the most anticipated case that everybody has been watching, those that have been following the ongoings of the Supreme Court, is that of the Ten Commandments -- a pair of cases out of Kentucky and one out of Texas.

But all of that may well get eclipsed, of course, if the chief justice, William Rehnquist, steps down. Last week, the 80-year-old came to the high court just on a cane, on his own, walking, with a trachea tube still intact. Of course, he has been undergoing cancer treatments. He has had thyroid cancer and was diagnosed back in October, but has been on the bench and really keeping up with the business of the court since March, really not falling far behind.

Those close to Rehnquist say that really this is a job he is clearly very, very good at. It is a job that he loves. So, whether he steps down or not really is a matter of his health. It comes down to what his doctors say. Very little has been known about that because he is an intensely private man, a private man very intent on getting the business of the court completed.

However, according to sources at the White House, former advisors say that really the president isn't waiting for a vacancy. He has probably narrowed down some candidates, possible candidates, to a short list of about five.

(BEGIN VIDEO CLIP)

TOM GOLDSTEIN, ATTORNEY, SUPREME COURT ANALYST: This is not unlike choosing a pope, where you have all kinds of speculation. We knew that the pope, for example, was ailing, but really didn't know the truth about the situation. In the United States, it's almost like a national security secret, where everything is really closely held. And that's true in no small part, because there are real political consequences to the information leaking out. So, everyone has an incentive to keep it a secret.

(END VIDEO CLIP)

OSIAS: A retirement announcement about Rehnquist could come from the bench today. It could trickle down however later. Those close to Rehnquist don't believe that it will happen today, primarily because, again, as I had mentioned, he's an intensively private man, one that wants to make sure that nothing detracts from the business of the court -- Carol.

COSTELLO: Kimberly Osias live in Washington, D.C. this morning. A shark attack off the Florida Gulf Coast this weekend has some beachgoers thinking twice about going into the water.

CNN's Miles O'Brien joins us now for a look at what's coming up on "AMERICAN MORNING."

Good morning -- Miles.

MILES O'BRIEN, CNN ANCHOR: Yes, would you go swimming off the Gulf, Carol?

COSTELLO: No.

O'BRIEN: No. I'm not going either.

COSTELLO: No. And, you know, there is probably very little to fear, but it's too soon.

O'BRIEN: That's what pools are made for, I think.

All right, well, as we've been telling you this morning, doctors will perform an autopsy today on 14-year-old Jamie Daigle, killed by a shark off the coast of Florida this weekend. Today, we'll talk to a shark expert, who will be advising on the autopsy. He'll be there as examiners try to determine the type and size of the shark. We'll ask him what he thinks might have prompted this fortunately rare attack.

Plus, we'll meet a man who thought he lost everything only to find a treasure hanging on his wall. Al Trevino's Laguna Beach home was left teetering after that landslide earlier this month. His insurance didn't cover landslides. You've got to hand it to the insurance companies on that one. He had no idea he'd be able to rebuild. He probably didn't think he could. But thanks to a painting he bought at a garage sale for $1,500, he may not have to worry. He'll share his incredible twist of fate with us a little later on "AMERICAN MORNING."

So, always check out the garage sale items -- Carol.

COSTELLO: I'll be sure to do that.

M. O'BRIEN: You never know where a treasure will be.

COSTELLO: That's true. Thank you, Miles.

M. O'BRIEN: All right.

COSTELLO: A judge in Kenya has set free three terror suspects. They were on trial for their part in a deadly hotel bombing. Al Qaeda had claimed responsibility for targeting the Israeli-owned hotel.

CNN Africa correspondent Jeff Koinange joins us live from Nairobi with the latest on this.

Hello -- Jeff.

JEFF KOINANGE, CNN LAGOS BUREAU CHIEF: Hello there, Carol.

And what's significant about this, Carol, is that this has been one of Kenya's worst terrorist incident, 15 people killed in that hotel blast. Millions and millions of dollars went up in smoke. And three people released today, bringing the original number of suspects down to one, and that last one may be released on a technicality. The chief magistrate saying that the prosecution has failed beyond reasonable doubt to prove its case.

Now, Carol, going back to that case, way back in 2002, apparently the prosecution was quick to bring out suspects and save face. They didn't do their job properly. The police bungled in their investigations. The judge proving that these suspects are now innocent. Six of them have now walked in the last two weeks. One left, and it looks like he might be let go, Carol. It looks like this case was lost from the start for the prosecution -- Carol.

COSTELLO: So, were these terror suspects members of al Qaeda?

KOINANGE: They never claimed so themselves, Carol. That claim was coming from the outside. These suspects all along had been claiming their innocence. And that was proved up to this day. In fact, the other three were released earlier. It was actually four of them who were released. And one of them was re-arrested. And the United States is trying to extradite him from Kenya to the U.S. to face trial. That may not happen.

So, this case may go unsolved -- Carol.

COSTELLO: Jeff Koinange reporting live from Nairobi this morning.

In news across America now.

The search for a missing Boy Scout will resume this morning at Yellowstone National Park. Thirteen-year-old Luke Sandberg fell into the Yellowstone River Friday while playing with other scouts. Park officials say the found tennis shoes. They do believe they belong to the missing boy.

The NAACP has chosen former Verizon executive as its next president. Fifty-nine-year-old Bruce Gordon is the choice to replace Kweisi Mfume, who resigned in November. Gordon still must agree on the financial part of the deal and also has to be confirmed during the national convention next month.

An unusual scene during Sunday's mass at a church in Los Angeles. This man was supposedly upset with the way the Catholic Church has handled the priest abuse scandal. So, you can see, he handcuffed himself to Cardinal Roger Mahoney's chair. The cardinal continued the service, and the man was arrested afterward.

Still to come on DAYBREAK, America's love affair with a certain sports car is generating hope for the country's struggling auto industry. Carrie Lee will have details for you in just a moment.

And Michael Jackson finally responds to his acquittal.

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

(COMMERCIAL BREAK)

COSTELLO: A quick check of the international markets for you. This is Monday, isn't it? Japan's Nikkei closes down almost 123 points. Britain's FTSE trading down 39. The German DAX down over 46 points.

It's time now for a little "Business Buzz."

Automakers struggling with slow sales may want to try redesigning an old favorite.

Carrie Lee joins us with more and a picture.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: That's right, a picture of the Ford Mustang, 2005, Carol. This has been a hot ticket for Ford lately. This is the first redesign on the Ford Mustang since 1994. And Ford has seen great success at a time when automakers are offering huge incentives to get cars off the lot. You can take a look at this, really retro features: round headlights, chrome details. And the company had done very well with this model.

Mustang sales are up 47 percent through May compared to last year. Ford is really working hard to fill the 5,500 outstanding orders for this 2005 model. It's even told dealers to stop selling 2005s and start selling 2006s.

COSTELLO: Wow!

LEE: Yes. Customers are waiting for months for their Mustang. They've even in some cases set up Internet sites to try to track where their vehicle is in the production process. Really can't wait to go and pick up their cars off the dealer lots.

COSTELLO: Oh, that's terrific.

LEE: Yes, it is.

COSTELLO: Ford needs some good news.

LEE: They really do. Now, who knows if this is going to be enough to really get the company back on track overall? But, you know, reportedly, the fact that the 2005s are so hot are even helping the resale values of Mustangs for 2003 and 2004. So, it's pretty cool to have an upbeat story for this Monday.

COSTELLO: A look at the futures.

LEE: Looking a little bit weak for today's session. We have a slew of economic news coming out. And oil prices are going to be key to watch, because we've been flirting with that $60 a barrel level. That's what has put a damper on stocks over the past couple of weeks.

COSTELLO: Yes, no need to tell us that.

LEE: Yes, no sense in that.

COSTELLO: Carrie Lee, thank you.

Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.

Recovery efforts are under way in central Iraq after a U.S. Army helicopter goes down. The Apache crashed about 20 miles north of Baghdad with two crew members on board. No word on their status or the cause of the crash.

In money news, "Batman" was again tops at the box office over the weekend. But even the cape crusader has been unable to pull the movie biz out of a tailspin. Revenues have fallen for 18 straight weeks, which passes the previous worst slump back in 1985.

In culture, Eminem has signed on to take part in a fund-raiser in its hometown of Detroit. He will play one song at the Rock on the Rooftops fireworks festival on Wednesday. And Detroit's mayor says never fear, the song will be appropriate for people of all ages.

In sports, the Nextel Cup points leader has some trouble in California. But why am I telling you this story? Chad.

CHAD MYERS, CNN METEOROLOGIST: Jimmy Johnson and also Mr. Gordon had some transmission troubles there yesterday. And they just had trouble getting in and out of gear. They got the transmission fixed. It was more of a linkage issue. But by that time, they were already back in the 30th-35th spot. So, they had trouble. And there it goes your winner, smoke, yes. He smoked them yesterday for sure.

The big story, I think, Carol, is that the gold guys did well. Rusty Wallis, Dale, Gerard, Ricky Rudd (ph), all 48 years old, all in the top five yesterday.

(WEATHER REPORT)

COSTELLO: That's a look at the latest headlines for you this morning.

We are expecting some new developments in the case of an Alabama teenager who went missing in Aruba. Let's check in with CNN's Soledad O'Brien for a look at what's coming up on "AMERICAN MORNING."

Good morning.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you.

Yes, we're going to be live from Aruba this morning with the very latest in that case, the Natalee Holloway case. The Texas team that's helping with the search there says they might have found some items of interest during a sonar scan. We're going to find out whether those leads -- those could be promising leads or not. Also, we're live from the Supreme Court this morning. The court is expected to hand down several big decisions today. All eyes, though, are going to be on this man, the chief justice, William Rehnquist. He's been battling cancer. He could step down today, and that would create the first opening on the nation's top court in more than 10 years. We're going to talk about that likelihood with CNN's senior legal analyst Jeff Toobin.

Those stories a little bit later on "AMERICAN MORNING." We start at the top of the hour -- Carol.

COSTELLO: Thanks, Soledad.

This out of the White House this morning: The Bush administration has drafted a plan to stop the spread of weapons of mass destruction. "The Washington Post" says the plan calls for blocking or freezing the assets of any business or nation doing business with Iranian, North Korean or Syrian companies suspected of developing weapons programs.

Also, a shakeup in Saudi Arabia's diplomatic ranks. Arab sources tell CNN that Prince Bandar plans to leave his longtime post as the Saudi ambassador to the United States. Ever since 9/11, there has been growing criticism of Bandar's ties to the Bush family. Bandar has been the chief Saudi envoy to Washington since 1983.

Still to come, of course, today's mug winner. But first, it's time to say happy birthday.

(COMMERCIAL BREAK)

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

The murder trial begins for the accused serial killer of Wichita. But there is some question as to whether there will even be a trial.

The Supreme Court's current term ends today. Rulings will include displays of the Ten Commandments, copyright infringement on swapping music, movies and software. Another cliffhanger is the possibility of Chief Justice Rehnquist's retirement.

President Bush hosts German Chancellor Gerhard Schroeder at the White House today. On the agenda: Germany's position on the Iraq war, the dispute over Iran's nuclear program and the upcoming G8 summit.

We are getting a public statement from Michael Jackson, his first since he was acquitted of child molestation charges this month. Are you ready?

Jackson has posted this statement on his official Web site. He thanks his fans, family and God for helping him get through the 14- week trial.

Part of the statement reads -- I'm quoting here: "Your ever- present love held me, dried by tears and carried me through. I will treasure your devotion and support forever. You are my inspiration."

Now you know -- Chad.

MYERS: What's up with Michael? I didn't hear about it.

Anyway, it's time to give away a mug. Enough of that. Here are your questions from Friday and the winner. The question was: The Supreme Court sided with what city government on eminent domain to give it to a private contractor? That was New London, Connecticut. A lot of folks in my neighborhood were not happy with that, by the way. How much is China's bid for UNOCAL oil company? 18.5 billion in the U.S. or wan, because they're connected.

The winner, Susannah Pelletier from Nashville, Tennessee. That's if you're French maybe. But if not, you can figure it out.

Susan, you know -- Susannah, you know that you are now the winner for today.

The questions for today, though, go as follows: What university will soon offer a degree in Homeland Security? And who is the new leader of the NAACP, elected this weekend?

Submit your answers online, cnn.com/daybreak. There's a link there for you to put your answers in. Please do so. We'll give you the winner tomorrow.

COSTELLO: We certainly will. Thank you, Chad.

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

(COMMERCIAL BREAK)

COSTELLO: Oh, Chad.

MYERS: Yes?

COSTELLO: I'm still recovering from that joke about Michael Jackson. That was a good one.

MYERS: I must have been, like, on vacation for eight months.

COSTELLO: You missed the whole trial.

MYERS: I missed the whole thing. I didn't know. I could have been a juror.

(WEATHER REPORT)

COSTELLO: "Now in the News."

Recovery efforts are under way in central Iraq after a U.S. Army helicopter goes down. The Apache crashed about 20 miles north of Baghdad. Two crew members were on board. No word on what happened to them at this time. The Energy Department may be planning to make its own plutonium. "The New York Times" reports energy officials want to start making several hundred pounds of potentially dangerous plutonium 238 within the next decade. The production would take place at a facility in Idaho.

And just a few hours ago, a judge in Kenya acquitted three men of conspiracy in a 2002 suicide bombing. The attack at an Israeli-owned hotel killed 15 people. The judge said prosecutors failed to prove the case. Earlier this month, murder charges were dropped against four other men in the case.

And we want to let you know you can experience the power of CNN video on your computer. Log on to CNN.com, click on to the "video" link, and you can watch whatever you want.

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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