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CNN Live At Daybreak
Reviewing Bush's Speech; Chopper Down in Afghanistan; Scrushy Not Guilty; Painful Search for Murdered Children
Aired June 29, 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 Wednesday, June 29.
President Bush takes a firm stand on the war in Iraq.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our strategy can be summed up this way -- as the Iraqis stand up, we will stand down.
(END VIDEO CLIP)
COSTELLO: The president makes his case before the American people. But will it be enough to regain their support?
Also, just when you thought gas prices were on the way down, oh, they're starting to jump again at the pump. Could we see $3 a gallon? Ooh, we could.
And will they ever be found? A desperate mother tries to bring her slain children home.
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 president's speech in just a minute.
Also ahead, a former health care executive says he didn't know about corruption, community and fraud. Find out what the jury thought.
But first, now in the news, a U.S. military helicopter with 17 service members on board has gone down in Afghanistan's registered Hindu Kush Mountains. The Taliban claims to have shot it down. The troops were on a mission against suspected al Qaeda fighters. No word on casualties.
Take a look at the revised design for the Freedom Tower at the World Trade Center site. It was unveiled just about two hours ago. Police security concerns prompted architects to move it back from the street.
More help may be on the way in the search for Alabama teenager Natalee Holloway. Aruba's prime minister has asked for a new contingent of Dutch Marines to join in the search. And remember, you can view more CNN reports online. Just visit cnn.com, click onto "watch" and you can see moving video.
To the Forecast Center and Chad -- good morning.
CHAD MYERS, CNN METEOROLOGIST: And good morning, Carol.
(WEATHER REPORT)
COSTELLO: Up first this hour, staying the course. That was President Bush's message in his prime time speech as he tried to win back support for the war in Iraq.
Let's head live to our Sumi Das.
She's in Washington with more on the president's effort to make his case -- good morning.
SUMI DAS, CNN CORRESPONDENT: Good morning to you, Carol. ;
Well, one year after the hand over of Iraqi sovereignty, President Bush first met with over 90 family members of soldiers who had been killed in Iraq and then he tried to boost flagging public support for the Iraq war.
(BEGIN VIDEO TAPE)
DAS (voice-over): President Bush's message as he addressed the nation Tuesday evening -- the global war on terror came to the U.S. on 9/11.
BUSH: we fight today because terrorists want to attack our country and kill our citizens, and Iraq is where they are making their stand. So we will fight them there, we will fight them across the world and we will stay in the fight until the fight is won.
DAS: The president laid out a two pronged strategy focused on political progress by establishing a democratic Iraqi government and military efforts to train Iraqi security forces.
BUSH: Our strategy can be summed up this way -- as the Iraqis stand up, we will stand down.
DAS: Mr. Bush said sending additional troops to Iraq was unnecessary.
Some Democratic senators said the president's reasons for going to war in the first place seemed to be changing.
SEN. JOSEPH BIDEN (D-DW), FOREIGN RELATIONS COMMITTEE: He said we must prevent Iraq from becoming a haven for terror. That means it wasn't a haven for terror before.
DAS: But Republican senators said the president made his case.
SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: The truth is we've made mistakes in judgment, underestimating the level of the insurgency, maybe not having enough troops at the beginning, and we've paid a price for that. But if we look backward, we're not going to win this war.
(END VIDEO TAPE)
DAS: The mood at Fort Bragg was more subdued than compared to President Bush's previous speeches at military bases. Only once, one time only, did the troops interrupt the address with applause.
Live in Washington, I'm Sumi Das -- Carol.
COSTELLO: Sumi Das, thank you.
So, what's been the reaction to President Bush's speech?
In a CNN/"USA Today"/Gallup poll taken right after the speech, 46 percent said they had a very positive reaction. Twenty-four percent had a negative reaction. Most of those who watched, by the way, are Republican.
Before the speech, 56 percent said President Bush had a clear plan for the war in Iraq. After the speech, that number went up to 63 percent.
Troops at Fort Bragg, North Carolina, where the president made his speech, are offering their take on his message. Many say they know what the mission is all about and they remain committed.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I was never unclear, not really unclear. I mean there was, you know, I mean every day we were told what we're fighting for, you know? So I mean it's -- it's probably more unclear to civilians than soldiers. Soldiers know what they're doing every day, like what they're fighting for.
UNIDENTIFIED MALE: The military was never mixed on the messages. You know, a lot of that is what you see on TV, but at our level, it doesn't really affect us. We have our job to do and we do it and the plan that he laid out, we'll carry out the mission.
(END VIDEO CLIP)
COSTELLO: The president also asked Americans to remember the troops this July 4th holiday. The Defense Department has a new Web site. Here it is. It's AmericaSupportsU.mil. And you can find out how to support the troops in your community by clicking onto their Web site.
During the president's speech, he wore a bracelet given to him by a woman named Crystal Owen (ph). She is the wife of an Army psychological ops specialist killed last year in Iraq. The bracelet was engraved with the name of her husband, Staff Sergeant Mike Owen, and the name of a fellow soldier who died with him. Crystal Owen gave it to the president earlier in the day when he met with family members, and she asked him to wear it and he did.
And this note on the issue of weapons of mass destruction. The White House is endorsing almost all 74 recommendations made by a presidential commission on WMDs. Among the new initiatives, creating a counter-proliferation center that will coordinate intelligence on nuclear, biological and chemical weapons among the 15 spy agencies. The commission had earlier called U.S. intelligence efforts on Iraq's WMDs "dead wrong."
In other "Stories Across America" this Wednesday, the death of a Marine private during training at Paris Island, South Carolina was accidental, but preventable. That's according to a Marine Corps investigation into the February drowning death of Jason Tharp. The commander at Paris Island has made changes in the training of swim instructors there as a result of the investigation.
Just what caused Wal-Mart heir John Walton's single seat small aircraft to crash? The National Transportation Safety Board has launched an investigation into the Monday crash outside of Jackson, Wyoming. Walton was among the world's richest men. Last year, his fortune was estimated at $20 billion by "Forbes" magazine. Walton was cited with a Silver Star for saving the lives of several comrades as a medic with the Green Berets in Vietnam.
The family of a 10-year-old Minnesota boy attacked by a lion last week says he suffered brain damage and has a severed spinal chord. Russell Lala's family says the attack left him a quadriplegic and dependent on a respirator. The lion was kept as a pet by a family friend.
Still to come on DAYBREAK, did the president sell his message on Iraq to Capitol Hill? We'll weigh in with two representatives.
Coming up also, the price of crude oil is trading at all time highs. Production, supply and your gas bill -- an expert joins us to explain how it works.
And later, the latest step to solving a 2-year-old murder mystery could take investigators across the country.
But first, here's a look at what else is making news this Wednesday.
(COMMERCIAL BREAK)
(BEGIN VIDEO TAPE)
UNIDENTIFIED MALE (voice-over): The top business stories of CNN's first 25 years.
We asked the editors at "Money" magazine to come up with a list.
Number 15, tax cuts. This business story hit home starting in 1981, with the biggest tax cut in U.S. history.
Number 14, downsizing and the death of manufacturing. In the late 1980s, major corporations announced job cuts to boost bottom lines. More and more jobs are being outsourced to low wage countries.
Number 13, CEO perks, executives in handcuffs. Investors want someone to pay for the wrongdoings of corporate America.
At number 12, CEO perks, from Jack Welch to Bill Gates, CEOs have become household names, earning hefty compensation with a new extra -- accountability.
Number 11, merger mania -- is bigger really better?
RON ESPOSITO, MANAGEMENT CONSULTANT, PCI: Most of these mergers have resulted in very significant and massive downsizing.
UNIDENTIFIED MALE: Stay tuned as we count down to number one.
(END VIDEO TAPE)
COSTELLO: It's kind of a foggy morning in Atlanta, but, boy, the shoppers there out already. Who knew Ikea was this popular? Atlanta shoppers are getting their chance at a long awaited store -- look, they're camping out at the new Ikea store, dozens of people.
It's going to open this morning. This is brand spanking new. It is the first Ikea located south of Virginia. The first 105 people in line will get free chairs, which I guess they could have used while waiting in the parking lot. In fact, some have been waiting here for days.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: The very first night we were here, on Saturday night, it poured down rain and we were in the tents and we got wet.
(END VIDEO CLIP)
COSTELLO: I can understand a concert, but -- oh, well, the new Ikea store is happening in Atlanta. Go, go, go.
Your news, money, weather and sports.
It is 6:14 Eastern.
Here's what's all new this morning.
The fate of 17 U.S. servicemen still isn't known after their Chinook helicopter crashed in Afghanistan. The Taliban claims responsibility for shooting down the helicopter near the border between Pakistan and Afghanistan.
In money news, I'll bet rising gas prices have some of you looking for alternatives. Experts say sales of hybrid and diesel vehicles will likely more than double over the next few years.
In culture, if you want to get a real feel for Bob Dylan's famous coffeehouse vibe, head to your nearest Starbucks. The chain will be selling remastered bootlegs from Dylan's days of playing coffeehouses back in the '60s.
In sports, as expected, Andrew Bogut was the first overall choice in the NBA draft. The Milwaukee Bucks selected the seven foot Australian center in the second pick. The Atlanta Hawks chose Marvin Williams from North Carolina -- Chad.
MYERS: Yes, but Marvin was only 19 years old. He's a freshman. So, there you go. This guy has got a big career ahead of him, so to speak. He's seven foot tall.
(WEATHER REPORT)
COSTELLO: A corporate CEO was charged in a multi-billion dollar conspiracy case. Still ahead, a jury tests a new law aimed at fighting corporate fraud. We'll bring you the outcome and reaction next.
And will filling up your gas tank mean emptying your wallet? You've heard it before, but this morning we will explain why gas prices are going up this time and may stay up there.
We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Time for a little "Business Buzz" right now.
Frontier Airline customers may be able to get a Mercedes with their frequent flier miles. Wow! The airline is opening a new Web site that allows customers to redeem their miles for more than just tickets. Frontier hopes passengers will take more trips in order to get more miles.
Microsoft is trying to beat software pirates at their own game. It's lowered the price of Windows XP operating system in Mexico to appeal to low income computer users. Microsoft hopes the low price will keep users from using usually cheaper pirated software.
A jury clears the former CEO of HealthSouth in the latest corporate crime trial.
Carrie Lee is here with more -- this came as somewhat of a surprise.
CARRIE LEE, CNN CORRESPONDENT: It really did. Thirty-six counts against Richard Scrushy, of course, the former CEO of HealthSouth. And he was found not guilty on all the charges. So, pretty impressive for him, for his defense team, certainly. This, of course, involves the $2.7 billion accounting fraud at the hospital chain.
Now, Scrushy did not take the stand in his own defense, but his lawyers insisted he was unaware of the fraud. Five former chief financial officers testified against him. The jury deliberated for six weeks in all, but had to start over again last week when one juror go sick and was replaced with an alternate. Now, prosecutors do plan to appeal. Interesting to note, Scrushy was the first person charged under the Sarbanes-Oxley Act, which requires company officers to vouch for the accuracy of financial reports.
Now, this verdict certainly comes as a blow for prosecutors, who had recently won severe sentences for two of the Rigases from Adelphia Communications and former Tyco CEO Dennis Kozlowski. Former WorldCom CEO Bernie Ebbers was convicted in March. He is scheduled for sentencing on July 13. Prosecutors there asking for an 85-year sentence. That would mean life for him. Also, Enron's Ken Lay and Jeffrey Skilling will go on trial early next year and are expected to use a similar I knew nothing defense.
We'll see if they come out in the clear like Scrushy does. But I think, Carol, certainly most people were surprised with this.
COSTELLO: Well, that didn't work for Dennis Kozlowski, though, the I don't know nothing defense.
LEE: No, it certainly didn't. It certainly didn't. But, you know, unfortunately a lot of other people get caught in these things, too. HealthSouth's stock was delisted from the New York Stock Exchange in 2003. It now trades over the counter at about $6. So shareholders get caught in the middle, too.
COSTELLO: Carrie Lee, many thanks.
LEE: OK.
COSTELLO: When it comes to the Iraq war, one question stands out in the minds of Americans -- when will American troops leave Iraq? Well, President Bush didn't exactly answer that question in his speech on Iraq last night. The president defended the war effort but says he refuses to set a date for pulling out.
(BEGIN VIDEO CLIP)
BUSH: Setting an artificial timetable would send the wrong message to the Iraqis, who need to know that America will not leave before the job is done. It would send the wrong signal to our troops, who need to know that we are serious about completing the mission that they are risking their lives to achieve. And it would send the wrong message to the enemy, who would know that all they have to do is wait us out.
We will stay in Iraq as long as we are needed, and not a day longer.
(END VIDEO CLIP)
COSTELLO: Time to talk to lawmakers who, after all, voted for the war and have voted and, again to pay for it.
Joining us live from Washington, Representative Robin Hayes, a Republican from North Carolina. Welcome.
REP. ROBIN HAYES (R), NORTH CAROLINA: Thank you, Carol.
Good morning.
COSTELLO: Representative Hayes, your district includes Fort Bragg, where the president made his speech.
I want to read you an e-mail from one of our viewers. Dan in California writes: "Bush really should be making this speech at Arlington National Cemetery, not at Fort Bragg."
Was it appropriate for President Bush to speak there?
HAYES: Absolutely, it was. It shows our love and appreciation for the troops and what they're doing. The president spent three hours with family members who've lost loved ones as a result of this war against terror and terrorists.
COSTELLO: But isn't he, in part, using Fort Bragg as an appropriate backdrop to cheerlead the war in Iraq?
HAYES: It's not about cheerleading the war in Iraq, it's about informing the American people of the progress that's been made. The e-mail I got from Iraq yesterday, "a time line is a terrible mistake," "we are winning," "we will win." And the stakes, the future is Western civilization and freedom around the world.
COSTELLO: President Bush said in his speech we're there to fight terrorists. But he failed to explain how a war to remove a dictator bent on using nuclear weapons has turned into a fight against Muslim militants.
Doesn't he owe us an explanation?
HAYES: He gave us a very good explanation of what the war is about. It's winning the war against terror and people that would kill us, innocent women and children. This is about a military action against ruthless, brutal killers who have no conscience whatsoever.
COSTELLO: Well, we understand that.
HAYES: It's about destroying us.
COSTELLO: But that's not what it started out, when the United States invaded Iraq.
It's changed, hasn't it?
HAYES: I don't think it's changed at all. It's very clear that terrorists are connected to what Saddam Hussein was all about. And that again faces up to the most severe threat going forward...
COSTELLO: But there is no...
HAYES: We have to do a good job explaining...
COSTELLO: ... evidence that Saddam Hussein was connected in any way to al Qaeda.
HAYES: Ma'am, I'm sorry, but you're mistaken. There's evidence everywhere. We get access to it, unfortunately others don't. But the evidence is very clear.
COSTELLO: What evidence is there?
HAYES: The connection between individuals who were connected to Saddam Hussein, folks who worked for him, we've seen it time and time again. But the issue is where are we now. Nobody disputes 9/11. They would do that again if not prevented. Preventing 9/11 wherever it might happen in America, winning the war overseas, not bringing it here to our shores, is the issue in that regard.
COSTELLO: Well, are you saying that Saddam Hussein had something to do with 9/11?
HAYES: I'm saying that Saddam Hussein -- and I think you're losing track of what we're trying to talk about here -- Saddam Hussein and people like him were very much involved in 9/11. Did he make the phone call and say...
COSTELLO: There's no evidence of that.
HAYES: Well, I'm sorry, you haven't looked in the right places.
COSTELLO: I must not have, because I know of no evidence connecting Saddam Hussein to Osama bin Laden or al Qaeda. And, also, there were no weapons of mass destruction in Iraq. And many people writing to us this morning wanted the president to explain those things.
HAYES: Well, we would be glad to explain it. I'd love to talk to those people face-to-face because hundreds of thousands of Kurds were gassed and killed, biological weapons were used. Fortunately, nuclear weapons weren't there. That's one smoking gun we didn't find. But it's very clear he would have used it if he could. The terrorists that remain would clearly use nuclear, biological, chemical, any other kind of weapon to destroy you, me and our families.
COSTELLO: All right, well, let me ask you this, because taxpayers are doling out in excess of $400 billion to pay for this war. You have the power when it comes to this.
Is there a time when you will say enough?
HAYES: I will say enough when we have victory against terror and terrorists. We are winning the war in Iraq. A time line is a terrible idea. That came directly from the people who are fighting the war. Progress is being made. The men and women are doing a fabulous job. There's a time line clearly with a constitution and elections being held. We stand down as they stand up. Progress is being made every day in the strength and confidence of the Iraqi security forces. That's what brings our men and women home. And the stake is our future and our children's future.
COSTELLO: A final question.
Do you feel safer here because of the war in Iraq? Is that preventing terrorist attacks in the United States?
HAYES: Absolutely. Well, we haven't had an attack since 9/11, and that's what we're here to prevent. And I absolutely do feel safer. If not now, when? If not here, where? And better in Iraq than in America.
COSTELLO: Representative Hayes, thank you for joining DAYBREAK this morning.
We appreciate it.
HAYES: Thank you.
COSTELLO: Now for reaction from the other side.
Represent Adam Schiff, a Democrat from California.
Good morning.
REP. ADAM SCHIFF (D), CALIFORNIA: Good morning, Carol.
It's great to be with you.
COSTELLO: Oh, we're glad you're here with us.
SCHIFF: Thank you.
COSTELLO: I'd like to ask you the same question I asked of Representative Hayes. So far, $400 billion has been earmarked for Iraq. The Democrats have approved it.
When is enough enough?
SCHIFF: Well, we have to make sure that our troops have all the support that they need to do their job and come home safely. So we need to make sure that we've corrected deficiencies in up armored vehicles, and that costs money.
The fact of the matter is we have to prevail in Iraq, as difficult as that's going to be. And I agree with the president, we can't set a timetable. I think that would only advantage the insurgents.
At the same time, I would have liked to have heard the president last night talk very candidly about the challenges that we're facing in Iraq, greater than, I think, many assumed at the outset. And I think it's very important for the president to level that way with the American people. Let them know this is going to be long and it's going to be hard. That, I think, is key to maintaining public support.
The other thing I would have liked to hear...
COSTELLO: But surely you have studied this.
I mean how long will it take? How long will we be there? He says we'll be there until Iraqi forces are trained and can take over security.
But when will that be? Nobody seems to know.
SCHIFF: Well, it's clear that it's not going to be the very near future. We're not in the last throes of the insurgency, much as we would all wish that was the case.
But the reality is we should stop talking about an exit strategy and start talking about an entrance strategy. How do we get the Sunnis to enter into the government, get out of the insurgency business? How do we get our allies to enter into a common effort in Iraq in a much more substantial way, get them to guard the borders of Iraq and keep these foreign fighters out of the country?
These are the kind of strategic things that I think we need to be talking about. I would have liked to have heard the president last night talk about how he is adapting -- the insurgency is adapting. How are we adapting our military and political effort in Iraq to beat the insurgents? These are the things that I think the American people are hungering to hear about, to know how we're going to defeat the insurgents, how we're changing our tactics, how we're improving on the ground. And I wish we had heard a little more about that last night.
COSTELLO: Well, let me read you this e-mail that we got from one of our viewers, Bill from Virginia. He writes: "The president controls the message, the environment. Dissenters are smeared as traitors. Some charge Democrats are weak on terrorism if they speak out strongly against this fight."
Isn't it time to say so what and to start speaking strongly and to start changing the way the administration does things in Iraq? And how can you do that when you don't seem to have the political power behind you to get that done?
SCHIFF: I think all the Democratic members need to speak out very strongly. And certainly there's no uniformity of opinion with either the Democratic or Republican Party. We saw some Democrats and Republicans last week call for a timetable. Again, I don't think that's the right approach.
But clearly we need to, I think, speak out in support of our men and women in uniform that are over there. I'd like to see us talk about the shared sacrifice that the whole country ought to be making in this war effort. Right now, Carol, the only people that are sacrificing are those in uniform and their families. The rest of us should be called upon to do our part.
Each of us should adopt a military family in our district, make sure they have everything they need while their loved one is fighting for us in Afghanistan, in Iraq. And we can't forget Afghanistan, particularly in light of the tragic news of the downing of that helicopter and the increase in combat in Afghanistan lately.
But we should all be adopting a military family, making sure that they have what they need. And more than that, we should be paying the cost of the Iraq war and not passing that onto our kids. And I would like to hear the president talk about all of us sharing in the sacrifice. The country really hungers to do its part and there's plenty for us to do.
COSTELLO: Representative Schiff, Thank you for joining DAYBREAK this morning.
SCHIFF: Thank you, Carol.
COSTELLO: Still to come, we'll talk about that helicopter crash. It has U.S. troops scrambling in the rugged mountains of Afghanistan. We'll bring you the latest.
And she's not giving up. A determined mother is renewing the search for her murdered children.
We'll be right back.
(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 waking up with us.
Coming up this half-hour, a military helicopter, just like the one you're about to see, is down in some of the most rugged terrain on the face of the Earth. We'll check in with our Pentagon correspondent for the latest.
And ouch! That's what you are probably saying at the pump these days. Just how high can gas prices go? The answer might -- well, it might shock you.
But first, "Now in the News."
Help for disabled veterans is expected to pass the Senate today. The bill would provide about $1.5 billion in emergency funding for veteran's health care program. The House is expected to vote on the bill early next month.
Canada has become the third country to officially legalize gay marriage. The House of Commons approved the measure, which had already been adopted by many of the country's territorial governments.
But first, a helicopter with 17 service members aboard has been shot down near the Afghanistan-Pakistan border. That's where a military offensive against al Qaeda members is going on. No word on casualties yet.
But we want to get more from our Pentagon correspondent, Barbara Starr.
Barbara -- what new do we know this morning?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Carol, it is overnight that the U.S. military is now saying that the initial reports indicate the crash of this MH-47 special operations helicopter may have been caused indeed by hostile fire.
They are releasing very few details. They're not telling us exactly why they now believe it was shot down.
The status of the service members on board is unknown at this time. They are reporting 17 personnel were on board. And they are telling us that when the helicopter crashed, both coalition and Afghan forces moved very quickly into position on the ground to try and block enemy forces from getting close to the crash site.
All of this remains a very fluid situation at this hour -- Carol.
COSTELLO: Do we know who these service members are who are missing yet, Barbara?
STARR: They have not been identified. Certainly, the process will be the military will engage in search and rescue, and then search and recovery of remains, if it comes to that. And so, until they have accounted for everyone on board and done the appropriate family notifications, they will not identify who these people are.
There is some initial indication from our sources that these personnel may have been members of Special Forces. They were moving into the area at the time to reinforce troops that were already on the ground engaged in fighting with insurgents. But no official word on what unit they would have belonged to.
COSTELLO: Barbara Starr reporting from Washington this morning.
Was it a reality check or just rhetoric? We're talking this morning about President Bush's speech on Iraq. The president made a prime time push to regain support for the war. And he laid out some details of the effort to help Iraqi forces.
He said U.S. and Iraqi units will join forces for field operations. Coalition teams will be embedded inside Iraqi units to provide battle advice and skills. And U.S. officials will work to help Iraqis develop command and control structures.
In Iraq, reaction to the president's speech wasn't exactly positive.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (through translator): President Bush's speech doesn't serve Iraqis. It will worsen the security situation. The explosions target U.S. troops, but, in fact, hurt Iraqis more.
UNIDENTIFIED MALE (through translator): President Bush's speech that the Americans will not withdraw from Iraq was made under feeble pretexts. This is a violation of Iraqis' dignity. The Iraqis are able to run their country, particularly after elections.
(END VIDEO CLIP)
COSTELLO: In our "Security Watch" this morning, it's about milk. The National Academy of Sciences says it will publish a controversial study outlining how terrorists could use botulism to contaminate the nation's milk supply; that, despite complaints from the Health and Human Services Department that the article is -- and I'm quoting here -- "a road map for terrorists." An editorial accompanying the article will note this information is already on the Internet.
There are concerns about the security at the government's nuclear facility in Oakridge, Tennessee. The Department of Energy reports security workers there are overworked and are not properly trained. The report says many guards routinely work more than the 60 hour limit imposed by the DOE.
Take a look at all of these confiscated lighters at the airport on Honolulu. Screeners have seized -- get this -- something like 1,700 pounds of lighters since they were banned on planes in mid- April. It's created such a problem that they had to buy a fireproof locker to store them safely.
The Homeland Security Department says it is not worried about Fourth of July celebrations. The agency says it has seen no indications that any of the many celebrations across the country are being targeted by terrorists.
And this reminder to Stay tuned to CNN day and night for the most reliable news about your security.
New York is still hoping to get the 2012 Summer Olympics. The city held a big rally to send off their delegation to the Olympic Committee meetings in Singapore. Secretary of State Condoleezza Rice was among the dignitaries on hand to tout New York's Olympic dreams.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: Everybody wants to be an Olympian. Come on, we all did. And the truth of the matter is everybody would love to be a New Yorker, too.
(END VIDEO CLIP)
COSTELLO: Amen, sister!
Secretary Rice was assisted in unveiling the new Olympic uniforms. These Oscar de la Renta originals will be worn by the Olympic delegation. The site for the 2012 games will be announced a week from today.
Still to come on DAYBREAK this morning, just how high are gas prices going to get? We'll try to figure it out just ahead on this hour of DAYBREAK. And after authorities all but give up, an anguished mother takes up the search for her children's bodies. We'll tell you her tragic story just ahead.
But first, here's a look at what else is making news this Wednesday.
(COMMERCIAL BREAK)
COSTELLO: It's time to take a look at how the international markets are trading this morning. Tokyo's Nikkei up just over 63 points, the London FTSE up 2, the German DAX is up 7.
The price of crude oil is affecting the markets worldwide. More to the point, it's affecting us. The price of crude topped 60 bucks a barrel before falling below that benchmark. And some say you haven't seen nothing yet. Because of rising prices, gas prices could top $3 a gallon.
Joining us now, Peter Beutel, an oil analyst.
Good morning, Peter.
PETER BEUTEL, OIL ANALYST: Good morning. How are you today?
COSTELLO: I'm doing pretty good. Let's look at the prices now -- of gas that is. Denver is at $2.11 a gallon. Los Angeles is at $2.42. Will we see three bucks a gallon?
BEUTEL: Well, it's very possible that we will. I'm hoping we will not. Yesterday, we had a very sharp sell-off. I think we got kind of all dressed up with no place to go once we were at 60.
But, you know, if we have the same kind of fear that we have had recently that has driven prices higher through the rest of this year, it's very possible that we will see $3.
COSTELLO: Let's take a look at what crude cost in June of 2004. It was $37 a barrel. Now, you know, we went above 60, as you said. Some analysts say, get used to it. The cheapest it will ever go again is 50 bucks. Agreed?
BEUTEL: No. Basically, you know, this sort of thing is a cyclical market. We may go higher. We may see $70 or $80 or even $100. I don't know. But I do know this: That eventually we will see demand start to slip because of this.
Oil, I think, is on a collision course with the economy, and eventually this is going to cause a recession. Demand will come down. And at the same time, we're going to see supplies increase. OPEC is already talking about increasing the production of light sweet crude dramatically over the next year or 18 months.
When this turns, we will not only get below 50, we will get below 40. And I think we'll be very close to 20 again someday. When it happens, I can't tell you. COSTELLO: Oh, come on, I was just going to ask you, when will that happen?
BEUTEL: Well, I don't know off-hand. But I do know this: That the cycle in this market has repeated itself over and over again. None of us thought we could get to $60, and I know very few of us are now talking about 20. But I do believe that we will again be beneath 30.
COSTELLO: Well, let me ask you this. There is already concern in Asia and Europe that high energy costs will slow economic growth. So, when will we see that happen? What will the price of crude be then?
BEUTEL: Well, this is the thing that's so interesting. Right now, we're taking about $250 million a day out of the pockets of consumers and businesses here in the United States more than we were just one year ago. If you compare it to two years ago, it's closer to $300 or $350 million a day more.
You would think that that kind of movement of money out of peoples' pockets towards energy would eventually have an effect on the rest of the economy. But so far, we're not seeing that. Nobody really knows why. My guess is the refinancing boom.
COSTELLO: I don't know. I hope we don't see it. I hope it stays that way. Peter Beutel, an oil analyst, joining us live this morning. Thank you, Peter.
Still to come on DAYBREAK, a deadly crime, a frustrating search and a mother's refusal to give up. You are watching DAYBREAK for Wednesday, June 29.
(COMMERCIAL BREAK)
COSTELLO: Welcome back. It's 6:49 Eastern. Here is what will be making news today.
There is a link between Saddam Hussein and al Qaeda and 9/11. That's what Republican Representative Robin Hayes told me just minutes ago on this program. He indicated that Congress has evidence linking Saddam Hussein to 9/11.
(BEGIN VIDEO CLIP)
REP. ROBIN HAYES (R), NORTH CAROLINA: The connection between individuals who are connected to Saddam Hussein, folks who worked for him, we've seen it time and time again. But the issue is: Where are we now? Nobody disputes 9/11. They would do that again if not prevented. Preventing 9/11 wherever it might happen in America, winning the war overseas, not bringing it here to our shores is the issue in that regard.
(END VIDEO CLIP)
COSTELLO: We'll be following up on that. Also today, a federal judge in Washington holds a hearing on the contempt case against reporters Judith Miller and Matthew Cooper. The pair face jail time after they refused to disclose sources in a CIA spy case. On Monday, the Supreme Court refused to hear their appeal.
Funeral services are scheduled in Louisiana for 14-year-old Jamie Daigle. The teen was killed in a shark attack on Saturday. She was swimming with a friend off the Florida coast when the shark attacked.
A funeral service is also planned in Camden, New Jersey, for three boys who died after being stuck in the trunk of a car. The father of one of the boys is angry at state health officials. He says his son should have been institutionalized due to mental problems. The boy may have had ADD, attention-deficit disorder.
An anguished mother says she cannot forget her two murdered children whose bodies have never been found. You might remember this case out of New Hampshire from two years ago. Investigators say Manuel Gehring shot his children to death after an argument at a July 4 fireworks show. Then he drove across the country, stopping to bury his dead children somewhere, probably in the Midwest.
Gehring killed himself in jail without revealing the exact location of the burial site. Extensive searches have found nothing.
And now the children's mother, Teresa Knight, is getting ready for her own search effort.
We want to get more now from Jeffrey Strelzin. He's the senior assistant attorney general for New Hampshire.
Thank you for joining us this morning.
JEFFREY STRELZIN, NEW HAMPSHIRE SR. ASSISTANT ATTORNEY GENERAL: Good morning.
Tell us about this search.
STRELZIN: Well, what's happening is that Philip and Sarah Gehring's mother, Terri Knight, has decided to go with members of her family and friends and actually head out to the Midwest to try and search for her missing children.
COSTELLO: And this is a big area, isn't it?
STRELZIN: It's huge. We're talking hundreds of thousands of square miles. A lot of these spots have already been searched, some numerous times. But this is the first time for the mother herself to actually go out and make an attempt to find her children.
COSTELLO: Yes. We're seeing the area right now, from Iowa to Pennsylvania and on down into Ohio, too, right?
STRELZIN: That's right. I mean, we think it's probably from Western Pennsylvania to maybe central Ohio, but we're not sure. COSTELLO: Manual Gehring, of course, killed himself in jail. But before he killed himself, he did describe a scene, where he thought he buried the children. What did he say?
STRELZIN: Well, amongst other descriptives that he used, he said it was a rural site. He said he buried the children at the edge of a large willow-type tree, that he put them both into an L-shaped grave, and that he used leaves and other debris from the area to cover up the gravesite to try and hide it.
COSTELLO: He was actually taken along I-80 to try to find this site, wasn't he?
STRELZIN: He did. He actually spent about five days with an investigator from the Concord Police Department and the FBI, backtracking along the route to try and find the burial site. But he never did or he couldn't or he chose not to. But either way, we never found the children.
COSTELLO: Teresa Knight, the mother, (AUDIO GAP) children. I just can't imagine how difficult that would be.
STRELZIN: This has been terrible for her and her family and her friends. And for her, this is a chance to try and put some closure on this and to make her own effort to try and bring her children home.
COSTELLO: I've heard she has nightmares about this.
STRELZIN: I can't imagine how any parent or family member or friend of Philip and Sarah couldn't have nightmares about these two children still being missing.
COSTELLO: If someone wants to help in the search, how can they do that?
STRELZIN: They can go to the FBI Web site or the Concord, New Hampshire, police department Web site, and they can take a look at the description of the gravesite. They can also look at a transcript from an interview of Manuel Gehring describing the gravesite. Look at that information and look around their areas to see if any spots match those descriptions.
COSTELLO: And I know Teresa Knight is going to set out herself on July 6. And we'll try to help in any way we can. Thank you for joining us this morning.
STRELZIN: Thank you for your help.
COSTELLO: A one-time political rival of the president is speaking out about last night's address.
CNN's Soledad O'Brien has a look at what's coming up on "AMERICAN MORNING."
Good morning -- Soledad.
SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you.
In the wake of the president's remarks to the nation, we're going to be talking live with Republican Senator John McCain. Some questions for him include this: What does he think of the speech? What does he think the president has to do to rebuild support for the war in Iraq? And what does he think the U.S. has to do to stop the violence in Iraq? Those questions ahead this morning for Senator McCain.
Also this morning, we're going to meet the proud parents of a not-so-little baby girl. In fact, she's so big that her daddy has named her "the big enchilada." Will you look at this child? Look at this child. Her name is Delaney Bezelle (ph). But mom and dad affectionately call her "the big enchilada." She weighed 13 pounds, 12 ounces. She was a 14-pounder. She's like a 3-month-old.
COSTELLO: Oh, Soledad...
O'BRIEN: She was only born last week.
COSTELLO: Soledad...
O'BRIEN: Yes.
COSTELLO: ... you had twins. How much did your twins weigh together?
O'BRIEN: Well, together they weighed 14 pounds, 3 ounces.
COSTELLO: So, you kind of have an idea.
O'BRIEN: Well, yes, I've got to find out how miserable was she, because I was really miserable. This is her third big, hefty baby.
COSTELLO: Oh!
O'BRIEN: You go, girl.
COSTELLO: Yes.
O'BRIEN: She popped that kid out.
COSTELLO: I can't wait.
O'BRIEN: The big enchilada. I didn't think about naming my kids that.
COSTELLO: Well, we have to talk to the father about that nickname.
O'BRIEN: Her older kids...
COSTELLO: Because...
O'BRIEN: Her older kids were 10 pounds and 11 pounds. Yes, big bear. That is like a giant little fat kid coming out, which is good. The bigger, the better. You want big healthy babies.
COSTELLO: OK, OK.
O'BRIEN: Anyway, apparently the babies are fine. We're going to chat with her this morning. She has a great sense of humor about the whole thing. Also, her baby was born three weeks early.
COSTELLO: Oh, my gosh!
(CROSSTALK)
CHAD MYERS, CNN METEOROLOGIST: Oh! She would have had a 20- pound baby.
O'BRIEN: A 45-pounder if she had taken it to term.
O'BRIEN: Oh, my god!
COSTELLO: Oh, my goodness. Hey, Chad, Chad, how much did Grant weigh?
MYERS: Seven pounds, 10 ounces.
COSTELLO: He's a little guy.
MYERS: And he's 7-months today, I think -- tomorrow. And he's already 21 pounds. So, he's getting to be a bigger guy.
Here are the mug questions and answers from yesterday. I know you're already raring to go here. Which two states were immediately impacted by the Supreme Court's decision to display the Ten Commandments? That was Texas and Kentucky. And name the U.S. military division based in Fort Bragg? The 82nd Airborne, along with others, the 18th Airborne, the U.S. Army Special Ops, the U.S. Army Parachute Team, the Golden Knights, blah, blah, blah.
And the winner, the winner, from yesterday, Melanie Gentzler from Stafford, Virginia. Congratulations, Melanie.
Now your questions for today. What is the name of the Web site President Bush encouraged Americans to visit? And who designed the New York City 2012 Olympic bid uniforms?
If you go to CNN.com/daybreak, there's a link to submit your answers there -- Carol.
COSTELLO: Thank you, Chad.
MYERS: You're welcome.
COSTELLO: We're going to take a short break. We'll come back with more. We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: All right, for all of you stuck in the airport this morning.
(WEATHER REPORT)
COSTELLO: 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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