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CNN Live At Daybreak

'Business Buzz'; Education Coalition Helps Military Children

Aired June 30, 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.

Coming up this half-hour, getting out in Washington, and we're talking about a social life. Another security alert brings the nation's business to a brief standstill.

And leveling the education playing field for the children of U.S. service members. We'll talk to a military mom, the wife of a general, General Tommy Franks.

But first, "Now in the News."

U.S. forces have secured the crash site of a U.S. chopper in the mountains of eastern Afghanistan. The downed helicopter was carrying 17 U.S. troops when it came under fire by militants Tuesday. Still no word on the fate of the servicemen.

Politicians from Georgia, Tennessee and Alabama are going to do their darndest to try and keep military bases in their states open despite being on the Pentagon's hit list. The Pentagon's Base Closing Commission will meet with representatives this morning in Atlanta.

Today is the day for businesses using credit cards to show they comply with new computer security standards. Merchants not up to snuff could face penalties of up to $5,000.

To the forecast center now.

(WEATHER REPORT)

COSTELLO: Remember, you can view more of CNN reports online. Just visit CNN.com. Click on to "watch," and check out some of our most popular stories. Actually, you choose them, we don't.

In the news this morning, startling accusations about Iran's new president. Was he involved in the Iranian hostage crisis back in 1979? Some of the former American captives are saying Mahmoud Ahmadinejad was one of those hostage-takers. In case you're too young to remember, that 1979 incident involved 52 Americans. They were held in the U.S. embassy in Iran for 444 days.

(BEGIN VIDEO CLIP) CHUCK SCOTT, FORMER HOSTAGE: We knew from what other guards had told us that he was a leader, and he was what I'd call a hard ass. And even some of the regular guards referred to him as being very strict and very anti-American. If you've got something in Iran with the hardliners like being part of the organization that took over the American embassy and embarrassed the hell out of this country for 14- and-a-half months, that looks good on your resume.

(END VIDEO CLIP)

COSTELLO: Iran's government is denying this is true. Some other American hostages from back in 1979 will appear on "AMERICAN MORNING." Of course, that comes your way at 7:00 a.m. Eastern.

In our "Security Watch" this morning, it has happened again. Another stray pilot flies into restricted airspace over the nation's capital, but this time the alert is brief. It's over in just minutes. It happened about 12 hours ago when the plane flew into restricted airspace.

The Capitol was briefly evacuated. President Bush was temporarily whisked to a safer location within the White House. The plane itself was diverted to Virginia's Winchester Regional Airport, where the pilot was questioned by the Secret Service and Customs officials. The pilot said he entered the restricted space in order to avoid bad weather.

This reminder: Stay tuned to CNN day and night for the most reliable news about your security.

Now to that contempt case involving two high-profile reporters. Matthew Cooper of "TIME" magazine and Judith Miller of "The New York Times" could both face a jail sentence for refusing to disclose their sources in the leak of a covert CIA officer's identity. On Monday, the Supreme Court refused to hear their appeal.

Now, lawyers for "TIME" magazine say they may give federal prosecutors Matthew Cooper's notes, something Cooper says he'd rather they'd not do.

(BEGIN VIDEO CLIP)

MATTHEW COOPER, "TIME" MAGAZINE: "TIME" has backed me repeatedly to the hilt in a very expensive, long, lengthy legal case that went all the way to the Supreme Court. You know, on balance, I think I'd prefer they not turn over the documents. But "TIME" is -- can make that decision for itself.

(END VIDEO CLIP)

COSTELLO: Both reporters have said they will go to jail rather than divulge their sources.

Another kind of contempt now for the Supreme Court's recent ruling on eminent domain. This bit of nastiness is directed at Justice David Souter, who voted with the majority to allow governments to seize private property for economic development. One vocal critic of that decision is turning it around on the court, saying this looks like a perfect place for a hotel, doesn't it? It's actually Justice Souter's home in New Hampshire.

Still to come on DAYBREAK, everyone wants something for free. And a few extra creature comforts also always makes traveling a little bit easier. Carrie Lee tells us where you can find both.

And he managed troops; now his wife wants to keep kids in class. Hear about a new education initiative for military brats.

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

(COMMERCIAL BREAK)

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

Free gas and free cookies are just a couple of the things you can get if you're traveling this weekend.

Carrie Lee joins us again with more goodies.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: You just have to take whatever you can get when you're traveling, right?

Well, we know gas prices are close to an all-time high. We've talked about that. Resort towns don't want that to keep you away this summer, though.

The Chamber of Commerce in Bethel, Maine, will give you $20 for gas if you stay at a participating inn in its program called Tanks for the Memories. Cute, right? Similar deals are available in Aspen, Colorado, Big Bear, California, and some places in West Virginia.

If you stop by a Doubletree Hotel this weekend, all you have to do is wear red, white and blue, and they'll give you two free chocolate chip cookies. You don't even need to be a guest there. That sounds like a pretty neat thing to do.

COSTELLO: I was going to say, because they always give you chocolate chip cookies at Doubletree.

LEE: Oh, is that right?

COSTELLO: Yes.

LEE: Oh. So...

COSTELLO: I see you (INAUDIBLE) your hotel.

LEE: It's not just weekends that travel companies are offering perks. Hyatt has reached a deal with XM Satellite to provide fee XM service in all of its rooms starting this fall. And US Airways is bringing back hot meal service on cross-country flights for first- class passengers starting in August. As the travel industry continues to recover from its post-9/11 slump, more companies are likely to come up with ways to lure customers in.

COSTELLO: Pretty cool.

LEE: Yes.

COSTELLO: A quick look at the futures.

LEE: Things are actually looking up a little bit so far today. But most people are waiting on Federal Reserve watch at 2:15 Eastern. We'll get the latest interest rate decision. Wall Street is pretty much expecting another quarter-point hike. It would be the ninth such hike. In fact, it was a year ago today, Carol, the Fed started this rate hike campaign.

COSTELLO: I guess happy anniversary, but maybe not. Yes.

LEE: Yes, it depends on which side you're on.

COSTELLO: Exactly. Thank you, Carrie.

LEE: OK.

COSTELLO: You heard Carrie talk about summer vacation travel plans many of you are already making. But do you know where those pesky highway bottlenecks are? Well, the biggest is likely to be west of Portland, Oregon, says the American Highway Users Alliance. Interstate 64 in the Tidewater region of southeastern Virginia is second on the group's list of vacation bottlenecks. The Maryland- Delaware shore, Branson, Missouri, and North Carolina's Outer Banks round out the top five.

Your news, money, weather and sports. It is 6:41 Eastern. Here's what's all new this morning.

Florida police may have bungled the case against convicted sex offender John Couey. Police have said in an alleged confession by Couey gives chilling detail of how he raped and then buried Jessica Lunsford alive. According to an audiotape of the interrogation, Couey asked for an attorney several times, but was not granted one.

In money news, this country's largest pension fund, Calpers, says it supports the post-purchase of AT&T by SBC Communications. SBC's $16 billion takeover of AT&T would create the largest U.S. telecommunications company.

In culture, Pearl Jam has announced plans to play a couple of casino concerts in Atlantic City. The late September and October shows come right after they open for the Rolling Stones in Pittsburgh. The band is also working on their first new studio album in three years.

In sports, American Andy Roddick survived a marathon five-set match to advance to the Wimbledon semifinals. It is the third straight time he's made the semis. He's never won the championship. Roddick was runner-up last year.

(WEATHER REPORT)

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

It's easy to lose track of how much we're spending. And we all do it. But a federal audit reported by "The Washington Post" found the Transportation Security Administration has been throwing some funds around on some questionable items. The money was earmarked for improving security.

But check this out: $526.95 for one phone call; $1,180 for 20 gallons of Starbucks coffee; $1,540 to rent 14 extension cords -- I didn't know you had to rent extension cords, but apparently you do; $8,100 for elevator operators; $5.4 million in salary for the executive of a defunct company.

If you want more, "Washington Post" is online, washingtonpost.com.

Still to come on DAYBREAK, the international controversies sparked by this postage stamp.

And imagine moving six times before you graduate from high school. That's the life of a military brat, as they're known. Now, you can do something to make their lives a little easier.

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

(COMMERCIAL BREAK)

COSTELLO: And welcome back. It is 6:48 Eastern. Here is what will be making news today.

The Mexican government is drawing protests after issuing a postage stamp depicting an exaggerated black cartoon character; this, just weeks after President Vicente Fox made remarks that angered African-Americans. The character is from a 1940's era cartoon, and they're not going to withdraw it.

Texas Rangers pitcher Kenny Rogers faces certain suspension after he physically attacked a local news photographer in Dallas. The cameraman was taken to the hospital after complaining of arm and leg pain. Supposedly Kenny Rogers are just frustrated at his team's losing ways, and that's why he went off.

And people with student loans take heed and make haste. After midnight tonight, the variable interest rate on federal student loans is going to jump nearly 2 percentage points, but you can avoid the hike by consolidating loans and locking in a lower rate. That's if you can get it done by today.

It is tough to be a kid, especially when your mom or dad is serving in Iraq or Afghanistan. And what about school? Some military kids change schools eight or nine times because their families have to move so often. That's why the Military Child Education Coalition was created to help.

Let's head live to Atlanta now and Cathy Franks.

Good morning.

CATHY FRANKS, MILITARY CHILD EDUCATION COALITION: Good morning, Carol.

COSTELLO: And, Cathy, in case some people didn't make the connection, General Tommy Franks is your husband. He's the man...

FRANKS: Yes. We've been married 37 years.

COSTELLO: Wow! Congratulations.

FRANKS: Thank you.

COSTELLO: I should ask your secret to that.

FRANKS: We've had a lot of separations.

COSTELLO: That's the secret?

FRANKS: That's always my answer.

COSTELLO: You don't anymore, though, do you?

FRANKS: No, we don't.

COSTELLO: OK. Well, let's talk about education and military kids now. How do you help kids deal with having a parent in a war zone, and maybe a new school?

FRANKS: Military children have a lot of stress. Their moves are difficult in many ways. And now the deployments add to that stress. Our coalition was created to help these children. And we have wonderful support from parents, from patriots, from educators, and all of the branches of the military...

COSTELLO: So, how exactly...

FRANKS: ... are members of our coalition.

COSTELLO: Cathy...

FRANKS: I'm sorry?

COSTELLO: ... how exactly do they support the kids? What specifically do they do?

FRANKS: We have initiatives such as our interactive counseling center, where we have computers in the different schools that serve military kids. We also have a computer in Baghdad, one in Afghanistan, and one on the USS Nimitz. And we're very proud of that.

COSTELLO: Oh, that's awesome. You know, I have to think this must be a tougher job at the time of war. How do you pay attention to your studies when you're a kid, when you see violence on television every day, when you're worrying about your mom and your dad?

FRANKS: You're right, Carol. Another of our initiatives is the Transition Counselor Institute. We bring in counselors from literally all over the world, who deal with military children. We talk to them about these stresses and about resources that are available to them. And, of course, the networking between the counselors is very important.

COSTELLO: I have to ask you some politically sensitive questions now, since I have you on the spot. Your husband, of course, retired after official hostilities ended. How does he feel about a timetable for ending the war?

FRANKS: A timetable would be a mistake. He has said that many times. And the wording that I would prefer is major combat operations ended, not the hostilities.

COSTELLO: Right, because certainly the hostilities are ongoing. Why does he feel a timetable would be a bad idea?

FRANKS: You give the enemy an advantage. And I have heard him say that. But, really, Carol, I'm out of my lane here, talking about military issues. I'd rather talk about the kids.

COSTELLO: Oh, I know, I know. I just need to ask you one more question. Does he believe we need to send more troops to defeat the insurgency?

FRANKS: Carol, those decisions are made by people on the ground who know what they're doing, and I trust them and respect them.

COSTELLO: All right. So, I'll ask you one more question about the kids then to round it out. What can we do to help military families?

FRANKS: Thank you for that. I wanted to let you know about our Web site. It is militarychild.org. You can see about the programs that are available, and you can find ways. And we encourage people to join us. And our motto is, "for the sake of the child." And that's what it's all about.

COSTELLO: Cathy Franks, thanks for joining DAYBREAK this morning.

FRANKS: Thank you, Carol.

COSTELLO: Updating you again on military maneuvers. A search team has secured the area in Afghanistan, where a U.S. military helicopter crashed. So, let's check in with CNN's Miles O'Brien for a look at what's coming up on "AMERICAN MORNING."

MILES O'BRIEN, CNN ANCHOR: Good morning, Carol.

Well, we'll be live from the Pentagon with new details on that chopper crash in Afghanistan. Coalition forces have reached the crash site. It's at 10,000 feet, lots of snow in that region in the Hindu Cush. We're trying to determine the fate of the personnel on board, 17 of them, and figure out exactly what brought the chopper down.

Taliban has taken responsibility for it. Does this signal a comeback for Afghanistan's former rulers? We'll take a look at that as well.

Carol, have you seen any good movies?

COSTELLO: I saw "Batman," and I really liked it.

O'BRIEN: You didn't want your money back?

COSTELLO: No.

O'BRIEN: You know, you can get your money back now for some of these movies.

COSTELLO: I've heard.

O'BRIEN: Yes. The movie industry is in this slump, and we're going to talk to B.J. Sigesmund about what they're trying to do to turn it around. Eighteen straight weekends with their box office in the dumper, and some of them are doing money-back schemes. And who knows what else is on the horizon to try to get people to go back there. But, you know, most people are just getting the DVD. Because who wants to see "Bewitched," you know?

COSTELLO: Well, that was our e-mail question this morning. And we got a lot of responses...

O'BRIEN: Your e-mail question was, who wants to see "Bewitched?"

COSTELLO: No, no, no. Our e-mail question was: Why aren't you going to the movies?

O'BRIEN: And what are they saying?

COSTELLO: They say you can sit and watch it at home for three bucks on a big, beautiful TV. So why go to the movies?

O'BRIEN: Nobody crying, nobody talking, no cell phones, right?

COSTELLO: Exactly, exactly.

O'BRIEN: Yes.

COSTELLO: Thank you, Miles.

O'BRIEN: See you in a bit.

COSTELLO: It is that time of the morning, where we, of course, give away the DAYBREAK coffee mug.

CHAD MYERS, CNN METEOROLOGIST: And I'm right here, Carol. COSTELLO: Thank goodness.

MYERS: I'm sitting right here for you. One of the other answers I found interesting to that question we had today, a lot of folks were a little disenfranchised with the actors and actresses and their current behavior, too. That's why they're not going to the movies, or at least that's what they said.

Here are the questions and the answers from yesterday for your DAYBREAK coffee mug quiz. What's the name of the Web site President Bush encouraged Americans to visit? And I just logged on. You can get on it, too. It's called Americasupportsyou.mil -- M-I-L. And who designed the New York City 2012 Olympic bid uniforms? Oscar de le Renta is the answer there.

And the winner, the winner from Rensselaer, New Jersey -- New York, rather, Jennifer Hubbs. Jennifer, congratulations. Your mug is in the mail.

And now the questions for today. According to the U.S. Census Bureau, what's the fastest growing city in America? We just had that, and it's out west. And what region was dubbed the nation's worst vacation bottleneck?

Go to cnn.com/daybreak. There's a link right there. Submit your answers to us --Carol.

COSTELLO: Thanks, Chad.

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

(COMMERCIAL BREAK)

COSTELLO: Chad has an update for all of you travelers out there.

(WEATHER REPORT)

COSTELLO: "Now in the News."

An alleged confession from John Couey, the man who told police he raped and killed Jessica Lunsford, may never be heard by a jury. According to audiotape of the interrogation, Couey asked for an attorney several times, but was not granted one.

U.S. forces have secured the crash site of a U.S. chopper in the mountains of eastern Afghanistan. The downed helicopter was carrying 17 U.S. troops when it came under fire by militants on Tuesday. Still now word on the fate of the servicemen.

NASA is expected to announce today that it will give a green light to its July shuttle launch schedule. That's despite criticism from a panel that looked at the safety of the shuttle program.

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.