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CNN Live At Daybreak

Moscow, New York City, Madrid Out of Running to Host 2012 Olympics; Tropical Storm Cindy Hits Louisiana Coast

Aired July 06, 2005 - 06:30   ET

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

KELLY WALLACE, CNN ANCHOR: And this just in to CNN. The International Olympic Committee, which is meeting at this hour, is deciding which of five cities will host the 2012 Summer Olympics. Well, after the first round of voting, one city has been eliminated, and we can tell you that city is Moscow. There's likely to be some sadness going on throughout the city of Moscow on this day.
What happens now, there are four cities remaining to host the 2012 Summer Olympics. Those cities are Paris and London, also Madrid and New York City. Many believe that Paris and London are among the favorites.

So, there will be a new round of voting again. A city needs to get a majority for it to host the 2012 Summer Olympics.

We will be bringing that to you. We're expecting an announcement about 7:30 or 7:45 a.m. Eastern Time. And, of course, we will bring that to you live. The main headline, though, right now, Moscow out of the running for the 2012 Summer Games.

Here are some other stories "Now in the News."

President Bush making a stop in Denmark before heading to the G8 summit in Scotland. In Denmark, he fielded some questions on the Supreme Court vacancy, global warming and prisoners being held at Guantanamo Bay in Cuba.

Rebels in Afghanistan have attacked a U.S. military medical team. That attack happened in the same region where a U.S. airstrike last Friday killed 17 civilians. No casualties were reported in today's attack.

The U.S. military says it is bringing Operation Sword to an end. It launched the offensive against insurgents in western Iraq eight days ago. About a thousand U.S. troops were involved.

Things are heating up in Southern California -- literally. Firefighters are trying to contain several wildfires this morning. The scattered blazes have burned more than 1,200 acres from San Diego County to Palmdale.

And to the forecast center now.

(WEATHER REPORT)

WALLACE: Chad Myers, I'm going to jump in there with you. Sorry to do that. We have a little more news just in to CNN about the 2012 Summer Olympic Games, and this will be a lot of sadness for people in New York City. New York is now the second city out of the running for the 2012 Olympic Games.

There's going to be, we know, a lot of sadness on the part of people here in New York City. A crowd gathering there, you see, in Rockefeller Center in Manhattan, monitoring what's going on today. You have New York City's Mayor Michael Bloomberg, who had been working very, very hard to get the Summer Olympic Games. It would be the first time New York City would host the Olympic Games. Also on hand is one of New York's senators, Hillary Rodham Clinton, as well as top athletes like Muhammad Ali.

But the word right now, New York City is the second city out of the running for those games in 2012. Moscow has also been eliminated in these early rounds of voting. That leaves three cities left. Those cities are Paris, London and Madrid. And if you've been following the story, the odds-makers are looking closely at Paris and London as the favorites.

We're expecting the official voting to be wrapped up and announcement about 7:45 a.m. Eastern. And, of course, CNN will be carrying that to you live.

And Jim Bittermann is monitoring it all in Paris right now.

Jim, what's the mood like there? Paris is still in the running.

JIM BITTERMANN, CNN CORRESPONDENT: Well, in fact, there's a big cheer that just went up here when it was announced that New York was out of the running, because New York was one of the very serious threats for Paris. A lot of people were very nervous about the New York bid, especially the way they handled it at the last minute with a Steven Spielberg film and Hillary Clinton there and Mayor Bloomberg making a very strong bid.

So, I think there was a lot of relief here when it was announced that New York is out of the running. Just a second ago, the crowd started shouting, chanting Paree (ph), Paree (ph), hoping that Paris will win this competition that's going on now.

It is really -- there's a lot at stake here for the city, economically for the region, a lot of things that are at stake. The city fathers estimate that for the region it could be as much as $30 billion in economic fallout from the Olympics.

So, a lot of people are watching this with a great deal of interest, and then just a lot of sports fans. We talked to just a few minutes ago, a young man in the crowd who said that it's just going to be great for this city to sort of build the enthusiasm in the city and also build up some of the areas of the city that have been neglected over the last few decades -- Kelly.

WALLACE: Jim, and talk to us a little bit. Why Paris and London? Why are those two cities really viewed as the favorites this time around? What's the thinking that's going into that speculation? BITTERMANN: Well, I think I can at least speak for London, I think, Kelly, and that -- or Paris anyway. I think that the prime reason that Paris is so far in front of others as a hopeful is the fact that a lot of the infrastructure is already in place. Paris has a good transportation system that's there. They are going to improve on it, but they don't really have to do a lot of improving.

Secondly, the big stadium that they'll need for the opening and closing of the Olympic Games and some of the events, that stadium is already in place. In fact, it was built for the World Cup back in 1998. And when they built it, they actually built it with the idea of attracting the Olympics at some point.

A lot of the other sporting venues are already in place, the Roland Garros stadium area.

Now, we just had another announcement here. No, there is just some cheer going up in the crowd here. I'm not sure what they're cheering about. But they're in the midst of voting as the crowd is watching this live television broadcast from Singapore.

So, in any case, Paris has a lot of the things that are necessary for Olympics already in place.

One of the things that make their bid economically attractive to the IOC fathers is the fact that they're only going to spend a relatively small amount, about $4 billion, in new construction, because so much of the Paris infrastructure is in place. And that means it's more likely that they'll be able to make an economic success of the games. And the Olympic Committee likes to see that, because they don't want to see cities driving themselves into debt when they're hosting the games -- Kelly.

WALLACE: All right, Jim, it's an exciting morning indeed. We'll be checking in with you throughout the morning here.

We're going to turn now, though, to a place where there's probably not a lot of happiness. Maggie Lake at Rockefeller Center in the heart of Manhattan.

Maggie, what's the reaction there when people learned New York City is out of the running?

MAGGIE LAKE, CNN CORRESPONDENT: Kelly, you can imagine a huge amount of disappointment here at Rockefeller Center. The crowd had gathered. The enthusiasm was really building when they heard that they made it through the first round and Moscow was defeated. A big cheer went up. They started chanting, "New York, New York." But that fell silent immediately once they realized New York was eliminated.

Many of the supporters and bid members have been here through the night. They were really feeling confident that New York's last push, some of the star power that was used overnight and the testimonials would sway the committee.

They thought if they made it through the first round, their chances actually might improve as well. That did not happen. A lot of long faces, very sad, people sitting on bleachers now. They worked for months and years, in some cases more than a decade, for the dream of bringing the Olympics to New York. In fact, that was their motto: "Let the dream begin." Well, it has ended a lot sooner than many of the folks here thought it would -- Kelly.

WALLACE: All right, Maggie, we'll be checking in with you.

We have more developments from the International Olympic Committee in Singapore. We're just learning that Madrid is now becoming the third city to be eliminated when it comes to who will host the 2012 Summer Games. Madrid, the latest city eliminated in this early round of balloting.

That leaves two cities left. Yes, just two cities left. It will either be Paris or London getting the chance to host those games in 2012.

A little factoid here for you. Paris has hosted the Olympic Games twice, but not since 1924. As for London, it has also hosted the games twice, but not since 1948.

So, Madrid and New York and Moscow are out. Paris and London are still in.

Well, this is all going to be covered extensively on "AMERICAN MORNING." We turn now to Soledad O'Brien to get a sense of what's coming up.

Hi, Soledad.

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

Yes, you know, we're going to follow up on that, of course, because of the big announcement we are expecting actually at 7:45 Eastern Time here. We're going to bring that to you live.

As you mentioned, some news coming out, three are out of the running, leaving it down to the big two, Paris and London. We'll figure out who will be the hosting the 2012 Olympics.

Also on "AMERICAN MORNING" this morning, we're going to take you live to Aruba. We continue to follow the Natalee Holloway case. New details about what happened that night that the teen disappeared. Two fishermen are now telling investigators what they saw on the beach in the hours before her disappearance. Her parents tell us that it was news to them until they heard it on CNN.

We're going to talk this morning with Natalee's mother and her stepfather about that; also, concerns about the recent release of two suspects in the case. You saw that press conference yesterday, Kelly. Oh, how heartbreaking was that.

So, at 7:40, we've got the big news for you about the Olympics. New York is out of the running.

WALLACE: I know. I'm disappointed.

S. O'BRIEN: But you still care, right?

WALLACE: Of course.

S. O'BRIEN: London or Paris?

WALLACE: I'm not playing favorites. I just thought it would be nice to have the Olympics here right on our doorstep in New York City. But, oh, well, it's not going to happen. Maybe 2016?

S. O'BRIEN: But we will find out where it is going to happen at 7:40, our first hour of "AMERICAN MORNING." That is actually just one hour from now. We'll see you then -- Kelly.

WALLACE: Soledad, we're looking forward to that. Thanks so much.

Much more ahead, though, still on DAYBREAK right after this. Don't go away.

(COMMERCIAL BREAK)

WALLACE: And welcome back to DAYBREAK.

In the Gulf of Mexico, Tropical Storm Cindy is fizzling, but the storm next in line is building strength. We're going to talk to you about that weather news in just a moment.

But we have some more news. As you know, we've been following the International Olympic Committee meeting and voting in Singapore to tell us who will host, which city will hold the 2012 Summer Games. Only two cities are remaining, Paris and London. Madrid, New York and Moscow have been eliminated, we understand.

And we now know that the International Olympic Committee has determined a winner. It will either be Paris or London. And that announcement will come about 7:40 a.m. Eastern Time.

So, you are watching live developments in Singapore. And, again, that announcement of which city, Paris or London, will host the 2012 Summer Games coming up at 7:40 or so a.m. Eastern Time on "AMERICAN MORNING."

Back, though, to another top story on this day, and that is the weather. We have been following Tropical Storm Cindy all throughout the morning.

Joining us now on the phone is Lieutenant Dave Roberts, and he is with the National Hurricane Center.

Lieutenant, thanks for joining us today. We appreciate it.

LT. DAVE ROBERTS, NATIONAL HURRICANE CENTER: Good morning.

WALLACE: So, give us a sense, lieutenant, of Tropical Storm Cindy right now. What are we seeing at this hour?

ROBERTS: Well, Cindy moved onshore in southern portions of Louisiana a few hours ago relatively close to Grand Isle, Louisiana. Right now, it's situated about 25 miles to the east of New Orleans on a northeastward track about 15-16 miles per hour, moving toward the Mississippi border.

The system still is a tropical storm, and observations from the surrounding area are still showing tropical storm-force winds.

There is relatively impressive rain band well to the northeast now moving over the Florida panhandle border. So, there is still some heavy rainfall associated with this system, as well as gusty winds.

WALLACE: Lieutenant, Chad Myers, our meteorologist, is joining us now -- Chad.

CHAD MYERS, CNN METEOROLOGIST: As I was just saying to our viewers a little bit ago, we have four counties under tornado warnings, Baldwin County in Mississippi. That includes Biloxi, also Washington and Mobile Counties here in Alabama.

And now as we move into these afternoon hours, I think the threat here is going to be of the tornadoes and the flooding. Is that how you're seeing it down there?

ROBERTS: Yes, that's correct. I still think with the gusty winds, it's still something that, you know, locals should be concerned about, particularly with the winds coming in out of the southeast. I noticed Dolphin Island still had sustained 50 knots, now down to about 40.

MYERS: What was your highest gust that you got with the storm?

ROBERTS: I think it was offshore we had -- one of the LSU platforms had a gust of 66.

MYERS: OK. So, not quite a hurricane, still a tropical storm, but obviously a big rainmaker for us and the wind-maker, especially as that ground gets saturated as well, that could blow over trees as well.

This is a wide-ranging storm, even though it's only being considered a tropical storm. What else can you tell us about what Dennis is going to bring?

ROBERTS: Well, Dennis is pretty close to becoming a hurricane as we speak. Right now, it's about 65 miles per hour. We did bump the intensity up last night.

In terms of the motion, it's been pretty consistent at a west/northwest direction about 16 miles per hour.

We coordinated hurricane warnings for Jamaica as well as the peninsula at Haiti, and also with the Cuban government we put up a hurricane watch for the southern-eastern portions as well. MYERS: Now, we're seeing the track that takes it up into the Gulf of Mexico. And officially, the Hurricane Center is putting this at a category 3 by Saturday afternoon. That's a very dangerous major hurricane.

ROBERTS: Particularly for this time of year. Definitely it's something we don't usually see, especially since this system was actually a tropical wave. The last time we saw something like this, of course, it wasn't a category 3, but you have to go back to 1961 to find something that developed this early in the season.

WALLACE: All right. Lieutenant Dave Roberts with the National Hurricane Center and Chad Myers. Thanks so much to both of you. Chad, we'll talk to you in a few minutes more as well.

Your news, money, weather and sports. It's about 47 minutes after the hour. And here is what is all new this morning.

It is President Bush's 59th birthday today. And he is spending part of it in Denmark, thanking the Danes for their support during the wars in Iraq and Afghanistan. Later, the president heads to the G8 summit in Scotland.

In money, former HealthSouth Corporation boss Richard Scrushy is not off the hook yet. The Securities and Exchange Commission is preparing to press its $800 million civil fraud case against him. Scrushy was acquitted in a federal criminal fraud case.

In culture, Miss Universe is hoping to be a role model for people in Africa. Canadian Natalie Glebova got an AIDS test while visiting a Johannesburg hospital. She said she hopes others will follow her lead and get tested as well.

In sports, Ray Allen is getting a lot of money to stay in Seattle. The guard agreed to a five-year, $85 million deal to remain a member of the Supersonics.

And another check of the forecast.

(WEATHER REPORT)

WALLACE: Well, if imitation is the sincerest form of flattery, General Motors should be very flattered. Ford and Chrysler have copied GMs latest incentive for you to buy a new car, truck or SUV.

Carrie Lee is here with more.

Hi -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Kelly. That's right. Ford is joining the party with what it's calling its Ford Family Plan. This is the latest deal here allowing customers to buy cars at employee rates with a few exceptions like the Mustang, which has done very well in terms of selling even without a lot of incentives.

Now, Chrysler announced on Friday that it would match the employee discount plan, which has been so successful for GM.

And GM itself yesterday extended its offer through August 1. Thanks to the plan, June was GMs best month in terms of sales in nearly 20 years with a sales gain of 41 percent over last year's numbers.

Ford, for its part, posted a small decline in June sales.

On a separate note, Ford has announced a deal with BP to recommend the company's gas for its 2006 models. The inside of the gas cap will suggest using BP gas. This is the first time a major carmaker has endorsed one gas company. An interesting idea, you know, a cool marketing deal, but we'll see if others may be follow suit.

WALLACE: Exactly. If it's a good idea that works, they likely will.

LEE: Well, we'll see.

WALLACE: What about the markets? How are they looking today?

LEE: The markets are looking a little bit mixed right now. Techs are looking lower. The Dow is looking higher. We had a pretty decent session yesterday despite the fact that oil crossed the $60 a barrel mark. The Nasdaq gained 1 percent. We'll see what happens at the 9:30 bell, a couple of hours to go.

WALLACE: All right, Carrie Lee with the "Business Buzz." Thanks so much, Carrie.

LEE: Sure.

WALLACE: It's great to see you.

Still to come on this Wednesday edition of DAYBREAK, there is disappointment in the Big Apple as the home of the 2012 Summer Olympic Games will be announced within the hour, and it is not New York City.

But first, a look at who is celebrating birthdays on this Wednesday, July 6.

(COMMERCIAL BREAK)

WALLACE: And good morning, Pensacola, Florida. A live picture there from affiliate WEAR-TV. Yes, you see it's a little wet there. Of course, maybe some remnants of Tropical Storm Cindy, but otherwise a nice day is getting under way in Pensacola, Florida, along Florida's Gulf Coast.

Welcome back. It is about 54 minutes after the hour. And here is what will be making news today.

A "TIME" magazine reporter and a "New York Times" reporter could get jail time today for refusing to reveal their confidential sources. Prosecutors want the information as they probe the leak of a CIA officer's identity. Bob Woodward reveals the secret inside story of Watergate's "Deep Throat." His book, "The Secret Man: The Story of Watergate's Deep Throat," is now out in stores. Woodward earlier confirmed that "Deep Throat" was former FBI official Mark Felt.

And finally, Angelina Jolie is an adoptive mother again. The actress is adopting a baby girl orphaned by AIDS in Ethiopia. Earlier, Jolie adopted a boy from an orphanage in Cambodia.

Well, as we've been following a story all morning long and telling about it, the International Olympic Committee has decided who will host the 2012 Summer Games. But it's still a secret. But we do know it isn't New York City.

We're going now to Miles O'Brien for a look at what's coming up just a few minutes from now on "AMERICAN MORNING."

Good morning -- Miles.

MILES O'BRIEN, CNN ANCHOR: So, yes, good morning, Kelly. Who do you think it's going to be?

WALLACE: I'm betting Paris.

M. O'BRIEN: I think there's big money on Paris right now.

WALLACE: Although London can pull off that upset. Who knows?

M. O'BRIEN: Well, I don't know. Andy Serwer is downstairs. There's an online betting capability. You can actually get in on this right now and bet for Paris, if you want. Now, your plans to sublease your apartment...

WALLACE: Yes.

M. O'BRIEN: ... gone, right?

WALLACE: All gone.

M. O'BRIEN: And those leftover...

WALLACE: You could probably have made some bucks there, yes.

M. O'BRIEN: I had some leftover Olympic t-shirts from Atlanta that I was going to sell here. Out. Definitely out.

WALLACE: It's not going to happen.

M. O'BRIEN: So, anyway, we move on in New York and go to Paris if you want to see the Olympics.

We have some disturbing news to tell you about this morning as well, details from 8-year-old Shasta Groene about what she says happened to her and her brother, Dylan, while being held captive by Joseph Duncan. And for the first time, new information that links Duncan to the scene of those triple murders inside that Idaho home in mid-May when we first heard about all of this. We're going to talk to the lead police investigator about that. It's a troubling story, Kelly, and that's one of the things we're looking at on "AMERICAN MORNING."

WALLACE: Miles, a troubling story indeed. We'll see you in about four minutes from now. Thanks so much.

M. O'BRIEN: All right.

WALLACE: Switching gears quite a bit, it's time now, Chad. You take it away.

MYERS: It's time for my favorite part of the day, the mug winner.

WALLACE: Mine too.

MYERS: All right, here are the questions and the answers from yesterday. What automaker yesterday announced changes that will improve the mileage of its second most popular model? And what is that model? That's the Honda Civic, up by 6 percent for the gas engine for next year. What world leader holds the G8 presidency this year? And that is Tony Blair, prime minister Blair there.

And the winner, the winner, Chris, Chris whatever your last name is because I can't pronounce that, from Beacon, New York. Congratulations, your mug is in the mail.

And now from our question mailbag of the day. Senator Bob Kerrey leads what organization that is concerned about Americans' grammar? And who is the U.S. Olympic Committee Chairman?

Go to cnn.com/daybreak. There is a link there. Submit your answers. We'll give you the winner tomorrow.

WALLACE: All right, Chad.

Much more ahead on DAYBREAK. A live report from London. London and Paris, the two cities in the running for the 2012 Summer Games. We'll be right back. Don't go away.

(COMMERCIAL BREAK)

WALLACE: And welcome back.

We want to go live now to CNN's Fionnuala Sweeney in London. London and Paris are the only two cities in the running right now for the 2012 Summer Games.

Fionnuala -- what is the mood there? Fionnuala, can you hear me? Fionnuala, Kelly Wallace here. Can you hear me?

FIONNUALA SWEENEY, CNN CORRESPONDENT: Hello there, Kelly. Sorry there for any delay.

WALLACE: Go right ahead. SWEENEY: I beg your pardon.

The excitement here is reaching fevered pitch that we're all speechless here, because it's just coming out to lunchtime. And, as you know, it's about 30 minutes from now we're expecting the results. And it all comes down to the wire between London and Paris. And this is no ordinary Olympic bid for London, or indeed for the Parisians, I would expect, because there is a huge historic rivalry between the two cities, and not helped necessarily by comments by French President Jacques Chirac at the weekend when he spoke about what he considered to be the unbelievably low standard of British cuisine.

Now, of course, he is in Singapore, where he's been lobbying for Paris. He flies to Scotland later today for the Gleneagles summit, which will be hosted by Tony Blair. Tony Blair is officially not making any comment about what Jacques Chirac said. But you can be certain that underneath all of the polite diplomatic language there is that huge rivalry between the two cities.

Win or lose, there will be a party here in Trafalgar Square in about half-an-hour's time.

Kelly -- back to you.

WALLACE: Exciting times indeed, Fionnuala. Thanks so much, Fionnuala Sweeney, reporting in London.

"AMERICAN MORNING" will have complete coverage with the official announcement expected about 7:45 a.m. Eastern.

From the Time Warner center in New York, I'm Kelly Wallace, in today for Carol Costello. "AMERICAN MORNING" starts right now.

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