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CNN Live At Daybreak

Return to Flight for Space Shuttle; Rove, CIA Leak; Iraq Suicide Attack

Aired July 13, 2005 - 06:29   ET

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

(WEATHER REPORT)
FREDRICKA WHITFIELD, CNN ANCHOR: Well, it is now T minus 9 hours and about 20 minutes for the space shuttle Discovery. The crew has been up for almost an hour now as they prepare to pilot the shuttle program back into space. Or could a delay be on the horizon?

CNN's Sean Callebs has more from the Kennedy Space Center.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice over): NASA is calling it a minor repair. Still, eyebrows were raised when technicians were forced to replace two protective tiles on the shuttle after a plastic window cover fell, damaging the tiles.

The space agency says the mishap is not embarrassing.

STEPHANIE STILSON, DISCOVERY VEHICLE MANAGER: I just think it's just one of those things that happened, and I'm actually very proud that we saw it and we caught it, and we were able to act so quickly.

CALLEBS: After focusing the past two-and-a-half years on the shuttle and its operating systems, anxious NASA managers are spending the last several hours leading up to the launch looking at the sky. With only a brief 10-minute launch window, bad weather could keep Discovery on the pad.

KATHY WINTERS, SHUTTLE WEATHER OFFICER: We're looking very closely at imaging, making sure that the vehicle can be seen by the ground cameras. And so, the mission management team will be paying close attention to the cloud cover in the area.

CALLEBS: Not just rain, wind and lightening, even cloud cover could be enough to scrap the launch. That's because NASA has more than 100 cameras poised to photograph the liftoff. The space agency needs near perfect weather to capture all of the necessary images and make sure debris doesn't harm the orbiter and flight STS-114.

EILEEN COLLINS, DISCOVERY COMMANDER: We're not going to stop working after STS-114 flies. We've got, you know, maybe another 28 flights left. So, we need to keep working on this. Are we ready to fly STS-114? Yes, I believe we are.

(END VIDEOTAPE) WHITFIELD: And don't forget to tune in to CNN for Discovery's launch later this afternoon. Miles O'Brien hosts our special coverage beginning at 3:00 p.m. Eastern.

The White House is maintaining its silence about President Bush's top political strategist, Karl Rove, and his alleged role in the leak of a CIA agent's identity. This case is two years in the making and still no concrete answers.

CNN White House correspondent Suzanne Malveaux has details.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): President Bush was asked directly whether he would carry out his pledge to fire anyone caught leaking, including his top political adviser, Karl Rove.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you very much.

UNIDENTIFIED MALE: Are you going to fire him?

BUSH: Thank you.

UNIDENTIFIED MALE: Are you going to fire him?

MALVEAUX: Mr. Bush did not respond. White House Press Secretary Scott McClellan was pummeled for a second day over whether he misled the public for the numerous statements he made over the last two years, insisting Rove wasn't involved in the leaking of the covert CIA agent Valerie Plame.

HELEN THOMAS, JOURNALIST: Has he apologized to you for telling you he is not involved?

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: Helen, I'm not going to get into any private discussions.

THOMAS: I mean, he put you on the spot. He put your credibility on the line.

MCCLELLAN: You all in this room know me very well. And you know the type of person that I am.

MALVEAUX: Rove's critics have seized on the issue.

SEN. JOHN KERRY (D), MASSACHUSETTS: The White House's credibility is at issue here. And I believe very clearly Karl Rove ought to be fired.

MALVEAUX: Questions about the Bush administration's credibility about intelligence on Iraq is how this controversy started. In his 2003 State of the Union address, the president uttered a 16-word sentence that had to be taken back.

BUSH: The British government has learned that Saddam Hussein recently sought significant quantities of uranium from Africa.

MALVEAUX: Former Ambassador Joe Wilson wrote that he was sent by the CIA to investigate whether it was true that Iraq was trying to buy uranium in Africa. Wilson concluded that the administration had twisted the intelligence to exaggerate the Iraq threat.

According to Rove's lawyer, rove then spoke to "TIME" magazine's Matt Cooper to downplay Wilson's accusations, making the point Wilson's wife worked at the CIA, and she authorized the trip.

MALVEAUX (on camera): The big concern at the White House now, how long this will remain a distraction and President Bush pushing forward his domestic agenda. Case and point, the president met at the White House with Republican and Democratic leadership over Supreme Court nominations and also energy legislation. Neither got very much attention.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

WHITFIELD: Another problem plaguing the Bush administration: alleged prisoner abuse and who is responsible. The Senate Armed Services Committee will hold a hearing today on Guantanamo abuses. FBI investigators reportedly have recommended the former commander at Gitmo be reprimanded for failing to oversee the interrogation of a high-value detainee who was allegedly abused. That's according to the Associated Press.

It reports Army Major Jeffrey Miller is currently stationed at the Pentagon in a position unrelated to prisoners. The head of U.S. Southern Command conclude that Miller did not violate any U.S. laws or policies. So, he was not reprimanded.

As we told you minutes ago, in Iraq a suicide car bombing. Among the dead: a U.S. soldier and several children.

Our Aneesh Raman joins us now from Baghdad with more on this -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Fredricka, good morning.

As you say, a suicide car bomb detonating in eastern Baghdad. At least 24 people were killed, some 25 others wounded. According to the Iraqi police, the majority of the dead are, in fact, Iraqi children.

It happened around 11:00 a.m. when a U.S. military convoy had stopped to interact with the kids, handing out candy and treats. At that point, a GMC truck was driving by and exploded, killing, as we say, a majority of children; also killing at least one U.S. soldier.

Now, we haven't seen a situation like this since September of last year when 34 children were killed after a suicide bomber detonated at the opening of a sewage plant.

The U.S. military is saying the children were explicitly part of the target for the bomber, and it just goes to underscore how brutal these attacks are and how serious the violence is here on the ground -- Fredricka.

WHITFIELD: All right, Aneesh Raman, thanks so much for that update from Baghdad.

News across America now.

A British teenager is in critical condition them after riding on the Twilight Zone's Tower of Terror at Disneyworld in Orlando, Florida. The 16-year-old's heart stopped beating shortly after she got off the ride. The ride simulates a haunted elevator. A 4-year- old died one month ago today after riding Mission to Space at Disney's Epcot Center.

A 4-year-old from Brockton, Massachusetts, was hospitalized due to a medication mix-up. The girl is recovering at home after she was given someone else's prescription. A local CVS pharmacy admitted it mistakenly gave the girl's mother medication to treat an irregular heartbeat.

One of Mexico's most dangerous criminals is back in a Mexican prison after 19 years on the run. Police arrested Alfredo Rios Gelena (ph) in Los Angeles. He was sent back to Mexico at the border near San Diego. Mexican authorities met him there to hold him for trial on murder and kidnapping charges.

Still to come on DAYBREAK, do you travel for business? You and your company could be paying too much for your hotel accommodations.

Plus, they prey on your fears and your wallet. Home repair scammers. We'll show you how to beat them to the punch.

Here's a look at what else is making news this Wednesday morning.

(COMMERCIAL BREAK)

WHITFIELD: Well, it's time now for a little "Business Buzz."

When checking out of a hotel, you may want to check your bill.

Carrie Lee is back to tell us more about hotel over-billing.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: And it happens quite frequently, according to one study done by Corporate Lodging Consultants. The group showed that over one year, one of their clients was over-billed on 11.6 percent of the more than 600,000 room nights it was billed. The overcharges amounted to $11.35 per night on average. And if you expand that to cover all business travelers, the overcharges would exceed $500 million.

Now, a separate study by American Express showed that most errors it found were in the hotel's favor. No surprise, right?

WHITFIELD: Of course.

LEE: Yes. Also, Florida's attorney general is suing four large chains for billing undisclosed surcharges.

So the lesson here, of course, is check your bill when you check out, Fredricka. A lot of people, especially when they're traveling on business, don't really do the fine print. Read the fine print. But that's something you certainly have to do.

WHITFIELD: Sure. And so often people are in a hurry, they want to make their flights, et cetera. Or maybe they did a little checkout, you know, in their room.

LEE: Exactly.

WHITFIELD: So, really, you've got to look through it thoroughly.

LEE: And they think, well, the company is paying for it, so maybe I won't scrutinize it as closely as I should.

WHITFIELD: Yes, but then you've got to file your expenses, so you know you want things to be right. Otherwise, you will be paying for it.

All right. How about a look at the futures?

LEE: Yes, things are looking mixed for today's session. In fact, that's what we saw yesterday. Now, oil prices are coming up above $60 a barrel once again. So that's helping to push some stocks down. But the S&P is close to a four-year high. So we'll see what happens at 9:30 when that opening bell rings.

WHITFIELD: All right. Thanks so much, Carrie.

Your news, money, weather and sports. It is now 42 minutes after the hour, and here's what's all new this morning.

NASA says it's a go. Space shuttle Discovery is set to lift off shortly before 4:00 p.m. Eastern today from the Kennedy Space Center. Some tiles knocked off near the tail were replaced on Tuesday.

In money, former WorldCom CEO Bernard Ebbers will be sentenced this morning in his $11 billion fraud conviction. That's coming after a federal judge denied his request for a new trial.

In culture, don't expect to read P. Diddy's memoirs anytime soon. The music mogul settled a lawsuit brought by Random House over his failure to write his life story. The publisher had paid him $300,000 for the book.

In sports, in the Tour de Lance -- oh, make that Tour de France, Lance Armstrong dominated the first mountain stage of the tour. Once again, he's wearing the leader's yellow jersey.

(WEATHER REPORT)

WHITFIELD: Well, still to come on DAYBREAK, one airline hopes to put you on the longest direct flight of your life.

And we all want to protect our investments, especially our homes. Sometimes that means saying no.

But first, a look at who is celebrating birthdays on this Wednesday, July 13.

(COMMERCIAL BREAK)

WHITFIELD: Welcome back. It is now 48 minutes after the hour. And here's what's making news today.

Tropical Storm Emily is gathering strength in the Atlantic Ocean as it heads toward the Caribbean. Forecasters expect the storm to become a hurricane overnight. And it's heading towards the Windward Islands.

Actor Michael J. Fox and Dana Reeve, widow of actor Christopher Reeve, will be on Capitol Hill today. They're testifying before a Senate committee in support of stem cell research. Both want federal funding to pay for embryonic stem cell research as a way to fight the diseases.

And American Airlines is planning the world's longest nonstop regular flight. The route would fly from Chicago to Delhi, India, a distance of nearly 7,500 miles. American says passenger and cargo traffic to India is growing quickly.

And we're focused on a much longer flight today. The space shuttle Discovery is about nine hours from liftoff.

Let's check in with CNN's Miles O'Brien at the Kennedy Space Center for a look at what's coming up on "AMERICAN MORNING" -- Miles.

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

Yes, we've got a busy morning ahead as the space shuttle Discovery is about nine hours away from its launch. We hope for a launch. The weather is a big concern here, although when you look at the pictures from the launch pad this morning, it's just a beautiful morning.

Of course, it is July, and it is Florida. And by about 4:00 in the afternoon local time there's a very distinct possibility we'll be contending with some thunderstorms in the area. So, we'll be watching that very closely. Other than that, NASA says all systems are go two- and-a-half years after the loss of Columbia and her crew.

We're going to be looking at this story from all angles today -- Fred.

WHITFIELD: And, Miles, you talked a little bit earlier about the delay in filling up in the fuel tank. Any new information on that? Why the delay, if that's going to be a significant problem or anything?

M. O'BRIEN: It turns out it's not going to be a big deal. That's why I sort of didn't mention it.

WHITFIELD: Oh, sorry about that.

M. O'BRIEN: It's got something -- no, no, I probably should have closed the loop for you.

WHITFIELD: I was so curious.

M. O'BRIEN: No, no, I do need to inform everybody out there who is wondering. There's a backup heater. They're going to fix the backup heater. It will delay the fueling up a little bit. But they have two hours of built-in delay time for just such an eventuality. The primary heater is still working. So, it's not really a big deal at this point.

WHITFIELD: OK. Well, that is good news. Appreciate it. All right, thanks, Miles.

And if you own your home, listen up. Some vicious scam artists are out to get you. Home scams are described as the other real estate boom.

"Money" magazine's Cybelle Weisser joins us live with what to watch for and how to protect yourself.

It's good to see you, Cybelle.

CYBELLE WEISSER, "MONEY" MAGAZINE: It's good to see you, too.

WHITFIELD: All right. Well, lots of us want to stay in our homes. It means you want to improve on your home. So, when someone comes knocking on your door and says, I can help you out. Why should folks be a little reluctant about saying yes right away?

WEISSER: Absolutely. That's a classic cold-calling scam. You know, in this market, most good contractors don't really need to go looking for business. They're backed up for months. So, if someone is soliciting you, you should really be suspicious of whether or not they're competent.

Often, if people ask for money up front, they may either not do good work, or they may not come back and do any work at all.

WHITFIELD: And what's this about those who will come and talk about the chimney, potential chimney problems that you may have, something that you can't necessarily notice, but they try to warn you? You say watch out for them.

WEISSER: Definitely. I mean, chimney repair is a big business, and you do need to take care of it. It can be very dangerous to homeowners. But the scamsters (ph) out there will tell you that you need a lot more work done than you really do. So, you should always get a second opinion. You can also call the National Chimney Sweep Guild. They can give you advice.

WHITFIELD: All right. And pest control.

WEISSER: Pest control, that's out of control. Again, this is a place where shoddy contractors won't use enough chemicals. They might not use the right chemicals. Or they might try to do inspections off- season when you don't really need them.

WHITFIELD: And convince you that you have a problem when you really might not have one.

WEISSER: You might not have one. So, learn the basics of pest control, gross as it is.

WHITFIELD: Oh, boy. All right Cybelle Weisser, thanks so much, of "Money" magazine. It pays to read about all of that stuff that could potentially happen to your home and you'll be a little bit better informed.

WEISSER: Thank you.

WHITFIELD: Thanks so much.

All right, let's check in with Chad and a chance to perhaps win a mug tomorrow morning.

CHAD MYERS, CNN METEOROLOGIST: You know, we have been so busy with the hurricane we haven't been able to do the mug question lately.

WHITFIELD: Yes.

MYERS: Well, it didn't get cancelled.

WHITFIELD: And people have been wondering why.

MYERS: It's still going. We still have mugs to give away.

WHITFIELD: We still have it.

MYERS: What is the official name of the space shuttle Discovery's mission today? And who is the president of the PBS? Those should be easy.

WHITFIELD: We've been talking about it for the past two hours.

MYERS: Submit your answers to CNN.com. CNN.com/daybreak. Please send them in. Click on there and there's a link to send your answers in when you go there.

Back to you.

WHITFIELD: All right, thanks a lot, Chad.

Well, Dennis hit Cuba especially hard. And you would think the island nation wants as much help as it could get to recover. Well, think again.

CNN's Havana bureau chief Lucia Newman explains.

(BEGIN VIDEOTAPE) LUCIA NEWMAN, CNN HAVANA BUREAU CHIEF (voice-over): For a poor country like Cuba, the economic and human toll inflicted by Hurricane Dennis was staggering. The government's tally: $1.4 billion worth of damage, equivalent to almost a whole year's worth of income from tourism, Cuba's main industry; 120,000 homes totally or partially destroyed; power and communications lines downed; and at least 16 people dead, the highest death toll in Cuba since Hurricane Flora struck in 1963.

Cuba's communist leader defiantly rejected $50,000 in humanitarian aid, offered by his archenemy, the U.S. government.

"We would never accept it. Even if they offered us a billion dollars, we'd refuse it," said President Fidel Castro.

Four years ago, when Hurricane Michelle razed the island, Castro asked for and got authorization from Washington to buy food and building materials from the United States at competitive prices. But with U.S.-Cuba relations now in the deep freeze, a proud Castro said he would only accept help from his friends, such as Venezuela's president, Hugo Chavez.

"Let the Americans instead lift their miserable blockade," said Castro in his marathon seven-hour TV speech, a speech many Havana residents missed because of electricity blackouts caused by an existing power crisis in the middle of the scorching summer, now aggravated by the hurricane.

"No electricity, no water, no gas. This place is a mess," complains Sandra Zamorra (ph).

(on camera.) So, while Castro boasts that his revolution can withstand this and many more hurricanes, lots of ordinary Cubans are at their wit's end in the middle of the scorching summer, crossing their fingers that another major storm forming in the Caribbean will give Cuba a miss.

Lucia Newman, CNN, Havana.

(END VIDEOTAPE)

WHITFIELD: And when we come back, more headlines and a look at your travel forecast. This is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

WHITFIELD: Business travelers listen up.

(WEATHER REPORT)

WHITFIELD: Our top stories now.

British investigators are questioning a man they arrested north of London in connection with those deadly mass transit terrorist attacks last week. They're also searching six homes. The investigation is now focusing on four men seen on closed-circuit television in a subway station before the explosions.

At least 150 people are dead and 800 more injured after a train collision in southern Pakistan this morning. Three packed passenger trains collided after one of them missed signals at a station.

"TIME" magazine reporter Matthew Cooper will testify this morning before a federal grand jury in Washington investigating the leak of a CIA operative's identity. E-mails from Cooper indicate White House Deputy Chief of Staff Karl Rove played a role. But Rove's attorney says his client is not threatened by Cooper's testimony.

From the CNN center in Atlanta, I'm Fredricka Whitfield. "AMERICAN MORNING" begins right now.

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