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CNN Live At Daybreak

Rage Over Rove; London Terror; New York Subway Security

Aired July 14, 2005 - 05:00   ET

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


FREDRICKA WHITFIELD, CNN ANCHOR: It's Thursday, July 14. Today London and Europe as a whole remember the victims.
Two hours from now, London's famed buses and taxis come to a halt. A pause and moment of silence to honor those killed in last week's terrorist bombings. We'll take you there live for the latest in the investigation.

Plus, a week after the attacks, is the safety of New York's subways and trains being ignored?

And the Rove affair. Sometimes it's not what people say about you, it's more like who says it. Our Jeff Greenfield will explain.

ANNOUNCER: From the CNN Center in Atlanta, this is DAYBREAK with Fredricka Whitfield.

WHITFIELD: Good morning, everyone.

More on the London terror investigation in a moment.

Also ahead, what grounded Shuttle Discovery? And how long before the next scheduled launch?

And the new faces in the Emmy races. We'll handicap the front- runners.

But first, "Now in the News."

In Baghdad, a little more than four hours ago, two suicide bombers struck a checkpoint at the heavily fortified Green Zone. One bomber was driving a car, the other wearing an explosives vest. Five people, including a suspected third suicide bomber, were wounded.

The hospitalization of Chief Justice William Rehnquist is prompting more questions about retirement. He's still being treated at an Arlington, Virginia, hospital this morning. He was admitted Tuesday with a fever.

A terminal at Minneapolis-St. Paul International Airport has reopened after being evacuated. Authorities say bomb-sniffing dogs detected suspicious smells in two vending machines, but nothing was found. Police say the dogs may have sensed fireworks residue.

Let's check in with Chad and yet another hurricane.

It has been upgraded from a tropical storm to a hurricane, right? CHAD MYERS, CNN METEOROLOGIST: Yes, exactly. Ninety miles per hour, so that makes it a Category 1 hurricane.

(WEATHER REPORT)

WHITFIELD: Thanks a lot.

Well, President Bush heads to Indiana this morning, where he'll visit the Indiana Black Expo, a corporate luncheon to talk economic security and home ownership, among other things. But will he be able to dodge another day of likely questions about his chief adviser Karl Rove's alleged involvement in outing a CIA operative?

National Democratic Party Chairman Howard Dean is pushing for Rove's firing. Listen to what he had to say last night in Wisconsin.

(BEGIN VIDEO CLIP)

HOWARD DEAN, CHAIRMAN, DNC: Now we're going to find out, Mr. President, if you'll keep your word. Who do you value more, Mr. President? Do you value intelligence operatives defending the United States of America, or do you value political operatives from Texas? We're going to find out.

(APPLAUSE)

Who do you value more, Mr. President, the security of the American people or your political cronies? Will you keep your word, Mr. President?

We're going to find out if the president of the United States will keep his word.

(END VIDEO CLIP)

WHITFIELD: Well, late last night, Karl Rove's attorney issued a statement asserting that Rove has done nothing wrong and will not become a target after the special prosecutor has reviewed all the evidence. But as we hear from our White House Correspondent Dana Bash, it's what the president said or didn't say that has Washington buzzing.

(BEGIN VIDEOTAPE)

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): There was Karl Rove, right behind his boss, waiting for the inevitable questions about his alleged role in outing a covert CIA agent. Two queries, no answer.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're in the midst of an ongoing investigation. And I will be more than happy to comment further once the investigation is completed.

BASH: Some GOP advisers were surprised the president did not offer his closest adviser and friend a vote of confidence. The White House insisted he wasn't hedging his bets, he wasn't asked. SCOT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: Every person who works here at the White House, including Karl Rove, has the confidence of the president.

BASH: But this president doesn't wait for specific questions when he has something to say. The current tight-lipped strategy is a remarkable shift. Mr. Bush showed no hesitation earlier in the investigation, including this exchange in September 2003.

QUESTION: Yesterday we were told that Karl Rove had no role in it. Have you talked to Karl and do you have confidence in him?

BUSH: Yes. Listen, I know nobody -- I don't know of anybody in my administration who leaked classified information. If somebody did leak classified information, I'd like to know it. And we'll take the appropriate action.

BASH: But with "TIME" magazine's Matt Cooper now testifying he and Rove discussed the issue...

MATT COOPER, REPORTER, "TIME": We worked out this waiver agreement with Karl Rove's attorney last week.

BASH: ... the White House is pulling back, letting the Republican National Committee distribute talking points to allies and Congress.

REP. DEBORAH PRYCE (R), OHIO: I think what the Democrats are doing with Karl Rove is just another politically motivated part of their agenda.

BASH: Top Bush aides insist they're not distracted by all this, but it drowned out what the president wanted to talk about.

BUSH: OMB is going to announce that the 2005 deficit is $94 billion less than previously expected.

BASH: And Rove questions are following administration figures around the world. The first lady faced one in Africa. The secretary of state as she traveled home from Asia.

MIKE FELDMAN, FMR. CLINTON OFFICIAL: Most of the administration's public -- public faces are out there trying to change the subject. But when -- when an issue is this red hot, and when it remains unresolved, it's very difficult to do so.

BASH (on camera): Even Bush loyalists admit what they do know about this investigation pales in comparison to what they do not. And that's the source of this newfound abundance of caution. As one put it, "As powerful as Karl Rove is, defending our guy means protecting the president, period."

(END VIDEOTAPE)

WHITFIELD: Well, coming up in about a half an hour, our Jeff Greenfield takes a closer look at how Republicans and Democrats are spinning the Rove story.

One week ago today, terrorist bombs killed in London. Two hours from now, Britons and other Europeans will observe two minutes of silence to honor the 52 people killed in the attacks.

Police confirm the blasts were carried out by four suicide bombers. Officials are now looking for a fifth person.

For the latest on the investigation, we go live to CNN's Jim Boulden in Leeds, England -- Jim.

JIM BOULDEN, CNN CORRESPONDENT: Hi, Fredricka.

Yes, I'm standing in the Millennium Square in the center of Leeds, where in less than two hours many of the residents here will gather for that very important two minutes silence. But as that happens, the police continue to search through at least five or six homes.

The homes were raided on Tuesday when it became clear that those four suicide bombers came from this area. The police have been going through these houses very carefully, very detailed searches to see if they can find out any reason why these boys took -- took the actions that they did.

Now, the people of Leeds have woken up this morning to some very painful pictures in the press. These are pictures of three of the four young men, pictures of boys in school when they were 10, 11 years old, pictures of a 30-year-old man who was getting married. This 30- year-old man worked at one of the local primary schools, one of the local elementary schools, and he had a child himself. Yet, for some reason, he also became one of the suicide bombers.

A little bit of news on the investigation. Last night, police raided a home north of London in an area called Aylesbury in Buckinghamshire. This home is believed to have had some connection to a car found at the Luton train station.

Now, Luton train station is where the bombers are believed to have left this area, driven down towards London, and taken a train from Luton to London. They found a car in that area that had explosives, and they raided that home overnight. But they say that they did not find any explosives in that house.

Now, the people of Leeds talk about the fact that they have solidarity in this area, that the -- that the Muslim community, the Christian community and the Hindu community have always had good relations, and that they're working particularly hard on those relations at this very moment. Earlier today I spoke to the bishop of Leeds, the Reverend Arthur Roche, and he talked about how Leeds is trying to come together about dealing with the bombers.

(BEGIN VIDEO CLIP)

BISHOP ARTHUR ROCHE, LEEDS BISHOP: I think you will find that at 12:00 today at Millennium Square here in Leeds, together with all the civic and church leaders, people will gather out of a sense of great desire and yearning for that peace and for that harmony and for that forgiveness.

(END VIDEO CLIP)

BOULDEN: Now, the people here, Fredricka, I have to say, are still very shocked and saddened. And it may be very difficult for them to find that forgiveness in their heart. But many people here in the neighborhoods where the boys grew up knew the boys, and they are grieving for the three young men that have been named. They're trying to -- they're finding it very difficult to figure out how they went from being sporting boys to bombers -- Fredricka.

WHITFIELD: And Jim, you talk of these suspects, of the suicide bombers all being British nationals. But aren't all of them also of Pakistani descent? And so my question is, people in the Muslim community, how concerned or worried are many of them that all may be persecuted as a result of these suicide bombers' activities?

BOULDEN: Yes, this issue comes up every time something like this has happened, every time there's been an arrest of a Muslim expected of terrorism. Of course, we've never had suicide bombers before in the U.K., and so this has been particularly difficult for the Muslim community.

And I have to say that when this first happened, all the Muslim leaders in this country came out and condemned the acts. There was no question about that. And now they are talking to the other Muslims in the community and saying you must come out and condemn the acts, you also must do your part to try to root these people out. There can no longer be a wall of silence about who it is that is getting these young men to do these things. And the Muslim community is trying very hard to do that.

There have been very few reprisals, I have to say. And in Leeds, the community does remain very united.

WHITFIELD: Jim Boulden in Leeds, England. Thanks so much.

Well, could it happen here? That's the fear for many Americans following the London bombings. The new chief of Homeland Security has announced sweeping reforms, including new technology to protect the nation's transit system from attacks.

CNN's Deborah Feyerick looks at just how vulnerable the New York transit system is.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): The death toll in London was high. If a similar attack happened in New York City, it could be much higher.

NICHOLAS CASALE, FORMER MTA SECURITY OFFICER: We did studies that would estimate about 19,000 casualties. FEYERICK: Nicholas Casale is a former cop. Two years ago, he was one of those in charge of security for the Metropolitan Transportation Authority. The MTA is a state agency that runs most of the city's trains and subways.

CASALE: Should terrorists breech the underwater tunnel, it would be a total collapse. That failure would allow billions of gallons of water to come rushing in. There would be no way to stop this.

FEYERICK: Casale says it's a vulnerability that should have and could have been fixed by now. He accuses the MTA of ignoring recommendations developed by the Army to reinforce tunnels and install flood gates and sensors.

CASALE: The federal government and state gave them $600 million in aid to secure the system. Let them explain to New Yorkers, and all Americans, how the most vital infrastructure is unprotected.

FEYERICK: That $600 million was allotted after 9/11. So far, less than 10 percent has been spent. But the MTA defends its efforts, saying it has spent $200 million of its own money to hire 200 police, install surveillance cameras and biochem detectors.

Ron Masciana is deputy chief in charge of MTA security.

RON MASCIANA, DEPUTY CHIEF OF SECURITY, MTA: I guarantee you that we're doing everything humanly possible to ensure the safety and security of our customers, of our employees and of our infrastructure.

FEYERICK: Casale is no longer with the MTA. He was fired after he uncovered corruption at the agency. He's suing for wrongful termination.

An MTA spokesman refused to comment on that matter.

(on camera) Is it fair to say that the MTA feels that you acted as quickly as possible in terms of assessing how that $600 million should be spent?

BRIAN DOLAN, MTA SPOKESMAN: Yes. We acted wisely, prudently and as -- as aggressively as possible.

FEYERICK: The Army, which developed the original security plan, signed a contract last June to help the MTA. An Army engineer says they have yet to be given the go ahead.

ANTHONY ANANIA, U.S. ARMY ENGINEER: I can't say specifically why we weren't engaged more fully, other than the fact that there are some differences in the way the military or the DOD acts.

FEYERICK: Without giving details, the MTA says it plans to begin spending the bulk of the $600 million and improve tunnel infrastructure by the end of this year, plans that could still take years to complete.

Deborah Feyerick, CNN, New York. (END VIDEOTAPE)

WHITFIELD: Well, stay tuned to CNN day and night for the most reliable news about your security.

Still to come, a neighborhood faces off with police after a hostage standoff leaves a toddler and her father dead.

Brad Pitt gets diagnosed with a serious illness after complaining of flu-like symptoms. We'll update you on his condition.

Prime-time Emmy Award nominations are out this morning. We'll get a preview of some of the likely nominees.

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

(COMMERCIAL BREAK)

WHITFIELD: Welcome back to DAYBREAK.

Your news, money, weather and sports all straight ahead. It's now 17 minutes after the hour, and here's what's all new this morning.

It's one week after the London terrorist bombings that killed 52 people and wounded 700. Police are looking for a suspected mastermind. They say all four suspected bombers were British nationals, and all died in the blast.

Billy Graham has decided not to hold a crusade in London. He says the decision was made before last week's bombings. The ailing evangelist cites his own health and that of his wife's.

In money, former WorldCom CEO Bernard Ebbers has been sentenced to 25 years in prison for his part in the accounting fraud that sent the company into bankruptcy. It's the longest sentence for any executive accused of corporate fraud.

In culture, Brad Pitt is back home following a short hospital stay. He was diagnosed with viral meningitis after first complaining of flu-like symptoms. Pitt had just returned from a trip to Africa, but his spokeswoman says she doesn't know if that was related to the illness.

In sports, the NHL and its players finally reached agreement on a new deal. The deal includes a salary cap, a reduction in current salaries, and a mandated break for the 2006 Olympics. Last season was canceled after the two sides couldn't agree.

And in weather -- Chad.

(WEATHER REPORT)

WHITFIELD: All right. Thanks so much, Chad.

Growing rage in Los Angeles this morning following the police shooting of a toddler who was being used as a human shield by her armed father. Residents and police had an exchange of words overnight. The demonstration followed official confirmation that the child died of a single gunshot wound to the head and that the bullet was fired by a police officer.

CNN's Peter Viles brings us up to date.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): Suzie Lopez was not yet two when she died in a hail of gunfire in this small corner of her father's office. Now the coroner says the very same police who were trying to save her fired the fatal shot.

CHIEF WILLIAM BRATTON, LOS ANGELES POLICE: It is with great regret as it relates to the -- the death of this young child that it appears that our officers, while engaged in their lawful duties, may have in fact taken her life.

VILES: Authorities tell CNN the girl was killed by a single bullet to the head, fired from a police rifle. Police say ultimately Suzie's father, Raul Pena, is to blame. He's the one who held her hostage inside his garage, used her as a shield, police say, threatened to kill her, fired 40 rounds from a .9 millimeter handgun at police, even shot at his other daughter, a teenager, when she escaped.

After nearly three hours, S.W.A.T. officers decided to storm the garage to save the little girl. But in a shootout, they killed both the father and the toddler.

ASST. CHIEF GEORGE GASCON, LOS ANGELES POLICE: We have S.W.A.T. officers that are having tremendous emotional problems, that they are going through therapy. We have some people that we don't know whether they'll be able to come back, to be honest with you, because of the emotional distress.

VILES: The little girl's family has been critical of police tactics.

LUIS CARRILLO, LOPEZ FAMILY ATTORNEY: That is the real tragedy here. A little angel, an innocent baby, a good baby, was killed by police bullets.

VILES: L.A. Mayor Antonio Villaraigosa, on the job less than two weeks now, is appealing for patience. But the emotional impact of this episode is already being felt by members of the LAPD. This is the first time in nearly 40 years and nearly 4,000 hostage standoffs that an LAPD S.W.A.T. team has ever shot and killed a hostage.

Peter Viles, for CNN, Los Angeles.

(END VIDEOTAPE)

(COMMERCIAL BREAK) WHITFIELD: Hey, Chad. Well, it appears former WorldCom CEO Bernard Ebbers isn't only catching it from a federal judge. You know he got a 25-year sentence.

MYERS: Right.

WHITFIELD: He's also catching it apparently from Jay Leno. Listen to this in our "Late Night Laughs" segment.

(BEGIN VIDEO CLIP)

JAY LENO, "THE TONIGHT SHOW": The former WorldCom executive Bernie Ebbers got sentenced to 25 years in prison today for running the biggest corporate fraud in history.

(APPLAUSE)

There you go. Amazing. This guy -- the judge says this guy deceived more people than the padded bra. You know, it was just awful. It was just horrible.

UNIDENTIFIED MALE: That's a lot of people.

LENO: And that's a lot of people.

(END VIDEO CLIP)

WHITFIELD: That's cold-blooded, Chad.

All right. Well, a little time now for our DAYBREAK "Eye Opener."

Guess what? It took Phoenix firefighters time and technology to rescue a 14-year-old dog from a front-yard sinkhole. The pooch was stuck underground overnight in an old septic tank, and the rescuers finally had to resort to using a remote camera to locate and lasso the dog.

And look, a happy reunion.

MYERS: Now from dogs to cats.

WHITFIELD: Oh, yes. Well, they're not the only ones getting stuck. If the dogs do it, the cats got to as well.

This one fell in a storm drain in Florida, and that sent apparently a lot of folks quite worried. Firefighters and sewer workers came to the rescue. They flushed the feline out of a hole with a high-pressure hose.

MYERS: And you know how much cats love water, huh?

WHITFIELD: Oh -- woo. You know that cat was angry -- and happy at the same time.

MYERS: I guess so. WHITFIELD: All right.

Well, water was a part of the problem for another woman, an Illinois woman. Rose Marie Cook (ph) got this water bill for more than $74,000. It seems she was charged for using 10 million gallons of water in one month. And as it turns out, the mistake was caused by a broken water meter.

Of course the city gave...

MYERS: From 33,000 to 208,000 cubic feet.

WHITFIELD: Yes. Yes, you know, it makes no sense. Surely there's got to be a problem. Well, thankfully, Mrs. Cook got a break, and she gets a free month of water and sewer service.

MYERS: Oh, well she can use all she wants now.

WHITFIELD: That's right. And they don't even dock it.

All right. Talk to you again soon, Chad.

MYERS: All right.

WHITFIELD: Here's what's all new in the next half-hour. Some dare call it treason, but as CNN's Jeff Greenfield will tell us, the White House isn't calling the political flap over Karl Rove anything at all.

Plus, Houston, we have a problem. A simple fuel gauge is giving shuttle engineers gas pains. Miles O'Brien will explain.

(COMMERCIAL BREAK)

ANNOUNCER: From the CNN Center in Atlanta, this is DAYBREAK with Fredricka Whitfield.

WHITFIELD: Good morning again, everyone. Thanks for waking up with us. And welcome to the second half-hour of DAYBREAK. I'm Fredricka Whitfield, in today for Carol Costello.

Coming up in the next 30 minutes, with Karl Rove in the middle of it all, the political spin cycle is working overtime.

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