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CNN Live At Daybreak

Teen Suspected of Killing Girlfriend's Parents Arrested; Condoleezza Rice Brokers Deal on Gaza Borders; Branding Baltimore; Princess to Pauper

Aired November 15, 2005 - 06:29   ET

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

CAROL COSTELLO, CNN ANCHOR: A teenaged boy accused of killing his girlfriend's parents in Pennsylvania may have an extradition hearing as early as today. Eighteen-year-old David Ludwig fled with 14-year-old Kara Borden. They were captured in Indiana some 600 miles away after a massive manhunt.
(BEGIN VIDEO CLIP)

CHIEF RICHARD GARIPOLI, WARICK, TWP. POLICE: They are both OK. And we are working with the Indiana state police to get them back here, so that proper jurisdiction can take over.

(END VIDEO CLIP)

COSTELLO: In Pennsylvania, David Ludwig faces two counts of criminal homicide. But it's still unclear whether his girlfriend was abducted or went with him willingly.

Joining us by phone to help sort things about is reporter Brett Lovelace. He's with the "Intelligencer Journal" in Lancaster County, Pennsylvania.

Good morning, Brett.

BRETT LOVELACE, LANCASTER "INTELLIGENCER JOURNAL": Good morning, Carol.

COSTELLO: Are police any closer to figuring this out?

LOVELACE: Last night, Carol, around 6:00, a team of detectives from Lancaster County arrived in Indiana, and they met with David Ludwig and Kara at the Indiana state police barracks.

And whether they interviewed them or not is not clear yet. They did have some initial contact with them. That was still being negotiated as of last night. But the thought was to get both Ludwig and Kara back here in Pennsylvania as soon as possible.

COSTELLO: A Subway worker, a fast food worker, spotted these two. He reportedly said that Kara's eyes were swollen when he saw the two in the restaurant, and she had been crying. Have you heard any more about that?

LOVELACE: That was some conflicting reports that came out late yesterday morning. And the source of that report really resulted in the Pennsylvania state police here switching the Amber Alert to focus on Clinton County, Pennsylvania, whereas at the same time in Indiana the troopers there were acting on a tip from a truck stop and were chasing down Ludwig in the Volkswagen. So, by all accounts, that report of the sighting in Pennsylvania was erroneous.

COSTELLO: Gotcha. Kara's brother and sister in the house at the time of the murder. They supposedly heard this alleged killer call her name, and then he took Kara with her. Aren't they able to shed any light on whether she went willingly or not to police?

LOVELACE: Well, both of those siblings were hiding in different rooms in the house when Kara and David left the house. So, they at that point were just petrified with fear, having seen -- one of the girls had seen her father shot and killed. She had heard the second gunshot, which killed her mother.

The younger brother who fled the house first went over to a neighbor and had them call 911. And then the sister followed.

It was mass confusion. They really weren't sure what was being stated at that point.

COSTELLO: The suspect, 18-year-old David Ludwig, what can you tell us -- I mean, we've heard he dressed in black. He was kind of Goth. He had guns. What can you tell us about him?

LOVELACE: Well, he lived in a house only about two miles from where Kara lived. His parents were church-going people. His two sisters also were church-going people. It seemed like the family had strong faith. By all accounts, he was just a normal teenager. No signs of violence.

He did have access to a large amount of guns, because his father was a gun collector. He had a lot of handguns and rifles, which the police had seized during their raid of that house on Sunday night.

But by all accounts, they were just a regular family.

COSTELLO: Is his father being cooperative in this investigation?

LOVELACE: The Ludwigs both are being very cooperative. And he was initially trying to point the police in the possible directions that David may be headed to. He initially said that he could be going to a hunting cabin in the Pennsylvania mountains. When that turned out to be -- was checked into, weren't there, then they thought maybe he was headed to Minnesota to stay with some relatives of his there. They've been very cooperative.

COSTELLO: How long had he been going out with Kara?

LOVELACE: They had been seeing each other since about May. So about six months.

COSTELLO: So, so many questions yet to be answered. Thank you so much for joining us this morning. We sure appreciate it, Brett. And he's gone. Thanks so much. In other stories across America this Tuesday, Virginia police not only know who the so-called Cell Phone Bandit it, early this morning they nabbed her. We told you about this last week. Pictures from several bank robberies showed the woman talking on her cell phone during the robbery. Police arrested 19-year-old Candice Rose Martinez (ph) and two men just about three hours ago. We don't know if she was talking to those three men on the phone.

A Dallas, Texas, grand jury decided not to indict the driver of a bus that caused fire during the Hurricane Rita evacuation. Twenty- three nursing home patients died in that fire. The driver could still face immigration charges since he's in the country illegally. Investigators say they'll now look at the company that owned the bus and the people that serviced it.

The rejection of the so-called morning-after pill was unusual. According to a congressional report, the FDA may have rejected easier access to the pill without seeing all of the science. The FDA says they acted properly, while critics say the decision may have been politically motivated.

Have you ever walked out of a restaurant because of rowdy kids or loud talkers? Then you'll want to stick around.

Soledad O'Brien joins us now.

SOLEDAD O'BRIEN, CNN ANCHOR: Yes, sometimes, and they're my own children. I think, 'Should I just leave them here, because they're loud and they're rowdy?'

In all seriousness, this is what we're talking, Carol, this morning. So, the guy who owns the Taste of Heaven restaurant in Chicago, it's like a bakery. Well, see this little sign here? He put that sign up, and it says, as you can see, you have to behave and use your indoor voices when you come to his bakery/restaurant.

Well, was that not a tempest in a teapot. Parents were outraged. Other parents thanked him and said that they were sick of the horrific behavior of some of his smallest clientele.

We're going to talk this morning to the owner, who says his business has tripled since he posted that little message. We'll chat with him about what kind of impact he's had on the folks in Chicago as well.

Well, also this morning -- drum roll, please. How as that?

COSTELLO: Great.

S. O'BRIEN: Thank you. Thank you so much. Sanjay is going to join us live. You know, we've been talking about the "New You Resolution" for 2006. Now, this time we're doing three teams. Each team has two people. So, six people overall. Today we announce who won. Who was picked to remake their lives in 2006.

COSTELLO: Great! S. O'BRIEN: (INAUDIBLE) are crossing our fingers. We're a team.

COSTELLO: How are you guys going to improve your lives, though? I mean, what's your stick?

S. O'BRIEN: Our stick is what? You've got two people. He eats scones on the set, and I eat bacon. What more need I need to say?

COSTELLO: I can attest to that.

S. O'BRIEN: And we need exercise. We need to be healthy. You know, I don't think Sanjay is going to pick us. He never picks us.

(CROSSTALK)

COSTELLO: I'm telling -- I have to tell this to our viewers, because Soledad eats literally a bowl of bacon each morning.

S. O'BRIEN: Yes, and what's wrong with that?

COSTELLO: It's sickening. And you're still thin!

S. O'BRIEN: And I'm not even on Atkins, because then I go have a scone, too. Ergo my problem.

COSTELLO: OK. Well, I hope you guys make the team then. Thank you, Soledad.

S. O'BRIEN: We're not going to make it. But, you know, we're going to announce who does.

COSTELLO: Cool.

S. O'BRIEN: We'll see you then.

COSTELLO: Still to come on DAYBREAK, a rare breakthrough deal is announced in the Middle East. But will it repair the road to peace?

And a storybook romance in reverse. This princess is giving up her crown. But why?

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

(COMMERCIAL BREAK)

COSTELLO: We're following a developing story. Secretary of State Condoleezza Rice's role as marathon mediator pays off. She helped negotiate a key border crossing between the Israelis and the Palestinians -- territories I should say, between Israeli and the Palestinian territories. The announcement comes a little more than two hours ago.

Guy Raz in Jerusalem. He has more details for you.

Hello, Guy. GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.

The secretary of state lending her considerable personal prestige to breaking a two-month-old deadlock between Palestinian and Israeli negotiators over the fate of key border crossings between the Palestinian Gaza Strip and the outside world.

Now, the secretary postponed her departure from the region and held marathon talks through the night with Palestinian and Israeli official. And she managed to bring about an agreement with the two sides.

Just a few hours ago, she was able to make that announcement. Let's take a listen.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: This agreement is a good step forward. With the international community, Israel and the Palestinian Authority must keep working hard to make these measures work in practice. As they are implemented, trust can grow.

Prime Minister Sharon and President Abbas have shown real statesmanship in making the decisions that led to this agreement.

Meanwhile, our commitment to security is strong, as always.

(END VIDEO CLIP)

RAZ: Now, Carol, since the Israeli government withdraw its soldiers and settlers from the Gaza Strip after 38 years of occupation there that happened, of course, this past summer, those border crossing and that key border crossing, the Raffa (ph) terminal between Gaza and Egypt, has been sealed and shut. And since that time, Israeli and Palestinian officials have been at loggerheads really over how to reopen that border.

The Israelis were concerned that without proper supervision it could be used as a transit point for weapons smugglings -- weapon smuggling and armed militants. Those fears apparently have now been allayed.

Palestinian security officials will man the Palestinian side of the border, Egyptian officials manning the Egyptian side, and international observes will also be involved.

Now, cameras will be installed, which will enable the Israelis to monitor that crossing without actually having a physical presence there.

Second, and perhaps just as significant, an agreement over transit between the West Bank and Gaza. Those two areas, of course, are divided by Israel. And so, in about a month's time bus routes, bus convoys will begin enabling Palestinians living in Gaza and the West Bank to travel back and forth. The Bush administration believes these are very important achievements, which will help revive Gaza's economy and could potentially prevent a new outbreak of violence here in the region -- Carol.

COSTELLO: Guy Raz reporting live from Jerusalem this morning.

Your news, money, weather and sports. It's 6:42 Eastern. Here's what's all new this morning.

President Bush landed in Japan about two hours ago, the first leg of his four-nation Asian trip. He'll also visit South Korea, China and Mongolia.

In money news, video game giant Electronic Arts is dropping the price on some of its games. The move is seen as a way to spark sales in an otherwise soft market.

In pop culture, there will be no second season for Martha Stewart's "Apprentice." Some reports say the decision was made due to low ratings. But producers say there was never a plan to bring Stewart back for round two.

In sports, New York Yankees third baseman Alex Rodriguez is the American League's most valuable player. Rodriguez edged out Red Sox slugger David Ortiz to win his second MVP award. The National League names its MVP today.

(WEATHER REPORT)

COSTELLO: Still to come on DAYBREAK, whose line is it anyway? One city tries to come up with a brand new way to sell its image to you.

And from princess to pauper. As of today, this young woman gives up her royal lifestyle all in the name of love.

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

(COMMERCIAL BREAK)

COSTELLO: Doesn't that make you just want to jump on a plane and head for the ATL? For the un-hip, that's plain old Atlanta, Georgia. The city's mayor launched a $4.5 million campaign last month to brand the city for tourists and business people. The new theme song that you just heard is part of that effort. And, of course, Atlanta is a beautiful city just looking at it.

Atlanta is not the only place trying to jazz up its image. Check out this call to action from the acting governor of New Jersey. He's been asking for suggestions about a new state slogan. Some of the responses: New Jersey, you've got a problem with that? New Jersey, where the Martians landed.

In case you have any bright ideas, forget about it. The deadline was yesterday. Now, of course, New Jersey's slogan is "it's not what you think." That's why they want to change it.

In Baltimore, Maryland, they're just getting started with their slogan search. The city has hired some high-powered image consultants to come up with a branding strategy to change negative perceptions about the city.

Hayes Roth is the vice president of worldwide marketing for Landor Associates, the company hired to build that new brand.

Good morning.

HAYES ROTH, V.P., LANDOR ASSOCIATES: Good morning.

COSTELLO: That is a tough job.

ROTH: Well, but it's an interesting job, and it's a great city. So, we look at it as a wonderful challenge.

COSTELLO: Why is it so important to have a slogan for a city? I mean, does that really bring in more tourists?

ROTH: Well, the "s" word is -- we've got about to be careful about it. It's not about a slogan. It's about an overall brand. And no brand is just a logo or just a slogan or just any one thing. It's a combination of elements that comprise a brand experience.

COSTELLO: So, really Baltimore is a piece of merchandise that you want to sell.

ROTH: That's a little crass.

COSTELLO: Well, you've got to call it like you see it.

ROTH: No, it's actually the ultimate brand experience. Any city -- we've done this for a number of places, Hong Kong and others. And this is actually about creating a credible positioning for an organization. In this case, a city. And to have it resonate, so that everything that they do in terms of (INAUDIBLE), marketing or talking about themselves in any way has sort of a central theme.

COSTELLO: OK. So, I lived in Baltimore for a time, and I loved the city. It's a beautiful city. The architecture is wonderful. The seafood is great. The crab cakes, the -- it's just awesome. But the image you have of Baltimore is from watching crime shows on television, like homicide on the streets. The image you have is like crack addicts all over the city infesting every alley.

ROTH: Well, I think the good news here is that the product is far better than images that you described. It's actually a wonderful place. And all of the research that we've done over the last six months tells us that once people go there, just as you did, they actually have a much better experience than they thought and would like to go back.

So, our challenge is to make that part of the Baltimore experience resonate and come forth.

COSTELLO: But how can you compete against television shows? In fact, there's a television show still on that portrays Baltimore as a crime-ridden place. How can you combat that image that has been so pervasive to the public?

ROTH: I would say New York has done a pretty good job of getting around. We've had our share here with every possible kind of thing. And I think it's really about you don't change images overnight. But what you can do is at least come up with central idea about which you can build a whole image. And as I said, it's not one thing. It's a...

COSTELLO: OK. Well, let's take a look at some of the great things in Baltimore. I mean, you could call it the "charmed city," but that really didn't work, because...

ROTH: They tried.

COSTELLO: What does that mean? Nothing. But, look, we're looking at Camden Yards...

ROTH: Right.

COSTELLO: ... which is great. We also have the Inner Harbor. As I said, great seafood. Edgar Allan Poe is buried there.

ROTH: Yes, some great history.

COSTELLO: The Babe Ruth Museum is there.

ROTH: Right.

COSTELLO: So, what do you concentrate on?

ROTH: Well, that's the challenge is how do you winnow away all of the different things? What we look forward is to come up with something that's differentiating and relevant. It's tough when you've got four or five other major cities in the East. So, you can't just go to the history route. They have great history, but so does New York and Washington, D.C.

COSTELLO: And you can see I love Baltimore.

ROTH: It's been done.

COSTELLO: And you can't do New Jersey. New Jersey's was, "it's not what you think."

ROTH: Yes. Actually there have been worse ones. (INAUDIBLE) over was the one that they were trying to go towards. But they have a new governor. Perhaps there will be a different management.

COSTELLO: You never know. So, give us a test slogan for Baltimore.

ROTH: Oh, no, I can't do that.

COSTELLO: Come on, Hayes. Come on, Hayes, do it.

ROTH: No, no, no.

COSTELLO: Come on!

ROTH: No. It's more -- it's all of that and more. How is that?

COSTELLO: OK. So, you're not asking the public to give suggestions. You're just...

ROTH: No, no, actually we would recommend not doing it that way. This is actually a very formalized process, just as we would for a large corporation like BP or any of the other companies that we work for. All go about it the right way, and they're doing it the right way.

COSTELLO: OK. So, you'll give us the first dibs on slogans.

ROTH: I'd be glad to.

COSTELLO: I mean, not the slogan. Sorry.

ROTH: Not the slogan. The brand.

COSTELLO: The brand. Thank you, Hayes Roth.

ROTH: Thank you.

COSTELLO: Joining us live this morning.

It is 6:51 Eastern. Here is what will be making news today.

Supreme Court nominee Samuel Alito meets with senators on Capitol Hill today, including Democrat Diane Feinstein.

In the meantime, a newly-released memo shows Alito voice support for anti-abortion efforts during the Reagan administration.

Also today, the man tapped to replace Alan Greenspan goes before a Senate panel. Federal Reserve chair nominee Ben Bernanke is expected to face little opposition during the one-day confirmation hearing.

And finally, President Bush is officially starting his four- nation trip to Asia. He arrived in Japan just under three hours ago. The president will also attend the Asia-Pacific Trade Summit in South Korea, followed by visits to China and then to Mongolia.

Once upon a time, there was princess who didn't want to be a princess anymore. It's a story the Japanese people are hearing right now. And they're wondering if it will have a happy ending.

CNN's Atika Shubert has more.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN CORRESPONDENT (voice over): It is perhaps a fairy tale in reverse. Japan's Princess Sayako is marrying out of the imperial family to become a commoner.

She is marrying Yoshiki Kuroda, an urban planner for Tokyo's metropolitan government. He is not royalty. And imperial law is clear: any woman who marries outside of royalty leaves the royal family.

It's a low-key affair in a hotel ballroom stripped of the grandeur that usually marks an imperial wedding.

For the first time, Sayako will now have a surname. She will pay for her own purchases, and she will have the right to vote.

It is the complete opposite of Japan's other fame royal, Princess Masako. She married into the imperial family by wedding Crown Prince Naruhito, next in line for Japan's Chrysanthemum Throne.

By comparison, Masako's wedding was a grand display of imperial tradition. Her new role, to bear a male heir to the throne. That, however, has not happened. Since her wedding, Princess Masako has faded from public view, suffering from what doctors say is a failure to adjust to the demands of imperial life.

The tale of these two princesses has sparked controversy over a third, 3-year-old Crown Princess Iko, the only child of Princess Masako and Crown Prince Naruhito. Imperial law states that no woman shall inherit the throne. But without any siblings forthcoming, Iko is the only heir.

(on camera): So how to resolve the succession crisis? Well, a government panel recommends that imperial law be changed to allow a woman to inherit the throne. That, of course, would mean an entirely new role for women in the imperial family, one that would reflect the broader changes in Japanese society.

(voice over): "I think Japanese society accepts the idea," this woman says. "Our society is not only for men anymore. I want Japanese women to have more power and make decisions that affect the international community."

Not everyone agrees. Distant royal relatives have even suggested that royal concubines might be the solution, not a popular idea on the streets of Tokyo.

"I think both concubine and wife would suffer," this woman says. "They have enough grief and strain already. I would feel sorry for them to have anymore."

Japan's imperial family may soon bend to public will. But Princess Sayako won't have to worry. She may live happily ever after outside the palace walls.

Atika Shubert, CNN, Tokyo. (END VIDEOTAPE)

COSTELLO: All right, it's time for our favorite cheesy segment. We're going to give away the mug, Bonnie.

BONNIE SCHNEIDER, CNN METEOROLOGIST: That's right. It's time to give away that DAYBREAK coffee mug.

And here are the answers to Monday's questions. What company is introducing a new microprocessor code named "Niagra?" The answer is Sun Microsystems. Name one of "TIME" magazine's five best governors? The possible answers are Mike Huckabee of Arkansas -- a lot of choices here -- Kenny Guinn of Nevada, Janet Napolitano of Arizona, Kathleen Sebelius of Kansas and Mark Warner of Virginia. That's an easy question, because you only have to name one.

And the winner is -- drum roll, please -- Michael Spence of Portsmouth, Virginia. Congratulations, Michael.

And now it's time for today's questions. What's the deadline for enrollment in the new Medicare drug benefit program? And what's the name of Michael Newdow's church?

Submit your answers online. The address is CNN.com/daybreak. And you'll find out tomorrow if you won.

COSTELLO: Excellent questions this morning, Bonnie. Thank you.

SCHNEIDER: No multiple choice, right?

COSTELLO: No, no, that would be cheating. Thank you, Bonnie.

We'll be back in a minute.

(COMMERCIAL BREAK)

COSTELLO: If you are traveling this morning, Bonnie has some news.

(WEATHER REPORT)

COSTELLO: From the Time Warner center in New York, I'm Carol Costello. "AMERICAN MORNING" starts right now.

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