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CNN Live At Daybreak

President Bush Arrives in South Korea for Day Two of Asian Trip; Tornadoes Tear up the Ohio Valley

Aired November 16, 2005 - 06:00   ET

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

CAROL COSTELLO, CNN ANCHOR: It is Wednesday, November 16.
President Bush arrives in South Korea for day two of his Asian trip. The president talking tough about democracy in China, while back home something you don't see, at least that often. The Senate actually agreeing on something. They want to hear more from the White House about the Iraq war.

And tornadoes tear up the Ohio Valley. We'll tell you where the storms are heading this morning.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello.

COSTELLO: And good morning to you.

We have more on the president's trip in just a minute.

Also ahead, the stand-off continues between Delta and its pilots. How could a strike affect your holiday travel plans? We're going to take a closer look at that.

And a wedding story from Georgia, but this time it doesn't involve a runaway bride. This one is staying put -- in jail. We'll explain.

But first, now in the news, a suspect in custody this morning in connection with yesterday's deadly car bombing in Pakistan. The attack in Karachi killed at least three people and caused major damage. No details on a suspect.

In Afghanistan's Kandahar Province, a suicide car bomber targets a convoy carrying Westerners. Three civilians were killed, but they're not believed to be Americans. The U.S. military providing security for the convoy.

Some harrowing moments for riders on the X-Scream in Las Vegas. They were left hanging 27 feet off the edge of the Stratosphere Hotel Casino during a power outage that lasted more than an hour. A Nevada Power spokesman says crossed wires shut down a circuit.

Much of the East Coast bracing for possible severe weather. You're looking at -- actually, this is down South, in Atlanta, Georgia. And you can see it's already starting to rain there. This follows powerful storms that ripped through the nation's mid-section, spawning more than 30 tornadoes. At least one person was killed. Dozens of homes are damaged this morning. So, where's the rough weather heading exactly?

Let's check in with Bonnie Schneider.

BONNIE SCHNEIDER, ATS METEOROLOGIST: Well, here's an area we're watching very closely for the afternoon, the Northeast, cities like New York, even down through Washington, D.C. Quiet now. Actually, temperatures are very mild. But we are getting ready for a rough ride. The same front that worked its way across the Midwest yesterday will be sliding to the east. We could see winds in New York City gust as high as 40 miles per hour later today and tonight, and very strong thunderstorms, as well.

And these winds and this front is going to have a huge effect on your forecast.

It's not raining right now, but grab the umbrella. By late this afternoon we're going to see those strong storms with heavy downpours. A nice warm high of 70 degrees, but what a difference a day makes. Back down to 49 on Thursday, cooling down to 46 on Friday.

So this is a powerful cold front that's really pulling down a lot of cold air for much of the Northeast, and, really, much of the country.

(WEATHER REPORT)

COSTELLO: On to Asia now, where President Bush is focusing on spreading democracy. The president arrived in South Korea a little more than an hour ago for the Asia-Pacific Economic Summit.

Live to the APEC summit site and our senior Asia correspondent, Mike Chinoy -- hello, Mike.

MIKE CHINOY, CNN CORRESPONDENT: Hi, Carol.

Well, the president is now here in Busan, South Korea, the site of this summit that will bring together leader from 21 Pacific nations. On Thursday morning, he'll be having a summit meeting with South Korea's president, Roh Moo Hyun, before getting down to the two days of meetings here.

Other leaders from China, Japan, Russia, Southeast Asia, discussing a whole range of issues.

Before coming to South Korea, the president finished up a trip to Japan by delivering a speech in which the main theme was the advancement of democracy. And his main target? China and its communist rulers.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: As China reforms its economy, its leaders are finding that once the door to freedom is opened even a crack, it cannot be closed. As the people of China grow in prosperity, their demands for political freedom will grow, as well.

(END VIDEO CLIP)

CHINOY: The president held out Japan and Taiwan as models of democracy and he urged China to begin a dialogue with Taiwan. That prompted a snippy response from China's foreign minister, saying that any comment on Taiwan was interfering in China's internal affairs. The Chinese, of course, claim Taiwan.

What was interesting about that speech was the degree to which the president devoted so much attention to China. It's a reflection of the fact that with its enormous and growing economic power, China is becoming an increasingly significant player diplomatically and even militarily in the region. And so the president setting the stage for the rest of his Asian trip by sketching out his views on China and its role in the Far East and beyond -- Carol.

COSTELLO: Mike Chinoy live in Busan, South Korea this morning.

While the president is away, it was decided back home that he's got some explaining to do regarding the war in Iraq. The Senate has voted overwhelmingly for the president to outline a strategy for finishing the mission and then to provide quarterly reports. However, the Republican controlled Senate rejected a Democratic plan to lay out a timetable for withdrawing U.S. troops.

(BEGIN VIDEO CLIP)

SEN. CARL LEVIN (D), MICHIGAN: Although our amendment was not adopted with some provisions that we think are important, the most important message that is being sent from the U.S. Senate today in an overwhelming vote, which has now been cast, is we want to change course. We need to change course. Staying the course is not a strategy.

SEN. JOHN WARNER (R), VIRGINIA: I think it's very clear and it sends a strong message that we mean business with the Iraqi people now. I'm not satisfied with the manner in which they've very slowly -- these governments -- have come together.

(END VIDEO CLIP)

COSTELLO: The Senate also agreed to extend health insurance for the children of the troops killed in combat. Coverage will now continue until the children reach the age of 21 or 23, if they're still in school. It currently cuts off after just three years.

Sadly, three more American soldiers have been killed in Iraq. The military says the troops died Tuesday when their patrol hit a roadside bomb northwest of Baghdad.

We're also getting horrific details of more detainees being tortured in Iraq, this time at the hands of Iraqis.

CNN's senior international correspondent, Nic Robertson, joins us live from Baghdad with more on this side of the story -- hello, Nic.

NIC ROBERTSON, CNN CORRESPONDENT: Good morning, Carol. Well, there was this time it was U.S. troops that discovered these alleged abuses. They went into a compound in Baghdad over the weekend, looking for a 15-year-old boy. They found more than 160 detainees crowded into a small area. They said some of them needed medical treatment.

Now, the Iraqi Ministry of Interior said that this particular compound was being used for interrogations by a special investigation unit. They admit that there are abuses going on. Indeed, the deputy minister says it's the worst he's seen.

(BEGIN VIDEO CLIP)

HUSSEIN KAMAL, IRAQI INTERIOR MINISTER (THROUGH TRANSLATOR): I have never seen such a situation like this during the past two years in Baghdad. This is the worst and cannot be denied.

(END VIDEO CLIP)

ROBERTSON: And he went on to say that he'd seen at least two cases here people have been so beaten that they were paralyzed and he said that there were cases where people were having their skin peeled.

Now, that area is now controlled by the U.S. military. The Ministry of Interior has called for an investigation and Iraq's prime minister has actually set up a committee to investigate the matter. He said he wants it investigated now.

The concerns here are that there is a possibility that it could raise sectarian tensions, because there are already strong rumors that it was mostly Sunnis who were receiving the beatings by a predominantly Shia police investigation unit -- Carol.

COSTELLO: Nic Robertson reporting live from Baghdad this morning.

Back to the United States now and that severe weather.

This is a live look at what's going on right now down in Atlanta. The city is expecting some heavy rain, so be careful driving there. I mean, you know, when the rain comes down in Atlanta, the water accumulates quickly on the roadways. As you can see, it's already starting to rain. More severe thunderstorms expected later today, so do be careful.

Let's check out some of the spots that were hardest hit by the earlier storms we've been telling you about.

Some of the worst tornado damage happened in western Kentucky, in the Madisonville area. Homes are wrecked. National Guard troops are helping to clear debris from the streets. One person killed when a trailer home overturned and caught fire.

Also major damage in the Nashville area and other parts of Tennessee. At least a dozen people are hurt here. Twisters were spotted in several Tennessee counties. You see the damage there. Homes also leveled in Daviess County, Indiana. The National Weather Service is sending teams to Daviess and other southern Indiana counties to assess the damage in that state.

Still to come on DAYBREAK, if you have a ticket on Delta this holiday season, you might have more to worry about than just the weather.

Also, a Georgia bride behind bars. It's a little strange and sad story. We'll tell you more after a break.

And Fred Astaire, well, this guy is not Fred Astaire. You know, it's just a -- I don't know. He's OK. Don't worry. But we'll tell you how this happened.

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

(COMMERCIAL BREAK)

COSTELLO: Your news, money, weather and sports.

It's 6:12 Eastern.

Here's what's all new this morning.

President Bush now in South Korea for the Asia-Pacific Trade Summit. In a speech in Japan earlier, the president sent a message to China. He urged the communist country to embrace democracy.

In money news, a spice company wants meat packers to stop using carbon monoxide. Yes, it uses carbon monoxide. Kalsec claims carbon monoxide changes the color of the meat and keeps it looking fresher longer. The FDA says the practice is fine, but it has been outlawed by the European Union.

In pop culture, take a look at this. Mexican singing star Juan Gabriel is recovering after falling off the stage -- ooh, gosh. His foot gets tangled up in the microphone cord and off he goes into the orchestra pit. He actually broke his wrist tumbling off that stage. This was in Houston during a concert. Gabriel has canceled the last week of his U.S. tour because, well, you know why.

In sports, a new steroid policy for baseball calls for a lifetime ban after the third positive test. Major league baseball and the players union agreed on tougher penalties. First time abusers get a 50-game suspension. That's up from just 10 games under the current rules -- Bonnie.

(WEATHER REPORT)

COSTELLO: Coming up next, even if you don't drive, you may be seeing the effect of higher gas prices on your wallet. Carrie Lee will tell us how.

And if you're in Anaheim, California this morning, we have 315 million good reasons for you to stick around. Details coming up.

But first, good morning, Atlanta.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CHRIS EPTING, POP CULTURE HISTORIAN, AUTHOR:

(END VIDEO CLIP)

(COMMERCIAL BREAK)

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

Aides to the vice president met with officials from four major oil companies when the Bush administration was putting together its energy policy. That's according to documents obtained by the "Washington Post." environmentalists claim they were shut out of the meetings. The documents appear to show that U.S. energy policy favors the oil industry.

We have a winner! One winning ticket was sold in last night's $315 million Mega Millions lottery. Guess what? If you don't live in Anaheim, California, or you weren't there recently, it isn't you. Here are the numbers: two, four, five, 40 and 48, with seven as the Mega Ball number.

High energy prices have been hurting consumers for the past few months. And now food prices are soaring, as well.

Carrie Lee joins us with a look at the high cost of what we eat -- good morning.

CARRIE LEE, CNN CORRESPONDENT: It all trickles through the system, Carol, from consumers to companies when energy prices are high. And that's exactly what's happening.

Kraft Foods is raising prices on a wide variety of products, including Oscar Meyer meats and Oreo cookies, by nearly 4 percent. Hershey Foods raised some candy prices by 1 percent. And Flowers Foods, maker of Nature's Own and Sunbeam Bread, is raising prices by as much as 5 percent starting next year.

And if these increases stick, it could signal other food companies to join in, leading to the industry's second round of broad price hikes in less than two years. Already this year, General Mills and Sara Lee had to back off price increases, though, after competitors failed to follow through.

So what's causing the price hikes? Well, companies, like the rest of us, are paying higher prices for energy. So it costs more to run factories and ship goods. But the cost of items like coffee and nuts is also on the rise and those increases are being passed on to the consumer, as well. Now, consumers can fight back by switching away from brand names to private label or store brand items. We'll find out more about inflation at the consumer level, our level, this morning, when the Consumer Price Index for October is released. Carol, that comes out an hour before trading. Right now futures are looking mixed after a little bit of selling at the close yesterday.

COSTELLO: But after that report it all could change.

LEE: That's right.

COSTELLO: All right, thank you, Carrie Lee.

LEE: It's a good one to watch.

COSTELLO: Delta and Northwest Airlines both head to court today to cut pay. Delta is asking a judge to allow them to cut pilots' pay by nearly 20 percent. But pilots who gathered for a union rally in Atlanta say they're considering the dreaded "S" word. That would be strike.

Joining me from Chicago to talk about the situation is Doug Cameron of the "Financial Times."

Good morning, Doug.

DOUG CAMERON, "FINANCIAL TIMES": Good morning.

COSTELLO: So, can pilots strike? You know, the holiday season is coming up and a lot of people are worried.

CAMERON: It would certainly be an unprecedented move, particularly for an airline in bankruptcy. Pilots are amongst the most professional and safety is paramount in the industry. The simple fact is that it's untested legal grounds.

One of the reasons both Delta and Northwest filed for bankruptcy protection in New York is the uncertain legal nature. The pilots are governed by the National Railways Act and certainly amongst pilot leaders, there is concern that to set a legal precedent as to whether they can strike or not would actually be a dangerous move for the industry going forward.

COSTELLO: So we really don't know if it's legal or not, whether they can strike? Is that what you're saying?

CAMERON: It is as simple as that, that Delta's management will certainly argue, and their lawyers will argue, that it is illegal under the National Railways Act. The union lawyers will, in fact, press for the opposite argument.

But we won't certainly find that out until after the two day hearing over the pilots' pay contract.

COSTELLO: Let's talk about the pilots issue. Delta wants to cut their pay 20 percent. But my goodness, in 2004, the pilots took a 32.5 percent pay cut. And the average pilot pay is $169,393 a year. And, of course, a lot of pilots make less. Some pilots make more.

But isn't that asking a lot?

CAMERON: The Delta management argue that through their calculations that's exactly what they need in order to meet their financing commitments and to exit bankruptcy. Both other employees have already seen that pay cut imposed. These are non-unionized employees. The pilots, from their side, would argue that they're -- indeed, they've already taken those cuts last year and while they agree that there's a need for more action, they regard that 20 percent figure as too high and unnecessary. They think management is trying to gouge them.

I think that broader issue is the pilots and the whole industry, as far as the unionized employees, have kind of had enough after four years of cost cutting. They certainly have helped management recover from the problems the industry faced after September 11. I think there is general frustration among a fair amount of employees that they are taking the hits and they can't see an up side.

COSTELLO: OK, Doug, let's get to the bottom of this, because a lot of people are worried about possibly not being able to fly home from the holidays.

So, if the pilots do go on strike, will Delta be able to still fly their planes, you know, possibly by using other pilots coming in?

CAMERON: The simple fact is not clear. There are not enough pilots to fill up the flight decks of the third largest U.S. carrier. I still think that a strike is very unlikely. Negotiations will continue and negotiations will continue even if the judge agrees to impose a new contract and reject the current one.

But if there is a strike, then there will be delays and there will be shortages of seats despite the over capacity which has plagued this industry for a number of years now.

COSTELLO: Yes.

Doug Cameron of the "Financial Times" joining us live this morning.

Thanks, Doug.

CAMERON: Thank you.

COSTELLO: Still to come on DAYBREAK, President Bush takes his message of democracy on the road to Asia while lawmakers here at home send a powerful message to the president about the democracy American troops are fighting and dying for over in Iraq.

(COMMERCIAL BREAK)

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello.

COSTELLO: And good morning to you.

Thank you for waking up with us.

We'll have your forecast in just a minute.

Also coming up this half hour, President Bush continues his tour of Asia. We'll update his progress, both geographically and politically.

And dozens of tornadoes touch down in the Midwest and Southeast. We'll have a live report from the scene of one of those disasters.

But first, now in the news, it was another night of unrest across France. But police say the violence is declining steadily. The French Lower House of Parliament has voted to extend a state of emergency for three months, though. The Upper House is expected to do the same today.

The "Miami Herald" is reporting in its morning editions that the CIA believes Fidel Castro has Parkinson's Disease. Unnamed officials told the paper that the symptoms became more pronounced about a year ago and added that the 79-year-old Cuban leader's health could begin deteriorating quickly.

Robert Tisch, the co-owner of the New York Giants, has died of bcc. Tisch was diagnosed with an inoperable brain tumor in 2004. Wellington Mara, the Giants' other co-owner, died last month, also of cancer. Robert Tisch was 79.

To the Forecast Center to check out the severe weather -- good morning, Bonnie.

(WEATHER REPORT)

COSTELLO: We're following President Bush on his Asian trip this morning. Just a couple of hours ago, he arrived in South Korea, where he'll attend the annual Asia-Pacific Trade Summit.

During an earlier stop in Japan, the president sent a message to communist China.

(BEGIN VIDEO CLIP)

BUSH: I pointed out that the people of China want more freedom to express themselves, to worship without state control, to print bibles and other sacred texts without fear of punishment. The efforts of Chinese people to -- China's people to improve their society should be welcomed as part of China's development.

(END VIDEO CLIP)

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