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American Morning

Response to North Korea; Japan on Alert; Crisis in Gaza; President at 60; Emmy Nominations

Aired July 06, 2006 - 06:00   ET

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


MILES O'BRIEN, CNN ANCHOR: It is Thursday, July 6, good morning to you. I'm Miles O'Brien.
CAROL COSTELLO, CNN ANCHOR: And I'm Carol Costello in this week for Soledad.

Here's a look at what's happening this morning.

O'BRIEN: North Korea says more missile tests on the way, calling them a matter of self-defense. This, as a top American diplomat arrives in South Korea to huddle with allies in the region.

COSTELLO: North Korea is expected to be on the agenda today when President Bush meets with Canadian Prime Minister Stephen Harper. The two leaders will hold a working lunch at the White House.

Still no clear winner in Mexico's tight presidential race, but the latest vote count gives conservative candidate Felipe Calderon a slim lead with 98 percent of the vote counted. He leads by one- hundredth of a percentage point.

O'BRIEN: In southern Iraq this morning, at least 11 are dead after a car bombing near a Shiite mosque in Kufa, another 51 wounded, most of the victims Iranian Shiite pilgrims.

Colorado this morning, authorities say they will release diaries kept by the gunmen in the Columbine massacre. Eric Harris and Dylan Klebold killed 12 students and 1 teacher before killing themselves April '99. The sheriff says he will not release videotapes the pair made.

COSTELLO: A message from one of the suicide bombers in the London transit attacks is now imminent. That's according to Islamic Web sites. The video is also said to include a message from an American member of al Qaeda. Tomorrow is the first anniversary of those attacks.

O'BRIEN: A delicate dance, a pirouette for the space shuttle Discovery today. The shuttle docks at the International Space Station in a little while. During the approach, Commander Steve Lindsey will fly a delicate somersault maneuver so the station crew can inspect Discovery's heat shield, which so far looks good, except for a few bird droppings. We'll tell you more about that later.

COSTELLO: What, in space?

O'BRIEN: Yes, bird droppings.

Chad Myers is...

COSTELLO: You just can't get away from them.

O'BRIEN: We've discovered something that can withstand most anything and that is, in fact, the bird droppings.

CHAD MYERS, CNN METEOROLOGIST: Yes.

O'BRIEN: Good morning, -- Chad.

MYERS: Good morning. You always want to talk about that shuttle, -- Miles.

O'BRIEN: Yes, I do.

MYERS: Good morning.

(WEATHER REPORT)

Back to you guys.

O'BRIEN: Thank you, Chad.

North Korea today vowing to keep on launching missiles. A divided U.N. Security Council goes back to work today to try to respond to the crisis. The U.S., Britain and Japan would like a resolution that imposes sanctions and demands that North Korea stop making and testing missiles. Russia and China are against sanctions and they each have veto power on the Security Council.

The Bush administration does not want this to be a Washington- Pyongyang issue, however, Assistant Secretary of State Christopher Hill arrives in Asia today. He will talk with nations involved in the six-party disarmament talks.

We have two reports now live from Atika Shubert in Tokyo. We begin in Seoul with Sohn Jie-Ae -- Jie-Ae.

SOHN JIE-AE, CNN CORRESPONDENT: Well North Korea today made its first official announcement about the missile since it fired the missiles. A North Korean official agency, KCNA, saying that the missiles were a part of North Korea's regular military exercises and that it was done to improve North Korea's self-defense.

And also, in a very defiant tone, North Korea said that if anyone tries to discuss the rights and wrongs of this missile test or to pressure North Korea, that North Korea would have no other choice but to apply what they called a physical -- to take other physical actions.

Now North Korea also said that it was in their sovereign right as a nation to conduct military exercises, military exercises which they said were successful. And they said they were in every right to conduct even more -- Miles. O'BRIEN: Thank you very much, Sohn Jie-Ae in Seoul, South Korea.

Let's talk -- move over to Japan now, to Tokyo. Japan has been in the sights of North Korean missiles in the past and of course there's a lot of concern there.

Atika, tell us what the latest is.

ATIKA SHUBERT, CNN CORRESPONDENT: Well, Miles, here in Japan on heightened alert, especially after this report from North Korea saying that they may well conduct more missile launches. If anything, Japan is reacting with a much tougher line. It is of course trying to push through this U.N. Security Council resolution, a very punitive resolution that tries to impose sanctions on North Korea.

Prime Minister Koizumi actually spoke to President Bush earlier in the day. Both of them pledging their support for this resolution. Interestingly, Japan's defense agency also said today that they would try and speed up development of a joint missile defense shield with the United States. So clearly Japan reacting to North Korea's statement by simply taking a hard line -- Miles.

O'BRIEN: Atika Shubert in Tokyo, thank you very much.

We'll get a direct response from the White House to all of this live, 7:30 Eastern Time, with Under Secretary of State Nicholas Burns -- Carol.

COSTELLO: Israeli soldiers swept into northern Gaza overnight under heavy fire from Palestinian militants. Troops are also moving deeper into southern Gaza with tanks and bulldozers. It's part of Israel's increased offensive called "Operation Summer Rain."

CNN's Paula Hancocks is live in Gaza City for us this morning.

Hello, -- Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Carol.

Well there has been increased clashes between the Israeli military and Palestinian gunmen. There's been some fierce gunfire. Just to the left of me in northern Gaza, in a place called Bethlahyia (ph), Palestinian gunmen have been firing at Israeli tanks and troops which have stationed themselves around that area. And we know from Palestinian security sources, one Palestinian has died.

Now the Israeli military has moved into former Jewish settlements. There's 3 of the 21 that they moved out of last summer after 38 years of occupation. They've moved into that area to try and create a buffer zone in northern Gaza.

Now the reason for this is because Hamas militants in the past couple of days have been launching homemade rockets from Gaza into Ashkelon, which is a city of 110,000 people. Now this is the furthest these rockets have ever got. And so what the Israeli military is trying to do is to push these militants further away so when they launch these rockets, it doesn't get as far and into Israel proper.

Now we've also been hearing some funerals of those that have been killed overnight in Gaza City this Thursday. Three militants we know were killed overnight with clashes with Israeli forces.

And we also know that Israeli Prime Minister Ehud Olmert has said that the rules of the game have changed since that rocket hit Ashkelon, that Israeli city. He's given the green light to the military to go much further in Gaza, expecting to have this a buffer zone.

And also Israeli media is suggesting that once again Israel could try and dissect the Gaza Strip up into three to try and stop the militants from being able to move freely from place to place. And also to prevent the Palestinian militants holding that kidnapped Israeli soldier from moving him from where he is at the moment, they believe southern Gaza -- Carol.

COSTELLO: Paula Hancocks reporting live from Gaza City this morning.

Happening in America.

In Washington State, the U.S. Army has filed charges against an officer who refuses to fight in Iraq. Lieutenant Ehren Watada says the war in Iraq is illegal. He has asked to be transferred to Afghanistan or somewhere else. Watada will face a preliminary military hearing later this month.

A Las Vegas police officer is being questioned after shooting a driver to death on the 4th of July. The incident apparently started when the man refused a police request to turn down his car stereo. The driver then took off, dragging a second police officer and crashing into a taxi.

New York's Supreme Court is preparing to rule this morning on same-sex marriage. The decision will combine four different lawsuits representing 44 gay and lesbian couples. If the court rules in their favor, New York will become the only state, other than Massachusetts, to allow same-sex marriage.

Lawmakers back in session this morning trying to end the New Jersey budget standoff. In the meantime, the casinos are empty in Atlantic City. The state is losing more than $16 million every day from the casinos alone. The casinos cannot operate without state inspectors.

In Atlanta, three people expected in federal court today to answer charges that they tried to sell Coke's trade secret, Coca-Cola, to Pepsi. The FBI was tipped off to the plot by Pepsi officials. Those secrets included a sample of a new drink being developed by Coca-Cola.

Rush Limbaugh is off the hook. The radio host will not face criminal charges for carrying a bottle of Viagra prescribed by his doctor. Customs officials found it last week when Limbaugh returned to Palm Beach, Florida from the Dominican Republic. Prosecutors say this will not affect his plea on doctor shopping for painkillers.

And Barry Bonds' trainer is behind bars for contempt of court. Greg Anderson is refusing to testify before a federal grand jury investigating Bonds for perjury in a steroids investigation. Anderson's prison term may be short; the grand jury's term expires within weeks.

O'BRIEN: Mexico's 11th hour nail-biter. Still to come, how do you say hanging Chad in Spanish? The razor-thin presidential recount there where the difference is a hundredth of a point.

COSTELLO: Then, a big milestone for President Bush, he turns 60 years old today. Hear about his birthday plans and how they compare to other presidential birthday bashes.

O'BRIEN: And the Emmy nominations are due out this morning. The Academy mixing it up this year. New rules making room for new faces. I've got my speech ready. I'm ready, just in case. Always ready.

COSTELLO: I didn't know Miles was nominated.

O'BRIEN: You never know.

COSTELLO: I am excited.

Carrie is here with business headlines -- Carrie.

CARRIE LEE, CNN CORRESPONDENT: Good morning, everyone.

Coca-Cola and Pepsi, two of the biggest rivals in corporate America, but when it comes to stolen trade secrets, the two companies are working together. We'll have that story and more coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Happening this morning.

North Korea says its missile tests will continue. It defends its actions as a matter of self-defense.

The votes have been counted and recounted, still no clear winner in Mexico's tight presidential race. With 98 percent counted, the conservative Felipe Calderon leads by one-hundredth of a percentage point.

Space shuttle Discovery docking with the International Space Station today. Discovery delivering supplies and a crewman to the station. The shuttle will somersault on its approach, allowing station crew members to inspect the heat shield. We'll have live coverage later in the program.

Let's get a check of the forecast now. Chad Myers at the CNN Center.

Good morning, -- Chad. MYERS: Good morning, Miles.

(WEATHER REPORT)

COSTELLO: Thank you, -- Chad.

MYERS: OK.

COSTELLO: Like the first G.W., George Washington, President George W. Bush celebrates his 60th birthday in office. He turns the big 6-0 today. In fact, he's the 11th president to blow out 60 candles in the Oval Office.

CNN White House correspondent Suzanne Malveaux has more on the president's big day.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): On America's 230th birthday...

UNIDENTIFIED MALE: Happy birthday to you.

UNIDENTIFIED MALE: Happy birthday to you.

UNIDENTIFIED MALE: Happy birthday to you.

MALVEAUX: ... President Bush celebrated his 60th, first with troops at Fort Bragg, then later at the White House with family and friends. But today is the real day he turns the big 6-0.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This year, the first of about 78 million baby boomers turns 60, including two of my dad's favorite people, me and President Clinton.

MALVEAUX: So how will Mr. Bush mark this day? The president's father celebrated his 80th with a leap of faith.

MARILYN MONROE, ACTRESS: Happy birthday, Mr. President.

MALVEAUX: John F. Kennedy's steamy 45th incited scandal.

Mr. Bush's birthday will likely be more low key, but he hasn't shied away from talking about his age.

BUSH: I blame my gray hair on my mother. I used to think 60 was old, didn't you?

MALVEAUX: "Newsweek's" Evan Thomas says the president's journey has been like many of his peers.

EVAN THOMAS, "NEWSWEEK": You know the 60s knocked a lot of people for a loop, including George Bush. He passed an enormous milestone in the 1980s when he quit drinking and became born again.

MALVEAUX: Thomas says Americans have also watched Mr. Bush mature during his presidency.

THOMAS: And a lot of people thought that he wasn't really ready for it. Then, bam, you have 9/11 and all of a sudden he has the greatest crisis any president has faced in a long, long time. And he had to grow up in a real hurry. And he did show tremendous strength and resolve right away.

MALVEAUX: But with every president, the demands of the job add years to one's face.

BUSH: Just getting warmed up.

MALVEAUX: But unlike most of his predecessors, Mr. Bush, the athlete, is the envy of many half his age.

WAYNE SLATER, "DALLAS MORNING NEWS": He demonstrates to a lot of people in this generation that turning 60 doesn't make you a physical wreck.

MALVEAUX: Wayne Slater covered Mr. Bush as Texas governor and now president. He says the president's outlook suggests that perhaps the adage is true, that age is just a number.

SLATER: There is an aspect of George Bush's personality, which has not changed, and that's a kind of not immaturity, but a certain playfulness that I think remains.

BUSH: Anybody want a piece?

MALVEAUX: Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

COSTELLO: And what would any birthday be without Larry King? President Bush will spend part of his birthday with CNN's own Larry King. The president and first lady will be Larry's special guests tonight at 8:00 Eastern. And you have a chance to ask the president a question. All you have to do is go to cnn.com/larryking and then tune in tonight to see if the president answers your e-mail.

O'BRIEN: Still to come on the program, Hilary Swank's break-up bombshell. The actress revealing why she ended her eight-year marriage to Chad Lowe.

And it's Emmy time. The nominations coming out this morning. We'll find out how some new rules are going to make this a little harder to call, maybe some lesser known, lesser thought of shows will get a little more attention. Is that right? Is that how it's going to go?

COSTELLO: Supposedly.

O'BRIEN: That's it. That's the deal. All right.

Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: Some of the most popular stories on CNN.com right now.

North Korea says it was well within its rights to test fire seven missiles. It's also threatening strong repercussions if any country tries to stop its military exercises.

Oscar winner Hilary Swank says her husband's substance abuse led to their break-up. In the new issue of "Vanity Fair," Swank reveals that it wasn't the only reason, but husband Chad Lowe's abuse highlighted other problems.

And three people will be in court today facing charges of stealing trade secrets from Coca-Cola and trying to sell them to rival Pepsi for $1.5 million.

O'BRIEN: Coca-Cola and trade secrets. You know for years and years the formula for Coca-Cola with Merchandise 7X (ph) was supposedly in a safe somewhere in Atlanta.

LEE: Locked in a vault.

O'BRIEN: Locked in a -- it was all kind of a marketing thing.

LEE: Right.

O'BRIEN: But in this case, we're talking about real trade secrets that were passed along.

LEE: Right. And we're talking about a lot of money. As Carol said, $1.5 million. That's what the Coke employees expected to get. But instead, they got a visit from the FBI instead. Three Coke employees face federal charges for trying to sell Coke secrets, confidential information here, including a sample of a new drink, to Pepsi.

Now the deal was supposed to go down yesterday for $1.5 million. That's what three Coke employees thought. But instead, Pepsi worked with the FBI to start an undercover operation.

Now a Pepsi spokesperson says -- quote -- "competition can sometimes be fierce, but also must be fair and legal."

Coke, of course, thanking Pepsi for its cooperation. And it's very interesting to see two of the most bitter rivals in corporate America working together on this.

O'BRIEN: Really.

LEE: But you can imagine how high the stakes are.

O'BRIEN: Yes, Pepsi taking the high road there.

LEE: Yes, exactly.

O'BRIEN: And Coke thanking Pepsi. These are all historic moments right there. Wow! All right.

LEE: And the interesting thing is the employee was seen stuffing documents in her bag. It's all on video surveillance. So, you know, it's easy to get caught.

COSTELLO: Smart employees they've got.

LEE: Exactly.

COSTELLO: Gosh.

LEE: So that is the latest there.

Let's talk about oil prices. Yesterday, new record prices, both settlement and intraday high. We settled at $75.19 after trading as high as $75.40 during the session. A couple of things happening, recent disruptions in shipping, refining on the Gulf Coast and then also North Korea's missile tests kind of causing a little bit of jitteriness that already exists. Plus, supply and demand issues also in the oil background.

Futures for this morning. Stocks looking to open slightly higher, this, after some losses yesterday. You can see across the board major market indices losing a little bit of ground. People may be staying on hold until we get the big June jobs report out tomorrow morning.

O'BRIEN: Are those ready? Something to do with North Korea maybe?

LEE: Also, yes, of course.

O'BRIEN: OK. All right.

Thank you, -- Carrie Lee.

LEE: Sure.

COSTELLO: The nominees for TV's prime time Emmy Awards will be announced later this morning. Hollywood is buzzing about a new nominating procedure that could show some Emmy love to stars and shows that might have been overlooked in years past.

More now from CNN's Brooke Anderson.

(BEGIN VIDEOTAPE)

BROOKE ANDERSON, CNN CORRESPONDENT (voice-over): The Emmys have long been considered predictable with voters inevitably honoring old favorites year after year. But this year's nominations could make room for fresh faces and long-ignored actors due to a revamped process that involves multiple rounds of voting.

MARY MURPHY, SENIOR WRITER, "TV GUIDE": There's a mass voting and then there are select committees. Now I have a feeling we're going to see a lot of changes. UNIDENTIFIED FEMALE: Nothing you could say could top that.

UNIDENTIFIED FEMALE: I'm pregnant. I win.

ANDERSON: Take the steamy medical drama "Grey's Anatomy." Last year it was eligible but wasn't nominated for best drama. A brush- off, Emmy prognosticators say, won't be repeated.

RAY RICHMOND, "THE HOLLYWOOD REPORTER": I think "Grey's Anatomy" is probably the show to beat this year for drama.

ANDERSON: The new HBO polygamy show "Big Love" hopes to crack that category, which in the past has been dominated by familiar contenders, including "The Sopranos" and "The West Wing."

HUGH LAURIE, ACTOR: Stay in character. I'm so scared. Hold me.

ANDERSON: Critically acclaimed "House" star Hugh Laurie is a heavy favorite to clinch an acting nod, but Laurie's competition is stiff and stout.

RICHMOND: Usually it's overweight white guys. Michael Chicklis is one. James Gandolfini has won. If we follow that idea, you know fat, white, balding guys, it's pretty much a given that Gandolfini will win again.

JASON LEE, ACTOR: Sometimes karma gives me a sign.

ANDERSON: The battle for laughs is shaping up to be intense with two new series fighting to break into the pack.

MURPHY: We've had two great new comedies this year, "My Name is Earl" and also "The Office."

STEVE CARELL, ACTOR: That's what she said.

RICHMOND: I would love to see "The Office" get nominations and win. I think it's the smartest show on television.

LAUREN GRAHAM, ACTRESS: Friday night dinners, cocktails, Mozart, mind games, good times.

ANDERSON: After starring on the popular show "Gilmore Girls" for six seasons, Lauren Graham is still searching for that elusive Emmy nomination, an honor that could finally be hers.

RICHMOND: I think there's a chance she may crack the lineup this time.

ANDERSON: So are the Emmys on the verge of a breakthrough?

RICHMOND: It may not be as predictable. On the other hand, it might be as predictable. They are predictable unless they are not, or unless they are.

ANDERSON: Only time will tell. UNIDENTIFIED MALE: Lady fortune is your boss!

ANDERSON: Brooke Anderson, CNN, Hollywood.

(END VIDEOTAPE)

COSTELLO: And CNN will carry the prime time Emmy nominations live this morning. Will come your way at 8:30 Eastern.

O'BRIEN: Morning's top stories straight ahead, including there is more where that came from. The North Koreans say they'll just keep launching rockets. So now what?

And a deadly car bomb in a mosque in Iraq targeting Shiites. We'll bring you up to date on the latest in the sectarian violence there.

Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Happening this morning.

North Korea says its missile tests will continue, saying it's a matter of self-defense.

The recount almost finished in Mexico's tight presidential race. Apparently there is a clear winner now, conservative Felipe Calderon, but he only leads by a hundredth of a percentage point.

And in Colorado this morning, authorities plan to release diaries and yearbook messages kept by the killers in the Columbine massacre. Eric Harris, Dylan Klebold killed 12 students, 1 teacher, before killing themselves in April of '99.

Good morning to you, I'm Miles O'Brien.

COSTELLO: And I'm Carol Costello in for Soledad.

Topping our news this morning, North Korea says it does not plan to stop launching missiles. The White House is working on a unified multi-nation

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