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American Morning

Crisis in the Middle East; Heat Wave Deaths; Tour De Fraud?

Aired July 28, 2006 - 06:00   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody. I'm Soledad O'Brien in New York this morning.
We're going to check in with Miles in just a few moments. He's reporting this morning from northern Israel right near the border. We'll get to him in just a few moments.

Here's what's happening in America this morning.

Some live pictures to show you, if we can get to them, looks as if there are some fresh Israeli strikes in southern Lebanon. Lebanese officials say the strikes there killed three people, wounded nine others. They say the strikes hit a building that was housing a construction company thought to be owned by a Hezbollah activist.

Israeli tanks and troops pulling out of northern Gaza. The withdrawal follows a two-day sweep that killed 29 Palestinians. The fighting continues in southern Gaza, though. Israeli aircraft hit a metal workshop early this morning wounding nine people. Israel says the target was a weapons storehouse.

In just a few hours, we're expecting to see President Bush meeting at the White House with British Prime Minister Tony Blair. The crisis in the Middle East is expected to dominate their meeting.

Secretary of State Condoleezza Rice says she's going to head back to the Middle East for more talks on the crisis. Secretary Rice made the announcement this morning at a conference in Malaysia. She has not indicated exactly when that trip will be made.

The Pentagon is extending duty for about 3,500 soldiers in Iraq. The Alaska-based brigade was supposed to go home in August. Instead, they're headed to Baghdad for up to four months to help control the violence there.

House of Representatives could vote on a bill increasing the minimum wage. That could happen today. Democrats want to raise it to $7.25 an hour over the next two years.

Tour de France champ Floyd Landis denies he doped his way to victory. This, after a drug test found unusually high levels of testosterone in his system. Landis says he has never taken performance-enhancing drugs and is vowing to clear his name.

In California, the deadly heat wave has now killed more than 100 people. For almost two weeks, temperatures have soared into the triple digits across the state. Cooler weather, though, is expected this weekend. And that is some very good news for the folks there.

Let's get right to Chad. He's got the forecast.

Hey, Chad, good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.

(WEATHER REPORT)

S. O'BRIEN: That's going to be a big old mess.

MYERS: Could be.

S. O'BRIEN: All right, Chad, thanks.

MYERS: You're welcome.

S. O'BRIEN: New wave of deadly Israeli air and artillery strikes are pounding southern Lebanon this morning. A Jordanian man was among the casualties. Israel says the raids are now taking a major toll on Hezbollah.

CNN's Karl Penhaul live in Tyre in southern Lebanon this morning.

Hey, Karl, good morning.

KARL PENHAUL, CNN CORRESPONDENT: Good morning, Soledad.

We've certainly seen those pictures coming from the border village of Maroun al-Ras. And, once again, we've seen heavy Israeli bombardments. And we understand that those bombardments are going on as we speak. That's outgoing fire from tanks and artillery.

You'll remember that Maroun al-Ras is the first village that Israeli ground troops tried to take. And the fact that they're having to get involved in shelling there once again would suggest that that area is not yet secure.

Now of course we do know that Israeli troops are also a little further on up by the town of Bint Jbeil, that's just directly north of Maroun al-Ras, a few kilometers further -- a few miles further on. And, again, there we have heard that there's been heavy resistance from Hezbollah militia fighters, hand-to-hand fighting, street-to- street fighting. The Israeli defense forces have even described it as window-to-window fighting.

Overall, in terms of this campaign, Israeli defense forces are saying that they have killed about 100 Hezbollah fighters. But Hezbollah, for security reasons, are revealing no figures. The Israeli military has also said that in the course of this campaign 33 Israeli soldiers have been killed -- Soledad.

S. O'BRIEN: Karl Penhaul for us this morning.

Karl, thanks. Let's get to Miles. As I mentioned, he is on the border right between Israel and Lebanon. We can't give you the exact location, of course, but there's a lot happening down below.

Good morning to you, -- Miles.

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

Yes, I'm standing on a mountain top at a Kibbutz 2,600 feet above sea level. And what it is providing us is really an amazing view of the battle as it unfolds.

Photographer Dave Albritton, stay with me now as we go and get people a sense of where we are.

Everything you see in this picture, Soledad, that's green is in Israel. Where it turns brown is in Lebanon. So in the foreground there, with those you know Mediterranean kind of peach-colored coral roofs, that's Israel. We just saw a few moments ago kind of in the 11:00 position of your screen a Katyusha rocket that fell down. Now that's about a mile and a half from where we stand now.

Three miles in the distance, that brown hill, the beginnings of Bint Jbeil are on the edge. And just over that hill is the proper of Bint Jbeil.

Can you see that smoke coming up right now? This is the constant artillery barrage that the Israeli defense forces -- you can hear the loud report as it takes a while for it to get to us here -- the constant artillery barrage on Bint Jbeil.

Now, go to about the 3:00 position on your screen there, over toward the right, that's Maroun al-Ras where we've also seen some activity as this artillery barrage continues. We're told on the ground there continues to be fierce close-quarters fighting.

So these artillery barrages are dialed in very precisely with Israeli defense forces on the ground there continuing fierce fighting all along those villages about three miles from where I stand here at this Kibbutz just south of the border here in Israel. So that brings you up to date. That's kind of a real-time picture of the battle as it exists right now.

Meanwhile, the picture on -- the big picture as to what's next for Israel. The Security Cabinet meeting the other day, Prime Minister Ehud Olmert indicating they would stay the course. What you're seeing here will be what it is as far as they are concerned.

But having said all of that, they have activated three divisions of reserve soldiers, some 30,000 soldiers, to be reporting for training and being ready for a possible escalation, something more -- less than the surgical operation that has been aimed at Bint Jbeil and Maroun al-Ras.

For more on that, we go to CNN's Paula Hancocks in Jerusalem with details, -- Paula. PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Miles.

Well that's right, the Security Cabinet did decide to keep things at the status quo, i.e., continue these Israeli air strikes and also continue what they call these pinpoint operations. Now we're hearing less and less about a massive ground operation which had been speculated about at the beginning of this escalation in violence. But at the same time, this Security Cabinet saying they will keep the status quo.

They're also calling up up to 30,000 reservists. Now this will have to be approved by the Security Cabinet once again before these men and women are actually deployed, but it does suggest that there either could be a switching out of troops as they withdrawal from battle or there could be a further escalation. But at this point, the Security Cabinet saying there will be no expansion.

This is what the military commanders wanted was an expansion in operations, but the politicians said no.

Now, also we know that they wanted to make sure that Syria knew that it was not under threat. All officials said that Israel did not want to fight a war with Syria, a very significant point to make there.

Now, also we heard from Dan Gillerman, the Israeli Ambassador to the U.N., saying that if there was going to be an international force which was going to be in southern Lebanon, it had to have more teeth than UNIFIL which has been there since 1978. He wanted to see something that was better equipped, better trained and something that was going to be able to be more forceful against Hezbollah.

Now, also he said that he saw no reason for the United Nations to be involved in an investigation that Israel is carrying out into how four U.N. workers were killed when an Israeli air strike hit one of the outposts.

(BEGIN VIDEO CLIP)

DAN GILLERMAN, ISRAELI AMBASSADOR TO THE U.N.: Israel is conducting its own investigation. Israel is a country of the rule of law. Israel's judicial system is highly respected all over the world.

Israel has carried out investigations with great integrity in the past and does not need anyone to share in this investigation. However, because U.N. personnel was involved, we would, of course, welcome any input from the United Nations and would seriously take it into account.

(END VIDEO CLIP)

HANCOCKS: The Israeli defense forces have been saying that overnight and in today's attacks it has been taking out rocket launchers. It also said in the Bekaa Valley it took out one of the long-range rocket launchers for Hezbollah. But at the same time, these rockets are still landing in northern Israel. We know at least 14 have been launched into northern Israel just this Friday alone. At this point, no serious casualties -- Miles.

M. O'BRIEN: Paula, I believe we just saw number 15 here right here. So, yes, the rockets are skill raining down on northern Israel.

Paula Hancocks in Jerusalem.

The evacuation of foreign nationals inside Lebanon still continues, not over yet. There are still people inside who would like to get out who are unable to do so safely or are having difficulty doing it. As a matter of fact, there is a ferry on its way right now from Beirut into Larnaca, Cyprus, or in to Cyprus, I should say, not to Larnaca, but near there.

Alessio Vinci joins us now from Larnaca with more on that, -- Alessio.

ALESSIO VINCI, CNN CORRESPONDENT: Good morning, Miles.

That ferry that you're referring to is "The Orient Queen" which is expected to arrive at the Limassol Port about an hour away from here later on tonight carrying several hundred U.S. citizens. Among those, of course, who are trying to still get out of the -- out of Lebanon and most of them coming, of course, from the areas down south where the fighting continues.

Now here at the port of Larnaca, ships continue to arrive from Lebanon. Three thousand five hundred people have arrived over the last 24 hours. Since the crisis began, this country has processed more than 47,000 people. And we understand that by the end of the week it will be about 50,000. Now most of them have already, of course, left the country. Some of them are still being processed.

As far as the Americans are concerned, we understand from U.S. officials here on the ground that 13,200 Americans have arrived here since the beginning of the crisis. Of those, 9,700 have already left the country.

Now, the reason why the number of those who have left is slightly lower is because there are some people, first of all, that the Americans have brought here to Cyprus that are not U.S. citizens. They don't know where they went.

But there are also a small number, in the 500, perhaps 800 people who said we're Americans at the beginning in Lebanon, but right now here they're being processed. They have, perhaps, expired documents, they have no documents, they have green cards that are no longer valid and so the United States government here is trying to process those people.

They call them the hard-core cases. They need to make sure that these people can legally enter the United States before they can be taken out of Cyprus and then flown into the United States. We do understand also that at least one more charter flight is expected to leave today. We're not seeing the numbers as we saw here earlier this week and in the past few weeks by the tens of thousands, but still by the hundreds of people are arriving here in Cyprus, both here in Larnaca and in Limassol about an hour away from here.

Miles, back to you.

M. O'BRIEN: Alessio Vinci in Larnaca, Cyprus, thank you very much.

Back to you, Soledad.

S. O'BRIEN: All right, Miles, thanks.

Still to come this morning, 12 days and counting in California, the oppressive heat is taking more lives by the day. We'll have the latest from California coming up next.

Then Tour de France winner Floyd Landis responds to charges that he's cheated his way to the Yellow Jersey. We'll bring you that in just a moment.

And then later, we return to Miles in the Middle East as he suits up and rides along with the Israeli border patrol.

Plus, Carrie Lee has got business headlines.

Good morning, -- Carrie.

CARRIE LEE, CNN CORRESPONDENT: Good morning, Soledad, thank you.

The federal government investigating a drug giant's deal to delay generic competition. We'll have that story and an early market check coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody.

Happening this morning.

A fresh round of Israeli strikes on Hezbollah targets in southern Lebanon to tell you about, Lebanese officials say the strikes killed at least three people, wounded nine others.

In just a few hours, President Bush meets with British Prime Minister Tony Blair at the White House. The two are expected to discuss the Mideast crisis. Blair says he wants a U.N. resolution on the crisis in place by next week.

And in eastern Indonesia, an active volcano has spent -- sent, rather, thousands of people running for safety. Nobody's been hurt, but the lava flow is closing in on some villagers' homes.

More than 100 people have died in the 12-day heat wave in California, most of those deaths in central California.

CNN's Sumi Das has more for us this morning.

(BEGIN VIDEOTAPE)

SUMI DAS, CNN CORRESPONDENT (on camera): The National Weather Service forecasts that California will see some relief from the heat in the next few days, but this heat wave has already taken a toll, killing more than 100 people. There have been reports that some county coroner's offices are running out of space, having to put two bodies on one gurney. They just can't keep up.

The Central Valley has been bearing the brunt of this heat wave, but all over the state, people are feeling the heat. In Stockton, California, residents experienced four straight days of 113-degree temperatures or higher. And in addition to the human toll, there has been a loss of livestock. There has also been damage to crops.

The state has taken precautions to protect workers who spend their days outside. Employers must provide outdoor workers with water and shaded areas if they want to take a break and are feeling the effects of the heat, or else they have to face stiff penalties.

Until temperatures normalize, residents are being urged to stay out of the heat, to take advantage of cooling centers, or if there's one available, take advantage of your local pool.

Sumi Das, CNN, Los Angeles.

(END VIDEOTAPE)

S. O'BRIEN: Good advice.

Let's get right to Chad Myers. He's got a look at the forecast.

Take advantage of your local pool, -- Chad.

MYERS: You know, I'll tell you, even when it's hot, if you're in the pool, you'll feel a whole lot better. And then when you get out, the evaporation helps again.

(WEATHER REPORT)

S. O'BRIEN: All right, Chad, thanks.

MYERS: You're welcome.

S. O'BRIEN: We'll watch it.

MYERS: All right.

S. O'BRIEN: Still to come this morning, he admits it doesn't look good, but Tour de France winner Floyd Landis says he did not cheat. We'll take a look at the allegations this morning; also, what this means for the future of the tour. And Wal-Mart says auf Wiedersehen to Germany. Carrie Lee explains in our business update. That's up next on AMERICAN MORNING. We're back in just a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: Latest now out of the Middle East.

Israel is hammering away at southern Lebanon again this morning. Air strikes on suspected Hezbollah targets have killed three people, wounded at least nine.

Israeli troops are also launching new strikes in southern Gaza while they're pulling out of northern Gaza. Twenty-nine Palestinians have been killed in the past two days.

And Secretary of State Condoleezza Rice says she's heading back to the Middle East. No actual timetable for her arrival. The secretary says it's important to lay the groundwork for an end to the fighting.

Slight drop in the markets, Carrie Lee tells us why in this morning's business headlines.

Good morning.

LEE: Hi, Soledad.

We've had really a muted session over the last couple of days. Yesterday, the Dow down just about 2 points or so, not too much happening.

What's happening today, we're going to get a second look at second quarter GDP, gross domestic product. This is a very important economic report to watch, measures all the goods and services produced in this country. And we're actually expecting a little bit of a drop from the first go around. As I said, this is the second look.

If the numbers come in too strong, well that would mean -- or strong, I should say, that will mean that the economy is growing and that could potentially mean we'll see more interest rate hikes. If the numbers come in a little weaker than expected, well then that could mean the opposite. So kind of good news/bad news here, depending on how you look at it, but this report coming out later this morning.

Ahead of those numbers, it is looking like a flat to slightly higher open for stocks. One drugmaker that lost a lot of ground yesterday, down over 8 percent, Bristol-Myers Squibb, the company is being investigated by the feds. The FBI yesterday raiding Bristol's offices, taking out a bunch of documents.

What's happening, they're looking into a deal over its best- selling drug Plavix. This is a blood thinner. The company apparently agreed to pay a generic drugmaker $40 million to hold off on their own version of the drug until the year 2011. Now criminal probes like this are pretty unusual. But still, "The Wall Street Journal" reporting that the FBI raided the offices. This would be a criminal offense if the company did mislead the government...

S. O'BRIEN: Why?

LEE: ... about the deal.

S. O'BRIEN: Because they have to file...

LEE: You can do things like this. You can make a deal with a generic, but you just have to be up front about it. You have to follow state rules. You have to let people know exactly what you're doing. So it doesn't mean that they...

S. O'BRIEN: It's not the crime, it's the lying about the crime?

LEE: It's the way you did it. Yes, if you're trying to cover something up or not be on the up and up about it.

S. O'BRIEN: Interesting.

LEE: Yes.

S. O'BRIEN: Interesting. That can't be good.

LEE: And then finally one other quick story here, Wal-Mart selling 85 stores in Germany. They tried to make a go in that country. There's some big competitors there, Aldi, Metro. And, no, we're not familiar with them here, but Wal-Mart basically pulling out. They're going to incur about a billion-dollar loss. They entered Germany in 1997 but just couldn't kick it off as we do here where there's a Wal-Mart in every town, or so it seems.

S. O'BRIEN: (INAUDIBLE). Certainly feels that way.

LEE: Yes.

S. O'BRIEN: All right, Carrie, thanks.

LEE: Sure.

S. O'BRIEN: Well, the Tour de France champ, Floyd Landis, is now asking the media and asking the public to not automatically assume that he has cheated his way to the Yellow Jersey. Landis says he doesn't know why tests show he has unusually high levels of testosterone.

But as CNN's Jim Bittermann reports, the latest scandal could cloud the tour's reputation for good.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT (voice-over): It was exactly the scandal the Tour de France was trying to avoid this year, but now Floyd Landis' racing team has announced that the 30-year-old from Pennsylvania has tested positive for excessively high levels of testosterone. What's more, the test sample was taken immediately after the day in which he pulled from eight minutes behind the leader to within less than a minute of first place.

At the race headquarters, organizers who started this year's race by announcing that the top riders were being eliminated from competition because of doping allegations, now had to announce that the winner could be out for the same reason.

CHRISTIAN PRUDHOMME, DIRECTOR, TOUR DE FRANCE (through translator): Before the second test, we can't take it for a given, even if it seems like that for some, it isn't, we need a second test. The first reaction, though, is that it is, of course, disappointing.

BITTERMANN: Tour officials pointed out that any sanctions against Landis would be applied by the International Cycling Federation, which will also await the results of the tests on the second sample.

In a telephone interview from an undisclosed European location, Landis denied any kind of doping; but he did say that he suffers from a thyroid condition which requires daily medication.

FLOYD LANDIS, TOUR DE FRANCE CHAMP: All I'm asking for from -- just from me is that I be given a chance to prove that I'm innocent. Cycling has a traditional way of trying people in the court of public opinion before they ever get a chance to do anything else, and I can't stop that. But I would like to be assumed innocent until proven guilty.

BITTERMANN: Across the cycling world, there was dismay at the new doping allegations.

ELLIS BACON, CYCLING EXPERT: People saw this winner, they saw him as being perhaps somewhat of a savior for professional cycling and for the Tour de France this year. And for this to happen now is, well, terrible.

BITTERMANN: Even if Landis does get to keep his title, doping has once again been associated with the Tour de France, something that officials here say just makes them more determined than ever to stamp it out.

Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

S. O'BRIEN: The morning's top stories are straight ahead, including why the Pentagon is deciding to keep more than 3,000 soldiers in Iraq longer than expected.

Then we're going to check back in with Miles. He is live on the Israeli-Lebanese border continuing our special edition of AMERICAN MORNING. We're back in just a short moment.

(COMMERCIAL BREAK)

S. O'BRIEN: Happening this morning, a fresh round of Israeli strikes in southern Lebanon. Lebanese officials say the strikes killed at least three people, wounded nine others.

In just a few hours, President Bush and British Prime Minister Tony Blair will hold a meeting at the White House. They're expected to discuss the Mideast crisis. Blair says he wants a U.N. resolution on the crisis in place by next week.

And in California, that deadly heat wave has now killed more than 100 people. For almost two weeks, temperatures have soared into the triple digits across the state.

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