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American Morning

High Alert; Possibility Of Peace?; Gulf Coast Battleground; Farewell To Barbaro; London Terror Trial

Aired January 30, 2007 - 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: Hi alert. Pilgrims targeted in Iraq. Fears this holy day could spark another round of deadly violence
ALINA CHO, CNN ANCHOR: Into the storm. Why hurricane battered New Orleans is becoming a key but controversial battle ground for the 2008 presidential contenders.

M. O'BRIEN: And the dynamic desktop. Microsoft launches Vista overnight. Plenty of fanfare, but early signs the software could be a sales flop.

CHO: And farewell to a champion. The emotional outpouring to say good-bye to Barbaro, on this AMERICAN MORNING.

M. O'BRIEN: Good morning to you. It is Tuesday, January 30th. I'm Miles O'Brien.

CHO: And I'm Alina Cho in for Soledad this morning. Thanks for joining us.

M. O'BRIEN: We begin in Iraq this morning and more violence rooted in a religious feud more than 1,300 years old. Attacks aimed at Shiite Muslims on this the holiest day of their year, Ashura. Dozens killed as they solemnly mark the death of the grandson of Muhammad, who Shiites consider his rightful successor. CNN's Michael Holmes live from Baghdad with more.

Michael.

MICHAEL HOLMES, CNN CORRESPONDENT: Good morning to you, Miles.

That's right. At least 35 people have been killed, well over 100 wounded. This is really what security services had feared, that Ashura would attract attacks from Sunni insurgents. There were five attacks I'll tell you about briefly.

Northeast of Baghdad, in Diala (ph) province -- often travel there -- there was a suicide bomber. Sixteen killed, 57 wounded. That targeting pilgrims at a Shiite mosque. There was a roadside bomb also in the same district, 11 killed, 33 wounded. Diala often a macrocosm -- called a microcosm of Iraq because of its mixed ethnic makeup.

The bus you mentioned was a mini bus of pilgrims headed to Katania (ph), which is here in Baghdad. Two cars attacking the mini bus, seven killed, seven wounded. A mortar hitting a Shiite mosque in the north off the capital, one killed, two wounded. Inside Katania, a mortar attack, nine wounded. So, yes, a bloody start. But there have been more deadly days around Ashura, but, still, quite an awful toll there.

Miles.

M. O'BRIEN: Michael, you've been sort of in the midst of all of this. What are people saying?

HOLMES: Yes. We have the opportunity to go to Katania. And I'll tell you, Miles, on a personal level, it's been three years since I've been able to walk reasonably freely along the streets here in Baghdad. There's 1 « million people or so in Katania to mark Ashura.

And we were able to walk with just five U.S. soldiers, but we were with the head sheikh, if you like, of the area. And it was a great atmosphere there of the ceremonial beating of heads with swords, bloody pilgrims walking along the streets chanting out religious slogans. And the mood of the people there was one of religion and nothing else. The idea of beating themselves is to share the pain of the Imam (ph) Hussein (ph), as you say, the grandson of the Prophet Muhammad, who was killed 1,400 years ago in a battle.

We saw tens of thousands of people on the streets. And, I say, extraordinary to just be down there. We heard before we got right down there, the mosque -- we were only 300 to 400 meters from the mosque, we heard probably six or seven rockets and mortars in the general area. Nothing near this very holy shrine. The third holiest in all of Shia Islam. But about a half an hour after we left, apparently one mortar did land in and around that area where the pilgrims were gathered and several people, as I say, nine wounded.

Miles.

M. O'BRIEN: Michael Holmes in Baghdad, thank you.

Alina.

CHO: Strong words for Iran this morning. In its possible influence inside Iraq, President Bush vowing the U.S. will respond if Iran supplies arms to Iraqi insurgent.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If Iran escalates its military action in Iraq to the detriment of our troops and/or innocent Iraqi people, we will respond firmly.

(END VIDEO CLIP)

CHO: To be clear, the president said he has no intentions of invading Iran. Two U.S. aircraft carriers have been moved into the Persian Gulf.

At least one skeptic this morning. Democratic Senator and presidential candidate Hillary Clinton. She sat down with Anderson Cooper on Monday and criticized the president's plan to send more troops to Iraq.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON, (D) NEW YORK: We need a comprehensive strategy. Everyone that I know of who has studied this believes there is no military solution. There has to be a political component and an international component. I see very little evidence that the administration is making progress pushing the Iraqi government on the political front.

So I don't see how we can expect just putting more troops in to really get us where we can avoid any kind of bad outcome because we're not on a path to achieve that. We need to put more pressure on the Iraqi government, which is why I have said, if we're going to cut troops funding, let's cut the funding for the Iraqi troops or threaten to do so to get their attention focused on what they have to do. And, finally, we have to have an international process that looks at how to prevent what's happening in Iraq from spilling over.

(END VIDEO CLIP)

CHO: Senator Clinton, and Arizona Senator John McCain were in San Antonio Monday for the opening of a rehabilitation center for wounded troops.

And this reminder, you can watch Anderson Cooper 360 weeknight at 10:00 Eastern Time.

A cease-fire appears to be holding in Gaza this morning. Several days of violence between Hamas and Fatah have killed at least 29 people. CNN's Atika Shubert live in Jerusalem this morning.

Atika, good morning.

ATIKA SHUBERT, CNN CORRESPONDENT: Good morning, Alina.

Well, that truce is holding, but it's very shaky. There was still gunfire happening earlier this morning. But the violence does seem to have subsided for now. Shops are still closed, however people not wanting to venture outside too much until they know for sure that the violence has stopped.

Now both sides have agreed to take their armed groups off the streets and agreed in principle to continue with negotiations, this time in Saudi Arabia. Those negotiations, of course, to form a coalition government between Fatah and Hamas. Still a lot of details to be worked out and there has been no date set for those talks yet.

Alina.

CHO: So, Atika, this is a shaky cease-fire. How close are the two sides to forming a coalition government?

SHUBERT: Not so close yet. They're still stuck on a few details. Even though they agree in principle to having a coalition government, there's still a lot of debate over which faction will control which ministry. In particular, the interior ministry. This is a critical position because it also controls a lot of the security forces within the government. So this is something that Fatah and Hamas are arguing over now.

CHO: Atika Shubert live in Jerusalem for us.

Atika, thank you.

Miles.

M. O'BRIEN: Harsh words this morning. Critical of the White House responds to the Gulf Coast disaster after Hurricanes Katrina and Rita. A Senate delegation there yesterday holding hearings on how to get more help to the region. Democrat Mary Landrieu among them.

(BEGIN VIDEO CLIP)

SEN. MARY LANDRIEU, (D) LOUISIANA: I often think we would have been better off had the terrorist blown up our levees. Maybe we would have gotten more attention. But we blew them up ourselves. I mean, not literally.

(END VIDEO CLIP)

M. O'BRIEN: Tough talk and the calls for action spilling over into the race for the White House as well. AMERICAN MORNING's Sean Callebs explains.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT, (voice over): All this devastation may no longer be front page news, but it is being used as a political stage by candidates running for president in '08. John Edwards stood in the lower ninth ward last month to announce his run for the Oval Office. Barack Obama was in New Orleans yesterday as a member of the Senate committee looking into the slow pace of recovery.

SEN. BARACK OBAMA, (D) ILLINOIS: The president came down and he said, we will do what it takes. We will stay as long as it takes to help citizens rebuild their communities and their lives.

CALLEBS: Critics point out the nation heard a lot of this in the weeks and months following Katrina. But during the State of the Union, President Bush was talking about something else.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: In Iraq . . .

Of Iraq . . .

To Iraq . . .

CALLEBS: On the subject of Katrina.

OBAMA: Not a single word. Not one word in the president's State of the Union Address about New Orleans.

CALLEBS: This time, New Orleans residents won't be an easy sell.

LARRY WILLIS, NEW ORLEANS RESIDENT: This is basically about where we had it before the storm.

CALLEBS: Listen to Larry Willis, who was finally getting ready to move back into his Lakeview home.

WILLIS: When they politicians come in here and use it to go on TV, to put ads, they're just using the city of New Orleans for, you know, for their advantage, not for us.

CALLEBS: Silas Lee is a political consolidate in New Orleans. He says the government response to the disaster still looms large.

SILAS LEE, POLITICAL CONSULTANT: People still remember the horror of residents waiting for food, for water and the slow response. So that area is still going to be a strong, symbolic image.

CALLEBS: So candidates, pick up debris.

OBAMA: So what exactly are they doing right here.

CALLEBS: And tour flash points of disaster. But for people like Willis, it's going to take a lot more than that this time around.

WILLIS: I'm frustrated at the whole entire system, the whole entire political system.

(END VIDEOTAPE)

M. O'BRIEN: AMERICAN MORNING's Sean Callebs with that report. Senator Landrieu will chair a new Senate subcommittee to oversee federal disaster recovery.

Happening this morning.

Vista, Microsoft's new operating system, on sale as of midnight. The New York launch featured acrobats high above Time Square. While there are no long lines of people camped out waiting to buy it, Microsoft says it expects 200 million copies will be sold in the next couple of years. Microsoft Chairman Bill Gates drops by our studio in the 8:00 a.m. Eastern hour and he'll tell us why it cost $6 billion to come up with this software.

Trouble for Hubble. One of the cameras on board the orbiting telescope has failed and NASA is not optimistic it can be fixed. The advanced camera for surveys is a favorite of astronomers. It was installed five years ago. NASA hoping to restore some of its capability next month. Space shuttle astronauts are already slated to fly to Hubble next year for a repair mission.

No strike against British Airways. The threatened walkout by cabin crews is off after marathon negotiations. British Airways says it expects a normal flight schedule but some flights may not have full food service.

(BEGIN VIDEO CLIP)

JIM WILSON, POWERBALL WINNER: Absolutely astonished. Couldn't believe it and still don't.

SHIRLEY WILSON, POWERBALL WINNER: I said, Jim, you better come down here and look at this. And we still didn't believe it.

(END VIDEO CLIP)

M. O'BRIEN: Ah, seeing is believing. America's newest millionaires Jim and Shirley Wilson of St. Louis, and their sons, picking up a check for $254 million. It was the Powerball jackpot. Mr. Wilson, 84 years old. A retired electrician and World War II vet. I assume he took the lump sum at that age. He won the jackpot o a $5 ticket. One $5 ticket. And as promised, he will split it five ways with his wife and kids. Congratulations.

And there she is, Miss America. Lauren Nelson crowned last night in Las Vegas. The second Miss Oklahoma to win in a row. What's going on in Oklahoma? Something in the water there.

CHO: I guess.

M. O'BRIEN: The wind comes whipping down the plain and all.

Anyway, Nelson would like to be a Broadway star. She gets a $50,000 scholarship. But then, of course, could make a lot more in appearance fees.

CHO: Kentucky derby winner, Barbaro, is being remembered this morning as a champion and a fighter. The beloved thoroughbred was euthanized Monday after a major setback in his recovery from a leg injury about eight months ago. CNN's Jason Carroll has more.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT, (voice over): It was not supposed to end this way. Not for a champion. Barbaro's tale was a story of beating the odds, of success. But now, also one of disappointment and sadness.

GRETCHEN JACKSON, BARBARO'S CO-OWNER: I'd like now for all of us to say a prayer for Barbaro and for all those that have loved him so much. Certainly grief is the price we all pay for love.

CARROLL: Heartbreak from Barbaro's owners and from his doctor, who early Monday had to euthanize the four-year-old colt after complications from surgery on his leg.

DEAN RICHARDSON, BARBARO'S DOCTOR: We stated, and we meant what we said, that if we couldn't control his discomfort, we wouldn't go on. And that's why the decision was made.

UNIDENTIFIED MALE: Barbaro wins by seven.

CARROLL: Barbaro captured last year's Kentucky Derby, racing in a way that left fans breathless.

STEVEN CRISTO, DAILY RACING FORM: Well, Barbaro was a terrifically talented racehorse. We'll never really know how good he might have been.

CARROLL: No horse had won the coveted triple crown since Affirmed in 1978. The nation, it seemed, put their hope and heart in Barbaro. But during his second race for the title, the Preakness, a devastating blow, Barbaro shattered his right hind leg. An injury so severe, most horses would have been put down right away. Not Barbaro. Doctors fused his joints, operating several times on both legs over eight months. It seemed fitting a horse that fought so hard and captured the hearts of so many would survive. His tale was to have a Hollywood ending like Sea Biscuit or the Black Stallion. But real champions don't always finish the way we want them to.

RICHARDSON: I think this horse was loved because, you know, he was a great athlete. Everybody knew he was a great athlete. And people love greatness.

CARROLL: Jason Carroll, CNN, New York.

(END VIDEOTAPE)

CHO: We were pulling for him. The University of Pennsylvania's new Bolton Center, where Barbaro was treated, has raised more than a million dollars since June for the Barbaro Fund. And that money will be spent on much needed surgical equipment. As one of our colleague in the journalist community said, it was like losing a friend.

M. O'BRIEN: It was.

CHO: I mean we were really watching and pulling for him.

M. O'BRIEN: A real connected there.

CHO: That's right.

M. O'BRIEN: Yes, anyway. We will miss him.

Coming up, an arctic blast throws Florida into the deep freeze. How long will it last? Chad Myers with a look.

Plus, terror on tape. Shocking new video this morning released from a terror trial happening today in London. We have it.

And Tyra Banks, fat? That's what the tabloids are saying. We'll show you the photos and hear what Tyra has to say about that, ahead on AMERICAN MORNING. We've got the skinny on everything because we have the most news in the morning.

(COMMERCIAL BREAK)

M. O'BRIEN: The most news in the morning right here. The big stories we're watching for you right now. As many as 35 killed in attacks in Iraq overnight. You're looking at some live pictures, by the way, of some of the religions commemorations today. It is the Shiite holiday of Ashura. And, obviously, a lot of concern about violence. Some of that concern coming true, unfortunately.

And President Bush traveling to Peoria, Illinois, this morning. Will it play in Peoria? Well, he's talking about free trade. We'll see.

About quarter past the hour. Chad Myers at the CNN Weather Center.

Deep freeze in the south and what's going on in the Midwest?

(WEATHER REPORT)

CHO: Shocking new video this morning. Surveillance pictures have just been released from a terror trial happening in London. Six men are accused of trying to blow up subway trains and a bus in July of 2005. International security correspondent Paula Newton live in London for us.

Paula, good morning.

PAULA NEWTON, CNN CORRESPONDENT: And good morning, Alina.

Jurors here continue to get an eyeful in court. Prosecutors claim the latest security camera footage to be released shows a would- be suicide bomber caught in the act.

(BEGIN VIDEOTAPE)

NEWTON, (voice over): The images are startling. What prosecutors say is a suicide bomber in action calmly, calmly, silently boarding a double-decker bus armed with a homemade bomb in his backpack. This security camera footage just released by Scotland Yard shows the suspect's climb up to the top deck, walk to the back and then sit down.

Within a few minutes, prosecutors say, it happened. The moment they allege Muktar Said Ibrahim detonated his bomb, fully expecting to blow up the bus. Witnesses say there was a loud bang. It sounded like marbles or glass crashing to the floor and then a burning smell.

Remarkably, the video doesn't convey panic, not even from the suspect, who gets up as heads for the exit even as fellow passengers stare at him suspiciously. Ibrahim was arrested days later and is now on trial for conspiracy to murder, along with five co-defendants. They all deny the charges.

The bus driver, Mark Maybanks (ph), told jurors Monday, he then stopped the bus, let everyone out, including the suspect, and ventured to the top deck. He describes finding an oozing knapsack. It looked like butter, he said, with screws and metal scattered over it. Forensic experts have already testified this is no harmless mixture. The crude cocktail of hydrogen peroxide and flour could have caused death, injury, loss of limbs had it ignited properly.

The July 21, 2005, security footage, now released, is a chilling realtime depiction of what prosecutors say could have been a deadly follow-up to the July 7th terror attacks in London. Other security footage from a subway car, also on July 21st, claims to show the exact moment when a would-be suicide bomber detonates his bomb. The plots, just two weeks apart, were similar, prosecutors allege. Three subway cars, one bus.

(END VIDEOTAPE)

NEWTON: But they also claim this was no copycat plan but a determined terrorist plot, months in this making, that was, Alina, thankfully botched.

CHO: Thankfully so. Paula Newton live in London for us.

Paula, thank you.

Miles.

M. O'BRIEN: Coming up, one retailer trying to explain why it waited a month to tell shoppers they might be at risk for identity theft. We're "Minding Your Business."

Plus, Tyra Banks fires back after being called America's next top waddle.

CHO: Mean.

M. O'BRIEN: Ouch! What she has to say to the so-called tabloid fat police, ahead on AMERICAN MORNING. We're fat with news.

(COMMERCIAL BREAK)

M. O'BRIEN: Most news in the morning right here.

China confirming overnight talks will resume next week aimed at ending North Korea's nuclear weapons program

Microsoft's new Vista operating system on sale as of midnight. Six and a half hours ago now. Thomas' (ph) improved security. And it has all kinds of 3-D graphics, parental controls and yada, yada. We'll have more on that later.

CHO: Except (ph) I don't understand.

Have you heard about this one? Tyra Banks, the host of America's "Next Top Model," is speaking out about her weight. If you pick up a copy of "People" magazine this morning, you'll see Banks on the cover there in a swimsuit. It's in response to Tabloid photos like these showing Banks and unflattering headlines like "America's Next Top Waddle." Why do you have to go there? Banks spoke out about it to Larry King last night.

(BEGIN VIDEO CLIP) TYRA BANKS, TALK SHOW HOST: It wasn't that it was embarrassing, because I don't think it's a reflection of what my body is right now, although I do think one day it will be a reflection of my body because I like to eat. I'm not obsessed with working out. So it wasn't so much of an embarrassment, it was just like, what is that? And it saddens me because I felt there was such a rejoicing. But I think I understand it. For so many years I was this high fashion model and, you know, putting this image out there that's so difficult to live up to. And so then these pictures come out and it's like, oh, wow, you know, look at her.

LARRY KING, HOST, "LARRY KING LIVE": Gotcha.

BANKS: Gotcha. And it's like, no, that's not a reflection of my body. But if it was, I'd come out and say, yes, you guys, that's me. But for it to not be is the thing that's so crazy.

(END VIDEO CLIP)

CHO: Likes to eat and not obsessed with working out, I can relate to that. Banks also has a message for girls. She says the photo of her, guess what, is not ugly. She'll have more to say on her own show later this week.

And a reminder. You can catch "Larry King Live" every night at 9:00 Eastern Time.

Miles.

M. O'BRIEN: She looks good to me.

So what will the Fed do? That's what is on the minds of people on Wall Street today. Twenty-five minutes past the hour. Ali Velshi's back.

Welcome back.

ALI VELSHI, CNN CORRESPONDENT: Good morning, Miles.

I just want you to know, this is an absolutely accurate reflection of what my body is right now.

We can expect markets to muddle along for the next couple days, as it has already this week, because the Fed is having its first meeting in Washington. So you can see there, the Dow just gained about three points yesterday. And this what typically happens as we're waiting a decision from the Fed.

It's the first meeting of the year. For the last four meetings of last year, the Feds kept interest rates unchanged. And, of course, interest rates the Fed sets affect variable interest rate loans, adjustable rate mortgages and things like that. And right now with the housing situation being the thing that most people are worried about in terms of the economy for 2007. There will be a lot of people very closely watching what the Fed decides to do. They'll make an announcement at about 2:00 p.m. tomorrow Eastern. We'll have live coverage of that on CNN.

Now we are looking at stocks. We're still in the middle of earnings season. Verizon came out with its earnings, saying it added 2.3 million subscribers in the last three months, and they're mostly the monthly kind, which are better than the pay-as-you-go kind because the monthly kind, as you know, don't switch as easily. There are penalties to switching.

Also TJX Companies, the parent company of T.J. Maxx and Marshalls and Home Goods, waited about a month before telling everybody in mid January that they had had a computer breach, a security breach. They've now taken out ads in newspapers. The CEO has recorded a message that can be seen online saying that by waiting they were able to sort of contain that breach and not make it worse than it was. Not everybody believes that to be the case, but that is their answer to things, including a lawsuit from people who were affected by this.

Miles.

M. O'BRIEN: So by waiting and not telling people, they were better able to contain it?

VELSHI: That's what TJX says, yes.

M. O'BRIEN: OK. I guess I don't follow.

All right, thank you, Ali.

VELSHI: OK.

M. O'BRIEN: Top stories of the morning are coming up next.

The war at home over the war in Iraq. President Bush says he's the decision-maker. So what's the point of a non-binding resolution from Congress?

And an outpouring of grief for an American champion. Remembering Barbaro ahead on AMERICAN MORNING. The most news in the morning right here.

(COMMERCIAL BREAK)

O'BRIEN: Tough talk. President Bush tells Iran to stay out of Iraq.

CHO: War and politics. The Senate debating competing resolutions on the president's plan to send more troops to Iraq. What good will it do?

O'BRIEN: And the finish line no one wanted to see just let, the emotional decision to say good-bye to Barbaro on this AMERICAN MORNING.

Welcome back, Tuesday, January 30th.

I'm Miles O'Brien. CHO: And I'm Alina Cho, in for Soledad this morning.

Thanks for joining us.

Here's what's happening this morning.

(NEWSBREAK)

O'BRIEN: Strong words for Iran this morning and its possible influence inside Iraq. President Bush vowing the U.S. will respond if Iran provides arms to Iraqi insurgents. He was interviewed on National Public Radio.

(BEGIN AUDIO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If Iran escalates its military action in Iraq to the detriment of our troops and/or innocent Iraqi people, we will respond firmly.

(END AUDIO CLIP)

O'BRIEN: The president said he has no intentions of invading Iran. Two U.S. aircraft carriers are currently in the Persian Gulf.

The Senate will debate competing resolutions this week about the president's plans to surge more troops into Iraq. They're non-binding resolutions, so why bother?

AMERICAN MORNING'S Bob Franken live from Washington with more.

Good morning, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning, Miles.

Well, Washington, in its unique way, is all a twitter about these resolutions. But it's a good question. What is the bother all about?

(BEGIN VIDEOTAPE)

BUSH: And in that I'm the decision maker, I had to come up with a way forward that precluded disaster.

FRANKEN (voice over): The president makes it clear he's the commander in chief. The Constitution say he gets to decide how he uses the troops in his command. But the Constitution also gives Congress the power of the purse.

However, there's no serious plan to put off funding for the additional troops. So why bother with non-binding resolutions?

UNIDENTIFIED MALE: They are largely ways in which members of Congress get on record to indicate that they hear that the public doesn't like the war, doesn't like the way it's going, doesn't like the president.

FRANKEN: So what? The Democrats won control of Congress in great part because of opposition to the war.

UNIDENTIFIED MALE: What they can do is stop the war. They can simply pull the funding.

FRANKEN: So, is a non-binding resolution merely taunting from the safety of the sidelines instead of really mixing it up by debating whether to cut off funding and risk being held accountable?

UNIDENTIFIED MALE: There are many in Congress that want to make certain that when this war fails they don't own a single part of it. And they can do that by continually appropriating money and allowing the war to go on.

FRANKEN: New Democratic congressional leaders say cutting off funding would further endanger troops already sent to Iraq if they were to take that huge step. And they're already being stung by claims from the president and his supporters that, non-binding though it may be, congressional action still has a pretty powerful effect.

ROBERT GATES, DEFENSE SECRETARY: It's pretty clear that a resolution certainly emboldens the enemy and our adversaries.

FRANKEN: But Democrats say it's the president's policies that have emboldened the enemy.

SEN. JOSEPH BIDEN (D), DELAWARE: And it's about time the president understand, virtually no one, no one agrees with the way he's conducting this war.

(END VIDEOTAPE)

FRANKEN: And those who support the non-binding resolution approach say it is a precursor, a shot across the bow, that there could be de-funding legislation and resolutions that come up later. In other words, Miles, maybe then no more Mr. Nice Guy.

O'BRIEN: All right. Well, what's the likelihood of that happening? It has happened before, has it not?

FRANKEN: It has indeed. It has happened since the '70s, at the end of the Vietnam War, it happened with Cambodia. It happened in Central America, giving rise to the Iran-Contra crisis.

It's happened again and again. In Somalia it happened, in Haiti. There's a long history of this.

O'BRIEN: Bob Franken in Washington.

Thank you -- Alina.

CHO: A sad end for fans of Barbaro, the Kentucky Derby winner who had become an American idol. His doctors and owners made the emotional decision to put him down Monday after a long fight. While Barbaro never won horse racing's Triple Crown, he did win the hearts of millions.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I really didn't think it was appropriate to continue his treatment because the probable outcome was just so poor, and he would have to go through basically an unmanageable amount of discomfort.

JULIE ROVNER, NPR NEWS: They were able to keep him comfortable, to keep him bright, to keep him happy, despite these injuries. And they said all along that when they couldn't keep him comfortable they were going to stop. And I think that was clearly the point that they got to.

GRETCHEN JACKSON, BARBARO'S OWNER: I hope that we can turn our love into an energy that supports horses throughout the world, and not just in our own country and not just the thoroughbred that we all loved so dearly, but all horses.

UNIDENTIFIED MALE: Well, here at the off-track (ph), when he'd come on, on this screen, you know, everybody just went absolutely wild.

UNIDENTIFIED FEMALE: Heartbroken. I mean, he was a great champion. His owners tried to do what they could for him. His trainer was behind him all the way, his jockey was, and he had a whole country behind him.

UNIDENTIFIED MALE: He did develop fairly severe laminitis in both front feet, so that essentially left him -- that left him with not a good leg to stand on.

JACKSON: We're lucky to have experienced him, we're lucky to have had a horse like him.

(END VIDEO CLIP)

O'BRIEN: Coming up, we're watching live pictures from Baghdad. Today is the Shia Muslim holy day of Ashura. Some say Ashura is where the Muslim civil war really began.

We'll take a closer look.

And girl trouble. One country's baby dilemma and what it plans to do about it.

You're watching AMERICAN MORNING, the most news in the morning for boys and girls.

(COMMERCIAL BREAK)

O'BRIEN: The most news in the morning right here on CNN. Stories happening right now.

Hubble trouble. One of the cameras on the space telescope has failed. NASA is not very optimistic it can be fixed.

And Microsoft's highly-anticipated Vista operating system is now in stores, following a midnight launch. No lines to be seen -- Alina.

CHO: Thanks, Miles.

We've been watching live pictures coming in from around the world of the Shia Muslim holiday of Ashura. There you see them, these live pictures of ceremonies in Baghdad.

There are some serious security concerns, as you might imagine. This holiday is at the center of the often violent split in the Muslim world between Sunnis and Shiites.

AMERICAN MORNING'S faith and value correspondent, Delia Gallagher, is here to explain.

So, Delia, five attacks in Iraq this morning alone, it coincides with this Muslim holy day. So what is Ashura all about? Explain that to us.

DELIA GALLAGHER, CNN FAITH AND VALUES CORRESPONDENT: Well, Ashura, as you said, is the Shia religious holiday commemorating the death of Hussein. Hussein was the grandson of Mohammed. And it really sort of cements the Shia identity as against the Sunnis, because you'll remember that the traditional division between the two has to do with succession after Mohammed. And so, the Shias believe that it had to go through the bloodline.

CHO: So this is where there was the split?

GALLAGHER: Yes. This is -- this is bloodline of Ali and then Hussein, who's the grandson. And this is why it's such a big deal that Hussein was killed and martyred. And really, in practical terms, it has to do with kind of developing this saint-like reverence for Hussein that is -- that is typical of the Shias.

You will notice, for example, that they have images of Hussein and of Ali in Iraq, in Iran, in Shia households, which is something that Sunnis won't have. You know, Islamic art has the scripture, the writing, but they don't have images of Mohammed, for example.

CHO: I see.

And let's talk a little bit about this group that claimed responsibility over the weekend for the big attack on Sunday. Soldiers of Heaven, have you heard of this group. What are they about?

GALLAGHER: Well, this is an interesting group. It's essentially a faction, they're saying, made up of Shias and Sunni. But if you go back to Hussein and this idea of the bloodline, the Shias believe that there was succession after Hussein, still of the bloodline of Mohammed because Hussein had a son, up until what they call the 12th imam, al- Mehdi (ph).

And they were -- the 12th imam, when he was 4 years old, disappeared. And the Shias have been waiting ever since for the return of this 12th imam. That is a Shia kind of... CHO: And that would bring peace and redemption?.

GALLAGHER: And this is going to bring in a period of peace and justice.

So, this faction of Soldiers of Heaven, also waiting for the return of this imam, think they can usher in this period by killing the Shia leadership, essentially, al-Sistani, and anybody else, and help usher in that period of peace and the return of this 12th imam.

CHO: Well, I better understand it now. So thank you, Delia, for that explanation.

GALLAGHER: You're welcome.

CHO: Faith and Values Correspondent Delia Gallagher, live for us.

Thank you -- Miles.

O'BRIEN: About a quarter of the hour. It's bitter cold in the Northeast. Chad Myers at the weather center with more on that.

Good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Miles.

(WEATHER REPORT)

O'BRIEN: Coming up, startling new images of what investigators say is a suicide bomber in action. We're going to go to London for the latest on a terror trial there.

Plus, one country's baby dilemma: too many boys, not enough girls.

That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Here's a look at what CNN correspondents all around the world are covering today.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT: I'm Paula Newton in London, where six men are on trial in connection with a failed terror attack in July, 2005. Jurors continue to be shown dramatic security camera footage that prosecutors say show would-be suicide bombers caught in the act. The latest shows one suspect boarding a double-decker bus with a backpack, and prosecutors say it shows the exact moment when that bomb detonated but failed to explode.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE) JOHN VAUSE, CNN CORRESPONDENT: I'm John Vause in Beijing.

China is facing a critical shortage of girls. Government officials say so many boys are being born that by 2020, men could outnumber women by 30 million, an unintended consequence of the strict one-child policy and a traditional preference for boys over girls. And studies are warning it could all lead to social upheaval with a dramatic increase in crime, especially kidnappings of women and girls to be sold as brides and sex workers.

(END VIDEOTAPE)

O'BRIEN: For more on these or any of our top stories, log on to our Web site, CNN.com.

CHO: Coming up, McDonald's is changing the recipe. Did you notice? We'll have details coming up.

And is Delta ready for a merger?

We're "Minding Your Business."

That's ahead on AMERICAN MORNING.

The most news in the morning right here on CNN.

(COMMERCIAL BREAK)

CHO: The most news in the morning right here on CNN.

New video just in from Iraq. This is the scene of one of several attacks that killed 35 pilgrims overnight. The victims marking the Shiite religious holiday of Ashura.

And China confirming overnight that international talks aimed at ending North Korea's nuclear weapons program will resume next week.

Well, after years of testing, McDonald's has come up with a trans fat-free cooking oil for its French fries.

Are you listening, Miles? It's our favorite food.

The fast-food chain will phase in the new oil at all of its U.S. locations in the coming months. It's already being used in more than 1,200 McDonald's nationwide. And they say if you haven't noticed, well, that's a good thing.

O'BRIEN: So that means the fries are good for you now, right?

CHO: And tastes good, too. That's part of the pitch.

O'BRIEN: They're good for you, because, gosh, I do love them. All right. Good to hear they found a new formula.

Delta keeps saying no to a deal, but the ante keeps changing on the whole thing. It's a little bit -- about five minutes before the hour. Ali Velshi "Minding Your Business."

Hello, Ali.

ALI VELSHI, CNN CORRESPONDENT: Good morning, Miles.

The offer that US Airways made for Delta to assume -- to acquire Delta expires on Thursday, and Delta is sticking to its guns, saying, we are not interested in this deal. However, you know, a lot of Delta's investors and creditors have said the deal sounds pretty good.

Right now it stands at about $10 billion in value. US Airways has suggested it could go up to $11 billion, or there about, in value. And Delta's got to come up with a really good reason why they don't like this deal, particularly since they could use the cash.

So, Delta is saying it's not ruling out a merger. A lot of folks think that there have to be mergers in the U.S. airline industry. It just doesn't want one right now, not necessarily with US Airways. It wants to emerge from bankruptcy on its own and will consider these -- these mergers afterwards. As you know, this is probably going to be a business highlight of this year, airline mergers and whether they might or might not happen.

Now, US Airways seems to have another bit of an issue on its hands, and that is that it doesn't have the appropriate state license to serve liquor in New Mexico. Now, I've got to tell you, I didn't know much about this sort of thing, but apparently these airlines have to have state liquor licenses.

This came about because a man allegedly got off a flight, a US Airways flight in Albuquerque, got involved in a car accident, and as they were investigating the accident, they felt that he was over- served on this flight, and US Airways doesn't have the appropriate liquor license. So, on Monday, state legislators -- state officials in New Mexico served US Airways at that Albuquerque International Airport with a cease and desist order.

US Airways has said that they will respect this order until such time that this matter is resolved. So, for now, if you're on a flight to or from Albuquerque, or anywhere in New Mexico on US Airways, you're not getting served -- Miles.

O'BRIEN: Bring your own, I guess.

VELSHI: Yes.

O'BRIEN: Is that legal now?

VELSHI: No.

O'BRIEN: Can you bring your own?

VELSHI: Absolutely no way.

O'BRIEN: All right. Never mind.

Thank you, Ali. See you in a bit.

VELSHI: OK.

O'BRIEN: Alina.

CHO: You're always trying to cause trouble.

O'BRIEN: Yes.

CHO: All right. Some of the other headlines of the morning.

One of CNN.com's most popular stories right now, take a look at this World War II vet, 84 years old, wins $254 million lottery, the 10th biggest in the world. His name is Jim Wilson, and his wife Shirley -- they're so cute. Their three sons, too.

They'll share that big jackpot. I hope they take the lump sum there.

He brought the $5 quick pick about an hour before the drawing last week around St. Louis. And two of the sons -- two of the three sons just lost their jobs. So this money will definitely come in handy.

O'BRIEN: That should take care of things pretty well.

CHO: Yes. We hope so.

O'BRIEN: We hope -- we wish them well.

All right. Here's a story we hope you didn't miss. And if you did, check out this headline.

This is the "Juneau Empire." We read it every morning here.

"Eagle Causes Power Outage." Yes, you heard us right, "Eagle Causes Power Outage."

An ambitious bird went to a landfill, saw the head of a deer, thought, hmm, there's lunch, dinner, and maybe breakfast for tomorrow, and then some. Tried to pick it up and fly with it.

We're told an eagle can fly with about half its weight, carrying half his weight. An eagle...

CHO: Did you ever figure out the weight?

O'BRIEN: Yes. Well, it's about 20 pounds for an eagle, so about 10 pounds of payload, as we say in the airplane business. Obviously he was over gross...

CHO: That's right.

O'BRIEN: ... flew right into a power line, ending his need to eat ever.

CHO: Oh boy.

O'BRIEN: And the power crews went out and tried to figure out what caused this power outage there, 10,000 people in the dark, and found the eagle carcass and the head of the deer, putting two and two together.

We tried to get our Juneau bureau on the line, but we don't have one. And so we managed to get an artist rendering off the Web of what this might look like.

CHO: No you didn't. Oh man.

O'BRIEN: That's that eagle and the deer there.

CHO: I think it's safe to say only in Alaska, right? With something like this?

O'BRIEN: That is an "only in Alaska" moment for sure.

CHO: All right.

O'BRIEN: All right. We're coming up at the top of the hour. Chad Myers at the CNN weather center with a little look at the weather.

(WEATHER REPORT)

O'BRIEN: Good morning, Tuesday, January 30th.

I'm Miles O'Brien.

CHO: And I'm Alina Cho, in for Soledad this morning.

Thanks for being with us.

O'BRIEN: We begin with the president's warning for Iran to stay out of Iraq.

CNN's Suzanne Malveaux live at the White House with more.

Good morning, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Miles.

What you're hearing is really two messages from this White House. One, a very stern warning to Iran to try to get it to cooperate. The other one, of course, is really a message to the American people, as well as some worried allied in the region. That is, that the Bush administration is not engaged in war mongering.

This was President Bush on National Public Radio yesterday.

(BEGIN AUDIO CLIP) BUSH: If Iran escalates its military action in Iraq to the detriment of our troops and/or innocent Iraqi people, we will respond firmly.

(END AUDIO CLIP)

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