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CNN Live At Daybreak

School Shootings; New Intelligence Leak; Crude Questions

Aired November 09, 2005 - 06:31   ET

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

ANNOUNCER: From the Time Warner center in New York, this is DAYBREAK with Carol Costello.
CAROL COSTELLO, CNN ANCHOR: And good morning to you. Thank you for waking up with us. Jacqui will be along in a minute with your forecast.

Also coming up this half-hour, the cost of gas. We'll talk with one expert who tries to answer some of our crude questions.

And why is Muhammad Ali coming to the White House today? We'll take a look.

But first, "Now in the News."

A new leak investigation may be in the works. Republican congressional leaders want to know who leaked classified information about CIA secret prisons for suspected terrorists. They say last week's disclosure published in "The Washington Post" could damage national security. I'll talk to a political analyst about this in just about five minutes.

In the fight for Iraq, U.S. and Iraqi troops have just about cleared out insurgents from a town near the Syrian border. Operation Steel Curtain involves more than 3,000 U.S. troops and 550 Iraqi troops. The fighting left one Marine and at least 36 insurgents dead.

Violence flared again in parts in France last night, although there were fewer clashes with police. It is the 13th straight night of violence. Several cities now have curfews.

Let's head to the forecast center to check in with Jacqui.

(WEATHER REPORT)

COSTELLO: Tennessee authorities are trying to figure out why a 15-year-old boy gunned down three school administrators, killing one of them. It happened at Campbell County High School in Jacksboro.

Our David Mattingly is there. He joins us live this morning.

What's the latest?

DAVID MATTINGLY, CNN CORRESPONDENT: Well, Carol, administrators and investigators have been talking overnight. And we're expecting some solid answers today as to exactly what happened in this high school yesterday. One of the prime scenarios they've been looking at is that administrators were tipped off yesterday that the teenager had a gun in the school. That's why he was brought up to the office and confronted by the administrators. And that's when the shooting took place.

Again, that has not yet been confirmed, but that is one of the prime scenarios that investigators have been looking at in this incident.

We have learned also that a search has been conducted of the teen's home, and some evidence has been collected there. They haven't said what exactly they have taken yet.

They have also questioned other people outside the school, trying to find out why and how this teen got the handgun and brought it to school.

So, again, more -- plenty of questions, and we're hoping today that investigators will come up with the answers that they're hoping to have and possibly file charges against this 15-year-old today.

COSTELLO: You know, David, in looking at these pictures of this 15-year-old being arrested, he has blood on his yellow t-shirt. He looks so calm.

MATTINGLY: That was one thing that was remarked as people observed him was that after it was over and he was subdued here at the school was that there was virtually no struggle from him at all. The sheriff at one time said that he didn't see any signs of remorse or any sort of signs of alarm from him either almost emotionally.

And students who know him say that he had had a troubled past. But, again, authorities have not yet publicly confirmed that.

There's a really big and complicated picture for such a small town. So many people have connections to this school, to the administrators and to the young man as well that everyone is having a difficult time just trying to come to grips with what's happened here, truly a tragedy in a small town.

COSTELLO: David Mattingly reporting live from Jacksboro this morning. Thank you.

Now on to politics. It was a pretty good day for the Democrats in New Jersey and Virginia. Actually, it was a great day.

In the Virginia governor's race, Democratic Lieutenant Governor Tim Kaine beat out Republican Jerry Kilgore.

In New York, Democratic Senator Jon Corzine has won the governor's office, beating Republican Douglas Forrester.

In New York City, Republican incumbent Mayor Michael Bloomberg easily won a second term, beating Democrat Fernando Ferrer. And in California, voters overwhelmingly rejected all four of Governor Arnold Schwarzenegger's ballot proposals, including his centerpiece plan to rein in state spending. The vote was seen as a test of the governor's leadership.

The Justice Department will now decide if another leak of classified information warrants a criminal investigation. This time, it's the leak to "The Washington Post" about secret CIA prisons holding terror suspects. Republican leaders have requested a congressional investigation.

Quoting a letter from majority leaders, "If accurate, such an egregious disclosure could have long-term and far-reaching damaging and dangerous consequences and will imperil our efforts to protect the American people and our homeland from terrorist attacks."

Joining us now from Washington is Amy Walter, senior editor of the "Cook Political Report."

Good morning, Amy.

AMY WALTER, "COOK POLITICAL REPORT": Good morning, Carol.

COSTELLO: So -- I don't know. I'm cynical. It's almost like a catfight between the Republicans and Democrats, because the Democrats want an investigation into the CIA leak. And, of course, that involves Republicans.

WALTER: Right. Look, there is a constant battle right now by both sides to try to define this debate here, define the terms on the war on terrorism, what's going on in Iraq and the intelligence that we've had to do both.

For the last few years, obviously it's been the president who has defined this debate. Democrats now are the ones who are trying to put Republicans on their heels, have them respond to what Democrats want to make this debate about. So, the back and forth is going to continue.

Obviously for both sides there's a little bit of danger here in trying to redefine this. For Democrats, you're seeing right now what Republicans are saying in that letter, which is, look, we could go too far in this. If you want to go out and in your zealotry go and either whether it's leaking information or whether it is spending a whole lot of time trying to make other people look bad, that puts American security forces in some harm. There could be real consequences to that.

Democrats obviously want to keep the focus on what they're calling now this culture of corruption, want to keep the focus on Libby and the CIA leak that we've heard so much about in the past few weeks.

COSTELLO: Well, let's talk about that alleged culture of corruption, because some are saying that it affected, you know, the Virginia governor's race in the least because a Democrat won that state, a state where Republicans were very strong. And, of course, President Bush flew in at the last minute to help the Republican candidate, but it didn't work.

WALTER: Well, we're going to hear a lot of parsing about both of these races both in Virginia and in New Jersey in the coming days here. But, look, I think fundamentally the race in Virginia it's not a big surprise to see a Democrat win there.

Remember, a very popular Democrat could not run for re-election. It is his lieutenant governor who won. So, I think that had a very big part in this debate.

But clearly, I think what happened here is that whether or not the president hurt, he didn't help Jerry Kilgore, who was the Republican in this contest. And in that case, that is what we can look over to in the 2006 election.

But I think reading too much into this about what one race means for the president's fortunes, his party's fortunes in 2006 is a little bit dangerous. But, you know, I think fundamentally for Republicans looking for a bump for the president that's not something they're going to get.

COSTELLO: But, you know, things can turn around so fast.

WALTER: Right. We still have a year before we go into the next election.

Remember, in 2001, the Democrats won in Virginia and in New Jersey when the president was very, very popular. Now, they win in Virginia and New Jersey when the president is not very popular.

COSTELLO: Amy Walter, thanks for joining us this morning.

WALTER: Thank you very much.

COSTELLO: We're just scratching the surface of this story. Miles O'Brien joins us now for a look at what's coming up on "AMERICAN MORNING."

Good morning, Miles.

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

We're going to talk a little bit about what you've just been talking about. We're going to bring in Ed Rollins a little bit later, a Republican strategist who worked in the Nixon and Reagan White Houses, and, of course, knows a lot about how to strategize in such matters. We're going to ask him what he thinks the White House should do and the political advice he would give them as they move forward and try to assess what happened in those elections last night.

And then this whole leak issue, the latest CIA leak. Lest we forget, what we're talking about what was leaked, the information is about a network of secret prisons. We're going to have the ranking Democrat on the Intelligence Committee, Senator Jay Rockefeller, join us. We'll ask him what he knew about these secret prisons and about the latest leak controversy that seems to be swirling around Washington.

All of that and more, and as well you on "AMERICAN MORNING," Carol. We'll see you I a bit.

COSTELLO: I will be there.

O'BRIEN: All right.

COSTELLO: Thank you, Miles.

Still to come on DAYBREAK, oil profits versus your prices at the pump. What's really going on here?

And the nation's top economic guy is being honored today.

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

(COMMERCIAL BREAK)

COSTELLO: A look at how the international markets are trading this morning. Tokyo's Nikkei up 35 points, the London FTSE down 13, the German DAX up almost 1 point.

In futures trading, oil is down a little more than a dime this morning. The price of a barrel of oil now stands at $59.60.

Speaking of oil prices, we've been talking about those Senate hearings on tap today with the heads of the five major oil companies. Those CEOs are going to try to explain their record profits and what they plan to do with all of that money.

Our guest is the author of "Surviving Energy Prices." Peter Beutel joins us live from Stanford, Connecticut.

Good morning.

PETER BEUTEL, PRESIDENT, CAMERON HANOVER: Good morning.

COSTELLO: A lot of people are so angry about this. So, do you think that these Senate hearings will be contentious?

BEUTEL: I don't know which way the Senate hearings are going to go. But there are two ways of looking at this.

First of all, I have to say, it is not the oil companies' fault that they made as much money as they did. Oil is a cyclical commodity, and the price is established on the NYMEX, not by the chairman or the executives of any of these large companies.

Now, if the Senate wants to say to them, you guys have done extraordinarily well, the consumers are hurting, do you think maybe we can do something to help them? That's one approach. But if they say, prices are high, it's your fault, we're going to punish you, I think that would be an improper approach to take.

COSTELLO: Yes. And I know that's true. But when you say to -- you know, because people will be watching these hearings. When you say to the public, hey, Mr. Exxon, you made $25 billion in profits in the first nine months of this year, Mr. Shell, 20 billion, and Mr. Conoco-Phillips, 9.9 billion, all of that goes by the wayside, because people only see these incredible profits.

BEUTEL: Well, people are clearly in a mood to see some chastisement here. And I think that's why the Senate has called them there. There is talk that there will be some sort of mild windfall profits tax that would go towards helping low-income consumers meet their heating needs this winter. That would not surprise me. Anything more -- anything deeper than that, I think, is unlikely at this point.

COSTELLO: Why aren't the oil companies doing that on their own? Because wouldn't that be good PR?

BEUTEL: It would be outstanding public relations. So...

COSTELLO: Then why wait until you're before a Senate committee answering questions to institute something like this if indeed that's what will happen?

BEUTEL: Well, we have to look at this in a different level, too. It's fine for us to talk about it. But if you speak to some retired shareholder of Exxon-Mobil who may be living on that, they're saying, boy, this is great, we need those dividends.

So, it depends upon whom you speak with what kind of answer you get. And I would say that there are shareholders who feel that after investing in the company that they deserve the return. Those of us that don't hold stock, of course, would love to see it go either towards lower prices or rebates or to help low-income consumers.

COSTELLO: Well, I want people to take a look at the fluctuating price of oil over the years, because this is really fascinating. We have some numbers. In March of 1980, for example, the price of a barrel was $39.80. In April of 1986, it was $9. In December of 1998, it was $10.35. In August of 2005, it was $70.85.

In just looking at those numbers, they just don't make much sense.

BEUTEL: Well, it's a very cyclical commodity. And what happens is, is we go through periods like we've just gone through where prices are very high, that discourages consumption. We've seen an increase in ridership of public transport. We have also seen people change their habits, people carpooling or calling each other when they go out someplace. That will stop once we get prices of gasoline down under about $1.35. And it will reverse, and then people will start to show the same, if you'll excuse me, glutinous behavior that we have every time we've seen oil prices very low.

At the same time, low oil prices discourage exploration and drilling, while high prices encourage exploration and drilling.

So, it's a cycle that -- it's almost like us sitting on a teeter- totter with OPEC. And every 5 or 10 years one of us does very, very well, and the other does very, very poorly.

COSTELLO: Well, these Senate hearings should be very interesting today. Peter Beutel, thank you for joining DAYBREAK this morning. We appreciate it.

BEUTEL: Thank you.

COSTELLO: Still to come, the president is handing out some high honors. What's making news today when we return.

(COMMERCIAL BREAK)

COSTELLO: Welcome back. It is 6:52 Eastern. Here is what will be making news today.

Tornado recovery efforts in southwest Indiana are now focused on rebuilding. And survivors will get a look at whatever is left of their homes today when they're allowed to return for two hours.

Supreme Court nominee Judge Samuel Alito has more meetings today with senators crucial to his confirmation.

And President Bush hands out more medals today. Authors, musicians, historians and others will receive the National Medal of Arts and the National Humanities Medal. Recipients include Muhammad Ali and Alan Greenspan.

Oh, it's time for our favorite cheesy segment of the day.

JACQUI JERAS, CNN METEOROLOGIST: It is. And we haven't had it for two days, Carol.

COSTELLO: I know. And I've been having withdrawal symptoms because of it.

JERAS: I know. And now we know that drinking coffee for us is better for us than Coke.

COSTELLO: It's good. It lowers our blood pressure. Who knew?

JERAS: I didn't know. I am pleased, because working these hours I'm drinking a lot of coffee.

All right. Here we go. The answers to Friday's coffee quiz. In what year did Merck introduce the drug Vioxx? The answer, 1999. And what actor is the voice of Chicken Little? The answer is Zach Braff.

And the winner, Adam Rosenberg of Lewisburg, Pennsylvania. Congratulations.

COSTELLO: Congratulations, Adam.

JERAS: I know. Good for him. Drinking coffee.

Today's quiz. Why is the price of Oreo cookies going up? Which I think is just awful. And I love Oreo cookies. I've got to have it with that milk. And what are the risks associated with using too much moisturizer?

Submit your answers online. These are very important -- these are the best...

COSTELLO: You know, these are deep news questions.

JERAS: They are, aren't they?

COSTELLO: And for all of the intellectuals out there, it will be tough for you, I know.

JERAS: It will. Well, we want you to submit your answers anyway. You can always go to Google to help you find the answer. Find out tomorrow. CNN.com/daybreak.

COSTELLO: Thank you, Jacqui.

When we come back, more headlines and a look at your...

(COMMERCIAL BREAK)

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

(WEATHER REPORT)

COSTELLO: "Now in the News."

A new leak investigation may be in the works. Republican congressional leaders want to know who leaked classified information about CIA secret prisons for suspected terrorists. They say last week's disclosure published in "The Washington Post" could damage national security.

U.S. and Iraqi troops have just about cleared out insurgents from a town near the Syrian border. Operation Steel Curtain involved more than 3,000 U.S. troops and 550 Iraqi troops. The fighting has left one Marine and at least 36 insurgents dead.

Despite a two-week state of emergency across France, rioters took to the streets again last night, burning scores of cars, buses and some shops. Despite the 13th night of rioting, there were fewer clashes between police and rioters.

From the Time Warner Center in New York, I'm Carol Costello along with Jacqui Jeras. "AMERICAN MORNING" starts right now.

O'BRIEN: Thanks very much, Carol. I'm Miles O'Brien.

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