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CNN Live At Daybreak
Iraq Takes Legal Custody of Saddam; U.S. High Court Bans Internet-Porn Law Enforcement
Aired June 30, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It is official this morning: Saddam Hussein gets a transfer.
It is Wednesday, June 30. This is DAYBREAK. . And good morning to you. From the CNN global headquarters in Atlanta, I'm Carol Costello. Let me bring you up to date right now.
We are just getting word that Iraq now has legal custody of Saddam Hussein. The transfer happened just a short time ago. Saddam is physically still in U.S. military hands, and tomorrow the deposed leader will get his first day in court. We'll have a live report from Baghdad just about two minutes from now.
Israel's Supreme Court has ordered that a section of the controversial West Bank security barrier be re-routed. The ruling came down just a short time ago. The justices say the fence infringes on the lives of 35,000 Palestinians.
Joel Steinberg - remember him? He'll be released from a New York prison today. It comes 16 years after he was convicted of beating to death his 6-year-old adopted daughter, Lisa. It's a case that changed stereotypes of child-abuse victims.
In money news, the fed may vote today to raise interest rates. Fed chairman Alan Greenspan has been hinting about it for awhile now. If rates go up, it would be the first hike in four years.
In culture, the first permanent memorial to Princess Diana has opened in London's Hyde Park. The 690-foot moving water sculpture will also double as a children's water park.
And in sports, Arizona Diamondbacks pitcher Randy Johnson became just the fourth Major Leaguer to strike out 4,000 batters. Johnson joins Nolan Ryan, Steve Carlton and Roger Clemens in the 4,000K club - Chad.
CHAD MYERS, CNN METEOROLOGIST (UNINTELLIGIBLE) changing the numbers there. Yes, that was a nice shot (ph).
(WEATHER REPORT)
COSTELLO: A big handover in Iraq today. Just moments ago, we got word that Saddam Hussein has been turned over to Iraqi justice, along with some of this top henchmen. It comes two days after the surprise handover of sovereignty. We take you live to Baghdad now and Christiane Amanpour.
Hello, Christiane.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Carol, we've just been told by the executive director of what's called the Special Iraqi Tribunal here that Saddam Hussein is no longer a prisoner of war. His legal custody has now been transferred to the Iraqi criminal justice system, more specifically to the special tribunal which has been set up to try former regime crimes, as its known.
We're told that Salem Chalabi, the executive director of the tribunal, went to visit Saddam Hussein this morning about four hours ago. And the other 11, who are also - had arrest warrants issues against them yesterday - he has told - he has told that they are no longer prisoners of war, and that they are now legally in Iraqi custody.
As you've mentioned, the physical custody - they are still in prison under American guard. The American military still holds them prisoner until such time, they say, as the Iraqis can get their system up to the point where they can protect them and hold them in proper custody.
So as such as I say, no more international regulations concerning the prisoner-of-war status. He is now being held as a suspected criminal under the Iraqi legal system. As such, he was visited today. The statute of the tribunal has been presented so that he knows the rules and regulations. He has been asked whether he wants counsel. He asked, we are told, by the director who visited him today - he asked whether he could ask any questions today, and he was told no, that would take place tomorrow at what' s being called an arraignment, a court appearance in a specially convened court for this matter. Tomorrow we're expecting that.
We're told that he looked visibly shaken, as did others - the 11 others who were also informed that they are now no longer under international protection as prisoners of war. But they are now inside the Iraqi legal system - Carol.
COSTELLO: So Christiane, what happens next?
AMANPOUR: Well, briefly what happens next is that there is a so- called arraignment. He will go to court tomorrow for a very brief hearing, we're told, along with the 11 others who have arrest warrants issued against them.
These arrest warrants are not the formal indictment; they are not the formal charges. They are simply issuing these arrest warrants as a way to get them into the Iraqi legal system. And these arrest warrants say that they are being detained now by the Iraqi legal system on suspicion that they have committed crimes that fall under the jurisdiction of this special so-called war-crimes tribunal. It's not actually formally called that, but it's set up to try such things as crimes against humanity, genocide. And we expect that eventually, in several months from now, there will be formal indictments launched (ph) against Saddam Hussein and those 11 others who have been arrested along with him, Carol.
COSTELLO: Christiane Amanpour, live from Baghdad this morning. And Saddam Hussein now officially in the hands of Iraqis.
An emotional farewell for a South Korean translator beheaded by Islamic militants in Iraq. So many people attended the funeral for Kim Sun-il that it had to be held in a gymnasium in Pusan. Kim was a Christian who had hoped to do missionary work in the Arab world. He was beheaded last week by a group led by Abu Musab al-Zarqawi.
This is the 10th day of captivity in Iraq for a U.S. Marine corporal, Wassef Hassoun. There are many questions surrounding his capture and pleas for his release.
Ed Lavandera has more for you.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN DALLAS BUREAU CHIEF (voice-over): The U.S. military now agrees that it is Corporal Hassoun who appears blindfolded in the videotape broadcast on Arab television.
But military officials say how he disappeared is still under investigation. Officials say Hassoun might have voluntary walked away from a U.S. base near Fallujah.
On the videotape, the captor's voice is heard saying Hassoun was lured away. And U.S. officials say they are also looking into whether family problems might have played a role in the 24-year-old Marine's disappearance. Military officials say they currently think he might have been trying to get to Lebanon on an unauthorized leave.
But no matter how it happened, the Marine's family hopes his captors will spare a fellow Muslims life.
SAMI HASSOUN, BROTHER OF CAPTURED MARINE: It is not possible that Islam says kill these people, and there's no religion in the whole word that supports a kidnapper and a killer.
LAVANDERA: Corporal Hassoun's brother, speaking from Lebanon, is calling on Middle East authorities to step in and help save his brother. Islamic militants are threatening to kill Corporal Hassoun if all Iraqi prisoners are not released.
HASSOUN: It's not his mistake that he is down in Iraq. It's not his mistake that the whole thing happened. He was just a soldier doing his job, like any other person. Please leave him for the sake of God.
LAVANDERA (on camera): Three U.S. Marines are here in West Jordan, Utah, standing by Corporal Hassoun's family and giving them whatever information they can. But the family still insists that they will not speak publicly until Corporal Hassoun's fate has been resolved.
Ed Lavandera, CNN, West Jordan, Utah.
(END VIDEOTAPE)
COSTELLO: For more on Iraq, be sure to check this morning's interview with former coalition adviser Dan Senor. He will be a guest on CNN's "AMERICAN MORNING." Of course, that comes your way in just about two hours.
Israel's Supreme Court says a section of the government's controversial barrier in the West Bank has to be rerouted. The high court ruled the current route for the barrier would cause too much disruption to the lives of at least 35,000 Palestinians.
CNN's Ralitsa Vassileva is in Jerusalem. She joins us with details.
Good morning.
RALITSA VASSILEVA, CNN CORRESPONDENT: Good morning, Carol.
The courts did not question the legality of the controversial West Bank barrier that Israel is building for security purposes. But what it did question is the balance between the humanitarian needs of those locals - as you said, 35,000 Palestinians living in this vicinity - and Israel's security needs.
And it found that it was out of proportion, saying that the barrier, although it is legal to be built, it should be rerouted. A new path of a 30 kilometer section should be found because it causes a burden on the entire way of life of those villagers. It also violates their international rights, their humanitarian rights.
And another significant aspect of this ruling is that the court ruled that the Army should the alter the route even if it lessens Israel's security needs.
We've had reaction from both sides. The defense establishment in Israel saying that this verdict causes irreversible. However, they will abide by the ruling; they will look for an alternate route.
From a lawyer for the petitioners, we have reaction. He calls this verdict "precedent-setting," and he says it's even more important than the one expected on July 9 from the International Court of Justice in the Hague regarding the legality of the wall, saying that this verdict will be followed.
However, experts do expect more challenges, possibly an appeal by the Israeli government itself to be expected after this ruling. As I mentioned, quite a precedent-setting ruling.
Carol, back to you.
COSTELLO: Well, Ralitsa, I was just going to ask you about that. This has to be a blow to Ariel Sharon.
VASSILEVA: Basically, what analysts are saying, it is a blow to the defense establishment because there will be more challenges to this barrier. A quarter of it has already been built.
However, the significant thing - the good news for the Israeli government is that the court did not challenge the legality of the Army building that wall. What it challenged is the path that this 30- kilometer section, saying, You've got to re-route it. You can still build it.
COSTELLO: Thank you for clarifying. Ralitsa Vassileva, reporting live from Jerusalem this morning.
Back here in the United States, prosecutors are trying to regain control in the Scott Peterson trial. The defense has been capturing the headlines for several days during the cross-examination of the lead detective in the case.
But as CNN's Ted Rowlands reports, the prosecution has some surprises of its own.
(BEGIN VIDEOTAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Prosecutor Rick Distaso started the day with what seemed like a bombshell. Detective Al Brocchini testified about a tip that he had received the day after Scott Peterson was arrested, from someone who claimed that years ago, Peterson described the perfect way to get rid of a dead body, using duct tape and cement.
During cross-examination, defense attorney Mark Geragos established that the tip was from an unreliable source. Legal observers say while the story may not have been legitimate, telling it to the jury was a good idea. It's a technique they say Geragos has been using since the trial started.
DEAN JOHNSON, LEGAL ANALYST: Distaso is finally, finally taking advantage of that on the part of the prosecution and bringing in anything and everything he can, including some very powerful evidence for the prosecution.
ROWLANDS: Also today, the court released a number of photographs from inside the Peterson home, including photos of the Petersons' washing machine with dirty rags on top, a mop and bucket, which were taken in as potential evidence that Peterson may have cleaned up to cover his tracks, and there is a shot of the inside of the nautical- themed nursery Laci and Scott Peterson had prepared for their first child.
(on camera): After five days on the stand, Modesto Police Detective Al Brocchini finished testimony today.
The prosecution finished with testimony from a former employee of Scott Peterson's who was with Peterson the day he met the woman that would eventually introduce him to Amber Frey.
Ted Rowlands, CNN, Redwood City, California.
(END VIDEOTAPE) COSTELLO: We're just getting started this morning. Here's what's ahead on DAYBREAK:
It's been fun while it lasted. You may be saying goodbye to those super-low interest rates. Find out what the Fed's decision means for you and your money.
And Secretary of State Colin Powell takes on a huge humanitarian crisis in Sudan. He says time is of the essence and action is needed right now.
This is DAYBREAK for Wednesday.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports. It is 5:15 Eastern.
Here's what's all new this morning:
Iraqi authorities are now officially in charge of Saddam Hussein. Legal custody of Saddam and 11 other former Iraqi leaders has now been transferred. Coalition forces are still physically holding the group until Iraqi security is ready to take over.
New rules go into effect today on travel to Cuba. Hundreds lined up at airports in an attempt to beat the deadline. The rules prohibit Cuban Americans from visiting family members in Cuba more than once every three years. The new law replaces a once-a-year restriction.
In money news, 32,000 members of the Army and Air Force will finally be reimbursed for their flights home from the Middle East. The soldiers paid about $19 million out of their own pockets to come home on leave last year.
In culture, Al Sharpton is coming to a different kind of reality TV. The former presidential candidate will host - will host a career- makeover show on Spike TV. "I Hate My Job" is set to debut this fall.
In sports, Miami Dolphins tight end Randy McMichael has been charged with aggravated battery after a fight with his pregnant wife. His wife was also booked on domestic battery charges. If convicted, McMichael could face 15 years in prison.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Everybody is watching the Fed today, expecting an interest-rate hike. But how high might the rates go, and what will the increase mean to you?
Our Ceci Rodgers has some answers.
(BEGIN VIDEOTAPE) CECI RODGERS, CNNfn CORRESPONDENT (voice-over): It had to end sometime. Easy money that opened the floodgates for multiple refinancings and 0-percent car loans had to end.
Interest rates have already been creeping up, as the market anticipates a Federal Reserve rate hike.
(on camera): Do you think that the Federal Reserve will raise interest rates?
UNIDENTIFIED MALE: I think so, yes. It's going to affect a lot of people.
UNIDENTIFIED FEMALE: Well, I'm just trying to, you know, pay off debt and, you know, deal with things now as opposed to increasing my debt as the rate gets higher.
RODGERS (voice-over): Financial planners are urging their clients to do just that. Credit-card debt can be treacherous for consumers as the interest rate rises in lock step with market rates.
For the same reason, adjustable rate mortgages may be a riskier choice for homeowners now that interest rates have turned up.
MARC FREEDMAN, PRESIDENT, FREEDMAN FINANCIAL: Those that have adjustable interest rates, I would say now is the time to turn those into fixed interest rates. There's no need for adjustable interest rates anymore or adjustable-rate mortgages as we approach a rising- interest rate environment.
RODGERS: Economists predict a doubling of the federal funds rate to 2 percent by year end. That's a huge jump in percentage terms, but economists say in real terms it isn't, because rates are rising from such low levels.
DIANE SWONK, BANK ONE: We're not going to see the kind of interest rates that we say in the 1980s. We're going to see rates that we've more come accustomed to in the last, you know, five to 10 years. I mean, we're returning to more reasonable levels.
RODGERS: Investors may have a hard time deciding which investments will fare better as rates rise, since a lot hinges on whether inflation becomes a bigger problem.
But there seems to be a consensus on what investors should avoid.
FREEDMAN: Long-term bonds, maybe ones that are worth selling right now, taking the profit margin that you've earned on those bonds, and re-allocating them either into the stock market, or simply into cash.
RODGERS (on camera): Higher interest rates do have a silver lining. They'll eventually show up in the interest paid on money market funds and certificates of deposit, investments that were once popular with small investors until rock-bottom interest rates cut their returns to next-to-nothing. Ceci Rodgers, CNN Financial News, Chicago.
(END VIDEOTAPE)
COSTELLO: So, how are the European markets being affected by all of this?
For that, we head live to London and Mallika Kapur.
Good morning.
MALLIKA KAPUR, CNN CORRESPONDENT: Morning, Carol.
Well, it's very much a waiting game here in the European markets, and today is going to be a day of high expectations but very slim volumes as European markets and indeed financial markets around the world wait for that decision by the U.S. Federal Reserve.
About two hours into the trading day here in Europe. It's a mixed picture. Actually, most European markets mostly negative at this hour. Quite a change from the start of this week, when European markets managed to pull in some strong gains and touched a two-month high on Monday. A lot of those gains have fizzled out as the week wears on.
But just to put things in perspective, we are exactly halfway through the trading year at the moment, and this is how the European markets have done since January: the FTSE is up more than 2 percent, DAX up two-and-a-half percent, and in Paris the CAC up five-and-a-half percent since the start of the year.
And now what to update you on some corporate news. We've had news out from Virgin Mobile, which is the mobile-phone division of Richard Branson's Virgin Group, the group that owns from airlines to music to fitness companies. And Virgin Mobile saying it will list on the London Stock Exchange in July. That's a very highly anticipated move that no doubt these European markets will be watching closely.
Carol, back to you.
COSTELLO: Mallika Kapur, live from London this morning, thank you.
Weighing in on Internet porn: are laws aimed at protecting children prosecuting adults? We'll have more on that story ahead.
And Bill Clinton's new book opens up old wounds. Coming up, one of the women from his past issues a challenge to the former president.
This is DAYBREAK for Wednesday.
(COMMERCIAL BREAK)
MYERS: Trying to do everything I can to be nice.
COSTELLO: Just laughing with Chad. I missed him. I missed you, Chad, while I was gone.
MYERS: The audience missed you too. The e-mails were flying in. Where's Carol? Is she OK? Is she sick? Is she gone? Is she married?
COSTELLO: No, but I will be away for two weeks in two weeks. Did you get that? In two weeks I'll be away two weeks.
MYERS: So it...
COSTELLO: Because I'm getting married.
MYERS: So in four weeks, you'll be back.
COSTELLO: Exactly.
MYERS: All right.
COSTELLO: But I'll be here for the next two - never mind.
MYERS: I got it.
COSTELLO: All right.
MYERS: Next.
COSTELLO: Let's talk about this pornography ruling.
Pornography or free speech? The Supreme Court again waded into that debate with a ruling on a law intended to protect children from viewing questionable images on the Internet. In the ruling, the justices say there may be better ways to shield children from sexually explicit material.
CNN national correspondent Bob Franken sorts it all out for you.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): Three times the law has been shot down. Actually, in this case, sent down again to lower courts to decide whether there is any new technology to filter out pornography and other adult material.
"That is preferable to censorship," Justice Anthony Kennedy wrote, "since content-based prohibitions, enforced by severe criminal penalties, have the constant potential to be a repressive force in the lives and thoughts of a free people" -- prohibitions that might block artistic expression and useful but explicit health information, like an advice Web site about sex for the disabled.
ANN BEESON, ACLU ASSOC. LEGAL DIRECTOR: The purpose of that information is to help disabled people learn about sex and a lot of people may not want their children to see that, but the fact is adults have every right to access it. FRANKEN: In his dissenting opinion, Justice Stephen Breyer argued that while the legislation "risks imposition of some minor burdens on some protected material, it significantly helps to achieve a compelling congressional goal: protecting children from exposure to commercial pornography."
Precisely the sentiments of the congressional sponsor.
REP. MICHAEL OXLEY (R), OHIO: It was a balancing act, and unfortunately I think the kids lost on this one and the adult pornographers won.
FRANKEN: As cast by the court's majority, the question is less about indecent material than it is about technology: can it filter the unacceptable and preserve the acceptable?
DOUG ISENBERG, GIGALAW.COM: There are those who think it can be very effective, but there is still certainly room for argument that any type of filtering software is both under and over inclusive.
FRANKEN (on camera): Justice Potter Stewart in 1964 said that while he couldn't define obscenity, he knew it when he saw it. The question in 2004 is can the new technology sort it out?
Bob Franken, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: Are you still confused? We will learn about the law. Coming up in our next hour, our legal analyst Kendall Coffey will be along with more on the Supreme Court's decision. We'll have a little "Coffey Talk" on that, so stay tuned.
Paula Jones. Paula Jones. Remember her? She's the Arkansas woman whose sexual harassment suit against former President Clinton helped trigger his impeachment? In his new memoir, Mr. Clinton once again denies harassing Jones.
But in an exclusive interview with CNN's Paula Zahn, Jones says that is not the truth and she is willing to debate Clinton the issue.
(BEGIN VIDEO CLIP)
PAULA JONES, FORMER PLAINTIFF: I'm just trying to prove that, you know, look, I'm not afraid of debating him, because I know what happened happened. He says it didn't happen, but it did happen.
And I'm just saying that -- to prove a point, that I'm not embarrassed or ashamed to be out and meet him eye-to-eye and tell him he knows he did what he did to me. But Bill Clinton would never agree to something like that. But I'm just putting it out there to let people know that I'm not afraid to debate him.
(END VIDEO CLIP)
COSTELLO: Clinton eventually settled the Jones lawsuit for $850,000 but without any admission of guilt.
And I must say, Chad, when Paula Jones - Jones' face appeared on the television screen, I heard gasps from the newsroom saying, Is that Paula Jones? She looks completely different.
MYERS: She made herself up.
COSTELLO: She certainly did.
MYERS: Almost like Esther, like Madonna. Just make yourself all over. And you can - you can do that nowadays.
COSTELLO: Well, she got $850,000, so she could pay for it.
MYERS: And President Clinton has now sold 935,000 books.
COSTELLO: Do you think they'll debate?
MYERS: No.
COSTELLO: Paula Jones?
MYERS: No.
COSTELLO: Bill Clinton?
MYERS: No. There are an awful lot of other people that are debating some of the things he's printing in the book as well. She's not the only one, but...
COSTELLO: No, the other two women allegedly in his life are also - I'm sure clamoring for debates as well.
MYERS: Maybe.
COSTELLO: Maybe so.
MYERS: Two point six million copies of this book already in print.
COSTELLO: Set a record.
MYERS: They're ready.
COSTELLO: Incredible.
MYERS: Yes.
COSTELLO: Here's what's all-new in the next half hour of DAYBREAK:
Astronauts aboard the international space station prepare for a risky walk in space. We'll have more on that story later this hour.
And Iraq's new government takes legal control of Saddam Hussein. So what's next for the fallen dictator? We'll take you live to Baghdad for the latest.
And the crisis in Sudan. Why the uprising involving black Sudanese rebels is ample cause for alarm. We'll have a live report for you straight ahead.
This is DAYBREAK for Wednesday.
(COMMERCIAL BREAK)
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Aired June 30, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It is official this morning: Saddam Hussein gets a transfer.
It is Wednesday, June 30. This is DAYBREAK. . And good morning to you. From the CNN global headquarters in Atlanta, I'm Carol Costello. Let me bring you up to date right now.
We are just getting word that Iraq now has legal custody of Saddam Hussein. The transfer happened just a short time ago. Saddam is physically still in U.S. military hands, and tomorrow the deposed leader will get his first day in court. We'll have a live report from Baghdad just about two minutes from now.
Israel's Supreme Court has ordered that a section of the controversial West Bank security barrier be re-routed. The ruling came down just a short time ago. The justices say the fence infringes on the lives of 35,000 Palestinians.
Joel Steinberg - remember him? He'll be released from a New York prison today. It comes 16 years after he was convicted of beating to death his 6-year-old adopted daughter, Lisa. It's a case that changed stereotypes of child-abuse victims.
In money news, the fed may vote today to raise interest rates. Fed chairman Alan Greenspan has been hinting about it for awhile now. If rates go up, it would be the first hike in four years.
In culture, the first permanent memorial to Princess Diana has opened in London's Hyde Park. The 690-foot moving water sculpture will also double as a children's water park.
And in sports, Arizona Diamondbacks pitcher Randy Johnson became just the fourth Major Leaguer to strike out 4,000 batters. Johnson joins Nolan Ryan, Steve Carlton and Roger Clemens in the 4,000K club - Chad.
CHAD MYERS, CNN METEOROLOGIST (UNINTELLIGIBLE) changing the numbers there. Yes, that was a nice shot (ph).
(WEATHER REPORT)
COSTELLO: A big handover in Iraq today. Just moments ago, we got word that Saddam Hussein has been turned over to Iraqi justice, along with some of this top henchmen. It comes two days after the surprise handover of sovereignty. We take you live to Baghdad now and Christiane Amanpour.
Hello, Christiane.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Carol, we've just been told by the executive director of what's called the Special Iraqi Tribunal here that Saddam Hussein is no longer a prisoner of war. His legal custody has now been transferred to the Iraqi criminal justice system, more specifically to the special tribunal which has been set up to try former regime crimes, as its known.
We're told that Salem Chalabi, the executive director of the tribunal, went to visit Saddam Hussein this morning about four hours ago. And the other 11, who are also - had arrest warrants issues against them yesterday - he has told - he has told that they are no longer prisoners of war, and that they are now legally in Iraqi custody.
As you've mentioned, the physical custody - they are still in prison under American guard. The American military still holds them prisoner until such time, they say, as the Iraqis can get their system up to the point where they can protect them and hold them in proper custody.
So as such as I say, no more international regulations concerning the prisoner-of-war status. He is now being held as a suspected criminal under the Iraqi legal system. As such, he was visited today. The statute of the tribunal has been presented so that he knows the rules and regulations. He has been asked whether he wants counsel. He asked, we are told, by the director who visited him today - he asked whether he could ask any questions today, and he was told no, that would take place tomorrow at what' s being called an arraignment, a court appearance in a specially convened court for this matter. Tomorrow we're expecting that.
We're told that he looked visibly shaken, as did others - the 11 others who were also informed that they are now no longer under international protection as prisoners of war. But they are now inside the Iraqi legal system - Carol.
COSTELLO: So Christiane, what happens next?
AMANPOUR: Well, briefly what happens next is that there is a so- called arraignment. He will go to court tomorrow for a very brief hearing, we're told, along with the 11 others who have arrest warrants issued against them.
These arrest warrants are not the formal indictment; they are not the formal charges. They are simply issuing these arrest warrants as a way to get them into the Iraqi legal system. And these arrest warrants say that they are being detained now by the Iraqi legal system on suspicion that they have committed crimes that fall under the jurisdiction of this special so-called war-crimes tribunal. It's not actually formally called that, but it's set up to try such things as crimes against humanity, genocide. And we expect that eventually, in several months from now, there will be formal indictments launched (ph) against Saddam Hussein and those 11 others who have been arrested along with him, Carol.
COSTELLO: Christiane Amanpour, live from Baghdad this morning. And Saddam Hussein now officially in the hands of Iraqis.
An emotional farewell for a South Korean translator beheaded by Islamic militants in Iraq. So many people attended the funeral for Kim Sun-il that it had to be held in a gymnasium in Pusan. Kim was a Christian who had hoped to do missionary work in the Arab world. He was beheaded last week by a group led by Abu Musab al-Zarqawi.
This is the 10th day of captivity in Iraq for a U.S. Marine corporal, Wassef Hassoun. There are many questions surrounding his capture and pleas for his release.
Ed Lavandera has more for you.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN DALLAS BUREAU CHIEF (voice-over): The U.S. military now agrees that it is Corporal Hassoun who appears blindfolded in the videotape broadcast on Arab television.
But military officials say how he disappeared is still under investigation. Officials say Hassoun might have voluntary walked away from a U.S. base near Fallujah.
On the videotape, the captor's voice is heard saying Hassoun was lured away. And U.S. officials say they are also looking into whether family problems might have played a role in the 24-year-old Marine's disappearance. Military officials say they currently think he might have been trying to get to Lebanon on an unauthorized leave.
But no matter how it happened, the Marine's family hopes his captors will spare a fellow Muslims life.
SAMI HASSOUN, BROTHER OF CAPTURED MARINE: It is not possible that Islam says kill these people, and there's no religion in the whole word that supports a kidnapper and a killer.
LAVANDERA: Corporal Hassoun's brother, speaking from Lebanon, is calling on Middle East authorities to step in and help save his brother. Islamic militants are threatening to kill Corporal Hassoun if all Iraqi prisoners are not released.
HASSOUN: It's not his mistake that he is down in Iraq. It's not his mistake that the whole thing happened. He was just a soldier doing his job, like any other person. Please leave him for the sake of God.
LAVANDERA (on camera): Three U.S. Marines are here in West Jordan, Utah, standing by Corporal Hassoun's family and giving them whatever information they can. But the family still insists that they will not speak publicly until Corporal Hassoun's fate has been resolved.
Ed Lavandera, CNN, West Jordan, Utah.
(END VIDEOTAPE)
COSTELLO: For more on Iraq, be sure to check this morning's interview with former coalition adviser Dan Senor. He will be a guest on CNN's "AMERICAN MORNING." Of course, that comes your way in just about two hours.
Israel's Supreme Court says a section of the government's controversial barrier in the West Bank has to be rerouted. The high court ruled the current route for the barrier would cause too much disruption to the lives of at least 35,000 Palestinians.
CNN's Ralitsa Vassileva is in Jerusalem. She joins us with details.
Good morning.
RALITSA VASSILEVA, CNN CORRESPONDENT: Good morning, Carol.
The courts did not question the legality of the controversial West Bank barrier that Israel is building for security purposes. But what it did question is the balance between the humanitarian needs of those locals - as you said, 35,000 Palestinians living in this vicinity - and Israel's security needs.
And it found that it was out of proportion, saying that the barrier, although it is legal to be built, it should be rerouted. A new path of a 30 kilometer section should be found because it causes a burden on the entire way of life of those villagers. It also violates their international rights, their humanitarian rights.
And another significant aspect of this ruling is that the court ruled that the Army should the alter the route even if it lessens Israel's security needs.
We've had reaction from both sides. The defense establishment in Israel saying that this verdict causes irreversible. However, they will abide by the ruling; they will look for an alternate route.
From a lawyer for the petitioners, we have reaction. He calls this verdict "precedent-setting," and he says it's even more important than the one expected on July 9 from the International Court of Justice in the Hague regarding the legality of the wall, saying that this verdict will be followed.
However, experts do expect more challenges, possibly an appeal by the Israeli government itself to be expected after this ruling. As I mentioned, quite a precedent-setting ruling.
Carol, back to you.
COSTELLO: Well, Ralitsa, I was just going to ask you about that. This has to be a blow to Ariel Sharon.
VASSILEVA: Basically, what analysts are saying, it is a blow to the defense establishment because there will be more challenges to this barrier. A quarter of it has already been built.
However, the significant thing - the good news for the Israeli government is that the court did not challenge the legality of the Army building that wall. What it challenged is the path that this 30- kilometer section, saying, You've got to re-route it. You can still build it.
COSTELLO: Thank you for clarifying. Ralitsa Vassileva, reporting live from Jerusalem this morning.
Back here in the United States, prosecutors are trying to regain control in the Scott Peterson trial. The defense has been capturing the headlines for several days during the cross-examination of the lead detective in the case.
But as CNN's Ted Rowlands reports, the prosecution has some surprises of its own.
(BEGIN VIDEOTAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): Prosecutor Rick Distaso started the day with what seemed like a bombshell. Detective Al Brocchini testified about a tip that he had received the day after Scott Peterson was arrested, from someone who claimed that years ago, Peterson described the perfect way to get rid of a dead body, using duct tape and cement.
During cross-examination, defense attorney Mark Geragos established that the tip was from an unreliable source. Legal observers say while the story may not have been legitimate, telling it to the jury was a good idea. It's a technique they say Geragos has been using since the trial started.
DEAN JOHNSON, LEGAL ANALYST: Distaso is finally, finally taking advantage of that on the part of the prosecution and bringing in anything and everything he can, including some very powerful evidence for the prosecution.
ROWLANDS: Also today, the court released a number of photographs from inside the Peterson home, including photos of the Petersons' washing machine with dirty rags on top, a mop and bucket, which were taken in as potential evidence that Peterson may have cleaned up to cover his tracks, and there is a shot of the inside of the nautical- themed nursery Laci and Scott Peterson had prepared for their first child.
(on camera): After five days on the stand, Modesto Police Detective Al Brocchini finished testimony today.
The prosecution finished with testimony from a former employee of Scott Peterson's who was with Peterson the day he met the woman that would eventually introduce him to Amber Frey.
Ted Rowlands, CNN, Redwood City, California.
(END VIDEOTAPE) COSTELLO: We're just getting started this morning. Here's what's ahead on DAYBREAK:
It's been fun while it lasted. You may be saying goodbye to those super-low interest rates. Find out what the Fed's decision means for you and your money.
And Secretary of State Colin Powell takes on a huge humanitarian crisis in Sudan. He says time is of the essence and action is needed right now.
This is DAYBREAK for Wednesday.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports. It is 5:15 Eastern.
Here's what's all new this morning:
Iraqi authorities are now officially in charge of Saddam Hussein. Legal custody of Saddam and 11 other former Iraqi leaders has now been transferred. Coalition forces are still physically holding the group until Iraqi security is ready to take over.
New rules go into effect today on travel to Cuba. Hundreds lined up at airports in an attempt to beat the deadline. The rules prohibit Cuban Americans from visiting family members in Cuba more than once every three years. The new law replaces a once-a-year restriction.
In money news, 32,000 members of the Army and Air Force will finally be reimbursed for their flights home from the Middle East. The soldiers paid about $19 million out of their own pockets to come home on leave last year.
In culture, Al Sharpton is coming to a different kind of reality TV. The former presidential candidate will host - will host a career- makeover show on Spike TV. "I Hate My Job" is set to debut this fall.
In sports, Miami Dolphins tight end Randy McMichael has been charged with aggravated battery after a fight with his pregnant wife. His wife was also booked on domestic battery charges. If convicted, McMichael could face 15 years in prison.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
Everybody is watching the Fed today, expecting an interest-rate hike. But how high might the rates go, and what will the increase mean to you?
Our Ceci Rodgers has some answers.
(BEGIN VIDEOTAPE) CECI RODGERS, CNNfn CORRESPONDENT (voice-over): It had to end sometime. Easy money that opened the floodgates for multiple refinancings and 0-percent car loans had to end.
Interest rates have already been creeping up, as the market anticipates a Federal Reserve rate hike.
(on camera): Do you think that the Federal Reserve will raise interest rates?
UNIDENTIFIED MALE: I think so, yes. It's going to affect a lot of people.
UNIDENTIFIED FEMALE: Well, I'm just trying to, you know, pay off debt and, you know, deal with things now as opposed to increasing my debt as the rate gets higher.
RODGERS (voice-over): Financial planners are urging their clients to do just that. Credit-card debt can be treacherous for consumers as the interest rate rises in lock step with market rates.
For the same reason, adjustable rate mortgages may be a riskier choice for homeowners now that interest rates have turned up.
MARC FREEDMAN, PRESIDENT, FREEDMAN FINANCIAL: Those that have adjustable interest rates, I would say now is the time to turn those into fixed interest rates. There's no need for adjustable interest rates anymore or adjustable-rate mortgages as we approach a rising- interest rate environment.
RODGERS: Economists predict a doubling of the federal funds rate to 2 percent by year end. That's a huge jump in percentage terms, but economists say in real terms it isn't, because rates are rising from such low levels.
DIANE SWONK, BANK ONE: We're not going to see the kind of interest rates that we say in the 1980s. We're going to see rates that we've more come accustomed to in the last, you know, five to 10 years. I mean, we're returning to more reasonable levels.
RODGERS: Investors may have a hard time deciding which investments will fare better as rates rise, since a lot hinges on whether inflation becomes a bigger problem.
But there seems to be a consensus on what investors should avoid.
FREEDMAN: Long-term bonds, maybe ones that are worth selling right now, taking the profit margin that you've earned on those bonds, and re-allocating them either into the stock market, or simply into cash.
RODGERS (on camera): Higher interest rates do have a silver lining. They'll eventually show up in the interest paid on money market funds and certificates of deposit, investments that were once popular with small investors until rock-bottom interest rates cut their returns to next-to-nothing. Ceci Rodgers, CNN Financial News, Chicago.
(END VIDEOTAPE)
COSTELLO: So, how are the European markets being affected by all of this?
For that, we head live to London and Mallika Kapur.
Good morning.
MALLIKA KAPUR, CNN CORRESPONDENT: Morning, Carol.
Well, it's very much a waiting game here in the European markets, and today is going to be a day of high expectations but very slim volumes as European markets and indeed financial markets around the world wait for that decision by the U.S. Federal Reserve.
About two hours into the trading day here in Europe. It's a mixed picture. Actually, most European markets mostly negative at this hour. Quite a change from the start of this week, when European markets managed to pull in some strong gains and touched a two-month high on Monday. A lot of those gains have fizzled out as the week wears on.
But just to put things in perspective, we are exactly halfway through the trading year at the moment, and this is how the European markets have done since January: the FTSE is up more than 2 percent, DAX up two-and-a-half percent, and in Paris the CAC up five-and-a-half percent since the start of the year.
And now what to update you on some corporate news. We've had news out from Virgin Mobile, which is the mobile-phone division of Richard Branson's Virgin Group, the group that owns from airlines to music to fitness companies. And Virgin Mobile saying it will list on the London Stock Exchange in July. That's a very highly anticipated move that no doubt these European markets will be watching closely.
Carol, back to you.
COSTELLO: Mallika Kapur, live from London this morning, thank you.
Weighing in on Internet porn: are laws aimed at protecting children prosecuting adults? We'll have more on that story ahead.
And Bill Clinton's new book opens up old wounds. Coming up, one of the women from his past issues a challenge to the former president.
This is DAYBREAK for Wednesday.
(COMMERCIAL BREAK)
MYERS: Trying to do everything I can to be nice.
COSTELLO: Just laughing with Chad. I missed him. I missed you, Chad, while I was gone.
MYERS: The audience missed you too. The e-mails were flying in. Where's Carol? Is she OK? Is she sick? Is she gone? Is she married?
COSTELLO: No, but I will be away for two weeks in two weeks. Did you get that? In two weeks I'll be away two weeks.
MYERS: So it...
COSTELLO: Because I'm getting married.
MYERS: So in four weeks, you'll be back.
COSTELLO: Exactly.
MYERS: All right.
COSTELLO: But I'll be here for the next two - never mind.
MYERS: I got it.
COSTELLO: All right.
MYERS: Next.
COSTELLO: Let's talk about this pornography ruling.
Pornography or free speech? The Supreme Court again waded into that debate with a ruling on a law intended to protect children from viewing questionable images on the Internet. In the ruling, the justices say there may be better ways to shield children from sexually explicit material.
CNN national correspondent Bob Franken sorts it all out for you.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): Three times the law has been shot down. Actually, in this case, sent down again to lower courts to decide whether there is any new technology to filter out pornography and other adult material.
"That is preferable to censorship," Justice Anthony Kennedy wrote, "since content-based prohibitions, enforced by severe criminal penalties, have the constant potential to be a repressive force in the lives and thoughts of a free people" -- prohibitions that might block artistic expression and useful but explicit health information, like an advice Web site about sex for the disabled.
ANN BEESON, ACLU ASSOC. LEGAL DIRECTOR: The purpose of that information is to help disabled people learn about sex and a lot of people may not want their children to see that, but the fact is adults have every right to access it. FRANKEN: In his dissenting opinion, Justice Stephen Breyer argued that while the legislation "risks imposition of some minor burdens on some protected material, it significantly helps to achieve a compelling congressional goal: protecting children from exposure to commercial pornography."
Precisely the sentiments of the congressional sponsor.
REP. MICHAEL OXLEY (R), OHIO: It was a balancing act, and unfortunately I think the kids lost on this one and the adult pornographers won.
FRANKEN: As cast by the court's majority, the question is less about indecent material than it is about technology: can it filter the unacceptable and preserve the acceptable?
DOUG ISENBERG, GIGALAW.COM: There are those who think it can be very effective, but there is still certainly room for argument that any type of filtering software is both under and over inclusive.
FRANKEN (on camera): Justice Potter Stewart in 1964 said that while he couldn't define obscenity, he knew it when he saw it. The question in 2004 is can the new technology sort it out?
Bob Franken, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: Are you still confused? We will learn about the law. Coming up in our next hour, our legal analyst Kendall Coffey will be along with more on the Supreme Court's decision. We'll have a little "Coffey Talk" on that, so stay tuned.
Paula Jones. Paula Jones. Remember her? She's the Arkansas woman whose sexual harassment suit against former President Clinton helped trigger his impeachment? In his new memoir, Mr. Clinton once again denies harassing Jones.
But in an exclusive interview with CNN's Paula Zahn, Jones says that is not the truth and she is willing to debate Clinton the issue.
(BEGIN VIDEO CLIP)
PAULA JONES, FORMER PLAINTIFF: I'm just trying to prove that, you know, look, I'm not afraid of debating him, because I know what happened happened. He says it didn't happen, but it did happen.
And I'm just saying that -- to prove a point, that I'm not embarrassed or ashamed to be out and meet him eye-to-eye and tell him he knows he did what he did to me. But Bill Clinton would never agree to something like that. But I'm just putting it out there to let people know that I'm not afraid to debate him.
(END VIDEO CLIP)
COSTELLO: Clinton eventually settled the Jones lawsuit for $850,000 but without any admission of guilt.
And I must say, Chad, when Paula Jones - Jones' face appeared on the television screen, I heard gasps from the newsroom saying, Is that Paula Jones? She looks completely different.
MYERS: She made herself up.
COSTELLO: She certainly did.
MYERS: Almost like Esther, like Madonna. Just make yourself all over. And you can - you can do that nowadays.
COSTELLO: Well, she got $850,000, so she could pay for it.
MYERS: And President Clinton has now sold 935,000 books.
COSTELLO: Do you think they'll debate?
MYERS: No.
COSTELLO: Paula Jones?
MYERS: No.
COSTELLO: Bill Clinton?
MYERS: No. There are an awful lot of other people that are debating some of the things he's printing in the book as well. She's not the only one, but...
COSTELLO: No, the other two women allegedly in his life are also - I'm sure clamoring for debates as well.
MYERS: Maybe.
COSTELLO: Maybe so.
MYERS: Two point six million copies of this book already in print.
COSTELLO: Set a record.
MYERS: They're ready.
COSTELLO: Incredible.
MYERS: Yes.
COSTELLO: Here's what's all-new in the next half hour of DAYBREAK:
Astronauts aboard the international space station prepare for a risky walk in space. We'll have more on that story later this hour.
And Iraq's new government takes legal control of Saddam Hussein. So what's next for the fallen dictator? We'll take you live to Baghdad for the latest.
And the crisis in Sudan. Why the uprising involving black Sudanese rebels is ample cause for alarm. We'll have a live report for you straight ahead.
This is DAYBREAK for Wednesday.
(COMMERCIAL BREAK)
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