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CNN Live At Daybreak

Why Bush Administration Raised Terror Threat Level Over Weekend; Look at Heightened Security Measures in New York City

Aired August 02, 2004 - 06:00   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: The nation's capital and New York City are waking up under a heightened alert this morning.
It is Monday, August 2.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, New York City, northern New Jersey and the nation's capital are beginning the work week under a heightened terror threat level. Security is pumped up. The government warns that al Qaeda may be poised to strike financial institutions with car bombs.

The Federal Aviation Administration announces the number of flights to be cut at Chicago's O'Hare International today. The Feds are trying to reduce flight delays and congestion at airports.

President Bush is ready to start implementing some of the 9/11 Commission's recommendations. Officials say the president could issue orders as early as today.

And the first tropical storm of the Atlantic hurricane season is off the coast of the Carolinas right now and it is creeping north -- Chad, how fast is it creeping?

CHAD MYERS, CNN CORRESPONDENT: In fact, Carol, about five miles per hour. Actually, the Weather Service would even call that stationary, because typically if they're going five miles per hour or less, that just means that it's kind of just sitting out there wobbling back and forth. They did move it a little bit from the latest advisories at 5:00. Now only 100 miles from Charleston.

But if you notice, this is the latest radar picture here. This is six hours of radar. The very last picture begins to slide this thing -- it's just sitting there, just sitting there. But the very top, notice the top. That's where the spin is. Can you see that little -- how that one part is going that way and the other part is coming in this way? It appears that the thing is pulling out to sea just a little bit. We eventually expect it to run right up the East Coast, not to make any landfall.

But that doesn't mean we're not going to have some damage with this system, because we're going to have an awful lot of onshore flow with it. And as we bring all of that moisture, all of those thunderstorms onshore, as well, we could see that beach erosion do pretty good things, or pretty bad things, depending on your point of view, to the beaches.

And here is the rain shower activity from the other side of this system, all the way from about Cedar Key down through Tampa. Those are the other feeder bands coming into this thing. So now, although it's not really big at 40 miles per hour, it certainly is large when it comes to the scope of the storm this morning -- Carol.

COSTELLO: Thank you, Chad.

We have more to tell you about that terror alert. The threat level for financial sectors of New York, Washington and northern New Jersey has been raised to orange, which translates to high. Homeland Security Secretary Tom Ridge cites intelligence that indicates al Qaeda plans to use truck bombs to attack. But no time frame is offered. The possible targets include the International Monetary Fund and the World Bank in Washington; Citigroup buildings in New York and the New York Stock Exchange and the Prudential Complex in New Jersey.

Now, in response to the new threat information, commercial traffic has been banned from using the Holland Tunnel to travel from New Jersey into lower Manhattan. The ban applies only to eastbound traffic, so good luck this morning.

The latest threats are more specific than the ones alluded to by Tom Ridge last month, and it's that detail that may have led the president to approve the heightened alert.

Here's CNN's White House correspondent Suzanne Malveaux.

(BEGIN VIDEO TAPE)

SUZANNE MALVEAUX, CNN CORRESPONDENT: The financial buildings, targeted for a possible attack in Washington, the IMS, and World Bank, are just a few blocks away from the White House. There, the President was briefed by his Homeland Security Team that there was very new information coming in about potential terrorist threats.

The intelligence came over a 72-hour period, a White House spokeswoman said. Mr. Bush learning of the new threats while he was campaigning on the road over the weekend. From telephone briefings with his Homeland Security Secretary Tom Ridge.

Top Homeland Security officials met at the White House twice over the weekend, before the president signed off on Ridge's recommendation Sunday morning to raise the terror alert in the financial sector.

RIDGE: This is the first time we have chosen to use the Homeland Security advisory system in such a targeted way.

MALVEAUX: Even before Ridge emerged, news of the move was immediately met with skepticism by some Bush critics.

HOWARD DEAN, (D) FORMER PRESIDENTIAL CANDIDATE: I am concerned that every time something happens that's not good for President Bush, he plays this trump card which is terrorism. His whole campaign is based on the notion that I had can keep you safe, therefore in times of difficulty for America, stick with me. And out comes Tom Ridge.

It's just impossible to know how much of this is real and how much of this is politics. And I suspect there's some of both in it.

MALVEAUX: But not everyone believes the announcement was politically motivated.

SEN. JOE LIEBERMAN, (D) CONNECTICUT: I don't think anybody who has any fairness or is in their right mind would think that the President or the Secretary of Homeland Security would raise an alert level and scare people for political reasons.

MARC RACICOT, CHAIRMAN, BUSH-CHEYNEY '04: No one would engage in that sort of thing. To suggest that I think corrodes the confidence of the people of this country.

(END VIDEO TAPE)

COSTELLO: And along those lines of how to fight terror, aides to President Bush say he could be making an announcement as early as today about those 9/11 Commission recommendations. Advisers say there's still intense debate over the commission's suggestion for a new intelligence czar to run all of the nation's intelligence services. A White House report lists other steps already in the works. Those include setting standards for information sharing between intelligence agencies.

Intelligence czar or not, homeland security says it has specific information from multiple sources this time around. So authorities know what to watch. Of course, that means some hardship for you.

CNN's Jason Carroll looks at what they're doing in New York City.

(BEGIN VIDEO TAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Heightened security outside the New York Stock Exchange. The same not far away at the Prudential Building in Newark, New Jersey. All in response to specific terror threats against financial institutions.

In New York, a law enforcement source told CNN that reconnaissance information is so specific, down to details about meeting rooms and parking structures, it appears surveillance may have been conducted inside the buildings. MAYOR MICHAEL BLOOMBERG, NEW YORK: Let me assure all New Yorkers of one thing. We are deploying our full array of counter-terrorism resources. We will spare no expense and we will take no chances.

CARROLL: Mayor Michael Bloomberg says law enforcement has been working with security departments at targeted corporations like Citigroup to ensure protective measures are taken. Because of concerns about car bombs, special attention will be made to parking structures at targeted sites and to anyone entering or leaving the buildings.

And for commuters, the Holland Tunnel is now closed to commercial traffic into the city. Expect additional inspections at the Lincoln Tunnel and other bridges. Beginning Monday, the Williamsburg Bridge will be closed to truck traffic until further notice.

The National Guard has stepped up patrols of bus and train terminals. So have police.

RAY KELLY, NYPD COMMISSIONER: Obviously, that includes the subway platforms beneath the Citigroup Center in midtown Manhattan, Citigroup headquarters in midtown and its annex in Long Island City, as well as other locations.

CARROLL: Citigroup and Prudential released statements saying added efforts are in place to protect employees.

BLOOMBERG: What they should do is get up tomorrow morning and go to work and go about their business and enjoy the very freedoms that the terrorists find so threatening.

CARROLL: But much is different. A new terror threat and the Republican national convention just a few weeks away. The city pledging to do what it has to do, but it is also counting on the public to do its part, and be as vigilant as ever.

Jason Carroll, CNN, New York.

(END VIDEO TAPE)

COSTELLO: So, if you're wondering about the specifics of this new terror alert, we have some for you. Yes, this time there are specifics. According to the Associated Press, al Qaeda has been tracking the flow of pedestrians outside of one building, apparently to determine how many people could be killed in a single attack; the quality of explosive materials, whether they could get hot enough to melt the steel underpinnings of a building; specifics on building reconnaissance -- how structures could be quietly observed and the locations of police and fire stations, schools and hospitals near specific targets.

For more on the raised threat level, including chilling information on al Qaeda's meticulous planning, log onto our Web site at cnn.com.

Here are some of the stories making news across America this Monday.

Salt Lake City police plan to return to an area landfill in their search for Lori Hacking. The move comes after police received a tip from the Hacking family. The new information came from husband Mark Hacking, who remains in a psychiatric hospital. That information led the family to say that any further volunteer searches were unnecessary.

The Scott Peterson trial resumes today. Last week, the judge refused a defense request to throw out the charges and issue a mistrial. The judge in the case also ruled that jurors can see portions of televised interviews done by Scott Peterson just after his wife went missing.

We may soon know the sexual history of Kobe Bryant's accuser. The judge in Bryant's sexual assault case is expected to release the remainder of the hearing transcripts accidentally sent out to media outlets. The accuser's sexual history was part of those hearings. The judge on Friday issued an apology to the accuser for a series of clerical mistakes that threatened her privacy.

A fire rages through a crowded supermarket. Just ahead on DAYBREAK, the latest on the deadly fire in South America.

Also churches in Baghdad now the target of insurgents. Iraqi officials think they're responsible for the latest attacks.

Also, live to New York from the Nasdaq market site for more on how the city's financial district is dealing with the latest terror threat.

This is DAYBREAK for Monday, August 2.

(COMMERCIAL BREAK)

COSTELLO: Stocks closed higher on Wall Street Friday, with all indexes posting gains for the week, a first in more than a month. The Dow closed up more than 10 points, almost touching 10,140. The Nasdaq up 6 points, at 1887. And the S&P 500 up 1, at 1101. You've got to report that, too.

Time for a little more business buzz. It's a new trading week for Wall Street, but market action begins today under a heightened terrorism threat level for the financial sector.

Sasha Salama has more live for us from the Nasdaq market site.

Tell us more.

SASHA SALAMA, CNN CORRESPONDENT: Good morning, Carol.

The high terror alert, orange level, according to the Department of Homeland Security, is focused on several financial institutions in and around the New York area. In fact, Homeland Security Secretary Tom Ridge said that intelligence is indicating al Qaeda does plan to use truck bombs to attack, but there has been no time frame given. And we're getting -- any time we get more specifics, of course, we bring them to you.

What we do know is that possible targets include the following five targets. The International Monetary Fund and World Bank in Washington, D.C. Those are two of the Washington targets that have been listed.

In New York City, the Citigroup building, as well as the New York Stock Exchange. Now, the New York Stock Exchange says that Monday will bring a regular trading session. In fact, the mayor of New York, Michael Bloomberg, is ringing the opening bell at the stock exchange as a symbol of his ongoing support of the financial institution, and, no doubt, also to show that he is not afraid himself to be there.

And then in New Jersey, in Newark, New Jersey, the Prudential Plaza complex -- now in response to this new threat information, there have been specific bans put on commercial traffic from using the Holland Tunnel, which allows travel into New York from New Jersey. That is being banned. And apparently that ban is only applying to eastbound traffic right now, going into lower Manhattan.

Citigroup apparently sent its employees an e-mail saying that security at Citigroup is taking new, unspecified measures, taking every effort to ensure employees' safety in light of these possible threats and in advance of the Republican convention, which is in New York starting August 30, at the end of the month.

Another piece of information to tell you is that officials are saying there are sufficient safety mechanisms in place to shore -- to ensure that if there were any new terrorist attack on financial targets, that the systems would have backups in place to make sure that, for example, trading would continue uninterrupted and that sort of thing.

These kind of backup systems have been put in place since the 9/11 attacks and we will keep you posted on any new developments as they become available.

That said, financial markets do not do well. There is a lot of anxiety in the face of these kind of high terror alerts. So we are expecting jittery trading, to say the least, at least at the open of trading today -- Carol.

COSTELLO: Sasha Salama live from the Nasdaq market site.

Thank you.

Your news, money, weather and sports.

It's 6:16 Eastern.

Here's what's all new this morning.

At least 275 people were killed during a fire at a crowded market in Paraguay. The fire, which apparently caused two large explosions, burned for about seven hours. Hundreds are severely injured.

In Iraq, a second American soldier has died from wounds suffered in a bomb attack near Samara. One other soldier died Sunday as a result of the roadside bomb. A third soldier was wounded.

In money news, oil prices reached an all time high due to production and distribution fears. Economic problems with Russia's number one oil company and security fears in Iraq were among the reasons for the jump. In culture, a huge crowd showed up in Italy to hear the sounds of silence. Simon and Garfunkel wrapped up the European leg of their reunion tour in front of 600,000 fans in Rome.

In sports, the good and the bad for Greg Maddux and the Cubs. Maddux failed in his bid for career win number 300, but the Cubs still managed to pull out a 6-3 win against the Philadelphia Phillies. Maybe next time -- Chad.

MYERS: Good morning, Carol.

Good morning, everybody.

I've been showing you this for the past couple of hours now, but we want to really kind of update you on this thing. It's beginning to move a little bit to the north-northeast here. This is tropical storm Alex. If you did not hear about it, the A storm, the first storm of the Atlantic hurricane season. We'll keep watching it for you as it travels up the East Coast.

We're even seeing some rain showers with it on the south side of it, as far south as Tampa. All this rain coming on shore here with some thunder and lightning, as well.

Your travelcast for today, though, if you are headed up and down the East Coast, Alex could cut off some routes here from, let's say, from Miami to New York. They may have to fly inland or around it. That may slow down some plane arrivals.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Abu Musab al-Zarqawi has struck again, at least that's what Iraqi officials -- who Iraqi officials are blaming for bombings targeting Christian worshipers. Seven people were killed, more than 60 wounded, in the weekend attacks.

Let's head live to Baghdad for more and Matthew Chance -- hello, Matthew.

MATTHEW CHANCE, CNN CORRESPONDENT: Hi.

There's been round criticism, in fact, from Muslim and Christian leaders following these waves of devastating car bomb attacks in churches across Iraq, four in the Iraqi capital of Baghdad, another one in the northern city of Mosul.

The latest information that we have, our understanding is that, as you mentioned, at least seven people have been killed as a result, right from these explosions. But scores more injured, some of them seriously, according to health ministry officials that we've spoken to.

Now, there's been no claim of responsibility as yet, but Iraqi security officials are pointing the finger of blame at the Jordanian born militant, Abu Musab al-Zarqawi. The coordinated nature of the attacks, five churches targeted in the space of just half an hour, they say, are characteristic of this kind of operation. So that search for Zarqawi is continuing across the country.

COSTELLO: Matthew, what might be the motive for attacking Christian churches in Iraq?

CHANCE: That's a good question because Iraqi Christians are only a small minority here with very little by the way of political ambition. But they have often been, or rather complained of being discriminated against in the past. Many of them are seen as rich compared to other members of the Iraqi society. Many of them own alcohol stores and therefore have been victims in the past both of criminals and of Islamic militants.

Now, nothing has been done on the size of this, along the scale of this, actually coordinating attacks against their churches. Many people believe it's an attempt to try and deepen the divisions between the various communities in Iraq and sort of instill a general sense of chaos in the country. If that's the case, they've certainly succeeded.

COSTELLO: Matthew Chance live in Baghdad for us this morning.

Thank you.

He's home. The U.S. Marine kidnapped in Iraq and threatened with beheading is with his family this morning. Corporal Wassef Ali Hassoun, who is on leave, returned to his brother's home outside of Salt Lake City, Utah. Hassoun says he was held captive for 19 days. He later turned up at the home of relatives in Lebanon. It's still unclear as to how he got there.

A big weekend for a thriller at the box office. Just ahead on DAYBREAK, more on the movie that came out on top and how much it brought in.

It looked like just a day at the beach, but the coast of Carolina is bracing for the first storm of the Atlantic hurricane season.

And our DAYBREAK Photo of the Day. What is it? We'll tell you, after the break.

(COMMERCIAL BREAK)

MYERS: She just confided to me that she took surfing lessons when she was in Hawaii.

COSTELLO: It was lovely.

MYERS: And so, and therefore we're running into this Photo of the Day.

Did you figure it out? I couldn't. I even knew what it was and I couldn't figure it out. Adriana Desousa of Brazil winning the U.S. Open, the Honda U.S. Open and junior pro competition. There he is. COSTELLO: That's amazing.

MYERS: Twenty-five hundred dollars for the win out in Huntington Beach, California this week.

COSTELLO: That is amazing. You know, the tough thing about surfing...

MYERS: Is that what you were looking like in Hawaii?

COSTELLO: Oh, Chad. Well. You know, the funny thing about surfing is you can actually stand up on the board, which I did, but as soon as I stood up, I became afraid and jumped off. I don't know why.

MYERS: Was someone holding the board for you, I hope?

COSTELLO: No. No, they actually like catch the wave for you and they push you out and you stand up. But for some reason, psychologically I could not stand up on water, so I jumped off the board each time. That was pathetic.

MYERS: All I can think of is that Expedia commercial where that guy is trying to buy his wife surfing lessons. That would be you.

COSTELLO: Yes, the surfing instructor was kind of cute.

Time for our DAYBREAK "Eye Opener" right now. It was a big weekend in "The Village." The horror mystery brought in $50.8 million, to become the weekend's number one movie.

The weekend's other big debut was "The Manchurian Candidate," which finished third. You're watching the first "Manchurian Candidate" now, I'm sure, on your VCR, Chad.

"The Bourne Supremacy" was...

MYERS: On my beta machine.

COSTELLO: On your beta machine.

Say hello to the bride. No, not her. Not her. But it was a unique setting for one couple's wedding. As they said their "I dos" underwater, they were surrounded by sharks. This Italian couple took the plunge to celebrate shark conservation. Their nicknames are bull shark and nurse shark. Bull shark, do you take nurse shark to be your lawfully wedded wife?

MYERS: To have and to bite until death do you part.

COSTELLO: Exactly.

A peaceful end followed a tiger's stroll through New York City. Apollo, the circus tiger, wandered away from the Cole Brothers Circus, which was performing in Queens. After startling churchgoers and motorists, the tiger laid down on the sidewalk. Police then surrounded Apollo while his trainer coaxed the white tiger back into its cage. In fact, motorists spotted the tiger and it caused an accident.

MYERS: Yes. A couple accidents. Yes, sure.

Hey, you've got Alex out there, tropical storm Alex. And you've probably been hearing about it this morning. Maybe you weren't watching over the weekend, but Myrtle Beach obviously heard about it. Tropical storm warnings for you, Myrtle Beach. In fact, almost all the way from just north of Charleston right on up to Cape Hatteras, tropical storm warnings are in effect now. Watches south of there, including Charleston, with a watch there.

The storm, though, is now headed up the northeast very slowly. The Weather Service still calling it stationary. But if you look at this radar picture from just offshore, the last couple of pictures begin to take a little bit of a northward turn. And that northward turn is going to take it across and just to the east of Wilmington and right through Cape Hatteras.

As we look at tropical storm Alex from this morning, notice the storm there. It's way south of New York City. You don't have to worry about it at all. But follow the brown line. The brown line does not take it across any land mass and I don't want you to get all that easy about this storm, because there's still going to be 50, 60 mile per hour winds. There you even see 70 mile per hour wind gusts there. And surf will definitely be up across the East Coast.

COSTELLO: Which means the surfers will be out.

MYERS: They will, but they'll need to be careful, because there'll be a lot of rip currents out there.

COSTELLO: Yes, be careful.

MYERS: Yes.

COSTELLO: Thank you, Chad.

MYERS: You're welcome.

COSTELLO: Here's what's ahead in the next half hour of DAYBREAK.

D.C., northern New Jersey and New York the apparent targets of terrorists. We'll have more on the latest terrorist threats ahead.

Plus, damage to Princess Di's memorial fountain. The drastic step officials have now taken to protect it.

And think you can't afford to eat healthy every day? The results of a new study on just how much it costs to get in that daily dose of fruits and veggies.

(COMMERCIAL BREAK)

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Aired August 2, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The nation's capital and New York City are waking up under a heightened alert this morning.
It is Monday, August 2.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, New York City, northern New Jersey and the nation's capital are beginning the work week under a heightened terror threat level. Security is pumped up. The government warns that al Qaeda may be poised to strike financial institutions with car bombs.

The Federal Aviation Administration announces the number of flights to be cut at Chicago's O'Hare International today. The Feds are trying to reduce flight delays and congestion at airports.

President Bush is ready to start implementing some of the 9/11 Commission's recommendations. Officials say the president could issue orders as early as today.

And the first tropical storm of the Atlantic hurricane season is off the coast of the Carolinas right now and it is creeping north -- Chad, how fast is it creeping?

CHAD MYERS, CNN CORRESPONDENT: In fact, Carol, about five miles per hour. Actually, the Weather Service would even call that stationary, because typically if they're going five miles per hour or less, that just means that it's kind of just sitting out there wobbling back and forth. They did move it a little bit from the latest advisories at 5:00. Now only 100 miles from Charleston.

But if you notice, this is the latest radar picture here. This is six hours of radar. The very last picture begins to slide this thing -- it's just sitting there, just sitting there. But the very top, notice the top. That's where the spin is. Can you see that little -- how that one part is going that way and the other part is coming in this way? It appears that the thing is pulling out to sea just a little bit. We eventually expect it to run right up the East Coast, not to make any landfall.

But that doesn't mean we're not going to have some damage with this system, because we're going to have an awful lot of onshore flow with it. And as we bring all of that moisture, all of those thunderstorms onshore, as well, we could see that beach erosion do pretty good things, or pretty bad things, depending on your point of view, to the beaches.

And here is the rain shower activity from the other side of this system, all the way from about Cedar Key down through Tampa. Those are the other feeder bands coming into this thing. So now, although it's not really big at 40 miles per hour, it certainly is large when it comes to the scope of the storm this morning -- Carol.

COSTELLO: Thank you, Chad.

We have more to tell you about that terror alert. The threat level for financial sectors of New York, Washington and northern New Jersey has been raised to orange, which translates to high. Homeland Security Secretary Tom Ridge cites intelligence that indicates al Qaeda plans to use truck bombs to attack. But no time frame is offered. The possible targets include the International Monetary Fund and the World Bank in Washington; Citigroup buildings in New York and the New York Stock Exchange and the Prudential Complex in New Jersey.

Now, in response to the new threat information, commercial traffic has been banned from using the Holland Tunnel to travel from New Jersey into lower Manhattan. The ban applies only to eastbound traffic, so good luck this morning.

The latest threats are more specific than the ones alluded to by Tom Ridge last month, and it's that detail that may have led the president to approve the heightened alert.

Here's CNN's White House correspondent Suzanne Malveaux.

(BEGIN VIDEO TAPE)

SUZANNE MALVEAUX, CNN CORRESPONDENT: The financial buildings, targeted for a possible attack in Washington, the IMS, and World Bank, are just a few blocks away from the White House. There, the President was briefed by his Homeland Security Team that there was very new information coming in about potential terrorist threats.

The intelligence came over a 72-hour period, a White House spokeswoman said. Mr. Bush learning of the new threats while he was campaigning on the road over the weekend. From telephone briefings with his Homeland Security Secretary Tom Ridge.

Top Homeland Security officials met at the White House twice over the weekend, before the president signed off on Ridge's recommendation Sunday morning to raise the terror alert in the financial sector.

RIDGE: This is the first time we have chosen to use the Homeland Security advisory system in such a targeted way.

MALVEAUX: Even before Ridge emerged, news of the move was immediately met with skepticism by some Bush critics.

HOWARD DEAN, (D) FORMER PRESIDENTIAL CANDIDATE: I am concerned that every time something happens that's not good for President Bush, he plays this trump card which is terrorism. His whole campaign is based on the notion that I had can keep you safe, therefore in times of difficulty for America, stick with me. And out comes Tom Ridge.

It's just impossible to know how much of this is real and how much of this is politics. And I suspect there's some of both in it.

MALVEAUX: But not everyone believes the announcement was politically motivated.

SEN. JOE LIEBERMAN, (D) CONNECTICUT: I don't think anybody who has any fairness or is in their right mind would think that the President or the Secretary of Homeland Security would raise an alert level and scare people for political reasons.

MARC RACICOT, CHAIRMAN, BUSH-CHEYNEY '04: No one would engage in that sort of thing. To suggest that I think corrodes the confidence of the people of this country.

(END VIDEO TAPE)

COSTELLO: And along those lines of how to fight terror, aides to President Bush say he could be making an announcement as early as today about those 9/11 Commission recommendations. Advisers say there's still intense debate over the commission's suggestion for a new intelligence czar to run all of the nation's intelligence services. A White House report lists other steps already in the works. Those include setting standards for information sharing between intelligence agencies.

Intelligence czar or not, homeland security says it has specific information from multiple sources this time around. So authorities know what to watch. Of course, that means some hardship for you.

CNN's Jason Carroll looks at what they're doing in New York City.

(BEGIN VIDEO TAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Heightened security outside the New York Stock Exchange. The same not far away at the Prudential Building in Newark, New Jersey. All in response to specific terror threats against financial institutions.

In New York, a law enforcement source told CNN that reconnaissance information is so specific, down to details about meeting rooms and parking structures, it appears surveillance may have been conducted inside the buildings. MAYOR MICHAEL BLOOMBERG, NEW YORK: Let me assure all New Yorkers of one thing. We are deploying our full array of counter-terrorism resources. We will spare no expense and we will take no chances.

CARROLL: Mayor Michael Bloomberg says law enforcement has been working with security departments at targeted corporations like Citigroup to ensure protective measures are taken. Because of concerns about car bombs, special attention will be made to parking structures at targeted sites and to anyone entering or leaving the buildings.

And for commuters, the Holland Tunnel is now closed to commercial traffic into the city. Expect additional inspections at the Lincoln Tunnel and other bridges. Beginning Monday, the Williamsburg Bridge will be closed to truck traffic until further notice.

The National Guard has stepped up patrols of bus and train terminals. So have police.

RAY KELLY, NYPD COMMISSIONER: Obviously, that includes the subway platforms beneath the Citigroup Center in midtown Manhattan, Citigroup headquarters in midtown and its annex in Long Island City, as well as other locations.

CARROLL: Citigroup and Prudential released statements saying added efforts are in place to protect employees.

BLOOMBERG: What they should do is get up tomorrow morning and go to work and go about their business and enjoy the very freedoms that the terrorists find so threatening.

CARROLL: But much is different. A new terror threat and the Republican national convention just a few weeks away. The city pledging to do what it has to do, but it is also counting on the public to do its part, and be as vigilant as ever.

Jason Carroll, CNN, New York.

(END VIDEO TAPE)

COSTELLO: So, if you're wondering about the specifics of this new terror alert, we have some for you. Yes, this time there are specifics. According to the Associated Press, al Qaeda has been tracking the flow of pedestrians outside of one building, apparently to determine how many people could be killed in a single attack; the quality of explosive materials, whether they could get hot enough to melt the steel underpinnings of a building; specifics on building reconnaissance -- how structures could be quietly observed and the locations of police and fire stations, schools and hospitals near specific targets.

For more on the raised threat level, including chilling information on al Qaeda's meticulous planning, log onto our Web site at cnn.com.

Here are some of the stories making news across America this Monday.

Salt Lake City police plan to return to an area landfill in their search for Lori Hacking. The move comes after police received a tip from the Hacking family. The new information came from husband Mark Hacking, who remains in a psychiatric hospital. That information led the family to say that any further volunteer searches were unnecessary.

The Scott Peterson trial resumes today. Last week, the judge refused a defense request to throw out the charges and issue a mistrial. The judge in the case also ruled that jurors can see portions of televised interviews done by Scott Peterson just after his wife went missing.

We may soon know the sexual history of Kobe Bryant's accuser. The judge in Bryant's sexual assault case is expected to release the remainder of the hearing transcripts accidentally sent out to media outlets. The accuser's sexual history was part of those hearings. The judge on Friday issued an apology to the accuser for a series of clerical mistakes that threatened her privacy.

A fire rages through a crowded supermarket. Just ahead on DAYBREAK, the latest on the deadly fire in South America.

Also churches in Baghdad now the target of insurgents. Iraqi officials think they're responsible for the latest attacks.

Also, live to New York from the Nasdaq market site for more on how the city's financial district is dealing with the latest terror threat.

This is DAYBREAK for Monday, August 2.

(COMMERCIAL BREAK)

COSTELLO: Stocks closed higher on Wall Street Friday, with all indexes posting gains for the week, a first in more than a month. The Dow closed up more than 10 points, almost touching 10,140. The Nasdaq up 6 points, at 1887. And the S&P 500 up 1, at 1101. You've got to report that, too.

Time for a little more business buzz. It's a new trading week for Wall Street, but market action begins today under a heightened terrorism threat level for the financial sector.

Sasha Salama has more live for us from the Nasdaq market site.

Tell us more.

SASHA SALAMA, CNN CORRESPONDENT: Good morning, Carol.

The high terror alert, orange level, according to the Department of Homeland Security, is focused on several financial institutions in and around the New York area. In fact, Homeland Security Secretary Tom Ridge said that intelligence is indicating al Qaeda does plan to use truck bombs to attack, but there has been no time frame given. And we're getting -- any time we get more specifics, of course, we bring them to you.

What we do know is that possible targets include the following five targets. The International Monetary Fund and World Bank in Washington, D.C. Those are two of the Washington targets that have been listed.

In New York City, the Citigroup building, as well as the New York Stock Exchange. Now, the New York Stock Exchange says that Monday will bring a regular trading session. In fact, the mayor of New York, Michael Bloomberg, is ringing the opening bell at the stock exchange as a symbol of his ongoing support of the financial institution, and, no doubt, also to show that he is not afraid himself to be there.

And then in New Jersey, in Newark, New Jersey, the Prudential Plaza complex -- now in response to this new threat information, there have been specific bans put on commercial traffic from using the Holland Tunnel, which allows travel into New York from New Jersey. That is being banned. And apparently that ban is only applying to eastbound traffic right now, going into lower Manhattan.

Citigroup apparently sent its employees an e-mail saying that security at Citigroup is taking new, unspecified measures, taking every effort to ensure employees' safety in light of these possible threats and in advance of the Republican convention, which is in New York starting August 30, at the end of the month.

Another piece of information to tell you is that officials are saying there are sufficient safety mechanisms in place to shore -- to ensure that if there were any new terrorist attack on financial targets, that the systems would have backups in place to make sure that, for example, trading would continue uninterrupted and that sort of thing.

These kind of backup systems have been put in place since the 9/11 attacks and we will keep you posted on any new developments as they become available.

That said, financial markets do not do well. There is a lot of anxiety in the face of these kind of high terror alerts. So we are expecting jittery trading, to say the least, at least at the open of trading today -- Carol.

COSTELLO: Sasha Salama live from the Nasdaq market site.

Thank you.

Your news, money, weather and sports.

It's 6:16 Eastern.

Here's what's all new this morning.

At least 275 people were killed during a fire at a crowded market in Paraguay. The fire, which apparently caused two large explosions, burned for about seven hours. Hundreds are severely injured.

In Iraq, a second American soldier has died from wounds suffered in a bomb attack near Samara. One other soldier died Sunday as a result of the roadside bomb. A third soldier was wounded.

In money news, oil prices reached an all time high due to production and distribution fears. Economic problems with Russia's number one oil company and security fears in Iraq were among the reasons for the jump. In culture, a huge crowd showed up in Italy to hear the sounds of silence. Simon and Garfunkel wrapped up the European leg of their reunion tour in front of 600,000 fans in Rome.

In sports, the good and the bad for Greg Maddux and the Cubs. Maddux failed in his bid for career win number 300, but the Cubs still managed to pull out a 6-3 win against the Philadelphia Phillies. Maybe next time -- Chad.

MYERS: Good morning, Carol.

Good morning, everybody.

I've been showing you this for the past couple of hours now, but we want to really kind of update you on this thing. It's beginning to move a little bit to the north-northeast here. This is tropical storm Alex. If you did not hear about it, the A storm, the first storm of the Atlantic hurricane season. We'll keep watching it for you as it travels up the East Coast.

We're even seeing some rain showers with it on the south side of it, as far south as Tampa. All this rain coming on shore here with some thunder and lightning, as well.

Your travelcast for today, though, if you are headed up and down the East Coast, Alex could cut off some routes here from, let's say, from Miami to New York. They may have to fly inland or around it. That may slow down some plane arrivals.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Abu Musab al-Zarqawi has struck again, at least that's what Iraqi officials -- who Iraqi officials are blaming for bombings targeting Christian worshipers. Seven people were killed, more than 60 wounded, in the weekend attacks.

Let's head live to Baghdad for more and Matthew Chance -- hello, Matthew.

MATTHEW CHANCE, CNN CORRESPONDENT: Hi.

There's been round criticism, in fact, from Muslim and Christian leaders following these waves of devastating car bomb attacks in churches across Iraq, four in the Iraqi capital of Baghdad, another one in the northern city of Mosul.

The latest information that we have, our understanding is that, as you mentioned, at least seven people have been killed as a result, right from these explosions. But scores more injured, some of them seriously, according to health ministry officials that we've spoken to.

Now, there's been no claim of responsibility as yet, but Iraqi security officials are pointing the finger of blame at the Jordanian born militant, Abu Musab al-Zarqawi. The coordinated nature of the attacks, five churches targeted in the space of just half an hour, they say, are characteristic of this kind of operation. So that search for Zarqawi is continuing across the country.

COSTELLO: Matthew, what might be the motive for attacking Christian churches in Iraq?

CHANCE: That's a good question because Iraqi Christians are only a small minority here with very little by the way of political ambition. But they have often been, or rather complained of being discriminated against in the past. Many of them are seen as rich compared to other members of the Iraqi society. Many of them own alcohol stores and therefore have been victims in the past both of criminals and of Islamic militants.

Now, nothing has been done on the size of this, along the scale of this, actually coordinating attacks against their churches. Many people believe it's an attempt to try and deepen the divisions between the various communities in Iraq and sort of instill a general sense of chaos in the country. If that's the case, they've certainly succeeded.

COSTELLO: Matthew Chance live in Baghdad for us this morning.

Thank you.

He's home. The U.S. Marine kidnapped in Iraq and threatened with beheading is with his family this morning. Corporal Wassef Ali Hassoun, who is on leave, returned to his brother's home outside of Salt Lake City, Utah. Hassoun says he was held captive for 19 days. He later turned up at the home of relatives in Lebanon. It's still unclear as to how he got there.

A big weekend for a thriller at the box office. Just ahead on DAYBREAK, more on the movie that came out on top and how much it brought in.

It looked like just a day at the beach, but the coast of Carolina is bracing for the first storm of the Atlantic hurricane season.

And our DAYBREAK Photo of the Day. What is it? We'll tell you, after the break.

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MYERS: She just confided to me that she took surfing lessons when she was in Hawaii.

COSTELLO: It was lovely.

MYERS: And so, and therefore we're running into this Photo of the Day.

Did you figure it out? I couldn't. I even knew what it was and I couldn't figure it out. Adriana Desousa of Brazil winning the U.S. Open, the Honda U.S. Open and junior pro competition. There he is. COSTELLO: That's amazing.

MYERS: Twenty-five hundred dollars for the win out in Huntington Beach, California this week.

COSTELLO: That is amazing. You know, the tough thing about surfing...

MYERS: Is that what you were looking like in Hawaii?

COSTELLO: Oh, Chad. Well. You know, the funny thing about surfing is you can actually stand up on the board, which I did, but as soon as I stood up, I became afraid and jumped off. I don't know why.

MYERS: Was someone holding the board for you, I hope?

COSTELLO: No. No, they actually like catch the wave for you and they push you out and you stand up. But for some reason, psychologically I could not stand up on water, so I jumped off the board each time. That was pathetic.

MYERS: All I can think of is that Expedia commercial where that guy is trying to buy his wife surfing lessons. That would be you.

COSTELLO: Yes, the surfing instructor was kind of cute.

Time for our DAYBREAK "Eye Opener" right now. It was a big weekend in "The Village." The horror mystery brought in $50.8 million, to become the weekend's number one movie.

The weekend's other big debut was "The Manchurian Candidate," which finished third. You're watching the first "Manchurian Candidate" now, I'm sure, on your VCR, Chad.

"The Bourne Supremacy" was...

MYERS: On my beta machine.

COSTELLO: On your beta machine.

Say hello to the bride. No, not her. Not her. But it was a unique setting for one couple's wedding. As they said their "I dos" underwater, they were surrounded by sharks. This Italian couple took the plunge to celebrate shark conservation. Their nicknames are bull shark and nurse shark. Bull shark, do you take nurse shark to be your lawfully wedded wife?

MYERS: To have and to bite until death do you part.

COSTELLO: Exactly.

A peaceful end followed a tiger's stroll through New York City. Apollo, the circus tiger, wandered away from the Cole Brothers Circus, which was performing in Queens. After startling churchgoers and motorists, the tiger laid down on the sidewalk. Police then surrounded Apollo while his trainer coaxed the white tiger back into its cage. In fact, motorists spotted the tiger and it caused an accident.

MYERS: Yes. A couple accidents. Yes, sure.

Hey, you've got Alex out there, tropical storm Alex. And you've probably been hearing about it this morning. Maybe you weren't watching over the weekend, but Myrtle Beach obviously heard about it. Tropical storm warnings for you, Myrtle Beach. In fact, almost all the way from just north of Charleston right on up to Cape Hatteras, tropical storm warnings are in effect now. Watches south of there, including Charleston, with a watch there.

The storm, though, is now headed up the northeast very slowly. The Weather Service still calling it stationary. But if you look at this radar picture from just offshore, the last couple of pictures begin to take a little bit of a northward turn. And that northward turn is going to take it across and just to the east of Wilmington and right through Cape Hatteras.

As we look at tropical storm Alex from this morning, notice the storm there. It's way south of New York City. You don't have to worry about it at all. But follow the brown line. The brown line does not take it across any land mass and I don't want you to get all that easy about this storm, because there's still going to be 50, 60 mile per hour winds. There you even see 70 mile per hour wind gusts there. And surf will definitely be up across the East Coast.

COSTELLO: Which means the surfers will be out.

MYERS: They will, but they'll need to be careful, because there'll be a lot of rip currents out there.

COSTELLO: Yes, be careful.

MYERS: Yes.

COSTELLO: Thank you, Chad.

MYERS: You're welcome.

COSTELLO: Here's what's ahead in the next half hour of DAYBREAK.

D.C., northern New Jersey and New York the apparent targets of terrorists. We'll have more on the latest terrorist threats ahead.

Plus, damage to Princess Di's memorial fountain. The drastic step officials have now taken to protect it.

And think you can't afford to eat healthy every day? The results of a new study on just how much it costs to get in that daily dose of fruits and veggies.

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