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CNN Live At Daybreak

Hurricane Headed Toward Florida Panhandle, Florida Keys; U.S. Assault on Militiamen Loyal to Muqtada al-Sadr in Najaf

Aired August 12, 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: Explosions, gunfire and billowing smoke -- U.S. forces launch a major offensive in the Iraqi city of Najaf this morning.
It is Thursday, August 12.

This is DAYBREAK.

And good morning to you.

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

Now in the news, thousands of U.S. troops part of a major offensive in the Iraqi city of Najaf. It is happening right now. You're looking at new pictures just into us this morning. You see the helicopter gunship there. We're going to have a live report for you from that embattled city in just about two minutes.

Also, fighting under way in the city of al-Kut. That's about 100 miles south of Baghdad. Iraqi security forces are battling insurgents who attacked city hall, police stations and national guard barracks.

Hundreds of firefighters also battling a fast moving blaze near northern California's Shasta Lake. The fire has already destroyed 40 structures and is threatening at least 300 more buildings. Residents have been evacuated from that resort area.

And the problem in Florida is not fire, but water. Residents are boarding up as tropical storm Bonnie heads toward the Florida Panhandle and hurricane Charley is aiming for the Keys.

Chad is live in Panama City Beach, Florida this morning.

He has an update on Bonnie.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

You didn't see an awful lot of plywood being bought here yesterday, but we did go to the Wal-Mart just to kind of check it out. The beer was gone. Bottled water was gone. Rope was gone. There was no rope at all in the marine section whatsoever. People out there are obviously retying their boats, tying them, spider tying them in the mangroves, whatever, getting them out of the way.

And everything else really doing pretty well. Batteries were a little bit in short supply. But people really realize here the problem with Bonnie is that if the water comes in, the water is the problem, and that's when you lose fresh water. And so they were out there buying bottled water. A lot of folks just put water in their sink.

Here is what Bonnie looks like right now. It lost a lot of intensity overnight. But we still have some flare-up on the east side of the storm this morning. Already seeing some of that orange area there right along to the Apalachicola area. And the eye wall itself, if there is an eye wall, just the center of a tropical storm, should move right over our location here in about eight hours or so.

We had a lot of rain overnight, even some street flooding out there. The signs were already out yesterday -- caution, high water. And it hadn't even started to rain yet. But then more rains obviously coming in, especially from Panama City down to Mexico Beach and then right on back into about St. George's Island and the points east of there.

Here is Panama City. Here's the rain. Another batch of rain coming onshore here at this hour and a lot more rain back out to the west.

Charley got stronger overnight, unlike Bonnie, that got weaker. Charley now 85 miles per hour, expected to be a category two. It's going to go over Cuba, then over Key West and then very close to Tampa. And this is the problem. It could go all the way from Naples right on up to Cedar Key. But we're not going to focus on the center of Charley. We have to focus on what Charley can do to the major cities. And, Carol, that could be a lot. We'll get into that in 15 minutes. But Charley's impact on the west coast of Florida will be more significant, obviously, than Bonnie's impact on this part of Florida -- back to you.

COSTELLO: And we will get into that later, Chad.

We'll have a live report with more on Bonnie and Charley from the National Hurricane Center in Miami.

That's about five minutes away.

It has begun. In Najaf, a major offensive under way to take control of that city. Some 2,000 U.S. troops and 1,800 Iraqi security men are now deployed around the city. There is gunfire and there is thick smoke.

Let's head live to Najaf and Matthew Chance, who is with the U.S. Marines.

Bring us up to date -- Matthew.

MATTHEW CHANCE, CNN CORRESPONDENT: Carol, thank you.

In this sweltering heat, well above 120 degrees Fahrenheit, U.S. forces battling with the Medhi Army, loyal to the radical Shiite cleric Muqtada al-Sadr in the holy city of Najaf. Much of that fighting concentrating around the central area of the old city near, of course, the Iman Ali Mosque, which is one of the holiest shrines in Shia Islam. It's been a constant thorn in the side of the U.S. forces as they attempt to get those militants out of the area.

Only a few hours ago, we're told by the U.S. military, 25 mortars were fired from inside that mosque, from the inner compound of that mosque out toward an Iraqi police station, causing significant damage and significant injuries, and really underlining the kind of threat and the kind of problems U.S. forces are faced with as they try to tackle the Medhi Army. now, the mosque and the other holy sites in the city are basically seen as safe havens by the Medhi Army because they understand that the U.S. forces see them as a red line. They're very reluctant to go in because they understand the offense that would cause to the local Muslim Shia population. They don't want to provoke any kind of widespread backlash.

They're liaising very closely with the Iraqi government to try and work out a way to bring this crisis to an end. What they're coming up with is a situation where they're saying well, if we do have to go into the mosque, we'll use Iraqi forces to do it, the hope being that that would cause much less offense -- Carol.

COSTELLO: Matthew Chance reporting live from Najaf this morning.

This is very much a guerrilla war. So a question this morning? Is there any way to sin such a war? And what is the objective here for U.S. troops?

Let's head live to London and Richard Beeston.

Actually, Richard Beeston is not there. He is the diplomatic editor for "The London Times" and we're going to get to him as soon as we get him up live from London.

Are we going to the National Hurricane Center in Miami now?

Ed Rappaport is joining us live from there.

Good morning, Ed.

ED RAPPAPORT, NATIONAL HURRICANE CENTER: Good morning.

COSTELLO: Let's talk about hurricane Charley. It's taken a slight turn.

So where do you think it's going to hit, if it does, in the United States now?

RAPPAPORT: Yes, that's correct. We're seeing a slight turn now in our forecast tracks off to the left or to the west. And we still have quite a risk, though, up for the Florida Keys and the southern Florida Peninsula, mainly in the next 36 hours or so, 24 to 36 hours, beginning on the west coast of Florida and in the Florida Keys.

COSTELLO: How severe do you think it'll be? Is there any way to tell? RAPPAPORT: Right now we have a category one hurricane. That's expected to strengthen. The center of the hurricane is going to be passing over warm water for the next 24 hours. And we have a relatively light, sheer environment. What that means is continued strengthening. We expect to have a category two, perhaps a category three hurricane at landfall.

COSTELLO: So if you're there now, should you get out?

RAPPAPORT: Well, it's very important to follow the recommendations of local emergency management officials. We've been working closely with them. There is now a hurricane warning up for a portion of the Florida Keys and the southwest peninsula of Florida and a hurricane watch extending northward from there.

COSTELLO: So should you get in your car and leave right now? I guess that's what I'm asking. What are you advising people to do if they're still there?

RAPPAPORT: I'm advising them to pay close attention to what local emergency management officials are telling them for their local communities.

COSTELLO: Let's talk about tropical storm Bonnie.

Is she a bust, so to speak? Or may she pick up steam and become a factor once again?

RAPPAPORT: It's a tropical storm with winds of about 50 miles per hour. That's significant in that it'll bring heavy rain with the possibility of flooding and some storm surge as it comes ashore later this morning and this afternoon. It's still a fairly large area of thunderstorms and precipitation here. We're going to have some flooding problems as it moves inland.

COSTELLO: How unusual is it to have two such storms developing at the same time?

RAPPAPORT: It's not really very unusual to have two storms in the Atlantic at one time. In fact, we've had as many as four and five at one time. What makes this unprecedented is to have two storms focused on the United States at the same time and, in fact, making landfall in or near Florida at the same time.

COSTELLO: Ed Rappaport live from Miami from the National Hurricane Center.

Thank you for joining DAYBREAK this morning.

For more on the double dose of storms heading Florida's way, click onto our Web site, cnn.com/weather.

You've got computers? At 15 after, AOL is getting ready to make a very nice offer to some customers. But there is a catch. We'll have a live report for you out of New York. At 25 minutes past the hour, why is the Buckeye State so crucial to both presidential candidates? And why has it become a joke? We'll have a live report for you out of Dayton, Ohio.

And at 50 minutes past, if you're looking for a career makeover, you need to stick around. We'll tell you what the hot jobs are and where to look for them.

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

(COMMERCIAL BREAK)

COSTELLO: There is fighting going on right now in the city of Najaf in Iraq. We have pictures to show you right now. There are about 2,000 U.S. Marines, along with about 1,800 Iraqi national guardsmen. And they're exchange gunfire with the Medhi Army. Of course, those are insurgents loyal to Muqtada al-Sadr, a radical Shiite cleric.

Some of those insurgents are holed up in a holy mosque and they're launching mortars from inside, and that's creating quite a dilemma for forces on the outside, of course, U.S. forces and the Iraqi National Guardsmen.

So, this is very much a guerrilla war.

And I was asking the question before, can you win a guerrilla war? And what is the objective in Najaf?

Let's head live to London and Richard Beeston, who is the diplomatic editor for "The Times of London."

Welcome to DAYBREAK.

RICHARD BEESTON, "THE TIMES OF LONDON": Thank you.

COSTELLO: The Iraqi security forces are leading the charge in Najaf. The Iraqi security minister admits they're not fully trained.

Is this a good idea?

BEESTON: Well, it's a pretty high risk strategy. We've been waiting for this offensive to happen for days now. It does appear to be taking place. It has to be a very delicate operation, though. We're dealing with the holiest shrine in Shia Islam. If something went wrong, it could inflame millions and millions of people who -- many of whom supported the U.S. intervention in the first place.

So it's a very delicate operation and obviously the insurgents are taking cover in the one place that they know the Americans are uncomfortable about operating in.

COSTELLO: And it could not only inflame Shiites within Iraq, but in Iran, as well. BEESTON: And, in fact, yesterday I think the spiritual leader of Iran spoke out against this and called it a desecration. And you can imagine that it's going to whip up and inflame emotions right across the big Shia communities in Lebanon and Iran and elsewhere in the Middle East.

COSTELLO: So...

BEESTON: So, well, yes, go ahead.

COSTELLO: No, I was just going to say, the Iraqi president said if there is a need to go inside that mosque and get those insurgents out of there, he wants Iraqi security forces to do that.

Will that solve the problem?

BEESTON: Well, they're an untested force, as you said. They appear to have got some 1,800 of them ready to go in. But most of them will have been just fresh out of their basic training. And they'll be fighting fellow Iraqis. So it's putting a huge responsibility on them to do that. And it's a high risk strategy.

So we may yet see that -- ourselves in a situation where we have another stand-off with Muqtada al-Sadr's Medhi Army by the end of the day.

COSTELLO: So, in light of saying all that, what is the objective here? Is it to take over the mosque? Is it to take over the city? Or is it to kill as many of Muqtada al-Sadr's militiamen as possible?

BEESTON: I think really there's a political objective in all this fighting. I mean it's Iyad Allawi, the Iraqi prime minister, has to put his stamp of authority over this country. And one of the biggest threats he faces in doing that is to curtail the aspirations of Muqtada al-Sadr, who, as we've seen, has hundreds, thousands of militiamen operating across the country. And he's got to show to, I suppose, Iraqis and his own government that he's able to put his stamp on it. And I think that's really the primary objective.

Obviously, if he fails, he may come out of this weaker than he went in. And the Medhi Army has lots of tricks up its sleeve. It can hit and run. It's able to inflame other areas. We've seen fighting in the British sector in Basra and Al Amarah, in Kut. We've seen demonstrations against the Italians in Nasiriyah and obviously also clashes in Baghdad itself, in Sadr City. So he's taking on, really, quite a big challenge.

COSTELLO: Certainly so.

Richard Beeston, who is the diplomatic editor for "The Times of London."

Thank you for joining DAYBREAK this morning.

A little business for you now. Tech stocks take a tumble on Wall Street. Later this morning, the Nasdaq will open down more than 26 points. The Dow opens down about 6 points and the S&P 500 opens down 3 1/4 points.

So, time for a little more business buzz.

AOL hopes to lure new subscribers by selling cheap PCs.

Carrie Lee is live at the Nasdaq market site.

How cheap are we talking about?

CARRIE LEE, CNN CORRESPONDENT: Well, Carol, we're talking $600. That's an annual cost for the computer, for the monitor, printer and one year of Internet dial-up service. That's the catch. AOL is selling low cost PCs to minorities and seniors. They're doing this through Office Depot stores starting this month. But customers have to sign up for one year of AOL dialup Internet service, and that costs about $24 a month.

So add this all together, the total cost for the first year $600. But the hardware here -- the computer, monitor, printer -- is $300. Of course AOL is the online unit of Time Warner, our parent company -- Carol.

COSTELLO: Carrie Lee live from the NASDAQ market site.

Thank you.

Your news, money, weather and sports.

It's 6:15 Eastern.

Here's what's all new this morning.

And incredible scene on Interstate 10 in Arizona. Dozens of vehicles were involved in a series of fiery crashes about 45 miles west of Phoenix. Among the vehicles, a passenger bus and six tractor trailers. Two people are dead, at least 35 injured. Authorities believe a dust storm is to blame.

The California State Supreme Court will issue its ruling today on whether San Francisco's mayor illegally allowed gay couples to get married. The court is also expected to decide whether to recognize the thousands of same-sex marriages already performed.

In money news, markdowns are part of this toy story. Toys R Us is planning a $150 million toy liquidation in an effort to improve its bottom line. The company also planning to spin-off its Babies R Us franchise.

In culture, a poem for you. Ted Kooser will be named a poet of much fame. The Nebraskan is getting set to become the country's new poet laureate.

In sports, sprinter Gail Devers is going to get a chance at her third Olympic gold in the 100 meters. Devers was chosen to replace Tory Edwards in the events. Edwards was banned after a positive drug test. Now for the weather. Chad is in Florida; Rob's up in the Weather Center.

Let's start with Chad.

MYERS: All right, good morning, Carol.

I just walked around the other side of the building. A lot less shelter over there. Winds are maybe 15, maybe 20 miles per hour now. You can feel that air getting sucked into the storm. The storm is still about 140 miles that way, offshore. So as it continues to develop today, if it does get a little bit stronger, it's probably not over yet for this area, even though we have downgraded it. Now it's only a tropical storm warning, not hurricane warnings.

Here are some the graphics now for you for Bonnie itself. Bonnie, tropical storm Bonnie, you can see the blow up of the oranges, a lot like yesterday. It kind of diminished a little bit overnight. But hurricane hunter aircraft are in there. They're flying around looking for any higher winds, moving out toward Panama City and Apalachicola, St. Georges Island.

Other than that, though, the storm itself is going to drive right over Panama City, right over southern Georgia and then on up to Piedmont. And, for that matter, there's Bonnie, there's the wind, 50 miles per hour, 175 miles -- this was at 5:00 -- 175 miles from Apalachicola. Now you do the math. That's about 160 miles, because, obviously, that was an hour ago.

Landfall expected very close to Panama City -- Carol, back to you.

COSTELLO: OK, let's talk about hurricane Charley now -- Rob, it's your turn.

MARCIANO: Thanks, Carol.

We'll roll across. Hurricane Charley is going to be strengthening, we think, over the next 24 hours. Just briefly we'll get through this is the Tallahassee radar. So here's where Chad is and that's where the rain is. So it'll be continuing to come on in as tropical storm Bonnie makes landfall later on today.

This satellite shows both Bonnie here in the Gulf of Mexico and then here's Charley, a stronger storm, as Chad mentioned, Cuba and then the Grand Cayman Islands. Right now 85 mile an hour winds. It is expected to strengthen heading into some really warm water and light winds. That typically lets them strengthen.

Then it will turn across Cuba tonight, somewhere in the Florida Keys, and then tomorrow afternoon we think somewhere around here. And because it is coming in at such a weird hour, almost parallel to the west coast of Florida, it could hit just about anybody.

There's Bonnie. Rainfall across the Carolinas, stretching all the way across the Northeast, Carol. You go east of the Appalachian Mountains, the next several days will be just god awful wet. And in many areas it'll be flooding problems, from Florida all the way up possibly into New York City. A little west of there looking pretty nice -- back to you in the studio.

COSTELLO: All right, thank you, Rob.

MARCIANO: You bet.

COSTELLO: Take a look at these pictures. Just ahead on DAYBREAK, take a look. Fast moving wildfires spread across northern California, creating a path of destruction. A live report with the latest from the area in about 15 minutes.

And what ordinary citizens and families of the victims of 9/11 are learning from the 9/11 Road Show crisscrossing America. We'll have more on that story still to come on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Changing focus in the West. John Kerry will be pushing his economic and tax plans today during appearances in California and Oregon. The polls give Kerry a double digit lead in California, but the race in Oregon is much tighter.

President Bush also campaigning in the West today; first, a speech to a carpenters' union conference in Nevada, then a fundraiser in California.

And Vice President Dick Cheney also on the trail today. Cheney speaks four hours from now in Dayton, Ohio. He plans to criticize John Kerry for saying he'd fight a war on terror that's sensitive.

So, yet another visit to Ohio for Dick Cheney. Both Republicans and Democrats have visited Ohio so many times, it's becoming a joke.

Live from Dayton, Mary McCarty from the "Dayton Daily News."

Welcome, Mary.

MARY MCCARTY, COLUMNIST, "DAYTON DAILY NEWS": Thank you.

Good morning.

COSTELLO: Did you really run into Dick Cheney in an Ohio Krispy Kreme donut shop?

MCCARTY: Well, I was taking a little literary license there.

COSTELLO: I know. I read your editorial and I found it really funny.

MCCARTY: Well, thank you.

COSTELLO: It was funny.

Is the flattery factor of so many visits really starting to get annoying now?

MCCARTY: No, not really. We're still flattered. We're thrilled to death in Ohio to be getting all the attention. And it's fun to take your kids out and see the president and the senator and vice president. But it has become somewhat of a joke because, you know, every time we turn around, you know, there's the president, there's the senator. This morning I can't go to my parking lot because Dick Cheney is speaking at the Dayton Convention Center.

COSTELLO: Oh, you mean your parking spot has been taken? Now, that would make me angry.

We're looking at a graphic here. Eleven visits by John Kerry, six visits by President Bush. And you can bet they're going to visit more in the future. I know both candidates try to get down with the common folk. And in Ohio, that usually means flipping pancakes and talking without the Gs, you know, talking as in T-A-L-K-I-N, without the G.

MCCARTY: Yes, or fishing.

COSTELLO: Right.

Is there a point when it all becomes rather cloying?

MCCARTY: Well, I don't think we've reached that point. I enjoy seeing democracy in action and I think Ohioans do. We're a very important state and we like that fact. No Republican has ever won the White House without taking Ohio and only two Democrats have so, you know...

COSTELLO: But, you know, I have always wondered about, you know, candidates going to a state and kissing babies and flipping pancakes and taking a big bite from an ear of corn, and if that stuff really works and resonates with the people of Ohio or Iowa or Nebraska or wherever they do it.

MCCARTY: Oh, I don't think it resonates any more here than it does anywhere else. And I think, you know, sometimes I'm hungry to hear some more substantial things than what you hear in a rally. But it's still exciting and not cloying yet.

COSTELLO: Not yet.

You mentioned an article in the "New York Times." You mentioned it in your editorial that read, "Dayton, enjoy the Hollywood luster while you can." And you found that irritating.

MCCARTY: Yes.

COSTELLO: Why?

MCCARTY: Oh, because we get tired of East and West Coast cities looking down their noses at us and, you know, considering everything in between a flyover state. So, you know, and there's a lot to do in Dayton and Dayton's a great place. COSTELLO: It certainly is.

MCCARTY: So, you know, we find that annoying.

COSTELLO: Yes. After all, the Wright brothers did develop their airplane there.

MCCARTY: Absolutely.

COSTELLO: Exactly.

Mary McCarty from the "Dayton Daily News" joining us live on DAYBREAK this morning.

Thank you.

The headlines coming your way in two minutes.

But first, your DAYBREAK Daytimers -- stories you'll see later today on CNN.

(COMMERCIAL BREAK)

COSTELLO: The Sunshine State bracing for two storms as residents wait to see what Bonnie and Charley will do.

It is Thursday, August 12.

This is DAYBREAK.

And good morning to you.

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

Now in the news, in the Iraqi city of Najaf, the offensive is on. Thousands of American troops, backed by tanks and helicopter gunships, are attacking militiamen loyal to a radical cleric. Heavy fighting now reported in the city.

Insurgents believed to be Medhi Army militiamen are battling those Iraqi security forces today in al-Kut, as well. That's 100 miles southeast of Baghdad. The insurgents attacked city hall, police stations and national guard barracks.

A bear of a wildfire outside of Redding, California. The thousand acre Bear Fire has destroyed 40 structures and injured five people so far. It's believed sparks from a lawnmower started this fire.

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Aired August 12, 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: Explosions, gunfire and billowing smoke -- U.S. forces launch a major offensive in the Iraqi city of Najaf this morning.
It is Thursday, August 12.

This is DAYBREAK.

And good morning to you.

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

Now in the news, thousands of U.S. troops part of a major offensive in the Iraqi city of Najaf. It is happening right now. You're looking at new pictures just into us this morning. You see the helicopter gunship there. We're going to have a live report for you from that embattled city in just about two minutes.

Also, fighting under way in the city of al-Kut. That's about 100 miles south of Baghdad. Iraqi security forces are battling insurgents who attacked city hall, police stations and national guard barracks.

Hundreds of firefighters also battling a fast moving blaze near northern California's Shasta Lake. The fire has already destroyed 40 structures and is threatening at least 300 more buildings. Residents have been evacuated from that resort area.

And the problem in Florida is not fire, but water. Residents are boarding up as tropical storm Bonnie heads toward the Florida Panhandle and hurricane Charley is aiming for the Keys.

Chad is live in Panama City Beach, Florida this morning.

He has an update on Bonnie.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

You didn't see an awful lot of plywood being bought here yesterday, but we did go to the Wal-Mart just to kind of check it out. The beer was gone. Bottled water was gone. Rope was gone. There was no rope at all in the marine section whatsoever. People out there are obviously retying their boats, tying them, spider tying them in the mangroves, whatever, getting them out of the way.

And everything else really doing pretty well. Batteries were a little bit in short supply. But people really realize here the problem with Bonnie is that if the water comes in, the water is the problem, and that's when you lose fresh water. And so they were out there buying bottled water. A lot of folks just put water in their sink.

Here is what Bonnie looks like right now. It lost a lot of intensity overnight. But we still have some flare-up on the east side of the storm this morning. Already seeing some of that orange area there right along to the Apalachicola area. And the eye wall itself, if there is an eye wall, just the center of a tropical storm, should move right over our location here in about eight hours or so.

We had a lot of rain overnight, even some street flooding out there. The signs were already out yesterday -- caution, high water. And it hadn't even started to rain yet. But then more rains obviously coming in, especially from Panama City down to Mexico Beach and then right on back into about St. George's Island and the points east of there.

Here is Panama City. Here's the rain. Another batch of rain coming onshore here at this hour and a lot more rain back out to the west.

Charley got stronger overnight, unlike Bonnie, that got weaker. Charley now 85 miles per hour, expected to be a category two. It's going to go over Cuba, then over Key West and then very close to Tampa. And this is the problem. It could go all the way from Naples right on up to Cedar Key. But we're not going to focus on the center of Charley. We have to focus on what Charley can do to the major cities. And, Carol, that could be a lot. We'll get into that in 15 minutes. But Charley's impact on the west coast of Florida will be more significant, obviously, than Bonnie's impact on this part of Florida -- back to you.

COSTELLO: And we will get into that later, Chad.

We'll have a live report with more on Bonnie and Charley from the National Hurricane Center in Miami.

That's about five minutes away.

It has begun. In Najaf, a major offensive under way to take control of that city. Some 2,000 U.S. troops and 1,800 Iraqi security men are now deployed around the city. There is gunfire and there is thick smoke.

Let's head live to Najaf and Matthew Chance, who is with the U.S. Marines.

Bring us up to date -- Matthew.

MATTHEW CHANCE, CNN CORRESPONDENT: Carol, thank you.

In this sweltering heat, well above 120 degrees Fahrenheit, U.S. forces battling with the Medhi Army, loyal to the radical Shiite cleric Muqtada al-Sadr in the holy city of Najaf. Much of that fighting concentrating around the central area of the old city near, of course, the Iman Ali Mosque, which is one of the holiest shrines in Shia Islam. It's been a constant thorn in the side of the U.S. forces as they attempt to get those militants out of the area.

Only a few hours ago, we're told by the U.S. military, 25 mortars were fired from inside that mosque, from the inner compound of that mosque out toward an Iraqi police station, causing significant damage and significant injuries, and really underlining the kind of threat and the kind of problems U.S. forces are faced with as they try to tackle the Medhi Army. now, the mosque and the other holy sites in the city are basically seen as safe havens by the Medhi Army because they understand that the U.S. forces see them as a red line. They're very reluctant to go in because they understand the offense that would cause to the local Muslim Shia population. They don't want to provoke any kind of widespread backlash.

They're liaising very closely with the Iraqi government to try and work out a way to bring this crisis to an end. What they're coming up with is a situation where they're saying well, if we do have to go into the mosque, we'll use Iraqi forces to do it, the hope being that that would cause much less offense -- Carol.

COSTELLO: Matthew Chance reporting live from Najaf this morning.

This is very much a guerrilla war. So a question this morning? Is there any way to sin such a war? And what is the objective here for U.S. troops?

Let's head live to London and Richard Beeston.

Actually, Richard Beeston is not there. He is the diplomatic editor for "The London Times" and we're going to get to him as soon as we get him up live from London.

Are we going to the National Hurricane Center in Miami now?

Ed Rappaport is joining us live from there.

Good morning, Ed.

ED RAPPAPORT, NATIONAL HURRICANE CENTER: Good morning.

COSTELLO: Let's talk about hurricane Charley. It's taken a slight turn.

So where do you think it's going to hit, if it does, in the United States now?

RAPPAPORT: Yes, that's correct. We're seeing a slight turn now in our forecast tracks off to the left or to the west. And we still have quite a risk, though, up for the Florida Keys and the southern Florida Peninsula, mainly in the next 36 hours or so, 24 to 36 hours, beginning on the west coast of Florida and in the Florida Keys.

COSTELLO: How severe do you think it'll be? Is there any way to tell? RAPPAPORT: Right now we have a category one hurricane. That's expected to strengthen. The center of the hurricane is going to be passing over warm water for the next 24 hours. And we have a relatively light, sheer environment. What that means is continued strengthening. We expect to have a category two, perhaps a category three hurricane at landfall.

COSTELLO: So if you're there now, should you get out?

RAPPAPORT: Well, it's very important to follow the recommendations of local emergency management officials. We've been working closely with them. There is now a hurricane warning up for a portion of the Florida Keys and the southwest peninsula of Florida and a hurricane watch extending northward from there.

COSTELLO: So should you get in your car and leave right now? I guess that's what I'm asking. What are you advising people to do if they're still there?

RAPPAPORT: I'm advising them to pay close attention to what local emergency management officials are telling them for their local communities.

COSTELLO: Let's talk about tropical storm Bonnie.

Is she a bust, so to speak? Or may she pick up steam and become a factor once again?

RAPPAPORT: It's a tropical storm with winds of about 50 miles per hour. That's significant in that it'll bring heavy rain with the possibility of flooding and some storm surge as it comes ashore later this morning and this afternoon. It's still a fairly large area of thunderstorms and precipitation here. We're going to have some flooding problems as it moves inland.

COSTELLO: How unusual is it to have two such storms developing at the same time?

RAPPAPORT: It's not really very unusual to have two storms in the Atlantic at one time. In fact, we've had as many as four and five at one time. What makes this unprecedented is to have two storms focused on the United States at the same time and, in fact, making landfall in or near Florida at the same time.

COSTELLO: Ed Rappaport live from Miami from the National Hurricane Center.

Thank you for joining DAYBREAK this morning.

For more on the double dose of storms heading Florida's way, click onto our Web site, cnn.com/weather.

You've got computers? At 15 after, AOL is getting ready to make a very nice offer to some customers. But there is a catch. We'll have a live report for you out of New York. At 25 minutes past the hour, why is the Buckeye State so crucial to both presidential candidates? And why has it become a joke? We'll have a live report for you out of Dayton, Ohio.

And at 50 minutes past, if you're looking for a career makeover, you need to stick around. We'll tell you what the hot jobs are and where to look for them.

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

(COMMERCIAL BREAK)

COSTELLO: There is fighting going on right now in the city of Najaf in Iraq. We have pictures to show you right now. There are about 2,000 U.S. Marines, along with about 1,800 Iraqi national guardsmen. And they're exchange gunfire with the Medhi Army. Of course, those are insurgents loyal to Muqtada al-Sadr, a radical Shiite cleric.

Some of those insurgents are holed up in a holy mosque and they're launching mortars from inside, and that's creating quite a dilemma for forces on the outside, of course, U.S. forces and the Iraqi National Guardsmen.

So, this is very much a guerrilla war.

And I was asking the question before, can you win a guerrilla war? And what is the objective in Najaf?

Let's head live to London and Richard Beeston, who is the diplomatic editor for "The Times of London."

Welcome to DAYBREAK.

RICHARD BEESTON, "THE TIMES OF LONDON": Thank you.

COSTELLO: The Iraqi security forces are leading the charge in Najaf. The Iraqi security minister admits they're not fully trained.

Is this a good idea?

BEESTON: Well, it's a pretty high risk strategy. We've been waiting for this offensive to happen for days now. It does appear to be taking place. It has to be a very delicate operation, though. We're dealing with the holiest shrine in Shia Islam. If something went wrong, it could inflame millions and millions of people who -- many of whom supported the U.S. intervention in the first place.

So it's a very delicate operation and obviously the insurgents are taking cover in the one place that they know the Americans are uncomfortable about operating in.

COSTELLO: And it could not only inflame Shiites within Iraq, but in Iran, as well. BEESTON: And, in fact, yesterday I think the spiritual leader of Iran spoke out against this and called it a desecration. And you can imagine that it's going to whip up and inflame emotions right across the big Shia communities in Lebanon and Iran and elsewhere in the Middle East.

COSTELLO: So...

BEESTON: So, well, yes, go ahead.

COSTELLO: No, I was just going to say, the Iraqi president said if there is a need to go inside that mosque and get those insurgents out of there, he wants Iraqi security forces to do that.

Will that solve the problem?

BEESTON: Well, they're an untested force, as you said. They appear to have got some 1,800 of them ready to go in. But most of them will have been just fresh out of their basic training. And they'll be fighting fellow Iraqis. So it's putting a huge responsibility on them to do that. And it's a high risk strategy.

So we may yet see that -- ourselves in a situation where we have another stand-off with Muqtada al-Sadr's Medhi Army by the end of the day.

COSTELLO: So, in light of saying all that, what is the objective here? Is it to take over the mosque? Is it to take over the city? Or is it to kill as many of Muqtada al-Sadr's militiamen as possible?

BEESTON: I think really there's a political objective in all this fighting. I mean it's Iyad Allawi, the Iraqi prime minister, has to put his stamp of authority over this country. And one of the biggest threats he faces in doing that is to curtail the aspirations of Muqtada al-Sadr, who, as we've seen, has hundreds, thousands of militiamen operating across the country. And he's got to show to, I suppose, Iraqis and his own government that he's able to put his stamp on it. And I think that's really the primary objective.

Obviously, if he fails, he may come out of this weaker than he went in. And the Medhi Army has lots of tricks up its sleeve. It can hit and run. It's able to inflame other areas. We've seen fighting in the British sector in Basra and Al Amarah, in Kut. We've seen demonstrations against the Italians in Nasiriyah and obviously also clashes in Baghdad itself, in Sadr City. So he's taking on, really, quite a big challenge.

COSTELLO: Certainly so.

Richard Beeston, who is the diplomatic editor for "The Times of London."

Thank you for joining DAYBREAK this morning.

A little business for you now. Tech stocks take a tumble on Wall Street. Later this morning, the Nasdaq will open down more than 26 points. The Dow opens down about 6 points and the S&P 500 opens down 3 1/4 points.

So, time for a little more business buzz.

AOL hopes to lure new subscribers by selling cheap PCs.

Carrie Lee is live at the Nasdaq market site.

How cheap are we talking about?

CARRIE LEE, CNN CORRESPONDENT: Well, Carol, we're talking $600. That's an annual cost for the computer, for the monitor, printer and one year of Internet dial-up service. That's the catch. AOL is selling low cost PCs to minorities and seniors. They're doing this through Office Depot stores starting this month. But customers have to sign up for one year of AOL dialup Internet service, and that costs about $24 a month.

So add this all together, the total cost for the first year $600. But the hardware here -- the computer, monitor, printer -- is $300. Of course AOL is the online unit of Time Warner, our parent company -- Carol.

COSTELLO: Carrie Lee live from the NASDAQ market site.

Thank you.

Your news, money, weather and sports.

It's 6:15 Eastern.

Here's what's all new this morning.

And incredible scene on Interstate 10 in Arizona. Dozens of vehicles were involved in a series of fiery crashes about 45 miles west of Phoenix. Among the vehicles, a passenger bus and six tractor trailers. Two people are dead, at least 35 injured. Authorities believe a dust storm is to blame.

The California State Supreme Court will issue its ruling today on whether San Francisco's mayor illegally allowed gay couples to get married. The court is also expected to decide whether to recognize the thousands of same-sex marriages already performed.

In money news, markdowns are part of this toy story. Toys R Us is planning a $150 million toy liquidation in an effort to improve its bottom line. The company also planning to spin-off its Babies R Us franchise.

In culture, a poem for you. Ted Kooser will be named a poet of much fame. The Nebraskan is getting set to become the country's new poet laureate.

In sports, sprinter Gail Devers is going to get a chance at her third Olympic gold in the 100 meters. Devers was chosen to replace Tory Edwards in the events. Edwards was banned after a positive drug test. Now for the weather. Chad is in Florida; Rob's up in the Weather Center.

Let's start with Chad.

MYERS: All right, good morning, Carol.

I just walked around the other side of the building. A lot less shelter over there. Winds are maybe 15, maybe 20 miles per hour now. You can feel that air getting sucked into the storm. The storm is still about 140 miles that way, offshore. So as it continues to develop today, if it does get a little bit stronger, it's probably not over yet for this area, even though we have downgraded it. Now it's only a tropical storm warning, not hurricane warnings.

Here are some the graphics now for you for Bonnie itself. Bonnie, tropical storm Bonnie, you can see the blow up of the oranges, a lot like yesterday. It kind of diminished a little bit overnight. But hurricane hunter aircraft are in there. They're flying around looking for any higher winds, moving out toward Panama City and Apalachicola, St. Georges Island.

Other than that, though, the storm itself is going to drive right over Panama City, right over southern Georgia and then on up to Piedmont. And, for that matter, there's Bonnie, there's the wind, 50 miles per hour, 175 miles -- this was at 5:00 -- 175 miles from Apalachicola. Now you do the math. That's about 160 miles, because, obviously, that was an hour ago.

Landfall expected very close to Panama City -- Carol, back to you.

COSTELLO: OK, let's talk about hurricane Charley now -- Rob, it's your turn.

MARCIANO: Thanks, Carol.

We'll roll across. Hurricane Charley is going to be strengthening, we think, over the next 24 hours. Just briefly we'll get through this is the Tallahassee radar. So here's where Chad is and that's where the rain is. So it'll be continuing to come on in as tropical storm Bonnie makes landfall later on today.

This satellite shows both Bonnie here in the Gulf of Mexico and then here's Charley, a stronger storm, as Chad mentioned, Cuba and then the Grand Cayman Islands. Right now 85 mile an hour winds. It is expected to strengthen heading into some really warm water and light winds. That typically lets them strengthen.

Then it will turn across Cuba tonight, somewhere in the Florida Keys, and then tomorrow afternoon we think somewhere around here. And because it is coming in at such a weird hour, almost parallel to the west coast of Florida, it could hit just about anybody.

There's Bonnie. Rainfall across the Carolinas, stretching all the way across the Northeast, Carol. You go east of the Appalachian Mountains, the next several days will be just god awful wet. And in many areas it'll be flooding problems, from Florida all the way up possibly into New York City. A little west of there looking pretty nice -- back to you in the studio.

COSTELLO: All right, thank you, Rob.

MARCIANO: You bet.

COSTELLO: Take a look at these pictures. Just ahead on DAYBREAK, take a look. Fast moving wildfires spread across northern California, creating a path of destruction. A live report with the latest from the area in about 15 minutes.

And what ordinary citizens and families of the victims of 9/11 are learning from the 9/11 Road Show crisscrossing America. We'll have more on that story still to come on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Changing focus in the West. John Kerry will be pushing his economic and tax plans today during appearances in California and Oregon. The polls give Kerry a double digit lead in California, but the race in Oregon is much tighter.

President Bush also campaigning in the West today; first, a speech to a carpenters' union conference in Nevada, then a fundraiser in California.

And Vice President Dick Cheney also on the trail today. Cheney speaks four hours from now in Dayton, Ohio. He plans to criticize John Kerry for saying he'd fight a war on terror that's sensitive.

So, yet another visit to Ohio for Dick Cheney. Both Republicans and Democrats have visited Ohio so many times, it's becoming a joke.

Live from Dayton, Mary McCarty from the "Dayton Daily News."

Welcome, Mary.

MARY MCCARTY, COLUMNIST, "DAYTON DAILY NEWS": Thank you.

Good morning.

COSTELLO: Did you really run into Dick Cheney in an Ohio Krispy Kreme donut shop?

MCCARTY: Well, I was taking a little literary license there.

COSTELLO: I know. I read your editorial and I found it really funny.

MCCARTY: Well, thank you.

COSTELLO: It was funny.

Is the flattery factor of so many visits really starting to get annoying now?

MCCARTY: No, not really. We're still flattered. We're thrilled to death in Ohio to be getting all the attention. And it's fun to take your kids out and see the president and the senator and vice president. But it has become somewhat of a joke because, you know, every time we turn around, you know, there's the president, there's the senator. This morning I can't go to my parking lot because Dick Cheney is speaking at the Dayton Convention Center.

COSTELLO: Oh, you mean your parking spot has been taken? Now, that would make me angry.

We're looking at a graphic here. Eleven visits by John Kerry, six visits by President Bush. And you can bet they're going to visit more in the future. I know both candidates try to get down with the common folk. And in Ohio, that usually means flipping pancakes and talking without the Gs, you know, talking as in T-A-L-K-I-N, without the G.

MCCARTY: Yes, or fishing.

COSTELLO: Right.

Is there a point when it all becomes rather cloying?

MCCARTY: Well, I don't think we've reached that point. I enjoy seeing democracy in action and I think Ohioans do. We're a very important state and we like that fact. No Republican has ever won the White House without taking Ohio and only two Democrats have so, you know...

COSTELLO: But, you know, I have always wondered about, you know, candidates going to a state and kissing babies and flipping pancakes and taking a big bite from an ear of corn, and if that stuff really works and resonates with the people of Ohio or Iowa or Nebraska or wherever they do it.

MCCARTY: Oh, I don't think it resonates any more here than it does anywhere else. And I think, you know, sometimes I'm hungry to hear some more substantial things than what you hear in a rally. But it's still exciting and not cloying yet.

COSTELLO: Not yet.

You mentioned an article in the "New York Times." You mentioned it in your editorial that read, "Dayton, enjoy the Hollywood luster while you can." And you found that irritating.

MCCARTY: Yes.

COSTELLO: Why?

MCCARTY: Oh, because we get tired of East and West Coast cities looking down their noses at us and, you know, considering everything in between a flyover state. So, you know, and there's a lot to do in Dayton and Dayton's a great place. COSTELLO: It certainly is.

MCCARTY: So, you know, we find that annoying.

COSTELLO: Yes. After all, the Wright brothers did develop their airplane there.

MCCARTY: Absolutely.

COSTELLO: Exactly.

Mary McCarty from the "Dayton Daily News" joining us live on DAYBREAK this morning.

Thank you.

The headlines coming your way in two minutes.

But first, your DAYBREAK Daytimers -- stories you'll see later today on CNN.

(COMMERCIAL BREAK)

COSTELLO: The Sunshine State bracing for two storms as residents wait to see what Bonnie and Charley will do.

It is Thursday, August 12.

This is DAYBREAK.

And good morning to you.

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

Now in the news, in the Iraqi city of Najaf, the offensive is on. Thousands of American troops, backed by tanks and helicopter gunships, are attacking militiamen loyal to a radical cleric. Heavy fighting now reported in the city.

Insurgents believed to be Medhi Army militiamen are battling those Iraqi security forces today in al-Kut, as well. That's 100 miles southeast of Baghdad. The insurgents attacked city hall, police stations and national guard barracks.

A bear of a wildfire outside of Redding, California. The thousand acre Bear Fire has destroyed 40 structures and injured five people so far. It's believed sparks from a lawnmower started this fire.

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