Return to Transcripts main page

CNN Live At Daybreak

Election Euphoria; Clashes in Kuwait; Post-Election Iraq

Aired January 31, 2005 - 06:29   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: Good morning. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

A plea for unity from Iraq's interim leader this morning. A day after his country's national election, Ayad Allawi is calling on his people to set aside their differences. More on the Iraqi election straight ahead.

Taking it to the streets, tens of thousands of Jewish settlers demonstrated in Jerusalem. They say Israeli Prime Minister Ariel Sharon has no right to dismantle settlements in Gaza or the West Bank without holding a referendum.

A new identification program begins today for truckers. The government wants to do background checks and get fingerprints from truckers who haul hazardous materials, but it would take up to five years to process all 2.7 million truckers.

The nation officially gets a new education secretary this morning. In just over four hours, President Bush will swear in Margaret Spellings. She's replacing retiring education chief Rod Paige.

(WEATHER REPORT)

COSTELLO: The votes in Iraq are being counted right now, and many world leaders are praising people there for turning out in large numbers at the polls. But perhaps no one is as happy for Iraq as Iraqis themselves.

To realize that, all you had to do was look.

(BEGIN VIDEOTAPE)

COSTELLO (voice over): Dancing for democracy, Iraqis celebrate what most hail as a huge election success even before they found out if their candidates won. And the wait for official results could be more than a week, according to election authorities.

Each ballot has to be counted and tallied. These votes did not come easy, and many Iraqis never thought they would live to see this day.

UNIDENTIFIED MALE (through translator): We are feeling happy today to be able to participate in a day like this after all these years.

COSTELLO: And they waited patiently for hours to cast their ballot, men in one line, women in another.

UNIDENTIFIED MALE (through translator): As you can see, despite my injury, I have come to the polling station, because it is my national and religious duty.

COSTELLO: Iraqis around the world also queued up to have their voices heard. These voters are in neighboring Syria. And half a world away in California, an impromptu voters' victory dance says it all.

President Bush, though, says there is still a long way to go on the march toward democracy.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There is more distance to travel on the road to democracy. Yet, Iraqis are proving they're equal to the challenge.

COSTELLO: Iraqis did die for this vote. Officials say insurgents killed more than two dozen people in several Election Day attacks. And most Sunnis did not take part in this election. But the weapon most Iraqis chose in fighting for their future was the ballot, hoping a better future is at their fingertips.

(END VIDEOTAPE)

COSTELLO: In other news this morning, where is that $9 billion? The U.S. administration that ran Iraq after the war cannot account for the money. That's according to an audit by a special U.S. inspector general.

The money was given to Iraqi ministries to pay for salaries, operating expenditures and reconstruction projects between October of 2003 and June of 2004. It came from oil-for-food revenues, oil sales and seized assets, all Iraqi money. Auditors say they can't verify the funds were properly spent.

Paul Bremer, the former U.S. administrator in Iraq, disputes the findings.

The inspector's report also found there has been a sharp increase in the number of U.S. civilian workers killed in Iraq. According to the report, at least 232 employees of private contractors have been killed while working on U.S.-funded reconstruction contracts. It cited Labor Department figures showing U.S. contractor deaths rose 93 percent during the fourth quarter of 2004.

British officials are still trying to find out what caused a deadly military plane crash in Iraq. A British transport plane went down north of Baghdad. Foreign Secretary Jack Straw says the crash caused the single-biggest loss of British lives in Iraq since the war started. He didn't say how many troops died, but a British news agency says the toll could be as high as 15. And the United Nations has been watching election results closely, and the top American diplomat there will speak to CNN's Soledad O'Brien this morning. She joins us live now from the "AMERICAN MORNING" offices.

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you. Yes, the polls are closed, as you well know. The ballot counting has now begun. How long before the results, though? That's our question this morning.

Also, of course, what's next for Iraq? This morning, we talk to U.S. Ambassador to Iraq, John Negroponte. Also, some lawmakers are calling for U.S. troops to start withdrawing from Iraq. Is that premature? We'll ask him about that as well.

That and much, much more ahead on "AMERICAN MORNING" at the top of the hour -- Carol.

COSTELLO: Thank you, Soledad.

Turning overseas now. There has been a second straight day of clashes in Kuwait between security forces and Islamic militants.

For the latest, we're joined by Miriam Amie, a journalist in Kuwait City.

Good morning, Miriam.

MIRIAM AMIE, JOURNALIST: Hello. Good morning, Carol. How are you doing?

Today, five people were killed and several were wounded in a shootout some 20 kilometers south of Kuwait City. The clash is the fourth one this month between Kuwaiti security forces and Islamic militants.

Among the dead, among the five dead, four were terrorists and one civilian man, a Kuwaiti who was caught up accidentally in the gunfire.

Those wounded were five policemen. One of them was seriously wounded.

Six militants were arrested. Three of those militants were also wounded. Kuwait News Agency, the state-run wire service, is telling us that the leader of the cell, the leader of the militant cell was one of those arrested.

During the morning, people woke me up, residents of Mubarak Kabeer is where the shootout took place. They found me at 7:00 in the morning, saying, reporting they heard tremendous gunfire and explosions were going off. And these are Americans living in the Mubarak Kabeer area.

COSTELLO: Miriam, who are these terrorists, do we know? AMIE: Well, yes. The Kuwaiti security forces have been on the lookout and have been trying to round up one particular cell of terrorists who has been causing trouble in Kuwait over this past month. Today's military action, today's skirmish was the fourth one this month.

Yesterday, we had a clash between militants and Islamists in one of the commercial suburbs in Samiya (ph), another shopping district in Kuwait City.

They are terrorists who profess a sympathy towards Osama bin Laden's al Qaeda terrorist network. And this is what security forces are telling us.

COSTELLO: Miriam Amie reporting live from Kuwait City this morning. Thank you.

I want to get the inside scoop on the election in Iraq live from Baghdad. Christopher Allbritton is a freelance reporter who does it the old-fashioned way. We'll hear from Christopher in five minutes.

And what's in a name? You'll find out if you stay with us for about 20 minutes.

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

(COMMERCIAL BREAK)

COSTELLO: Up next in Iraq, completing the vote tally, of course, naming a new president and prime minister, and then the hard part. The newly-elected National Assembly will begin drafting a new constitution.

Christopher Allbritton is a freelance journalist covering Iraq for "TIME" magazine. He joins us live now from Baghdad.

Good morning.

CHRISTOPHER ALLBRITTON, "TIME" MAGAZINE: Hi. How are you doing?

COSTELLO: Good, Christopher. Can you tell us the mood there today?

ALLBRITTON: The mood here today, the place is still pretty much under lockdown. So, there's a little bit more driving. There's a little bit more movement. People are going to be getting out on the streets a little bit more. But it's still pretty tight. People are still feeling restrictions on what they can do and how they can move around.

COSTELLO: Where were you during the elections?

ALLBRITTON: I was out and about. We were in our neighborhood, and we went to several polling areas. And we talked to voters and, you know, talked to people working at the polls. And everyone seemed pretty excited and pretty happy. It was the happiest I've seen Iraqis in months.

COSTELLO: Were even Iraqis themselves surprised at how many turned out to vote?

ALLBRITTON: I think they were. I can't -- I mean, you know, no one really knew what the vote turnout was, because you couldn't really go to different parts of the city and the phone lines were very bad and no one could really talk to one another. So, there wasn't any kind of election infrastructure like we have in the United States.

So, when people got home and they saw how much -- you know, how many people had gone out to vote and how smoothly it went, I think people were very surprised.

COSTELLO: You know, there's a sentiment out there that the Arab countries don't really want democracy. But, you know, there's an editorial in "The Wall Street Journal" this morning, for example, that says, so much for the argument that Arabs don't want democracy. Does it seem to you that they're embracing this?

ALLBRITTON: I'm sorry? That they're embracing it?

COSTELLO: That they're embracing democracy and understand what all it entails.

ALLBRITTON: It's too soon to tell. It's really too soon to tell. I mean, (UNINTELLIGIBLE) about the idea that Arabs don't want democracy. What they don't want are totalitarian governments supported by the United States. They want to be able to choose their own governments. And whether they're Islamic republics or otherwise, they want to be able to do that, and they (UNINTELLIGIBLE) on anyone to have more choice in how they run their own affairs.

COSTELLO: A lot of people are wondering what happens now with the violence factor. You said the cities across Iraq remain pretty much in lockdown right now. But when life returns to normal, what are people expecting?

ALLBRITTON: Again, it's an unknown. No one really knows what's going to happen next. The violence will continue without a doubt. But will it continue at the same level? Will the new government, when it is formed, have the ability to contain it? At the moment, no one really knows.

What is known is that it will continue. The United States troops will still be here. Those factors will remains constant for a long time to come in Iraq.

COSTELLO: Christopher Allbritton, a freelance journalist for "TIME" magazine. Thanks for joining DAYBREAK this morning.

More on the Iraqi elections all morning on CNN. Let's check in with Bill Hemmer for a look at what's coming up on "AMERICAN MORNING."

Good morning. BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning. What a weekend, huh, watching that from half a world away? Truly remarkable stuff.

Voter turnout was higher than expected. We do know that. But we don't have hard numbers right now.

We're going to talk to a couple of gentlemen from Baghdad today, Carol, who have seen an awful lot in their time there, John Burns (ph) from "The New York Times" and Anthony Shadee (ph) from "The Washington Post." They both have front-page articles today on their newspapers back here. They have been there for months, if not years. And they have run the gamut in terms of what stories they've covered, the progress, the lack of progress, all about that country.

We'll get their reflections on what they saw on Sunday, and also what they believe now is the biggest challenge going forward. So, we'll talk to both coming up here on "AMERICAN MORNING" -- Carol.

COSTELLO: We'll be here. Thank you, Bill.

HEMMER: All right.

COSTELLO: Your news, money, weather and sports. It is 6:46 Eastern. Here's what's all new this morning.

It's going to be a media circus in Santa Maria, California, today. Jury selection begins in the Michael Jackson trial. Hoards of supporters and media will be at the courthouse. Jackson is expected to appear as well.

In money news, the California quarters makes its debut today. The 25-cent piece depicts conservationist John Muir (ph). It's part of the U.S. Mint's 50-state quarters program. If you're collecting, this is No. 31.

In culture, Clint Eastwood is picked as best filmmaker of the year by his peers. The actor/director won the Director's Guild of America honor for the boxing saga, "Million Dollar Baby."

Astros' pitcher Roger Clemens has picked up his record seventh Cy Young award. He'll try for No. 8 this year after signing an $18 million deal with Houston. Clemens is one of only three players to win the award in both the American and National Leagues.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Sixteen billion dollars, is that enough to make America's largest communications company a world leader? Your "Business Buzz" is coming up next.

(COMMERCIAL BREAK)

COSTELLO: The international markets are rallying. Japan's Nikkei closed up 67 points. Britain's FTSE trading up nearly 31 and a half points. The German DAX is up more than 45 and a half.

It's time now for a little "Business Buzz." Mega mergers are continuing on Wall Street. This time, a former Baby Bell is buying its parent.

Carrie Lee joins us live from the Nasdaq Marketsite with more.

Good morning.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol.

SBC Communications is buying AT&T for about $16 billion, mostly in stock. The combined company will become the nation's largest communications company. No real surprise here. This deal was rumored late last week.

What this merger is going to do, though, is effectively end AT&T's 130-year history as an independent company, which began with the invention of the telephone. It's kind of coming full circle here. AT&T has been shrinking since the government split its monopoly in 1984, split it into seven local Bells. One of those Bells evolved into SBC.

And now, SBC is buying that old monopoly company. But they do plan to retain, however, the AT&T name. And the new company is going to be based in San Antonio, which is where SBC is headquartered.

So, we'll see what these stocks do today. But just the latest big merger deal, Carol, we've seen in the past two months.

COSTELLO: A quick look at the futures.

LEE: Things are looking pretty strong this morning, especially so for technology issues. It looks like the Iraqi elections went pretty smoothly yesterday, so that's probably giving things a boost here. OPEC decided to leave output quotas unchanged.

One stock to watch tonight after the close: Disney in the Dow reporting profits. Wall Street is looking for 29 cents a share versus 33 cents a year ago. So, a little bit of a decline -- Carol.

COSTELLO: Carrie Lee live from the Nasdaq Marketsite. Thank you.

Here are some stories we'll be keeping an eye on this week. Today, Republicans are in for some criticism on the bookshelves. "It's My Party, Too," a new book by former Bush cabinet member Christine Todd Whitman comes out. Whitman says the GOP is becoming too right-wing.

On Tuesday, it's the annual Empire State Building run-up. Hundreds of people will race up the steps of the New York landmark. And by the way, that's more than 1,500 steps.

On Wednesday, you'll get a state of the winter and the State of the Union. President Bush gives his annual State of the Union speech. It's also Groundhog Day.

On Thursday, it's more than just an awards show. The MTV Asia Awards in Bangkok, Thailand, will turn into a global benefit to raise money for tsunami relief.

And on Friday, you can get a taste of the hippest duds. Fashion Week kicks off in New York City with top designers showcasing their wares.

Super Bowl week is finally here. And let the hype begin. The Patriots arrived in Jacksonville for their third straight Super Bowl week in the past four seasons. Quarterback Tom Brady was the MVP the last two times they played.

The Eagles also came into town for what will be a new experience for many of their players. But Coach Andy Reid has been here before. He was an assistant with the Packers in two Super Bowls, one of which has a win over the Patriots.

Chad, are you there?

CHAD MYERS, CNN METEOROLOGIST: Yes. I'm looking at -- they don't even get a jet way. They've got to go down the stairs. What if they -- what if somebody falls down and breaks an ankle?

COSTELLO: Oh, man!

MYERS: That could cost them the Super Bowl!

COSTELLO: Talk about a pessimist.

MYERS: Come on! There's a pickup truck hooking up the plane. Holy cow!

COSTELLO: I was reading about -- is it Frankie Mitchell (ph) from the Philadelphia Eagles who seems to be quite the character?

MYERS: Yes.

COSTELLO: He's a receiver. And they were talking about, like, all of his interests. He's into country music, and he wears a big fur jacket. And he's quite the Hollywood type.

MYERS: Did you know that T.O. is going to play?

COSTELLO: No, we don't know yet. I think that they're -- I think that the Philadelphia Eagles are keeping the Patriots guessing for good reason.

MYERS: Yes, sure. He was dancing on the sidelines last week. So, maybe he will.

COSTELLO: That's different from being in the game, though. This is DAYBREAK for a Monday morning.

(COMMERCIAL BREAK) COSTELLO: Chad, it's time to take a look at the morning headlines.

MYERS: What have you found?

COSTELLO: Well, I found a story pertaining to beer, your favorite (UNINTELLIGIBLE).

MYERS: OK.

COSTELLO: Budweiser is making a new beer. And guess what it's adding to its product?

MYERS: Chocolate.

COSTELLO: No. Chocolate beer!

MYERS: Yes, well...

COSTELLO: That could be bad.

MYERS: They're out there.

COSTELLO: Are they really?

MYERS: Oh, yes.

COSTELLO: Chocolate beer?

MYERS: Oh, sure.

COSTELLO: Oh, that's disgusting. Anyway, this beer is called BE, and the E stands for extra, and the extra is 54 milligrams of caffeine.

MYERS: Oh.

COSTELLO: That's about half the dose found in the average cup of coffee. BE also contains ginseng, the fabled herb, and guarana (ph), an Amazonian berry frequently found in Brazilian soft drinks.

MYERS: And alcohol?

COSTELLO: And alcohol. So, you know, alcohol is a depressant. Caffeine is a stimulant.

MYERS: Yes.

COSTELLO: So your body will be all confused.

MYERS: And that guarana (ph) stuff, that's one of those pills you get from the health food store.

COSTELLO: It does something for you. We just don't know.

MYERS: It wakes you up. I don't know about that one. COSTELLO: Be on the lookout for BE, Budweiser.

MYERS: I'm a little bit concerned, because then if you have a couple of beers, and then you think, you know, you would know that you shouldn't drive, if you're all wired you don't know that you shouldn't drive.

COSTELLO: It's sort of like Red Bull in beer form, isn't it?

MYERS: I guess. Maybe it's Red Bull (UNINTELLIGIBLE).

COSTELLO: All right. We have time for one more story to tell you. So, let's get to it.

An Iraqi woman in Baghdad has named her newborn daughter Intik Habat (ph). That's the Arabic word for election. She gave birth on Sunday and wanted to mark the historic occasion of both the birth and the event, which is a very nice story indeed.

MYERS: Yes.

COSTELLO: Much more on the Iraqi elections on "AMERICAN MORNING."

From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

MYERS: See you tomorrow, Carol.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.


Aired January 31, 2005 - 06:29   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

A plea for unity from Iraq's interim leader this morning. A day after his country's national election, Ayad Allawi is calling on his people to set aside their differences. More on the Iraqi election straight ahead.

Taking it to the streets, tens of thousands of Jewish settlers demonstrated in Jerusalem. They say Israeli Prime Minister Ariel Sharon has no right to dismantle settlements in Gaza or the West Bank without holding a referendum.

A new identification program begins today for truckers. The government wants to do background checks and get fingerprints from truckers who haul hazardous materials, but it would take up to five years to process all 2.7 million truckers.

The nation officially gets a new education secretary this morning. In just over four hours, President Bush will swear in Margaret Spellings. She's replacing retiring education chief Rod Paige.

(WEATHER REPORT)

COSTELLO: The votes in Iraq are being counted right now, and many world leaders are praising people there for turning out in large numbers at the polls. But perhaps no one is as happy for Iraq as Iraqis themselves.

To realize that, all you had to do was look.

(BEGIN VIDEOTAPE)

COSTELLO (voice over): Dancing for democracy, Iraqis celebrate what most hail as a huge election success even before they found out if their candidates won. And the wait for official results could be more than a week, according to election authorities.

Each ballot has to be counted and tallied. These votes did not come easy, and many Iraqis never thought they would live to see this day.

UNIDENTIFIED MALE (through translator): We are feeling happy today to be able to participate in a day like this after all these years.

COSTELLO: And they waited patiently for hours to cast their ballot, men in one line, women in another.

UNIDENTIFIED MALE (through translator): As you can see, despite my injury, I have come to the polling station, because it is my national and religious duty.

COSTELLO: Iraqis around the world also queued up to have their voices heard. These voters are in neighboring Syria. And half a world away in California, an impromptu voters' victory dance says it all.

President Bush, though, says there is still a long way to go on the march toward democracy.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There is more distance to travel on the road to democracy. Yet, Iraqis are proving they're equal to the challenge.

COSTELLO: Iraqis did die for this vote. Officials say insurgents killed more than two dozen people in several Election Day attacks. And most Sunnis did not take part in this election. But the weapon most Iraqis chose in fighting for their future was the ballot, hoping a better future is at their fingertips.

(END VIDEOTAPE)

COSTELLO: In other news this morning, where is that $9 billion? The U.S. administration that ran Iraq after the war cannot account for the money. That's according to an audit by a special U.S. inspector general.

The money was given to Iraqi ministries to pay for salaries, operating expenditures and reconstruction projects between October of 2003 and June of 2004. It came from oil-for-food revenues, oil sales and seized assets, all Iraqi money. Auditors say they can't verify the funds were properly spent.

Paul Bremer, the former U.S. administrator in Iraq, disputes the findings.

The inspector's report also found there has been a sharp increase in the number of U.S. civilian workers killed in Iraq. According to the report, at least 232 employees of private contractors have been killed while working on U.S.-funded reconstruction contracts. It cited Labor Department figures showing U.S. contractor deaths rose 93 percent during the fourth quarter of 2004.

British officials are still trying to find out what caused a deadly military plane crash in Iraq. A British transport plane went down north of Baghdad. Foreign Secretary Jack Straw says the crash caused the single-biggest loss of British lives in Iraq since the war started. He didn't say how many troops died, but a British news agency says the toll could be as high as 15. And the United Nations has been watching election results closely, and the top American diplomat there will speak to CNN's Soledad O'Brien this morning. She joins us live now from the "AMERICAN MORNING" offices.

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you. Yes, the polls are closed, as you well know. The ballot counting has now begun. How long before the results, though? That's our question this morning.

Also, of course, what's next for Iraq? This morning, we talk to U.S. Ambassador to Iraq, John Negroponte. Also, some lawmakers are calling for U.S. troops to start withdrawing from Iraq. Is that premature? We'll ask him about that as well.

That and much, much more ahead on "AMERICAN MORNING" at the top of the hour -- Carol.

COSTELLO: Thank you, Soledad.

Turning overseas now. There has been a second straight day of clashes in Kuwait between security forces and Islamic militants.

For the latest, we're joined by Miriam Amie, a journalist in Kuwait City.

Good morning, Miriam.

MIRIAM AMIE, JOURNALIST: Hello. Good morning, Carol. How are you doing?

Today, five people were killed and several were wounded in a shootout some 20 kilometers south of Kuwait City. The clash is the fourth one this month between Kuwaiti security forces and Islamic militants.

Among the dead, among the five dead, four were terrorists and one civilian man, a Kuwaiti who was caught up accidentally in the gunfire.

Those wounded were five policemen. One of them was seriously wounded.

Six militants were arrested. Three of those militants were also wounded. Kuwait News Agency, the state-run wire service, is telling us that the leader of the cell, the leader of the militant cell was one of those arrested.

During the morning, people woke me up, residents of Mubarak Kabeer is where the shootout took place. They found me at 7:00 in the morning, saying, reporting they heard tremendous gunfire and explosions were going off. And these are Americans living in the Mubarak Kabeer area.

COSTELLO: Miriam, who are these terrorists, do we know? AMIE: Well, yes. The Kuwaiti security forces have been on the lookout and have been trying to round up one particular cell of terrorists who has been causing trouble in Kuwait over this past month. Today's military action, today's skirmish was the fourth one this month.

Yesterday, we had a clash between militants and Islamists in one of the commercial suburbs in Samiya (ph), another shopping district in Kuwait City.

They are terrorists who profess a sympathy towards Osama bin Laden's al Qaeda terrorist network. And this is what security forces are telling us.

COSTELLO: Miriam Amie reporting live from Kuwait City this morning. Thank you.

I want to get the inside scoop on the election in Iraq live from Baghdad. Christopher Allbritton is a freelance reporter who does it the old-fashioned way. We'll hear from Christopher in five minutes.

And what's in a name? You'll find out if you stay with us for about 20 minutes.

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

(COMMERCIAL BREAK)

COSTELLO: Up next in Iraq, completing the vote tally, of course, naming a new president and prime minister, and then the hard part. The newly-elected National Assembly will begin drafting a new constitution.

Christopher Allbritton is a freelance journalist covering Iraq for "TIME" magazine. He joins us live now from Baghdad.

Good morning.

CHRISTOPHER ALLBRITTON, "TIME" MAGAZINE: Hi. How are you doing?

COSTELLO: Good, Christopher. Can you tell us the mood there today?

ALLBRITTON: The mood here today, the place is still pretty much under lockdown. So, there's a little bit more driving. There's a little bit more movement. People are going to be getting out on the streets a little bit more. But it's still pretty tight. People are still feeling restrictions on what they can do and how they can move around.

COSTELLO: Where were you during the elections?

ALLBRITTON: I was out and about. We were in our neighborhood, and we went to several polling areas. And we talked to voters and, you know, talked to people working at the polls. And everyone seemed pretty excited and pretty happy. It was the happiest I've seen Iraqis in months.

COSTELLO: Were even Iraqis themselves surprised at how many turned out to vote?

ALLBRITTON: I think they were. I can't -- I mean, you know, no one really knew what the vote turnout was, because you couldn't really go to different parts of the city and the phone lines were very bad and no one could really talk to one another. So, there wasn't any kind of election infrastructure like we have in the United States.

So, when people got home and they saw how much -- you know, how many people had gone out to vote and how smoothly it went, I think people were very surprised.

COSTELLO: You know, there's a sentiment out there that the Arab countries don't really want democracy. But, you know, there's an editorial in "The Wall Street Journal" this morning, for example, that says, so much for the argument that Arabs don't want democracy. Does it seem to you that they're embracing this?

ALLBRITTON: I'm sorry? That they're embracing it?

COSTELLO: That they're embracing democracy and understand what all it entails.

ALLBRITTON: It's too soon to tell. It's really too soon to tell. I mean, (UNINTELLIGIBLE) about the idea that Arabs don't want democracy. What they don't want are totalitarian governments supported by the United States. They want to be able to choose their own governments. And whether they're Islamic republics or otherwise, they want to be able to do that, and they (UNINTELLIGIBLE) on anyone to have more choice in how they run their own affairs.

COSTELLO: A lot of people are wondering what happens now with the violence factor. You said the cities across Iraq remain pretty much in lockdown right now. But when life returns to normal, what are people expecting?

ALLBRITTON: Again, it's an unknown. No one really knows what's going to happen next. The violence will continue without a doubt. But will it continue at the same level? Will the new government, when it is formed, have the ability to contain it? At the moment, no one really knows.

What is known is that it will continue. The United States troops will still be here. Those factors will remains constant for a long time to come in Iraq.

COSTELLO: Christopher Allbritton, a freelance journalist for "TIME" magazine. Thanks for joining DAYBREAK this morning.

More on the Iraqi elections all morning on CNN. Let's check in with Bill Hemmer for a look at what's coming up on "AMERICAN MORNING."

Good morning. BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning. What a weekend, huh, watching that from half a world away? Truly remarkable stuff.

Voter turnout was higher than expected. We do know that. But we don't have hard numbers right now.

We're going to talk to a couple of gentlemen from Baghdad today, Carol, who have seen an awful lot in their time there, John Burns (ph) from "The New York Times" and Anthony Shadee (ph) from "The Washington Post." They both have front-page articles today on their newspapers back here. They have been there for months, if not years. And they have run the gamut in terms of what stories they've covered, the progress, the lack of progress, all about that country.

We'll get their reflections on what they saw on Sunday, and also what they believe now is the biggest challenge going forward. So, we'll talk to both coming up here on "AMERICAN MORNING" -- Carol.

COSTELLO: We'll be here. Thank you, Bill.

HEMMER: All right.

COSTELLO: Your news, money, weather and sports. It is 6:46 Eastern. Here's what's all new this morning.

It's going to be a media circus in Santa Maria, California, today. Jury selection begins in the Michael Jackson trial. Hoards of supporters and media will be at the courthouse. Jackson is expected to appear as well.

In money news, the California quarters makes its debut today. The 25-cent piece depicts conservationist John Muir (ph). It's part of the U.S. Mint's 50-state quarters program. If you're collecting, this is No. 31.

In culture, Clint Eastwood is picked as best filmmaker of the year by his peers. The actor/director won the Director's Guild of America honor for the boxing saga, "Million Dollar Baby."

Astros' pitcher Roger Clemens has picked up his record seventh Cy Young award. He'll try for No. 8 this year after signing an $18 million deal with Houston. Clemens is one of only three players to win the award in both the American and National Leagues.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Sixteen billion dollars, is that enough to make America's largest communications company a world leader? Your "Business Buzz" is coming up next.

(COMMERCIAL BREAK)

COSTELLO: The international markets are rallying. Japan's Nikkei closed up 67 points. Britain's FTSE trading up nearly 31 and a half points. The German DAX is up more than 45 and a half.

It's time now for a little "Business Buzz." Mega mergers are continuing on Wall Street. This time, a former Baby Bell is buying its parent.

Carrie Lee joins us live from the Nasdaq Marketsite with more.

Good morning.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol.

SBC Communications is buying AT&T for about $16 billion, mostly in stock. The combined company will become the nation's largest communications company. No real surprise here. This deal was rumored late last week.

What this merger is going to do, though, is effectively end AT&T's 130-year history as an independent company, which began with the invention of the telephone. It's kind of coming full circle here. AT&T has been shrinking since the government split its monopoly in 1984, split it into seven local Bells. One of those Bells evolved into SBC.

And now, SBC is buying that old monopoly company. But they do plan to retain, however, the AT&T name. And the new company is going to be based in San Antonio, which is where SBC is headquartered.

So, we'll see what these stocks do today. But just the latest big merger deal, Carol, we've seen in the past two months.

COSTELLO: A quick look at the futures.

LEE: Things are looking pretty strong this morning, especially so for technology issues. It looks like the Iraqi elections went pretty smoothly yesterday, so that's probably giving things a boost here. OPEC decided to leave output quotas unchanged.

One stock to watch tonight after the close: Disney in the Dow reporting profits. Wall Street is looking for 29 cents a share versus 33 cents a year ago. So, a little bit of a decline -- Carol.

COSTELLO: Carrie Lee live from the Nasdaq Marketsite. Thank you.

Here are some stories we'll be keeping an eye on this week. Today, Republicans are in for some criticism on the bookshelves. "It's My Party, Too," a new book by former Bush cabinet member Christine Todd Whitman comes out. Whitman says the GOP is becoming too right-wing.

On Tuesday, it's the annual Empire State Building run-up. Hundreds of people will race up the steps of the New York landmark. And by the way, that's more than 1,500 steps.

On Wednesday, you'll get a state of the winter and the State of the Union. President Bush gives his annual State of the Union speech. It's also Groundhog Day.

On Thursday, it's more than just an awards show. The MTV Asia Awards in Bangkok, Thailand, will turn into a global benefit to raise money for tsunami relief.

And on Friday, you can get a taste of the hippest duds. Fashion Week kicks off in New York City with top designers showcasing their wares.

Super Bowl week is finally here. And let the hype begin. The Patriots arrived in Jacksonville for their third straight Super Bowl week in the past four seasons. Quarterback Tom Brady was the MVP the last two times they played.

The Eagles also came into town for what will be a new experience for many of their players. But Coach Andy Reid has been here before. He was an assistant with the Packers in two Super Bowls, one of which has a win over the Patriots.

Chad, are you there?

CHAD MYERS, CNN METEOROLOGIST: Yes. I'm looking at -- they don't even get a jet way. They've got to go down the stairs. What if they -- what if somebody falls down and breaks an ankle?

COSTELLO: Oh, man!

MYERS: That could cost them the Super Bowl!

COSTELLO: Talk about a pessimist.

MYERS: Come on! There's a pickup truck hooking up the plane. Holy cow!

COSTELLO: I was reading about -- is it Frankie Mitchell (ph) from the Philadelphia Eagles who seems to be quite the character?

MYERS: Yes.

COSTELLO: He's a receiver. And they were talking about, like, all of his interests. He's into country music, and he wears a big fur jacket. And he's quite the Hollywood type.

MYERS: Did you know that T.O. is going to play?

COSTELLO: No, we don't know yet. I think that they're -- I think that the Philadelphia Eagles are keeping the Patriots guessing for good reason.

MYERS: Yes, sure. He was dancing on the sidelines last week. So, maybe he will.

COSTELLO: That's different from being in the game, though. This is DAYBREAK for a Monday morning.

(COMMERCIAL BREAK) COSTELLO: Chad, it's time to take a look at the morning headlines.

MYERS: What have you found?

COSTELLO: Well, I found a story pertaining to beer, your favorite (UNINTELLIGIBLE).

MYERS: OK.

COSTELLO: Budweiser is making a new beer. And guess what it's adding to its product?

MYERS: Chocolate.

COSTELLO: No. Chocolate beer!

MYERS: Yes, well...

COSTELLO: That could be bad.

MYERS: They're out there.

COSTELLO: Are they really?

MYERS: Oh, yes.

COSTELLO: Chocolate beer?

MYERS: Oh, sure.

COSTELLO: Oh, that's disgusting. Anyway, this beer is called BE, and the E stands for extra, and the extra is 54 milligrams of caffeine.

MYERS: Oh.

COSTELLO: That's about half the dose found in the average cup of coffee. BE also contains ginseng, the fabled herb, and guarana (ph), an Amazonian berry frequently found in Brazilian soft drinks.

MYERS: And alcohol?

COSTELLO: And alcohol. So, you know, alcohol is a depressant. Caffeine is a stimulant.

MYERS: Yes.

COSTELLO: So your body will be all confused.

MYERS: And that guarana (ph) stuff, that's one of those pills you get from the health food store.

COSTELLO: It does something for you. We just don't know.

MYERS: It wakes you up. I don't know about that one. COSTELLO: Be on the lookout for BE, Budweiser.

MYERS: I'm a little bit concerned, because then if you have a couple of beers, and then you think, you know, you would know that you shouldn't drive, if you're all wired you don't know that you shouldn't drive.

COSTELLO: It's sort of like Red Bull in beer form, isn't it?

MYERS: I guess. Maybe it's Red Bull (UNINTELLIGIBLE).

COSTELLO: All right. We have time for one more story to tell you. So, let's get to it.

An Iraqi woman in Baghdad has named her newborn daughter Intik Habat (ph). That's the Arabic word for election. She gave birth on Sunday and wanted to mark the historic occasion of both the birth and the event, which is a very nice story indeed.

MYERS: Yes.

COSTELLO: Much more on the Iraqi elections on "AMERICAN MORNING."

From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

MYERS: See you tomorrow, Carol.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.