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CNN Live At Daybreak
Secretary Rumsfeld, Joint Chiefs Chairman Myers Appear Before Senate Armed Services This Morning, House Armed Services This Afternoon
Aired February 17, 2005 - 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.
KELLY WALLACE, CNN CORRESPONDENT: Special delivery from a serial killer. Does the latest communication bring police any closer to finding BTK?
Airbus looks for a new home in America, if the Pentagon clears it to land.
And rolling in dough, so says "Rolling Stone." We'll take a look at who's brining home a princely sum in the music biz with the magazine's editor.
It is Thursday, February 17, and you are watching DAYBREAK.
And good morning to you.
From the Time Warner Center in New York, I'm Kelly Wallace, in today for Carol Costello.
Now in the news, terrorists are targeting the United States again. Defense Secretary Donald Rumsfeld is expected to tell members of Congress today that terrorists are reorganizing and getting ready for another attack. He goes before the committee that's working on the defense budget.
Iraqi officials are getting ready to announce final certified election results in about two hours. Iraq is also closing its borders today for a Shiite religious festival. The borders are expected to open again Tuesday.
He has beaten a brain tumor, heart surgery and attempts to unseat him. Now, Senator Arlen Specter of Pennsylvania says he'll be Hodgkin's Disease, as well. Specter says he has the disease, which affects the lymph nodes.
Pop star Michael Jackson is out of the hospital. He left last night. Jackson was admitted Tuesday with a flu-like sickness. It brought jury selection to a halt in his child molestation trial.
Time to get a quick check of the forecast.
For that, we turn to Rob Marciano, who is in today for Chad Myers -- good morning, again, Rob.
ROB MARCIANO, CNN METEOROLOGIST: Hi, Kelly.
That Michael Jackson flu reminds me of when I was a kid. "Mommy, I don't feel good. I don't want to go to school today."
WALLACE: I want to stay home, exactly.
MARCIANO: I think that was a little bit of that.
WALLACE: Right.
MARCIANO: Good morning, again, Kelly.
(WEATHER REPORT)
WALLACE: And we begin this hour with what attacks on America may be in the works and who will be response for warning us.
In the next few hours, President Bush could name his choice for director of the national intelligence agency. The post was created by the National Intelligence Reform Act, signed into law last December 17. The director of national intelligence oversees 15 different intelligence agencies. He or she would report directly to the president.
At a Senate Intelligence Committee hearing yesterday, Democrat Jay Rockefeller criticized the delay in naming a director.
(BEGIN VIDEO CLIP)
SEN. JAY ROCKEFELLER (D-WV), VICE CHAIRMAN, INTELLIGENCE COMMITTEE: Two months have now passed since the bill signing ceremony and the position of director of national intelligence remains vacant, not even a person nominated. To me, this is unacceptable.
(END VIDEO CLIP)
WALLACE: But the Republican committee chairman, Senator Pat Roberts, said the decision on a director was "too important to be rushed."
CIA Director Porter Goss was also on Capitol Hill. He was one witness before that committee yesterday. And he warned that terrorists are still a major threat to the United States.
(BEGIN VIDEO CLIP)
PORTER GOSS, CIA DIRECTOR: Al Qaeda is intent on finding ways to circumvent U.S. security enhancements to strike Americans in the homeland, one.
Number two, it may be only a matter of time before al Qaeda or another group attempts to use chemical, biological, radiological or nuclear weapons. We must focus on that.
Three, al Qaeda is only one facet of the threat from a broader Sunni jihadist movement.
And, four, the Iraq conflict, while not a cause of extremism, has become a cause for extremists. (END VIDEO CLIP)
WALLACE: Director Goss also testified that North Korea's nuclear weapons arsenal has grown in the past three years since it was estimated that the North Koreans had one or two nuclear weapons. But the CIA chief gave no new figures.
Most Americans now consider North Korea to be one of this country's top enemies. Respondents to a Gallup poll ranked North Korea with Iraq as the top enemies, 22 percent choosing each country. Iran is ranked third, with 14 percent. Ten percent pick China.
Today's budget witnesses on Capitol Hill include Secretary of State Condoleezza Rice and Defense Secretary Donald Rumsfeld. Secretary Rice defends her department's budget before the Senate Appropriations Committee this morning and the House International Relations Committee this afternoon.
Secretary Rumsfeld and Joint Chiefs Chairman General Richard Myers appear before Senate Armed Services this morning and House Armed Services this afternoon.
For Secretary Rumsfeld, it will be a second day of testimony. Senate committee members quizzed the defense chief yesterday about the $419 billion Pentagon budget and about the $82 billion in emergency funding for the wars in Iraq and Afghanistan.
More on this now from CNN correspondent Kareen Wynter in Washington.
(BEGIN VIDEO TAPE)
KAREEN WYNTER, CNN CORRESPONDENT: This military budget proposal involves top dollars and committee members wanted more details on how this money would be used and whether it would help improve the conditions of U.S. forces already stretched thin overseas.
(voice-over): For the Pentagon chief, it was a tough sell convincing law makers on the Senate Armed Services Committee, President Bush's half a trillion dollar military request was critical to fighting terror abroad and at home.
RUMSFELD: Just because we have been fortunate in this country and not seen another attack since September 11, that does not mean that it's over.
WYNTER: Defense Secretary Donald Rumsfeld argued the budgetary reforms and initiatives would keep U.S. forces one step ahead of a resilient insurgency.
RUMSFELD: Our enemies, as you know, have brains. They watch what we do, they look for our vulnerabilities, they adapt their tactics frequently.
(END VIDEO TAPE)
WALLACE: And that was Kareen Hunter (ph) reporting.
Well, while the defense secretary was defending the budget, Federal Reserve Chairman Alan Greenspan was giving qualified endorsement of the president's plan to overhaul Social Security. Greenspan went before the Senate Banking Committee yesterday. He says he supports the idea of private Social Security accounts, but he urged Congress to proceed with caution.
(BEGIN VIDEO CLIP)
ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: My caution here is based on not knowing and not knowing how to know in advance how markets will respond. I do know that asking people in the marketplace is of no value at all because they do not know. They will tell you they know, but I haven't found that a very useful forecast.
(END VIDEO CLIP)
WALLACE: And Greenspan says he doesn't have a problem with the government borrowing money to make the transition to private accounts, but he says the amount shouldn't exceed a trillion dollars. Some experts say it could taken two trillion.
Across America now, investigators are on the scene of a deadly plane crash in Pueblo, Colorado. All eight people on board were killed when the corporate jet crashed about five miles away from the airport. The plane was owned by electronics retailer Circuit City. Freezing rain may have played a part in the crash.
A controversial student identification system has ended at one California school. Kids at an elementary school in Sutter, California wore radio frequency badges so they could be tracked throughout the school. Some parents thought it was an invasion of privacy. The company that provided the badges pulled out of the program due to concerns over vandalism and media attention.
Sarah Brady has given birth to a very lucky little girl. Last week, the mother to be was attacked by a knife wielding woman who police believe was trying to steal her baby. The attacker, Katherine Smith, was killed when Brady grabbed the knife and fought back. Police found baby toys and surgical tools in Smith's home. An autopsy also found that she wasn't pregnant.
A hospital in San Rafael, California won the right to evict one of its patients. Eighty-two-year old Sarah Nome is refusing to leave the hospital room she's called home for over a year. Both the hospital and Nome agree that there's nothing wrong with her. The hospital has offered to waive her $1 million medical bill if she leaves, but she says no, she is staying.
When DAYBREAK continues, federal judges -- the president's picks aren't necessarily popular. We'll tell you about a power struggle that doesn't get much press.
Spies of the skies -- could an unmanned drone hold the answers to spying on Iran or just cause more problems? And later, Kid's day in court. We're talking about Kid Rock.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
WALLACE: Still to come here on DAYBREAK, the Governator goes to Washington.
Hallmark says sorry to thousands of online valentines.
And former "Apprentice" Omarosa makes an accusation about the show that made her infamous.
We are back in 60 seconds.
(COMMERCIAL BREAK)
WALLACE: And welcome back.
Your news, money, weather and sports.
It's about 14 minutes after the hour and here's what's all new this morning.
Defense Secretary Donald Rumsfeld returns to Capitol Hill today for a second round of testimony on budget issues. He is warning that terrorists are preparing for a new attack against the United States and he's urging law makers to approve the president's $419 billion military and anti-terror budget.
A message for broadcasters -- clean it up or get ready to pay big. The House has approved legislation raising the fine for indecent programming to half a million dollars. Right now it is $32,500.
In money, Swedish retailer Idea is opening its first warehouse in the southeastern United States this summer. The store in Atlanta will be the company's third largest in the U.S.
In culture, Ashley Olsen is suing the "National Enquirer" for at least $40 million. Her libel suit against the tabloid claims she was inaccurately linked to a drug scandal.
In sports, more tests will be conducted today on Patriots' linebacker Teddy Bruschi. The 31-year-old was hospitalized with headaches, but the team says he is in good condition. Bruschi played in the Pro Bowl in Hawaii just four days ago.
Time now to check with Rob Marciano and weather.
And, of course, Rob, he also did a great job in the Super Bowl -- right?
MARCIANO: Oh, he did. He's a hard hitter and, you know, on a lighter note hopefully, maybe that headache is just a hangover continuing from the Super Bowl.
WALLACE: Right.
MARCIANO: We'll see what happens there.
(WEATHER REPORT)
WALLACE: Those are the headlines.
Coming up, we will tell you why J-Lo is a no go for a trip to Europe.
And a plus for passengers -- if you travel to Europe, you'll want to hear about some new rules that go into effect today.
This is DAYBREAK.
We'll be right back.
(COMMERCIAL BREAK)
CARRIE LEE, CNN CORRESPONDENT: Good morning, everyone.
I'm Carrie Lee at the Nasdaq market site.
French airplane maker Airbus may be coming to the United States. The company is looking for a site in the U.S. for a new factory. And this would help the company's standing as a U.S. military contractor. There are some sticking points, though. Airbus is angling for a $22 billion contract for 100 refueling tankers for the U.S. Air Force. And Boeing had won this contract but then lost it when it was discovered Boeing later hired a top Air Force official who admitted favoring Boeing during the procurement process.
Now, it's not quite a done deal, and that's because some U.S. lawmakers oppose giving such a large contract to a foreign company. So Airbus is not expected to build this factory without the contract.
That is the latest on that story.
Turning to stocks, futures are looking pretty flat for today's session. In fact, that's pretty much what we saw at the close yesterday. The markets are little changed following comments from Fed Chief Alan Greenspan. He did say the economy is in good shape. He did add that fiscal discipline is necessary.
And that is the latest business news.
DAYBREAK will be right back.
(COMMERCIAL BREAK)
WALLACE: And welcome back.
It could get ugly on Capitol Hill as President Bush tries to get his judicial nominees confirmed. This week, the president renominated 20 candidates for federal judgeships. Some of their confirmations were blocked by Senate Democrats during his first term, the judges branded as right-wing ideologues.
Let's go live now to CNN political analyst Ron Brownstein in Washington -- Ron, great to see you, as always.
Thanks for being here.
RON BROWNSTEIN, CNN POLITICAL ANALYST: Kelly, good morning.
WALLACE: OK, Ron, so this isn't the first president, the first Congress to battle over judicial nominees.
Why is this always such a fight?
BROWNSTEIN: Well, the reason the stakes are so high is because these are lifetime appointments. And, as such, they draw a lot more fire from the other side, the opposition party, than executive branch appointments, which, of course, expire with the presidency.
What -- you've got to identify what the real problem is here. The lower courts, the district federal courts, the president has made 179 nominations. A hundred and seventy have been approved. Both sides basically agree that's a reasonable rate.
Where the dispute is, is over these powerful district courts of appeals -- the circuit courts of appeals. Excuse me. President Clinton, in his second term, when Republicans held the Congress, made 51 nominations and 35 of them were approved. President Bush, over this last term, has made 52 nominations and, again, 35 of them were approved. A comparable rate, but one which has left both sides feeling that the opposition party is blocking too many of the president's choices.
WALLACE: And you -- what's different this time around? You have Senate Republicans in the majority talking of something so-called the nuclear option, changing rules.
What are we talking about and how likely is this that it will happen?
BROWNSTEIN: Basically, Democrats are using the filibuster to block the nominations they don't like. The filibuster, of course, is the longstanding Senate rule from the outset that you now need 60 votes if the minority party wants to block something. Senate Republicans are saying they are considering a rule change that would allow judges to be passed with 51 votes, breaking Senate history and tradition.
Now, the Democrats are saying if they go to that nuclear option, they will literally try to blow up the Senate procedurally. And, of course, Kelly, the risk for Republicans is that even if you can get some of these nominations through that way, the fallout might be so intense that it will endanger almost everything else on the president's agenda.
WALLACE: Ron, also, give us a reality check.
How much do presidents use the judiciary to try to seal their legacy and leave some influence beyond their terms?
BROWNSTEIN: You know, almost a third of the federal courts now were appointed by presidents before President Bush and President Clinton. So that gives you an idea of how long lasting these appointments can be. They are lifetime appointments. They really are a way for a president to put his stamp on public policy.
I think both parties have come to believe that control of the courts, not just the Supreme Court, but also the appellate courts and the district courts, can be as important as control of Congress in shaping the political direction of the country.
So it clearly is a very high stakes battle. But really, Kelly, I think what many people feel is that both sides need a way to establish some process of collaboration and compromise. This sort of endless stalemate over judges really does no one any good.
WALLACE: All right, Ron Brownstein, we know you will be watching. We'll be watching, as well.
Good to see you.
BROWNSTEIN: Thank you.
WALLACE: CNN senior political analyst Ron Brownstein.
Thanks for being here.
Coming up next on DAYBREAK, some biting words exchanged when Secretary Rumsfeld hit the Hill. We'll replay one of the more heated moments.
The BTK serial killer sends another missing to a local television station. Is he providing clues or taunting police?
We'll be right back.
(COMMERCIAL BREAK)
WALLACE: WALLACE: Straight ahead, Wichita's BTK suspect reaches out again. Is this a case of serial killing by numbers?
And man versus machine -- which one works better in the intelligence business?
It is Thursday, February 17 and you are watching DAYBREAK.
And a good Thursday morning to you.
From the Time Warner Center in New York, I'm Kelly Wallace in today for Carol Costello.
Now in the news, this could be the day the White House announces President Bush's choice for the new post of director of national intelligence. The job was created in an Intelligence Reform Bill the president signed back in December.
Defense Secretary Donald Rumsfeld is one of the officials warning that terrorists are getting ready for a new attack on the United States. Rumsfeld appears today before the House Armed Services Committee to defend the Pentagon's $419 billion budget.
Music producer Phil Spector will be in court today in Los Angeles for a hearing regarding his murder case. Spector is accused of killing actress Lana Clarkson in his home two years ago.
What's new with the flu? A new strain called A. California will be added to the mix for next season's vaccine. The virus is infecting a lot of people around the world this year, causing a higher number of hospitalizations and deaths.
Time for a check of the forecast.
We turn to Rob Marciano, in today for Chad Myers -- good morning again, Rob.
MARCIANO: Hi, Kelly.
A. California was the name of the strain of that?
WALLACE: A. California it is.
MARCIANO: OK, well I'm -- the map behind me, Kelly, shows you the cold and flu reports. And green is the color of California, which means there's sporadic flu activity. So I find it to be ironic that they're calling that strain the A. California flu.
The red states, that's not good. That's where people are not feeling all that well. Widespread cold and flu being reported, 27 states in all, the red states. And this isn't political. This is just meaning that they're not feeling too well because of the cold and flu according to the CDC.
(WEATHER REPORT)
WALLACE: Moving ahead now to news coming out of Wichita, Kansas.
A police news conference is scheduled later this morning on the latest communication sent by an alleged serial killer. It has been decades since the first grizzly headlines. A padded manila envelope arriving yesterday at Wichita's KSAS-TV. It is the second station to receive a message this week, ostensibly from the BTK serial killer. It reads: "KAKE-TV is a good station, but I feel they are starting to be singled out because of me and causing problems among the people. Let's help the news media and Wichita Police Department by using this package as a start."
The BTK killer -- which stands for bind, torture, kill -- first communicated with television station KAKE decades ago.
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 February 17, 2005 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KELLY WALLACE, CNN CORRESPONDENT: Special delivery from a serial killer. Does the latest communication bring police any closer to finding BTK?
Airbus looks for a new home in America, if the Pentagon clears it to land.
And rolling in dough, so says "Rolling Stone." We'll take a look at who's brining home a princely sum in the music biz with the magazine's editor.
It is Thursday, February 17, and you are watching DAYBREAK.
And good morning to you.
From the Time Warner Center in New York, I'm Kelly Wallace, in today for Carol Costello.
Now in the news, terrorists are targeting the United States again. Defense Secretary Donald Rumsfeld is expected to tell members of Congress today that terrorists are reorganizing and getting ready for another attack. He goes before the committee that's working on the defense budget.
Iraqi officials are getting ready to announce final certified election results in about two hours. Iraq is also closing its borders today for a Shiite religious festival. The borders are expected to open again Tuesday.
He has beaten a brain tumor, heart surgery and attempts to unseat him. Now, Senator Arlen Specter of Pennsylvania says he'll be Hodgkin's Disease, as well. Specter says he has the disease, which affects the lymph nodes.
Pop star Michael Jackson is out of the hospital. He left last night. Jackson was admitted Tuesday with a flu-like sickness. It brought jury selection to a halt in his child molestation trial.
Time to get a quick check of the forecast.
For that, we turn to Rob Marciano, who is in today for Chad Myers -- good morning, again, Rob.
ROB MARCIANO, CNN METEOROLOGIST: Hi, Kelly.
That Michael Jackson flu reminds me of when I was a kid. "Mommy, I don't feel good. I don't want to go to school today."
WALLACE: I want to stay home, exactly.
MARCIANO: I think that was a little bit of that.
WALLACE: Right.
MARCIANO: Good morning, again, Kelly.
(WEATHER REPORT)
WALLACE: And we begin this hour with what attacks on America may be in the works and who will be response for warning us.
In the next few hours, President Bush could name his choice for director of the national intelligence agency. The post was created by the National Intelligence Reform Act, signed into law last December 17. The director of national intelligence oversees 15 different intelligence agencies. He or she would report directly to the president.
At a Senate Intelligence Committee hearing yesterday, Democrat Jay Rockefeller criticized the delay in naming a director.
(BEGIN VIDEO CLIP)
SEN. JAY ROCKEFELLER (D-WV), VICE CHAIRMAN, INTELLIGENCE COMMITTEE: Two months have now passed since the bill signing ceremony and the position of director of national intelligence remains vacant, not even a person nominated. To me, this is unacceptable.
(END VIDEO CLIP)
WALLACE: But the Republican committee chairman, Senator Pat Roberts, said the decision on a director was "too important to be rushed."
CIA Director Porter Goss was also on Capitol Hill. He was one witness before that committee yesterday. And he warned that terrorists are still a major threat to the United States.
(BEGIN VIDEO CLIP)
PORTER GOSS, CIA DIRECTOR: Al Qaeda is intent on finding ways to circumvent U.S. security enhancements to strike Americans in the homeland, one.
Number two, it may be only a matter of time before al Qaeda or another group attempts to use chemical, biological, radiological or nuclear weapons. We must focus on that.
Three, al Qaeda is only one facet of the threat from a broader Sunni jihadist movement.
And, four, the Iraq conflict, while not a cause of extremism, has become a cause for extremists. (END VIDEO CLIP)
WALLACE: Director Goss also testified that North Korea's nuclear weapons arsenal has grown in the past three years since it was estimated that the North Koreans had one or two nuclear weapons. But the CIA chief gave no new figures.
Most Americans now consider North Korea to be one of this country's top enemies. Respondents to a Gallup poll ranked North Korea with Iraq as the top enemies, 22 percent choosing each country. Iran is ranked third, with 14 percent. Ten percent pick China.
Today's budget witnesses on Capitol Hill include Secretary of State Condoleezza Rice and Defense Secretary Donald Rumsfeld. Secretary Rice defends her department's budget before the Senate Appropriations Committee this morning and the House International Relations Committee this afternoon.
Secretary Rumsfeld and Joint Chiefs Chairman General Richard Myers appear before Senate Armed Services this morning and House Armed Services this afternoon.
For Secretary Rumsfeld, it will be a second day of testimony. Senate committee members quizzed the defense chief yesterday about the $419 billion Pentagon budget and about the $82 billion in emergency funding for the wars in Iraq and Afghanistan.
More on this now from CNN correspondent Kareen Wynter in Washington.
(BEGIN VIDEO TAPE)
KAREEN WYNTER, CNN CORRESPONDENT: This military budget proposal involves top dollars and committee members wanted more details on how this money would be used and whether it would help improve the conditions of U.S. forces already stretched thin overseas.
(voice-over): For the Pentagon chief, it was a tough sell convincing law makers on the Senate Armed Services Committee, President Bush's half a trillion dollar military request was critical to fighting terror abroad and at home.
RUMSFELD: Just because we have been fortunate in this country and not seen another attack since September 11, that does not mean that it's over.
WYNTER: Defense Secretary Donald Rumsfeld argued the budgetary reforms and initiatives would keep U.S. forces one step ahead of a resilient insurgency.
RUMSFELD: Our enemies, as you know, have brains. They watch what we do, they look for our vulnerabilities, they adapt their tactics frequently.
(END VIDEO TAPE)
WALLACE: And that was Kareen Hunter (ph) reporting.
Well, while the defense secretary was defending the budget, Federal Reserve Chairman Alan Greenspan was giving qualified endorsement of the president's plan to overhaul Social Security. Greenspan went before the Senate Banking Committee yesterday. He says he supports the idea of private Social Security accounts, but he urged Congress to proceed with caution.
(BEGIN VIDEO CLIP)
ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: My caution here is based on not knowing and not knowing how to know in advance how markets will respond. I do know that asking people in the marketplace is of no value at all because they do not know. They will tell you they know, but I haven't found that a very useful forecast.
(END VIDEO CLIP)
WALLACE: And Greenspan says he doesn't have a problem with the government borrowing money to make the transition to private accounts, but he says the amount shouldn't exceed a trillion dollars. Some experts say it could taken two trillion.
Across America now, investigators are on the scene of a deadly plane crash in Pueblo, Colorado. All eight people on board were killed when the corporate jet crashed about five miles away from the airport. The plane was owned by electronics retailer Circuit City. Freezing rain may have played a part in the crash.
A controversial student identification system has ended at one California school. Kids at an elementary school in Sutter, California wore radio frequency badges so they could be tracked throughout the school. Some parents thought it was an invasion of privacy. The company that provided the badges pulled out of the program due to concerns over vandalism and media attention.
Sarah Brady has given birth to a very lucky little girl. Last week, the mother to be was attacked by a knife wielding woman who police believe was trying to steal her baby. The attacker, Katherine Smith, was killed when Brady grabbed the knife and fought back. Police found baby toys and surgical tools in Smith's home. An autopsy also found that she wasn't pregnant.
A hospital in San Rafael, California won the right to evict one of its patients. Eighty-two-year old Sarah Nome is refusing to leave the hospital room she's called home for over a year. Both the hospital and Nome agree that there's nothing wrong with her. The hospital has offered to waive her $1 million medical bill if she leaves, but she says no, she is staying.
When DAYBREAK continues, federal judges -- the president's picks aren't necessarily popular. We'll tell you about a power struggle that doesn't get much press.
Spies of the skies -- could an unmanned drone hold the answers to spying on Iran or just cause more problems? And later, Kid's day in court. We're talking about Kid Rock.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
WALLACE: Still to come here on DAYBREAK, the Governator goes to Washington.
Hallmark says sorry to thousands of online valentines.
And former "Apprentice" Omarosa makes an accusation about the show that made her infamous.
We are back in 60 seconds.
(COMMERCIAL BREAK)
WALLACE: And welcome back.
Your news, money, weather and sports.
It's about 14 minutes after the hour and here's what's all new this morning.
Defense Secretary Donald Rumsfeld returns to Capitol Hill today for a second round of testimony on budget issues. He is warning that terrorists are preparing for a new attack against the United States and he's urging law makers to approve the president's $419 billion military and anti-terror budget.
A message for broadcasters -- clean it up or get ready to pay big. The House has approved legislation raising the fine for indecent programming to half a million dollars. Right now it is $32,500.
In money, Swedish retailer Idea is opening its first warehouse in the southeastern United States this summer. The store in Atlanta will be the company's third largest in the U.S.
In culture, Ashley Olsen is suing the "National Enquirer" for at least $40 million. Her libel suit against the tabloid claims she was inaccurately linked to a drug scandal.
In sports, more tests will be conducted today on Patriots' linebacker Teddy Bruschi. The 31-year-old was hospitalized with headaches, but the team says he is in good condition. Bruschi played in the Pro Bowl in Hawaii just four days ago.
Time now to check with Rob Marciano and weather.
And, of course, Rob, he also did a great job in the Super Bowl -- right?
MARCIANO: Oh, he did. He's a hard hitter and, you know, on a lighter note hopefully, maybe that headache is just a hangover continuing from the Super Bowl.
WALLACE: Right.
MARCIANO: We'll see what happens there.
(WEATHER REPORT)
WALLACE: Those are the headlines.
Coming up, we will tell you why J-Lo is a no go for a trip to Europe.
And a plus for passengers -- if you travel to Europe, you'll want to hear about some new rules that go into effect today.
This is DAYBREAK.
We'll be right back.
(COMMERCIAL BREAK)
CARRIE LEE, CNN CORRESPONDENT: Good morning, everyone.
I'm Carrie Lee at the Nasdaq market site.
French airplane maker Airbus may be coming to the United States. The company is looking for a site in the U.S. for a new factory. And this would help the company's standing as a U.S. military contractor. There are some sticking points, though. Airbus is angling for a $22 billion contract for 100 refueling tankers for the U.S. Air Force. And Boeing had won this contract but then lost it when it was discovered Boeing later hired a top Air Force official who admitted favoring Boeing during the procurement process.
Now, it's not quite a done deal, and that's because some U.S. lawmakers oppose giving such a large contract to a foreign company. So Airbus is not expected to build this factory without the contract.
That is the latest on that story.
Turning to stocks, futures are looking pretty flat for today's session. In fact, that's pretty much what we saw at the close yesterday. The markets are little changed following comments from Fed Chief Alan Greenspan. He did say the economy is in good shape. He did add that fiscal discipline is necessary.
And that is the latest business news.
DAYBREAK will be right back.
(COMMERCIAL BREAK)
WALLACE: And welcome back.
It could get ugly on Capitol Hill as President Bush tries to get his judicial nominees confirmed. This week, the president renominated 20 candidates for federal judgeships. Some of their confirmations were blocked by Senate Democrats during his first term, the judges branded as right-wing ideologues.
Let's go live now to CNN political analyst Ron Brownstein in Washington -- Ron, great to see you, as always.
Thanks for being here.
RON BROWNSTEIN, CNN POLITICAL ANALYST: Kelly, good morning.
WALLACE: OK, Ron, so this isn't the first president, the first Congress to battle over judicial nominees.
Why is this always such a fight?
BROWNSTEIN: Well, the reason the stakes are so high is because these are lifetime appointments. And, as such, they draw a lot more fire from the other side, the opposition party, than executive branch appointments, which, of course, expire with the presidency.
What -- you've got to identify what the real problem is here. The lower courts, the district federal courts, the president has made 179 nominations. A hundred and seventy have been approved. Both sides basically agree that's a reasonable rate.
Where the dispute is, is over these powerful district courts of appeals -- the circuit courts of appeals. Excuse me. President Clinton, in his second term, when Republicans held the Congress, made 51 nominations and 35 of them were approved. President Bush, over this last term, has made 52 nominations and, again, 35 of them were approved. A comparable rate, but one which has left both sides feeling that the opposition party is blocking too many of the president's choices.
WALLACE: And you -- what's different this time around? You have Senate Republicans in the majority talking of something so-called the nuclear option, changing rules.
What are we talking about and how likely is this that it will happen?
BROWNSTEIN: Basically, Democrats are using the filibuster to block the nominations they don't like. The filibuster, of course, is the longstanding Senate rule from the outset that you now need 60 votes if the minority party wants to block something. Senate Republicans are saying they are considering a rule change that would allow judges to be passed with 51 votes, breaking Senate history and tradition.
Now, the Democrats are saying if they go to that nuclear option, they will literally try to blow up the Senate procedurally. And, of course, Kelly, the risk for Republicans is that even if you can get some of these nominations through that way, the fallout might be so intense that it will endanger almost everything else on the president's agenda.
WALLACE: Ron, also, give us a reality check.
How much do presidents use the judiciary to try to seal their legacy and leave some influence beyond their terms?
BROWNSTEIN: You know, almost a third of the federal courts now were appointed by presidents before President Bush and President Clinton. So that gives you an idea of how long lasting these appointments can be. They are lifetime appointments. They really are a way for a president to put his stamp on public policy.
I think both parties have come to believe that control of the courts, not just the Supreme Court, but also the appellate courts and the district courts, can be as important as control of Congress in shaping the political direction of the country.
So it clearly is a very high stakes battle. But really, Kelly, I think what many people feel is that both sides need a way to establish some process of collaboration and compromise. This sort of endless stalemate over judges really does no one any good.
WALLACE: All right, Ron Brownstein, we know you will be watching. We'll be watching, as well.
Good to see you.
BROWNSTEIN: Thank you.
WALLACE: CNN senior political analyst Ron Brownstein.
Thanks for being here.
Coming up next on DAYBREAK, some biting words exchanged when Secretary Rumsfeld hit the Hill. We'll replay one of the more heated moments.
The BTK serial killer sends another missing to a local television station. Is he providing clues or taunting police?
We'll be right back.
(COMMERCIAL BREAK)
WALLACE: WALLACE: Straight ahead, Wichita's BTK suspect reaches out again. Is this a case of serial killing by numbers?
And man versus machine -- which one works better in the intelligence business?
It is Thursday, February 17 and you are watching DAYBREAK.
And a good Thursday morning to you.
From the Time Warner Center in New York, I'm Kelly Wallace in today for Carol Costello.
Now in the news, this could be the day the White House announces President Bush's choice for the new post of director of national intelligence. The job was created in an Intelligence Reform Bill the president signed back in December.
Defense Secretary Donald Rumsfeld is one of the officials warning that terrorists are getting ready for a new attack on the United States. Rumsfeld appears today before the House Armed Services Committee to defend the Pentagon's $419 billion budget.
Music producer Phil Spector will be in court today in Los Angeles for a hearing regarding his murder case. Spector is accused of killing actress Lana Clarkson in his home two years ago.
What's new with the flu? A new strain called A. California will be added to the mix for next season's vaccine. The virus is infecting a lot of people around the world this year, causing a higher number of hospitalizations and deaths.
Time for a check of the forecast.
We turn to Rob Marciano, in today for Chad Myers -- good morning again, Rob.
MARCIANO: Hi, Kelly.
A. California was the name of the strain of that?
WALLACE: A. California it is.
MARCIANO: OK, well I'm -- the map behind me, Kelly, shows you the cold and flu reports. And green is the color of California, which means there's sporadic flu activity. So I find it to be ironic that they're calling that strain the A. California flu.
The red states, that's not good. That's where people are not feeling all that well. Widespread cold and flu being reported, 27 states in all, the red states. And this isn't political. This is just meaning that they're not feeling too well because of the cold and flu according to the CDC.
(WEATHER REPORT)
WALLACE: Moving ahead now to news coming out of Wichita, Kansas.
A police news conference is scheduled later this morning on the latest communication sent by an alleged serial killer. It has been decades since the first grizzly headlines. A padded manila envelope arriving yesterday at Wichita's KSAS-TV. It is the second station to receive a message this week, ostensibly from the BTK serial killer. It reads: "KAKE-TV is a good station, but I feel they are starting to be singled out because of me and causing problems among the people. Let's help the news media and Wichita Police Department by using this package as a start."
The BTK killer -- which stands for bind, torture, kill -- first communicated with television station KAKE decades ago.
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