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Rescue Under Way in Phoenix, Arizona; Israel Launches More Attacks in Southern Lebanon; IDF: Israeli Aircraft Shoot Down Unmanned Hezbollah Drone

Aired August 08, 2006 - 14:01   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KYRA PHILLIPS, CNN ANCHOR: Our top story, a rescue under way, hopefully, in Phoenix, Arizona.
Let's get to the newsroom. Betty Nguyen has details on this -- Betty.

BETTY NGUYEN, CNN ANCHOR: Yes, this 28-year-old construction worker has been trapped for six and a half hours now. We've been counting it. Basically, he was trying to remove a wall with a front- end loader, and that wall fell on top of his heavy equipment.

As you can see, there are many rescue workers on the scene. It looks like they're in line to bring this man out once he's is finally free from the debris there and the wall that has collapsed on top of him.

You can see the firefighters there, the lines that they have in their hands, if you look very closely. They are feeding this trapped worker medications and fluids intravenously. They're trying to keep him alive.

He does have some major injuries to his lower body. Now, we don't know the extent, except only to tell you that they are major injuries. And there is a lot of concern about getting him out of there safely. And, of course, they need to get him out of there as quickly as possible.

Once again, he has been trapped for about six and a half hours. This happened at 4:30 a.m. Phoenix time, and they have been working around the clock to try to get him out. And his family is on scene.

They're trying to cut some reinforcing bars to release him from the situation that he's in. But as you can see, Kyra, folks are on the scene, they're trying to make this rescue something that could happen just as soon as possible. And when that happens, we will bring it to you.

PHILLIPS: All right, Betty. Thanks.

Well, a warning from the air for southern Lebanon. Here's what we know of day 28 of the Middle East crisis.

"Don't drive or you might become a target." Israel has dropped leaflets over the port city of Tyre and surrounding areas warning people to stay off the roads or risk getting bombed. Meantime, envoys from the Arab League are about to make their case to the U.N. They're pushing a change -- a draft resolution aimed at ending the fighting.

Lebanon and its allies want an immediate Israeli pullout, something the resolution doesn't call for. And after almost a month of fighting, Lebanon reports more than 780 people killed, most of them civilians. Almost 3,000 wounded.

On the Israeli side, almost 100 dead and more than 700 wounded.

CNN has reporters all across the region, and LIVE FROM will have live reports throughout the show.

Well, we begin in Beirut, still reeling from a deadly Israeli attack.

Our Brent Sadler is in the Lebanese capital with more -- Brent.

BRENT SADLER, CNN BEIRUT BUREAU CHIEF: Thanks, Kyra.

A short time ago, within the past hour, there were more explosions heard from the southern suburbs of the Lebanese capital, two blasts. We're not quite sure what, if any, damage or casualties are resulting from that.

What we can tell you, though, that the internal security forces here in Lebanon have increased the numbers of those killed in an attack yesterday in a district called Shiyah. That's also in the southern suburbs, an area that had been thought relatively safe up until yesterday.

Lebanese security forces say now that more than 60 people were injured and 30 people killed. Now 30 people dead in that attack.

Now, you were saying, Kyra, that the Israeli army, the defense forces, have dropped leaflets over Tyre. That comes a day after the southern port city of Tyre was effectively cut off by road after the Israeli air force bombed the last bridge making it very difficult for convoys, humanitarian aid to get in, and making it even more difficult for people below the line of the Litani River, which is about 20 miles north of the Israeli border.

All people left in that area had been told categorically by those leaflets not to attempt to go in any vehicle whatsoever because they will risk being shot by air or from the sea, if that were to happen. The defense forces saying that it is as a result of Hezbollah using people below the Litani River, says a statement, as human shields that the Israelis are taking this new military action.

Now, in addition to that, there is still hope here in Lebanon that the Arab League delegation meeting with members of the U.N. Security Council in New York can impact on a draft resolution that would reflect more of what Lebanon wants in any U.N. proposals to end the fighting. The government here has proposed sending a force of some 15,000 Lebanese army troops to the south, but on condition that the Israelis agree to withdraw all those troops that have been battling their way into the south over the past nearly four weeks -- Kyra.

PHILLIPS: Brent Sadler, live from Beirut, Lebanon.

Thanks, Brent.

A drone down off the Israeli coast, or so the Israeli military reports, releasing this video supposedly showing the shootdown of an unmanned Hezbollah aircraft some time yesterday. CNN can't verify it, but the idea that Hezbollah may have drones is itself a bit of a bombshell.

CNN's Brian Todd takes a look.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): A senior Israeli military official tells CNN the drone shot down, similar to this one, is the third unmanned Hezbollah drone launched over northern Israel over the past few years and the first to be shot down. The official says the vehicle was targeted by an Israeli fighter jet and crashed into the sea. The Iranian-made drone, according to Israeli sources, has a wingspan of just a few feet, but may have carried explosives. Experts say Hezbollah does not have drones the size of the U.S. Predator, capable of firing longer-range missiles.

MICHAEL O'HANLON, BROOKINGS INST. Hezbollah probably has relatively simple drones that may be numerous, but would be relatively easy to shoot down. It doesn't mean that none of them will get through. Some could get through, and some of them could be steered quite accurately to a target.

TODD: Hezbollah could easily weaponize its drones with warheads, according to experts, but the drones themselves would have to fly low, get very close to Israel's major cities to hit them, and would likely be intercepted before they reach the target. But one key tactical use, analysts say, is to find Israeli military positions and send pictures of them back to Hezbollah command posts.

JOHN PIKE, GLOBAL SECURITY ORG.: You send out this UAV with a TV camera to look for convoys, people who have not taken shelter. As soon as this thing spots them, the TV sends back the target location, you fire your rockets.

TODD: This deployment has other uses for Hezbollah, as well, according to Israeli officials and other experts: propaganda, sending a message to Hezbollah's supporters and its enemies that the group is still capable of tactical surprises.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Well, Brian Todd is one of the regular contributors for "THE SITUATION ROOM" with Wolf Blitzer weekdays at 4:00 p.m. Eastern and again in prime time at 7:00 Eastern.

Now, there's no real front line in the latest Middle East conflict, but there is a border, and it's seeing a lot of action.

Our Matthew Chance is there -- Matthew.

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Thanks very much, Kyra.

That's right, there's been ferocious fighting still going on across the border in southern Lebanon from here in northern Israel with an artillery barrage and airstrikes striking at Hezbollah strongholds, according to the Israeli Defense Forces, as more than 10,000 troops continue what they've been doing for the past few weeks, which is battling Hezbollah fighters on the ground in what appears to be a very tough and long-running close-quarters fighting. At least one Israeli soldier was killed today around the town of Bint Jbeil; another three were killed there yesterday.

That's been the scene of some of the fiercest fighting. And, indeed, last week Israel said it had control over that town, but it's the nature of the guerrilla war that is currently being conducted by Hezbollah against Israeli soldiers on the ground that makes it very difficult for the Israelis to actually exercise any complete control over any one area.

The Hezbollah fighters are tough, they're well trained, they're well armed, and they're well dug in places, as well. And so it's proving very difficult.

Now, if Israel expands its military operation, as it says it is prepared to do, if the diplomatic channel in all of this does not work out, then, obviously, it will involve a lot more forces and a lot more fighting across southern Lebanon as well. And that is something many people in Israel and elsewhere are very concerned about -- Kyra.

PHILLIPS: All right, Matthew. Thanks.

Well, imagine swimming in a motel pool when a tornado comes out of no where. No warning, no time to hide. That's what guests say happened at the Comfort Inn just outside Colby, Kansas, last night.

Four people were hurt by flying glass and debris. Motel workers say the sirens didn't sound until the tornado was almost on top of them.

Three named storms so far this hurricane season, and more expected, but apparently not as many as we thought.

Jacqui Jeras, in the new CNN Weather Center, explains.

(WEATHER REPORT)

PHILLIPS: Well, an intense rescue under way right now in Phoenix. A worker trapped under this pile of rubble. Live pictures via our affiliate KPNX out of Phoenix. The crew is trying to get to him from above ground. We're going to go there live as soon as that rescue happens.

Also, we're keeping an eye on the markets. The Fed delivers the latest news on interest rates in just a few minutes.

We're going to bring that to you as soon as it's announced and ask what it means for you with our Ali Velshi and Susan Lisovicz.

You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: All right. Raise or pause? We're hearing not changed. For the first time in two years, the smart money is on the latter as the Federal Reserve meets today to revisit interest rates.

Susan Lisovicz and Ali Velshi counting the seconds until the Fed announces it, but wait, we're getting a little bit of scoop here? Is that right, Susan? Ali?

ALI VELSHI, CNN CORRESPONDENT: No, it's there.

PHILLIPS: No? It's there. So not changed?

VELSHI: It's in. They've decided not to do it.

Susan, what's going on at the exchange? They've decided not to do it.

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Well, you know, there was -- there was kind of like a little bit of booing. I think that, Ali, that that was pretty much the consensus, that the economy has weakened.

We've seen signs of it for months now, whether it's the housing market; whether it's GDP, a big drop in the second quarter from the first quarter; whether it was July job's report, which came in weaker than expected. But after two years of interest rate hikes, the Federal Reserve has decided that the economy has moderated enough to the point that it does not have to raise interest rates.

But, of course, Ali, as you know, the debate continues as to whether that is the right thing to do. And this was not a unanimous decision, which is also noteworthy. It's usually unanimous.

VELSHI: Yes.

LISOVICZ: It was 9-1 on this vote.

VELSHI: One of the governors wanted a quarter point increase.

And, Kyra, what this means is that from now until September 20th, the next meeting, we're all going to be worried about whether the Fed is going to go back to raising. Remember, Kyra, they raised 17 times from June of 2004.

Back then, the Fed rate was one percent. That meant if you had a prime rate loan at the bank, it was 3 percent more than that. Four percent is what you were paying to borrow money, and that's why everybody borrowed money.

Now it's 5.25, plus 3 percent. That's the minimum that regular folks like us pay to borrow money on adjustable mortgages and things like that, if you're going out and getting one now.

So, this is a big deal that the Fed has decided not to do it. And as Susan will tell you, we went into this decision with the Dow up about 10 points, and it is -- it is showing some significant movement now. At least traders seem to be happy about this, right, Susan?

LISOVICZ: Yes, but, you know, Ali, I thought one of the best notes that I saw today came from Art Cashen, who is pretty much the dean of the trading floor here.

VELSHI: Yes.

LISOVICZ: And he said real-time trading is not conducive to reflective thought. They will be parsing this four-paragraph, five- paragraph statement, oh, for weeks to come. In fact, until the next Federal Reserve meeting, which is next month -- mid to late next month.

VELSHI: Can I give you -- can I give you a hint? Can I give you a start as to where the parsing is going to start?

LISOVICZ: Go right ahead.

VELSHI: It's this paragraph that says -- after they've said they're not going to raise interest rates -- "Nonetheless, the committee judges that some inflation risks remain. The extent and timing of any additional firming" -- firming, meaning raising interest rates again -- "that may be needed to address these risks will depends on the evolution of the outlook for inflation and economic growth as applied by incoming information."

That means they're not done. They have not decided that they stopped raising interest rates. The question now is, will they raise again, and when?

LISOVICZ: Yes. And, you know, one of the things, Kyra, that, you know, it's so important here is that the Federal Reserve is trying to accomplish two things.

It's trying to moderate economic growth. And we've seen signs of that for some time to come. Just look at the housing market.

But the other concern -- and this is really public enemy number one -- is inflation. And that's a much greater threat than the economy merely slowing down.

Think about runaway inflation and what that would do to all of us. We know what it's done to the energy sector, but we've seen it growing and getting worse outside of that. Not just what it takes to fill up your car or to heat your house, but what it takes to fly, when you're going on a business trip, or to rent a hotel room, or to buy cereal on the grocery shelves. That's what the Fed is also very concerned about, and that's what Ali was just talking about in the statement.

That may be why the Fed may raise interest rates, yet again, as early as next month.

VELSHI: And, Kyra and Susan, I guess the part that makes this really tricky is that on one side you've got that inflation. Susan talked about cereal. We know that Kellogg raised its cereal prices by 3 percent, in part citing higher energy costs. So, higher energy costs are making everything cost a little bit more.

You're actually paying more for gasoline and the things that Susan was talking about. But if the Fed continues to raise interest rates, of had they continued to raise interest rates, you're getting squeezed on both sides, and that can be very dangerous, because if businesses and regular folks start to feel a squeeze on both sides, that's when they stop spending.

And as we've all discussed many, many times, the American consumer holds this economy together. Two-thirds of everything that happens in this economy is the consumers. Not government spending and things like that.

So, the Fed has got to be very careful right now. There are probably a lot of people across this country breathing a sigh of relief that the Fed did, in fact, decide not to increase rates again today.

LISOVICZ: But not a big reaction on Wall Street. That will be the parting shot for me, Kyra.

(STOCK MARKET REPORT)

PHILLIPS: Susan and Ali, that's what I love about you guys, I just let you go. I don't need -- I don't need to say a thing. You guys play off each other perfectly.

VELSHI: Did we leave you out of this?

PHILLIPS: You gave us the scoop. Are you kidding me? I'm sitting back going, "OK, I'm trying to understand all this. I'm taking notes."

VELSHI: OK. Next time we talk, I'm going to, like, just be quiet.

PHILLIPS: No way. I count on you two. I count on you.

All right. We'll talk again, of course, about this, and as we get closer to the closing bell.

Thanks, guys.

VELSHI: OK. PHILLIPS: All right. Let's get straight to the newsroom. Betty Nguyen with details on a developing story for us -- Betty.

NGUYEN: Yes, Kyra, we were following this, and, boy, it gets more interesting by the minute. Basically, the situation is Joseph Lieberman is saying that his Web site was hacked and that there are major problems with it. People can't even access it, especially on voting day. Today is the primary.

People are headed to the polls to determine if they want Joe Lieberman or Ned Lamont to win this. And for those who wanted to go to joe2006, Lieberman's Web site, well, you can't. And if you go there now, you'll see an error message that says "This account is under construction."

But we checked out a blog a little bit earlier that pulled a quick little still from this Web site earlier today, obviously because it's not the same message that's on it now. But it says, "This account has been suspended." At the bottom it says, "Please contact the billing and support department."

This is from the Daily Kos blog site.

Well, the Joseph Lieberman campaign heard about the accusation that they didn't pay their bill and they issued this statement, a statement which I have right now, that says, "Friends of Joe Lieberman, it's completely paid in full" -- referring to the Web site. "The screen that showed yesterday is a default image from the server."

This has been down since last night around 7:00 p.m. and is still down. And it goes on to say, "Once we were able to isolate all the site files for study, we were able to add the appropriate one-page maintenance message." Which is the message that you see right when you try to go to Joe2006.com.

Now, the Lieberman campaign says this is not because of an error in paying their bills. They point the finger at the Ned Lamont campaign saying it's dirty politics and you're disenfranchising voters because today is the time for them to get information and head to the polls. They can't even access the site.

So, it's tit for tat. Fingers are pointing everywhere. And Ned Lamont, as you well would assume, says he has nothing to do with it. There's no tampering of the Web site.

So we'll see.

PHILLIPS: All right. We'll monitor that developing story, also that intense rescue that's under way out of Phoenix, Arizona.

Live pictures now via our affiliate there, KPNX. A worker trapped underneath this pile of rubble more than six hours, and right now this crew trying to get him above ground. We're going to go there live as soon as that happens.

Also, a suspected serial shooter says he's innocent. (BEGIN VIDEO CLIP)

DALE HAUSNER, SUSPECTED SERIAL SHOOTER: I guess I'm just guilty by association even though I did not shoot anybody or kill anybody. I would like to see them prove it. They're going to have to prove it, because I didn't do anything wrong.

(END VIDEO CLIP)

PHILLIPS: Public relations ahead on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Well, suspect versus suspect in Phoenix. Dale Hausner claims he didn't do it, but his fellow suspect, Sam Dieteman, told police he and Hausner took turns shooting people, seven of whom died. Now Hausner is pressing his case with the public.

Kim Holcomb of affiliate KPNX reports.

(BEGIN VIDEOTAPE)

KIM HOLCOMB, KPNX-TV REPORTER (voice-over): Shackled and surrounded by armed guards, an accused serial killer sits before a swarm of media and very calmly presents his defense.

HAUSNER: And I guess I'm just guilty by association, even though I did not shoot anybody or kill anybody.

HOLCOMB: Dale Hausner says he's innocent but claims his roommate, Sam Dieteman, may not be.

HAUSNER: He could easily have access to my car and I'd never know about it.

HOLCOMB: Piece by piece Hausner attempts to dismantle the case against him. For every accusation, an answer. Police say he was spotted prowling the dark streets with Dieteman in his car.

HAUSNER: Many, many times at night I'd drive around because I can't sleep.

HOLCOMB: The arsenal of weapons removed from his apartment.

HAUSNER: I have a gun collection. I have lots of weapons, as does most Americans.

HOLCOMB: A map plotting the serial shooter crimes recovered from his complex dumpster.

HAUSNER: Yes, I've been keeping track of what's been going on.

HOLCOMB: Surveillance photos showing both suspects at Wal-Mart before it was torched.

HAUSNER: If Sam committed arson and I was there with him, I did not actually commit any arson.

HOLCOMB: For about 10 minutes, Hausner appears to candidly and confidently field every inquiry, at times, openly challenging police and prosecutors.

HAUSNER: I would like to see them prove it. They are going to have to prove it because I didn't do anything wrong.

HOLCOMB: But just as quickly as it started, this surprise press conference ended.

UNIDENTIFIED MALE: I want you to stop and talk to me.

HAUSNER: OK. I'm sorry, I'm going to have to stop answering questions.

HOLCOMB: A public defender advising Hausner to stop talking. Even so, he would not ignore one final question.

QUESTION: Are you the serial shooter?

HAUSNER: I hope I -- absolutely not.

(END VIDEOTAPE)

PHILLIPS: And we're going to talk about this case with a woman who's interviewed dozens of serial killers, Dr. Helen Morrison, forensic psychologist and author of "My Life Among the Serial Killers." She'll join us tomorrow on LIVE FROM.

Once again, we want to take you live to Phoenix, Arizona. We're still monitoring this rescue operation.

Firefighters saying they're close to freeing a construction worker that has been trapped for more than six hours now under tons of concrete in this partially-collapsed parking garage. These pictures coming to us from KPNX out of Phoenix, Arizona.

Firefighters say that they hope to have the man freed within possibly an hour, and they have plans to whisk him straight away to a nearby hospital once they get him out of there. And we're following the live pictures and the rescue effort.

So, has the U.S. war in Iraq empowered Iraqi Shiites? And what's the impact on the fighting in southern Lebanon? A Shiite expert joins us straight ahead on LIVE FROM.

(COMMERCIAL BREAK)

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