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Mideast Clashes; Train Terror; Chicago Derailment; Rumsfeld In Iraq; Unwilling To Retire

Aired July 12, 2006 - 10:00   ET

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

MILES O'BRIEN, CNN ANCHOR: Uh-oh, we're in the penalty phase, bonus time, we're in Daryn's time.
Daryn, take it away. We're sorry. We owe you 26 seconds -- 27, 28, 29 seconds.

DARYN KAGAN, CNN ANCHOR: You're always welcome in my world, you know that. Go, go get out of here. Have a great day.

BRIANNA KEILAR, CNN ANCHOR: See you later.

O'BRIEN: I'll get out of here.

KAGAN: All right. Bye, Brianna. Bye, Miles.

KEILAR: Bye-bye.

KAGAN: We do have a lot to get to it turns out. A busy couple hours ahead, including Israel warning Hezbollah will pay a heavy price. That's Israel's words after two soldiers are captured along the Lebanese border.

The death toll is still rising in India's commercial capital a day after coordinated bombings on city trains.

And on the front lines of a wildfire emergency. We'll go live to southern California to the desert. That would be Israel, but we will be going live -- there we go, to southern California where crews are fighting an out of control blaze.

And good morning to you on this Wednesday morning. I'm Daryn Kagan.

New developments to tell you about this hour as a new front opening in the fighting in the Middle East. Now to the map of Israel where forces are now pounding southern Lebanon. Here is what we know right now. Israeli tanks, troops and war planes entered the country today. It was a swift reaction after two Israel soldiers went missing along the Lebanese border. The militant group Hezbollah says it is holding the soldiers. Israeli prime minister Ehud Olmert says that the capture, he is calling it an act of war. He's set to meet with his cabinet in about two hours and says a response will be, "very, very painful."

Meanwhile, Israel continues its offensive in Gaza. That's an effort to recover another kidnapped Israeli soldier. More than a dozen are reported dead after a new wave of attacks today.

Our Paula Hancocks has been following the story from Jerusalem all morning and she brings us the latest.

Paula, hello.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Daryn.

Well, we have got a second front that Israel is fighting on. We know that the troops are in southern Lebanon at the moment. The deepest incursion we've seen of Israeli troops into Lebanon since they pulled back in May 2000. Now we've heard just in the last hour there has been another attempted attack by a Hezbollah militant. This one man tried to cross the border and attack an army post. The Israeli defense forces telling us that Israeli military shot him dead. Now we do know that the two Israeli soldiers are missing, as you say, and the troops are in Lebanon to try and find these two Israeli soldiers.

Now we know that the Israeli air force, as well, has been pounding bridges and roads to try and restrict the movement of these militants that are holding these Israeli soldiers to make it easier for the Israeli military to find these soldiers themselves. Now we also know at least four soldiers were wounded in that particular attack at 9:00 this morning local time.

Now, Israeli Prime Minister Ehud Olmert has been calling it an act of war. Very strong words from the prime minister. He's holding the Lebanese government responsible for both the attack and also for the safekeeping of these two Israeli soldiers.

Daryn.

KAGAN: Paula Hancocks from Jerusalem, we'll be in touch with you over the next couple of hours, thank you.

Let's get back to the big story we followed yesterday, terror on the trains. It is not stopping millions of commuters from taking the rail system to work today in India. Here is what we know about this story. The death toll is still climbing in Mumbai. Authorities now confirm more than 185 people dead, another 700 injured in yesterday's coordinated explosions. Some family members are still scouring hospitals and morgues for missing relatives.

Meanwhile, investigators are combing through the twisted wreckage of train cars for clues as to who was behind the attacks. Officials suspect Islamic militants, but so far there has been no claim of responsibility. Our Aneesh Raman joins us on the phone from Mumbai, the Indian city once known as Bombay.

What is the mood there today, the day after, Aneesh?

ANEESH RAMAN, CNN CORRESPONDENT: Well, Daryn, I came in just a few hours ago and as you travel the streets of Mumbai, India's financial heart, home to some 16 million, it's really unremarkable in terms of change since yesterday's devastating attack. Eleven minutes of terror, now a day ago that saw seven bombs detonate on trains, leaving, as you say, at least 183 people killed, some 700 others wounded.

The trains today a little less crowded but essentially people have to commute. Of the 16 million here, some 12 million or so rely on the trains to get around. It is a commuter system that is busting at the seems. People might recall often images of India's trains, especially in Mumbai, where they're clinging on to the sides. These attacks took place in the less crowded first class compartments. Not anything too luxurious. But those compartments have seen a little less traffic.

You will see, of course, more devastating impacts in the hospitals among that 700 wounded. For some of them, there is simply no joy in survival, paralysis, people that are now crippled. And tonight, families that are still burying the dead, burning the bodies, cremations taking place. But Mumbai, as a city, is defiantly rebounding and has done so in the past and is doing so today.

Daryn.

KAGAN: Well, and officials, were they encouraging people to get back and go to work? I guess by this point we've now seen the full rush hour, both people coming to work and going home.

RAMAN: They were. Officials here have had to contend with two things. The most important, of course, is the investigation. Who exactly was behind this attack, toward that end. They have found explosives that link to a number of groups. They've been carefully not to explicitly name any. And the reason is the other important issue they face, which is keeping sectarian tensions in the aftermath of this crippling attack at bay. Keeping the Muslim minority and Hindu majority populations within Bombay from fighting amongst each other and riots or any sort of reprisal attack. So they've been very careful as they proceeded.

There have been calls from virtually ever level of society, political leaders, business leaders alike, saying that Bombay must together pull through. That this was an attack on innocent civilians and that those who helped -- and the city really did come together to help those who were injured, the casualties in the immediate aftermath for residents from the slums coming and helping more affluent people who were traveling in the first class compartment, keeping them alive. That, spirit is what leaders here want to really take forward and make sure that the city doesn't descend into any sort of further confrontation.

Daryn.

KAGAN: Aneesh Raman live on the phone from Mumbai, thank you.

So the question is, why would terrorists target this city? A look at what makes India's commercial capital a prime target for terrorists. That's ahead here on CNN, the most trusted name in news.

In our CNN "Security Watch," more police patrols and random bag searches for New York commuters today. That city is ratcheting up security on subways and rail lines in response to those train attacks in India. Officials also increased security at tunnels and bridges. Police say there have been no specific threats to the city. The stepped up security is just a precaution. Mayor Michael Bloomberg says a terror attack on public transit anywhere in the world serves as a warning.

Other train-related news. In Chicago, where they are back on track, a subway line there is up and running today. They had a frightening rush hour accident there yesterday. A train derailed and caused a fire underground. Hundreds of commuters had to make their way through a dark, smoke-filled tunnel. Our Keith Oppenheim is in Chicago with more on the accident and the aftermath today.

Keith, hello.

KEITH OPPENHEIM, CNN CORRESPONDENT: Hello, Daryn.

And the morning commute seems to be going pretty well this morning, despite some disruptions from what happened yesterday afternoon. First I want to show you this video, Daryn, that we got from overnight. You can see the commuter train that caught fire in a subway tunnel. It's being pulled out of that tunnel. And the last car, the eighth car, is somewhat charred from smoke and fire.

It was around 5:00 yesterday afternoon that this subway train that was heading out towards O'Hare Airport caught fire when the last car derailed and then smoke filled a subway tunnel. There were about 1,000 people who were on that train and they had to walk about 300 yards to safety out of the tunnel into an emergency exit. Fortunately, no lives lost. There were about 150 people who were taken to nearby hospitals. Two, we are told, are still in critical condition.

But, Daryn, keep in mind, as far as anyone can tell at this point, this was not terrorism. So from the point of view of commuters today, it's like hearing about any accident that you might hear when traveling. It makes people a bit rattled, but they don't feel that they have been attacked.

Back to you.

KAGAN: Right. But they had to be thinking that yesterday given what had happened earlier in the day in India.

OPPENHEIM: Well, they didn't know. And until people had a better sense of it, they were not relieved while this was all going on. There were probably a good three hours from 5:00 to 8:00 where news folks, as well as the public, were trying to sort just what this was. But, fortunately, it appears to have been an accident.

Now I say that somewhat cautiously because we're going to hear from the National Transportation Safety Board later perhaps and they'll give details, at least preliminary ones, as to why this train might have derailed.

KAGAN: All right, Keith Oppenheim live in Chicago, we look forward to that news conference. It is a fire emergency and the fight is on. They're dealing with strong winds, dry conditions and a raging wildfire. Coming up on LIVE TODAY, we're heading live to the southern California desert.

And the secretary of defense makes a surprise visit. Iraqi police make a shocking discovery, a message of progress amid a backdrop of gruesome violence. This is CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: Let's get back to India now. There is new evidence in the Mumbai train explosions. Police say they have found timers and pencils at three of the seven blast sites. Those timers are believed to have been detonating the bombs which were made of RDX, which is one of the most powerful military explosives. Just a short time ago authorities raised the death toll there to more than 185. Joining me from Washington to discuss who might have orchestrated the coordinated attacks, Dana Dillon, foreign Pentagon intelligence and foreign policy specialist now with The Heritage Foundation's Asian Studies Center.

Dana, good morning.

DANA DILLON, ASIAN STUDIES CENTER, HERITAGE FOUNDATION: Good morning, Daryn.

KAGAN: Any clues that to who might be responsible for these attacks?

DILLON: Well, given the history of the region, one would expect it would probably be Islamic terrorists. There's a large or long history of Islamic terrorism in the region, especially cross-border terrorism from Pakistan, although that's been recently kind of cleaned up under the Musharraf regime. But there's certainly a long history of it there. There's some -- a lot of tensions between the Muslim and Hindu populations in that region. So Muslim terrorism seems to be the most likely.

KAGAN: And I want to get to Pakistan in just a minute. But first, when this was unfolding yesterday and we were seeing these series of attacks, Mumbai being a financial center, I couldn't help but think al Qaeda.

DILLON: Right. That's actually the first thing that occurred to me as well. You know, the similarity to the London bombings, the similarity tot he Madrid bombings and other bombings like the one planned in New York against transportation systems, during rush hour, on, you know, innocent people, major financial hubs of countries, these were all signs to me that it would be an al Qaeda. But there's also copycat organizations as well.

KAGAN: Does it surprise you that no one has claimed responsibility?

DILLON: Well, that also seems to be kind of an al Qaeda habit is to not claim responsibility. It could be that the organization doesn't want to for one reason or another. But, yes, it does surprise me they haven't claimed anything yet.

KAGAN: Let's focus more about a point you were just getting to about what this could mean for the region in there. Now things have improved a little bit, Pakistan, India, recently, as you were saying, under President Musharraf. In fact, he came out within hours of this happening and condemned the attacks. But this, if it's spun the wrong way, could have some negative fallout.

DILLON: That's right. As I said earlier, before 2001 there was a number of terrorist groups that operated from Pakistan and attacked in India, particularly in Kashmir mostly, but elsewhere in India as well. And Musharraf has worked very hard to try to clean up those terrorist groups and stop the cross-border attacks. And, as a result, there has been two and a half years now since October 2003 a peace cease fire along the line of control, which is the boarder between Pakistan and India.

And this has resulted in a lot of things. India and Pakistan have agreed to a moratorium on nuclear tests. They've agreed to let each other know if they do long range missile tests. There's been a lot of really good things that have come from this peace deal between -- or dialogue between India and Pakistan. And if India believes that Pakistan -- a terrorist group or a group operating from Pakistan is involved in this attack, it could have serious consequences for that dialog.

KAGAN: Looking forward, we're just days away from the G-8 Summit in St. Petersburg, Russia. We often see a big attack like this right before an international meeting.

DILLON: Well, yes, that's right. They want to bring attention to themselves. That's the point of these attacks, is to bring attention to their cause, which also makes you wonder why they haven't announced -- the group, in particular, hasn't announced what they've done. But certainly if it is al Qaeda, they want to prove that they're still around and they have to be dealt with. Although it could be a group that has spontaneously arisen similar to what happened in London as well.

KAGAN: Interesting points. Dana Dillon from The Heritage Foundation, thank you for your time.

DILLON: Thank you, Daryn.

KAGAN: And now on to the fight for Iraq. Violence surging in Iraq and so does the death toll. The bodies of 20 people were found earlier today and they're believed to be victims of today's kidnapping at a nearby bus station. The armed gunmen seized a mix of two dozen civilians and bus drivers. Also today, nine more Iraqis died in the capital. Seven were killed by a suicide bomber, two others by a car bomb. Across the country, more than 100 people have died in violence since the weekend.

Well, his visit was a surprise, his message is not. Defense Secretary Donald Rumsfeld calls for patience in his unannounced visit to Iraq. Rumsfeld indicated that troop withdrawals will have to wait until insurgent violence is reined in and two days of bloodshed underline that message. Our senior international correspondent Nic Robertson in Baghdad first to tell us more about Rumsfeld's visit.

Hello.

NIC ROBERTSON, CNN CORRESPONDENT: Hello, Daryn.

Well, as always, when somebody of Donald Rumsfeld's senior level arrives in Iraq, it happens without any advance warning. That's for security reasons. The first place the secretary of defense visited was a large U.S. military base in Balad 50 miles north of Baghdad. He met with about 700 troops there. He got a standing ovation as he went in to meet them.

He also answered a lot of their questions. The questions went on for quite some time. We understand he was asked about new military equipment. We know how in the past that has been a contentious subject, some of these question and answer sessions with troops with the secretary of defense. He was asked about Iraqi security by the troops.

Reporters along with Donald Rumsfeld asked him when U.S. troops could pull out, when Iraqis were ready to stand up and do the job alone. He said he didn't have an answer for that. That didn't depend on him. That depended on events on the ground and Iraqi.

He's come to Baghdad now to meet with the prime minister, Nuri al-Maliki. We understand they'll be discussing the security situation in Baghdad, given the violence over the weekend and the ongoing violence. Also discussing the issue of militias who are believed to have been behind some of that very sectarian violence over the weekend.

Daryn.

KAGAN: Let's talk a little bit about that violence over the last 24 hours, Nic, if you could be more specific about that.

ROBERTSON: Again, a lot of it focused on Baghdad. So much of the violence we see centered on the city here. A car bomb went off in the center of the city earlier in the day. Two people were killed. Two were wounded. But the most vicious attack in the capital came in a restaurant. We're seeing restaurants featured now in more of the targeting plan of insurgents. A suicide bomber walked into a restaurant, we don't know why this restaurant was chosen but it was in the south of Baghdad, seven killed, 20 wounded.

But perhaps the most vicious attack of the day, Muqdadiyah, about 60 miles northeast of Baghdad, there insurgents rounded up about 24 people at a bus station early in the morning at about 8:00. About five hours later, police discovered 20 bodies. They are believed to be some of those people who were rounded up at the bus station. They're believed to be a mix of civilians and bus drivers as well. Muqdadiyah, which is where this happened, has been pretty much of a center of an intense security operation in the last few days. In fact, I was on that operation just over the weekend, Daryn.

KAGAN: We'll look forward to more of your reports on that. Nic Robertson live from Baghdad, thank you.

As we move on, President Bush in the air and on a mission. Mr. Bush traveling abroad to shore up alliances and discuss growing nuclear concerns. We are live from Germany just ahead.

Also, Gerri Willis with a message for you, especially if you're an older worker looking for a job.

GERRI WILLIS, CNN CORRESPONDENT: Hey, Daryn, good to see you.

Boomers unite. How to fight to keep your paycheck and your retirement dollars flowing. "Five Tips" is coming up next.

(COMMERCIAL BREAK)

KAGAN: Well, the stock market's been open almost an hour. Things, you know, not a lot happening so far. The techs are putting a little pressure on the market. The Dow down 26 points. The Nasdaq also headed south, but not much. About half of a percentage point down nine points.

Here we are midway through another work week and who doesn't daydream of those, hmmm, blissful days of retirement. And when the day comes, will you be unwilling to retire? Half of all baby boomers say they plan to continue working past age 65. Our personal finance editor Gerri Willis offers her "Top Five Tips" on what you need to know about that.

Good morning, Ger.

GERRI WILLIS, CNN CORRESPONDENT: Hey, Daryn, good to see you.

You know, some people get squeezed out of their jobs. Some people decide to leave early. But what you can do if you need the money to keep flowing in, you can start your own business. Get some free advice on how to do just that with a local non-profit group called S.C.O.R.E. It stands for service corps of retired executives. They can be contacted at 800-634-0245. There's also the National Association for the Self-Employed at nase.org.

KAGAN: And how can you make your age work for you instead of against you, Gerri?

WILLIS: Well, you can break that gray ceiling. Look, if you're looking for a job, it's going to take you longer than younger people. It takes someone over 50 about seven weeks longer to find a job than a younger worker. But you can still make your age work for you. Do not list everything on your resume you've ever done. If you were captain of the swim team in 1969, not necessary.

KAGAN: Good for you.

WILLIS: Yes. List only the most recent experiences that apply to the job you are trying to land and summarize your successes in order of importance. It's also a good idea to get those technical skills up to speed. Take a computer course at a local college or a library.

KAGAN: Well, and here's the good news. There are employers out there who are actively looking for senior workers.

WILLIS: That's right and there are a lot of them. And it's not just, you know, going to the Wal-Mart, right. Go to the AARP's website. They have a list of companies that are actively recruiting seniors -- aarp.org. You can also check out seniorjobbank.org. This is a website specifically for job seekers over 50.

KAGAN: But what do you do think you're being discriminated against?

WILLIS: This happens and these discrimination lawsuits are really difficult to prove but here are the red flags to watch for. First off, if you were turned down for an internal promotion and a younger outsider was hired for the job, you may have a case. Secondly, if your responsibilities are cut in half. And finally, another red flag, your boss doesn't invite you to meetings that you used to attend, that's a problem. Now if you have a complaint, you have to file it within six months of the alleged discrimination. Call the Equal Employment Opportunity Commission, that's the EEOC, at 1- 800-669-4000.

KAGAN: Some people might be tempted to think, well, there is Social Security.

WILLIS: Yes, there is Social Security. But if you take it early, it really messes up your benefits. You'll ultimately get less. It's reported the typical baby boomer loses as much as 30 percent of its social security check by taking those benefits early. Delaying your benefits by even one year, Daryn, will give you an 8 percent increase in benefits.

And we want to remind people out there, if you have questions, what's on your mind today? You have a money question? Send us that e-mail to 5tips@cnn.com. And if you missed anything at all, go to the website, cnnmoney.com/fivetips

KAGAN: All right, Gerri, thank you.

WILLIS: You're welcome.

KAGAN: We go to southern California were a fire emergency is on, so is the fight. Strong winds, dry conditions and a raging wildfire. Coming up on LIVE TODAY, we head to the southern California desert.

And why Mumbai? A look at what makes India's commercial capital a prime target for terrorists. That's ahead on CNN, the most trusted name in news.

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