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CNN Live Today

Kidnapping Arrests; Crisis In The Middle East; Lieberman Loses; Gerri's Top Tips

Aired August 09, 2006 - 10:00   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: That's it. We're out of time. Let's get right to Daryn. She's at the CNN Center. Going to be with you for the next couple of hours.
Good morning again, Daryn.

DARYN KAGAN, CNN CORRESPONDENT: Good morning to you guys in New York City. You have a great day.

TONY HARRIS, CNN ANCHOR: Yes, you too.

OB: You too.

KAGAN: We already have a lot of news to get to here in our next two hours together. We will have the latest on the fight between Israel and Hezbollah, as we look at these live pictures. This is Lebanon, the Lebanese capital, shelling already underway. We will have the latest on that in just a minute.

First, though, we want to get to breaking news out of Iraq. Suspects arrested in the kidnapping of U.S. journalist Jill Carroll. Let's go live to Baghdad and our Harris Whitbeck with this break in the case.

Harris, hello.

HARRIS WHITBECK, CNN CORRESPONDENT: Hello, Daryn.

General William Caldwell, who is the spokesperson for the multinational force in Iraq, made the announcement today. He said the four suspects were actually detained a month ago. But he did go into some detail as to how a unit on the ground near Fallujah came across the house where Jill Carroll is alleged to have been held.

(BEGIN VIDEO CLIP)

GEN. WILLIAM CALDWELL, MULTINATIONAL FORCE IN IRAQ SPOKESMAN: Troops on the ground, young Marines and Sailor, paid attention to what may have been considered minor details at the time. Ultimately, the four kidnappers were detain and several intelligence-driven operations that took place between Fallujah and Baghdad. Marines from the 1st Marine expeditionary force were able to identify the location at which we believe Jill Carroll was held, approximately 13 kilometers west of Fallujah.

(END VIDEO CLIP) WHITBECK: Apparently those troops on the ground stemming from the arrests they made there got information that led them to three other houses they believe were also used to hold Jill Carroll during her 82- day-long ordeal here in Iraq.

Meanwhile, we have news relating to a U.S. military Blackhawk helicopter that went down this morning. We understand that the search is still on for two of the crew members of that helicopter who have gone missing. The other four crew members who were wounded during that helicopter crash are being treated and are said to be in stable condition.

Daryn.

KAGAN: Let's get back to the Jill Carroll story here for a moment. What happens to these four men now, Harris?

WHITBECK: Well, the military is saying that it is exploring what avenues to pursue in terms of prosecuting them. And they say that they are talking to their Iraqi counterparts -- their counterparts in the Iraqi government and in the Iraqi judicial system.

KAGAN: Yes, it's going to be interesting to see, do they go through the Iraqi judicial system or does the U.S. hold on to them?

WHITBECK: That's right. Well, they did say during the press conference just a few hours ago that they were talking to their Iraqi counterparts. So this brings up the question of crimes being committed in Iraq, in this case against a U.S. citizen, as to where the jurisdiction lies.

KAGAN: It will be interesting. Harris Whitbeck, thank you for that.

Also from the Christian Science Monitor, the was the newspaper that Jill Carroll was working for. They say, "like reporters everywhere, we are reassured to hear that several of those who held Jill have been apprehended. The daily threat of kidnapping in Iraq remains acute for all. Everything possible needs to be done to relieve Iraqis and others of this scourge."

Let's go back to these live pictures we're seeing out of Lebanon. This is Beirut. You can see the bombing continues there. And it leads us into the section where we're going it look at what we know right now in the Middle East.

Israel deciding to expand its ground offensive against Hezbollah. Sources in the prime minister's office say the Israel's security cabinet voted to send troops deeper into Lebanon.

Negotiations over a U.N. resolution to end the fighting intensified. A diplomatic source says France is trying to rework parts of the proposal to overcome Arab objections. A vote not expected at the U.N. before tomorrow.

Day 29 and no letup in the fighting. A Lebanese Red Cross worker says at least five people died in an Israeli air strike in the Bekaa Valley. And Hezbollah fired more rockets into Israel.

Let's go into southern Lebanon, to Tyre. That's where we find our Karl Penhaul where it looks like there are more hostilities taking place there.

Karl.

KARL PENHAUL, CNN CORRESPONDENT: Daryn, yes. Let's take you straightaway to the situation behind me. Positions between four and six miles south of where I am now. And this is the scene of another Israeli bombardment. Principally, in the last few hour, it's been artillery guns, closer down to the border position that have been firing shells into that area. And in the last few minutes, we've also seen a couple of Israeli warplanes on station overhead dumping bombs down there.

Now, this coastal plain region leading up to a hilly ridge there is an area where we've seen, with some frequency over the last couple of days, Hezbollah fighters firing off rockets from positions there. It's not clear whether any of these strikes are actually hitting those targets. Talking to one Lebanese intelligence officer this morning. He said that he believed there had also been Israeli commandos on the ground around some of the villages up on the high ground there, about six miles south of where we are. But he said at every stage, Hezbollah fighters repelled those commandos.

But what that intelligence officer also said was that he thought the bombardment, coupled with these incursions, was part of a wider plan by Israel to soften up that area, possibly for some kind of ground offensive in that region in the coming days.

Daryn.

KAGAN: Well, what about the leaflets they continue to drop in that area?

PENHAUL: There certainly has been another leaflet drop in the course of today. Somewhat different to another a couple of days ago. You'll remember that a couple of days ago, the Israeli warplanes dropped a warning that any vehicles seen on the roads, either in the streets of Tyre or in the roads of south Lebanon, would be tarted because they would be considered as moving around Hezbollah rockets and munitions.

The leaflet today didn't carry any specific threat. It seemed to be part of a wider psychological warfare operation to try to split civilians from Hezbollah militants. And basically what it was saying is that, you know, you guys are under fire now. Parts of Lebanon are burning and it's all because Hassan Nasrallah, the leader of Hezbollah, bit off more than he could chew. Instead of trying to negotiate with Israel, he tried to fight Israel.

Daryn.

KAGAN: Well, and how does that message go over among the people of southern Lebanon? PENHAUL: Certainly the message two days ago, stay in your houses because your vehicles will be destroyed, really did ring home and we have seen very little vehicle traffic on the roads around Tyre. Today's message, though, hey, you know, Hezbollah's bringing all these woes upon you, seems to have been met in certain quarters of the city with division. One of our teams on the ground this morning said that he reported seeing civilians ripping up those leaflets an laughing at them.

Daryn.

KAGAN: All right. Karl Penhaul live from southern Lebanon. Thank you.

Let's go to Jerusalem now. There is important news coming out of the cabinet the Israeli cabinet -- and our John Vause has that.

John.

JOHN VAUSE, CNN CORRESPONDENT: Daryn, a marathon long six hour security cabinet meeting here in Jerusalem. Finally voting to press ahead with a broad ground offensive into southern Lebanon. For what it's worth, nine ministers voting in favor, three abstaining, none opposed.

Essentially what this all means is that right now the Israeli prime minister, Ehud Olmert, and the defense minister, Amir Peretz, have been given the authority to order that wider ground offensive in to southern Lebanon. It does not necessarily mean that it will, but it's a sure bet that it will. The decision and the timing is up to their choosing.

The military says it needs about 30 days to clear southern Lebanon of the Hezbollah rockets which are being fired from Lebanon and on to those Israeli towns and cities in the northern part of the country. But it's also believed that the military wants to push about 13 miles northwards into Lebanon, all the way to the Litani River. It's unclear, though, if that is the final line. Whether they want to go beyond that is still unclear at this stage.

They may not get that 30 days because of the vote which is due to take place soon in the U.N. Security Council, calling for a cease- fire. But right now, Israel, the security cabinet, giving the prime minister and the defense minister the authority to broaden this ground offensive in Lebanon.

Daryn.

KAGAN: And John Vause live in Jerusalem. Thank you for that.

Well, let's go to the United Nations. That's where our senior U.N. correspondent, Richard Roth, is watching developments and a possible vote at some point.

Richard.

RICHARD ROTH, CNN CORRESPONDENT: Yes, Daryn.

Intense negotiations between the United States and France, the two countries not as closely aligned as when the vote on Saturday formerly introduced this resolution to the rest of the United Nations Security Council for approval. France is sticking up more for Lebanon's views and is re-working some parts of this text.

That's a live picture of the Security Council. They'll be a meeting on west Africa, but not at this point any vote expected today on Lebanon.

Earlier today, in France, President Jacques Chirac noted U.S. reservations, but thought that things in Lebanon and the government plans to send troops down to the south should be taken into consideration when planning this resolution.

(BEGIN VIDEO CLIP)

PRES. JACQUES CHIRAC, FRANCE, (through translator): It does indeed seem that today there are reservations on the American side with respect to accepting this draft. I don't want to imagine that there might not be a solution because that would mean that to be the most immoral of solutions, one would be accepting the present situation and give up an immediate cease-fire. So I don't want to imagine that. Neither on the part of the Americans or anyone else.

(END VIDEO CLIP)

ROTH: The U.S. was not that happy here in the negotiations with France's defense of the Lebanon proposals. But the two sides are still talking. They're talking this morning. That Arab delegation is still here in the United Nations after coming in from the Arab league meeting. We talked moments ago to the Qatar deputy prime minister who talked about any plans of a French/American rift that he might have heard of.

(BEGIN VIDEO CLIP)

HAMID BIN JASSIM AL THANI, QUTARI FOREIGN MINISTER: Well, still we are negotiating this. We have a good intention, I have to say, from the French and American. And still we did not have final text, as you know, to say if it's good or take what we said or not. But we will have other meetings today with them and we'll see what we're going to do.

(END VIDEO CLIP)

ROTH: The main difference, Daryn, still is the timing and sequencing of events regarding southern Lebanon and getting troops there to form a buffer zone. The current resolution would still have Israel in place, being told, don't have any offensive operations in mind. While at the same time telling Hezbollah to stop its attacks. The French want the government of Lebanon to be there and get Israel out immediately based upon the wishes of Lebanon and the Arab league.

Back to you. KAGAN: Richard Roth at the U.N. Richard, thank you.

Want to take a look at the latest death toll number from both sides of the border. Israel says 105 of its citizens have died since the conflict began July 12th. Thirty-eight civilians, Israel says, were victims of Hezbollah rockets. In Lebanon, security forces say 800 people have been killed. Most of them civilians. It's unclear how many Hezbollah fighters have died.

We're going to look at news here in the U.S. coming up, including some big political news. Two prominent Democrats go down in defeat. Connecticut voters cut Senator Joe Lieberman loose, but he says he's not out of the race. And in Georgia, the fiery Cynthia McKinney is a big loser last night. What her plans might be. The story, straight ahead.

And a Texas liquor store, a brutal robbery. Ooh, that just hurts to watch. Now there's a new development in this horrifying case. We'll have details coming up on LIVE TODAY. You are watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: Unbelievable. Watch this. What happens at this counter. Oh. With the sound it's even worse. It is jaw-dropping brutality. A Texas liquor store. You'll see the customer grab the bottle and turn to walk away. To put you at ease, let you know that the clerk is OK, but her young grandchildren witnessed that attack. In fact, the robber went on to slam the cash register into the clerk as she lay on the floor bleeding. Police released the surveillance tape and say a tipster led them to the suspect. That 34-year-old man is now charged with attempted capital murder. Brutal.

An update now on a story that you saw unfold live here on CNN at this time yesterday. A construction worker is recovering at a hospital in Phoenix this morning. He was trapped under tons of concrete for nearly eight hours. Part of a concrete facade fell on the man's front loader and that pinned his legs. It's reported that a trauma surgeon stood by to amputate those limbs, if necessary, to save his life. Turns out they didn't need to do that. Doctors say the man is in critical condition after surgery in Phoenix yesterday afternoon.

Well, he says, don't count him out just yet. Angry Connecticut voters deal a tough blow to three-term Senator Joe Lieberman. He lost the Democratic primary to political newcomer Ned Lamont. Lamont took 52 percent of the vote, Lieberman 48 percent. Lieberman's ties to President Bush apparently his undoing. Critics call him a cheerleader for the president and his Iraq War policies.

(BEGIN VIDEO CLIP)

SEN. JOE LIEBERMAN, (D) CONNECTICUT: Well, it was real close. And the good news is, I was closing. Closed more than 10 points from a poll last week. So we're going to just keep on going in that direction and win in November. But why -- it was clear to me all along that this -- that if I had an opponent who had money, at this one did, they could make this or would try to make it into a referendum on George Bush and the Iraq War. Both of which are intensely unpopular among Democrats.

(END VIDEO CLIP)

KAGAN: Lieberman is not going away. He has filed paperwork and he did it this morning to run as an independent. Let's go to Hartford now and CNN's Mary Snow.

So, Mary, how is this going to work?

MARY SNOW, CNN CORRESPONDENT: Well, Daryn, it's putting Democrats in a predicament, particularly here in the states, because they're having, for instance, a unity rally later this morning. And some of the same Democratic leaders who were at the Lieberman headquarters last night are going to be at this rally today with Ned Lamont. Now, many Democrats in Washington this morning saying that they are going to support Ned Lamont. Senate leaders saying that this morning.

So Senator Joe Lieberman had made it clear that he was going to be running as an independent. There had been a lot of pressure for him not to do this, but he is pressing ahead saying, no, no, no, when asked this morning if he would reconsider.

KAGAN: At the end of the day, it often comes down to money in politics, especially big races like this. Does Lieberman have the money it would take to go forward as an independent?

SNOW: He has the money. And also, Daryn, one of the largest voting blocks in this state, independent voters. And if you look at the polls before this race yesterday, all of them put Senator Lieberman as the winner in a three-way race. Also, what so many people have pointed out is that he has a lot of support among Republicans. So in this three-way race, if these polls are consistent, it does seem that he would have a chance of winning, as it stands now, and he does have that money. And millions have been spent, nearly $7 million so far, by the Lieberman campaign just heading up to this primary.

KAGAN: But the blogs have had such a huge influence on what has happened so far. What are they saying this morning about this and Senator Lieberman's plans now to run as an independent?

SNOW: You know, Daryn, this was also a test for the blogs. Many people said, are the blogs just showing passion, kind of yelling from the rooftops or will that passion, talk among one another, be turned into action? And that was riding on last night's election. Ned Lamont clearly has so much support on those blogs. So this is seeing a victory for them.

And many people have been pointing out that back in May, Ned Lamont, who's really trailing in the polls, many said he never would have won this race. So there is a lot of momentum among these bloggers to say that they will take this now to it next step in November.

KAGAN: It will be interesting to watch. Mary Snow is in Connecticut this morning. Mary, thank you.

Another interesting race right here in Georgia. It was a bitter loss for Democratic Congresswoman Cynthia McKinney. She was soundly defeated in a primary runoff by Hank Johnson. He called her an embarrassment. Johnson received nearly 60 percent of the vote to McKinney's 41 percent. Despite her loss, McKinney delivered a fiery concession speech. She sniped at the media and then at electronic voting machines.

(BEGIN VIDEO CLIP)

REP. CYNTHIA MCKINNEY, (D) GEORGIA: Electronic voting machines are a threat to our democracy. So let the word go out. We aren't going to tolerate any more stolen elections.

(END VIDEO CLIP)

KAGAN: And McKinney also took a jab at President Bush, singing along with an anti-Bush song by the singer Pink.

(BEGIN VIDEO CLIP)

MCKINNEY: Tell you about hard work, minimum wage with a baby on the way. Let me tell you about hard work

(END VIDEO CLIP)

KAGAN: McKinney received national attention in March when she scuffled with a U.S. Capitol Policeman. The Justice Department declined to charge her in that case.

Well, they didn't show up at a college campus and now a nationwide lookout for 11 Egyptian students. That's ahead in our "Security Watch."

Also, Hezbollah's Iranian connection. Live to Tehran shortly to connect the dots there.

And Gerri Willis along be along on information on credit cards.

Gerri.

GERRI WILLIS, CNN CORRESPONDENT: Hey there, Daryn.

Is your mailbox full of offers for reward credit cards? We'll help you sort through the options, point base, rebate, frequent flier. There's a ton. My tips are next.

(COMMERCIAL BREAK)

KAGAN: I want to show you these new pictures we're getting in from Lebanon. More shelling continues today in the southern part of country and more hostilities on both sides of the border. This in light of other news. The Israeli cabinet authorizing further ground offensives from Israel into Lebanon. That, of course, contingent upon what happens at the United Nations. And that's where we expect sometime this week the Security Council -- you're looking at live pictures -- Richard Roth telling us they're actually dealing with issues of west Africa right now. But at some point later this week it's possible they will vote on this cease- fire agreement. We're watching all of it and will have the latest for you as it develops.

Meanwhile, the markets have been open almost an hour here in the U.S. in New York City. You can see the Dow is up. And it is up 35 points. But the Nasdaq is working as well. It is up about a percentage point. It is up 21 points.

You know how this works. You use your credit card and you get a reward, cash back, maybe frequent flier miles. Maybe that's changing as we learn in today's edition of Gerri's "Top Tips."

Hi, Gerri.

WILLIS: Hello, Daryn. Good to see you.

KAGAN: Hello. Good to see you.

WILLIS: You know, first off, everyone seems to be getting these credit card offers. Let's take a look at one of these mailings. Now this belongs to -- let's so that.

KAGAN: How about that?

WILLIS: How about that? Pretty surprising there.

KAGAN: Want to show who Darla Kagan is?

WILLIS: Darla's in Atlanta, Georgia. That sounds . . .

KAGAN: That's Darla Kagan.

WILLIS: Oh, my gosh. Right there. It's your dog.

KAGAN: My dog has received three credit card offers from American Express.

WILLIS: So does your dog have a spending problem?

KAGAN: No. Maybe she heard momma has a new job and she's a little concerned and wants to buy her on dog food or something? I don't know. The first one came. I thought, well, whatever. But the third one came this week and I said, Gerri Willis must have this.

WILLIS: Yes. I can't believe that. I mean it's just crazy that your dog is getting credit card offers.

KAGAN: Yes, but she's not going to get it, though. She's going to be a responsible consumer. We are not sending that in.

WILLIS: Paying in cash.

KAGAN: That's it.

WILLIS: That's right.

KAGAN: Cash for the kibble.

WILLIS: All right. OK. Let's get to the advice here. I mean here's what you have to know about the most popular cards. The reward cards. Point based reward programs are scaling back, as we talked about. But we are seeing bigger cash rebates for everyday things like toothpaste and groceries. And, Daryn, a quick note here. If you're looking to transfer your credit card balance to a lower rate credit card, it's going to cost you a lot more. Banks are raising fees and restrictions on these kinds of deals. It's a good thing to know today.

KAGAN: At the end of the day, you at least want to know how you're going to save money.

WILLIS: That's right. You've actually got to cut through the clutter. You probably have had about 72 credit card offers in the last year. And we're not even talking about what your dog got.

KAGAN: That's true.

WILLIS: Let's just look at how this compares historically. Look at the numbers. You can see, 2005, just a ton of offer out there. But the bottom line, Daryn, is that for most people, cash back cards are the way to go. Look, unless you're a business traveler and you travel frequently, you're not likely to charge enough to get a free airline ticket. And points programs really don't represent a great value to the consumer either, according to the experts we talked to.

KAGAN: All right. Well, but you really still need to get out the magnifying glass to figure out the details in all of this.

WILLIS: That's right. With some cards you may have to spend a certain amount before you get the advertised rebate. Other cards may give you a deadline to cash in your points. Now sometimes you'll have to be pro-active and call the company to get your rebate check. Don't forget, merchants can change their policy, and they do, at any time to increase fees or limit rewards and all they have to do is give you a 15-day notice. So the rules are in flux, Daryn.

KAGAN: What kind of power does the consumer have in negotiating all this?

WILLIS: Well, the credit card industry pays up to$200 to acquire each and every customer. That means you have the upper hand here. So use your leverage. You may be able to eliminate some fees by negotiating with your merchant. Here are some websites that let you compare credit card offers, cardratings.com, creditcards.com, cardweb.com. And I should mention, you can always call and ask for a lower rate. I've done that myself. It's very effective.

By the way, I just wanted to mention gas prices, because we've been following this over time. Today the average price for gas nationwide, $3.03. We're still below the record high for gas prices at a little more than $3.05, and that was set right after Hurricane Katrina. And we're going to follow this for you and keep you up to date on those numbers.

And, of course, Daryn, for your viewers and your doggy viewers, if they want to send an e-mail, it's toptips@cnn.com. We answer those questions every Friday right here.

KAGAN: I'll have Darla get right on that. But you answered her question today. And the answer is, no, Darla, you may not have an American Express card.

WILLIS: OK. All right. I'll send her a personal note.

KAGAN: Yes, condolences.

WILLIS: Yes.

KAGAN: Thank you, Gerri.

WILLIS: Thank you, Daryn.

KAGAN: Here's what we know right now as we're at the half hour. Let's check in on the Middle East.

The war may widen. Israeli security officials give the go-ahead to expanding the military offensive. This means troops could go deeper into Lebanon. At the U.N., diplomats are revising a draft resolution designed to stop the fighting. They're hoping for a Security Council vote tomorrow.

Meanwhile, more heavy Israeli shelling and more Hezbollah rocket attacks on day 29 of the conflict. Media reports say a strike killed six family members in Lebanon's Bekaa Valley and Israeli ground forces are battling Hezbollah fighters in two southern Lebanese towns.

Hezbollah may be homegrown, but its support comes from Iran and Syria. Let's get more now on the Iranian connection. Our Aneesh Raman joins me via broadband from the Iranian capital of Tehran.

Aneesh, hello.

ANEESH RAMAN, CNN CORRESPONDENT: Daryn, good morning.

Here in the capital, demonstrations continued. We've seen them on a near daily basis. We have some video from one that took place this morning. A couple of hundred demonstrators

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