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American Morning

Castro Cedes Power; Crisis in the Middle East

Aired August 01, 2006 - 06:00   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody. It is Tuesday, August 1. I'm Soledad O'Brien.
RICK SANCHEZ, CNN ANCHOR: And I'm Rick Sanchez in for Miles O'Brien.

Here's a look at what's happening this morning.

O'BRIEN: A change in Cuba, Fidel Castro has temporarily handed over power to his brother, Raul. He's apparently getting treatment for intestinal problems. Fidel Castro has been Cuba's leader for 47 years. He's 79 years old. His brother, Raul, is 75.

SANCHEZ: Three car bombings in Iraq today killed at least 35 people. Most of the victims were Iraqi soldiers. Violence against Iraqi forces is rising as the government tries to control insurgents and sectarian violence as well.

O'BRIEN: Israel is now approving an expansion of its ground campaign against Hezbollah in Lebanon. Israeli Prime Minister Ehud Olmert says there will not be a cease-fire over the next few days. Israeli forces are now pushing deeper into Hezbollah territory.

And Syria is getting ready for a possible spread of the conflict. President Bashar Assad told his Army to increase its readiness. He says he is determined to support Hezbollah.

SANCHEZ: The National Guard has met today's deadline for getting 6,000 troops on the border. About half that number are actually on duty along the U.S.-Mexican border, the rest are supporting training roles at this point.

O'BRIEN: And it's checkup time for President Bush. The president gets his annual physical today. He is 60 years old. His only complaints are occasional acid reflux and stiffness in his knees. The president keeps in good shape by mountain biking.

SANCHEZ: The nomination of a new FDA commissioner could get help today. Some senators want a decision first on over-the-counter sales of the Morning After pill also known as Plan B.

O'BRIEN: Going to be extremely hot in the eastern states today. A heat emergency already in effect here in New York, temperatures expected to go over 100 degrees today. And a record amount of power will be needed to keep air conditioners running.

SANCHEZ: And that brings us to Chad Myers. CHAD MYERS, CNN METEOROLOGIST: Hi, Rick.

You know the best thing you probably could do today before you leave your house is turn the thermostat warmer so that the air conditioner doesn't run the whole time you're at work. So that people that do need the air conditioner, like your business or your office, does have power the whole day. And then when you get home, then you can turn it back down again.

One of those set-back thermometers works great, but you can do it manually just the same moving it up and down, because there's going to be some problems with power in the east today. You just can't have this much heat and humidity, like we have today. The temperature in New York is going to be 100, but it's going to feel like 112. The air is just full of humidity. Your body can't sweat. When it does sweat, it doesn't evaporate, so you don't cool off when your body's natural air conditioner doesn't really work.

(WEATHER REPORT)

Back to you guys.

O'BRIEN: All right, Chad, thank you.

We're going to start with that sudden announcement today that Cuban dictator Fidel Castro has ceded power, at least for the time being. Castro's 75-year-old brother, Raul, the current Vice President, will take over now. The elder Castro is set to turn 80 this month and he announced that he had to undergo surgery for intestinal bleeding.

Let's get right to CNN's Shasta Darlington. She's in Havana this morning, joins us by phone.

Shasta, good morning.

Looks like we do not have her by phone. Let's get right back to see if she can hear us.

Shasta Darlington is in Havana this morning for us.

Shasta, can you hear me?

SHASTA DARLINGTON, CNN CORRESPONDENT: I can now, yes.

O'BRIEN: Terrific. Update us on the latest in Cuba please.

DARLINGTON: Yes. Well last night Cuban President Fidel Castro's private secretary came on television in a surprise announcement to say that Castro was temporarily stepping down while he recovered from an intestinal operation. He's handed the reins over to his younger brother, Raul. Now the shock announcement was broadcast repeatedly on state television.

Castro took power in 1959 at the time of the Cuban Revolution. His younger brother, Raul, at his side. So he's always been there. But still, this is the first time that Castro has even temporarily handed over the reins, despite some recent health issues, including a nasty fall that left his knee shattered.

And basically this has Cubans wondering what's going to happen next. They are going on with their regular routines. People will be going to work this morning. They want to sort of maintain an environment of calm, of normalcy, but there is definitely a lot of concern in the air. People wondering really what state of health Fidel Castro is in -- Soledad.

O'BRIEN: Yes, not just Cubans wondering that, lots of people watching from our shores too wondering what's going to happen to Fidel Castro. How does -- you know there have been rumors before that -- many times before, frankly, that he's died. Is there a sense in Cuba today that this is -- he is on death's door, that he is very ill? Is there a sense that this is just yet another sort of run of ill health for the Cuban president?

DARLINGTON: This is definitely being taken very seriously. Again, this is the first time he's stepped down. He is a 79-year-old man. He's in good condition for a 79-year-old man. He still stands up on a stage and can talk for two, three, four hours without even a sip of water, and he did that less than a week ago. But it's taking its toll and that's part of the reason he's had to undergo this surgery. He himself in his statement said that it was the stress of the -- of a recent trip to South America, of all of these public appearances that caused internal bleeding.

And now there is no real indication when he's going to step back in. What he said is he needs several weeks to recover. He's -- on the other hand, he's postponed his birthday celebrations, which were set for August 13, until December. So we're really just going to have to wait and see -- Soledad.

O'BRIEN: Shasta Darlington for us this morning from Havana.

Shasta, thanks -- Rick.

SANCHEZ: Turning now to a significant development in the Middle East crisis, it's likely that more Israeli troops could pour into the southern Lebanon border. The Israeli Security Cabinet calls for a major expansion of its ground offensive. More reservists are being called up, we understand.

We got reaction from both sides of the border on this story. We're going to begin with CNN's Paula Hancocks. She is following the story from Jerusalem.

It sounds like a planned escalation. Is it, -- Paula?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Rick, this is actually what we heard from the Israeli Defense Minister Amir Peretz on Monday morning. He said that he wanted an expanded operation to go into -- deeper into Lebanon to try and clear Hezbollah from that northern Israeli-southern Lebanon border. And then in the early hours of Tuesday, they did in fact approve that. The Security Cabinet saying, yes, you can go further into Lebanon and you can continue these operations.

Now it's interesting, because just four days ago, the military commanders asked for just this, this military operation to be expanded, and the politicians said no. But they did say that they could call up to 15,000 reservists up if they were needed. So of course this shows that things have changed a little bit. The political situation has changed.

Condoleezza Rice says she thinks she can get a U.N. resolution on an international force to be put into southern Lebanon some point this week. So the Israeli military is realizing that they are running out of time to be able to degrade Hezbollah's ability to attack Israel. So this is obviously the reason why they are now thinking that they need to step up this operation.

Now Ehud Olmert, the Israeli Prime Minister, was talking to the people last night on Monday evening saying that he apologized to the Lebanese people for the Israeli airstrikes, but it was Hezbollah's fault that this was happening and Israel really had no alternative but to strike back against Hezbollah.

(BEGIN VIDEO CLIP)

EHUD OLMERT, ISRAELI PRIME MINISTER (through translator): We are fighting terrorists who know no bounds. War against them will not be stopped by us until we drive them from the borders.

(END VIDEO CLIP)

HANCOCKS: Now Olmert also said Hezbollah has been dealt a heavy blow and is suffering. But of course we are seeing very fierce fighting on the ground at this point in certain areas in southern Lebanon.

And also even though there's this 48-hour suspension of airstrikes from Israel, we have seen a lot of airstrikes from Israel. They say they are just because they want to make sure their ground troops are protected and they only carry out an airstrike if they think Israel is under threat. But of course 2:00 a.m. Wednesday morning local time will be the time when that particular suspension runs out. So it will be interesting to see what happens, especially as the operation has been approved to be expanded now -- Rick.

SANCHEZ: So today is the second day. There is reason to believe that they will be honoring that promise not to bomb throughout the day, or will they? What are you hearing?

HANCOCKS: Well for the past 24 hours they have been carrying out airstrikes. They have been saying that it's only when it's absolutely necessary. So we are expecting probably continued airstrikes. But just a partial suspension is now being called by the Israeli military, saying that it's only if their ground troops need cover and it's only if they see a potential threat on the ground. If they see a rocket launcher about to be set up, if they see rockets about to be launched into northern Israel, then that's when they say they will attack. But of course they made another mistake on Monday. We saw a car full of Lebanese Army officials, one was killed, others were injured. That was attacked by an Israeli Air Force airstrike. The Israeli Air Force apologizing, saying they thought it was full of Hezbollah militants. So we have seen a decrease in the airstrikes, but they are still ongoing -- Rick.

SANCHEZ: Yes.

Paula Hancocks following that story for us from Jerusalem.

We thank you so much, Paula.

Now from reaction of this apparent escalation from the other side, the Lebanese side.

Anthony Mills is in Beirut. He is joining us live now.

Anthony, what's the word there?

ANTHONY MILLS, CNN CORRESPONDENT: Rick, there's been no official reaction to this apparent preparation for an increased ground force, Israeli ground force inside south Lebanon. But a short while ago I spoke to a high-ranking government official here. And I asked him what his position was on that. And in particular, what role, if any, the Lebanese Army would play in responding to an increased Israeli ground troop presence in southern Lebanon. He said that the Lebanese Army would defend itself in positions where it is located.

And I asked him if that meant that it would coordinate with Hezbollah, which of course really runs south Lebanon, having filled a vacuum there when Israeli troops pulled out in May of 2000. And he said not officially. And I said well what about unofficially. And he said that was a possibility -- quote -- "we share the same enemy" -- end of quote.

And I think that obviously a reference to Israel, saying that the Lebanese Army and Hezbollah see Israel as a common foe and therefore, despite the fact that Israel and the United States have asked Lebanon's government to get its Army to crackdown on Hezbollah, the opposite might occur.

That, of course, echoing statements made by Lebanon's prime minister in the course of this -- sorry, Lebanon's president in the course of this conflict, Emile Lahud. President Emile Lahud also saying that the Lebanese Army would defend Lebanon in the face of a large-scale invasion.

And as for public opinion, public response, well there's been skepticism throughout the course of this about any quick end to fighting. And I think the Lebanese public will see this as simply a natural continuation.

SANCHEZ: Anthony Mills following this story for us from Beirut.

We thank you so much, Anthony. We certainly will be getting back to you -- Soledad.

O'BRIEN: Happening this morning.

British Prime Minister Tony Blair is scheduled to give what's being called a major foreign policy speech in Los Angeles today. Yesterday, Mr. Blair and California Governor Arnold Schwarzenegger announced a joint partnership against global warming. The agreement will explore ways to promote clean burning fuels and curb greenhouse gas emission.

Also in L.A., a new investigation under way into the 1997 murder of Notorious B.I.G. The new probe follows a wrongful death lawsuit filed by the rapper's mother who claims rogue police officers were involved in the killing. Six veteran L.A. homicide detectives are now on the case.

Tennessee's minister's wife charged with murdering her husband will likely stay behind bars for now. The judge refused to lower the $750,000 bond for Mary Winkler. Winkler has been in jail since late March. Authorities say the couple had been fighting over money before he was shot.

In Massachusetts, a Brazilian couple accused of performing illegal cosmetic surgeries now facing charges after a female patient died. The woman died after she had liposuction in the basement of their home. Investigators say they may file manslaughter or murder charges, depending on the autopsy results.

SANCHEZ: Boy, here's a story a lot of people all over the country are talking about, actor/director Mel Gibson is in rehab this morning.

O'BRIEN: That's not Mel Gibson there on the screen there.

SANCHEZ: No, it was not. It's not, but it will be. As a matter of fact, there was a new picture that was just put out by police.

O'BRIEN: The mug shot?

SANCHEZ: The mug shot.

O'BRIEN: Yes.

SANCHEZ: Just came out.

O'BRIEN: He looks all right in the mug shot. I mean some stars look much worse in their mug shot, you've got to admit, right? Come on, this is not a horrible mug shot.

SANCHEZ: Looks perfectly fine, as a matter of fact,...

O'BRIEN: Kind of.

SANCHEZ: ... considering what we -- what is being alleged here.

Now, he did check himself in following Friday's arrest on suspicion of drunk driving. The L.A. Police Department did release the mug shot last night that we have been talking about. Gibson apparently made some anti-Semitic and some sexist comments during the arrest for which he has apologized officially.

The sheriff's deputy who arrested him had this quote. He says, "I don't take pride in hurting Mr. Gibson. What I had hoped out of this is that he would think twice before he gets behind the wheel of a car and was drinking. That would be my hope that this would accomplish that. I don't want to ruin his career. I don't want to defame him in any way or hut him."

We will certainly have more on this story as the show continues.

And a little bit after 6:00 a.m. on the East Coast. It's already hollering 80 degrees in New York City.

O'BRIEN: Can you believe this?

SANCHEZ: It was amazing. When I woke up this morning and I went to walk over to the car, it was like...

O'BRIEN: Baking.

SANCHEZ: Yes. Yes, at 4:00 a.m. no less.

O'BRIEN: Yes, it's a bad sign for the rest of day, really, if you think about it.

SANCHEZ: We're going to be checking on the forecast for you.

O'BRIEN: Also, how these machines are supposed to make air travel a whole lot safer, a whole lot easier. We'll explain what they are, how they work just ahead.

SANCHEZ: And then later, cracking down on illegal immigration, thousands of extra National Guard troops patrolling the border. Is the operation working though?

O'BRIEN: And Carrie Lee has business headlines.

Good morning, -- Carrie.

CARRIE LEE, CNN CORRESPONDENT: Good morning. Good morning to everyone.

A controversial prescription drug may soon be available over-the- counter. We'll have that story and an early morning market check coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Happening this morning.

Cuban President Fidel Castro has temporarily handed over power to his brother, Raul. Castro is undergoing treatment for intestinal problems. He's been Cuba's leader for nearly five decades. Israel is sending more troops into Lebanon. Israeli Prime Minister Ehud Olmert announced today that there will be no cease-fire soon. His troops are expanding their efforts on the ground to push Hezbollah out of southern Lebanon.

And the killer heat wave has moved east. Excessive heat warnings are up in Washington and New York and Boston. Dozens of recent deaths have been blamed on the intense heat across the country.

Brings us right to Chad Myers this morning, he's at the CNN Weather Center.

Good morning, Chad. Nice and toasty warm this morning. It's only 6:17 here.

MYERS: All right. I know. We're almost up to our normal high.

O'BRIEN: Yes.

MYERS: Yes, and the sun really isn't even over the horizon heating you up yet.

(WEATHER REPORT)

Back to you guys.

SANCHEZ: I thought you were going to say open the refrigerator door and stand in front of it.

O'BRIEN: He rarely gives that advice.

MYERS: No, that's wasting energy.

O'BRIEN: Yes. No, no, that wouldn't be good.

SANCHEZ: Which I suppose would work as well, right?

O'BRIEN: No, no, no, it wouldn't.

MYERS: Not really.

O'BRIEN: I'm not a meteorologist, but I even know, no.

SANCHEZ: It's going to be that hot, folks.

Well, listen, still to come, CNN's exclusive behind-the-scenes look at the new baggage security system. This is offering post 9/11 security but with much less hassle. We'll explain.

Also, the so-called Morning After pill may soon be available without a prescription.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Take a look at some of the most popular stories right now on CNN.com.

Cuban leader Fidel Castro handing over power for the first time in nearly 50 years. Castro apparently is undergoing surgery to repair intestinal bleeding. His brother, Raul Castro, is taking over temporarily.

Republican Senator Chuck Hagel breaking with the Bush administration, he is now calling for an immediate cease-fire in the Middle East and direct talks with Iran and Syria.

And Mel Gibson is in rehab. That word comes from his publicist. There's been a swirl of controversy of course in the wake of the actor's arrest on suspicion of drunk driving and then of course the anti-Semitic tirade that is reported to have followed. Talk more about that story throughout the morning.

SANCHEZ: Now let's do this. Let's check some of the business headlines. And a small stumble, we understand, for the stock market.

Carrie Lee, what do you know?

LEE: A little bit of a stumble. Well we saw such nice gains last week, so probably a little bit of profit taking. But at the finish yesterday, the Dow, Nasdaq, S&P all losing a little bit of ground, the Dow down about 34 points. Of course a lot of people focusing on the Federal Reserve meeting next Tuesday, whether we'll see another interest rate hike, get some clues beyond that. Right now it is looking like another bit of a weak start on Wall Street this Tuesday morning.

Also, Barr Pharmaceutical, nice gains yesterday, up about 1.9 percent at the finish after very nice gains intraday. What's happening here is the drug company makes a Morning After pill. Well there's now a chance that that prescription drug will be available over-the-counter for women age 18 and up. The stock shot up, as I said, yesterday. Company officials now meeting with the FDA to talk about that and the company's chief says if the drug is available over- the-counter, sales of that prescription, well it wouldn't be a prescription anymore, but sales would double. So that's the latest on Barr.

And then finally oil prices hanging around $75 a barrel. Mideast worries of course continuing. Also, we have some heat waves in the U.S. and Europe, most people aware of that. And there are also some fears that a small pipeline leak in Russia could hurt oil supply. Natural gas prices, by the way, also at their highest level in six months. Soledad and Rick, hot weather increasing demand for electricity.

O'BRIEN: No surprise there.

LEE: And today and I think on Wednesday as well it's supposed to get even hotter.

O'BRIEN: Yes.

LEE: So hopefully we won't see too many outages.

O'BRIEN: The whole week it's supposed to be a mess.

LEE: Yes.

SANCHEZ: Yes, that means gas prices could get even higher, is that what you're alluding to?

LEE: It can. Well natural gas, electricity, a little bit more of a direct correlation.

SANCHEZ: Yes.

LEE: But it is pretty much all interrelated, yes.

SANCHEZ: As if they could get any higher, right?

LEE: Can always go up.

O'BRIEN: Yes, they can.

LEE: They can always go up, right.

SANCHEZ: Thanks, -- Carrie Lee.

LEE: Sure.

O'BRIEN: Thanks, Carrie.

Morning's top stories are straight ahead, including the stunning news from Cuba that President Fidel Castro is handing power to undergo emergency surgery. We're live from Havana this morning.

Plus Israel is expanding its ground campaign against Hezbollah guerrillas in Lebanon. We've got the very latest on the war in the Middle East when AMERICAN MORNING returns.

(COMMERCIAL BREAK)

O'BRIEN: Happening this morning.

A change in Cuba, Fidel Castro temporarily handing over power to his brother, Raul, as he gets treatment for intestinal problems. Castro has been Cuba's leader for 47 years. He turns 80 later this month.

Israel is now approving an expansion of its ground campaign against Hezbollah in Lebanon. Israeli Prime Minister Ehud Olmert says there will not be a cease-fire over the next few days. Israeli forces are now pushing deeper into Hezbollah territory.

It's going to be hot in the Eastern U.S. today. A heat emergency is already in effect in New York. Temperatures are expected to go over 100 degrees and a record amount of power will be needed to keep air conditioners running.

Morning. Welcome back, everybody. I'm Soledad O'Brien.

SANCHEZ: And I'm Rick Sanchez in for Miles O'Brien in a hot New York.

O'BRIEN: Yes, it is hot, and it's going to get hotter, apparently. We're going to check in with Chad in just a few moments.

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