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CNN Live At Daybreak

Martha Stewart Facing Justice; Wildfires Taking a Huge Toll Out West

Aired July 16, 2004 - 05:00   ET

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

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


FREDRICKA WHITFIELD, CNN ANCHOR: Martha Stewart facing justice. Her time has come. Sentencing is this morning.
It's Friday, July 16, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.

Now in the news, the question this morning -- will the home fashion queen, Martha Stewart, go to jail? Five hours from now, Stewart appears before the federal judge in Manhattan. She's being sentenced for lying about a stock sale. Stewart was convicted last March.

A tragic story at a school in southern India at this hour. A fast moving fire has killed at least 50 children and injured more than 30 at a girls' school.

The International AIDS Conference in Bangkok has just ended. Former South African President Nelson Mandela, one of the final speakers, urged world leaders to commit to bringing the deadly disease under control.

Back on the fire line this morning, near Carson City, Nevada, a wildfire has burned 7,100 acres, including 20 homes. About 600 homeowners were ordered to leave the area.

Keeping you informed, CNN, the most trusted name in news.

Good morning to you -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Fredricka.

Actually, that fire out near Carson City is -- I've been watching some video of it -- it's just completely out of control. So we're going to have more on that, though, as we go on.

WHITFIELD: It's so dry there.

MYERS: Absolutely. Well, it's been dry for five years. Literally they have been in a five, in some spots, seven year drought out there.

(WEATHER REPORT) WHITFIELD: Well, the time has come for Martha Stewart. It's been more than four months since she was found guilty of conspiracy and lying to investigators. Five hours from now, she will be sentenced.

But as Chris Huntington reports, even while facing the possibility of prison, Stewart has been anything but a shrinking violet.

(BEGIN VIDEOTAPE)

MARTHA STEWART, MARTHA STEWART LIVING FOUNDER: I'm a true believer in the due process of law.

CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): Martha Stewart may be headed for prison, but she's holding her head up high, and in a very public way.

Last month she attended the New York premiere of "Fahrenheit 9/11." In May she made it to the Daytime Emmy Awards, looking and sounding confident.

STEWART: I'm a believer in American justice.

HUNTINGTON: In April, it was a front-row box seat at the Yankees' home opener.

For the past several months, while her lawyers unsuccessfully pushed for a mistrial, Stewart has kept up a dizzying social calendar, particularly out in the Hamptons at the Eastern end of Long Island, where the rich, famous and socially ambitious rub elbows and where Stewart is a society fixture.

JASON NIXON, "HAMPTONS MAGAZINE": She's present, but she's not gripping and grinning as much. What do we expect? That she's going to be wearing a scarlet letter and putting herself into the convent?

I say great. It shows a real strength of character and conviction that she's out there, putting herself forward.

HUNTINGTON: Practicing what she is famous for preaching, Stewart has also been getting her house in order, literally. This week she once again put on the market her duplex apartment in this trendy, celebrity-packed glass tower in Manhattan. She paid more than $6 million before it was built in 2000 but never moved in.

And she's also putting her financial house in order, selling more than $4.5 million worth of her own company's stock in mid-June, the first time she's ever cashed out of the business she founded.

(END VIDEOTAPE)

WHITFIELD: Coming up later on "AMERICAN MORNING," will Martha Stewart's public appearances have an effect on her sentencing? Former Stewart media adviser, Lanny Davis, will answer that question, coming up at 8:00 Eastern on "AMERICAN MORNING." Wildfires are again taking a huge toll out West. One of the worst blazes swept through a luxury neighborhood in Nevada, leaving more than a dozen families homeless and forcing hundreds of others to evacuate.

We get more now from CNN's Ted Rowlands in Carson City, Nevada.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): The fire, which started early Wednesday morning, has now consumed more than 10,000 acres. At least 20 homes have burned. People say as the flames approached, they took what they could and got out.

This woman lost her home.

NORMA JEAN BEST, LOST HER HOME: Well, I'm not mad. I'm very sad. But I don't know.

ROWLANDS: Hundreds of firefighters from around the region have been called in to help control the wind driven blaze. But they say the weather conditions are making their job very difficult.

SCOTT HUNTLEY, FIRE INFORMATION OFFICER: The weather is very dry. The humidity is very low. So we're not getting any breaks in this fire. There are some breaks, though, because we did save a lot of homes last night.

ROWLANDS: A late afternoon wind shift forced the closure of Highway 395, the main road into and through Carson City. Dozens of people forced out of their homes, some of them crying, sat with packed cars watching the flames move closer.

MATTHEW MURDOCK, EVACUEE: We got like a carload. We didn't really think that it was going to get that bad, so we just took a few things. We probably could have taken a few more things now that we know.

DAVID BRUKETTA, EVACUEE: It's hard. It's emotional. You know, it's just, my house, my life is back there. But, you know, I've got my kids and my family and that's the important thing.

ROWLANDS (on camera): While investigators say they don't know if it was intentional or not, they say they do know that somebody or a group of people set this fire, possibly a group of teenagers in the area. The hope is that Mother Nature will help the some 900 firefighters here with their job overnight.

Ted Rowlands, CNN, Carson City, Nevada.

(END VIDEOTAPE)

WHITFIELD: And now a total of nine fires are burning inside Yosemite National Park. Firefighters believe all nine were started by lightning strikes two weeks ago. The fires are growing and have already burned nearly 2,000 acres. Hikers had to evacuate from the areas where the fires were advancing.

CNN has learned that the final report of the commission looking into the 9/11 terrorist attacks will propose significant changes for intelligence agencies. The report is being made public next week. It's expected to include a complete overhaul of the nation's intelligence community. But two commissioners who spoke with CNN are not giving details.

Well, here are some stories making news across America this Friday.

It was a false alarm for a Southwest Airlines plane traveling from Houston to Baltimore. The pilot activated an in flight emergency system after several passengers became ill during the flight. Hazmat teams met the plane but found nothing out of the ordinary. Doctors say one of the passengers had a stomach virus. That caused at least three others to suffer what's being called "sympathy nausea."

Residents of one Pennsylvania neighborhood are still picking through the debris to see what's left of their homes. That tornado that passed through Campbelltown on Wednesday brought winds in excess of 175 miles per hour. As many as 50 homes were damaged by high winds and flying debris.

The State of Pennsylvania wants some money back from Chi Chi's Restaurant. The "Pittsburgh Post Gazette" reports that the restaurant chain is being billed for more than 10,000 hepatitis shots. Last year, an outbreak of Hepatitis A was blamed on green onions served at Chi Chi's near Pittsburgh. The final bill for the prevention shots is more than $146,000.

Less than two hours ago, news of a horrific and deadly fire in southern India. At least 50 schoolchildren are dead, more than 30 hurt.

Live now to New Delhi and our bureau chief there, Satinder Bindra -- Satinder.

SATINDER BINDRA, CNN CORRESPONDENT: Fredricka, this death toll has now climbed to 75. And we are told by district officials that at least 28 children have been rushed to hospitals, where their condition is described as serious.

This fire started in the southern Indian city of Kumbakonam, in a girls' school. Now, we understand from local officials that the fire started in the kitchen of the school and then quickly spread to the school's roof, which was made mainly of bamboo staffs and coconut leaves. This entire roof, after catching fire, collapsed and dozens and dozens of screaming children obviously found it very difficult to get out.

As things stand now, a complete rescue operation is under way. This fire has now been put out and the bodies of several children have been extracted and taken to the local morgue, where parents are trying to identify the remains of their children. Local authorities are promising a full investigation, Fredricka, and they're also promising to take the strictest possible action against anyone found negligent. As things stand now, officials say this death count is going to rise -- back to you.

WHITFIELD: And, Satinder, the death toll is rising. It's so high. Is this because these children were trapped in this school?

BINDRA: That's right, Fredricka. There was no way these children, many of them as young as seven or eight years old, to really get out of the school. That entire roof collapsed on them and earlier there was talk that perhaps there was no proper fire escape.

But even with a fire escape, officials saying because the entire roof collapsed, it would have been very difficult for these children to get out.

Television channels here, Fredricka, are continuing to run with the story and obviously it's a huge tragedy in this country of one billion people -- back to you.

WHITFIELD: And you mentioned, Satinder, that the fire likely started in the kitchen.

Do they have anything more than that as to what in the kitchen may have sparked this?

BINDRA: Fredricka, obviously it's very early yet. A full investigation has to be launched. But preliminary reports from the scene suggested there could have been an electrical short-circuit. Now, some local officials continue to talk about it, but obviously we have to wait for the outcome of the inquiry before saying something absolutely concrete on this.

WHITFIELD: So far the death toll 75 and rising.

Satinder Bindra, thank you very much for that report.

Still much more ahead on CNN DAYBREAK this Friday morning.

We'll tell you how changing the definition of obesity may eventually change the waistlines of millions of Americans.

Also, Tony Blair did it. So did Ronald Reagan. Will President Bush? We'll look at how a politician says I'm sorry.

And as Martha Stewart awaits her fate, we'll take a look at some other infamous power brokers who've taken a fall.

(COMMERCIAL BREAK)

WHITFIELD: The Kerry-Edwards campaign has accepted the presidential debate schedule. The Commission on Presidential Debates still needs to hear from the Bush-Cheney campaign. The schedule calls for three presidential debates and one face-off between Edwards and Cheney. Once the Bush camp agrees to the schedule, negotiations will begin to select topics and formats.

Just two little words -- I'm sorry. But somehow those seem to be the two hardest words to say in Washington.

CNN's Tom Foreman takes a look at the politics of contrition.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): When a British report on Iraq came out this week, outlining intelligence failures in the run-up to war, Prime Minister Tony Blair was on the spot. And the Kerry campaign quickly pointed out how President Bush's friend and ally handled it.

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: What Tony Blair said was, "I take full responsibility for the mistakes."

FOREMAN: but if Democrats think this will make George Bush apologize for the war, they could be waiting awhile. Apologies here are political dynamite.

JONATHAN TURLEY, GEORGE WASHINGTON UNIVERSITY: Oh, yes!

FOREMAN: Jonathan Turley is a law professor at George Washington University.

TURLEY: If you do it right, people can take you to their breast, hug you like one of their own. If you do it wrong, they'll never forget it.

RICHARD NIXON, FORMER PRESIDENT OF THE UNITED STATES: I don't believe that I warrant it, because I'm not a crook.

FOREMAN: Bad apologies and good ones are hard to define but easy to recognize.

Ronald Reagan gained public support when he owned up to the arms for hostage deal.

RONALD REAGAN, FORMER PRESIDENT OF THE UNITED STATE: I take full responsibility for my own actions and for those of my administration.

FOREMAN: Of course, technically, what Reagan offered was not an apology, which fully admits guilt, but rather than an apologia, an explanation for an apparent mistake. It is a distinction which Turley says was not lost on Bill Clinton.

TURLEY: He knew that people loved the confessant. They loved the penitent man. But they don't often forgive the guilty man. So he developed a way to confess without admitting to anything, and people loved him for it.

KEVIN KLINE, ACTOR: Apologize.

JOHN CLEESE, COMEDIAN: All right, all right, I apologize.

KLINE: You're really sorry?

CLEESE: I'm really, really sorry. I apologize unreservedly.

KLINE: You take it back?

FOREMAN: The problem is in movies and life, there a down side to even good apologies.

(on camera): If the politician waits too long when an apology is due, it can seem forced and dishonest when it comes, but leaders who say "I'm sorry" too soon appear weak.

FATHER JOHN LANGAN, GEORGETOWN UNIVERSITY: Then there are other cases where an apology is a fairly desperate maneuver. Because everything else has been tried and efforts of concealment, efforts of denial have just failed to work.

FOREMAN (voice-over): No wonder in Washington, the apology has become an art form, practiced by many and mastered by few.

(END VIDEOTAPE)

WHITFIELD: And those the details of the proposed presidential debate schedule on our Web site, cnn.com.

Your news, money, weather and sports.

It is now 17 minutes after the hour.

And here's what's all new this morning.

In the latest move to try to save a Filipino truck driver from being beheaded, the Philippine government is recalling the leader of its humanitarian contingent in Iraq and 10 more of its members today.

A former U.S. soldier who allegedly deserted to North Korea 40 years ago plans to go to Japan on Sunday for medical treatment. Once there, he could be handed over to the U.S. for court martial.

In money, the House has approved a $16 -- a, rather, $19.5 billion foreign aid bill. It provides money for the world's poor and military assistance for U.S. allies in Iraq and the war on terror. The bill now goes to the Senate.

In culture, the American Red Cross is issuing an urgent call for blood donations. Officials say parts of the country have less than one day's supply.

In sports, the Lakers shelled out big bucks to keep Kobe Bryant. Bryant resigned with the Lakers for a little more than $136 million over seven years.

And, Chad, it should be no surprise because Kobe Bryant said it was always his dream to stay and play with the L.A. Lakers and that's where he wants to end his career.

MYERS: That's nice.

WHITFIELD: Yes, I can tell you're very excited about his new deal.

MYERS: I am not.

Good morning, everybody.

(WEATHER REPORT)

WHITFIELD: Well, upbeat earnings reports didn't help Wall Street's stock.

Let's see what's happening in the overseas markets.

For that, we turn to our Jim Boulden, checking the financial numbers for us from London -- good morning to you, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Good morning, Fredericka.

Yes, those numbers out of the U.S., IBM and Apple, have certainly helped the tech stocks here in Europe. We'll get to those in a minute.

But you can see here, the four main markets in Europe are very mixed. We're not seeing much action ahead of the inflation numbers that were going to kind of come out of the U.S. later today. People here are very keen to see what the June CPI, the Consumer Price Index, see how much stuff you Americans are buying and how much you've paid for it. And when we see that number, we'll see what Mr. Greenspan might do about the U.S. Federal Reserve's interest rates and then we might see some movement on these markets.

But right now, a mixed bag, indeed.

Let's look at those tech stocks, though, for a minute. Nokia, you might remember Nokia, the big hand set maker for mobile phones, for cell phones, down 12 percent yesterday. Nokia said it's cutting prices to try to get its market share back up. It also said that it had a weak outlook for the second half of this year. Nokia down another 2 percent in Finland.

But the rest of the tech numbers are rebounding because of IBM's very good quarterly results and also Apple's results, saying that the iPod, indeed, is helping them.

So you can see, Fredricka, a mixed bag here on the tech stocks because we're not exactly sure what these bad numbers from Nokia and Intel might mean -- back to you.

WHITFIELD: All right, we'll be watching that.

Thanks a lot, Jim.

A bold move by the government. How obesity is a step closer to being classified as a disease. Also, amid car bombings, Saddam in prison and a new government, Iraqis try to get back to normal in some way. A live report in the next half hour of DAYBREAK.

(COMMERCIAL BREAK)

WHITFIELD: After 40 years of insisting that being overweight is not an illness, the U.S. government is changing its definition of obesity. Medicare and Medicaid programs will now classify obesity as a medical problem. The change opens the door for the government to pay for treatments like gastric bypass surgery and diet programs. Health and Human Services Secretary Tommy Thompson announced the change, calling the obesity a critical public health issue. A national panel will soon begin investigating a range of obesity treatments.

Well, other health headlines this morning. Illinois is the first state that will allow a person with HIV to become an organ donor for others with the virus. Current federal rules require organs from infected patients to be discarded. But law makers say allowing the donations could help extend many lives.

Eat your vegetables, but make sure they're the right ones. Researchers say eating broccoli and tomatoes together can offer better protection against certain kinds of cancer than eating either veggie by itself.

Doctors studying prostate cancer found that combining broccoli and tomatoes maximized their cancer fighting effects.

Well, kids who watch TV are more likely to be smokers and obese as adults. That's the finding of a New Zealand study, which tracked 1,000 people from birth to age 26. The study found that watching just two hours of TV a day increased health risks.

The 15th International AIDS Conference in Thailand is wrapping up. Delegates from around the world gathered for the meeting, where science is taking a back seat to politics.

CNN's Aneesh Raman joins us on the phone now from Bangkok with the details -- good morning to you, Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Good morning, Fredricka.

That's right, the conference coming to an end. The closing ceremony just wrapping up. At that ceremony, we've heard from former South African President Nelson Mandela. Mandela really calling upon the world to contribute more money and show more leadership. He made that plea, though, not just to global leaders, but to the larger global community, really saying that no contribution was too small, no action insignificant.

Mandela really hitting home the point that we all share a common bond with those suffering with AIDS.

(BEGIN VIDEO CLIP) NELSON MANDELA, FORMER SOUTH AFRICAN PRESIDENT: We share a common humanity with our brothers and sisters suffering in this epidemic. Ask yourself what you can do as global citizens in the fight against HIV and AIDS. We must never forget our own responsibilities.

(END VIDEO CLIP)

RAMAN: Now, Fredricka, this brings to an end a week that has been really void of any sort of major medical announcement. The conference has largely been defined by activism. We've had almost daily protests. Those protesters largely focused upon President Bush's $15 billion AIDS initiative that was announced January of 2003. Criticism pretty much very high this week from, you know, you had French President Jacques Chirac, you had British International Development Minister Gareth Thomas, all coming out saying that the Bush administration needs to invest more of that money toward generic drugs, so not just exclusively on high cost brand name drugs. So a lot of activism here. Not much science. But a large goal was met just getting the world to talk about AIDS -- Fredricka.

WHITFIELD: Now, Aneesh, you said no real earth shattering announcements.

But perhaps what was the most significant promise or finding coming out of the conference?

RAMAN: Well, I think there was a lot of hope that maybe there would be some sort of consensus, especially on Bush's $15 billion initiative. I think that the larger issue that will be resolved is just that there is a dialogue now on this, that we've had almost 17 months since President Bush announced his plan and there really hasn't been much talk of it in the global community.

So this week really focused the world's attention onto AIDS, onto the areas that need improvement. And the participants, the 15,000 plus delegates, can only hope that this dialogue continues after the conference ends -- Fredricka.

WHITFIELD: Aneesh Raman in Thailand.

Thanks very much.

For more on this or any other health story, head to our Web site. The address is cnn.com/health.

And here's what's ahead next hour.

Judgment day for Martha Stewart. Next, our legal analyst tells us what the domestic diva can expect.

Plus, threatening homes and businesses -- an explosive wildfire barrels through Nevada. Details straight ahead.

And they can clean, cut grass and perform other every day tasks. How close are we to becoming a robotic world? A reality check later on DAYBREAK.

(COMMERCIAL BREAK)

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Aired July 16, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Martha Stewart facing justice. Her time has come. Sentencing is this morning.
It's Friday, July 16, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.

Now in the news, the question this morning -- will the home fashion queen, Martha Stewart, go to jail? Five hours from now, Stewart appears before the federal judge in Manhattan. She's being sentenced for lying about a stock sale. Stewart was convicted last March.

A tragic story at a school in southern India at this hour. A fast moving fire has killed at least 50 children and injured more than 30 at a girls' school.

The International AIDS Conference in Bangkok has just ended. Former South African President Nelson Mandela, one of the final speakers, urged world leaders to commit to bringing the deadly disease under control.

Back on the fire line this morning, near Carson City, Nevada, a wildfire has burned 7,100 acres, including 20 homes. About 600 homeowners were ordered to leave the area.

Keeping you informed, CNN, the most trusted name in news.

Good morning to you -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Fredricka.

Actually, that fire out near Carson City is -- I've been watching some video of it -- it's just completely out of control. So we're going to have more on that, though, as we go on.

WHITFIELD: It's so dry there.

MYERS: Absolutely. Well, it's been dry for five years. Literally they have been in a five, in some spots, seven year drought out there.

(WEATHER REPORT) WHITFIELD: Well, the time has come for Martha Stewart. It's been more than four months since she was found guilty of conspiracy and lying to investigators. Five hours from now, she will be sentenced.

But as Chris Huntington reports, even while facing the possibility of prison, Stewart has been anything but a shrinking violet.

(BEGIN VIDEOTAPE)

MARTHA STEWART, MARTHA STEWART LIVING FOUNDER: I'm a true believer in the due process of law.

CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): Martha Stewart may be headed for prison, but she's holding her head up high, and in a very public way.

Last month she attended the New York premiere of "Fahrenheit 9/11." In May she made it to the Daytime Emmy Awards, looking and sounding confident.

STEWART: I'm a believer in American justice.

HUNTINGTON: In April, it was a front-row box seat at the Yankees' home opener.

For the past several months, while her lawyers unsuccessfully pushed for a mistrial, Stewart has kept up a dizzying social calendar, particularly out in the Hamptons at the Eastern end of Long Island, where the rich, famous and socially ambitious rub elbows and where Stewart is a society fixture.

JASON NIXON, "HAMPTONS MAGAZINE": She's present, but she's not gripping and grinning as much. What do we expect? That she's going to be wearing a scarlet letter and putting herself into the convent?

I say great. It shows a real strength of character and conviction that she's out there, putting herself forward.

HUNTINGTON: Practicing what she is famous for preaching, Stewart has also been getting her house in order, literally. This week she once again put on the market her duplex apartment in this trendy, celebrity-packed glass tower in Manhattan. She paid more than $6 million before it was built in 2000 but never moved in.

And she's also putting her financial house in order, selling more than $4.5 million worth of her own company's stock in mid-June, the first time she's ever cashed out of the business she founded.

(END VIDEOTAPE)

WHITFIELD: Coming up later on "AMERICAN MORNING," will Martha Stewart's public appearances have an effect on her sentencing? Former Stewart media adviser, Lanny Davis, will answer that question, coming up at 8:00 Eastern on "AMERICAN MORNING." Wildfires are again taking a huge toll out West. One of the worst blazes swept through a luxury neighborhood in Nevada, leaving more than a dozen families homeless and forcing hundreds of others to evacuate.

We get more now from CNN's Ted Rowlands in Carson City, Nevada.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): The fire, which started early Wednesday morning, has now consumed more than 10,000 acres. At least 20 homes have burned. People say as the flames approached, they took what they could and got out.

This woman lost her home.

NORMA JEAN BEST, LOST HER HOME: Well, I'm not mad. I'm very sad. But I don't know.

ROWLANDS: Hundreds of firefighters from around the region have been called in to help control the wind driven blaze. But they say the weather conditions are making their job very difficult.

SCOTT HUNTLEY, FIRE INFORMATION OFFICER: The weather is very dry. The humidity is very low. So we're not getting any breaks in this fire. There are some breaks, though, because we did save a lot of homes last night.

ROWLANDS: A late afternoon wind shift forced the closure of Highway 395, the main road into and through Carson City. Dozens of people forced out of their homes, some of them crying, sat with packed cars watching the flames move closer.

MATTHEW MURDOCK, EVACUEE: We got like a carload. We didn't really think that it was going to get that bad, so we just took a few things. We probably could have taken a few more things now that we know.

DAVID BRUKETTA, EVACUEE: It's hard. It's emotional. You know, it's just, my house, my life is back there. But, you know, I've got my kids and my family and that's the important thing.

ROWLANDS (on camera): While investigators say they don't know if it was intentional or not, they say they do know that somebody or a group of people set this fire, possibly a group of teenagers in the area. The hope is that Mother Nature will help the some 900 firefighters here with their job overnight.

Ted Rowlands, CNN, Carson City, Nevada.

(END VIDEOTAPE)

WHITFIELD: And now a total of nine fires are burning inside Yosemite National Park. Firefighters believe all nine were started by lightning strikes two weeks ago. The fires are growing and have already burned nearly 2,000 acres. Hikers had to evacuate from the areas where the fires were advancing.

CNN has learned that the final report of the commission looking into the 9/11 terrorist attacks will propose significant changes for intelligence agencies. The report is being made public next week. It's expected to include a complete overhaul of the nation's intelligence community. But two commissioners who spoke with CNN are not giving details.

Well, here are some stories making news across America this Friday.

It was a false alarm for a Southwest Airlines plane traveling from Houston to Baltimore. The pilot activated an in flight emergency system after several passengers became ill during the flight. Hazmat teams met the plane but found nothing out of the ordinary. Doctors say one of the passengers had a stomach virus. That caused at least three others to suffer what's being called "sympathy nausea."

Residents of one Pennsylvania neighborhood are still picking through the debris to see what's left of their homes. That tornado that passed through Campbelltown on Wednesday brought winds in excess of 175 miles per hour. As many as 50 homes were damaged by high winds and flying debris.

The State of Pennsylvania wants some money back from Chi Chi's Restaurant. The "Pittsburgh Post Gazette" reports that the restaurant chain is being billed for more than 10,000 hepatitis shots. Last year, an outbreak of Hepatitis A was blamed on green onions served at Chi Chi's near Pittsburgh. The final bill for the prevention shots is more than $146,000.

Less than two hours ago, news of a horrific and deadly fire in southern India. At least 50 schoolchildren are dead, more than 30 hurt.

Live now to New Delhi and our bureau chief there, Satinder Bindra -- Satinder.

SATINDER BINDRA, CNN CORRESPONDENT: Fredricka, this death toll has now climbed to 75. And we are told by district officials that at least 28 children have been rushed to hospitals, where their condition is described as serious.

This fire started in the southern Indian city of Kumbakonam, in a girls' school. Now, we understand from local officials that the fire started in the kitchen of the school and then quickly spread to the school's roof, which was made mainly of bamboo staffs and coconut leaves. This entire roof, after catching fire, collapsed and dozens and dozens of screaming children obviously found it very difficult to get out.

As things stand now, a complete rescue operation is under way. This fire has now been put out and the bodies of several children have been extracted and taken to the local morgue, where parents are trying to identify the remains of their children. Local authorities are promising a full investigation, Fredricka, and they're also promising to take the strictest possible action against anyone found negligent. As things stand now, officials say this death count is going to rise -- back to you.

WHITFIELD: And, Satinder, the death toll is rising. It's so high. Is this because these children were trapped in this school?

BINDRA: That's right, Fredricka. There was no way these children, many of them as young as seven or eight years old, to really get out of the school. That entire roof collapsed on them and earlier there was talk that perhaps there was no proper fire escape.

But even with a fire escape, officials saying because the entire roof collapsed, it would have been very difficult for these children to get out.

Television channels here, Fredricka, are continuing to run with the story and obviously it's a huge tragedy in this country of one billion people -- back to you.

WHITFIELD: And you mentioned, Satinder, that the fire likely started in the kitchen.

Do they have anything more than that as to what in the kitchen may have sparked this?

BINDRA: Fredricka, obviously it's very early yet. A full investigation has to be launched. But preliminary reports from the scene suggested there could have been an electrical short-circuit. Now, some local officials continue to talk about it, but obviously we have to wait for the outcome of the inquiry before saying something absolutely concrete on this.

WHITFIELD: So far the death toll 75 and rising.

Satinder Bindra, thank you very much for that report.

Still much more ahead on CNN DAYBREAK this Friday morning.

We'll tell you how changing the definition of obesity may eventually change the waistlines of millions of Americans.

Also, Tony Blair did it. So did Ronald Reagan. Will President Bush? We'll look at how a politician says I'm sorry.

And as Martha Stewart awaits her fate, we'll take a look at some other infamous power brokers who've taken a fall.

(COMMERCIAL BREAK)

WHITFIELD: The Kerry-Edwards campaign has accepted the presidential debate schedule. The Commission on Presidential Debates still needs to hear from the Bush-Cheney campaign. The schedule calls for three presidential debates and one face-off between Edwards and Cheney. Once the Bush camp agrees to the schedule, negotiations will begin to select topics and formats.

Just two little words -- I'm sorry. But somehow those seem to be the two hardest words to say in Washington.

CNN's Tom Foreman takes a look at the politics of contrition.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): When a British report on Iraq came out this week, outlining intelligence failures in the run-up to war, Prime Minister Tony Blair was on the spot. And the Kerry campaign quickly pointed out how President Bush's friend and ally handled it.

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: What Tony Blair said was, "I take full responsibility for the mistakes."

FOREMAN: but if Democrats think this will make George Bush apologize for the war, they could be waiting awhile. Apologies here are political dynamite.

JONATHAN TURLEY, GEORGE WASHINGTON UNIVERSITY: Oh, yes!

FOREMAN: Jonathan Turley is a law professor at George Washington University.

TURLEY: If you do it right, people can take you to their breast, hug you like one of their own. If you do it wrong, they'll never forget it.

RICHARD NIXON, FORMER PRESIDENT OF THE UNITED STATES: I don't believe that I warrant it, because I'm not a crook.

FOREMAN: Bad apologies and good ones are hard to define but easy to recognize.

Ronald Reagan gained public support when he owned up to the arms for hostage deal.

RONALD REAGAN, FORMER PRESIDENT OF THE UNITED STATE: I take full responsibility for my own actions and for those of my administration.

FOREMAN: Of course, technically, what Reagan offered was not an apology, which fully admits guilt, but rather than an apologia, an explanation for an apparent mistake. It is a distinction which Turley says was not lost on Bill Clinton.

TURLEY: He knew that people loved the confessant. They loved the penitent man. But they don't often forgive the guilty man. So he developed a way to confess without admitting to anything, and people loved him for it.

KEVIN KLINE, ACTOR: Apologize.

JOHN CLEESE, COMEDIAN: All right, all right, I apologize.

KLINE: You're really sorry?

CLEESE: I'm really, really sorry. I apologize unreservedly.

KLINE: You take it back?

FOREMAN: The problem is in movies and life, there a down side to even good apologies.

(on camera): If the politician waits too long when an apology is due, it can seem forced and dishonest when it comes, but leaders who say "I'm sorry" too soon appear weak.

FATHER JOHN LANGAN, GEORGETOWN UNIVERSITY: Then there are other cases where an apology is a fairly desperate maneuver. Because everything else has been tried and efforts of concealment, efforts of denial have just failed to work.

FOREMAN (voice-over): No wonder in Washington, the apology has become an art form, practiced by many and mastered by few.

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WHITFIELD: And those the details of the proposed presidential debate schedule on our Web site, cnn.com.

Your news, money, weather and sports.

It is now 17 minutes after the hour.

And here's what's all new this morning.

In the latest move to try to save a Filipino truck driver from being beheaded, the Philippine government is recalling the leader of its humanitarian contingent in Iraq and 10 more of its members today.

A former U.S. soldier who allegedly deserted to North Korea 40 years ago plans to go to Japan on Sunday for medical treatment. Once there, he could be handed over to the U.S. for court martial.

In money, the House has approved a $16 -- a, rather, $19.5 billion foreign aid bill. It provides money for the world's poor and military assistance for U.S. allies in Iraq and the war on terror. The bill now goes to the Senate.

In culture, the American Red Cross is issuing an urgent call for blood donations. Officials say parts of the country have less than one day's supply.

In sports, the Lakers shelled out big bucks to keep Kobe Bryant. Bryant resigned with the Lakers for a little more than $136 million over seven years.

And, Chad, it should be no surprise because Kobe Bryant said it was always his dream to stay and play with the L.A. Lakers and that's where he wants to end his career.

MYERS: That's nice.

WHITFIELD: Yes, I can tell you're very excited about his new deal.

MYERS: I am not.

Good morning, everybody.

(WEATHER REPORT)

WHITFIELD: Well, upbeat earnings reports didn't help Wall Street's stock.

Let's see what's happening in the overseas markets.

For that, we turn to our Jim Boulden, checking the financial numbers for us from London -- good morning to you, Jim.

JIM BOULDEN, CNN CORRESPONDENT: Good morning, Fredericka.

Yes, those numbers out of the U.S., IBM and Apple, have certainly helped the tech stocks here in Europe. We'll get to those in a minute.

But you can see here, the four main markets in Europe are very mixed. We're not seeing much action ahead of the inflation numbers that were going to kind of come out of the U.S. later today. People here are very keen to see what the June CPI, the Consumer Price Index, see how much stuff you Americans are buying and how much you've paid for it. And when we see that number, we'll see what Mr. Greenspan might do about the U.S. Federal Reserve's interest rates and then we might see some movement on these markets.

But right now, a mixed bag, indeed.

Let's look at those tech stocks, though, for a minute. Nokia, you might remember Nokia, the big hand set maker for mobile phones, for cell phones, down 12 percent yesterday. Nokia said it's cutting prices to try to get its market share back up. It also said that it had a weak outlook for the second half of this year. Nokia down another 2 percent in Finland.

But the rest of the tech numbers are rebounding because of IBM's very good quarterly results and also Apple's results, saying that the iPod, indeed, is helping them.

So you can see, Fredricka, a mixed bag here on the tech stocks because we're not exactly sure what these bad numbers from Nokia and Intel might mean -- back to you.

WHITFIELD: All right, we'll be watching that.

Thanks a lot, Jim.

A bold move by the government. How obesity is a step closer to being classified as a disease. Also, amid car bombings, Saddam in prison and a new government, Iraqis try to get back to normal in some way. A live report in the next half hour of DAYBREAK.

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WHITFIELD: After 40 years of insisting that being overweight is not an illness, the U.S. government is changing its definition of obesity. Medicare and Medicaid programs will now classify obesity as a medical problem. The change opens the door for the government to pay for treatments like gastric bypass surgery and diet programs. Health and Human Services Secretary Tommy Thompson announced the change, calling the obesity a critical public health issue. A national panel will soon begin investigating a range of obesity treatments.

Well, other health headlines this morning. Illinois is the first state that will allow a person with HIV to become an organ donor for others with the virus. Current federal rules require organs from infected patients to be discarded. But law makers say allowing the donations could help extend many lives.

Eat your vegetables, but make sure they're the right ones. Researchers say eating broccoli and tomatoes together can offer better protection against certain kinds of cancer than eating either veggie by itself.

Doctors studying prostate cancer found that combining broccoli and tomatoes maximized their cancer fighting effects.

Well, kids who watch TV are more likely to be smokers and obese as adults. That's the finding of a New Zealand study, which tracked 1,000 people from birth to age 26. The study found that watching just two hours of TV a day increased health risks.

The 15th International AIDS Conference in Thailand is wrapping up. Delegates from around the world gathered for the meeting, where science is taking a back seat to politics.

CNN's Aneesh Raman joins us on the phone now from Bangkok with the details -- good morning to you, Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Good morning, Fredricka.

That's right, the conference coming to an end. The closing ceremony just wrapping up. At that ceremony, we've heard from former South African President Nelson Mandela. Mandela really calling upon the world to contribute more money and show more leadership. He made that plea, though, not just to global leaders, but to the larger global community, really saying that no contribution was too small, no action insignificant.

Mandela really hitting home the point that we all share a common bond with those suffering with AIDS.

(BEGIN VIDEO CLIP) NELSON MANDELA, FORMER SOUTH AFRICAN PRESIDENT: We share a common humanity with our brothers and sisters suffering in this epidemic. Ask yourself what you can do as global citizens in the fight against HIV and AIDS. We must never forget our own responsibilities.

(END VIDEO CLIP)

RAMAN: Now, Fredricka, this brings to an end a week that has been really void of any sort of major medical announcement. The conference has largely been defined by activism. We've had almost daily protests. Those protesters largely focused upon President Bush's $15 billion AIDS initiative that was announced January of 2003. Criticism pretty much very high this week from, you know, you had French President Jacques Chirac, you had British International Development Minister Gareth Thomas, all coming out saying that the Bush administration needs to invest more of that money toward generic drugs, so not just exclusively on high cost brand name drugs. So a lot of activism here. Not much science. But a large goal was met just getting the world to talk about AIDS -- Fredricka.

WHITFIELD: Now, Aneesh, you said no real earth shattering announcements.

But perhaps what was the most significant promise or finding coming out of the conference?

RAMAN: Well, I think there was a lot of hope that maybe there would be some sort of consensus, especially on Bush's $15 billion initiative. I think that the larger issue that will be resolved is just that there is a dialogue now on this, that we've had almost 17 months since President Bush announced his plan and there really hasn't been much talk of it in the global community.

So this week really focused the world's attention onto AIDS, onto the areas that need improvement. And the participants, the 15,000 plus delegates, can only hope that this dialogue continues after the conference ends -- Fredricka.

WHITFIELD: Aneesh Raman in Thailand.

Thanks very much.

For more on this or any other health story, head to our Web site. The address is cnn.com/health.

And here's what's ahead next hour.

Judgment day for Martha Stewart. Next, our legal analyst tells us what the domestic diva can expect.

Plus, threatening homes and businesses -- an explosive wildfire barrels through Nevada. Details straight ahead.

And they can clean, cut grass and perform other every day tasks. How close are we to becoming a robotic world? A reality check later on DAYBREAK.

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