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Democratic National Convention Day One Recap; Bush Campaign Manager Reacts To Clinton's Speech; Google's IPO; "Political Pop"

Aired July 27, 2004 - 07:30   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.


BILL HEMMER, CNN ANCHOR: 7:30 here in Boston. Welcome back, everyone. Day two of the Democratic convention. Our special coverage rolls on today here from the FleetCenter. I'm Bill Hemmer.
My colleague, Heidi Collins working things back in New York. Again, good morning, Heidi.

HEIDI COLLINS, CNN ANCHOR: Good morning, Bill.

Also this half hour, we'll look at what the Bush Administration is considering doing about the recommendations from the 9/11 Commission. We will get a report on that as well.

For now, back to you, Bill.

HEMMER: All right, Heidi. The Democrats coming out swinging on night one, working to knock down the Republican agenda piece by piece. Their criticism reached a crescendo when former President Bill Clinton took the podium in prime time, a bit after 10:00 local time last evening.

(BEGIN VIDEO CLIP)

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: The president had an amazing opportunity to bring the country together under his slogan of compassionate conservatism and to unite the world in the struggle against terror.

Instead, he and his Congressional allies made a very different choice. They chose to move that, to use that moment of unity to try to push the country too far to the right and to walk away from our allies.

(END VIDEO CLIP)

HEMMER: Mr. Clinton -- cheered like a rock star, last evening -- his role limited four years ago, but last night declaring himself a foot soldier in the campaign to elect Senator John Kerry as president.

Not far from the FleetCenter in Boston, Republicans establishing a war room to monitor the democratic message and put their own spin on things. Their counteroffensive includes an 11-minute videotape of Senator John Kerry's record that we should see at some point this week.

Bush campaign manager, Ken Mehlman with us from Arlington, Virginia this morning. Good morning, Ken.

KEN MEHLMAN, BUSH CAMPAIGN MANAGER: How are you? Good morning.

HEMMER: Nice to have you.

MEHLMAN: Thanks.

HEMMER: I'm going fine. I want to talk about the video in a moment here. We touched on it a little bit yesterday. Your reaction to Bill Clinton's speech last night?

MEHLMAN: Well, it's obviously always fun to listen to President Clinton speak. One of the things that was interesting last night, was first of all, I think there is a new definition of optimism. And that is to attack with a smile on your face.

We heard a whole lot of baseless attacks last night on the president and on the accomplishments of this country over the last four years. That folks seemed to have smiled when they did it, it still means it's an attack.

The second thing that was interesting about last night, was the only folks talking about John Kerry's record and his plans for the future were Republicans.

I think a lot of Americans wonder how much their taxes are going to go up? They wonder why John Kerry would have voted to send our troops in Iraq but then voted against providing them the body armor they need to succeed?

None of these questions were answered last night, and they're important questions.

HEMMER: He also said, and I'm quoting now from last evening. Here's the former president. He says, "Strength and wisdom are not opposing values."

MEHLMAN: I strongly...

HEMMER: Quite critical of the past almost three-and-a-half years. You strongly what, Ken?

MEHLMAN: I strongly agree with President Clinton. I think strength and wisdom are actually supportive values. That's why our president has worked to bring the world together, to liberate Iraq, to liberate Afghanistan, to turn Pakistan and Libya from nations that previously were supporting terrorists to nations that are allies in the war against terrorism.

That's how we have worked together, on a bipartisan basis, to reform our federal government, to pass the Patriot Act. That's why we have worked together to take an economy that was in recession, and now we have prosperity and recovery. We want to make go even further.

So I think that there was kind of a disconnect between a lot of the attacks you heard and the progress this country has made over the past four years. Maybe that's one of the reasons a new "Washington Post" poll out showing George W. Bush with a double digit advantage over John Kerry, over who's the optimist.

And one of the reasons is because you can't constantly attack and you can't constantly talk down what our country's doing and at the same time be called an optimist.

HEMMER: Ken, also with Teresa Heinz Kerry making headlines here in Boston, also. You're quite familiar with the incident on Sunday, that I am certain.

Is she considered fair game in this campaign, to monitor her comments and respond to them?

MEHLMAN: I think, ultimately, that this election is going to be about the American people. It's not going to be about Senator Kerry, not about President Bush, not about or Mrs. Kerry, not about the first lady.

This election is about what policies and programs are the two leaders going to put forward, and what will their impact be on the American people?

It will be how do we continue to fight this war on terror and take the battle to the enemy? How do we continue creating prosperity in this country? And do you believe the federal government should respect and reflect the values of our communities, or should Washington try to impose its values on the American people?

Those are the questions. I think it's less about what's happening in Washington than what's happening all across our country.

HEMMER: Ken Mehlman from Arlington, Virginia. Ken, thanks for your time.

MEHLMAN: You're welcome.

HEMMER: We'll speak to somebody from your camp every day about this time throughout the week here.

MEHLMAN: Thanks a lot.

HEMMER: Ken, again thanks.

Also another reminder, speakers later tonight include the former rivals of John Kerry, Howard Dean, the former Vermont Governor. Missouri Congressman Dick Gephardt also on the stage tonight.

Stalwart of the Democratic Party, Ted Kennedy, senator from Massachusetts will be there, too. And what many consider to be the rising star, Barack Obama, running for the U.S. Senate out of Illinois.

Ron Reagan, son of the late president, Ronald Reagan, and Teresa Heinz Kerry, the candidate's wife all on the stage later this evening here at the FleetCenter. Back to Heidi again in New York.

COLLINS: All right, Bill, thanks.

It is just about 36 minutes past the hour, now. Time for a look at some of today's other news with Daryn Kagan.

Hi, Daryn.

DARYN KAGAN, CNN ANCHOR: Good morning to you, Heidi.

We begin with President Bush, who happens to be closer to acting on some of the recommendations of the 9/11 Commission. The president discussed a report yesterday for the first time using videoconference with officials at the White House. Among the items taken up by the task force, the possible addition of a National Intelligence Chief.

To the Middle East now: The Palestinian prime minister has agreed to retract his resignation, ending more than a week-long standoff with leader Yasser Arafat.

Meanwhile, two Palestinians were killed in a gun battle with Israeli forces in Gaza City. Israeli military sources say militants were attempting to launch missiles into Israel.

And Israeli Prime Minister Ariel Sharon is expected to approve plans for a rerouted security barrier in the West Bank.

The U.S. has released several French nationals that were held at Guantanamo Bay in Cuba. The French foreign ministry says the detainees were captured in Afghanistan and will be handed over to judicial authorities upon their arrival in Europe. Three other French detainees are still at the U.S. naval base. French officials say they are working on their release.

Here in the U.S., the husband of a missing pregnant woman now has his own attorney. Mark Hacking's family reportedly has hired the lawyer. The attorney says he has been visiting his client daily at the psychiatric hospital, where Hacking has been for a week.

Authorities say Hacking is what they call a person of interest in the case. Meanwhile, police searched an empty dumpster at the hospital, and also went back to a landfill they searched a week ago with cadaver sniffing dogs.

A welcome home for the crew of the USS George Washington in Norfolk, Virginia. After six months in the war zone, the aircraft carrier brought back more than 13,000 sailors.

The George Washington and its air wing conducted more than 7,500 sortie's with more than 1,500 in support of the Iraq war. Welcome home to all of them.

Let's see what the weather is like for their welcome home. Rob Marciano in for Chad Myers today. Good morning.

ROB MARCIANO, CNN METEOROLOGIST: Good morning again, Daryn.

(WEATHER REPORT)

MARCIANO: Most of today should be nice for you up there for Democratic national convention.

HEMMER: We've been warned. Thank you, Rob.

Andy's back in a moment here "Minding Your Business." One of the Net's most popular sites hit a snag yesterday just as it was announcing some really big news, too. That is not good news for them.

Also, "Political Pop" here in Boston. Our panel looks at whether or not John Kerry just had a Dukakis moment. True or not?

Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: And everybody's talking about Google, but how much is it really worth?

And pay millions just for a seat?

Well, Andy Serwer has all of these stories and more "Minding Your Business" this morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you.

COLLINS: Google's worth a whole bunch? Billions.

SERWER: Billions, yes. It's Google, it's infinite.

A lot of head scratching and eye rolling yesterday on Wall Street over Google. First of all, this IPO -- we talked about it yesterday morning. The company could be worth as much as $36 billion. Look at the math here we've got it cooked up for you.

Now what's going on is this company could be worth more than McDonald's, $33 billion; more than Sony, $32 billion. A lot people said, look it just ain't worth it.

Also going on yesterday, a virus shut down Google for as much as five hours. The MyDoom.M virus, that's not good, when you're looking to go public.

And here -- now listen, this is really incredible. Plus, the general counsel of the company, that's the top lawyer, has been notified that he will get an SEC injunction, this relating to work he did at a previous company several years ago.

Not a banner day for the company.

COLLINS: No.

SERWER: And a lot of people wondering what the heck is going on. Let's talk about this seat situation, though. This has to do with Wall Street, not one of these seats right here.

COLLINS: These are priceless.

SERWER: These seats would be priceless. That's right. The price of a seat in the New York Stock Exchange, worth less than the price of a seat on the NYMEX where they trade energy futures. This is unusual. And the reason why this is significant is because the stock market is doldrums, people, in case you haven't noticed.

Meanwhile, energy trading all -- the price of oil has been really rocketing. So that makes that worth a lot more.

Finally, let's talk about the markets. Yesterday, another meandering day on Wall Street, maybe people watching all the convention news.

Stocks barely moved. No, they didn't. They moved down a little bit. But you can see there the Dow barely budged.

This morning, though -- and I've said this a few days -- futures are up this morning. This has happened day after day. Futures are up in the morning and then things peter out in the afternoon.

Verizon, though, looking good, it's wireless business doing very well. So, we'll be watching that.

COLLINS: Yes we will, indeed. All right. Hopefully those arrows will turn themselves around.

SERWER: I hope so.

COLLINS: Thanks, Andy.

Checking in with Jack now and the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: Do they have nicer things to sit on at the New York Stock Exchange than this $8...

COLLINS: What?

CAFFERTY: ... couch from Ikea that we have to...

SERWER: Well, for a million-and-a-half bucks, I hope so.

CAFFERTY: You would think, right.

SERWER: You would think.

CAFFERTY: All this talent on a piece of cheap furniture like this. It's disgraceful.

SERWER: Well, that's debatable.

COLLINS: He fell off of it once.

CAFFERTY: And may again. She managed to do the impossible, which is to make the first day of a political convention interesting. Love or hate her, Teresa Heinz Kerry telling that reporter to shove it got the spotlight right on her at the Democratic national convention, even before the opening gavel.

The question today is: As the campaign moves forward, is Teresa Heinz Kerry a political asset, or perhaps a liability?

Rob in Toronto, Canada: "Teresa Kerry's shove it comment to the reporter showed absolutely no class, self-restraint or refinement. Her unrepentant reaction to what she said testifies to a arrogant slob who is no real lady."

Ken in Prescott, Arizona defends her: "Yes, she is all of that. Democrats tend to have wives with a brain and an attitude."

Sandy in Chesterfield, South Carolina: "Frankly, I'd rather vote for her for president than her husband. At least she knows where she stands on the issues, and it's not at the top of the fence. Guess George still gets my vote, though, since she's not a candidate."

She also doesn't dress up in those funny looking suits like her old man did yesterday.

Pamela in Pinckney, Michigan: "The Republicans would like to paint her as a pain to this party and Kerry, but anyone who lived in another country, speaks five languages, gives generously, and speaks her mind can only be an asset."

Tony in Roscoe, Illinois: "Women can be very scary, especially when they are intelligent and insist on speaking their minds. If Teresa Kerry refuses to have her jaws wired shut, Republicans may have to plug their ears just to keep from going crazy with fright."

SERWER: Wow.

COLLINS: Wow, indeed.

SERWER: You remember that Johnny Paycheck song?

CAFFERTY: Take this job and -- put it where the sun don't shine.

SERWER: I knew you'd remember it.

CAFFERTY: I remember it.

SERWER: I bet you do.

COLLINS: All right. We're going to throw things back to Bill in Boston now.

Did you hear that, women can be scary, Bill?

HEMMER: I did.

COLLINS: Who thought? HEMMER: Hey, guess what I found today?

COLLINS: What?

HEMMER: Guess where I am, back in the great state of Ohio.

COLLINS: Oh, I'm shocked.

HEMMER: Listen, prime-time space for the people from Ohio, they are just off to the left of the stage because we know how critical that state is this year.

Back in a moment here in Boston.

We'll let you know the gadgets that are coming around. Say hello to John's Java and the playing card here for the Democrats.

Back in a moment. We'll have Melissa and "Political Pop" right after this, live from the FleetCenter here in Boston.

Back in a moment.

(COMMERCIAL BREAK)

COLLINS: More now on the disappearance of Lori Hacking in Salt Lake City. There is a report in the "Salt Lake City Tribune" that Lori Hacking knew of her husband's lies about medical school several days before her disappearance.

Lori's friend, Melissa Sugden, may be able to shed some light on this for us this morning. She joins us live from Salt Lake City. Hello to you and thanks for being with us today. I know it's a tough time for you and for family members, of course, as well.

There is a report in the Associated Press as well that said that Lori took a phone call at work that was upsetting to her. Do you know anything about that?

MELISSA SUGDEN, LORI HACKING'S CO-WORKER: Well, you know, I didn't hear the phone call. I wasn't -- I don't actually -- I'm not on her floor, so I don't know exactly what happened on the phone call. All I know is that I had heard that it was North Carolina, but I can't be positive on that.

I just saw her...

COLLINS: Go right ahead.

SUGDEN: I just saw her come out of the building after whatever happened.

COLLINS: There were also some reports from other colleagues at your place of that she had been trying to arrange or on-campus housing at the University of North Carolina medical school. Any idea about that? Had she spoken to you about that at all? No actually I believe they had an apartment already, so I don't know about that on-campus housing. I think that if she would have been calling, she might have been -- because she found she was pregnant, she might have been calling to get benefits or something, or to see what her insurance is.

COLLINS: So, you know that she had already believed that they had already arranged for an apartment. How did you find out about that? You'd spoken about it.

SUGDEN: Yes. Well, yes she gave me, she let me know they she had a new address and, you know, phone numbers and everything to let me -- because they were planning on moving in two weeks, so they had gone down and got everything already.

COLLINS: OK. Again these reports that are coming to us say that Lori was very upset and was crying when she left work. Did you see any of that?

SUGDEN: Yes. I was in the parking garage with my friend Jen and I saw her come across the skywalk. And I said, "Hey, look, there's Lori."

And Jen said, "Wow, it looks like she's crying," and I said, "Yeah."

So, she came out of the skywalk and I go, "Hey, Lori. What's up?"

And she usually talks to me because we vent about everything all the time. And she just said nothing and she walked away, and she was walking so fast.

And I said, "Are you sure?" And she said, "Yes."

And then she got in her car. She zoomed past us, didn't even look at us and left. And I mean I've been friends with Lori for a while, so I knew something was wrong, but I didn't -- I should have called her and I was going to, but then I just, I just got busy over the weekend and I didn't.

COLLINS: So this was very unusual behavior for her?

SUGDEN: Yes. I mean I've seen her get upset a little bit before, but usually it's about work or something going on. It's nothing that she wouldn't talk to me about, usually. Well, I don't know anything that she doesn't talk to me about.

COLLINS: Right. All right. Well, Melissa Sugden, we certainly do appreciate your time this morning in trying to help us understand some of the details that are coming out at this time about this case. We sure do appreciate it.

SUGDEN: Thank you.

COLLINS: For now we go back to Bill in Boston -- Bill? All right, Heidi. Thanks for that. Eight minutes now before the hour.

We're going to shift our focus a little bit here, lighten things up. Time now for a convention edition of "Political Pop."

Here in Boston, on the left, Democratic strategist, Kirsten Powers is here. Holding the middle, Andy Borowitz from "borowitzreport.com." And on the right, Jonah Goldberg of the "National Review Online."

How are you guys doing?

KIRSTEN POWERS, DEMOCRATIC STRATEGIST: Good.

JONAH GOLDBERG, EDITOR, "NATIONAL REVIEW ONLINE": Good.

ANDY BOROWITZ, "BOROWITZREPORT.COM": We're great

HEMMER: Are you ready to go?

POWERS: Oh, yes.

BOROWITZ: We're ready.

HEMMER: Kirsten, what do you make of this photo of John Kerry yesterday?

POWERS: Well, I have this very kind of outside-of-the-box strategy in dealing with candidates...

HEMMER: OK.

POWERS: ... which is I try not to put things on their heads that make them look like condoms. I mean...

GOLDBERG: Especially what it implies when you put the condom around something, what it says is on the inside.

HEMMER: Do you think that is something that hurts him?

POWERS: I think it's not a great picture, and I don't know what they were thinking.

HEMMER: Wow.

POWERS: But you know, I also tried this morning with Jonah to convince him that it's not John Kerry. But he wasn't really buying it.

HEMMER: He wasn't buying it?

GOLDBERG: I wasn't buying it. I wasn't buying the spin, no.

BOROWITZ: You know, let's give Teresa some credit because moments after that picture was taken, she told the photographer where to put the camera. That was very helpful.

HEMMER: Hey Jonah, are Republicans making to big of a deal out of this? They're comparing it to the Michael Dukakis moment of 1988.

GOLDBERG: To give the Kerry campaign credit, this is the most disciplined they've ever been. And here, like a gift from heaven, they've got the Democratic candidate looking like he's saying, thank you, sir, may I have another, you know, in a giant, you know, bubble boy suit.

What do you expect Republicans to do?

HEMMER: All right. That's topic one. Let's go to topic two. Where are the best parties, Andy?

BOROWITZ: Well, you know, I am a party animal. And I just want to -- if you're coming to Boston and you want to know where the really hot parties are, here's a little clue.

Scan the party, and if you see me there, you're not at one of the hot ones. That's just a good rule of thumb.

I actually went to one with Kirsten. Kirsten sent me to a party last night and then did not show up.

HEMMER: Oh, really?

BOROWITZ: Part of "Political Pop" solidarity here. But no, there are great parties and they give out all this great, free stuff.

HEMMER: Like?

BOROWITZ: Well, for waiting half an hour to get into this party, I got some Democratic mints, which are very big.

HEMMER: I've got some stuff here. How about John's Java? Do you like this coffee? Have you tried it yet?

BOROWITZ: You know what, that was a goofy picture of John Kerry until yesterday.

HEMMER: Looks like he's on a beach in southeast Asia.

BOROWITZ: That's now like a Matthew Brady official photograph.

HEMMER: Also these playing cards here. It says, "Vote Kerry" on one side.

This one, it features a number of the speakers here throughout the week, including Howard Dean, "I Scream for Kerry!"

Kind of clever, right?

BOROWITZ: Very exciting.

POWERS: Right. GOLDBERG: Yes.

BOROWITZ: Actually, I was thinking like what is Osama doing in there. And then I thought, no, Obama...

HEMMER: I want to talk about George Bush. Apparently he had another incident on the bike yesterday, went over the handlebars, landed on his back. What's going on here with keeping balance?

GOLDBERG: Well, the brilliance of it was that he didn't do it in front of the camera, which you can't make the same statement about the Democratic guy.

Look, this is the Democrats' week and George Bush just had the day off, and he shouldn't ride bikes anymore. I don't know what else to say.

POWERS: I was going to say that another outside of the box strategy for George Bush is no more bikes.

BOROWITZ: It was planned, actually -- that bike thing was supposed to happen, and it's like Cheney was supposed to fall. And so, they were just very unhappy, but maybe next time.

HEMMER: What do you hear from Republicans?

GOLDBERG: You know, the Republicans, I think, are generally impressed with how disciplined this whole thing is, I don't get to even get to go to the parties that Borowitz goes to.

BOROWITZ: They're pathetic.

GOLDBERG: The only party the Democrats sent me to, they gave up free Tic-Tacs. I mean there was nothing going on for me.

But you know, the Republicans think they've got a good message and, but this is the Democrats' week, so.

HEMMER: If that's the buzz on the right, what's the buzz on the left after night one?

POWERS: I think everybody's really excited. I mean, last night was really exciting. Having Bill and Hillary speaking and, you know, setting up for the rest of the week. Everybody is really energized and happy how well everything is going.

HEMMER: No bike riding though, right.

POWERS: No bike riding, and no more condom-like things.

HEMMER: It's cable. That's enough.

Kirsten, thanks. Andy, Jonah, great to see all three of you.

Break here. In a moment, more of my interview with Teresa Heinz Kerry. We'll have more of that for you in a moment here as we continue our coverage -- always outspoken.

A little preview, also, of the speech later tonight that she will address here to the delegates in Boston.

Back in a moment live at the FleetCenter after this.

(COMMERCIAL BREAK)

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Aired July 27, 2004 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: 7:30 here in Boston. Welcome back, everyone. Day two of the Democratic convention. Our special coverage rolls on today here from the FleetCenter. I'm Bill Hemmer.
My colleague, Heidi Collins working things back in New York. Again, good morning, Heidi.

HEIDI COLLINS, CNN ANCHOR: Good morning, Bill.

Also this half hour, we'll look at what the Bush Administration is considering doing about the recommendations from the 9/11 Commission. We will get a report on that as well.

For now, back to you, Bill.

HEMMER: All right, Heidi. The Democrats coming out swinging on night one, working to knock down the Republican agenda piece by piece. Their criticism reached a crescendo when former President Bill Clinton took the podium in prime time, a bit after 10:00 local time last evening.

(BEGIN VIDEO CLIP)

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: The president had an amazing opportunity to bring the country together under his slogan of compassionate conservatism and to unite the world in the struggle against terror.

Instead, he and his Congressional allies made a very different choice. They chose to move that, to use that moment of unity to try to push the country too far to the right and to walk away from our allies.

(END VIDEO CLIP)

HEMMER: Mr. Clinton -- cheered like a rock star, last evening -- his role limited four years ago, but last night declaring himself a foot soldier in the campaign to elect Senator John Kerry as president.

Not far from the FleetCenter in Boston, Republicans establishing a war room to monitor the democratic message and put their own spin on things. Their counteroffensive includes an 11-minute videotape of Senator John Kerry's record that we should see at some point this week.

Bush campaign manager, Ken Mehlman with us from Arlington, Virginia this morning. Good morning, Ken.

KEN MEHLMAN, BUSH CAMPAIGN MANAGER: How are you? Good morning.

HEMMER: Nice to have you.

MEHLMAN: Thanks.

HEMMER: I'm going fine. I want to talk about the video in a moment here. We touched on it a little bit yesterday. Your reaction to Bill Clinton's speech last night?

MEHLMAN: Well, it's obviously always fun to listen to President Clinton speak. One of the things that was interesting last night, was first of all, I think there is a new definition of optimism. And that is to attack with a smile on your face.

We heard a whole lot of baseless attacks last night on the president and on the accomplishments of this country over the last four years. That folks seemed to have smiled when they did it, it still means it's an attack.

The second thing that was interesting about last night, was the only folks talking about John Kerry's record and his plans for the future were Republicans.

I think a lot of Americans wonder how much their taxes are going to go up? They wonder why John Kerry would have voted to send our troops in Iraq but then voted against providing them the body armor they need to succeed?

None of these questions were answered last night, and they're important questions.

HEMMER: He also said, and I'm quoting now from last evening. Here's the former president. He says, "Strength and wisdom are not opposing values."

MEHLMAN: I strongly...

HEMMER: Quite critical of the past almost three-and-a-half years. You strongly what, Ken?

MEHLMAN: I strongly agree with President Clinton. I think strength and wisdom are actually supportive values. That's why our president has worked to bring the world together, to liberate Iraq, to liberate Afghanistan, to turn Pakistan and Libya from nations that previously were supporting terrorists to nations that are allies in the war against terrorism.

That's how we have worked together, on a bipartisan basis, to reform our federal government, to pass the Patriot Act. That's why we have worked together to take an economy that was in recession, and now we have prosperity and recovery. We want to make go even further.

So I think that there was kind of a disconnect between a lot of the attacks you heard and the progress this country has made over the past four years. Maybe that's one of the reasons a new "Washington Post" poll out showing George W. Bush with a double digit advantage over John Kerry, over who's the optimist.

And one of the reasons is because you can't constantly attack and you can't constantly talk down what our country's doing and at the same time be called an optimist.

HEMMER: Ken, also with Teresa Heinz Kerry making headlines here in Boston, also. You're quite familiar with the incident on Sunday, that I am certain.

Is she considered fair game in this campaign, to monitor her comments and respond to them?

MEHLMAN: I think, ultimately, that this election is going to be about the American people. It's not going to be about Senator Kerry, not about President Bush, not about or Mrs. Kerry, not about the first lady.

This election is about what policies and programs are the two leaders going to put forward, and what will their impact be on the American people?

It will be how do we continue to fight this war on terror and take the battle to the enemy? How do we continue creating prosperity in this country? And do you believe the federal government should respect and reflect the values of our communities, or should Washington try to impose its values on the American people?

Those are the questions. I think it's less about what's happening in Washington than what's happening all across our country.

HEMMER: Ken Mehlman from Arlington, Virginia. Ken, thanks for your time.

MEHLMAN: You're welcome.

HEMMER: We'll speak to somebody from your camp every day about this time throughout the week here.

MEHLMAN: Thanks a lot.

HEMMER: Ken, again thanks.

Also another reminder, speakers later tonight include the former rivals of John Kerry, Howard Dean, the former Vermont Governor. Missouri Congressman Dick Gephardt also on the stage tonight.

Stalwart of the Democratic Party, Ted Kennedy, senator from Massachusetts will be there, too. And what many consider to be the rising star, Barack Obama, running for the U.S. Senate out of Illinois.

Ron Reagan, son of the late president, Ronald Reagan, and Teresa Heinz Kerry, the candidate's wife all on the stage later this evening here at the FleetCenter. Back to Heidi again in New York.

COLLINS: All right, Bill, thanks.

It is just about 36 minutes past the hour, now. Time for a look at some of today's other news with Daryn Kagan.

Hi, Daryn.

DARYN KAGAN, CNN ANCHOR: Good morning to you, Heidi.

We begin with President Bush, who happens to be closer to acting on some of the recommendations of the 9/11 Commission. The president discussed a report yesterday for the first time using videoconference with officials at the White House. Among the items taken up by the task force, the possible addition of a National Intelligence Chief.

To the Middle East now: The Palestinian prime minister has agreed to retract his resignation, ending more than a week-long standoff with leader Yasser Arafat.

Meanwhile, two Palestinians were killed in a gun battle with Israeli forces in Gaza City. Israeli military sources say militants were attempting to launch missiles into Israel.

And Israeli Prime Minister Ariel Sharon is expected to approve plans for a rerouted security barrier in the West Bank.

The U.S. has released several French nationals that were held at Guantanamo Bay in Cuba. The French foreign ministry says the detainees were captured in Afghanistan and will be handed over to judicial authorities upon their arrival in Europe. Three other French detainees are still at the U.S. naval base. French officials say they are working on their release.

Here in the U.S., the husband of a missing pregnant woman now has his own attorney. Mark Hacking's family reportedly has hired the lawyer. The attorney says he has been visiting his client daily at the psychiatric hospital, where Hacking has been for a week.

Authorities say Hacking is what they call a person of interest in the case. Meanwhile, police searched an empty dumpster at the hospital, and also went back to a landfill they searched a week ago with cadaver sniffing dogs.

A welcome home for the crew of the USS George Washington in Norfolk, Virginia. After six months in the war zone, the aircraft carrier brought back more than 13,000 sailors.

The George Washington and its air wing conducted more than 7,500 sortie's with more than 1,500 in support of the Iraq war. Welcome home to all of them.

Let's see what the weather is like for their welcome home. Rob Marciano in for Chad Myers today. Good morning.

ROB MARCIANO, CNN METEOROLOGIST: Good morning again, Daryn.

(WEATHER REPORT)

MARCIANO: Most of today should be nice for you up there for Democratic national convention.

HEMMER: We've been warned. Thank you, Rob.

Andy's back in a moment here "Minding Your Business." One of the Net's most popular sites hit a snag yesterday just as it was announcing some really big news, too. That is not good news for them.

Also, "Political Pop" here in Boston. Our panel looks at whether or not John Kerry just had a Dukakis moment. True or not?

Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: And everybody's talking about Google, but how much is it really worth?

And pay millions just for a seat?

Well, Andy Serwer has all of these stories and more "Minding Your Business" this morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you.

COLLINS: Google's worth a whole bunch? Billions.

SERWER: Billions, yes. It's Google, it's infinite.

A lot of head scratching and eye rolling yesterday on Wall Street over Google. First of all, this IPO -- we talked about it yesterday morning. The company could be worth as much as $36 billion. Look at the math here we've got it cooked up for you.

Now what's going on is this company could be worth more than McDonald's, $33 billion; more than Sony, $32 billion. A lot people said, look it just ain't worth it.

Also going on yesterday, a virus shut down Google for as much as five hours. The MyDoom.M virus, that's not good, when you're looking to go public.

And here -- now listen, this is really incredible. Plus, the general counsel of the company, that's the top lawyer, has been notified that he will get an SEC injunction, this relating to work he did at a previous company several years ago.

Not a banner day for the company.

COLLINS: No.

SERWER: And a lot of people wondering what the heck is going on. Let's talk about this seat situation, though. This has to do with Wall Street, not one of these seats right here.

COLLINS: These are priceless.

SERWER: These seats would be priceless. That's right. The price of a seat in the New York Stock Exchange, worth less than the price of a seat on the NYMEX where they trade energy futures. This is unusual. And the reason why this is significant is because the stock market is doldrums, people, in case you haven't noticed.

Meanwhile, energy trading all -- the price of oil has been really rocketing. So that makes that worth a lot more.

Finally, let's talk about the markets. Yesterday, another meandering day on Wall Street, maybe people watching all the convention news.

Stocks barely moved. No, they didn't. They moved down a little bit. But you can see there the Dow barely budged.

This morning, though -- and I've said this a few days -- futures are up this morning. This has happened day after day. Futures are up in the morning and then things peter out in the afternoon.

Verizon, though, looking good, it's wireless business doing very well. So, we'll be watching that.

COLLINS: Yes we will, indeed. All right. Hopefully those arrows will turn themselves around.

SERWER: I hope so.

COLLINS: Thanks, Andy.

Checking in with Jack now and the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: Do they have nicer things to sit on at the New York Stock Exchange than this $8...

COLLINS: What?

CAFFERTY: ... couch from Ikea that we have to...

SERWER: Well, for a million-and-a-half bucks, I hope so.

CAFFERTY: You would think, right.

SERWER: You would think.

CAFFERTY: All this talent on a piece of cheap furniture like this. It's disgraceful.

SERWER: Well, that's debatable.

COLLINS: He fell off of it once.

CAFFERTY: And may again. She managed to do the impossible, which is to make the first day of a political convention interesting. Love or hate her, Teresa Heinz Kerry telling that reporter to shove it got the spotlight right on her at the Democratic national convention, even before the opening gavel.

The question today is: As the campaign moves forward, is Teresa Heinz Kerry a political asset, or perhaps a liability?

Rob in Toronto, Canada: "Teresa Kerry's shove it comment to the reporter showed absolutely no class, self-restraint or refinement. Her unrepentant reaction to what she said testifies to a arrogant slob who is no real lady."

Ken in Prescott, Arizona defends her: "Yes, she is all of that. Democrats tend to have wives with a brain and an attitude."

Sandy in Chesterfield, South Carolina: "Frankly, I'd rather vote for her for president than her husband. At least she knows where she stands on the issues, and it's not at the top of the fence. Guess George still gets my vote, though, since she's not a candidate."

She also doesn't dress up in those funny looking suits like her old man did yesterday.

Pamela in Pinckney, Michigan: "The Republicans would like to paint her as a pain to this party and Kerry, but anyone who lived in another country, speaks five languages, gives generously, and speaks her mind can only be an asset."

Tony in Roscoe, Illinois: "Women can be very scary, especially when they are intelligent and insist on speaking their minds. If Teresa Kerry refuses to have her jaws wired shut, Republicans may have to plug their ears just to keep from going crazy with fright."

SERWER: Wow.

COLLINS: Wow, indeed.

SERWER: You remember that Johnny Paycheck song?

CAFFERTY: Take this job and -- put it where the sun don't shine.

SERWER: I knew you'd remember it.

CAFFERTY: I remember it.

SERWER: I bet you do.

COLLINS: All right. We're going to throw things back to Bill in Boston now.

Did you hear that, women can be scary, Bill?

HEMMER: I did.

COLLINS: Who thought? HEMMER: Hey, guess what I found today?

COLLINS: What?

HEMMER: Guess where I am, back in the great state of Ohio.

COLLINS: Oh, I'm shocked.

HEMMER: Listen, prime-time space for the people from Ohio, they are just off to the left of the stage because we know how critical that state is this year.

Back in a moment here in Boston.

We'll let you know the gadgets that are coming around. Say hello to John's Java and the playing card here for the Democrats.

Back in a moment. We'll have Melissa and "Political Pop" right after this, live from the FleetCenter here in Boston.

Back in a moment.

(COMMERCIAL BREAK)

COLLINS: More now on the disappearance of Lori Hacking in Salt Lake City. There is a report in the "Salt Lake City Tribune" that Lori Hacking knew of her husband's lies about medical school several days before her disappearance.

Lori's friend, Melissa Sugden, may be able to shed some light on this for us this morning. She joins us live from Salt Lake City. Hello to you and thanks for being with us today. I know it's a tough time for you and for family members, of course, as well.

There is a report in the Associated Press as well that said that Lori took a phone call at work that was upsetting to her. Do you know anything about that?

MELISSA SUGDEN, LORI HACKING'S CO-WORKER: Well, you know, I didn't hear the phone call. I wasn't -- I don't actually -- I'm not on her floor, so I don't know exactly what happened on the phone call. All I know is that I had heard that it was North Carolina, but I can't be positive on that.

I just saw her...

COLLINS: Go right ahead.

SUGDEN: I just saw her come out of the building after whatever happened.

COLLINS: There were also some reports from other colleagues at your place of that she had been trying to arrange or on-campus housing at the University of North Carolina medical school. Any idea about that? Had she spoken to you about that at all? No actually I believe they had an apartment already, so I don't know about that on-campus housing. I think that if she would have been calling, she might have been -- because she found she was pregnant, she might have been calling to get benefits or something, or to see what her insurance is.

COLLINS: So, you know that she had already believed that they had already arranged for an apartment. How did you find out about that? You'd spoken about it.

SUGDEN: Yes. Well, yes she gave me, she let me know they she had a new address and, you know, phone numbers and everything to let me -- because they were planning on moving in two weeks, so they had gone down and got everything already.

COLLINS: OK. Again these reports that are coming to us say that Lori was very upset and was crying when she left work. Did you see any of that?

SUGDEN: Yes. I was in the parking garage with my friend Jen and I saw her come across the skywalk. And I said, "Hey, look, there's Lori."

And Jen said, "Wow, it looks like she's crying," and I said, "Yeah."

So, she came out of the skywalk and I go, "Hey, Lori. What's up?"

And she usually talks to me because we vent about everything all the time. And she just said nothing and she walked away, and she was walking so fast.

And I said, "Are you sure?" And she said, "Yes."

And then she got in her car. She zoomed past us, didn't even look at us and left. And I mean I've been friends with Lori for a while, so I knew something was wrong, but I didn't -- I should have called her and I was going to, but then I just, I just got busy over the weekend and I didn't.

COLLINS: So this was very unusual behavior for her?

SUGDEN: Yes. I mean I've seen her get upset a little bit before, but usually it's about work or something going on. It's nothing that she wouldn't talk to me about, usually. Well, I don't know anything that she doesn't talk to me about.

COLLINS: Right. All right. Well, Melissa Sugden, we certainly do appreciate your time this morning in trying to help us understand some of the details that are coming out at this time about this case. We sure do appreciate it.

SUGDEN: Thank you.

COLLINS: For now we go back to Bill in Boston -- Bill? All right, Heidi. Thanks for that. Eight minutes now before the hour.

We're going to shift our focus a little bit here, lighten things up. Time now for a convention edition of "Political Pop."

Here in Boston, on the left, Democratic strategist, Kirsten Powers is here. Holding the middle, Andy Borowitz from "borowitzreport.com." And on the right, Jonah Goldberg of the "National Review Online."

How are you guys doing?

KIRSTEN POWERS, DEMOCRATIC STRATEGIST: Good.

JONAH GOLDBERG, EDITOR, "NATIONAL REVIEW ONLINE": Good.

ANDY BOROWITZ, "BOROWITZREPORT.COM": We're great

HEMMER: Are you ready to go?

POWERS: Oh, yes.

BOROWITZ: We're ready.

HEMMER: Kirsten, what do you make of this photo of John Kerry yesterday?

POWERS: Well, I have this very kind of outside-of-the-box strategy in dealing with candidates...

HEMMER: OK.

POWERS: ... which is I try not to put things on their heads that make them look like condoms. I mean...

GOLDBERG: Especially what it implies when you put the condom around something, what it says is on the inside.

HEMMER: Do you think that is something that hurts him?

POWERS: I think it's not a great picture, and I don't know what they were thinking.

HEMMER: Wow.

POWERS: But you know, I also tried this morning with Jonah to convince him that it's not John Kerry. But he wasn't really buying it.

HEMMER: He wasn't buying it?

GOLDBERG: I wasn't buying it. I wasn't buying the spin, no.

BOROWITZ: You know, let's give Teresa some credit because moments after that picture was taken, she told the photographer where to put the camera. That was very helpful.

HEMMER: Hey Jonah, are Republicans making to big of a deal out of this? They're comparing it to the Michael Dukakis moment of 1988.

GOLDBERG: To give the Kerry campaign credit, this is the most disciplined they've ever been. And here, like a gift from heaven, they've got the Democratic candidate looking like he's saying, thank you, sir, may I have another, you know, in a giant, you know, bubble boy suit.

What do you expect Republicans to do?

HEMMER: All right. That's topic one. Let's go to topic two. Where are the best parties, Andy?

BOROWITZ: Well, you know, I am a party animal. And I just want to -- if you're coming to Boston and you want to know where the really hot parties are, here's a little clue.

Scan the party, and if you see me there, you're not at one of the hot ones. That's just a good rule of thumb.

I actually went to one with Kirsten. Kirsten sent me to a party last night and then did not show up.

HEMMER: Oh, really?

BOROWITZ: Part of "Political Pop" solidarity here. But no, there are great parties and they give out all this great, free stuff.

HEMMER: Like?

BOROWITZ: Well, for waiting half an hour to get into this party, I got some Democratic mints, which are very big.

HEMMER: I've got some stuff here. How about John's Java? Do you like this coffee? Have you tried it yet?

BOROWITZ: You know what, that was a goofy picture of John Kerry until yesterday.

HEMMER: Looks like he's on a beach in southeast Asia.

BOROWITZ: That's now like a Matthew Brady official photograph.

HEMMER: Also these playing cards here. It says, "Vote Kerry" on one side.

This one, it features a number of the speakers here throughout the week, including Howard Dean, "I Scream for Kerry!"

Kind of clever, right?

BOROWITZ: Very exciting.

POWERS: Right. GOLDBERG: Yes.

BOROWITZ: Actually, I was thinking like what is Osama doing in there. And then I thought, no, Obama...

HEMMER: I want to talk about George Bush. Apparently he had another incident on the bike yesterday, went over the handlebars, landed on his back. What's going on here with keeping balance?

GOLDBERG: Well, the brilliance of it was that he didn't do it in front of the camera, which you can't make the same statement about the Democratic guy.

Look, this is the Democrats' week and George Bush just had the day off, and he shouldn't ride bikes anymore. I don't know what else to say.

POWERS: I was going to say that another outside of the box strategy for George Bush is no more bikes.

BOROWITZ: It was planned, actually -- that bike thing was supposed to happen, and it's like Cheney was supposed to fall. And so, they were just very unhappy, but maybe next time.

HEMMER: What do you hear from Republicans?

GOLDBERG: You know, the Republicans, I think, are generally impressed with how disciplined this whole thing is, I don't get to even get to go to the parties that Borowitz goes to.

BOROWITZ: They're pathetic.

GOLDBERG: The only party the Democrats sent me to, they gave up free Tic-Tacs. I mean there was nothing going on for me.

But you know, the Republicans think they've got a good message and, but this is the Democrats' week, so.

HEMMER: If that's the buzz on the right, what's the buzz on the left after night one?

POWERS: I think everybody's really excited. I mean, last night was really exciting. Having Bill and Hillary speaking and, you know, setting up for the rest of the week. Everybody is really energized and happy how well everything is going.

HEMMER: No bike riding though, right.

POWERS: No bike riding, and no more condom-like things.

HEMMER: It's cable. That's enough.

Kirsten, thanks. Andy, Jonah, great to see all three of you.

Break here. In a moment, more of my interview with Teresa Heinz Kerry. We'll have more of that for you in a moment here as we continue our coverage -- always outspoken.

A little preview, also, of the speech later tonight that she will address here to the delegates in Boston.

Back in a moment live at the FleetCenter after this.

(COMMERCIAL BREAK)

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