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CNN Live At Daybreak

Preview of Today's Happenings at DNC; Ongoing Controversy Over How Quickly to Make Changes Based on 9/11 Commission's Report

Aired July 29, 2004 - 06:00   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.


(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Massachusetts?

UNIDENTIFIED MALE: We proudly cast 121 votes for John Kerry.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: John Kerry moves closer to center stage.

It is Thursday, July 29.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, no drama, but plenty of enthusiasm. Six months after a win in Iowa energized his campaign, Senator John Kerry of Massachusetts gets the Democratic nomination for president. Tonight, Kerry's acceptance speech.

Another kidnapping in Iraq today. This time it's a Somali driver who's been captured. The Arab television station Al Jazeera reports militants are vowing to kill the man in 48 hours if his Kuwaiti company does not leave Iraq.

The Iraqi prime minister today accepted an invitation to visit the White House. Just a short time ago, he and Secretary of State Colin Powell wrapped up a meeting on Iraq's security. The two discussed a Saudi proposal to send Muslim troops into Iraq.

The United Nations is about to launch a desperate appeal for aid for Bangladesh. After a month of flooding there, more than 450 people have been killed. And listen to this, the flooding has displaced up to 30 million people.

In four hours, a hearing into motions by the attorneys for convicted D.C. area sniper John Muhammad. His attorney wants Fairfax County, Virginia prosecutors removed from Muhammad's second murder trial.

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

Good morning -- Rob.

ROB MARCIANO, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The number two man on the Democratic ticket is a proud favorite in Boston. It was all about John Edwards last night. An overflow crowd forced the fire marshal to close the main hall. Edwards stayed positive, promising the crowd that hope is on the way.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: What we believe, what John Kerry and I believe is that we should never looked down on anybody. We ought to lift people up. We don't believe in tearing people apart. We believe in bringing them together. What we believe, what I believe is that the family you were born into and the color of your skin, in our America, should never control your destiny.

(END VIDEO CLIP)

COSTELLO: Edwards told the crowd that John Kerry is fired up about tonight. The convention wraps up with Kerry taking center stage for his acceptance speech.

CNN's Bob Franken joins us live in Boston with a preview -- good morning.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning.

And bulletin, bulletin, bulletin -- John Kerry has been nominated.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Alabama, you have 62 votes.

UNIDENTIFIED MALE: We're proud to yield to the Commonwealth of Massachusetts to nominate the next...

UNIDENTIFIED FEMALE: Massachusetts?

(END VIDEO CLIP)

FRANKEN: Well, they finally went over the top with Ohio. John Glenn delivering the news. And Ohio was chosen, we're told, because it is such an important battleground state. But it was mainly a touchy feely night, the only kind of night that John Edwards seems to know how to deliver. That was the spirit of his campaign when he ran against John Kerry. It's the spirit of his campaign as he runs with John Kerry. We heard his speech. Trying to pull America together was the tenor. It's really been sort of the whole idea of this convention. Very little negativity.

But last night, the role of Dr. No was played by Al Sharpton.

(BEGIN VIDEO CLIP)

REV. AL SHARPTON (D), FORMER PRESIDENTIAL CANDIDATE: This year, we celebrated the anniversary of "Brown v. The Board of Education." This court has voted 5-4 on critical issues of women's rights and civil rights. It is frightening to think that the gains of civil and women's rights and those movements in the last century could be reversed if this administration is in the White House in these next four years. I suggest to you tonight that if George Bush had selected the court in '54, Clarence Thomas would have never got to law school.

(END VIDEO CLIP)

FRANKEN: And finally tonight, the point of this convention, John Kerry, after his boat ride into Boston, spent the night at his home working on his speech, receiving guests. Tonight, the fruit of all those labors, as the nominee, now the official nominee of the Democratic Party, appears before this convention. And then they look for whatever bounce they can get from the convention out into the political wars with the Bush administration -- Carol.

COSTELLO: OK, so John Kerry has the reputation of going on and on and on.

How long will his speech be tonight?

FRANKEN: Well, look for a hook. No, don't look for a hook. That's -- really the person who's the nominee of the party doesn't get a hook. His job tonight is going to be to introduce himself personally. He is somebody who has the rap of being aloof. He's going to have to try and correct that. And, of course, he's somebody that up until now, personally, has been defined pretty much the negative ads on the other side.

And they've got to try and overcome that. That's his mission tonight.

COSTELLO: Bob Franken live in Boston this morning.

Thank you.

Here's a look at tonight's convention speakers -- former Secretary of State Madeleine Albright; former NATO commander and ex- Democratic presidential candidate Wesley Clark; Senator Joseph Lieberman of Connecticut, also a former rival of Kerry; and, of course, Senator Kerry himself.

Our prime time lineup for you includes "ANDERSON COOPER 360" at 7:00. Wolf Blitzer follows at 8:00. At 9:00, Larry King is live from the floor of the Fleet Center. All times Eastern. And for a schedule of tonight's key events and a special report on the convention, as well as plenty of analysis, yes, you guessed it, it's all there for you on our Web site, cnn.com.

It has been a week since the 9/11 Commission issued its much anticipated report. But has seven days been too long a wait for anything to be done? CNN congressional correspondent Ed Henry has more on the rush to judgment and the call to action.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Doing our work and we thank you...

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Unlike most blue ribbon panels the 9/11 commission is not going quietly into the night.

ALLAN LICHTMAN, AMERICAN UNIVERSITY: Usually with these commissions they drop their report from an airplane and take off. Now these commissioners have made the report their own. They've not only become reporters, they have become lobbyists.

HENRY: John Kerry has endorsed their blueprint to radically change the nation's intelligence structure. President Bush is considering changes by executive order. At least half a dozen congressional panels are gearing up for hearings and vowing swift legislative action.

SEN. MITCH MCCONNELL (R), MAJORITY WHIP: The job is now for the president and for the Congress to look at the recommendations and to implement them as rapidly as possible.

HENRY: But some experts warn everyone may be moving too fast because of pressure from the commission. The former chairman of a presidential commission on terror says hasty reform could create new problems.

JIM GILMORE, FMR. CHMN. PRES. TERROR COMMISSION: They've created a frazzling jangling of nerves in the political system and the result of that is that we may be rushing to some of their proposals that maybe shouldn't be supported.

LICHTMAN: But said that Congress passed the Patriot Act without anybody reading it. We cannot afford to rush into scrambling our entire intelligence operation in this country because of political pressure.

HENRY: But 9/11 commissioners point out that many of these changes, such as creating a national director of intelligence, have been studied for years.

RICHARD BEN-VENISTE (D), 9/11 COMMISSION: Congress, with all deliberate speed, must look at our recommendations and we are -- we don't have the luxury of waiting. These -- some of these recommendations are long overdue.

HENRY: Commissioners also note the government is warning there could be terror attacks before the election. So, they say, there's no time for delay.

BEN-VENISTE: The Islamist terrorist movement, be it al Qaeda or others, have been known to be patient, entrepreneurial, clever and are willing to study our system to exploit our weaknesses.

(END VIDEO TAPE)

COSTELLO: Here are some other stories making news across America this Thursday.

Jars of baby food are being taken off grocery shelves in southern California following a tampering scare. Evidence of crushed castor beans, along with a note, were found in two jars of Gerber's banana yogurt purchased at a store in Irvine, California. Ground castor beans are a key component in the poison ricin.

A woman stopped at the border in Texas is getting the FBI's attention. She's being investigated for possible ties to terrorism. Her name was on an FBI watch list in connection with an overseas terrorist incident. Border Patrol agents held her after discovering her South African passport had six pages torn out.

Ghana Airways has been deemed unsafe. The federal transportation department has barred the state-run airline from flying in and out of the United States. The airline is accused of using planes that failed safety inspections and flying without a license.

The threat level is at yellow in Alaska, but it's not part of homeland security. People around Mount Spur are on alert for a possible eruption of the volcano in the next few weeks. After 12 years of inactivity, several small earthquakes have been felt around the volcano.

The Democrats promised to keep their convention positive, but have they? We'll get some Republican reaction to the convention from the party strategist.

And for the third time, the Colorado court hearing Kobe Bryant's assault case messes up. You won't believe this one. We'll get details from our own legal eagle.

And we'll head deep into Bush country for one Texan's heated reaction to Michael Moore's hot film.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: Paint Wall Street black and red, you might say. A blue chip rally late in the trading day boosted the Dow and helped the Nasdaq cut its losses. The Dow jumped almost 32 points, to 10117. The Nasdaq recovered from steeper losses earlier to finish down almost 11 points, to 1858.

Time for a little more business buzz right now.

The IRS says Americans are not getting richer.

Our Sasha Salama has more on this story live from the Nasdaq market site -- good morning. SASHA SALAMA, CNN CORRESPONDENT: Good morning, Carol.

And if you're feeling or our viewers are feeling like you just can't get ahead, you are not alone. The latest report from the Internal Revenue Service is, indeed, what Carol just said. Americans are not getting richer. And, in fact, incomes have declined for two consecutive years after the Internet stock market bubble burst in 2000. And that two year decline was the first time that that has ever happened since World War 2, which is when the modern day tax system was first invented.

Basically, adjusted for inflation, the income of all Americans between the years of 2000 and 2002 fell 9.2 percent. And average incomes declined even more when you take into account the growth of the U.S. population.

A couple of reasons for this. The recession hit the economy in 2001. The stock market fell. The Internet bubble burst. And all of this had that negative affect on people's incomes.

So that is definitely not such bright news for you, but at least misery loves company if you feel like you're just not able to get ahead here.

I do want to also mention that in terms of the stock market, we've got one corporate giant that is reporting results today. Exxon Mobil reports its second quarter earnings and those results expected before the opening bell, $0.88 a share. We'll keep up posted on the latest -- -- Carol.

COSTELLO: Sasha Salama live from the Nasdaq market center.

Thank you.

It was the Edwards family night at the Democratic national convention. The vice presidential candidate was introduced by his wife Elizabeth, who in turn was introduced by their daughter Kate. Edwards sounded a familiar theme, saying he and John Kerry will work to build one America. Touting Kerry's policies on taxes, health care and education, Edwards led delegates in rousing chants of "Hope Is On the Way!"

So, how will the Republicans combat the Democrats' politics of hope? And is there an advantage to being the second convention?

Let's talk to a Republican strategist about that, Cheri Jacobus.

She's live in D.C.

Good morning.

CHERI JACOBUS, REPUBLICAN STRATEGIST: Good morning.

COSTELLO: A bit of sound from John Edwards before we begin.

Let's listen. (AUDIO GAP)

COSTELLO: Well, evidently we do not have. But he was talking about John Kerry's service in Vietnam a lot last night, as were many of the speakers at the Democratic national convention.

How will the Republicans combat this? And do they have to?

JACOBUS: Well, actually, I think the Democrats have missed an opportunity to really present themselves in the best light during their convention. Obviously, that presents a better opportunity for Republicans next month. I think we're free to pretty much, you know, celebrate our candidate. People already know George Bush and Dick Cheney. They're authentic. We don't have to remake them, as I think the Democrats are trying to do with their candidate.

But the reason I think this has been a missed opportunity is that John Edwards last night, his speech, while he's very good at making speeches and we'd known this beforehand -- there's been so much discussion about that. But this particular speech was just a retread of his stump speech on the primary trail, where he garnered only one win.

So it's almost as though they really don't know what they're about. They don't know what to say. They keep going back to John Kerry's Vietnam service because they really don't want to talk about his Senate voting record.

So...

COSTELLO: Well, I think that many...

JACOBUS: I find it very curious.

COSTELLO: I think that many Democrats would disagree with you. They're trying to create a distinct difference between the parties. And really what's coming out of that, what many people believe that's coming out of that is that the Republicans are really only for the wealthy and not for the greater part of America.

JACOBUS: Well, they're saying that. They're trying to get that message across and then they fail to give actual examples. What I find interesting, too, is that John Edwards last night barely gave a nod to the issue of terrorism...

COSTELLO: Well, the tax cuts for the...

JACOBUS: ... and that's...

COSTELLO: The tax cuts for the top 2 percent of Americans, or top 1 percent of Americans, they're certainly getting that point across.

JACOBUS: Well, I don't know if they are getting that point across because they've been saying it over and over again and most Americans know that taxes are generally good for the economy and tax cuts are good for America.

But I find it interesting that they barely gave a nod to the issue of terrorism and al Qaeda. The only thing that Edwards had to say about it last night was essentially almost word for word what the president has been saying.

So it's really not something the American people want to see their leaders do, is sort of forget about and shove aside the most important issue of our time. So that's where I think the Democrats are going to have a real problem. They really don't seem to have any answers. And it's a question of leadership.

So if we have to keep going back to John Kerry's Vietnam service to look for leadership and ignore his liberal voting record in the Senate and ignore the fact that he doesn't have any answers for the most important issues of the day, quite frankly, that does benefit Republicans.

COSTELLO: Well, let's listen to Al Sharpton, because he really -- I don't want to say negative, but he certainly -- well, let's put it in Bob Franken's words. He played Dr. No last night.

Let's listen to Al Sharpton.

(BEGIN VIDEO CLIP)

REV. AL SHARPTON (D), FORMER PRESIDENTIAL CANDIDATE: The promise of America guarantees health care for all of its citizens and doesn't force seniors to travel to Canada to buy prescription drugs they can't afford here at home. The promise of America provides that those who work in our health care system can afford to be hospitalized in the very beds they clean up every day. The promise of America is that government does not seek to regulate your behavior in the bedroom, but to guarantee your right to provide food in the kitchen.

(END VIDEO CLIP)

COSTELLO: You know, and I think that the subject of health care really reaches out to many Americans, because there are problems with that big Medicare bill now. A lot of people don't understand it and some say it's not working.

JACOBUS: Well, yes, there are -- obviously health care is a big issue in this campaign and I'd like to note that John Kerry, in his 19 years in the Senate, has never introduced a health care bill. So I think you have to look at where his commitment really lies.

I'd like to say one thing about Al Sharpton last night. I think overall he was somebody that people were looking to to be entertaining and to stick with the carefully choreographed theme of the night, which was one of hope is on the way. We saw the signs being raised at one time like Rockettes.

Al Sharpton, in my view, last night, was a train wreck for the Democrats. He went over the time. He was off message. He came off as very, very angry. And while the Democrats, on the one hand, are trying to say this is an America -- this is -- there's two Americas. And then you have John Edwards then talking about the fact that he's had all this opportunity which has allowed him to achieve a lot of his goals, it's an inconsistent message.

And I think that they have gone into this convention really without quite having a message and not really knowing what they wanted to get across to the American people, and they don't have a health care plan for the American people.

COSTELLO: Again, many Democrats would probably disagree with you.

JACOBUS: Well, I'm sure they would.

COSTELLO: But how negative...

JACOBUS: They're having a great time at their party this week.

COSTELLO: How negative do you think that the Republican national convention will be?

JACOBUS: Well, I think that certainly Republicans should show contrast between the Bush record and the Kerry voting record. Kerry does not want people to look at his record. In fact, he calls that negative campaigning and attacks and he has said don't look at what I done in the past to see what I would do in the future, which I find very disturbing because we have nothing else to go on.

But I think there is an opportunity for the Republican national convention to be very positive and to reintroduce our guys. Quickly, we haven't seen a lot of Dick Cheney. And I think when we see him again...

COSTELLO: Well, we certainly...

(CROSSTALK)

COSTELLO: He's been campaigning.

JACOBUS: Well, he's been campaigning at local levels for candidates. But on the national scale, whenever he comes out and he's forceful and he has the limelight, he tends to do very well. So I think that that's going to be a very pleasant surprise, to have Dick Cheney out there. He's very authentic and there is a real contrast between Dick Cheney and John Edwards. And I think Dick Cheney has the edge on credibility.

COSTELLO: OK.

JACOBUS: So when the Republicans have their convention, I think everybody will have a sigh of relief...

COSTELLO: All right...

JACOBUS: ... that, hey, the grownups are in town now.

COSTELLO: All right, spoken like a true Republican strategist.

Thank you for joining DAYBREAK this morning.

JACOBUS: Thank you.

COSTELLO: We appreciate it.

Coming up, Michael Moore and the Democrats -- some might call that a match made in heaven. But some Democrats have another view of Moore and his "Fahrenheit 911." More on that story later on DAYBREAK.

And a bittersweet day for one woman who took the D.C. Metro and found herself handcuffed and detained by D.C. police, actually, Metro police. The reason why may shock you. We'll explain later.

(COMMERCIAL BREAK)

COSTELLO: If you've ever taken the Metro, the subway system in Washington, D.C., you know how clean it is. And one of the reasons it's so clean is because you are not allowed to eat in a Metro station. But one woman says they're carrying the rule, oh, a bit too far.

MARCIANO: Is she a local that did this...

COSTELLO: She's a...

MARCIANO: Or I wouldn't have known that. I wouldn't have eaten a candy bar.

COSTELLO: Her name is Stephanie Willett. She's 45 years old and she is a local. She was riding the orange line home and she was eating a Payday candy bar. She was going down the escalator and a Metro transit police said, "You're not allowed to eat." So she stuffs the rest of the candy bar into her mouth and is chewing. And the officer says, "Hey, you're not allowed to be eating in the Metro station."

And, of course, Stephanie made some flip comment to the Metro...

MARCIANO: Oh, you don't do that to the Metro police.

COSTELLO: No. And...

MARCIANO: No.

COSTELLO: The transit officer placed her under arrest. She called for backup, put the woman in cuffs, brought her down to the police station. She spent a couple hours in a cell. She paid a $10 fine and she's going to appear in court later for chewing a Payday candy bar in a Metro station.

MARCIANO: When is the last time you had a Payday candy bar? She maybe have to be arrested for that.

COSTELLO: I never thought of that, as an aside for this. MARCIANO: A Baby Ruth, maybe a Snickers.

COSTELLO: Maybe that was the real reason, it was a Payday candy bar.

MARCIANO: But it is a clean Metro system, so I guess...

COSTELLO: It is a very clean...

MARCIANO: I wouldn't have known that. Now I do.

COSTELLO: Well, you know, they're infamous for getting a 12- year-old girl into trouble for eating a single French fry on a Metro train. They arrested her. That was back in 2000. So this is a continuing debate in Washington as to whether it's a fair system or not. So we'll keep you posted.

MARCIANO: All right.

COSTELLO: Coming up in the next half hour of DAYBREAK...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We proudly cast 121 votes for John Kerry.

(END VIDEO CLIP)

COSTELLO: The delegates have spoken and given the nod to the Democratic nominee for president. We'll take you live to Boston for the latest.

And the Kobe Bryant case -- could another foul-up cost the prosecution the case? We'll have analysis with our legal eagle, Kendall Coffey.

(COMMERCIAL BREAK)

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Aired July 29, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Massachusetts?

UNIDENTIFIED MALE: We proudly cast 121 votes for John Kerry.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: John Kerry moves closer to center stage.

It is Thursday, July 29.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, no drama, but plenty of enthusiasm. Six months after a win in Iowa energized his campaign, Senator John Kerry of Massachusetts gets the Democratic nomination for president. Tonight, Kerry's acceptance speech.

Another kidnapping in Iraq today. This time it's a Somali driver who's been captured. The Arab television station Al Jazeera reports militants are vowing to kill the man in 48 hours if his Kuwaiti company does not leave Iraq.

The Iraqi prime minister today accepted an invitation to visit the White House. Just a short time ago, he and Secretary of State Colin Powell wrapped up a meeting on Iraq's security. The two discussed a Saudi proposal to send Muslim troops into Iraq.

The United Nations is about to launch a desperate appeal for aid for Bangladesh. After a month of flooding there, more than 450 people have been killed. And listen to this, the flooding has displaced up to 30 million people.

In four hours, a hearing into motions by the attorneys for convicted D.C. area sniper John Muhammad. His attorney wants Fairfax County, Virginia prosecutors removed from Muhammad's second murder trial.

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

Good morning -- Rob.

ROB MARCIANO, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: The number two man on the Democratic ticket is a proud favorite in Boston. It was all about John Edwards last night. An overflow crowd forced the fire marshal to close the main hall. Edwards stayed positive, promising the crowd that hope is on the way.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: What we believe, what John Kerry and I believe is that we should never looked down on anybody. We ought to lift people up. We don't believe in tearing people apart. We believe in bringing them together. What we believe, what I believe is that the family you were born into and the color of your skin, in our America, should never control your destiny.

(END VIDEO CLIP)

COSTELLO: Edwards told the crowd that John Kerry is fired up about tonight. The convention wraps up with Kerry taking center stage for his acceptance speech.

CNN's Bob Franken joins us live in Boston with a preview -- good morning.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning.

And bulletin, bulletin, bulletin -- John Kerry has been nominated.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Alabama, you have 62 votes.

UNIDENTIFIED MALE: We're proud to yield to the Commonwealth of Massachusetts to nominate the next...

UNIDENTIFIED FEMALE: Massachusetts?

(END VIDEO CLIP)

FRANKEN: Well, they finally went over the top with Ohio. John Glenn delivering the news. And Ohio was chosen, we're told, because it is such an important battleground state. But it was mainly a touchy feely night, the only kind of night that John Edwards seems to know how to deliver. That was the spirit of his campaign when he ran against John Kerry. It's the spirit of his campaign as he runs with John Kerry. We heard his speech. Trying to pull America together was the tenor. It's really been sort of the whole idea of this convention. Very little negativity.

But last night, the role of Dr. No was played by Al Sharpton.

(BEGIN VIDEO CLIP)

REV. AL SHARPTON (D), FORMER PRESIDENTIAL CANDIDATE: This year, we celebrated the anniversary of "Brown v. The Board of Education." This court has voted 5-4 on critical issues of women's rights and civil rights. It is frightening to think that the gains of civil and women's rights and those movements in the last century could be reversed if this administration is in the White House in these next four years. I suggest to you tonight that if George Bush had selected the court in '54, Clarence Thomas would have never got to law school.

(END VIDEO CLIP)

FRANKEN: And finally tonight, the point of this convention, John Kerry, after his boat ride into Boston, spent the night at his home working on his speech, receiving guests. Tonight, the fruit of all those labors, as the nominee, now the official nominee of the Democratic Party, appears before this convention. And then they look for whatever bounce they can get from the convention out into the political wars with the Bush administration -- Carol.

COSTELLO: OK, so John Kerry has the reputation of going on and on and on.

How long will his speech be tonight?

FRANKEN: Well, look for a hook. No, don't look for a hook. That's -- really the person who's the nominee of the party doesn't get a hook. His job tonight is going to be to introduce himself personally. He is somebody who has the rap of being aloof. He's going to have to try and correct that. And, of course, he's somebody that up until now, personally, has been defined pretty much the negative ads on the other side.

And they've got to try and overcome that. That's his mission tonight.

COSTELLO: Bob Franken live in Boston this morning.

Thank you.

Here's a look at tonight's convention speakers -- former Secretary of State Madeleine Albright; former NATO commander and ex- Democratic presidential candidate Wesley Clark; Senator Joseph Lieberman of Connecticut, also a former rival of Kerry; and, of course, Senator Kerry himself.

Our prime time lineup for you includes "ANDERSON COOPER 360" at 7:00. Wolf Blitzer follows at 8:00. At 9:00, Larry King is live from the floor of the Fleet Center. All times Eastern. And for a schedule of tonight's key events and a special report on the convention, as well as plenty of analysis, yes, you guessed it, it's all there for you on our Web site, cnn.com.

It has been a week since the 9/11 Commission issued its much anticipated report. But has seven days been too long a wait for anything to be done? CNN congressional correspondent Ed Henry has more on the rush to judgment and the call to action.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Doing our work and we thank you...

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Unlike most blue ribbon panels the 9/11 commission is not going quietly into the night.

ALLAN LICHTMAN, AMERICAN UNIVERSITY: Usually with these commissions they drop their report from an airplane and take off. Now these commissioners have made the report their own. They've not only become reporters, they have become lobbyists.

HENRY: John Kerry has endorsed their blueprint to radically change the nation's intelligence structure. President Bush is considering changes by executive order. At least half a dozen congressional panels are gearing up for hearings and vowing swift legislative action.

SEN. MITCH MCCONNELL (R), MAJORITY WHIP: The job is now for the president and for the Congress to look at the recommendations and to implement them as rapidly as possible.

HENRY: But some experts warn everyone may be moving too fast because of pressure from the commission. The former chairman of a presidential commission on terror says hasty reform could create new problems.

JIM GILMORE, FMR. CHMN. PRES. TERROR COMMISSION: They've created a frazzling jangling of nerves in the political system and the result of that is that we may be rushing to some of their proposals that maybe shouldn't be supported.

LICHTMAN: But said that Congress passed the Patriot Act without anybody reading it. We cannot afford to rush into scrambling our entire intelligence operation in this country because of political pressure.

HENRY: But 9/11 commissioners point out that many of these changes, such as creating a national director of intelligence, have been studied for years.

RICHARD BEN-VENISTE (D), 9/11 COMMISSION: Congress, with all deliberate speed, must look at our recommendations and we are -- we don't have the luxury of waiting. These -- some of these recommendations are long overdue.

HENRY: Commissioners also note the government is warning there could be terror attacks before the election. So, they say, there's no time for delay.

BEN-VENISTE: The Islamist terrorist movement, be it al Qaeda or others, have been known to be patient, entrepreneurial, clever and are willing to study our system to exploit our weaknesses.

(END VIDEO TAPE)

COSTELLO: Here are some other stories making news across America this Thursday.

Jars of baby food are being taken off grocery shelves in southern California following a tampering scare. Evidence of crushed castor beans, along with a note, were found in two jars of Gerber's banana yogurt purchased at a store in Irvine, California. Ground castor beans are a key component in the poison ricin.

A woman stopped at the border in Texas is getting the FBI's attention. She's being investigated for possible ties to terrorism. Her name was on an FBI watch list in connection with an overseas terrorist incident. Border Patrol agents held her after discovering her South African passport had six pages torn out.

Ghana Airways has been deemed unsafe. The federal transportation department has barred the state-run airline from flying in and out of the United States. The airline is accused of using planes that failed safety inspections and flying without a license.

The threat level is at yellow in Alaska, but it's not part of homeland security. People around Mount Spur are on alert for a possible eruption of the volcano in the next few weeks. After 12 years of inactivity, several small earthquakes have been felt around the volcano.

The Democrats promised to keep their convention positive, but have they? We'll get some Republican reaction to the convention from the party strategist.

And for the third time, the Colorado court hearing Kobe Bryant's assault case messes up. You won't believe this one. We'll get details from our own legal eagle.

And we'll head deep into Bush country for one Texan's heated reaction to Michael Moore's hot film.

This is DAYBREAK for Thursday.

(COMMERCIAL BREAK)

COSTELLO: Paint Wall Street black and red, you might say. A blue chip rally late in the trading day boosted the Dow and helped the Nasdaq cut its losses. The Dow jumped almost 32 points, to 10117. The Nasdaq recovered from steeper losses earlier to finish down almost 11 points, to 1858.

Time for a little more business buzz right now.

The IRS says Americans are not getting richer.

Our Sasha Salama has more on this story live from the Nasdaq market site -- good morning. SASHA SALAMA, CNN CORRESPONDENT: Good morning, Carol.

And if you're feeling or our viewers are feeling like you just can't get ahead, you are not alone. The latest report from the Internal Revenue Service is, indeed, what Carol just said. Americans are not getting richer. And, in fact, incomes have declined for two consecutive years after the Internet stock market bubble burst in 2000. And that two year decline was the first time that that has ever happened since World War 2, which is when the modern day tax system was first invented.

Basically, adjusted for inflation, the income of all Americans between the years of 2000 and 2002 fell 9.2 percent. And average incomes declined even more when you take into account the growth of the U.S. population.

A couple of reasons for this. The recession hit the economy in 2001. The stock market fell. The Internet bubble burst. And all of this had that negative affect on people's incomes.

So that is definitely not such bright news for you, but at least misery loves company if you feel like you're just not able to get ahead here.

I do want to also mention that in terms of the stock market, we've got one corporate giant that is reporting results today. Exxon Mobil reports its second quarter earnings and those results expected before the opening bell, $0.88 a share. We'll keep up posted on the latest -- -- Carol.

COSTELLO: Sasha Salama live from the Nasdaq market center.

Thank you.

It was the Edwards family night at the Democratic national convention. The vice presidential candidate was introduced by his wife Elizabeth, who in turn was introduced by their daughter Kate. Edwards sounded a familiar theme, saying he and John Kerry will work to build one America. Touting Kerry's policies on taxes, health care and education, Edwards led delegates in rousing chants of "Hope Is On the Way!"

So, how will the Republicans combat the Democrats' politics of hope? And is there an advantage to being the second convention?

Let's talk to a Republican strategist about that, Cheri Jacobus.

She's live in D.C.

Good morning.

CHERI JACOBUS, REPUBLICAN STRATEGIST: Good morning.

COSTELLO: A bit of sound from John Edwards before we begin.

Let's listen. (AUDIO GAP)

COSTELLO: Well, evidently we do not have. But he was talking about John Kerry's service in Vietnam a lot last night, as were many of the speakers at the Democratic national convention.

How will the Republicans combat this? And do they have to?

JACOBUS: Well, actually, I think the Democrats have missed an opportunity to really present themselves in the best light during their convention. Obviously, that presents a better opportunity for Republicans next month. I think we're free to pretty much, you know, celebrate our candidate. People already know George Bush and Dick Cheney. They're authentic. We don't have to remake them, as I think the Democrats are trying to do with their candidate.

But the reason I think this has been a missed opportunity is that John Edwards last night, his speech, while he's very good at making speeches and we'd known this beforehand -- there's been so much discussion about that. But this particular speech was just a retread of his stump speech on the primary trail, where he garnered only one win.

So it's almost as though they really don't know what they're about. They don't know what to say. They keep going back to John Kerry's Vietnam service because they really don't want to talk about his Senate voting record.

So...

COSTELLO: Well, I think that many...

JACOBUS: I find it very curious.

COSTELLO: I think that many Democrats would disagree with you. They're trying to create a distinct difference between the parties. And really what's coming out of that, what many people believe that's coming out of that is that the Republicans are really only for the wealthy and not for the greater part of America.

JACOBUS: Well, they're saying that. They're trying to get that message across and then they fail to give actual examples. What I find interesting, too, is that John Edwards last night barely gave a nod to the issue of terrorism...

COSTELLO: Well, the tax cuts for the...

JACOBUS: ... and that's...

COSTELLO: The tax cuts for the top 2 percent of Americans, or top 1 percent of Americans, they're certainly getting that point across.

JACOBUS: Well, I don't know if they are getting that point across because they've been saying it over and over again and most Americans know that taxes are generally good for the economy and tax cuts are good for America.

But I find it interesting that they barely gave a nod to the issue of terrorism and al Qaeda. The only thing that Edwards had to say about it last night was essentially almost word for word what the president has been saying.

So it's really not something the American people want to see their leaders do, is sort of forget about and shove aside the most important issue of our time. So that's where I think the Democrats are going to have a real problem. They really don't seem to have any answers. And it's a question of leadership.

So if we have to keep going back to John Kerry's Vietnam service to look for leadership and ignore his liberal voting record in the Senate and ignore the fact that he doesn't have any answers for the most important issues of the day, quite frankly, that does benefit Republicans.

COSTELLO: Well, let's listen to Al Sharpton, because he really -- I don't want to say negative, but he certainly -- well, let's put it in Bob Franken's words. He played Dr. No last night.

Let's listen to Al Sharpton.

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REV. AL SHARPTON (D), FORMER PRESIDENTIAL CANDIDATE: The promise of America guarantees health care for all of its citizens and doesn't force seniors to travel to Canada to buy prescription drugs they can't afford here at home. The promise of America provides that those who work in our health care system can afford to be hospitalized in the very beds they clean up every day. The promise of America is that government does not seek to regulate your behavior in the bedroom, but to guarantee your right to provide food in the kitchen.

(END VIDEO CLIP)

COSTELLO: You know, and I think that the subject of health care really reaches out to many Americans, because there are problems with that big Medicare bill now. A lot of people don't understand it and some say it's not working.

JACOBUS: Well, yes, there are -- obviously health care is a big issue in this campaign and I'd like to note that John Kerry, in his 19 years in the Senate, has never introduced a health care bill. So I think you have to look at where his commitment really lies.

I'd like to say one thing about Al Sharpton last night. I think overall he was somebody that people were looking to to be entertaining and to stick with the carefully choreographed theme of the night, which was one of hope is on the way. We saw the signs being raised at one time like Rockettes.

Al Sharpton, in my view, last night, was a train wreck for the Democrats. He went over the time. He was off message. He came off as very, very angry. And while the Democrats, on the one hand, are trying to say this is an America -- this is -- there's two Americas. And then you have John Edwards then talking about the fact that he's had all this opportunity which has allowed him to achieve a lot of his goals, it's an inconsistent message.

And I think that they have gone into this convention really without quite having a message and not really knowing what they wanted to get across to the American people, and they don't have a health care plan for the American people.

COSTELLO: Again, many Democrats would probably disagree with you.

JACOBUS: Well, I'm sure they would.

COSTELLO: But how negative...

JACOBUS: They're having a great time at their party this week.

COSTELLO: How negative do you think that the Republican national convention will be?

JACOBUS: Well, I think that certainly Republicans should show contrast between the Bush record and the Kerry voting record. Kerry does not want people to look at his record. In fact, he calls that negative campaigning and attacks and he has said don't look at what I done in the past to see what I would do in the future, which I find very disturbing because we have nothing else to go on.

But I think there is an opportunity for the Republican national convention to be very positive and to reintroduce our guys. Quickly, we haven't seen a lot of Dick Cheney. And I think when we see him again...

COSTELLO: Well, we certainly...

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COSTELLO: He's been campaigning.

JACOBUS: Well, he's been campaigning at local levels for candidates. But on the national scale, whenever he comes out and he's forceful and he has the limelight, he tends to do very well. So I think that that's going to be a very pleasant surprise, to have Dick Cheney out there. He's very authentic and there is a real contrast between Dick Cheney and John Edwards. And I think Dick Cheney has the edge on credibility.

COSTELLO: OK.

JACOBUS: So when the Republicans have their convention, I think everybody will have a sigh of relief...

COSTELLO: All right...

JACOBUS: ... that, hey, the grownups are in town now.

COSTELLO: All right, spoken like a true Republican strategist.

Thank you for joining DAYBREAK this morning.

JACOBUS: Thank you.

COSTELLO: We appreciate it.

Coming up, Michael Moore and the Democrats -- some might call that a match made in heaven. But some Democrats have another view of Moore and his "Fahrenheit 911." More on that story later on DAYBREAK.

And a bittersweet day for one woman who took the D.C. Metro and found herself handcuffed and detained by D.C. police, actually, Metro police. The reason why may shock you. We'll explain later.

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COSTELLO: If you've ever taken the Metro, the subway system in Washington, D.C., you know how clean it is. And one of the reasons it's so clean is because you are not allowed to eat in a Metro station. But one woman says they're carrying the rule, oh, a bit too far.

MARCIANO: Is she a local that did this...

COSTELLO: She's a...

MARCIANO: Or I wouldn't have known that. I wouldn't have eaten a candy bar.

COSTELLO: Her name is Stephanie Willett. She's 45 years old and she is a local. She was riding the orange line home and she was eating a Payday candy bar. She was going down the escalator and a Metro transit police said, "You're not allowed to eat." So she stuffs the rest of the candy bar into her mouth and is chewing. And the officer says, "Hey, you're not allowed to be eating in the Metro station."

And, of course, Stephanie made some flip comment to the Metro...

MARCIANO: Oh, you don't do that to the Metro police.

COSTELLO: No. And...

MARCIANO: No.

COSTELLO: The transit officer placed her under arrest. She called for backup, put the woman in cuffs, brought her down to the police station. She spent a couple hours in a cell. She paid a $10 fine and she's going to appear in court later for chewing a Payday candy bar in a Metro station.

MARCIANO: When is the last time you had a Payday candy bar? She maybe have to be arrested for that.

COSTELLO: I never thought of that, as an aside for this. MARCIANO: A Baby Ruth, maybe a Snickers.

COSTELLO: Maybe that was the real reason, it was a Payday candy bar.

MARCIANO: But it is a clean Metro system, so I guess...

COSTELLO: It is a very clean...

MARCIANO: I wouldn't have known that. Now I do.

COSTELLO: Well, you know, they're infamous for getting a 12- year-old girl into trouble for eating a single French fry on a Metro train. They arrested her. That was back in 2000. So this is a continuing debate in Washington as to whether it's a fair system or not. So we'll keep you posted.

MARCIANO: All right.

COSTELLO: Coming up in the next half hour of DAYBREAK...

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UNIDENTIFIED MALE: We proudly cast 121 votes for John Kerry.

(END VIDEO CLIP)

COSTELLO: The delegates have spoken and given the nod to the Democratic nominee for president. We'll take you live to Boston for the latest.

And the Kobe Bryant case -- could another foul-up cost the prosecution the case? We'll have analysis with our legal eagle, Kendall Coffey.

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