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American Morning

Kerry's Speech; 'Gimme a Minute'; Kobe Bryant Case

Aired July 30, 2004 - 8:59   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: Already today, John Kerry and John Edwards turning the page on the Democratic convention, saying goodbye to Boston and hello to a very long road trip. And what about last night? John Kerry gets his chance to make the case to voters. How did he do?
And here comes the president, no longer on the sidelines. His campaign up and running yet again on this AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING. From Boston, here's Bill Hemmer.

HEMMER: Good morning, everyone. Welcome back to Boston.

Our final day of the week here as our coverage concludes on this Friday morning. And good morning. Nice to have you with us today. I'm Bill Hemmer, live here along the harbor. We've come across the water, away from the FleetCenter, as they dismantle things inside.

We've come across here, and just watching a rally with John Kerry and John Edwards here in Boston about an hour ago, saying goodbye to the city earlier today, heading across the country now on a 21-state campaign trip. Stops in about 40 different cities, trying to build on the momentum from last night, when Kerry accepted the nomination for the president and made his case to Americans to be the 44th president of the United States.

How did he do? We'll talk about that. Republican perspective in a moment from the chairman of the Bush-Cheney reelection campaign.

We'll also talk to our CNN reporters on the floor last night, on the floor of the Fleet. And we'll gauge reaction that they gathered from the delegates there.

We're in the historical Charlestown Naval Yard here, Heidi. The USS Constitution, the first ship ever commissioned by the U.S. Navy just a few short steps away. Bunker Hill just a few short steps away. It's all here.

Good morning to you back in New York.

HEIDI COLLINS, CNN ANCHOR: It is all there. And it is beautiful. Bill, thanks so much for that.

Other news now as well. Today, Secretary of State Colin Powell became the highest ranking U.S. official to visit Baghdad since the Iraq handover. He's meeting with Iraq's new president and other officials to include, that is, the new U.S. ambassador to Iraq, John Negroponte. We're going to have more on his trip in just a few moments.

For now, though, we say good morning to Jack Cafferty.

JACK CAFFERTY, CNN ANCHOR: Hello. How are you doing?

Politicians are targets, especially during an election year. They get punched around by almost everybody. But last night, Senator John Kerry's daughters talked about their dad and mentioned that they think he's a pretty good guy. And they talked about some of the things he's done that they remember growing up that sort of stuck out in their minds.

So we thought since this is a Friday, what would your kids tell the news media about you if they had to sit down at a press conference and be questioned by reporters? Am@cnn.com. We're getting some kind of cute stuff, actually.

COLLINS: Yes, we're getting some e-mails from your daughters, too. We'll show those later.

CAFFERTY: No, they're under strict orders not to write.

(LAUGHTER)

COLLINS: All right. Send it back now to Bill in Boston.

HEMMER: I'm staying -- I'm staying tuned for that, Jack.

COLLINS: Yes.

CAFFERTY: It will be a long day for you.

HEMMER: Throw the dirt around. Thanks, guys.

Back to New York in a moment here. Senators John Kerry and John Edwards literally taking that show on the road today. A long one, too.

The campaign swing that began with a rally earlier today in Boston runs two weeks, hitting 21 States. It begins with stops in Pennsylvania, West Virginia and Ohio. Bob Franken today, a look at Kerry's nomination acceptance speech last night at the FleetCenter.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): What would any convention be without the raucous confetti and balloon-drooping, podium-filled celebration at the end? And what would this Democratic convention be without the references to John Kerry's military record?

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm John Kerry, and I'm reporting for duty.

(APPLAUSE) FRANKEN: That was in case anyone needed a reminder that Vietnam veteran Kerry had fought in a war while his opponent had not.

KERRY: I will be a commander-in-chief who will never mislead us into war.

FRANKEN: The night was by design, as much personal as policy. It was that movie.

Kerry (voice-over): My promise is to lead our country to bring people together and take us to a better place.

FRANKEN: Along with the Vietnam comrades and children who described what a good guy Kerry was.

ALEXANDRA KERRY, JOHN KERRY'S DAUGHTER: To every little girl, her father is a hero. And it's taken some getting used to that my father actually is one.

JIM HASSMAN, SERVED IN VIETNAM WITH KERRY: I've witnessed his bravery and leadership under fire. And I know he will make a great commander-in-chief.

FRANKEN: And since the present commander-in-chief will have something to say about that...

KERRY: I want to address these next words directly to President George W. Bush. In the weeks ahead -- in the weeks ahead, let's be optimists, not just opponents.

(END VIDEOTAPE)

FRANKEN: Well, the convention was so last night. Time now to move on to the grueling cross-country tour, 35 States, as we said. Very little sleep -- Bill.

HEMMER: Indeed, you're right about that, Bob. You going to get some yourself? You've had a long week.

(LAUGHTER)

FRANKEN: Sleep? I've forgotten what that is. You?

HEMMER: Yes, I got it. I don't know what you're talking about. Thank you, Bob. And great to be with you throughout the week here in Boston.

So then, how are Republicans reacting to his speech last night? Marc Racicot, chairman of the Bush-Cheney reelection campaign, our guest now live from headquarters there in Arlington, Virginia.

Welcome to our program. And good to talk to you again. Good morning to you.

MARC RACICOT, CHAIRMAN, BUSH-CHENEY '04: Good morning, Bill. How are you? HEMMER: The -- I'm doing just fine. The "LA Times" and Ron Brownstein has a headline this morning saying that John Kerry is "planting a flag on Bush's turf, going after the issue of national security." How effective have Democrats been on that front this week?

RACICOT: Well, to be honest with you, I was delighted to hear him say that he wants to be judged by his record. Because that's what we've been talking about since the campaign began in March. And I think that you take a look at records to determine what it is that people will do in the future.

When you look at John Kerry's, in addition, of course, to other issues, like voting for increased taxes 350 times, he also has voted as a member of the Senate to cut virtually every weapons system that we now use on the war on terror. He voted for deep cuts in intelligence. He voted for the first -- he voted for the Iraq war and then voted against the appropriations.

So I think, Bill, this is an -- this is an argument that we welcome. It is to allow the American people to make comparisons between the -- the steady approach of the president and the, quite frankly, contradictory, conflicting and sometimes absolutely mysterious record of Senator Kerry, particularly in reference to Iraq. My great hope was that he would explain last night what his position was. And I think he missed an opportunity to do that.

HEMMER: You mentioned Iraq twice in your answer. He mentioned it by name at least three times last night, in part, one time saying, "As president, we only go to war because we have to." He voted in favor of the war. What is your strategy for attacking that part?

RACICOT: Well, you know, he -- he spent 20 years in the United States Senate. And out of a 7,000-word address last night he only spent 70 -- or 70 words of talking about his record. A part of that record, of course, focuses on his part in the intelligence community.

He served on the Intelligence Committee for eight years, Bill. And there were 48 public hearings during that period of time. And he missed 37 of them.

And when you talk about his record on Iraq, you know, he used the same intelligence the president did and the prime minister of Britain did, all of the civilized nations of the world did, and he made the same decision all of them made. And then he voted against the appropriations to buy everything from fuel to pay for health care for reservists and body armor.

And I think that's just inexplicable to the American people. And I know that we were hoping that he would explain his position.

I mean, what would he have done differently? He has condemned the coalition that the president put together, yet it's comprised of over 30 nations, 17 out of 26 nations in NATO, with a very broad coalition. So quite frankly, I think that the president's record is crystal clear. And to this very moment, we still don't know exactly what it is that John Kerry would do based on his record, which is what he asked us to focus upon.

HEMMER: But at this point in the campaign, the Democrats clearly are on the main stage. And will be for some time. Your convention doesn't start for a full month. How concerned are you that the Democrats have gotten off to a good head start?

RACICOT: Well, we won't know how to measure everything precisely. Of course, there'll be, I'm certain, by the observers of the process, some polling done. And we'll get some reflection, a snapshot of where everything is probably by Monday or Tuesday.

But to be very honest with you, what we're going to do is follow what we have always said would be our plan, and that is to -- once the convention was over, the president would become more fully engaged -- the Democratic convention that is. And he, too, would be involved with the American people.

So he and the vice president and first lady will have a very ambitious schedule and will be talking to the American people. We've been -- we've been expecting, of course, that there would be a large bounce, which has been tradition for a challenger when you challenge an incumbent, and that we would see some separation in the poll numbers.

We haven't seen that yet. But we're still anticipating. We're playing as if we're behind.

We know it's going to be a very, very difficult contest. But we've got a great candidate, a great organization. We have great policies. And I think the president of the United States has a very solid connection with the American people.

HEMMER: Just about less than 100 days from now. Marc Racicot, thanks, live in Arlington, Virginia, with the Republican reaction to what we all witnessed here in Boston.

Much more in a moment here. Back to Heidi now in New York.

COLLINS: Bill, thanks.

Secretary of State Colin Powell made a surprise visit to Iraq today. He arrived in Baghdad unannounced. And after a series of meetings with U.S. and Iraqi officials, he reaffirmed American support for Iraq's new government.

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: The leaders of Iraq are very courageous. They put themselves at risk every day. We have to make sure that these insurgents understand that we will not be deterred, they will not be deterred. The insurgents, the terrorists will be defeated. There can be no other option. The Iraqi people deserve freedom.

(END VIDEO CLIP)

COLLINS: Insurgents have staged a number of violent attacks in the months since the handover of power in Iraq.

Ten minutes past the hour now. Time for a look at some of today's other news with Daryn Kagan.

Daryn, to Uzbekistan.

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

An Israeli official says at least two people have been killed in explosions in Tashkent. That is the capital of Uzbekistan. One of the blasts believed to be a suicide bombing occurred outside the Israeli embassy. A second explosion was in the vicinity of the American embassy. A State Department official tells CNN that everyone at the U.S. embassy has been accounted for.

A U.S. official is confirming the arrest of a high-level al Qaeda suspect in Pakistan. Ahmed Kafan Galani (ph) is the FBI's most wanted terrorist. He's on that list in connection with the 1998 bombing of the American embassy in East Africa. He's being interrogated by Pakistani officials at an undisclosed location but may be turned over to American authorities.

Here in the U.S., top members of the 9/11 Commission face a Senate panel today. The Governmental Affairs Committee is considering whether to implement some of the 41 recommendations laid out in last week's report, including the appointment of a national intelligence director. The hearing is set to begin less than two hours from now.

Rainy weather caused flash floods in parts of South Carolina yesterday. A sudden rainstorm flooded streets in Greenville. Some homes were evacuated, people were moved out with rafts and fishing boats. The storm also knocked out power in parts of downtown Greenville.

Boy, we have Texas under water, South Carolina. What is going on in the weather world? Rob Marciano is in for Chad Myers. We know that much.

(WEATHER REPORT)

HEMMER: Back here in Boston now, what better way to end this convention week with our esteemed "Gimme a Minute" panel? CNN political contributor, Donna Brazile, leaving Boston earlier today, back in D.C., the author of "Cooking With Grease: Stirring the Pots in American Politics."

Donna, good morning to you.

DONNA BRAZILE, FMR. GORE CAMPAIGN MANAGER: Good morning, Bill.

HEMMER: Also in Washington, Cliff May, former RNC communications director now with the Foundation for Defense of Democracies, sitting in for Jonah this week.

And in New York, Andy Borowitz, from borowitzreport.com.

Drew, good morning.

And welcome to all three of you.

ANDY BOROWITZ, BOROWITZREPORT.COM: Reporting for duty.

HEMMER: Donna -- right. Aren't we all.

Senator Edwards last hour live here said that John Kerry hit it out over the green monster. I think I know what you're going to say. Was it a homerun or not last night for him?

BRAZILE: It really was. He did what he had to do. He gave an inspiring speech, a passionate speech. And he persuaded those who had doubts about who he was. He persuaded them to join us.

HEMMER: Cliff, do you agree?

CLIFF MAY, FOUNDATION FOR THE DEFENSE OF DEMOCRACIES: Basically I do. Let me be fair and balanced here. On the negative side, there were no new ideas, no big ideas, no compelling ideas we're dying to talk about. On the positive side, as Donna says, he did what he had to do.

In a nutshell, the Kerry concept here is that the electorate is split pretty much in half. There are the undecided voters. He feels they're dissatisfied with Bush, if he could be an acceptable alternative, they won't split 50-50, they'll split 60-40 or 70-30, and then he wins. And that's the concept.

HEMMER: Well, just for the record, we're the world's news leader by the way.

MAY: That's right.

HEMMER: Andy, what about it?

BOROWITZ: You know, I have to apologize. I did not see the speech. I was partying with Bono and I completely lost track of time.

HEMMER: Listen, it's a "Beautiful Day," by the way. Let's start with Cliff on the second one. Best and worst of the week, what do you say?

MAY: Best is probably Barack Obama. He was very impressive. He's a rising star, no question about it.

The worst, well, Teresa Heinz Kerry. Very, very rich women with a chip on their shoulder are not pleasant to see.

I thought Al Sharpton was sort of the crazy uncle from the attic. And Michael Moore walking around there I thought gave a bad odor.

HEMMER: That's a pretty good list.

Donna?

BRAZILE: Well, let me just tell you, I have a long list of best. Barack also was my favorite.

I thought Teresa Heinz, again, did what she had to do. She introduced herself and she did very well.

The worst, of course, was those balloons and the confetti. Something happened up there. And that was just tragic, because everyone was waiting for it, and, you know, it was one of those Kodak moments.

HEMMER: Andy, what was it, Bono?

BOROWITZ: Best was Obama. Worst was overhearing Ben Affleck say, pretend I'm your gerbil, baby.

HEMMER: Donna, let's talk about Florida. Earlier in the week, a head of one voting rights group down there in the Sunshine State said, "We are not safer now than we were in 2000." Do you expect nightmares again November 2 there?

BRAZILE: Well, everyone is doing the best possible job to remove all of those chads. But now we have problems with the voting -- voting machines. We still have problems with the voter registration list, the (UNINTELLIGIBLE). I hope we get our act together, otherwise we're not ready to vote down there in Florida.

HEMMER: Ultimately, though, is the state still close in Florida, Cliff?

MAY: Yes, Florida is a close state. I don't know what they're going to do about it. I think they should probably just go back to paper ballots. You write on it, you fold it in half and you put it in the box.

HEMMER: Andy, you got your No. 2 pencil?

BOROWITZ: You know, I've seen those machines. They're really confusing. And the only instructions on screen that I understood were, "Vote for Bush." That was it.

HEMMER: Cliff...

(CROSSTALK)

HEMMER: Yes. What did we miss the following -- this past week? What's under the radar? Cliff, start us off.

MAY: Clearly Iran. Iran is a country run by a rogue dictatorship. It's a country that is conspiring with terrorists, has for 20 years.

Hezbollah killed Americans in 1993, Al Qaeda, we know more about that from the 9/11 Commission. This week, they're enriching uranium and taking the seals off the nuclear equipment, seals put on by international inspectors.

This is why Bush said he went to war in Iraq, because of just such a situation. Kerry says this is the kind of situation that would spark him to act. Kerry didn't talk about it, Bush didn't talk about it, so the media's not talking about it.

HEMMER: Donna, how about you?

BRAZILE: Well, I was in a little bubble this week up in Boston. The media covered all of the activities for delegates, all of the excitement on -- on the floor. But there was a lot of training taking place across the city. And I was so impressed by the number of activists who came in without passes to get into the arena. But they wanted to be in the game.

HEMMER: Andy? Wrap it up.

BOROWITZ: Bill, the DNC is still trying to determine who hired Dick Cheney to cue the balloons.

(LAUGHTER)

BRAZILE: That's right.

HEMMER: Those floating balloons, that's right.

BRAZILE: Yes.

HEMMER: Hey, Donna, great job on the delegate cam this past week, by the way.

BRAZILE: Hey, I can now apply to CNN for a real job.

HEMMER: Don't count on it.

BRAZILE: Oh!

HEMMER: Have a great weekend. Donna, Cliff, Andy, thanks. Good to see all three of you. Talk to you again soon -- Heidi.

COLLINS: Bill, thanks a lot.

Still to come this morning, John Kerry and the Democrats got the spotlight for a week. Next, it's President Bush's turn. The incumbent takes his message on the road.

Also ahead, one man makes the "Extra Effort." And authorities say four children are rescued from a convicted child molester because of it. We'll talk to the hero and one of the officers who helped him.

And the defense in the Kobe Bryant case says Bryant's accuser has a lucrative reason to lie, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Attorneys in the Kobe Bryant rape case will be back in court today arguing over the release of transcripts from a closed-door hearing last month. A portion made public yesterday shows Bryant's accuser has received money from a state victim's fund. A revelation that has the defense crying foul.

Cynthia Stone from the Colorado Coalition Against Sexual Assault joins us now from Eagle, Colorado with her reaction.

Cynthia, good morning to you. The accuser now in this case has received $17,000 from this fund. Why does the fund exist in the first place?

CYNTHIA STONE, COLORADO COALITION AGAINST SEXUAL ASSAULT: Well, in 1981, Colorado state legislature decided that victims should not be re-victimized by having to bear a financial burden because of a crime that happened to them. This money doesn't come from taxpayer dollars, it comes from fines on some felony convictions, even some traffic fines.

We feel that it's absurd for anybody to think that a victim makes money off of this fund. This fund is there just to help out with some of the out-of-pocket expenses that a victim incurs because of the crime that happened to them.

COLLINS: But $17,000 for mental health reimbursement, $2,300 for lost wages. And the defense attorney, Pamela Mackey, very annoyed by this, and actually says that this is a rich incentive for the accuser to pursue false claims against Kobe Bryant. Your reaction?

STONE: Again, we feel that's absurd. First of all, the limit on this is $20,000. And lost wages is well within those bounds. This woman is within all of the guidelines set forth in 1981 by the state legislature.

COLLINS: If Bryant's accuser is found to be not credible, or Kobe Bryant is found to be not guilty, what happens to this money at that time?

STONE: Well, I'm not sure, frankly, on that one. But let's -- let's think about this.

First of all, there was a sheriff that said that there was enough evidence to charge this man, a D.A. that thought there was enough evidence to charge him, and a district court judge that is going on with the trial. So, in other words, this woman is considered a victim under Colorado's victims' rights amendment and under the Victims' Compensation Fund.

COLLINS: All right. Quickly, Cynthia, before we let you go, as you know, the judge has decided to allow part of the accuser's sexual history admissible in court. Your thoughts about that now?

STONE: Well, we feel it's a dangerous precedent. But we're hoping that people do not rush to judgment on this. None of this evidence has been put in context with other evidence. It hasn't been cross-examined and it hasn't been rebutted yet.

COLLINS: All right. Cynthia Stone this morning, spokesman for the Colorado Coalition Against Sexual Assault. Thanks again, live from Eagle, Colorado, this morning. Still to come today, John Kerry and John Edwards are heading out of on the road. So what kind of obstacles can they expense -- expect, that is -- once the glow of the convention is gone? Our own team of political insiders takes a look next on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: All righty. Jack's back with the "Question of the Day."

CAFFERTY: Yes. Thanks, Heidi.

Politicians get called a lot of things. John Kerry is called a flip-flopper and aloof and arrogant and cold. But his daughters, well, they call him dad. And they think he's pretty cool.

Last night, they told stories about how John Kerry once saved a hamster from a watery doom by actually giving it CPR. I would pay money to see that tape. And how he's dedicated to making sacrifices for his country.

So, in light of the fact that it's Friday, we asked the following kind of silly question: What would your kids tell the news media about you?

Bob in a town in Pennsylvania I can't pronounce writes, "My daughters would say, 'he's never wrong. Just ask him.'"

Kay in central Florida, "I raised my children right, which is hard to do these days, but not impossible. It won't matter what they say. They have the right to their opinion. I would hope they say I did the best I could and that they love me no matter what I do, the same as I would tell them."

Ken in Middletown, Connecticut, "My kids wouldn't tell reporters anything. They've been taught never to talk to strangers, and there ain't nothing stranger than the media."

And -- and Wistar -- he didn't say "ain't." I put that in. Wistar in Flowery Branch, Georgia -- is that a real name and place, Wistar and Flowery Branch, Georgia? I think it might be.

UNIDENTIFIED MALE: Yes, it is.

COLLINS: Yes, apparently it is.

CAFFERTY: See that? God is here.

"Who cares what my kids think. I want to hear Bush's daughters debate Kerry's daughters." Was that Ellie (ph) who said yes, it is?

UNIDENTIFIED MALE: No, that was Ted.

CAFFERTY: Oh, it was Ted. OK.

COLLINS: We have voices all over the studio today. CAFFERTY: It's pretty cool, don't you think?

COLLINS: Well, frightening, actually.

All right. We're going to give it back to Bill in Boston now, talking about the other side of the coin. We're going to hear more from the Bush campaign, too. Yes.

HEMMER: Yes, that we will. Hey, Heidi, thanks. Thanks, Jack, as well.

We'll turn our attention away from the Kerry camp to his main opponent. A live report from the trail with President Bush in a moment.

Also in a moment here, our own political team standing by. And Scott Peterson's defense team suffers a couple of losses in court.

Back in a moment here on AMERICAN MORNING. And back to Boston right after this.

(COMMERCIAL BREAK)

COLLINS: It's about half past the 9:00 hour now. I'm Heidi Collins in New York today. Bill Hemmer is in Boston, as you know, wrapping up our coverage of the Democratic National Convention.

Good morning, Bill.

HEMMER: Hey, Heidi, good morning.

We are on the harbor today, Boston Harbor here, right where the Charles River and the Mystic River come together here, historical Charlestown Naval Yard. And we are with the Election Express today, too. We're a special guest (ph), election '04, CNN's campaign bus sitting outside here. We're going to be there from time to time over the next three months as this campaign moves forward.

In the meantime, though, John Kerry and John Edwards moving forward as well, putting the FleetCenter and Boston behind them, traveling now by bus as they start a very long road trip. They had a rally saying goodbye about two hours ago live here in Boston, 3,500 miles, 21 states. They'll wind up in Seattle, Washington. In a few moment, we'll talk to Kelly Wallace, Ron Brownstein, Joe Johns, get their perspective from last night and the final night of convention.

Also, Heidi, on Monday, we're going to be back with the bus live in Flint, Michigan. My guests will be Senator John Kerry live in Michigan come Monday morning, as the campaign rolls on. We'll get to our panel here in a moment. Back to you now in New York -- Heidi.

COLLINS: All right. Very good, Bill. Thanks.

As promised, President Bush waited until the end of the Democratic convention to resume his campaign. Today he begins a tour of Midwestern swing states, with stops in Grand Rapids, Michigan; Cleveland, Ohio; and Springfield, Missouri. And Kathleen Koch is there in Springfield to tell us all about this.

Kathleen, good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Heidi.

Well, as you said, after a week off from campaigning, a week out of the spotlight, President Bush is very intent on reclaiming it today. On the campaign trail today, we're told that he's going to be unveiling a retooled stump speech. It will be, says a campaign spokesman, a bit shorter on criticism of his opponent, a bit shorter on harsh rhetoric. The president will go more into a broader vision, his themes, his hopes for the next four years.

Now, this kicks off a very aggressive month of campaigning in August. We're told that throughout the month, the president will be aggressively on the road, highlighting a different campaign theme every week.

Now, today it's just one example, I guess, of what August has in store. The president will be making five -- count them -- five stops in three different battleground states, starting here where we are today in the state of Missouri. A bit of friendly territory, I suppose you could say, for the president. He won it by just three percentage points back in 2000.

Aides do tell us that the president, while the Democratic convention was going on, he was watching, he was paying attention. But the chairman of the president said, the Bush-Cheney campaign says that President Bush is ready to stack his record against Kerry's.

(BEGIN VIDEO CLIP)

RACICOT: This is an argument we welcome. It is to allow the American people to make comparisons between the steady approach of the president, and the, quite frankly, contradictory, conflicting and sometimes absolutely mysterious record of Senator Kerry, particularly in reference to Iraq. My great hope was that he would explain last night what his position was. And I think he missed an opportunity to do that.

(END VIDEO CLIP)

KOCH: Now, here in Springfield, Illinois -- I mean, Springfield, Missouri, you can see gathered behind me a very enthusiastic crowd here at Hammond's Field (ph). Probably about 8,000. That's what the stadium holds. So it's packed to the gills.

The president will be speaking from the pitcher's mound. This crowd very intent on seeing him strike out his opponent -- Heidi.

COLLINS: The heart and soul of America tour. All right. Kathleen Koch, thanks so much for that this morning.

Sending it back to Bill now on the bus, outside the bus, on the floor. Where we going? HEMMER: Kind of near the bus. You're right. We call it "On the Floor." That was our segment at this time throughout the week, talking with our own political reporters on what the stories they're chasing and what they're hearing, the story behind the story.

We're not on the floor. We're on the water today. Kelly Wallace, Ron Brownstein, Joe Johns my guests here in Boston yet again on the final day.

Good morning to all three of you.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning.

(CROSSTALK)

RON BROWNSTEIN, "LA TIMES": We're all on a mat.

HEMMER: Well, finally the balloons came down. So...

WALLACE: Yes.

HEMMER: Joe, I know the delegates overwhelmingly treated this with open arms last night with John Kerry. You made an interesting comment last night. It did not make them feel warm and fuzzy.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Right. And that's true.

Well, when I talked to people immediately after the speech, they really touched on the policy issues. They were really interested in what he had to say about the military, also what he had to say about family values, many of these themes that the Bush administration has talked about so much. And what was fascinating to me, though, is what they came away with was that, "He didn't make me feel warm and fuzzy, but that's OK."

HEMMER: (UNINTELLIGIBLE) hear that?

BROWNSTEIN: Warm and fuzzy isn't what John Kerry does. I mean, what was he -- what was this whole week about? It was about strength, overwhelmingly, all the Vietnam veterans, the message from John Kerry -- in fact, I mean, the real story of last night, I think I talked to some of the Democratic analysts, people working around the campaign, was that John Kerry went head on at what George Bush has assumed would be his greatest strengths, values, integrity, "I will restore trust and credibility to the Oval Office," playing off the famous phrase from Bush from 2000.

And above all, his management of the war on terror. This was a frontal assault which I think took the Bush people somewhat by surprise.

WALLACE: I also would say people were somewhat relieved. The people I talked to thought he did even better than we wanted him to do.

HEMMER: Because the expectations were lower?

WALLACE: Well, expectations lower because he's not known to be a very charismatic, great speaker. And they felt like he delivered.

I want to say something, though, because I covered him in the early days of Iowa. And I felt the big focus that the campaign aides said, he had to connect, he had to connect. He clearly connected with the hall. We'll find out if he connected with people at home. But those early days in Iowa, when no one thought he was going to win, he was connecting in those small town hall meetings. It seem like he did that last night.

HEMMER: But Ron, go forward just a little bit here.

BROWNSTEIN: Yes.

HEMMER: You're talking with the Bush people.

BROWNSTEIN: Yes.

HEMMER: What are they telling you last night?

BROWNSTEIN: Well, look, first of all, Republicans understand they are in a serious race now. One of the Bush advisers said to me, "We realize now we have to win it."

John Kerry is not going to lose it. This isn't Michael Dukakis. It isn't George McGovern.

Having said that, I think they see three openings that Kerry left for them in his speech. One, no really more specifics about Iraq, what he would do next, and whether he thought it was a mistake to do it in the first place.

Two, can he make it add up? A lot of promises of new spending, health care, education, not as much talk about how he's going to pay for it.

Third, the big doughnut between Vietnam and right now. You know, listening to this convention, you might have thought John Kerry was the victim of an alien abduction. I mean, last seen in Vietnam in 1969, he turns up in an Iowa cornfield last year running for president.

WALLACE: The Republican...

(CROSSTALK)

HEMMER: (UNINTELLIGIBLE) a big doughnut.

WALLACE: I like that. That's good. That's Ron Brownstein.

But no, the Republicans have already put out a release, or, you know, their own little note saying 73 words out of a 5,000-word speech about his Senate record. They're going to say, 19 years, what did he do? President Bush is expected today to talk about saying results matter. So they'll say what you did in the Senate or didn't do matters.

HEMMER: Want to go to Joe across the room.

JOHNS: And one of the things that's happened on Capitol Hill is Republicans are saying he has a pretty unremarkable record and -- in terms of legislation, in terms of a variety of other things. But what they say is he's worked on committees, he's done a good job, they say, on Vietnam. And they think that if he gets into a debate over what he did on Capitol Hill, he'll be just fine, because he does know the system and he's an inside player.

HEMMER: Well, we're off and running, aren't we, huh, guys? Time to get on the bus.

John, Ron, Kelly, thanks.

BROWNSTEIN: Beautiful spot. Thanks.

HEMMER: You got it.

WALLACE: Yes.

HEMMER: We've got to run here from Boston. Back in a moment as our coverage continues. Now to the CNN Center and Daryn Kagan yet again, looking at other news there.

Hey, Daryn.

KAGAN: Whoever's cell phone is ringing, they can go answer that now.

We begin the headlines with an apparent suicide bomber which has struck outside the Israeli embassy in the Uzbek capital Tashkent. An Israeli official says two people believed to be Uzbekistani citizens have been killed. A second explosion was reported in the vicinity of the American embassy. A State Department official tells CNN that everyone at the embassy has been accounted for.

Here in the U.S., the Department of Homeland Security has reportedly received detailed information about Arab-Americans, including how many people of Arab background live in certain zip codes. The Census Bureau tells "The New York Times" such sharing of information is standard practice and some civil liberty and advocacy groups compare it to the compilation of data on Japanese-Americans during World War II.

Jurors in Scott Peterson's murder trial will be back in court on Monday. Yesterday, the judge denied a defense motion for a mistrial and dismissal of the charges. Peterson's attorney, Mark Gergaos, had claimed that a detective fabricated part of his testimony. But the judge decided there was no misconduct.

And finally, the New York Yankees are looking to build a new $700 million open-air stadium. It would be right across from where Yankee Stadium now stands in the Bronx. A report in "The New York Times" today says the team is willing to pay much of the cost. The team plans to deliver a final proposal to New York's Mayor Bloomberg within the next few weeks.

Quite a turnaround from the New York Yankees, Rob. You know, they are threatening to go to New Jersey. They wanted to go to Manhattan. But this plan called for them to stay in the Bronx and foot much of the bill.

ROB MARCIANO, CNN METEOROLOGIST: At least they'll stay in the Bronx. Even though they're moving from the house that Ruth built. Got to stay in the Bronx.

(WEATHER REPORT)

COLLINS: Still to come now, Andy Serwer is "Minding Your Business." He's got evidence that money does buy happiness. He'll tell you about that.

Also ahead, an Amber Alert is issued, four young children are found safe and sound. We'll hear from the man their mother calls a hero in our "Extra Effort," ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Markets are open. Andy has a check on the early numbers. And is it true the more money you have, the less sad you get?

CAFFERTY: Yes.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Yes.

COLLINS: OK.

SERWER: All right. Starting with this morning, Jack, let's check the numbers on the Big Board.

Stocks are trading down. Maybe it's Ben Affleck's fault. I'm just blaming him for stuff. Dow down nine points.

What's trading? Target's selling its Mervin stores. That stock is moving to the upside. Chevron Texaco, huge profits.

You're concerned about the price of gas? Buy oil stocks. They're just going through the roof, 52 cents to $96. That stock is up 50 percent over the past year.

Usher's got a new MasterCard. You know Usher, right, Jack? He loves him. He's got a new album out, "Confessions." Jack loves this video.

SERWER: Yes. OK. It's a new card. It's the first celebrity MasterCard debit card. Maybe Usher can use it to buy some diapers and baby food, because I heard he's got a baby on the way with a girlfriend. I know this pop culture stuff.

Now, money can buy happiness, Jack. It's really true. And we now have empirical evidence. A study by a periodical called "Health and Quality of Life Outcomes" -- gee, I want to subscribe to that -- look at this.

Numbers from the CDC here. Number of blue days, that's days you're depressed. People have more money, only depressed two days a month. If you make less than $15,000, you're depressed six -- only six days a month. I'd be depressed -- yeah, I can see how that would work. Can't you? Strong correlation there.

CAFFERTY: Yes. Well, if you have a lot of money, you can buy things to alleviate the sadness.

SERWER: Yes.

CAFFERTY: If you know what I mean.

SERWER: Yes, I do know what you mean.

COLLINS: All right, guys. We'll be back in just a moment.

Still to come this morning, if an Amber Alert went out, would you be alert enough to spot the kids or the car that the police were looking for? Well, one man was, and he's being called a hero. We'll hear from him on our "Extra Effort" on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Now for an update on a legal dispute we reported back in March, one involving Western Kentucky University and the media empire of the Italian prime minister, Silvio Berlusconi.

The university claims that a character, this character named Gabibbo, on a satirical TV show produced by one of Berlusconi's companies, MediaSet, is similar to its mascot, Big Red. All too similar, in fact. And the university is alleging that MediaSet copied its image.

(BEGIN VIDEO CLIP)

GARY RANSDELL, PRESIDENT, WESTERN KENTUCKY UNIVERSITY: The officials with the Italian television station, when they actually came up with -- with the concept, they saw Big Red after his performance presumably at an NCAA basketball tournament and decided that they might take a run at a similar image.

(END VIDEO CLIP)

COLLINS: Western Kentucky University is taking legal action against MediaSet. And MediaSet is threatening to respond in kind. Some may see this as a silly matter...

SERWER: Yes.

COLLINS: ... involving puppets bickering.

CAFFERTY: No.

COLLINS: But those involved in the lawsuit obviously feel it is an important legal matter. Recently, Bill Hemmer spoke with MediaSet's legal counsel, Stefano Longhini, in Milan, Italy, asking for their position on the lawsuit filed by Western Kentucky University, and his licensing agent, Crossland Enterprises. Mr. Longhini's answers are interpreted by Michael Crookshank.

(BEGIN VIDEOTAPE)

STEFANO LONGHINI, LEGAL COUNSEL, MEDIASET (through translator): The University of Western Kentucky Crossland (UNINTELLIGIBLE) pretend that the issue relates to two puppets, when in fact this is an enormous falsehood that just clouds the issue. Big Red is a mute mascot that acts as a cheerleader on the edge of the field. Gabibbo, on the other hand, is a walking, talking character that is part of a daily satirical TV show called (UNINTELLIGIBLE).

The enormous popularity of Gabibbo is the result of investigations and reports that have over the years established him as one of the country's most credible journalists. His support for countless numbers of charitable initiatives and the defense of citizens and consumer rights. Gabibbo is also such a fierce critic of television that he would appear to be able to render any banal puppet a reliable character.

We just wanted to underline the very evident differences that exist between Big Red and Gabibbo, both in terms of profile and in terms of the graphic design, as well as in the products and merchandising. The similarities are reduced to weak and depersonalized elements that are common to countless puppets. For example, Elmo, Jelly Belly, Mr. Greedy.

Here's Mr. Greedy, and here's Big Red. The musical notes of Kim Blundel (ph), innumerable blobs, the red blood cells of the series "Exploring the Human Body," and many other Italian and European puppets that we will show in court.

Big Red is an amorphous blob, whereas Gabibbo, on the other hand, was created as a puppet with the head of a fish and a -- a wide-mouth goldfish with large eyes. And if, for example, you were to attach the head of the Disney Pixar character Nemo to a puppet, you would have a figure broadly similar to Gabibbo.

HEMMER: Here is a statement from Giorgio Mondini. He is an attorney working the case in Italy on behalf of Crossland. He says, "We are confident on the final outcome of the legal action we have taken on behalf of Western Kentucky University and Crossland Enterprises for the protection of copyright image of Big Red, of which in our opinion has been infringed on."

How do you respond to that claim in your country?

LONGHINI (through translator): Well, we are confident in a satisfactory resolution of the case. So far, we have simply tried to defend ourselves, insofar as it was very difficult to understand how a university could lend its good name to such an obviously speculative action.

We have always been convinced that the university was simply not aware of the full facts. But now enough is enough. We will react strongly against such unfair behavior against us, and we will shortly take action to claim compensation for the considerable damages caused to us by (UNINTELLIGIBLE) and Crossland. And if the University of Western Kentucky does not disassociate itself immediate from the former, that it, too, will feature in our suit.

HEMMER: The university is seeking $250 million in its suit. Are you suggesting that you will countersue?

LONGHINI (through translator): Yes, the answer is absolutely. I mean, we will make a countersuit to claim compensation for the damages that we have undergone.

I mean, (UNINTELLIGIBLE) bought from Crossland (UNINTELLIGIBLE) 54 mascots at a cost of $7,500. Now, if you do the math, that means more or less $150 per mascot. So that's the real battle. So the value of $250 million is a clear speculation and nothing more.

Moreover, the request for $250 million is nothing more than the latest in a series of media-based advertising gimmicks. In fact, in none of the legal documents has (UNINTELLIGIBLE) or the University of Western Kentucky forwarded an economic request of this type. They have merely limited themselves to asking the sum earned by Gabibbo over the years, a clear demonstration of their speculative intent, and an attempt to take advantage of the work of others.

(END VIDEOTAPE)

COLLINS: In response to MediaSet's challenge to Western Kentucky and Crossland Enterprises, a calculation of the monetary damage and the $250 million figure, Crossland's American attorney had this to say: "The measure for damages for infringement is not the amount of an initial licensee fee. It is restitution and the profits obtained by the defendants from the use of the infringing of Gabibbo and the commercial exploitation of its image."

On that note, we will be right back.

(COMMERCIAL BREAK)

COLLINS: In our weekly series, "Extra Effort," we pay tribute to those going the extra mile to help others. This morning, a man who helped four children return safely to their parents after an Amber Alert message alerted him to a car on Interstate 70 in Ohio.

Paul Bursey joins us now from Columbus, Ohio, along with police Sergeant Alex Behnen.

To the both of you, thanks so much for being with us. This is an incredible story. Paul, how did you decide to make that 911 call in the first place?

PAUL BURSEY, LED POLICE TO MISSING CHILDREN: Well, as I was traveling down I-70 going westbound, I noticed the child abduction sign. And I saw the license plate number, and happened to look right down in front of me and saw the car.

And I matched up the first three letters, and I kind of knew what the last four were. But I called the gentleman that was following me -- we were going to the same job site together -- and confirmed the last four from him. And then immediately called 911. And at that point, we got it over the air, I guess, for the police system.

COLLINS: Sergeant Behnen, how did you become involved in all of this now? Were you there? Did you respond to the call?

SGT. ALEX BEHNEN, COLUMBUS POLICE: Yes, I did. Mr. Bursey's phone call came to our radio room and immediately they dispatched that information on our radio channels. And the suspect drove down onto our precinct, and I was responding, as were other units. And we made the arrest with the help of Mr. Bursey, as far as where the individual went there at Marathon gas station.

COLLINS: What more can you tell us about the situation? The kids OK?

BEHNEN: Yes. When we arrived, the suspect had exited the car. They took him into custody without any problem. And the four kids were in the car, and they were a little bit confused as to what took place, but had no physical marks on them.

They were kind of confused. We got them some toys and calmed them down. And from that point on, you know, got the process started to get them back to their parents.

COLLINS: It's amazing. And everybody stayed safe in the...

BEHNEN: Yes.

COLLINS: ... in this situation. To the both of you, thanks so much today. Paul Bursey and Sergeant Alex Behnen, appreciate your story.

BURSEY: Thank you, Heidi.

BEHNEN: Thank you.

COLLINS: Great story it was.

Hey, you guys, it's been fun.

CAFFERTY: That's a terrific system, that Amber Alert.

COLLINS: It is.

CAFFERTY: That's a great idea.

COLLINS: It is. He's a brave guy.

Thanks for being here. Thanks for being here.

SERWER: You're welcome.

COLLINS: Bill, thanks for being there.

HEMMER: Hey, we'll see you Monday from Flint, Michigan, by the way, just so you know. We're going to stick with the bus for a while here.

Senator John Kerry is our guest live on Monday on AMERICAN MORNING. I'll talk to him in Michigan before a rally gets under way there.

You guys have a great weekend, all right?

COLLINS: All right. We will do that.

CAFFERTY: Will do.

COLLINS: We've been practicing.

HEMMER: Jack, Andy, you've got to also -- to our crew here in Boston, on behalf of the CNN family, bravo. Great job throughout the week.

Very little sleep. A lot of long hours. But they are professionals to the core. And we appreciate them and the work they do here in Boston. So thanks.

To Daryn Kagan now at the CNN Center in Atlanta.

Daryn, have a great weekend. So long now from Boston.

KAGAN: Thank you so much. Safe travels on the road in the bus. Bill, we will see you in Flint, Michigan.

HEMMER: OK.

KAGAN: Good morning from CNN headquarters in Atlanta. I'm Daryn Kagan.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired July 30, 2004 - 8:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Already today, John Kerry and John Edwards turning the page on the Democratic convention, saying goodbye to Boston and hello to a very long road trip. And what about last night? John Kerry gets his chance to make the case to voters. How did he do?
And here comes the president, no longer on the sidelines. His campaign up and running yet again on this AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING. From Boston, here's Bill Hemmer.

HEMMER: Good morning, everyone. Welcome back to Boston.

Our final day of the week here as our coverage concludes on this Friday morning. And good morning. Nice to have you with us today. I'm Bill Hemmer, live here along the harbor. We've come across the water, away from the FleetCenter, as they dismantle things inside.

We've come across here, and just watching a rally with John Kerry and John Edwards here in Boston about an hour ago, saying goodbye to the city earlier today, heading across the country now on a 21-state campaign trip. Stops in about 40 different cities, trying to build on the momentum from last night, when Kerry accepted the nomination for the president and made his case to Americans to be the 44th president of the United States.

How did he do? We'll talk about that. Republican perspective in a moment from the chairman of the Bush-Cheney reelection campaign.

We'll also talk to our CNN reporters on the floor last night, on the floor of the Fleet. And we'll gauge reaction that they gathered from the delegates there.

We're in the historical Charlestown Naval Yard here, Heidi. The USS Constitution, the first ship ever commissioned by the U.S. Navy just a few short steps away. Bunker Hill just a few short steps away. It's all here.

Good morning to you back in New York.

HEIDI COLLINS, CNN ANCHOR: It is all there. And it is beautiful. Bill, thanks so much for that.

Other news now as well. Today, Secretary of State Colin Powell became the highest ranking U.S. official to visit Baghdad since the Iraq handover. He's meeting with Iraq's new president and other officials to include, that is, the new U.S. ambassador to Iraq, John Negroponte. We're going to have more on his trip in just a few moments.

For now, though, we say good morning to Jack Cafferty.

JACK CAFFERTY, CNN ANCHOR: Hello. How are you doing?

Politicians are targets, especially during an election year. They get punched around by almost everybody. But last night, Senator John Kerry's daughters talked about their dad and mentioned that they think he's a pretty good guy. And they talked about some of the things he's done that they remember growing up that sort of stuck out in their minds.

So we thought since this is a Friday, what would your kids tell the news media about you if they had to sit down at a press conference and be questioned by reporters? Am@cnn.com. We're getting some kind of cute stuff, actually.

COLLINS: Yes, we're getting some e-mails from your daughters, too. We'll show those later.

CAFFERTY: No, they're under strict orders not to write.

(LAUGHTER)

COLLINS: All right. Send it back now to Bill in Boston.

HEMMER: I'm staying -- I'm staying tuned for that, Jack.

COLLINS: Yes.

CAFFERTY: It will be a long day for you.

HEMMER: Throw the dirt around. Thanks, guys.

Back to New York in a moment here. Senators John Kerry and John Edwards literally taking that show on the road today. A long one, too.

The campaign swing that began with a rally earlier today in Boston runs two weeks, hitting 21 States. It begins with stops in Pennsylvania, West Virginia and Ohio. Bob Franken today, a look at Kerry's nomination acceptance speech last night at the FleetCenter.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): What would any convention be without the raucous confetti and balloon-drooping, podium-filled celebration at the end? And what would this Democratic convention be without the references to John Kerry's military record?

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm John Kerry, and I'm reporting for duty.

(APPLAUSE) FRANKEN: That was in case anyone needed a reminder that Vietnam veteran Kerry had fought in a war while his opponent had not.

KERRY: I will be a commander-in-chief who will never mislead us into war.

FRANKEN: The night was by design, as much personal as policy. It was that movie.

Kerry (voice-over): My promise is to lead our country to bring people together and take us to a better place.

FRANKEN: Along with the Vietnam comrades and children who described what a good guy Kerry was.

ALEXANDRA KERRY, JOHN KERRY'S DAUGHTER: To every little girl, her father is a hero. And it's taken some getting used to that my father actually is one.

JIM HASSMAN, SERVED IN VIETNAM WITH KERRY: I've witnessed his bravery and leadership under fire. And I know he will make a great commander-in-chief.

FRANKEN: And since the present commander-in-chief will have something to say about that...

KERRY: I want to address these next words directly to President George W. Bush. In the weeks ahead -- in the weeks ahead, let's be optimists, not just opponents.

(END VIDEOTAPE)

FRANKEN: Well, the convention was so last night. Time now to move on to the grueling cross-country tour, 35 States, as we said. Very little sleep -- Bill.

HEMMER: Indeed, you're right about that, Bob. You going to get some yourself? You've had a long week.

(LAUGHTER)

FRANKEN: Sleep? I've forgotten what that is. You?

HEMMER: Yes, I got it. I don't know what you're talking about. Thank you, Bob. And great to be with you throughout the week here in Boston.

So then, how are Republicans reacting to his speech last night? Marc Racicot, chairman of the Bush-Cheney reelection campaign, our guest now live from headquarters there in Arlington, Virginia.

Welcome to our program. And good to talk to you again. Good morning to you.

MARC RACICOT, CHAIRMAN, BUSH-CHENEY '04: Good morning, Bill. How are you? HEMMER: The -- I'm doing just fine. The "LA Times" and Ron Brownstein has a headline this morning saying that John Kerry is "planting a flag on Bush's turf, going after the issue of national security." How effective have Democrats been on that front this week?

RACICOT: Well, to be honest with you, I was delighted to hear him say that he wants to be judged by his record. Because that's what we've been talking about since the campaign began in March. And I think that you take a look at records to determine what it is that people will do in the future.

When you look at John Kerry's, in addition, of course, to other issues, like voting for increased taxes 350 times, he also has voted as a member of the Senate to cut virtually every weapons system that we now use on the war on terror. He voted for deep cuts in intelligence. He voted for the first -- he voted for the Iraq war and then voted against the appropriations.

So I think, Bill, this is an -- this is an argument that we welcome. It is to allow the American people to make comparisons between the -- the steady approach of the president and the, quite frankly, contradictory, conflicting and sometimes absolutely mysterious record of Senator Kerry, particularly in reference to Iraq. My great hope was that he would explain last night what his position was. And I think he missed an opportunity to do that.

HEMMER: You mentioned Iraq twice in your answer. He mentioned it by name at least three times last night, in part, one time saying, "As president, we only go to war because we have to." He voted in favor of the war. What is your strategy for attacking that part?

RACICOT: Well, you know, he -- he spent 20 years in the United States Senate. And out of a 7,000-word address last night he only spent 70 -- or 70 words of talking about his record. A part of that record, of course, focuses on his part in the intelligence community.

He served on the Intelligence Committee for eight years, Bill. And there were 48 public hearings during that period of time. And he missed 37 of them.

And when you talk about his record on Iraq, you know, he used the same intelligence the president did and the prime minister of Britain did, all of the civilized nations of the world did, and he made the same decision all of them made. And then he voted against the appropriations to buy everything from fuel to pay for health care for reservists and body armor.

And I think that's just inexplicable to the American people. And I know that we were hoping that he would explain his position.

I mean, what would he have done differently? He has condemned the coalition that the president put together, yet it's comprised of over 30 nations, 17 out of 26 nations in NATO, with a very broad coalition. So quite frankly, I think that the president's record is crystal clear. And to this very moment, we still don't know exactly what it is that John Kerry would do based on his record, which is what he asked us to focus upon.

HEMMER: But at this point in the campaign, the Democrats clearly are on the main stage. And will be for some time. Your convention doesn't start for a full month. How concerned are you that the Democrats have gotten off to a good head start?

RACICOT: Well, we won't know how to measure everything precisely. Of course, there'll be, I'm certain, by the observers of the process, some polling done. And we'll get some reflection, a snapshot of where everything is probably by Monday or Tuesday.

But to be very honest with you, what we're going to do is follow what we have always said would be our plan, and that is to -- once the convention was over, the president would become more fully engaged -- the Democratic convention that is. And he, too, would be involved with the American people.

So he and the vice president and first lady will have a very ambitious schedule and will be talking to the American people. We've been -- we've been expecting, of course, that there would be a large bounce, which has been tradition for a challenger when you challenge an incumbent, and that we would see some separation in the poll numbers.

We haven't seen that yet. But we're still anticipating. We're playing as if we're behind.

We know it's going to be a very, very difficult contest. But we've got a great candidate, a great organization. We have great policies. And I think the president of the United States has a very solid connection with the American people.

HEMMER: Just about less than 100 days from now. Marc Racicot, thanks, live in Arlington, Virginia, with the Republican reaction to what we all witnessed here in Boston.

Much more in a moment here. Back to Heidi now in New York.

COLLINS: Bill, thanks.

Secretary of State Colin Powell made a surprise visit to Iraq today. He arrived in Baghdad unannounced. And after a series of meetings with U.S. and Iraqi officials, he reaffirmed American support for Iraq's new government.

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: The leaders of Iraq are very courageous. They put themselves at risk every day. We have to make sure that these insurgents understand that we will not be deterred, they will not be deterred. The insurgents, the terrorists will be defeated. There can be no other option. The Iraqi people deserve freedom.

(END VIDEO CLIP)

COLLINS: Insurgents have staged a number of violent attacks in the months since the handover of power in Iraq.

Ten minutes past the hour now. Time for a look at some of today's other news with Daryn Kagan.

Daryn, to Uzbekistan.

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

An Israeli official says at least two people have been killed in explosions in Tashkent. That is the capital of Uzbekistan. One of the blasts believed to be a suicide bombing occurred outside the Israeli embassy. A second explosion was in the vicinity of the American embassy. A State Department official tells CNN that everyone at the U.S. embassy has been accounted for.

A U.S. official is confirming the arrest of a high-level al Qaeda suspect in Pakistan. Ahmed Kafan Galani (ph) is the FBI's most wanted terrorist. He's on that list in connection with the 1998 bombing of the American embassy in East Africa. He's being interrogated by Pakistani officials at an undisclosed location but may be turned over to American authorities.

Here in the U.S., top members of the 9/11 Commission face a Senate panel today. The Governmental Affairs Committee is considering whether to implement some of the 41 recommendations laid out in last week's report, including the appointment of a national intelligence director. The hearing is set to begin less than two hours from now.

Rainy weather caused flash floods in parts of South Carolina yesterday. A sudden rainstorm flooded streets in Greenville. Some homes were evacuated, people were moved out with rafts and fishing boats. The storm also knocked out power in parts of downtown Greenville.

Boy, we have Texas under water, South Carolina. What is going on in the weather world? Rob Marciano is in for Chad Myers. We know that much.

(WEATHER REPORT)

HEMMER: Back here in Boston now, what better way to end this convention week with our esteemed "Gimme a Minute" panel? CNN political contributor, Donna Brazile, leaving Boston earlier today, back in D.C., the author of "Cooking With Grease: Stirring the Pots in American Politics."

Donna, good morning to you.

DONNA BRAZILE, FMR. GORE CAMPAIGN MANAGER: Good morning, Bill.

HEMMER: Also in Washington, Cliff May, former RNC communications director now with the Foundation for Defense of Democracies, sitting in for Jonah this week.

And in New York, Andy Borowitz, from borowitzreport.com.

Drew, good morning.

And welcome to all three of you.

ANDY BOROWITZ, BOROWITZREPORT.COM: Reporting for duty.

HEMMER: Donna -- right. Aren't we all.

Senator Edwards last hour live here said that John Kerry hit it out over the green monster. I think I know what you're going to say. Was it a homerun or not last night for him?

BRAZILE: It really was. He did what he had to do. He gave an inspiring speech, a passionate speech. And he persuaded those who had doubts about who he was. He persuaded them to join us.

HEMMER: Cliff, do you agree?

CLIFF MAY, FOUNDATION FOR THE DEFENSE OF DEMOCRACIES: Basically I do. Let me be fair and balanced here. On the negative side, there were no new ideas, no big ideas, no compelling ideas we're dying to talk about. On the positive side, as Donna says, he did what he had to do.

In a nutshell, the Kerry concept here is that the electorate is split pretty much in half. There are the undecided voters. He feels they're dissatisfied with Bush, if he could be an acceptable alternative, they won't split 50-50, they'll split 60-40 or 70-30, and then he wins. And that's the concept.

HEMMER: Well, just for the record, we're the world's news leader by the way.

MAY: That's right.

HEMMER: Andy, what about it?

BOROWITZ: You know, I have to apologize. I did not see the speech. I was partying with Bono and I completely lost track of time.

HEMMER: Listen, it's a "Beautiful Day," by the way. Let's start with Cliff on the second one. Best and worst of the week, what do you say?

MAY: Best is probably Barack Obama. He was very impressive. He's a rising star, no question about it.

The worst, well, Teresa Heinz Kerry. Very, very rich women with a chip on their shoulder are not pleasant to see.

I thought Al Sharpton was sort of the crazy uncle from the attic. And Michael Moore walking around there I thought gave a bad odor.

HEMMER: That's a pretty good list.

Donna?

BRAZILE: Well, let me just tell you, I have a long list of best. Barack also was my favorite.

I thought Teresa Heinz, again, did what she had to do. She introduced herself and she did very well.

The worst, of course, was those balloons and the confetti. Something happened up there. And that was just tragic, because everyone was waiting for it, and, you know, it was one of those Kodak moments.

HEMMER: Andy, what was it, Bono?

BOROWITZ: Best was Obama. Worst was overhearing Ben Affleck say, pretend I'm your gerbil, baby.

HEMMER: Donna, let's talk about Florida. Earlier in the week, a head of one voting rights group down there in the Sunshine State said, "We are not safer now than we were in 2000." Do you expect nightmares again November 2 there?

BRAZILE: Well, everyone is doing the best possible job to remove all of those chads. But now we have problems with the voting -- voting machines. We still have problems with the voter registration list, the (UNINTELLIGIBLE). I hope we get our act together, otherwise we're not ready to vote down there in Florida.

HEMMER: Ultimately, though, is the state still close in Florida, Cliff?

MAY: Yes, Florida is a close state. I don't know what they're going to do about it. I think they should probably just go back to paper ballots. You write on it, you fold it in half and you put it in the box.

HEMMER: Andy, you got your No. 2 pencil?

BOROWITZ: You know, I've seen those machines. They're really confusing. And the only instructions on screen that I understood were, "Vote for Bush." That was it.

HEMMER: Cliff...

(CROSSTALK)

HEMMER: Yes. What did we miss the following -- this past week? What's under the radar? Cliff, start us off.

MAY: Clearly Iran. Iran is a country run by a rogue dictatorship. It's a country that is conspiring with terrorists, has for 20 years.

Hezbollah killed Americans in 1993, Al Qaeda, we know more about that from the 9/11 Commission. This week, they're enriching uranium and taking the seals off the nuclear equipment, seals put on by international inspectors.

This is why Bush said he went to war in Iraq, because of just such a situation. Kerry says this is the kind of situation that would spark him to act. Kerry didn't talk about it, Bush didn't talk about it, so the media's not talking about it.

HEMMER: Donna, how about you?

BRAZILE: Well, I was in a little bubble this week up in Boston. The media covered all of the activities for delegates, all of the excitement on -- on the floor. But there was a lot of training taking place across the city. And I was so impressed by the number of activists who came in without passes to get into the arena. But they wanted to be in the game.

HEMMER: Andy? Wrap it up.

BOROWITZ: Bill, the DNC is still trying to determine who hired Dick Cheney to cue the balloons.

(LAUGHTER)

BRAZILE: That's right.

HEMMER: Those floating balloons, that's right.

BRAZILE: Yes.

HEMMER: Hey, Donna, great job on the delegate cam this past week, by the way.

BRAZILE: Hey, I can now apply to CNN for a real job.

HEMMER: Don't count on it.

BRAZILE: Oh!

HEMMER: Have a great weekend. Donna, Cliff, Andy, thanks. Good to see all three of you. Talk to you again soon -- Heidi.

COLLINS: Bill, thanks a lot.

Still to come this morning, John Kerry and the Democrats got the spotlight for a week. Next, it's President Bush's turn. The incumbent takes his message on the road.

Also ahead, one man makes the "Extra Effort." And authorities say four children are rescued from a convicted child molester because of it. We'll talk to the hero and one of the officers who helped him.

And the defense in the Kobe Bryant case says Bryant's accuser has a lucrative reason to lie, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Attorneys in the Kobe Bryant rape case will be back in court today arguing over the release of transcripts from a closed-door hearing last month. A portion made public yesterday shows Bryant's accuser has received money from a state victim's fund. A revelation that has the defense crying foul.

Cynthia Stone from the Colorado Coalition Against Sexual Assault joins us now from Eagle, Colorado with her reaction.

Cynthia, good morning to you. The accuser now in this case has received $17,000 from this fund. Why does the fund exist in the first place?

CYNTHIA STONE, COLORADO COALITION AGAINST SEXUAL ASSAULT: Well, in 1981, Colorado state legislature decided that victims should not be re-victimized by having to bear a financial burden because of a crime that happened to them. This money doesn't come from taxpayer dollars, it comes from fines on some felony convictions, even some traffic fines.

We feel that it's absurd for anybody to think that a victim makes money off of this fund. This fund is there just to help out with some of the out-of-pocket expenses that a victim incurs because of the crime that happened to them.

COLLINS: But $17,000 for mental health reimbursement, $2,300 for lost wages. And the defense attorney, Pamela Mackey, very annoyed by this, and actually says that this is a rich incentive for the accuser to pursue false claims against Kobe Bryant. Your reaction?

STONE: Again, we feel that's absurd. First of all, the limit on this is $20,000. And lost wages is well within those bounds. This woman is within all of the guidelines set forth in 1981 by the state legislature.

COLLINS: If Bryant's accuser is found to be not credible, or Kobe Bryant is found to be not guilty, what happens to this money at that time?

STONE: Well, I'm not sure, frankly, on that one. But let's -- let's think about this.

First of all, there was a sheriff that said that there was enough evidence to charge this man, a D.A. that thought there was enough evidence to charge him, and a district court judge that is going on with the trial. So, in other words, this woman is considered a victim under Colorado's victims' rights amendment and under the Victims' Compensation Fund.

COLLINS: All right. Quickly, Cynthia, before we let you go, as you know, the judge has decided to allow part of the accuser's sexual history admissible in court. Your thoughts about that now?

STONE: Well, we feel it's a dangerous precedent. But we're hoping that people do not rush to judgment on this. None of this evidence has been put in context with other evidence. It hasn't been cross-examined and it hasn't been rebutted yet.

COLLINS: All right. Cynthia Stone this morning, spokesman for the Colorado Coalition Against Sexual Assault. Thanks again, live from Eagle, Colorado, this morning. Still to come today, John Kerry and John Edwards are heading out of on the road. So what kind of obstacles can they expense -- expect, that is -- once the glow of the convention is gone? Our own team of political insiders takes a look next on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: All righty. Jack's back with the "Question of the Day."

CAFFERTY: Yes. Thanks, Heidi.

Politicians get called a lot of things. John Kerry is called a flip-flopper and aloof and arrogant and cold. But his daughters, well, they call him dad. And they think he's pretty cool.

Last night, they told stories about how John Kerry once saved a hamster from a watery doom by actually giving it CPR. I would pay money to see that tape. And how he's dedicated to making sacrifices for his country.

So, in light of the fact that it's Friday, we asked the following kind of silly question: What would your kids tell the news media about you?

Bob in a town in Pennsylvania I can't pronounce writes, "My daughters would say, 'he's never wrong. Just ask him.'"

Kay in central Florida, "I raised my children right, which is hard to do these days, but not impossible. It won't matter what they say. They have the right to their opinion. I would hope they say I did the best I could and that they love me no matter what I do, the same as I would tell them."

Ken in Middletown, Connecticut, "My kids wouldn't tell reporters anything. They've been taught never to talk to strangers, and there ain't nothing stranger than the media."

And -- and Wistar -- he didn't say "ain't." I put that in. Wistar in Flowery Branch, Georgia -- is that a real name and place, Wistar and Flowery Branch, Georgia? I think it might be.

UNIDENTIFIED MALE: Yes, it is.

COLLINS: Yes, apparently it is.

CAFFERTY: See that? God is here.

"Who cares what my kids think. I want to hear Bush's daughters debate Kerry's daughters." Was that Ellie (ph) who said yes, it is?

UNIDENTIFIED MALE: No, that was Ted.

CAFFERTY: Oh, it was Ted. OK.

COLLINS: We have voices all over the studio today. CAFFERTY: It's pretty cool, don't you think?

COLLINS: Well, frightening, actually.

All right. We're going to give it back to Bill in Boston now, talking about the other side of the coin. We're going to hear more from the Bush campaign, too. Yes.

HEMMER: Yes, that we will. Hey, Heidi, thanks. Thanks, Jack, as well.

We'll turn our attention away from the Kerry camp to his main opponent. A live report from the trail with President Bush in a moment.

Also in a moment here, our own political team standing by. And Scott Peterson's defense team suffers a couple of losses in court.

Back in a moment here on AMERICAN MORNING. And back to Boston right after this.

(COMMERCIAL BREAK)

COLLINS: It's about half past the 9:00 hour now. I'm Heidi Collins in New York today. Bill Hemmer is in Boston, as you know, wrapping up our coverage of the Democratic National Convention.

Good morning, Bill.

HEMMER: Hey, Heidi, good morning.

We are on the harbor today, Boston Harbor here, right where the Charles River and the Mystic River come together here, historical Charlestown Naval Yard. And we are with the Election Express today, too. We're a special guest (ph), election '04, CNN's campaign bus sitting outside here. We're going to be there from time to time over the next three months as this campaign moves forward.

In the meantime, though, John Kerry and John Edwards moving forward as well, putting the FleetCenter and Boston behind them, traveling now by bus as they start a very long road trip. They had a rally saying goodbye about two hours ago live here in Boston, 3,500 miles, 21 states. They'll wind up in Seattle, Washington. In a few moment, we'll talk to Kelly Wallace, Ron Brownstein, Joe Johns, get their perspective from last night and the final night of convention.

Also, Heidi, on Monday, we're going to be back with the bus live in Flint, Michigan. My guests will be Senator John Kerry live in Michigan come Monday morning, as the campaign rolls on. We'll get to our panel here in a moment. Back to you now in New York -- Heidi.

COLLINS: All right. Very good, Bill. Thanks.

As promised, President Bush waited until the end of the Democratic convention to resume his campaign. Today he begins a tour of Midwestern swing states, with stops in Grand Rapids, Michigan; Cleveland, Ohio; and Springfield, Missouri. And Kathleen Koch is there in Springfield to tell us all about this.

Kathleen, good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Heidi.

Well, as you said, after a week off from campaigning, a week out of the spotlight, President Bush is very intent on reclaiming it today. On the campaign trail today, we're told that he's going to be unveiling a retooled stump speech. It will be, says a campaign spokesman, a bit shorter on criticism of his opponent, a bit shorter on harsh rhetoric. The president will go more into a broader vision, his themes, his hopes for the next four years.

Now, this kicks off a very aggressive month of campaigning in August. We're told that throughout the month, the president will be aggressively on the road, highlighting a different campaign theme every week.

Now, today it's just one example, I guess, of what August has in store. The president will be making five -- count them -- five stops in three different battleground states, starting here where we are today in the state of Missouri. A bit of friendly territory, I suppose you could say, for the president. He won it by just three percentage points back in 2000.

Aides do tell us that the president, while the Democratic convention was going on, he was watching, he was paying attention. But the chairman of the president said, the Bush-Cheney campaign says that President Bush is ready to stack his record against Kerry's.

(BEGIN VIDEO CLIP)

RACICOT: This is an argument we welcome. It is to allow the American people to make comparisons between the steady approach of the president, and the, quite frankly, contradictory, conflicting and sometimes absolutely mysterious record of Senator Kerry, particularly in reference to Iraq. My great hope was that he would explain last night what his position was. And I think he missed an opportunity to do that.

(END VIDEO CLIP)

KOCH: Now, here in Springfield, Illinois -- I mean, Springfield, Missouri, you can see gathered behind me a very enthusiastic crowd here at Hammond's Field (ph). Probably about 8,000. That's what the stadium holds. So it's packed to the gills.

The president will be speaking from the pitcher's mound. This crowd very intent on seeing him strike out his opponent -- Heidi.

COLLINS: The heart and soul of America tour. All right. Kathleen Koch, thanks so much for that this morning.

Sending it back to Bill now on the bus, outside the bus, on the floor. Where we going? HEMMER: Kind of near the bus. You're right. We call it "On the Floor." That was our segment at this time throughout the week, talking with our own political reporters on what the stories they're chasing and what they're hearing, the story behind the story.

We're not on the floor. We're on the water today. Kelly Wallace, Ron Brownstein, Joe Johns my guests here in Boston yet again on the final day.

Good morning to all three of you.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning.

(CROSSTALK)

RON BROWNSTEIN, "LA TIMES": We're all on a mat.

HEMMER: Well, finally the balloons came down. So...

WALLACE: Yes.

HEMMER: Joe, I know the delegates overwhelmingly treated this with open arms last night with John Kerry. You made an interesting comment last night. It did not make them feel warm and fuzzy.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Right. And that's true.

Well, when I talked to people immediately after the speech, they really touched on the policy issues. They were really interested in what he had to say about the military, also what he had to say about family values, many of these themes that the Bush administration has talked about so much. And what was fascinating to me, though, is what they came away with was that, "He didn't make me feel warm and fuzzy, but that's OK."

HEMMER: (UNINTELLIGIBLE) hear that?

BROWNSTEIN: Warm and fuzzy isn't what John Kerry does. I mean, what was he -- what was this whole week about? It was about strength, overwhelmingly, all the Vietnam veterans, the message from John Kerry -- in fact, I mean, the real story of last night, I think I talked to some of the Democratic analysts, people working around the campaign, was that John Kerry went head on at what George Bush has assumed would be his greatest strengths, values, integrity, "I will restore trust and credibility to the Oval Office," playing off the famous phrase from Bush from 2000.

And above all, his management of the war on terror. This was a frontal assault which I think took the Bush people somewhat by surprise.

WALLACE: I also would say people were somewhat relieved. The people I talked to thought he did even better than we wanted him to do.

HEMMER: Because the expectations were lower?

WALLACE: Well, expectations lower because he's not known to be a very charismatic, great speaker. And they felt like he delivered.

I want to say something, though, because I covered him in the early days of Iowa. And I felt the big focus that the campaign aides said, he had to connect, he had to connect. He clearly connected with the hall. We'll find out if he connected with people at home. But those early days in Iowa, when no one thought he was going to win, he was connecting in those small town hall meetings. It seem like he did that last night.

HEMMER: But Ron, go forward just a little bit here.

BROWNSTEIN: Yes.

HEMMER: You're talking with the Bush people.

BROWNSTEIN: Yes.

HEMMER: What are they telling you last night?

BROWNSTEIN: Well, look, first of all, Republicans understand they are in a serious race now. One of the Bush advisers said to me, "We realize now we have to win it."

John Kerry is not going to lose it. This isn't Michael Dukakis. It isn't George McGovern.

Having said that, I think they see three openings that Kerry left for them in his speech. One, no really more specifics about Iraq, what he would do next, and whether he thought it was a mistake to do it in the first place.

Two, can he make it add up? A lot of promises of new spending, health care, education, not as much talk about how he's going to pay for it.

Third, the big doughnut between Vietnam and right now. You know, listening to this convention, you might have thought John Kerry was the victim of an alien abduction. I mean, last seen in Vietnam in 1969, he turns up in an Iowa cornfield last year running for president.

WALLACE: The Republican...

(CROSSTALK)

HEMMER: (UNINTELLIGIBLE) a big doughnut.

WALLACE: I like that. That's good. That's Ron Brownstein.

But no, the Republicans have already put out a release, or, you know, their own little note saying 73 words out of a 5,000-word speech about his Senate record. They're going to say, 19 years, what did he do? President Bush is expected today to talk about saying results matter. So they'll say what you did in the Senate or didn't do matters.

HEMMER: Want to go to Joe across the room.

JOHNS: And one of the things that's happened on Capitol Hill is Republicans are saying he has a pretty unremarkable record and -- in terms of legislation, in terms of a variety of other things. But what they say is he's worked on committees, he's done a good job, they say, on Vietnam. And they think that if he gets into a debate over what he did on Capitol Hill, he'll be just fine, because he does know the system and he's an inside player.

HEMMER: Well, we're off and running, aren't we, huh, guys? Time to get on the bus.

John, Ron, Kelly, thanks.

BROWNSTEIN: Beautiful spot. Thanks.

HEMMER: You got it.

WALLACE: Yes.

HEMMER: We've got to run here from Boston. Back in a moment as our coverage continues. Now to the CNN Center and Daryn Kagan yet again, looking at other news there.

Hey, Daryn.

KAGAN: Whoever's cell phone is ringing, they can go answer that now.

We begin the headlines with an apparent suicide bomber which has struck outside the Israeli embassy in the Uzbek capital Tashkent. An Israeli official says two people believed to be Uzbekistani citizens have been killed. A second explosion was reported in the vicinity of the American embassy. A State Department official tells CNN that everyone at the embassy has been accounted for.

Here in the U.S., the Department of Homeland Security has reportedly received detailed information about Arab-Americans, including how many people of Arab background live in certain zip codes. The Census Bureau tells "The New York Times" such sharing of information is standard practice and some civil liberty and advocacy groups compare it to the compilation of data on Japanese-Americans during World War II.

Jurors in Scott Peterson's murder trial will be back in court on Monday. Yesterday, the judge denied a defense motion for a mistrial and dismissal of the charges. Peterson's attorney, Mark Gergaos, had claimed that a detective fabricated part of his testimony. But the judge decided there was no misconduct.

And finally, the New York Yankees are looking to build a new $700 million open-air stadium. It would be right across from where Yankee Stadium now stands in the Bronx. A report in "The New York Times" today says the team is willing to pay much of the cost. The team plans to deliver a final proposal to New York's Mayor Bloomberg within the next few weeks.

Quite a turnaround from the New York Yankees, Rob. You know, they are threatening to go to New Jersey. They wanted to go to Manhattan. But this plan called for them to stay in the Bronx and foot much of the bill.

ROB MARCIANO, CNN METEOROLOGIST: At least they'll stay in the Bronx. Even though they're moving from the house that Ruth built. Got to stay in the Bronx.

(WEATHER REPORT)

COLLINS: Still to come now, Andy Serwer is "Minding Your Business." He's got evidence that money does buy happiness. He'll tell you about that.

Also ahead, an Amber Alert is issued, four young children are found safe and sound. We'll hear from the man their mother calls a hero in our "Extra Effort," ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Markets are open. Andy has a check on the early numbers. And is it true the more money you have, the less sad you get?

CAFFERTY: Yes.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Yes.

COLLINS: OK.

SERWER: All right. Starting with this morning, Jack, let's check the numbers on the Big Board.

Stocks are trading down. Maybe it's Ben Affleck's fault. I'm just blaming him for stuff. Dow down nine points.

What's trading? Target's selling its Mervin stores. That stock is moving to the upside. Chevron Texaco, huge profits.

You're concerned about the price of gas? Buy oil stocks. They're just going through the roof, 52 cents to $96. That stock is up 50 percent over the past year.

Usher's got a new MasterCard. You know Usher, right, Jack? He loves him. He's got a new album out, "Confessions." Jack loves this video.

SERWER: Yes. OK. It's a new card. It's the first celebrity MasterCard debit card. Maybe Usher can use it to buy some diapers and baby food, because I heard he's got a baby on the way with a girlfriend. I know this pop culture stuff.

Now, money can buy happiness, Jack. It's really true. And we now have empirical evidence. A study by a periodical called "Health and Quality of Life Outcomes" -- gee, I want to subscribe to that -- look at this.

Numbers from the CDC here. Number of blue days, that's days you're depressed. People have more money, only depressed two days a month. If you make less than $15,000, you're depressed six -- only six days a month. I'd be depressed -- yeah, I can see how that would work. Can't you? Strong correlation there.

CAFFERTY: Yes. Well, if you have a lot of money, you can buy things to alleviate the sadness.

SERWER: Yes.

CAFFERTY: If you know what I mean.

SERWER: Yes, I do know what you mean.

COLLINS: All right, guys. We'll be back in just a moment.

Still to come this morning, if an Amber Alert went out, would you be alert enough to spot the kids or the car that the police were looking for? Well, one man was, and he's being called a hero. We'll hear from him on our "Extra Effort" on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Now for an update on a legal dispute we reported back in March, one involving Western Kentucky University and the media empire of the Italian prime minister, Silvio Berlusconi.

The university claims that a character, this character named Gabibbo, on a satirical TV show produced by one of Berlusconi's companies, MediaSet, is similar to its mascot, Big Red. All too similar, in fact. And the university is alleging that MediaSet copied its image.

(BEGIN VIDEO CLIP)

GARY RANSDELL, PRESIDENT, WESTERN KENTUCKY UNIVERSITY: The officials with the Italian television station, when they actually came up with -- with the concept, they saw Big Red after his performance presumably at an NCAA basketball tournament and decided that they might take a run at a similar image.

(END VIDEO CLIP)

COLLINS: Western Kentucky University is taking legal action against MediaSet. And MediaSet is threatening to respond in kind. Some may see this as a silly matter...

SERWER: Yes.

COLLINS: ... involving puppets bickering.

CAFFERTY: No.

COLLINS: But those involved in the lawsuit obviously feel it is an important legal matter. Recently, Bill Hemmer spoke with MediaSet's legal counsel, Stefano Longhini, in Milan, Italy, asking for their position on the lawsuit filed by Western Kentucky University, and his licensing agent, Crossland Enterprises. Mr. Longhini's answers are interpreted by Michael Crookshank.

(BEGIN VIDEOTAPE)

STEFANO LONGHINI, LEGAL COUNSEL, MEDIASET (through translator): The University of Western Kentucky Crossland (UNINTELLIGIBLE) pretend that the issue relates to two puppets, when in fact this is an enormous falsehood that just clouds the issue. Big Red is a mute mascot that acts as a cheerleader on the edge of the field. Gabibbo, on the other hand, is a walking, talking character that is part of a daily satirical TV show called (UNINTELLIGIBLE).

The enormous popularity of Gabibbo is the result of investigations and reports that have over the years established him as one of the country's most credible journalists. His support for countless numbers of charitable initiatives and the defense of citizens and consumer rights. Gabibbo is also such a fierce critic of television that he would appear to be able to render any banal puppet a reliable character.

We just wanted to underline the very evident differences that exist between Big Red and Gabibbo, both in terms of profile and in terms of the graphic design, as well as in the products and merchandising. The similarities are reduced to weak and depersonalized elements that are common to countless puppets. For example, Elmo, Jelly Belly, Mr. Greedy.

Here's Mr. Greedy, and here's Big Red. The musical notes of Kim Blundel (ph), innumerable blobs, the red blood cells of the series "Exploring the Human Body," and many other Italian and European puppets that we will show in court.

Big Red is an amorphous blob, whereas Gabibbo, on the other hand, was created as a puppet with the head of a fish and a -- a wide-mouth goldfish with large eyes. And if, for example, you were to attach the head of the Disney Pixar character Nemo to a puppet, you would have a figure broadly similar to Gabibbo.

HEMMER: Here is a statement from Giorgio Mondini. He is an attorney working the case in Italy on behalf of Crossland. He says, "We are confident on the final outcome of the legal action we have taken on behalf of Western Kentucky University and Crossland Enterprises for the protection of copyright image of Big Red, of which in our opinion has been infringed on."

How do you respond to that claim in your country?

LONGHINI (through translator): Well, we are confident in a satisfactory resolution of the case. So far, we have simply tried to defend ourselves, insofar as it was very difficult to understand how a university could lend its good name to such an obviously speculative action.

We have always been convinced that the university was simply not aware of the full facts. But now enough is enough. We will react strongly against such unfair behavior against us, and we will shortly take action to claim compensation for the considerable damages caused to us by (UNINTELLIGIBLE) and Crossland. And if the University of Western Kentucky does not disassociate itself immediate from the former, that it, too, will feature in our suit.

HEMMER: The university is seeking $250 million in its suit. Are you suggesting that you will countersue?

LONGHINI (through translator): Yes, the answer is absolutely. I mean, we will make a countersuit to claim compensation for the damages that we have undergone.

I mean, (UNINTELLIGIBLE) bought from Crossland (UNINTELLIGIBLE) 54 mascots at a cost of $7,500. Now, if you do the math, that means more or less $150 per mascot. So that's the real battle. So the value of $250 million is a clear speculation and nothing more.

Moreover, the request for $250 million is nothing more than the latest in a series of media-based advertising gimmicks. In fact, in none of the legal documents has (UNINTELLIGIBLE) or the University of Western Kentucky forwarded an economic request of this type. They have merely limited themselves to asking the sum earned by Gabibbo over the years, a clear demonstration of their speculative intent, and an attempt to take advantage of the work of others.

(END VIDEOTAPE)

COLLINS: In response to MediaSet's challenge to Western Kentucky and Crossland Enterprises, a calculation of the monetary damage and the $250 million figure, Crossland's American attorney had this to say: "The measure for damages for infringement is not the amount of an initial licensee fee. It is restitution and the profits obtained by the defendants from the use of the infringing of Gabibbo and the commercial exploitation of its image."

On that note, we will be right back.

(COMMERCIAL BREAK)

COLLINS: In our weekly series, "Extra Effort," we pay tribute to those going the extra mile to help others. This morning, a man who helped four children return safely to their parents after an Amber Alert message alerted him to a car on Interstate 70 in Ohio.

Paul Bursey joins us now from Columbus, Ohio, along with police Sergeant Alex Behnen.

To the both of you, thanks so much for being with us. This is an incredible story. Paul, how did you decide to make that 911 call in the first place?

PAUL BURSEY, LED POLICE TO MISSING CHILDREN: Well, as I was traveling down I-70 going westbound, I noticed the child abduction sign. And I saw the license plate number, and happened to look right down in front of me and saw the car.

And I matched up the first three letters, and I kind of knew what the last four were. But I called the gentleman that was following me -- we were going to the same job site together -- and confirmed the last four from him. And then immediately called 911. And at that point, we got it over the air, I guess, for the police system.

COLLINS: Sergeant Behnen, how did you become involved in all of this now? Were you there? Did you respond to the call?

SGT. ALEX BEHNEN, COLUMBUS POLICE: Yes, I did. Mr. Bursey's phone call came to our radio room and immediately they dispatched that information on our radio channels. And the suspect drove down onto our precinct, and I was responding, as were other units. And we made the arrest with the help of Mr. Bursey, as far as where the individual went there at Marathon gas station.

COLLINS: What more can you tell us about the situation? The kids OK?

BEHNEN: Yes. When we arrived, the suspect had exited the car. They took him into custody without any problem. And the four kids were in the car, and they were a little bit confused as to what took place, but had no physical marks on them.

They were kind of confused. We got them some toys and calmed them down. And from that point on, you know, got the process started to get them back to their parents.

COLLINS: It's amazing. And everybody stayed safe in the...

BEHNEN: Yes.

COLLINS: ... in this situation. To the both of you, thanks so much today. Paul Bursey and Sergeant Alex Behnen, appreciate your story.

BURSEY: Thank you, Heidi.

BEHNEN: Thank you.

COLLINS: Great story it was.

Hey, you guys, it's been fun.

CAFFERTY: That's a terrific system, that Amber Alert.

COLLINS: It is.

CAFFERTY: That's a great idea.

COLLINS: It is. He's a brave guy.

Thanks for being here. Thanks for being here.

SERWER: You're welcome.

COLLINS: Bill, thanks for being there.

HEMMER: Hey, we'll see you Monday from Flint, Michigan, by the way, just so you know. We're going to stick with the bus for a while here.

Senator John Kerry is our guest live on Monday on AMERICAN MORNING. I'll talk to him in Michigan before a rally gets under way there.

You guys have a great weekend, all right?

COLLINS: All right. We will do that.

CAFFERTY: Will do.

COLLINS: We've been practicing.

HEMMER: Jack, Andy, you've got to also -- to our crew here in Boston, on behalf of the CNN family, bravo. Great job throughout the week.

Very little sleep. A lot of long hours. But they are professionals to the core. And we appreciate them and the work they do here in Boston. So thanks.

To Daryn Kagan now at the CNN Center in Atlanta.

Daryn, have a great weekend. So long now from Boston.

KAGAN: Thank you so much. Safe travels on the road in the bus. Bill, we will see you in Flint, Michigan.

HEMMER: OK.

KAGAN: Good morning from CNN headquarters in Atlanta. I'm Daryn Kagan.

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