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Al Qaeda Greater Threat Than Ever?; 9/11 Commission Hearings Continue; Preparations For Major Najaf Assault; Tropical Storms In Caribbean; "90-Second Pop"

Aired August 11, 2004 - 09:30   ET

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


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


BILL HEMMER, CNN ANCHOR: Good morning, everyone. 9:31 here in New York City. The opening bell just went off a few seconds ago. A big triple-digit gain yesterday for the Dow 30. So, we'll see where we go now after the Fed made its decision.
Bill Hemmer along with Heidi Collins. Hear Soledad is home and resting and waiting.

HEIDI COLLINS, CNN ANCHOR: Waiting.

HEMMER: And we're waiting for the phone call...

COLLINS: Yes.

HEMMER: ... here.

More hearings on the 9/11 panel's findings got underway about 30 minutes ago D.C. Today, lawmakers look at how the report might affect the Pentagon. We'll get you there live to the Hill in a moment. Ed Henry is standing by on that.

COLLINS: Also, just a few years ago, Republican Alan Keyes accused Hillary Clinton of being a carpetbagger. Now, a lot of Democrats are saying the same about Keyes. We'll talk to a couple of political gurus about that.

HEMMER: In the meantime, though, straightaway, the Middle East -- the story we talked about an hour and 20 minutes ago -- the explosion at a checkpoint north of Jerusalem, said to be the midway point between Jerusalem and Ramallah. Emergency personnel there say at least one person is dead.

This is what we know. According to reports out in the Middle East, a suicide bomber set up that explosion earlier today at a checkpoint -- Israeli Army checkpoint. Fifteen were wounded in additional to the one fatality, including eight Palestinians, seven Israelis on the injured side.

We were told a 60-year-old man lost his life. Two of the eight wounded now in serious condition. Three of the Israelis reported to have been seriously wounded. There's already been a claim of responsibility. The Al Aqsa Martyrs Brigade, a military offshoot of Palestinian President Yasser Arafat Fatah movement, has claimed responsibility for that. We'll continue to follow it. When we get more, we'll pass it along to you. That's the latest now out of the Middle East -- Heidi?

COLLINS: The head of the 9/11 Commission says al Qaeda may be a greater threat than ever. Chairman Thomas Kean told a House Armed Services Committee hearing yesterday that the organization lacks effective control and is increasingly dangerous. More hearings are underway right now.

CNN Congressional correspondent Ed Henry on Capitol Hill with the very latest. Ed, good morning.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Heidi.

That's right. Another busy day on Capitol Hill and, in fact, there are two hearings going on this morning about the 9/11 Commission's final report. One of them will feature Tom Kean and Lee Hamilton, the 9/11 Commission co-chairs that you mentioned, appearing before the House Intelligence Committee right now.

But a big change there: Porter Goss is not wielding the gavel. In fact, he gave up his chairmanship last night. Here's how he explained it this morning.

(BEGIN VIDEO CLIP)

REP. PORTER GOSS, CIA DIRECTOR NOMINEE: The text of the letter that I sent to Mr. Hastert is as follows:

"Dear Mr. Speaker, as a result of the honor bestowed upon me by the president today nominating me for the position of director of Central Intelligence, I believe it's appropriate to relinquish my position as chairman of the Permanent Select Committee on Intelligence during the pendency of the confirmation process of that nomination effective immediately.

"Therefore, I would ask that you appoint a member to take the chairmanship of the committee on a temporary basis effective immediately until the Senate makes a final determination on the president's nomination. I believe it continues to be appropriate for me to remain a member of the committee, however.

"Thank you for your consideration of this request. Very truly yours, Porter Goss."

A copy to Ms. Harman, and that letter has been sent to the speaker.

(END VIDEO CLIP)

HENRY: Republicans are ecstatic about the Goss nomination for two reasons. In recent weeks, the president's poll numbers on handling -- national security handling the issue of terrorism, they've dipped a bit. And Republicans think this will stop the bleeding and that they've overshadowed the Democratic line of attack a little bit.

And also secondly, while the Goss nomination is still not a slam dunk in the Senate, still the Democratic criticism has been somewhat muted and Republicans think that Goss is in fine shape.

The hearings will continue in addition to the House Intelligence Committee today. The House Armed Services Committee is meeting. Yesterday, Tom Kean testified there. He mentioned, as you had said earlier, that al Qaeda is a top threat. Something really needs to be done about it.

And Kean was saying that Congress only has a chance to reform government on an issue this grave once a generation. He's saying seize the day. And in fact, another House Armed Services Committee hearing this morning, and Democrats on that panel at about 11:00 a.m. today are going to introduce legislation.

They're going to use the 9/11 Commission's 41 recommendations as a baseline to really try to push the Republicans, put a little more heat on them, and say that it's time to pass this legislation, go far beyond just naming Porter Goss to go to the CIA, but actually implement the 41 recommendations, Heidi.

COLLINS: All right. Ed Henry, live on Capitol Hill. Thanks.

HEMMER: Twenty-five minutes before the hour. Time for Kamber and Watkins today -- formerly Kamber and May. We'll explain in a moment on that.

At issue today, the Illinois Senate race: Democrat Barack Obama versus the conservative Alan Keyes. We talked with Alan Keyes last hour about his decision for run for the Senate where he recently claimed residence.

(BEGIN VIDEO CLIP)

ALAN KEYES (R), ILLINOIS SENATE CANDIDATE: I am from the State of Illinois now. But they should vote for me if they believe in the things I believe in and want to support those things for Illinois and for this country. It's the reason that we should, in fact, vote for anybody who's a candidate for office.

And there are a lot of people in Illinois who do believe as I do about things like the importance of respecting the basic declaration principles that protect the life of the innocent, limiting government, having a tax system that isn't essentially another form of oppression that takes control of money out of people's hands.

(END VIDEO CLIP)

HEMMER: That was from last hour. Now this hour, Democratic consultant Victor Kamber down in D.C. Vic, good morning to you. Good to have you back here.

VICTOR KAMBER, DEMOCRATIC CONSULTANT: Good morning, Bill. How are you?

HEMMER: I'm doing just fine. Thanks for that.

Republican strategist Joe Watkins sitting in for -- playing the role of Cliff May today here in New York City. Good morning, Joe, and welcome here...

JOE WATKINS, REPUBLICAN STRATEGIST: Good to be here. Good to be here.

HEMMER: ... and welcome to AMERICAN MORNING.

First about Alan Keyes and the whole state of the Republican party in Illinois, Joe -- what is that state?

WATKINS: Well, the State of Illinois is fairly going to be a key state for Republicans this fall, and Alan Keyes has a great chance to win it if he can stick to the issues where he's strong.

Clearly, you have two African-American candidates -- Illinois is going to have a black senator this year one way or the other. We have two African-American candidates who are articulate and who are passionate about the issues.

Alan Keyes has to stick to the issues where he's strong. He has to show the difference between himself and Barack Obama. And if he does that and if he brings up the values debate and keeps away from the issue of slavery and things past, he has a good chance to win.

HEMMER: You say a clear chance to win earlier. Victor, you believe that?

KAMBER: I -- first of all, I'm delighted he's running in Illinois. I just -- I'm so delighted I can't tell you. As an Illinoisan, it just -- it shows what the Republican party truly is. This -- Alan Keyes is the Republican party, and I want America to know that.

And I hope he does stick to the issues, because every time he opens his mouth, as articulate as he is, he loses votes. He loses moderate Republicans. He loses moderate Democrats. He loses Independents.

This man is so far to the right, so extreme in his views, I think Illinois probably -- I'll be surprised if he carries three three counties of the 101 counties in Illinois.

WATKINS: Well, Alan Keyes really does represents heartland issues. I mean, Illinois is a Midwestern state. It's got a heartland sense of America, and Alan Keyes really does represent that. He represents the thoughts and views of people of faith, of Catholics and Protestants, who make up a great percentage of the people of Illinois.

And if he sticks to the issues, the values issues and talks about the needs of the people of Illinois, about healthcare and education and all those things, he'll do very, very well.

HEMMER: All right, that's topic number one. You say three counties. We're going to watch that in early November, Victor.

KAMBER: Thank you.

HEMMER: You're on record -- three counties in the State of Illinois.

Second topic: John Kerry...

KAMBER: Out of 101.

HEMMER: John Kerry says he would still vote for war, if given the opportunity again, even knowing what we know now, Victor.

WATKINS: Well, we're glad that he said that.

HEMMER: Hang on one second, Joe. The president seized on it yesterday, Victor. Is this going to come back to hurt him, or does he have any other choice but to continue to support his original vote?

KAMBER: Well, I think he's being honest with you. Frankly, as a Democrat, I'm a little disappointed. I would have hoped that with all the information he knows now, he would not have supported a war, but he believes that.

WATKINS: Should have come clean a little bit sooner, Victor.

KAMBER: The difference is that he said, Joe -- one second -- that no one asked him before. And he said he voted how he voted. The difference is, he said he would -- he voted for authorization. He wouldn't have gone to war without a plan for peace, without a plan for withdrawing, which clearly this president didn't have and doesn't have still.

WATKINS: This president is a strong and decisive leader. And that's what John Kerry still has to demonstrate to Americans, that he is strong and decisive. He could have told Americans at the Democratic convention exactly where he stood on the issue of the war...

KAMBER: Oh, he did.

WATKINS: ... and that he supported the president's decision to go to Iraq.

KAMBER: He -- he told the American public that war -- that getting rid of Saddam Hussein was the good thing to do. He's also saying, "Mr. President, where is your plan to bring our boys back home, our women back home, our people back home? Where is the plan for peace? You don't have one, Mr. President. You went to war."

Yes, the president's decisive. He wants to follow whatever he wants to do without any plan for the follow-up of it.

WATKINS: Well, the president does have a plan for peace.

HEMMER: Joe, are you finished? That's OK. You pushed -- you can keep going.

I want to get to the third topic.

WATKINS: OK. Third topic. HEMMER: Pick up a cover -- pick up a "USA Today" today. And there's the whole relationship about Arnold Schwarzenegger and how he is used or not used during this campaign.

Joe, start us off here. How is the relationship between the White House and Schwarzenegger in California?

WATKINS: I think it's very, very, very good. And I think that Arnold Schwarzenegger's going to be a tremendous help to George Bush in the November election.

He is the most popular California governor in 30 years. He's got a 65% approval rating from Californians. And that means that a lot of Democrats like him, as well as Republicans.

And I think that he's going to be a huge help to George Bush in the November election. He gives George Bush a chance to win California, which will be huge.

HEMMER: Victor?

KAMBER: Well, I don't disagree that Arnold Schwarzenegger's popular. Frankly, he'll draw crowds, which all celebrities do. I wish he would go around the country. I hope the president spends a lot of time in California trying to carry the state, and maybe even, you know, brings Alan Keyes to California, or Schwarzenegger to Illinois. One or the other.

It'd be great to have -- by the way, Keyes should demand to speak at the Republican convention following Arnold Schwarzenegger. The two of them can put their views out as to what the Republican party is.

WATKINS: Well, the Republican convention -- you should know, Victor -- is going to be the most diverse in recent years. Almost 20% of the delegates are going to be minorities this year. So, it's going to be a very, very different Republican National Convention...

KAMBER: You're absolutely right, it'll be a great show to put on television. that's not how they'll vote, but they'll show it on television.

WATKINS: It'll be substance. It'll be substance.

HEMMER: We'll leave it there. Thanks, Victor, Joe. Came out swinging today, Joe.

WATKINS: We did.

HEMMER: Come on back. Victor, talk to you again next week, OK?

KAMBER: Thank you, Bill.

HEMMER: Thank you, gentlemen -- Heidi?

COLLINS: About 42 minutes past the hour now. Time for a look at some of today's other news with Carol Costello and the very latest out of Iraq, Carol.

CAROL COSTELLO, CNN CORRESPONDENT: Yes, I do have the latest out of Iraq, Heidi. Thank you.

Preparations now underway for a major assault in the Iraqi city of Najaf. Multi-national forces there have been battling fighters loyal to radical cleric Muqtada al-Sadr. The U.S. military now says U.S. troops and Iraqi National Guardsmen are conducting joint training exercise in preparation for a major assault on the Mehdi army.

Here in the United States, there are reports of a two-alarm fire in Seattle, Washington. Take a look at this video. It shows the two- story building engulfed in flames, the roof collapsing as a result. Firefighters are now trying to prevent the blaze from spreading to nearby buildings. No reports of any injuries so far.

Pakistan is protesting an FBI sting operation, saying it endangered one of its diplomats. The FBI arrested two leaders of an Albany, New York, mosque in a sting involving money laundering and a shoulder-fired missile. Pakistan condemned the operation, saying the agency used a fictitious plot to assassinate Pakistan's ambassador to the United Nations. A U.S. attorney said the ambassador was never in any danger.

And finally, the Negro League Legends Hall of Fame is set for a groundbreaking ceremony in Washington, D.C. The ceremony will take place on Saturday at the Walter "Buck" Leonard Memorial Hall. Over 3,000 Negro League legends played from the 1920s through the 1960s -- many among the greatest players to ever play the game of baseball.

Back to New York now.

HEMMER: All right. Carol, thanks for that -- and well deserved, too.

Check of the weather now. Chad Myers, he's going to be very busy from this day going forward. Hey, Chad, what are you seeing now?

CHAD MYERS, CNN METEOROLOGIST: Good morning, Bill.

The storm really just getting going now. Bonnie almost died overnight. And if you look at the map here, there's nothing to speak of. But it really blew up in the overnight hours. Typically, they go up at night, down in the day -- opposite of what typical storms in the Midwest will do.

But this thing is going to travel right up toward Panama City, and probably 60 to 70 mile per hour winds -- could even be stronger than that. But right now, that's the official National Hurricane Center forecast. Winds right now are 50.

They are flying the plane into the storm right now to see what's going on, but even as tomorrow morning rolls around, probably almost this exact time tomorrow morning, it's going to be under the gun here for Panama City. It could be one way or the other, but the center of what we call the cone is right over Panama City. Could be Apalachicola, could be Pensacola, so don't let your guard down there.

But that is not as big of a storm as this one. Not that this isn't severe or a 70 mile per hour wind dangerous, but this storm here now, forecast to have winds between 105 and 110 miles per hour, go over Jamaica, today over Cayman Brac, over Pinar del Rio, over Havana, and then not all that far from Key West.

Right now, the winds are 65 miles per hour, but they did just fly in it and found 88 mile per hour winds aloft -- where the plane flies. Here goes the storm, right over Havana, right over parts of Key West, and then finally on up into Cape Canaveral. Yes, it could even go all the way across parts of Florida with some winds.

The waves here by Friday are going to be eight to 10 feet. Cocoa Beach, our affiliate WFTV out of Orlando -- nice shot of the beach, pretty tranquil now, Bill. But the problem is this storm is going to be sucking in air from this direction, very big waves on this side -- well, as well, of course, as the west side. Back to you.

COLLINS: Looks beautiful.

MYERS: It does. Looks great; 48 hours from now, it won't.

COLLINS: Yes. We'll check on that then. All right, thanks so much, Chad.

MYERS: You're welcome.

COLLINS: Still to come now this morning, two video rental giants are battling it out, but it's good news for you. We'll tell you about it just ahead.

HEMMER: Also, supermodel Naomi Campbell clashing with her cleaning lady. Now in trouble with the law. That's ahead next on "90-Second Pop."

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

COLLINS: Every Wednesday about this time, we bring you "90- Second Pop."

So here now, our pop players, Andy Borowitz, the man responsible for borowitzreport.com, Sarah Bernard, contributing editor for "New York" magazine, and B.J. Sigesmund, staff editor for "US Weekly."

Thanks, guys, for being here today.

Andy, let's start with you. Naomi Campbell, she's known for kind of having this temper. There have been incidents before.

ANDY BOROWITZ, BOROWITZREPORT.COM: Yes.

COLLINS: But now her maid is saying that the supermodel slapped her, sent her to the hospital. What's happening here? BOROWITZ: Well, you know, Heidi, I'm chief of CNN's Naomi Campbell bureau. So, I've been on this for some time.

COLLINS: It's a new bureau.

BOROWITZ: But, yes, apparently this happens all of the time to supermodels. She asked her housekeeper to help her pack for Brazil. And I guess she balked at that request. And then, there were some fisticuffs, apparently.

I heard this story, and I just said, "I smell reality show," because it sort of combines "America's Top Model" and "The Contender." It's sort of like a combination of bashing and boxing. So I think there's going to be a happy ending. I do.

SARAH BERNARD, "NEW YORK" MAGAZINE: I think it's also kind of like which came first? Is she acting like she thinks a supermodel is supposed to act? Or is she really like this and that's how it happened?

B.J. SIGESMUND, "US WEEKLY": Well, this...

BOROWITZ: Right.

BERNARD: I mean, she's acting it out, right?

SIGESMUND: She is obviously really like this. So remember, Naomi Campbell hit her assistant with a cell phone back in 1998.

COLLINS: Right.

SIGESMUND: And she admitted it. She pleaded guilty to that in 2,000 and had to go to anger management school. Clearly, she didn't graduate with honors, because she's back to her old tricks apparently.

COLLINS: No.

BOROWITZ: My sources tell me that Naomi regrets this incident. In her words she says, I'm not as known to wash my underwear. So she is feeling bad.

SIGESMUND: The best part of this is that the housekeeper is of Jamaican -- from Jamaica. And Naomi is of Jamaican descent.

COLLINS: Yes.

SIGESMUND: And just last week, Naomi was honored at city hall in New York for Jamaican -- or her work for Jamaican independence.

COLLINS: All right. Well, maybe they're rethinking that one today. Hmm.

All right, Sarah, let me ask you about Latoya Jackson. She's got a new song. It's a hit. It's called "Just Wanna Dance."

BERNARD: Right. COLLINS: But the funny thing here, she didn't put her name on it?

BERNARD: I know. She's trying to...

COLLINS: Toy.

BERNARD: She's trying to change her image, exactly, distance herself from the Jacksons. She's just calling herself Toy, and she was claiming that deejays didn't know who this mysterious person was until she personally called a bunch of them and said, you know, it's me, it's me.

And what's really interesting is that, I think it's hit No. 14 on one of the billboard charts, but I didn't realize it. There's actually multiple billboard charts.

BOROWITZ: Oh yes.

SIGESMUND: Yes.

BERNARD: It's not like there is just one thing. So this is obviously the chart for less -- or maybe untalented Jackson family members...

SIGESMUND: Oh! I want to say...

BERNARD: ... who just, you know, have to have their own chart...

SIGESMUND: To me...

BERNARD: ... because otherwise they'd never get, you know, close to the top then.

SIGESMUND: I just don't believe this at all. She herself admitted some of the deejays didn't know it was me. Well, that means some of them did know it was her. And if you were going to put on a song by this artist, I think that you are going to say, well, this is Latoya Jackson as Toy. It's clearly a marketing and a PR ploy, to me.

BOROWITZ: I just hope other Jacksons don't start shortening their names, like Tito for example. I just really don't.

COLLINS: That would be very bad.

BOROWITZ: They'd have problems in that area.

SIGESMUND: But she does have a point, which is that her last name, Jackson, does come with baggage.

BOROWITZ: A little.

SIGESMUND: And that she doesn't get taken seriously anymore.

BERNARD: But she needs a -- I mean, it would like Ashlee Simpson just being Ashlee, just being Ashlee with, you know, nothing else. COLLINS: Oh, well, that's probably pretty debatable.

(END VIDEOTAPE)

Andy Borowitz, Sarah Bernard, B.J. Sigesmund, thanks so much, you guys -- Bill.

HEMMER: All right, Heidi. In a moment here, Blockbuster's big plans. But are those plans a bit too late? The video giant is expanding, and there could be something in it for you.

Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: All right. Welcome back. The markets are open, and Blockbuster Video getting into DVD home delivery.

Christine Romans, working for Andy Serwer and minding everybody's business here. Morning.

CHRISTINE ROMANS, CNN FINANCIAL CORRESPONDENT: I'm going to say this with a smile.

HEMMER: Go.

ROMANS: The markets are lower -- sharply lower. The Dow Jones Industrial Average had a...

HEMMER: Wasn't much of a smile.

ROMANS: ... had a 130-point rally yesterday. What the market giveth, Cisco taketh away. Cisco down about two bucks here. We told you that its profit was up 41%. A decent profit growth, but inventories grew a little bit, and the CEO said its customers were a little cautious -- cautiously optimistic. So, Cisco is pulling the Nasdaq down almost 2%.

HEMMER: Everything they gained yesterday -- what they lost last Friday. We'll see what happens today.

Blockbuster?

ROMANS: And we talked about this earlier. An amazing story: If you like to rent videos at home, Blockbuster is getting into this game tat Netflix has made famous, where you go online, put your list of movies that you want, company sends them to you in the mail, you ship them back. No late deliveries; no late fees. Wal-Mart's doing it for 19 buck, Blockbuster 20 bucks, Netflix $22.

HEMMER: The competition is on. Thank you, Christine.

COLLINS: All right.

Going to check in with Toure now, covering for Jack, and the "Question of the day. TOURE, GUEST ANCHOR: The "Question of the Day": Would you go the Olympics if money were not an issue? The best e-mail of the day from Tom, St. Charles, Missouri: "Why would I go and sit through long lines just to see a bunch of overpaid athletes and miss my daily dose of Heidi?"

COLLINS: Oh, stop.

TOURE: Yes, that's what it really says.

COLLINS: Thank you, Tom. Is that my dad?

HEMMER: Most of those athletes aren't paid, though.

COLLINS: No, they're not...

TOURE: Many of them are, though, and that's the problem.

COLLINS: Thanks, Tom. That was nice.

HEMMER: Thanks, Tom Collins. Kidding.

Coming up next hour here on CNN, much more on that situation in Najaf. And reports again today, U.S. and Iraqi forces ready to go yet again on the offensive. That's coming up next hour. Daryn Kagan has that.

We're back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Before we get out of here, Jack Cafferty's on vacation. We mentioned that. But we will continue to update you on the 9/11 Commission scorecard that Jack started just about three weeks ago. Number of days since the Commission made the recommendations protecting the country against terrorism are...

UNIDENTIFIED PEOPLE: Twenty.

HEMMER: ... 20 days.

Number of recommendations adopted by Congress to date are...

UNIDENTIFIED PEOPLE: Zero.

HEMMER: Alyson (ph), thank you. Much better than yesterday, by the way.

House and Senate Committees holding more hearings today on how to implement those recommendations. We'll keep you updated on that.

Thank you.

ROMANS: You're welcome.

HEMMER: Thank you. TOURE: Thank you.

HEMMER: You're back tomorrow?

TOURE: I am.

HEMMER: You know we will be.

TOURE: I know.

HEMMER: We have nowhere to go, Heidi.

COLLINS: You'll be here, though, watching us, too.

HEMMER: See you tomorrow morning. Here's Daryn Kagan now at the CNN Center. Daryn, good morning.

DARYN KAGAN, CNN ANCHOR: Number of minutes you need to work again today? Zero.

COLLINS: Zero.

KAGAN: You guys have a great day.

HEMMER: Bye, bye.

KAGAN: We'll get started with two hours.

Good morning from CNN Headquarters in Atlanta. I'm Daryn Kagan.

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Aired August 11, 2004 - 09:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning, everyone. 9:31 here in New York City. The opening bell just went off a few seconds ago. A big triple-digit gain yesterday for the Dow 30. So, we'll see where we go now after the Fed made its decision.
Bill Hemmer along with Heidi Collins. Hear Soledad is home and resting and waiting.

HEIDI COLLINS, CNN ANCHOR: Waiting.

HEMMER: And we're waiting for the phone call...

COLLINS: Yes.

HEMMER: ... here.

More hearings on the 9/11 panel's findings got underway about 30 minutes ago D.C. Today, lawmakers look at how the report might affect the Pentagon. We'll get you there live to the Hill in a moment. Ed Henry is standing by on that.

COLLINS: Also, just a few years ago, Republican Alan Keyes accused Hillary Clinton of being a carpetbagger. Now, a lot of Democrats are saying the same about Keyes. We'll talk to a couple of political gurus about that.

HEMMER: In the meantime, though, straightaway, the Middle East -- the story we talked about an hour and 20 minutes ago -- the explosion at a checkpoint north of Jerusalem, said to be the midway point between Jerusalem and Ramallah. Emergency personnel there say at least one person is dead.

This is what we know. According to reports out in the Middle East, a suicide bomber set up that explosion earlier today at a checkpoint -- Israeli Army checkpoint. Fifteen were wounded in additional to the one fatality, including eight Palestinians, seven Israelis on the injured side.

We were told a 60-year-old man lost his life. Two of the eight wounded now in serious condition. Three of the Israelis reported to have been seriously wounded. There's already been a claim of responsibility. The Al Aqsa Martyrs Brigade, a military offshoot of Palestinian President Yasser Arafat Fatah movement, has claimed responsibility for that. We'll continue to follow it. When we get more, we'll pass it along to you. That's the latest now out of the Middle East -- Heidi?

COLLINS: The head of the 9/11 Commission says al Qaeda may be a greater threat than ever. Chairman Thomas Kean told a House Armed Services Committee hearing yesterday that the organization lacks effective control and is increasingly dangerous. More hearings are underway right now.

CNN Congressional correspondent Ed Henry on Capitol Hill with the very latest. Ed, good morning.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Heidi.

That's right. Another busy day on Capitol Hill and, in fact, there are two hearings going on this morning about the 9/11 Commission's final report. One of them will feature Tom Kean and Lee Hamilton, the 9/11 Commission co-chairs that you mentioned, appearing before the House Intelligence Committee right now.

But a big change there: Porter Goss is not wielding the gavel. In fact, he gave up his chairmanship last night. Here's how he explained it this morning.

(BEGIN VIDEO CLIP)

REP. PORTER GOSS, CIA DIRECTOR NOMINEE: The text of the letter that I sent to Mr. Hastert is as follows:

"Dear Mr. Speaker, as a result of the honor bestowed upon me by the president today nominating me for the position of director of Central Intelligence, I believe it's appropriate to relinquish my position as chairman of the Permanent Select Committee on Intelligence during the pendency of the confirmation process of that nomination effective immediately.

"Therefore, I would ask that you appoint a member to take the chairmanship of the committee on a temporary basis effective immediately until the Senate makes a final determination on the president's nomination. I believe it continues to be appropriate for me to remain a member of the committee, however.

"Thank you for your consideration of this request. Very truly yours, Porter Goss."

A copy to Ms. Harman, and that letter has been sent to the speaker.

(END VIDEO CLIP)

HENRY: Republicans are ecstatic about the Goss nomination for two reasons. In recent weeks, the president's poll numbers on handling -- national security handling the issue of terrorism, they've dipped a bit. And Republicans think this will stop the bleeding and that they've overshadowed the Democratic line of attack a little bit.

And also secondly, while the Goss nomination is still not a slam dunk in the Senate, still the Democratic criticism has been somewhat muted and Republicans think that Goss is in fine shape.

The hearings will continue in addition to the House Intelligence Committee today. The House Armed Services Committee is meeting. Yesterday, Tom Kean testified there. He mentioned, as you had said earlier, that al Qaeda is a top threat. Something really needs to be done about it.

And Kean was saying that Congress only has a chance to reform government on an issue this grave once a generation. He's saying seize the day. And in fact, another House Armed Services Committee hearing this morning, and Democrats on that panel at about 11:00 a.m. today are going to introduce legislation.

They're going to use the 9/11 Commission's 41 recommendations as a baseline to really try to push the Republicans, put a little more heat on them, and say that it's time to pass this legislation, go far beyond just naming Porter Goss to go to the CIA, but actually implement the 41 recommendations, Heidi.

COLLINS: All right. Ed Henry, live on Capitol Hill. Thanks.

HEMMER: Twenty-five minutes before the hour. Time for Kamber and Watkins today -- formerly Kamber and May. We'll explain in a moment on that.

At issue today, the Illinois Senate race: Democrat Barack Obama versus the conservative Alan Keyes. We talked with Alan Keyes last hour about his decision for run for the Senate where he recently claimed residence.

(BEGIN VIDEO CLIP)

ALAN KEYES (R), ILLINOIS SENATE CANDIDATE: I am from the State of Illinois now. But they should vote for me if they believe in the things I believe in and want to support those things for Illinois and for this country. It's the reason that we should, in fact, vote for anybody who's a candidate for office.

And there are a lot of people in Illinois who do believe as I do about things like the importance of respecting the basic declaration principles that protect the life of the innocent, limiting government, having a tax system that isn't essentially another form of oppression that takes control of money out of people's hands.

(END VIDEO CLIP)

HEMMER: That was from last hour. Now this hour, Democratic consultant Victor Kamber down in D.C. Vic, good morning to you. Good to have you back here.

VICTOR KAMBER, DEMOCRATIC CONSULTANT: Good morning, Bill. How are you?

HEMMER: I'm doing just fine. Thanks for that.

Republican strategist Joe Watkins sitting in for -- playing the role of Cliff May today here in New York City. Good morning, Joe, and welcome here...

JOE WATKINS, REPUBLICAN STRATEGIST: Good to be here. Good to be here.

HEMMER: ... and welcome to AMERICAN MORNING.

First about Alan Keyes and the whole state of the Republican party in Illinois, Joe -- what is that state?

WATKINS: Well, the State of Illinois is fairly going to be a key state for Republicans this fall, and Alan Keyes has a great chance to win it if he can stick to the issues where he's strong.

Clearly, you have two African-American candidates -- Illinois is going to have a black senator this year one way or the other. We have two African-American candidates who are articulate and who are passionate about the issues.

Alan Keyes has to stick to the issues where he's strong. He has to show the difference between himself and Barack Obama. And if he does that and if he brings up the values debate and keeps away from the issue of slavery and things past, he has a good chance to win.

HEMMER: You say a clear chance to win earlier. Victor, you believe that?

KAMBER: I -- first of all, I'm delighted he's running in Illinois. I just -- I'm so delighted I can't tell you. As an Illinoisan, it just -- it shows what the Republican party truly is. This -- Alan Keyes is the Republican party, and I want America to know that.

And I hope he does stick to the issues, because every time he opens his mouth, as articulate as he is, he loses votes. He loses moderate Republicans. He loses moderate Democrats. He loses Independents.

This man is so far to the right, so extreme in his views, I think Illinois probably -- I'll be surprised if he carries three three counties of the 101 counties in Illinois.

WATKINS: Well, Alan Keyes really does represents heartland issues. I mean, Illinois is a Midwestern state. It's got a heartland sense of America, and Alan Keyes really does represent that. He represents the thoughts and views of people of faith, of Catholics and Protestants, who make up a great percentage of the people of Illinois.

And if he sticks to the issues, the values issues and talks about the needs of the people of Illinois, about healthcare and education and all those things, he'll do very, very well.

HEMMER: All right, that's topic number one. You say three counties. We're going to watch that in early November, Victor.

KAMBER: Thank you.

HEMMER: You're on record -- three counties in the State of Illinois.

Second topic: John Kerry...

KAMBER: Out of 101.

HEMMER: John Kerry says he would still vote for war, if given the opportunity again, even knowing what we know now, Victor.

WATKINS: Well, we're glad that he said that.

HEMMER: Hang on one second, Joe. The president seized on it yesterday, Victor. Is this going to come back to hurt him, or does he have any other choice but to continue to support his original vote?

KAMBER: Well, I think he's being honest with you. Frankly, as a Democrat, I'm a little disappointed. I would have hoped that with all the information he knows now, he would not have supported a war, but he believes that.

WATKINS: Should have come clean a little bit sooner, Victor.

KAMBER: The difference is that he said, Joe -- one second -- that no one asked him before. And he said he voted how he voted. The difference is, he said he would -- he voted for authorization. He wouldn't have gone to war without a plan for peace, without a plan for withdrawing, which clearly this president didn't have and doesn't have still.

WATKINS: This president is a strong and decisive leader. And that's what John Kerry still has to demonstrate to Americans, that he is strong and decisive. He could have told Americans at the Democratic convention exactly where he stood on the issue of the war...

KAMBER: Oh, he did.

WATKINS: ... and that he supported the president's decision to go to Iraq.

KAMBER: He -- he told the American public that war -- that getting rid of Saddam Hussein was the good thing to do. He's also saying, "Mr. President, where is your plan to bring our boys back home, our women back home, our people back home? Where is the plan for peace? You don't have one, Mr. President. You went to war."

Yes, the president's decisive. He wants to follow whatever he wants to do without any plan for the follow-up of it.

WATKINS: Well, the president does have a plan for peace.

HEMMER: Joe, are you finished? That's OK. You pushed -- you can keep going.

I want to get to the third topic.

WATKINS: OK. Third topic. HEMMER: Pick up a cover -- pick up a "USA Today" today. And there's the whole relationship about Arnold Schwarzenegger and how he is used or not used during this campaign.

Joe, start us off here. How is the relationship between the White House and Schwarzenegger in California?

WATKINS: I think it's very, very, very good. And I think that Arnold Schwarzenegger's going to be a tremendous help to George Bush in the November election.

He is the most popular California governor in 30 years. He's got a 65% approval rating from Californians. And that means that a lot of Democrats like him, as well as Republicans.

And I think that he's going to be a huge help to George Bush in the November election. He gives George Bush a chance to win California, which will be huge.

HEMMER: Victor?

KAMBER: Well, I don't disagree that Arnold Schwarzenegger's popular. Frankly, he'll draw crowds, which all celebrities do. I wish he would go around the country. I hope the president spends a lot of time in California trying to carry the state, and maybe even, you know, brings Alan Keyes to California, or Schwarzenegger to Illinois. One or the other.

It'd be great to have -- by the way, Keyes should demand to speak at the Republican convention following Arnold Schwarzenegger. The two of them can put their views out as to what the Republican party is.

WATKINS: Well, the Republican convention -- you should know, Victor -- is going to be the most diverse in recent years. Almost 20% of the delegates are going to be minorities this year. So, it's going to be a very, very different Republican National Convention...

KAMBER: You're absolutely right, it'll be a great show to put on television. that's not how they'll vote, but they'll show it on television.

WATKINS: It'll be substance. It'll be substance.

HEMMER: We'll leave it there. Thanks, Victor, Joe. Came out swinging today, Joe.

WATKINS: We did.

HEMMER: Come on back. Victor, talk to you again next week, OK?

KAMBER: Thank you, Bill.

HEMMER: Thank you, gentlemen -- Heidi?

COLLINS: About 42 minutes past the hour now. Time for a look at some of today's other news with Carol Costello and the very latest out of Iraq, Carol.

CAROL COSTELLO, CNN CORRESPONDENT: Yes, I do have the latest out of Iraq, Heidi. Thank you.

Preparations now underway for a major assault in the Iraqi city of Najaf. Multi-national forces there have been battling fighters loyal to radical cleric Muqtada al-Sadr. The U.S. military now says U.S. troops and Iraqi National Guardsmen are conducting joint training exercise in preparation for a major assault on the Mehdi army.

Here in the United States, there are reports of a two-alarm fire in Seattle, Washington. Take a look at this video. It shows the two- story building engulfed in flames, the roof collapsing as a result. Firefighters are now trying to prevent the blaze from spreading to nearby buildings. No reports of any injuries so far.

Pakistan is protesting an FBI sting operation, saying it endangered one of its diplomats. The FBI arrested two leaders of an Albany, New York, mosque in a sting involving money laundering and a shoulder-fired missile. Pakistan condemned the operation, saying the agency used a fictitious plot to assassinate Pakistan's ambassador to the United Nations. A U.S. attorney said the ambassador was never in any danger.

And finally, the Negro League Legends Hall of Fame is set for a groundbreaking ceremony in Washington, D.C. The ceremony will take place on Saturday at the Walter "Buck" Leonard Memorial Hall. Over 3,000 Negro League legends played from the 1920s through the 1960s -- many among the greatest players to ever play the game of baseball.

Back to New York now.

HEMMER: All right. Carol, thanks for that -- and well deserved, too.

Check of the weather now. Chad Myers, he's going to be very busy from this day going forward. Hey, Chad, what are you seeing now?

CHAD MYERS, CNN METEOROLOGIST: Good morning, Bill.

The storm really just getting going now. Bonnie almost died overnight. And if you look at the map here, there's nothing to speak of. But it really blew up in the overnight hours. Typically, they go up at night, down in the day -- opposite of what typical storms in the Midwest will do.

But this thing is going to travel right up toward Panama City, and probably 60 to 70 mile per hour winds -- could even be stronger than that. But right now, that's the official National Hurricane Center forecast. Winds right now are 50.

They are flying the plane into the storm right now to see what's going on, but even as tomorrow morning rolls around, probably almost this exact time tomorrow morning, it's going to be under the gun here for Panama City. It could be one way or the other, but the center of what we call the cone is right over Panama City. Could be Apalachicola, could be Pensacola, so don't let your guard down there.

But that is not as big of a storm as this one. Not that this isn't severe or a 70 mile per hour wind dangerous, but this storm here now, forecast to have winds between 105 and 110 miles per hour, go over Jamaica, today over Cayman Brac, over Pinar del Rio, over Havana, and then not all that far from Key West.

Right now, the winds are 65 miles per hour, but they did just fly in it and found 88 mile per hour winds aloft -- where the plane flies. Here goes the storm, right over Havana, right over parts of Key West, and then finally on up into Cape Canaveral. Yes, it could even go all the way across parts of Florida with some winds.

The waves here by Friday are going to be eight to 10 feet. Cocoa Beach, our affiliate WFTV out of Orlando -- nice shot of the beach, pretty tranquil now, Bill. But the problem is this storm is going to be sucking in air from this direction, very big waves on this side -- well, as well, of course, as the west side. Back to you.

COLLINS: Looks beautiful.

MYERS: It does. Looks great; 48 hours from now, it won't.

COLLINS: Yes. We'll check on that then. All right, thanks so much, Chad.

MYERS: You're welcome.

COLLINS: Still to come now this morning, two video rental giants are battling it out, but it's good news for you. We'll tell you about it just ahead.

HEMMER: Also, supermodel Naomi Campbell clashing with her cleaning lady. Now in trouble with the law. That's ahead next on "90-Second Pop."

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

COLLINS: Every Wednesday about this time, we bring you "90- Second Pop."

So here now, our pop players, Andy Borowitz, the man responsible for borowitzreport.com, Sarah Bernard, contributing editor for "New York" magazine, and B.J. Sigesmund, staff editor for "US Weekly."

Thanks, guys, for being here today.

Andy, let's start with you. Naomi Campbell, she's known for kind of having this temper. There have been incidents before.

ANDY BOROWITZ, BOROWITZREPORT.COM: Yes.

COLLINS: But now her maid is saying that the supermodel slapped her, sent her to the hospital. What's happening here? BOROWITZ: Well, you know, Heidi, I'm chief of CNN's Naomi Campbell bureau. So, I've been on this for some time.

COLLINS: It's a new bureau.

BOROWITZ: But, yes, apparently this happens all of the time to supermodels. She asked her housekeeper to help her pack for Brazil. And I guess she balked at that request. And then, there were some fisticuffs, apparently.

I heard this story, and I just said, "I smell reality show," because it sort of combines "America's Top Model" and "The Contender." It's sort of like a combination of bashing and boxing. So I think there's going to be a happy ending. I do.

SARAH BERNARD, "NEW YORK" MAGAZINE: I think it's also kind of like which came first? Is she acting like she thinks a supermodel is supposed to act? Or is she really like this and that's how it happened?

B.J. SIGESMUND, "US WEEKLY": Well, this...

BOROWITZ: Right.

BERNARD: I mean, she's acting it out, right?

SIGESMUND: She is obviously really like this. So remember, Naomi Campbell hit her assistant with a cell phone back in 1998.

COLLINS: Right.

SIGESMUND: And she admitted it. She pleaded guilty to that in 2,000 and had to go to anger management school. Clearly, she didn't graduate with honors, because she's back to her old tricks apparently.

COLLINS: No.

BOROWITZ: My sources tell me that Naomi regrets this incident. In her words she says, I'm not as known to wash my underwear. So she is feeling bad.

SIGESMUND: The best part of this is that the housekeeper is of Jamaican -- from Jamaica. And Naomi is of Jamaican descent.

COLLINS: Yes.

SIGESMUND: And just last week, Naomi was honored at city hall in New York for Jamaican -- or her work for Jamaican independence.

COLLINS: All right. Well, maybe they're rethinking that one today. Hmm.

All right, Sarah, let me ask you about Latoya Jackson. She's got a new song. It's a hit. It's called "Just Wanna Dance."

BERNARD: Right. COLLINS: But the funny thing here, she didn't put her name on it?

BERNARD: I know. She's trying to...

COLLINS: Toy.

BERNARD: She's trying to change her image, exactly, distance herself from the Jacksons. She's just calling herself Toy, and she was claiming that deejays didn't know who this mysterious person was until she personally called a bunch of them and said, you know, it's me, it's me.

And what's really interesting is that, I think it's hit No. 14 on one of the billboard charts, but I didn't realize it. There's actually multiple billboard charts.

BOROWITZ: Oh yes.

SIGESMUND: Yes.

BERNARD: It's not like there is just one thing. So this is obviously the chart for less -- or maybe untalented Jackson family members...

SIGESMUND: Oh! I want to say...

BERNARD: ... who just, you know, have to have their own chart...

SIGESMUND: To me...

BERNARD: ... because otherwise they'd never get, you know, close to the top then.

SIGESMUND: I just don't believe this at all. She herself admitted some of the deejays didn't know it was me. Well, that means some of them did know it was her. And if you were going to put on a song by this artist, I think that you are going to say, well, this is Latoya Jackson as Toy. It's clearly a marketing and a PR ploy, to me.

BOROWITZ: I just hope other Jacksons don't start shortening their names, like Tito for example. I just really don't.

COLLINS: That would be very bad.

BOROWITZ: They'd have problems in that area.

SIGESMUND: But she does have a point, which is that her last name, Jackson, does come with baggage.

BOROWITZ: A little.

SIGESMUND: And that she doesn't get taken seriously anymore.

BERNARD: But she needs a -- I mean, it would like Ashlee Simpson just being Ashlee, just being Ashlee with, you know, nothing else. COLLINS: Oh, well, that's probably pretty debatable.

(END VIDEOTAPE)

Andy Borowitz, Sarah Bernard, B.J. Sigesmund, thanks so much, you guys -- Bill.

HEMMER: All right, Heidi. In a moment here, Blockbuster's big plans. But are those plans a bit too late? The video giant is expanding, and there could be something in it for you.

Back in a moment after this.

(COMMERCIAL BREAK)

HEMMER: All right. Welcome back. The markets are open, and Blockbuster Video getting into DVD home delivery.

Christine Romans, working for Andy Serwer and minding everybody's business here. Morning.

CHRISTINE ROMANS, CNN FINANCIAL CORRESPONDENT: I'm going to say this with a smile.

HEMMER: Go.

ROMANS: The markets are lower -- sharply lower. The Dow Jones Industrial Average had a...

HEMMER: Wasn't much of a smile.

ROMANS: ... had a 130-point rally yesterday. What the market giveth, Cisco taketh away. Cisco down about two bucks here. We told you that its profit was up 41%. A decent profit growth, but inventories grew a little bit, and the CEO said its customers were a little cautious -- cautiously optimistic. So, Cisco is pulling the Nasdaq down almost 2%.

HEMMER: Everything they gained yesterday -- what they lost last Friday. We'll see what happens today.

Blockbuster?

ROMANS: And we talked about this earlier. An amazing story: If you like to rent videos at home, Blockbuster is getting into this game tat Netflix has made famous, where you go online, put your list of movies that you want, company sends them to you in the mail, you ship them back. No late deliveries; no late fees. Wal-Mart's doing it for 19 buck, Blockbuster 20 bucks, Netflix $22.

HEMMER: The competition is on. Thank you, Christine.

COLLINS: All right.

Going to check in with Toure now, covering for Jack, and the "Question of the day. TOURE, GUEST ANCHOR: The "Question of the Day": Would you go the Olympics if money were not an issue? The best e-mail of the day from Tom, St. Charles, Missouri: "Why would I go and sit through long lines just to see a bunch of overpaid athletes and miss my daily dose of Heidi?"

COLLINS: Oh, stop.

TOURE: Yes, that's what it really says.

COLLINS: Thank you, Tom. Is that my dad?

HEMMER: Most of those athletes aren't paid, though.

COLLINS: No, they're not...

TOURE: Many of them are, though, and that's the problem.

COLLINS: Thanks, Tom. That was nice.

HEMMER: Thanks, Tom Collins. Kidding.

Coming up next hour here on CNN, much more on that situation in Najaf. And reports again today, U.S. and Iraqi forces ready to go yet again on the offensive. That's coming up next hour. Daryn Kagan has that.

We're back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Before we get out of here, Jack Cafferty's on vacation. We mentioned that. But we will continue to update you on the 9/11 Commission scorecard that Jack started just about three weeks ago. Number of days since the Commission made the recommendations protecting the country against terrorism are...

UNIDENTIFIED PEOPLE: Twenty.

HEMMER: ... 20 days.

Number of recommendations adopted by Congress to date are...

UNIDENTIFIED PEOPLE: Zero.

HEMMER: Alyson (ph), thank you. Much better than yesterday, by the way.

House and Senate Committees holding more hearings today on how to implement those recommendations. We'll keep you updated on that.

Thank you.

ROMANS: You're welcome.

HEMMER: Thank you. TOURE: Thank you.

HEMMER: You're back tomorrow?

TOURE: I am.

HEMMER: You know we will be.

TOURE: I know.

HEMMER: We have nowhere to go, Heidi.

COLLINS: You'll be here, though, watching us, too.

HEMMER: See you tomorrow morning. Here's Daryn Kagan now at the CNN Center. Daryn, good morning.

DARYN KAGAN, CNN ANCHOR: Number of minutes you need to work again today? Zero.

COLLINS: Zero.

KAGAN: You guys have a great day.

HEMMER: Bye, bye.

KAGAN: We'll get started with two hours.

Good morning from CNN Headquarters in Atlanta. I'm Daryn Kagan.

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