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CNN Live At Daybreak
More Fighting in Najaf; Faced With Attacks on His War Record in Vietnam, Kerry Going on the Offense
Aired August 20, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: More fighting in Najaf, more talking, too. How will the standoff end and when?
It's Friday, August 20, and this is DAYBREAK.
Well, good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Betty Nguyen in for Carol Costello.
Now in the news, heavy fighting in Najaf rages on. U.S. and Iraqi forces are facing off against fighters loyal to cleric Muqtada al-Sadr. The Iraqi government has warned the militants to stop fighting or face a major offensive, but it doesn't appear to have begun. Stay close, we're going live to Baghdad in just a few minutes for the latest from Iraq.
Now to Fallujah. Early morning air strikes by U.S. jets leave at least two Iraqis dead. Witnesses say people on the ground were shooting at U.S. forces with a machine gun before the strikes.
United Airlines reps are heading back to bankruptcy court in Chicago this morning. The airline is warning the court it will likely have to scrap its employee pension fund to get back in the black.
And flooding from typhoon Meggie is dealing a mega blow to Japan and South Korea. The death toll from the storm is now at least 13. Flooding and landslides have left thousands homeless. Meggie is now a tropical storm, which is a little bit of good news there. We definitely don't want to see all the devastation that we saw last week with hurricane Charley.
CHAD MYERS, CNN METEOROLOGIST: Right. And a typhoon and a hurricane are the same thing.
NGUYEN: Totally different, yes.
MYERS: Cyclone, same thing. They're just -- it depends on where they are in the ocean. If you're in the Atlantic Ocean or in the eastern Pacific Ocean, we call them hurricanes. You call them over there -- if you go over toward Japan and where that was, Korea, they're called typhoons. So it's just the exact same rotation, the exact same ocean storm.
(WEATHER REPORT) NGUYEN: All right, now to the campaign trail. President Bush is relaxing for a week at his Texas ranch. But aides say the president is also working on the acceptance speech he'll deliver at the Republican national convention in two weeks.
John Kerry takes his campaign to North Carolina and Florida today. The senator is set to meet with laid off workers and families in Charlotte this morning. Then he'll go to southwest Florida to get a firsthand look at damage from hurricane Charley.
Meanwhile, faced with unrelenting attacks on his war record in Vietnam, Kerry is going on the offense. At issue, television ads from a Republican funded veterans group that accuses Kerry of flat out lying.
That story now from CNN's Dan Lothian.
(BEGIN VIDEO TAPE)
(BEGIN VIDEO CLIP FROM KERRY CAMPAIGN AD) SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The first definition of patriotism is keeping faith with those who wear the uniform.
(END VIDEO CLIP)
DAN LOTHIAN, CNN CORRESPONDENT (voice-over): In an all out effort to defend his war record, Senator John Kerry launched an attack on the group Swift Boat Veterans for Truth, which has been running a television ad in key battleground states and speaking out publicly, questioning his service and medals.
KERRY: This group isn't interested in the truth. They're not telling the truth.
LOTHIAN: Speaking in Boston to some 5,000 members of the International Association of Firefighters, Kerry took the offensive, saying in public what his press releases and campaign have said in response for months.
KERRY: Bring it on.
LOTHIAN: Kerry also went after President Bush for not denouncing the ads.
KERRY: He wants them to do his dirty work.
LOTHIAN: The Bush campaign calls that claim false and insists the president has always considered Kerry's service in Vietnam noble. But last week on LARRY KING LIVE, Bush passed up the opportunity to call on his supporters to back down.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Well, I haven't seen the ad, but what I do condemn is these unregulated soft money expenditures by very wealthy people.
LOTHIAN: Kerry's war record has been questioned throughout his political career. But the controversy has intensified in the presidential campaign. The Kerry campaign is firing back we another 30 second ad.
(BEGIN VIDEO CLIP FROM KERRY CAMPAIGN AD)
UNIDENTIFIED MALE: I expected I'd be shot. When he pulled me out of the river, he risked his life to save mine.
(END VIDEO CLIP)
LOTHIAN: This aggressive response comes as the credibility of the leading veteran behind the critical Kerry ad is being questioned. Larry Thurlow had disputed Kerry's claim of a gun battle that led to a Bronze Star. But CNN has obtained Thurlow's own military record, showing that, in fact, all the boats came under weapons fire in the area that day. Thurlow now says his record reflects an account written up by Kerry and calls it "a lie."
(on camera): The new Kerry counter-ad will run in Ohio, Wisconsin and West Virginia. That means the Kerry campaign is deviating from cost saving plans not to buy any television ads until September, a sign that despite the official line, there is pressure to end this controversy.
Dan Lothian, CNN, Derry, New Hampshire.
(END VIDEO TAPE)
NGUYEN: Now for more campaign coverage, you can log onto cnn.com/politics and check out a special edition of America Votes 2004.
Muqtada al-Sadr is now asking supporters to hand over the keys to the Imam Ali Mosque to the highest Shiite leaders in Iraq. That's according to one of al-Sadr's aides. Such a move would have huge religious significance.
Our John Vause with us now live from Baghdad to explain what all of this means.
Hi there -- John.
JOHN VAUSE, CNN CORRESPONDENT: Hello, Betty.
Let's start with the fighting which has been going on in Najaf. It appears to have eased off in the last few hours since dawn. Still, the sound of sporadic gunfire and explosions.
But the heaviest clashes in Najaf came overnight. U.S. warplanes bombed positions held by the Mahdi militia. AC-130 gunships and helicopter gunships also hit a number of targets east of the Imam Ali Mosque. There's also been intense gun battles between the combined U.S. and Iraqi forces in and around Najaf's huge sprawling cemetery.
The health ministry in Baghdad says seven Iraqis in Najaf have been killed in the last 24 hours. So far, no military movement on the mosque itself, but the interim Iraqi government appears to have increased the offensive to pressure Muqtada al-Sadr. The Iraqi prime minister issuing a final call for him to leave the shrine, dissolve his Mahdi militia and hand over their weapons. Al-Sadr appears to be defiant. Once again, he's leaving the talking to his spokesman, saying there will be no negotiations with the interim Iraqi government, only with a delegation from the newly appointed National Conference.
So we've had no military movement on the mosque itself. But the interim Iraqi government appears to have increased the offensive to pressure Muqtada al-Sadr. The Iraqi
Al-Sadr appears to be defiant. Once again, he's leaving the talking to his spokesmen saying there will be no negotiations with the interim Iraqi government, only with a delegation from the newly appointed National Conference.
And as you mentioned, Betty, as a spokesman for al-Sadr has asked his supporters to hand the control over to senior Shiite religious authorities.
Now, the U.S. is also engaged in serious fighting here in Baghdad in the area known as Sadr City. That's a sprawling slum. It's a strengthened for Muqtada al-Sadr. Tanks backed by helicopter gunships have moved through the neighborhood. This is being described as one of the biggest U.S. offensives there in months.
Now, the death toll in Baghdad in the last 24 hours, 10 killed, 82 wounded. There's also been fighting in Fallujah. U.S. warplanes came under fire from small arms fire as well as anti-aircraft fire. They responded by firing missiles into an industrial part of Fallujah. Doctors there say at least two killed, four wounded.
Finally on to Basra. The main office of the southern oil fields was burned down. Those loyal to al-Sadr are being blamed for that. The oil infrastructure in Iraq has often been a target. This is having a pretty big impact. Oil exports apparently down from two billion barrels a day down to one billion barrels a day -- Betty.
NGUYEN: We're going to be talking about oil a little bit later on in the show.
But right now, John, I want to ask you about Muqtada al-Sadr. He's asked supporters to hand over the keys of the mosque.
Now, is this purely symbolic or does this mean that he and his militiamen may be leaving the mosque some time soon?
VAUSE: Well, it's very difficult to say what this actually does mean in practice and whether he will follow through on this. Al-Sadr has been in control of the mosque since April. If he hands it over to senior Shiite leaders, then that means that the militia inside are men who are just visiting, pilgrims, if you like, making a pilgrimage to this sacred site in all of Islam. It makes it that much more difficult, much more explosive, if, in fact, the U.S. and Iraqi forces lead an offensive on that mosque, because it will no longer be controlled by al-Sadr, who is being seen as a renegade by some. But, rather, it will be controlled by the senior religious figures.
It ups the ante a little, if you like, in the equation here -- Betty.
NGUYEN: Exactly.
And the Iraqi interim prime minister has already issued that final call and we saw the offensive overnight. But are you seeing a deadline being made here, or at least being put forth to al-Sadr?
VAUSE: Yes, there's no deadline coming from Allawi. What we have seen in this week alone, we've heard twice from various ministers within the interim Iraqi government, warning that military operations were just hours away. And then they've only backed down afterwards. What we heard yesterday from Prime Minister Allawi, just basically saying that the time for talking was over, that this was the last call. He refused to be pinned down on any time frame on this. So it's still an open-ended question when this military operation, if, in fact, it does happen, when it will happen -- Betty.
NGUYEN: A very volatile situation there.
CNN's John Vause in Baghdad this morning.
Thank you.
And you can read up on the deteriorating situation in Najaf, plus find out more about just who Muqtada al-Sadr is and who may be funding him. All you have to do is click on our Web site. That address is on the screen. It is cnn.com/world.
The accuser's stepfather is the latest witness in a pretrial hearing for Michael Jackson.
CNN's Miguel Marquez is covering the hearing in Santa Maria, California.
(BEGIN VIDEO TAPE)
MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): "John Doe," the stepfather of Michael Jackson's accuser, takes the stand. Questioned by Jackson's lawyer about what he knew about the relationship between private investigator Brad Miller and Jackson's former lawyer, Mark Geragos.
If a relationship can be established, the defense may be able to get potentially crucial evidence tossed out.
STEVE CORBETT, "SANTA MARIA TIMES": And I don't think that they're succeeding, the defense, in proving that. They're not able to do that as of yet. MARQUEZ: But "John Doe's" questioning did reveal his claim that someone from Neverland Ranch called the accuser's mother in the days after the documentary "Living With Michael Jackson" aired, asking that the boy and his family return to Neverland to make a rebuttal video. Doe said he responded by saying, "What are you offering?" Then Doe said the Neverland employee told him that they would offer security, a college education to the boy and his siblings, and a new home for the family.
Doe then said he told the Neverland employee he knew Michael Jackson was going to make millions off the video and that "his small family was making zero."
CORBETT: There is this insinuation that there is a give and take, you know, we'll give you this in exchange for that.
MARQUEZ: In a setback for the defense, the judge ruled that Santa Barbara County Sheriff Jim Anderson could release a statement and parts of the attorney general's investigation into whether Michael Jackson was mistreated while in custody. Jackson made the claims on the CBS program "60 Minutes," but his defense lawyer said Jackson never filed an official complaint and he was never interviewed for the investigation.
CORBETT: Mesereau stood and made a very strong argument against releasing what he called propaganda by prosecutors.
MARQUEZ (on camera): Jackson's defense also showed video of the search of Neverland Ranch to a judge, trying to prove that the search investigators conducted was broader than the search warrant allowed, hoping to get more evidence tossed out.
Miguel Marquez, CNN, Santa Maria, California.
(END VIDEO TAPE)
NGUYEN: And meanwhile, Michael Jackson has posted a statement on his Web site. He complains that he and his family have been vilified for years. Jackson says, in part: "I personally have suffered through many hurtful lies and references to me as 'Wacko Jacko', as well as the latest untruth about me fathering quadruplets. This is intolerable and must stop."
Now, here's a look at other news across America this morning.
In Los Angeles, a hearing is scheduled today in Robert Blake's murder trial. A former private investigator is expected to testify. Blake is charged with killing his wife, Bonny Lee Bakley, in 2001. Blake's trial is scheduled to start November 1.
Caught on tape in Ohio, six people are charged with beating an alleged peeping Tom. Officials say Mario Russo was spotted outside a 5-year-old girl's bedroom with his pants around his ankles. Police say the girl's aunt admits to sexually assaulting Russo with a tree branch. Russo is in intensive care. In Gilmore, Arkansas, the body of a 7-year-old girl missing since Sunday has been found. That body is of Patricia Ann Miles. It was discovered in a field not far from where her shoes and bicycle were recovered. A family friend is charged with kidnapping and is being held on a million dollars bond.
Well, it's time to load 'em up and move 'em out, or at least try. Trucks full of help for hurricane victims hit a roadblock on the way to Florida.
Also ahead, we'll investigate some of the roots of intolerance. We'll take a closer look at what Saudi children are learning about other religions.
Plus, Americans are covered in gold in Athens. Don't you like the sound of that? We're going there live for the latest.
But first, here's a look at what else is making news this Friday morning.
(COMMERCIAL BREAK)
NGUYEN: After three up sessions, Wall Street starts today on the minus side.
The Dow opens down 42 points.
The Nasdaq is off about 11 1/2.
And the S&P 500 is down about 4 points.
And that's apparently dragging down markets overseas.
Britain's FTSE 100 is down 10 1/2 points.
France's CAC Index is down almost 22 points.
In Japan, the Nikkei closed down about 14 points.
Your news, money, weather and sports.
The time right now is 5:17 Eastern.
And here is what is all new this morning.
There was more intense fighting in the Iraqi city of Najaf overnight. Iraqi officials say seven Iraqis were killed and nearly 40 wounded as U.S. Marines and Iraqi troops battled Muqtada al-Sadr's militia.
Oklahoma City bombing conspirator Terry Nichols has decided not to appeal his 161 state murder convictions. That means Nichols will spend the rest of his life in prison. An appeal could have provided another chance for prosecutors to seek the death penalty.
Now to money. Google scores big on opening day. Stock in the Internet search engine climbed from its $85 initial price to end at just above $100 a share. That's an increase of about 18 percent.
In culture, move over Monopoly, make room for Trump. The Donald releases a new board game encouraging players to cut a deal and make billions of dollars. Yes, it's that easy. It's simply called Trump, The Game.
Now to sports, U.S. gymnast Carlie Patterson wins the gold medal in the women's all around. She becomes the first U.S. woman to win the Olympic all around since Mary Lou Retton back in 1984.
Did you get a chance to watch that -- Chad?
MYERS: You know, I didn't, but I should have. Boy, the medal count is just amazing this year.
NGUYEN: Oh, it's wonderful.
MYERS: They are doing so great there.
And look, look at the stands.
NGUYEN: I know.
MYERS: They're full.
NGUYEN: That's one event where they're full. There's a lot of them where they're not doing so great.
MYERS: I know. I know. Well, we'll boast about them when we get some full but...
NGUYEN: Exactly. Stay positive.
MYERS: Hey, good morning, everybody.
(WEATHER REPORT)
NGUYEN: Well, it has been one week since hurricane Charley went on its rampage through parts of southwest Florida. Since then, state officials say the death toll has climbed to 23. And Charley has caused an estimated $7.4 billion in damage to ensured properties alone. And as of last night, more than 335,000 customers were still without power.
In addition to all of that, much needed supplies have arrived. But some are stuck on trucks or are tied up in red tape.
Tracey Shevertson of our affiliate WFTS reports.
(BEGIN VIDEO TAPE)
UNIDENTIFIED FEMALE: And we got turned away in Punta Gorda.
UNIDENTIFIED MALE: I did.
TRACEY SHEVERTSON, WFTS CORRESPONDENT (voice-over): Seventy-nine semis just at this one location, loaded with supplies and nowhere to go.
UNIDENTIFIED MALE: I have water.
UNIDENTIFIED MALE: I'm going on three days sitting with water. It's probably boiling it's so hot in there.
UNIDENTIFIED MALE: I want to distribute this water to the people. They say that they don't need water.
UNIDENTIFIED FEMALE: We'll give you the ice and then you can get water at that next place right up there.
SHEVERTSON: We found plenty of hurricane victims who would disagree. While some comfort stations may be running low, staging areas like Lakeland Linder Airport are overflowing with trucks. And FEMA says that's just how it works.
UNIDENTIFIED MALE: And you think it's not frustrating to us? We're very frustrated with the process. But we're -- the process has to take place. Ice is a critical situation. We have ice sitting here waiting for the victims.
SHEVERTSON: FEMA is waiting on the General Services Administration to find government approved warehouse space so these trucks can unload. Until then, the clock is ticking and the price of water is going up.
UNIDENTIFIED MALE: We're getting $975 a day to stand here whether we move or not.
(END VIDEO TAPE)
NGUYEN: That was Tracey Shevertson of our Fort Myers affiliate WFTS, reporting.
Well, all bets are off, at least for the 2004 presidential election. Many are hedging their bets as to who they think will come out in front in November. But if you want to gamble on the outcome, well, you'd better think again.
You're watching DAYBREAK for Friday.
(COMMERCIAL BREAK)
NGUYEN: Time now to check our Web clicks this morning, what stories are getting your attention on our Web site.
Well, let's go to cnn.com right now to check them out.
First up, missing Arkansas girl found dead.
Also popular on the Web, a Brazilian tribe has no words for numbers. They can't do math.
And, finally, shoe bomber Richard Reid sues a prison for harsh conditions. Well, it's illegal to bet on the outcome of the upcoming presidential election in the United States, but that isn't stopping people from wondering about the odds, or at least finding a way around the law.
Our Richard Quest makes his way to the nation's betting capital to investigate.
(BEGIN VIDEO TAPE)
RICHARD QUEST, CNN CORRESPONDENT (voice-over): You can bet on the wheel. You can bet on the cards. You can bet on the slots. But in America, you just can't bet on these two. Even in Las Vegas, it's illegal to bet on who will win the U.S. presidential election.
(on camera): Do you think it's silly we can't bet on the presidency here? BENJAMIN ECKSTEIN: I think it's absolutely ludicrous. You look at any place around the world, whatever country you want to go to, and you can bet on almost anything. I think we should be allowed to bet on the presidency. It would be great fun.
QUEST (voice-over): Since he can't have a flutter, Benjamin Eckstein (ph) works out the odds. This means gamblers outside the U.S. can stake a bet. And at the moment, like the polls, the odds are even-stevens.
(on camera): Now, even-stevens is hardly a get rich quick scheme. So here on the strip, let's put it to the test. Would people bet, and how much?
UNIDENTIFIED FEMALE: Oh, it's a 50-50 race, but my hopes are with Kerry, absolutely.
QUEST: Why is that?
UNIDENTIFIED FEMALE: Well, I am hopeful for change.
QUEST: Put your money where your mouth is. How much would you bet?
UNIDENTIFIED FEMALE: Easy $100.
QUEST: Oh, dear. The two of you, the two of you not exactly big betters on this big race, are you?
UNIDENTIFIED MALE: That's big betting for us.
UNIDENTIFIED MALE: Bush, and $500.
QUEST: $500?
UNIDENTIFIED MALE: Sure.
QUEST: That's a good bet on evens, isn't it?
UNIDENTIFIED MALE: Yes. He's going to win. UNIDENTIFIED MALE: If I had $100 million, I guarantee I'd bet a million on Kerry.
QUEST: Really?
UNIDENTIFIED MALE: Yes.
QUEST (voice-over): So, how much of this is just talk and would people actually bet if they could? The experts are convinced they would.
ECKSTEIN: If we could bet on the presidency, we'd probably be seeing Super Bowl type money -- hundreds of millions of dollars. People bet on bingo. People bet on lotteries. They'd love to bet on the president of the United States.
QUEST (on camera): Be it Bush or Kerry, with the odds basically evens, you wouldn't make that much money even if you were allowed to bet. And since it's illegal anyway, I guess I'll just have to find some other way to make the bus fare home.
Richard Quest, CNN, Las Vegas.
(END VIDEO TAPE)
NGUYEN: Yes, right. You know he's at the tables right about now.
All right, well, that's what's all new in the next half hour. And we'll tell you what's all new.
American athletes have their eye on the prize and the color of choice, of course, is gold. Phenom Michael Phelps claims victory in record time. We'll tell you all about that. And gymnast Carly Patterson shows off her winning ways. We've got more from Athens at the bottom of the hour.
Plus, coalition forces pound positions held by the Mahdi Army. When will they lay down their arms? We'll play Inside Baseball with a terror expert. That's just ahead.
And listen to this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The problem with this specific text, that it is taught to children who are six years old.
(END VIDEO CLIP)
NGUYEN: Are Saudi teachers in the nation's capital teaching intolerance?
This is DAYBREAK for Friday.
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Aired August 20, 2004 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: More fighting in Najaf, more talking, too. How will the standoff end and when?
It's Friday, August 20, and this is DAYBREAK.
Well, good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Betty Nguyen in for Carol Costello.
Now in the news, heavy fighting in Najaf rages on. U.S. and Iraqi forces are facing off against fighters loyal to cleric Muqtada al-Sadr. The Iraqi government has warned the militants to stop fighting or face a major offensive, but it doesn't appear to have begun. Stay close, we're going live to Baghdad in just a few minutes for the latest from Iraq.
Now to Fallujah. Early morning air strikes by U.S. jets leave at least two Iraqis dead. Witnesses say people on the ground were shooting at U.S. forces with a machine gun before the strikes.
United Airlines reps are heading back to bankruptcy court in Chicago this morning. The airline is warning the court it will likely have to scrap its employee pension fund to get back in the black.
And flooding from typhoon Meggie is dealing a mega blow to Japan and South Korea. The death toll from the storm is now at least 13. Flooding and landslides have left thousands homeless. Meggie is now a tropical storm, which is a little bit of good news there. We definitely don't want to see all the devastation that we saw last week with hurricane Charley.
CHAD MYERS, CNN METEOROLOGIST: Right. And a typhoon and a hurricane are the same thing.
NGUYEN: Totally different, yes.
MYERS: Cyclone, same thing. They're just -- it depends on where they are in the ocean. If you're in the Atlantic Ocean or in the eastern Pacific Ocean, we call them hurricanes. You call them over there -- if you go over toward Japan and where that was, Korea, they're called typhoons. So it's just the exact same rotation, the exact same ocean storm.
(WEATHER REPORT) NGUYEN: All right, now to the campaign trail. President Bush is relaxing for a week at his Texas ranch. But aides say the president is also working on the acceptance speech he'll deliver at the Republican national convention in two weeks.
John Kerry takes his campaign to North Carolina and Florida today. The senator is set to meet with laid off workers and families in Charlotte this morning. Then he'll go to southwest Florida to get a firsthand look at damage from hurricane Charley.
Meanwhile, faced with unrelenting attacks on his war record in Vietnam, Kerry is going on the offense. At issue, television ads from a Republican funded veterans group that accuses Kerry of flat out lying.
That story now from CNN's Dan Lothian.
(BEGIN VIDEO TAPE)
(BEGIN VIDEO CLIP FROM KERRY CAMPAIGN AD) SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The first definition of patriotism is keeping faith with those who wear the uniform.
(END VIDEO CLIP)
DAN LOTHIAN, CNN CORRESPONDENT (voice-over): In an all out effort to defend his war record, Senator John Kerry launched an attack on the group Swift Boat Veterans for Truth, which has been running a television ad in key battleground states and speaking out publicly, questioning his service and medals.
KERRY: This group isn't interested in the truth. They're not telling the truth.
LOTHIAN: Speaking in Boston to some 5,000 members of the International Association of Firefighters, Kerry took the offensive, saying in public what his press releases and campaign have said in response for months.
KERRY: Bring it on.
LOTHIAN: Kerry also went after President Bush for not denouncing the ads.
KERRY: He wants them to do his dirty work.
LOTHIAN: The Bush campaign calls that claim false and insists the president has always considered Kerry's service in Vietnam noble. But last week on LARRY KING LIVE, Bush passed up the opportunity to call on his supporters to back down.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Well, I haven't seen the ad, but what I do condemn is these unregulated soft money expenditures by very wealthy people.
LOTHIAN: Kerry's war record has been questioned throughout his political career. But the controversy has intensified in the presidential campaign. The Kerry campaign is firing back we another 30 second ad.
(BEGIN VIDEO CLIP FROM KERRY CAMPAIGN AD)
UNIDENTIFIED MALE: I expected I'd be shot. When he pulled me out of the river, he risked his life to save mine.
(END VIDEO CLIP)
LOTHIAN: This aggressive response comes as the credibility of the leading veteran behind the critical Kerry ad is being questioned. Larry Thurlow had disputed Kerry's claim of a gun battle that led to a Bronze Star. But CNN has obtained Thurlow's own military record, showing that, in fact, all the boats came under weapons fire in the area that day. Thurlow now says his record reflects an account written up by Kerry and calls it "a lie."
(on camera): The new Kerry counter-ad will run in Ohio, Wisconsin and West Virginia. That means the Kerry campaign is deviating from cost saving plans not to buy any television ads until September, a sign that despite the official line, there is pressure to end this controversy.
Dan Lothian, CNN, Derry, New Hampshire.
(END VIDEO TAPE)
NGUYEN: Now for more campaign coverage, you can log onto cnn.com/politics and check out a special edition of America Votes 2004.
Muqtada al-Sadr is now asking supporters to hand over the keys to the Imam Ali Mosque to the highest Shiite leaders in Iraq. That's according to one of al-Sadr's aides. Such a move would have huge religious significance.
Our John Vause with us now live from Baghdad to explain what all of this means.
Hi there -- John.
JOHN VAUSE, CNN CORRESPONDENT: Hello, Betty.
Let's start with the fighting which has been going on in Najaf. It appears to have eased off in the last few hours since dawn. Still, the sound of sporadic gunfire and explosions.
But the heaviest clashes in Najaf came overnight. U.S. warplanes bombed positions held by the Mahdi militia. AC-130 gunships and helicopter gunships also hit a number of targets east of the Imam Ali Mosque. There's also been intense gun battles between the combined U.S. and Iraqi forces in and around Najaf's huge sprawling cemetery.
The health ministry in Baghdad says seven Iraqis in Najaf have been killed in the last 24 hours. So far, no military movement on the mosque itself, but the interim Iraqi government appears to have increased the offensive to pressure Muqtada al-Sadr. The Iraqi prime minister issuing a final call for him to leave the shrine, dissolve his Mahdi militia and hand over their weapons. Al-Sadr appears to be defiant. Once again, he's leaving the talking to his spokesman, saying there will be no negotiations with the interim Iraqi government, only with a delegation from the newly appointed National Conference.
So we've had no military movement on the mosque itself. But the interim Iraqi government appears to have increased the offensive to pressure Muqtada al-Sadr. The Iraqi
Al-Sadr appears to be defiant. Once again, he's leaving the talking to his spokesmen saying there will be no negotiations with the interim Iraqi government, only with a delegation from the newly appointed National Conference.
And as you mentioned, Betty, as a spokesman for al-Sadr has asked his supporters to hand the control over to senior Shiite religious authorities.
Now, the U.S. is also engaged in serious fighting here in Baghdad in the area known as Sadr City. That's a sprawling slum. It's a strengthened for Muqtada al-Sadr. Tanks backed by helicopter gunships have moved through the neighborhood. This is being described as one of the biggest U.S. offensives there in months.
Now, the death toll in Baghdad in the last 24 hours, 10 killed, 82 wounded. There's also been fighting in Fallujah. U.S. warplanes came under fire from small arms fire as well as anti-aircraft fire. They responded by firing missiles into an industrial part of Fallujah. Doctors there say at least two killed, four wounded.
Finally on to Basra. The main office of the southern oil fields was burned down. Those loyal to al-Sadr are being blamed for that. The oil infrastructure in Iraq has often been a target. This is having a pretty big impact. Oil exports apparently down from two billion barrels a day down to one billion barrels a day -- Betty.
NGUYEN: We're going to be talking about oil a little bit later on in the show.
But right now, John, I want to ask you about Muqtada al-Sadr. He's asked supporters to hand over the keys of the mosque.
Now, is this purely symbolic or does this mean that he and his militiamen may be leaving the mosque some time soon?
VAUSE: Well, it's very difficult to say what this actually does mean in practice and whether he will follow through on this. Al-Sadr has been in control of the mosque since April. If he hands it over to senior Shiite leaders, then that means that the militia inside are men who are just visiting, pilgrims, if you like, making a pilgrimage to this sacred site in all of Islam. It makes it that much more difficult, much more explosive, if, in fact, the U.S. and Iraqi forces lead an offensive on that mosque, because it will no longer be controlled by al-Sadr, who is being seen as a renegade by some. But, rather, it will be controlled by the senior religious figures.
It ups the ante a little, if you like, in the equation here -- Betty.
NGUYEN: Exactly.
And the Iraqi interim prime minister has already issued that final call and we saw the offensive overnight. But are you seeing a deadline being made here, or at least being put forth to al-Sadr?
VAUSE: Yes, there's no deadline coming from Allawi. What we have seen in this week alone, we've heard twice from various ministers within the interim Iraqi government, warning that military operations were just hours away. And then they've only backed down afterwards. What we heard yesterday from Prime Minister Allawi, just basically saying that the time for talking was over, that this was the last call. He refused to be pinned down on any time frame on this. So it's still an open-ended question when this military operation, if, in fact, it does happen, when it will happen -- Betty.
NGUYEN: A very volatile situation there.
CNN's John Vause in Baghdad this morning.
Thank you.
And you can read up on the deteriorating situation in Najaf, plus find out more about just who Muqtada al-Sadr is and who may be funding him. All you have to do is click on our Web site. That address is on the screen. It is cnn.com/world.
The accuser's stepfather is the latest witness in a pretrial hearing for Michael Jackson.
CNN's Miguel Marquez is covering the hearing in Santa Maria, California.
(BEGIN VIDEO TAPE)
MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): "John Doe," the stepfather of Michael Jackson's accuser, takes the stand. Questioned by Jackson's lawyer about what he knew about the relationship between private investigator Brad Miller and Jackson's former lawyer, Mark Geragos.
If a relationship can be established, the defense may be able to get potentially crucial evidence tossed out.
STEVE CORBETT, "SANTA MARIA TIMES": And I don't think that they're succeeding, the defense, in proving that. They're not able to do that as of yet. MARQUEZ: But "John Doe's" questioning did reveal his claim that someone from Neverland Ranch called the accuser's mother in the days after the documentary "Living With Michael Jackson" aired, asking that the boy and his family return to Neverland to make a rebuttal video. Doe said he responded by saying, "What are you offering?" Then Doe said the Neverland employee told him that they would offer security, a college education to the boy and his siblings, and a new home for the family.
Doe then said he told the Neverland employee he knew Michael Jackson was going to make millions off the video and that "his small family was making zero."
CORBETT: There is this insinuation that there is a give and take, you know, we'll give you this in exchange for that.
MARQUEZ: In a setback for the defense, the judge ruled that Santa Barbara County Sheriff Jim Anderson could release a statement and parts of the attorney general's investigation into whether Michael Jackson was mistreated while in custody. Jackson made the claims on the CBS program "60 Minutes," but his defense lawyer said Jackson never filed an official complaint and he was never interviewed for the investigation.
CORBETT: Mesereau stood and made a very strong argument against releasing what he called propaganda by prosecutors.
MARQUEZ (on camera): Jackson's defense also showed video of the search of Neverland Ranch to a judge, trying to prove that the search investigators conducted was broader than the search warrant allowed, hoping to get more evidence tossed out.
Miguel Marquez, CNN, Santa Maria, California.
(END VIDEO TAPE)
NGUYEN: And meanwhile, Michael Jackson has posted a statement on his Web site. He complains that he and his family have been vilified for years. Jackson says, in part: "I personally have suffered through many hurtful lies and references to me as 'Wacko Jacko', as well as the latest untruth about me fathering quadruplets. This is intolerable and must stop."
Now, here's a look at other news across America this morning.
In Los Angeles, a hearing is scheduled today in Robert Blake's murder trial. A former private investigator is expected to testify. Blake is charged with killing his wife, Bonny Lee Bakley, in 2001. Blake's trial is scheduled to start November 1.
Caught on tape in Ohio, six people are charged with beating an alleged peeping Tom. Officials say Mario Russo was spotted outside a 5-year-old girl's bedroom with his pants around his ankles. Police say the girl's aunt admits to sexually assaulting Russo with a tree branch. Russo is in intensive care. In Gilmore, Arkansas, the body of a 7-year-old girl missing since Sunday has been found. That body is of Patricia Ann Miles. It was discovered in a field not far from where her shoes and bicycle were recovered. A family friend is charged with kidnapping and is being held on a million dollars bond.
Well, it's time to load 'em up and move 'em out, or at least try. Trucks full of help for hurricane victims hit a roadblock on the way to Florida.
Also ahead, we'll investigate some of the roots of intolerance. We'll take a closer look at what Saudi children are learning about other religions.
Plus, Americans are covered in gold in Athens. Don't you like the sound of that? We're going there live for the latest.
But first, here's a look at what else is making news this Friday morning.
(COMMERCIAL BREAK)
NGUYEN: After three up sessions, Wall Street starts today on the minus side.
The Dow opens down 42 points.
The Nasdaq is off about 11 1/2.
And the S&P 500 is down about 4 points.
And that's apparently dragging down markets overseas.
Britain's FTSE 100 is down 10 1/2 points.
France's CAC Index is down almost 22 points.
In Japan, the Nikkei closed down about 14 points.
Your news, money, weather and sports.
The time right now is 5:17 Eastern.
And here is what is all new this morning.
There was more intense fighting in the Iraqi city of Najaf overnight. Iraqi officials say seven Iraqis were killed and nearly 40 wounded as U.S. Marines and Iraqi troops battled Muqtada al-Sadr's militia.
Oklahoma City bombing conspirator Terry Nichols has decided not to appeal his 161 state murder convictions. That means Nichols will spend the rest of his life in prison. An appeal could have provided another chance for prosecutors to seek the death penalty.
Now to money. Google scores big on opening day. Stock in the Internet search engine climbed from its $85 initial price to end at just above $100 a share. That's an increase of about 18 percent.
In culture, move over Monopoly, make room for Trump. The Donald releases a new board game encouraging players to cut a deal and make billions of dollars. Yes, it's that easy. It's simply called Trump, The Game.
Now to sports, U.S. gymnast Carlie Patterson wins the gold medal in the women's all around. She becomes the first U.S. woman to win the Olympic all around since Mary Lou Retton back in 1984.
Did you get a chance to watch that -- Chad?
MYERS: You know, I didn't, but I should have. Boy, the medal count is just amazing this year.
NGUYEN: Oh, it's wonderful.
MYERS: They are doing so great there.
And look, look at the stands.
NGUYEN: I know.
MYERS: They're full.
NGUYEN: That's one event where they're full. There's a lot of them where they're not doing so great.
MYERS: I know. I know. Well, we'll boast about them when we get some full but...
NGUYEN: Exactly. Stay positive.
MYERS: Hey, good morning, everybody.
(WEATHER REPORT)
NGUYEN: Well, it has been one week since hurricane Charley went on its rampage through parts of southwest Florida. Since then, state officials say the death toll has climbed to 23. And Charley has caused an estimated $7.4 billion in damage to ensured properties alone. And as of last night, more than 335,000 customers were still without power.
In addition to all of that, much needed supplies have arrived. But some are stuck on trucks or are tied up in red tape.
Tracey Shevertson of our affiliate WFTS reports.
(BEGIN VIDEO TAPE)
UNIDENTIFIED FEMALE: And we got turned away in Punta Gorda.
UNIDENTIFIED MALE: I did.
TRACEY SHEVERTSON, WFTS CORRESPONDENT (voice-over): Seventy-nine semis just at this one location, loaded with supplies and nowhere to go.
UNIDENTIFIED MALE: I have water.
UNIDENTIFIED MALE: I'm going on three days sitting with water. It's probably boiling it's so hot in there.
UNIDENTIFIED MALE: I want to distribute this water to the people. They say that they don't need water.
UNIDENTIFIED FEMALE: We'll give you the ice and then you can get water at that next place right up there.
SHEVERTSON: We found plenty of hurricane victims who would disagree. While some comfort stations may be running low, staging areas like Lakeland Linder Airport are overflowing with trucks. And FEMA says that's just how it works.
UNIDENTIFIED MALE: And you think it's not frustrating to us? We're very frustrated with the process. But we're -- the process has to take place. Ice is a critical situation. We have ice sitting here waiting for the victims.
SHEVERTSON: FEMA is waiting on the General Services Administration to find government approved warehouse space so these trucks can unload. Until then, the clock is ticking and the price of water is going up.
UNIDENTIFIED MALE: We're getting $975 a day to stand here whether we move or not.
(END VIDEO TAPE)
NGUYEN: That was Tracey Shevertson of our Fort Myers affiliate WFTS, reporting.
Well, all bets are off, at least for the 2004 presidential election. Many are hedging their bets as to who they think will come out in front in November. But if you want to gamble on the outcome, well, you'd better think again.
You're watching DAYBREAK for Friday.
(COMMERCIAL BREAK)
NGUYEN: Time now to check our Web clicks this morning, what stories are getting your attention on our Web site.
Well, let's go to cnn.com right now to check them out.
First up, missing Arkansas girl found dead.
Also popular on the Web, a Brazilian tribe has no words for numbers. They can't do math.
And, finally, shoe bomber Richard Reid sues a prison for harsh conditions. Well, it's illegal to bet on the outcome of the upcoming presidential election in the United States, but that isn't stopping people from wondering about the odds, or at least finding a way around the law.
Our Richard Quest makes his way to the nation's betting capital to investigate.
(BEGIN VIDEO TAPE)
RICHARD QUEST, CNN CORRESPONDENT (voice-over): You can bet on the wheel. You can bet on the cards. You can bet on the slots. But in America, you just can't bet on these two. Even in Las Vegas, it's illegal to bet on who will win the U.S. presidential election.
(on camera): Do you think it's silly we can't bet on the presidency here? BENJAMIN ECKSTEIN: I think it's absolutely ludicrous. You look at any place around the world, whatever country you want to go to, and you can bet on almost anything. I think we should be allowed to bet on the presidency. It would be great fun.
QUEST (voice-over): Since he can't have a flutter, Benjamin Eckstein (ph) works out the odds. This means gamblers outside the U.S. can stake a bet. And at the moment, like the polls, the odds are even-stevens.
(on camera): Now, even-stevens is hardly a get rich quick scheme. So here on the strip, let's put it to the test. Would people bet, and how much?
UNIDENTIFIED FEMALE: Oh, it's a 50-50 race, but my hopes are with Kerry, absolutely.
QUEST: Why is that?
UNIDENTIFIED FEMALE: Well, I am hopeful for change.
QUEST: Put your money where your mouth is. How much would you bet?
UNIDENTIFIED FEMALE: Easy $100.
QUEST: Oh, dear. The two of you, the two of you not exactly big betters on this big race, are you?
UNIDENTIFIED MALE: That's big betting for us.
UNIDENTIFIED MALE: Bush, and $500.
QUEST: $500?
UNIDENTIFIED MALE: Sure.
QUEST: That's a good bet on evens, isn't it?
UNIDENTIFIED MALE: Yes. He's going to win. UNIDENTIFIED MALE: If I had $100 million, I guarantee I'd bet a million on Kerry.
QUEST: Really?
UNIDENTIFIED MALE: Yes.
QUEST (voice-over): So, how much of this is just talk and would people actually bet if they could? The experts are convinced they would.
ECKSTEIN: If we could bet on the presidency, we'd probably be seeing Super Bowl type money -- hundreds of millions of dollars. People bet on bingo. People bet on lotteries. They'd love to bet on the president of the United States.
QUEST (on camera): Be it Bush or Kerry, with the odds basically evens, you wouldn't make that much money even if you were allowed to bet. And since it's illegal anyway, I guess I'll just have to find some other way to make the bus fare home.
Richard Quest, CNN, Las Vegas.
(END VIDEO TAPE)
NGUYEN: Yes, right. You know he's at the tables right about now.
All right, well, that's what's all new in the next half hour. And we'll tell you what's all new.
American athletes have their eye on the prize and the color of choice, of course, is gold. Phenom Michael Phelps claims victory in record time. We'll tell you all about that. And gymnast Carly Patterson shows off her winning ways. We've got more from Athens at the bottom of the hour.
Plus, coalition forces pound positions held by the Mahdi Army. When will they lay down their arms? We'll play Inside Baseball with a terror expert. That's just ahead.
And listen to this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The problem with this specific text, that it is taught to children who are six years old.
(END VIDEO CLIP)
NGUYEN: Are Saudi teachers in the nation's capital teaching intolerance?
This is DAYBREAK for Friday.
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