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CNN Live At Daybreak

Two Florida Girls Raising Money for Hurricane Victims by Selling Lemonade; Democratic Rival John Kerry Raising a Storm Over Iraq

Aired September 08, 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.


CAROL COSTELLO, CNN ANCHOR: Russia turns to cold, hard cash in an attempt to flush out two Chechen leaders accused of planning that deadly school hostage crisis.
It is Wednesday, September 8.

This is DAYBREAK.

And good morning to you.

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

Now in the news, Russia has offered a sizable reward for two Chechen rebel leaders. The $10.3 million incentive is for information that helps Russia to neutralize the men they say are responsible for the Beslan school tragedy.

$2 billion worth of disaster relief, that's what Florida has coming. President Bush plans to sign the measure this morning before a trip to the storm-ravaged state.

And in Iraq, explosions lighted the sky over Fallujah. The Iraqis say U.S. warplanes have been pounding the city overnight. A doctor in Fallujah says at least six Iraqis have been killed.

Israeli forces are also in action this morning in parts of the northern Gaza Strip. The army says it's an open-ended mission aimed at stopping militants from firing rockets into southern Israel.

And finally, bringing a piece of the sun back to earth. Later today, helicopters will snatch NASA's returning Genesis spacecraft over Utah. Genesis has been collecting particles that stream from the sun.

Chad's back.

He's in the forecast center -- hi, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

How are you?

COSTELLO: Good.

MYERS: I missed you. COSTELLO: I missed you, too, and I'm glad you made it back safely.

MYERS: I did. I kept my crew safe and all that. We had a lot of wind. We had flying debris. But at that point we said all right, this was fun, then it got scary, now it's dangerous, now we're moving around the side of the building and so we got out of the way. Yes, absolutely. Some of those winds down there were absolutely howling. And if you live in Florida, I don't have to tell you that. But if you live in Florida you can't watch us because you're probably out of power.

(WEATHER REPORT)

COSTELLO: Florida can sure use the disaster relief money it's getting. And it's hoping for more. In the wake of hurricane Frances, Governor Jeb Bush is asking President Bush to declare a dozen more counties disaster areas.

In the meantime, the damage estimates keep piling up. State officials say the insured damage from Frances could hit $2.4 billion. And utility crews are working overtime. About 235,000 customers remain without power here in Georgia. Florida officials say fewer than a million customers there are still in the dark.

An insurance check, it'll be a welcome sight for many in Florida. But the amount they'll have to shell out might be pretty high. Insurers were allowed to boost deductibles on hurricane damage claims after hurricane Andrew in 1992.

Florida's citrus growers will need some insurance. Frances may have damaged or destroyed two thirds of the grapefruit crop.

And the storm also spared misery in Georgia, ripping up trees and causing flooding. It dropped 10 inches of rain in some spots. The remains of Frances still pounding western North Carolina. More than 50 roads were closed because of the flooding.

And you've heard the old saying when life hands you lemons, make lemonade. So some young people in Florida are taking that to heart in the wake of Frances.

Todd Tongen from CNN affiliate WPLG has more for you from Coral Springs.

(BEGIN VIDEO TAPE)

TODD TONGEN, WPLG CORRESPONDENT: How much there, young lady?

SUSIE KELLY: It's $0.50.

TONGEN (voice-over): Susie Kelly and her sister are young entrepreneurs. The two have opened a lemonade stand in their front yard. Actually, it's a Tang stand, but the bright young businesswomen have a great marketing tool.

(on camera): What's the big attraction? That?

S. KELLY: Yes. Everyone's just kind of stopping and taking pictures.

TONGEN: Now, did you guys used to climb that tree?

S. KELLY: No.

UNIDENTIFIED CHILD: No, not much.

S. KELLY: Dad wouldn't let us.

TONGEN (voice-over): This isn't the first time that somebody's taken a picture in front of this tree. The Kelly family calls this the Kelly family tree. They've taken lots of family portraits here. Unfortunately, this is probably the last.

UNIDENTIFIED FEMALE: We had both of our cars parked in the front of the house and I was sure that it had smashed a car. But actually we were very fortunate. It fell over the street. And they came yesterday and moved it over to our property.

TONGEN (on camera): It's been a big attraction.

It looks like the girls have some more business over there. It looks like the Bell South guy is thirsty.

UNIDENTIFIED FEMALE: Oh, good.

TONGEN (voice-over): So far, the two have raised nearly $40. It will probably cost over $1,000 to remove the tree. But instead of keeping the money to help themselves, they wanted to help others.

UNIDENTIFIED CHILD: Well, because these people, like, they might have lost their home. They're like -- they would have had like really bad damage. We're giving the money to them because they might need it more than we need it.

TONGEN (on camera): Yes. Well, that's pretty nice of you.

UNIDENTIFIED CHILD: Yes.

TONGEN: Does that make you feel good?

UNIDENTIFIED CHILD: Yes, it does.

S. KELLY: Yes.

TONGEN (voice-over): It not only feels good, it also tastes good.

UNIDENTIFIED MALE: Fantastic. I'd highly recommend it.

TONGEN (on camera): That quench your thirst?

UNIDENTIFIED MALE: Oh, absolutely. TONGEN: I know you've been working hard.

UNIDENTIFIED MALE: Yes. Yes. I haven't had a day off in a little while, but this definitely will help me get through the day.

TONGEN: And there goes another satisfied customer.

In Coral Springs, Todd Tongen, local 10 News.

(END VIDEO TAPE)

COSTELLO: If you'd like to make donations, call 1-800-HELP-NOW. And to contact the Red Cross Response Center, call 866-GET-INFO. And, by the way, Marty Evans, president of the American Red Cross, will join us by phone from Fort Lauderdale, Florida. That will happen in the next hour of DAYBREAK.

And you can learn more about the economic blow to Florida from Frances and Charley and the cleanup there, plus get a look at Ivan on our Web site. Just click onto cnn.com/weather.

A diversion of sorts today for the president, from the campaign trail to a trail of destruction. He's getting a firsthand look at the storm damage in Florida. President Bush will visit West Palm Beach and a relief center in Fort Pierce. He'll also get briefed on hurricane Ivan, which, as Chad said, is gaining strength in the Caribbean.

Florida is keeping an eye on Ivan, but it's too early to tell if that storm will make it there.

In the meantime, Democratic rival John Kerry is raising a storm over Iraq. Kerry speaks this morning in Cincinnati, where he'll continue to attack the president's handling of the war. Kerry will also stop in Rochester, Minnesota and Des Moines, Iowa.

Earlier, he said President Bush has made a mess in Iraq.

The vice presidential candidates are also trading verbal jabs, this time over terrorism and the risk of another attack in the United States.

CNN's senior political correspondent, Candy Crowley, has the latest for you.

(BEGIN VIDEO TAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): The battle in the battlegrounds turned into an interstate debate between right and wrong and choices to be made. To the vice president goes the day's headline.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: And it's absolutely essential that eight weeks from today on November 2, we make the right choice, because, if we make the wrong choice, then the danger is that we'll get hit again, that we'll be hit in a way that'll be devastating from the standpoint of the United States and then we'll fall back into the pre-9/11 mind-set, if you will, that in fact these terrorist attacks are just criminal acts and that we're not really at war.

CROWLEY: His words upped the ante. But Cheney's office insists, he meant whoever is in office will face a terrorist threat. So the question is, who has the best policies, which is not how they heard it in the Kerry-Edwards' campaign.

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: What he said to the American people was, if you go to the polls in November and elect anyone other than us, and another terrorist attack occurs, it's your fault. This is un-American.

CROWLEY: While the No. 2s traded body blows, the two needled each other over Iraq. Certain they have hit pay dirt, the Bush campaign revisited Kerry's statement that Iraq is the wrong war at the wrong time in the wrong place.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And he woke up yesterday morning with yet another new position.

(LAUGHTER)

BUSH: And this one is not even his own. It is that of his one- time rival Howard Dean. He even used the same words Howard Dean did, back when he supposedly disagreed with him. No matter how many times Senator Kerry flip-flops, we were right to make America safer by removing Saddam Hussein from power.

CROWLEY: Meanwhile, in Greensboro, North Carolina, John Kerry was singing his new refrain, "W. stands for wrong."

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Of all of the wrong choices that President Bush has made, the most catastrophic choice is the mess that he has made in Iraq.

CROWLEY: Still, when the U.S. military death toll in Iraq was announced, Kerry's tone changed dramatically.

KERRY: Today marks a tragic milestone in the war in Iraq. More than 1,000 of America's sons and daughters have now given their lives on behalf of their country, on behalf of freedom in the war on terror.

CROWLEY: It a fine line here, praising the cause, while criticizing the war.

(on camera): Kerry's balancing act continues here Wednesday with another critique of U.S. policy in Iraq from the same spot where George Bush offered his case for going to war in Iraq in October of 2002.

Candy Crowley, CNN, Cincinnati.

(END VIDEO TAPE) COSTELLO: Taking you overseas now, we're just getting word in from Russia. The Russian media is now reporting that Russia is prepared to launch strikes on terrorist bases anywhere in the world. We don't know much more than that. When we get more information on this part of the story, of course, we'll pass it along to you.

We also know this morning that a $10 million reward is offered for information on those two Chechen rebel leaders that Russia says are behind that deadly school hostage stand-off.

Let's head live to Beslan and Matthew Chance with an update -- good morning, Matthew.

MATTHEW CHANCE, CNN CORRESPONDENT: Good morning to you, as well, Carol.

Well, the official days of mourning may be over, but of course the people here in Beslan in southern Russia are still crushed with grief about what's happened to them in this small town in southern Russia. This is the school, School Number 1, where the hostage seize took place. And as you can see, the people here of Beslan are still coming out in considerable numbers, showing their grief publicly, placing floral tributes and paying their last respects to the children and the adults and the teachers who died in this school.

There have been very chilling images broadcast on Russian television, pictures that have emerged out of the siege situation. They seem to have been filmed by the hostage takers themselves to show the Russian hostage negotiators the very high stakes in this school siege. All the children are shown in very cramped conditions, herded inside the gymnasium, which is the building right behind me now.

A grandmother is shown on the tape looking into the camera. She turns away, clearly terrified about making eye contact with her captors.

The people here, the survivors that we've spoken to, have spoken about the inhumanity of the conditions that they were held in. The children, the adults were denied water for three days and the best part of 50 hours. And they were literally dying with thirst, forced at times to drink their own urine the situation was so desperate.

And so people here are extremely angry about the inhumane conditions in which their children died and very angry, as well, with the Russian government for, in their eyes, failing to deal with this hostage crisis effectively -- Carol.

COSTELLO: Matthew, you intimated something I hadn't heard before as to where they found this videotape.

Can you expound on that?

CHANCE: Well, we had first word of the videotape in the first hours after the hostage crisis began. There were rumors that a videotape was being circulated. It seems that the hostage takers filmed this very quickly, soon after the actual siege was sort of in their hands, if you like, and it was thrown out of the window for the police to pick up and for the hostage negotiators to look at so they could show that the children were there, how many people were being held, so that they could show that they'd rigged the whole place up with explosive devices.

And you can see in the video these makeshift explosive devices are strung from the basketball hoops in the gymnasium.

And so I think the message was that, you know, this was a serious siege and the hostage takers wanted to show the Russian authorities that they had to talk seriously with them if these people were going to get out alive. And, of course, they didn't get out alive, which is the real tragedy of this whole situation -- Carol.

COSTELLO: And something that's being talked about here in the United States, apparently there were some Arabic words on that tape. We don't know who they were coming from.

Is there any new information on that this morning, Matthew?

CHANCE: There's not a great deal of information on that. There's not a great deal of public comment on it, either. Of course, earlier on the Russian government was saying that nine or some reports saying 10 of the hostage takers were of Arab descent. One of them was said to be an African nation descent, as well, whether it was North Africa or whatever, it's not clear. But after that point, no real proof has been presented to the public that that is, indeed, the case.

Now, if there is Arabic words on this tape, and I personally haven't heard any Arabic words on that tape, then that would be, perhaps, further evidence of what the Russian government says is an example of how international terrorism is affecting their country. But certainly for many people here in Beslan, this is being seen more in the context of a long-running regional conflict, of course, that has been going on with the people in the breakaway republic of Chechnya. That's certainly where the majority of these people are putting the blame.

COSTELLO: Matthew Chance live from Beslan in Russia this morning.

Thank you.

Settle in. We're just getting started here on DAYBREAK.

Here's what's coming up.

At 18 minutes past the hour, the prosecution brings out the pliers in the Scott Peterson murder trial. We'll tell you what they hope to prove with this possible key piece of evidence.

At 46 minutes after, a high flying mission to capture the sun. NASA has a one time only chance to grab these solar particles and it's happening today.

At 54 minutes past, it's getting down and dirty on reality TV. And this time the fights are behind-the-scenes.

But first, here's a look at what else is making news this Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Stocks are up.

Let's get a check of the mid-week markets.

The Dow begins the day up 82 1/2 points.

The Nasdaq up 14.

And the S&P up 7 1/2 points.

The international markets are moving in the opposite direction.

Tokyo's Nikkei closed down more than 19 points just a short time ago.

In the meantime, the London market is trading down nearly 3 points.

And the Paris CAC is down 5 points.

Your news, money, weather and sports.

It's 5:18 Eastern.

Here's what's all new this morning.

Russia has offered a sizable reward for two Chechen rebel leaders. The $10.3 million incentive is for information on two suspected rebel leader Russia believes are responsible for the Beslan school hostage incident.

Expect a sentence of just over a year in prison for former investment banker Frank Quattrone. Quattrone is being sentenced today for his role in blocking investigations into the dot-com stock boom of the '90s.

In money news, oil prices may rise even though there is a surplus. The head of OPEC says there's a surplus of 1.5 million barrels, but OPEC ministers may still vote to raise prices and production when they meet next week.

In culture, time for some fancy rags to hit the runways of New York City. Fashion Week begins today with dozens of designers, multitudes of very skinny models and the usual outrageous outfits. I think that was Victoria Secret. I don't think that fits in with Fashion Week. I don't know.

In sports, Jennifer Capriati is in the semifinals at the U.S. Open after a sometimes contentious win over Serena Williams. Williams told reporters she was robbed by a bad call after her three set loss to Capriati.

Ooh, I wish I could have seen that match -- Chad.

MYERS: Yes, I didn't have time to watch that either, Carol, unfortunately. There was no power.

Good morning, everybody.

COSTELLO: Oh, you were without power, as well?

MYERS: I was without power...

COSTELLO: I didn't have power for five hours yesterday.

MYERS: Without power and without water where I was.

Hey, good morning.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Why did Scott Peterson sell his car, his wife's car? And why was he planning to sell their house and all the furniture shortly after Laci Peterson disappeared? Those are some of the questions being asked by prosecutors.

CNN's Ted Rowlands has more on the questions and the answers from Redwood City, California.

(BEGIN VIDEO TAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): A Department of Justice criminalist testified that a pair of pliers found in Scott Peterson's boat had no evidence of recent use. The pliers were significant in the case because a hair the prosecution believes came from Laci Peterson was found in the pliers.

They hoped to prove Laci's body was transported in the boat. The criminalist testified that the pliers were rusted shut when she analyzed them two months after they were recovered. Prosecutors blame the rust on saltwater exposure.

Other witnesses included a car dealer who testified Peterson traded in his wife's Land Rover to buy a pickup a month after she disappeared. The defense claims he sold his wife's car because he needed a truck for work and the police took his.

Terry Western (ph), a long time family friend, broke down on the stand while talking about the last time she saw Laci Peterson, the night this photo was taken at a Christmas party. Western testified that Laci told her Scott had been called away on business at the last minute and could not make the party.

In reality, Peterson was with Amber Frey at another party in Fresno. Western, who was a real estate agent, also testified that Peterson told her he wanted to sell his house, something she told him was inappropriate. The jury has already heard audiotape of Peterson talking about selling his house, furnished to another friend.

(END VIDEO TAPE)

COSTELLO: A few seconds of a so-called malfunction are going to cost big. We'll tell you which records Janet Jackson are breaking -- and this one's not going platinum. That in more hot stories making news on the Web straight ahead.

Also, a tiny woman faces down some big competition. You won't believe how much food one petite woman can pack away.

And you are watching DAYBREAK for Wednesday, September 8.

(COMMERCIAL BREAK)

COSTELLO: It's time to check our Web clicks this morning.

We're always interested in what you're interested in on cnn.com.

So the number one clicked on story is the $10 million reward for Chechen rebels. Of course, we've been talking about that a lot this morning. Russia now offering $10 million for information for whoever was responsible for that terrible school hostage situation in Beslan, near the Chechen border. We're going to have much more on this for you in the next half hour of DAYBREAK.

The number two clicked on story on our Web, CBS stations fined for Super Bowl exposure. And do I need to tell you what the exposure was? Yes, Janet Jackson. The weird thing about this story is the FTC commissioners have voted to fine only 20 television stations that CBS owns, but let the remaining 200 plus CBS affiliates escape penalty. So only the stations owned by CBS, which is, of course, owned by Viacom, which, of course, owns MTV, that put on the show. Only they will be fined, $27,500 apiece.

The third most clicked on story on our Web site, Cheney and Kerry. And the headline is actually Cheney: Kerry win risks terror attack. And this is the vice president making this statement. Dick Cheney said, "If we make the wrong choice, then the danger is that we'll get hit again, that we'll be hit in a way that will be devastating from the standpoint of the United States."

To which John Edwards responded, "What Cheney said to the American public was that if you go to the polls in November and elect anyone other than us, and another terrorist attack occurs, it's your fault."

So the war of words is on between the V.P., the vice presidential candidates.

Time for our DAYBREAK "Eye-Openers" right now.

Residents of Frederick, Maryland have been running for cover ever since a flock of birds began circling overhead. About 1,000 of the black birds have been leaving their calling cards on everything. The city has used fireworks to try and scare away the birds, but they just keep on coming back.

And the black widow has won the first leg of the Crystal Eating Championships. Sonya Thomas, age 42, of the little square hamburgers in the first of 11 competitions. If you've never heard of crystals, they're similar to the sliders you get at White Castle. Anyway, Thomas, AKA the black widow, also holds records for eating chicken nuggets and oysters.

Here's what's all new in the next half hour of DAYBREAK.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: One's original and one's stolen.

UNIDENTIFIED MALE: One's a contender, one's the pretender.

(END VIDEO CLIP)

COSTELLO: TV executives are duking it out in Hollywood. But let's get real about reality television. Is any of it original? We'll get a ringside seat for an all out battle in the next 30 minutes.

(COMMERCIAL BREAK)

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9


Aired September 8, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Russia turns to cold, hard cash in an attempt to flush out two Chechen leaders accused of planning that deadly school hostage crisis.
It is Wednesday, September 8.

This is DAYBREAK.

And good morning to you.

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

Now in the news, Russia has offered a sizable reward for two Chechen rebel leaders. The $10.3 million incentive is for information that helps Russia to neutralize the men they say are responsible for the Beslan school tragedy.

$2 billion worth of disaster relief, that's what Florida has coming. President Bush plans to sign the measure this morning before a trip to the storm-ravaged state.

And in Iraq, explosions lighted the sky over Fallujah. The Iraqis say U.S. warplanes have been pounding the city overnight. A doctor in Fallujah says at least six Iraqis have been killed.

Israeli forces are also in action this morning in parts of the northern Gaza Strip. The army says it's an open-ended mission aimed at stopping militants from firing rockets into southern Israel.

And finally, bringing a piece of the sun back to earth. Later today, helicopters will snatch NASA's returning Genesis spacecraft over Utah. Genesis has been collecting particles that stream from the sun.

Chad's back.

He's in the forecast center -- hi, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

How are you?

COSTELLO: Good.

MYERS: I missed you. COSTELLO: I missed you, too, and I'm glad you made it back safely.

MYERS: I did. I kept my crew safe and all that. We had a lot of wind. We had flying debris. But at that point we said all right, this was fun, then it got scary, now it's dangerous, now we're moving around the side of the building and so we got out of the way. Yes, absolutely. Some of those winds down there were absolutely howling. And if you live in Florida, I don't have to tell you that. But if you live in Florida you can't watch us because you're probably out of power.

(WEATHER REPORT)

COSTELLO: Florida can sure use the disaster relief money it's getting. And it's hoping for more. In the wake of hurricane Frances, Governor Jeb Bush is asking President Bush to declare a dozen more counties disaster areas.

In the meantime, the damage estimates keep piling up. State officials say the insured damage from Frances could hit $2.4 billion. And utility crews are working overtime. About 235,000 customers remain without power here in Georgia. Florida officials say fewer than a million customers there are still in the dark.

An insurance check, it'll be a welcome sight for many in Florida. But the amount they'll have to shell out might be pretty high. Insurers were allowed to boost deductibles on hurricane damage claims after hurricane Andrew in 1992.

Florida's citrus growers will need some insurance. Frances may have damaged or destroyed two thirds of the grapefruit crop.

And the storm also spared misery in Georgia, ripping up trees and causing flooding. It dropped 10 inches of rain in some spots. The remains of Frances still pounding western North Carolina. More than 50 roads were closed because of the flooding.

And you've heard the old saying when life hands you lemons, make lemonade. So some young people in Florida are taking that to heart in the wake of Frances.

Todd Tongen from CNN affiliate WPLG has more for you from Coral Springs.

(BEGIN VIDEO TAPE)

TODD TONGEN, WPLG CORRESPONDENT: How much there, young lady?

SUSIE KELLY: It's $0.50.

TONGEN (voice-over): Susie Kelly and her sister are young entrepreneurs. The two have opened a lemonade stand in their front yard. Actually, it's a Tang stand, but the bright young businesswomen have a great marketing tool.

(on camera): What's the big attraction? That?

S. KELLY: Yes. Everyone's just kind of stopping and taking pictures.

TONGEN: Now, did you guys used to climb that tree?

S. KELLY: No.

UNIDENTIFIED CHILD: No, not much.

S. KELLY: Dad wouldn't let us.

TONGEN (voice-over): This isn't the first time that somebody's taken a picture in front of this tree. The Kelly family calls this the Kelly family tree. They've taken lots of family portraits here. Unfortunately, this is probably the last.

UNIDENTIFIED FEMALE: We had both of our cars parked in the front of the house and I was sure that it had smashed a car. But actually we were very fortunate. It fell over the street. And they came yesterday and moved it over to our property.

TONGEN (on camera): It's been a big attraction.

It looks like the girls have some more business over there. It looks like the Bell South guy is thirsty.

UNIDENTIFIED FEMALE: Oh, good.

TONGEN (voice-over): So far, the two have raised nearly $40. It will probably cost over $1,000 to remove the tree. But instead of keeping the money to help themselves, they wanted to help others.

UNIDENTIFIED CHILD: Well, because these people, like, they might have lost their home. They're like -- they would have had like really bad damage. We're giving the money to them because they might need it more than we need it.

TONGEN (on camera): Yes. Well, that's pretty nice of you.

UNIDENTIFIED CHILD: Yes.

TONGEN: Does that make you feel good?

UNIDENTIFIED CHILD: Yes, it does.

S. KELLY: Yes.

TONGEN (voice-over): It not only feels good, it also tastes good.

UNIDENTIFIED MALE: Fantastic. I'd highly recommend it.

TONGEN (on camera): That quench your thirst?

UNIDENTIFIED MALE: Oh, absolutely. TONGEN: I know you've been working hard.

UNIDENTIFIED MALE: Yes. Yes. I haven't had a day off in a little while, but this definitely will help me get through the day.

TONGEN: And there goes another satisfied customer.

In Coral Springs, Todd Tongen, local 10 News.

(END VIDEO TAPE)

COSTELLO: If you'd like to make donations, call 1-800-HELP-NOW. And to contact the Red Cross Response Center, call 866-GET-INFO. And, by the way, Marty Evans, president of the American Red Cross, will join us by phone from Fort Lauderdale, Florida. That will happen in the next hour of DAYBREAK.

And you can learn more about the economic blow to Florida from Frances and Charley and the cleanup there, plus get a look at Ivan on our Web site. Just click onto cnn.com/weather.

A diversion of sorts today for the president, from the campaign trail to a trail of destruction. He's getting a firsthand look at the storm damage in Florida. President Bush will visit West Palm Beach and a relief center in Fort Pierce. He'll also get briefed on hurricane Ivan, which, as Chad said, is gaining strength in the Caribbean.

Florida is keeping an eye on Ivan, but it's too early to tell if that storm will make it there.

In the meantime, Democratic rival John Kerry is raising a storm over Iraq. Kerry speaks this morning in Cincinnati, where he'll continue to attack the president's handling of the war. Kerry will also stop in Rochester, Minnesota and Des Moines, Iowa.

Earlier, he said President Bush has made a mess in Iraq.

The vice presidential candidates are also trading verbal jabs, this time over terrorism and the risk of another attack in the United States.

CNN's senior political correspondent, Candy Crowley, has the latest for you.

(BEGIN VIDEO TAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): The battle in the battlegrounds turned into an interstate debate between right and wrong and choices to be made. To the vice president goes the day's headline.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: And it's absolutely essential that eight weeks from today on November 2, we make the right choice, because, if we make the wrong choice, then the danger is that we'll get hit again, that we'll be hit in a way that'll be devastating from the standpoint of the United States and then we'll fall back into the pre-9/11 mind-set, if you will, that in fact these terrorist attacks are just criminal acts and that we're not really at war.

CROWLEY: His words upped the ante. But Cheney's office insists, he meant whoever is in office will face a terrorist threat. So the question is, who has the best policies, which is not how they heard it in the Kerry-Edwards' campaign.

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: What he said to the American people was, if you go to the polls in November and elect anyone other than us, and another terrorist attack occurs, it's your fault. This is un-American.

CROWLEY: While the No. 2s traded body blows, the two needled each other over Iraq. Certain they have hit pay dirt, the Bush campaign revisited Kerry's statement that Iraq is the wrong war at the wrong time in the wrong place.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And he woke up yesterday morning with yet another new position.

(LAUGHTER)

BUSH: And this one is not even his own. It is that of his one- time rival Howard Dean. He even used the same words Howard Dean did, back when he supposedly disagreed with him. No matter how many times Senator Kerry flip-flops, we were right to make America safer by removing Saddam Hussein from power.

CROWLEY: Meanwhile, in Greensboro, North Carolina, John Kerry was singing his new refrain, "W. stands for wrong."

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Of all of the wrong choices that President Bush has made, the most catastrophic choice is the mess that he has made in Iraq.

CROWLEY: Still, when the U.S. military death toll in Iraq was announced, Kerry's tone changed dramatically.

KERRY: Today marks a tragic milestone in the war in Iraq. More than 1,000 of America's sons and daughters have now given their lives on behalf of their country, on behalf of freedom in the war on terror.

CROWLEY: It a fine line here, praising the cause, while criticizing the war.

(on camera): Kerry's balancing act continues here Wednesday with another critique of U.S. policy in Iraq from the same spot where George Bush offered his case for going to war in Iraq in October of 2002.

Candy Crowley, CNN, Cincinnati.

(END VIDEO TAPE) COSTELLO: Taking you overseas now, we're just getting word in from Russia. The Russian media is now reporting that Russia is prepared to launch strikes on terrorist bases anywhere in the world. We don't know much more than that. When we get more information on this part of the story, of course, we'll pass it along to you.

We also know this morning that a $10 million reward is offered for information on those two Chechen rebel leaders that Russia says are behind that deadly school hostage stand-off.

Let's head live to Beslan and Matthew Chance with an update -- good morning, Matthew.

MATTHEW CHANCE, CNN CORRESPONDENT: Good morning to you, as well, Carol.

Well, the official days of mourning may be over, but of course the people here in Beslan in southern Russia are still crushed with grief about what's happened to them in this small town in southern Russia. This is the school, School Number 1, where the hostage seize took place. And as you can see, the people here of Beslan are still coming out in considerable numbers, showing their grief publicly, placing floral tributes and paying their last respects to the children and the adults and the teachers who died in this school.

There have been very chilling images broadcast on Russian television, pictures that have emerged out of the siege situation. They seem to have been filmed by the hostage takers themselves to show the Russian hostage negotiators the very high stakes in this school siege. All the children are shown in very cramped conditions, herded inside the gymnasium, which is the building right behind me now.

A grandmother is shown on the tape looking into the camera. She turns away, clearly terrified about making eye contact with her captors.

The people here, the survivors that we've spoken to, have spoken about the inhumanity of the conditions that they were held in. The children, the adults were denied water for three days and the best part of 50 hours. And they were literally dying with thirst, forced at times to drink their own urine the situation was so desperate.

And so people here are extremely angry about the inhumane conditions in which their children died and very angry, as well, with the Russian government for, in their eyes, failing to deal with this hostage crisis effectively -- Carol.

COSTELLO: Matthew, you intimated something I hadn't heard before as to where they found this videotape.

Can you expound on that?

CHANCE: Well, we had first word of the videotape in the first hours after the hostage crisis began. There were rumors that a videotape was being circulated. It seems that the hostage takers filmed this very quickly, soon after the actual siege was sort of in their hands, if you like, and it was thrown out of the window for the police to pick up and for the hostage negotiators to look at so they could show that the children were there, how many people were being held, so that they could show that they'd rigged the whole place up with explosive devices.

And you can see in the video these makeshift explosive devices are strung from the basketball hoops in the gymnasium.

And so I think the message was that, you know, this was a serious siege and the hostage takers wanted to show the Russian authorities that they had to talk seriously with them if these people were going to get out alive. And, of course, they didn't get out alive, which is the real tragedy of this whole situation -- Carol.

COSTELLO: And something that's being talked about here in the United States, apparently there were some Arabic words on that tape. We don't know who they were coming from.

Is there any new information on that this morning, Matthew?

CHANCE: There's not a great deal of information on that. There's not a great deal of public comment on it, either. Of course, earlier on the Russian government was saying that nine or some reports saying 10 of the hostage takers were of Arab descent. One of them was said to be an African nation descent, as well, whether it was North Africa or whatever, it's not clear. But after that point, no real proof has been presented to the public that that is, indeed, the case.

Now, if there is Arabic words on this tape, and I personally haven't heard any Arabic words on that tape, then that would be, perhaps, further evidence of what the Russian government says is an example of how international terrorism is affecting their country. But certainly for many people here in Beslan, this is being seen more in the context of a long-running regional conflict, of course, that has been going on with the people in the breakaway republic of Chechnya. That's certainly where the majority of these people are putting the blame.

COSTELLO: Matthew Chance live from Beslan in Russia this morning.

Thank you.

Settle in. We're just getting started here on DAYBREAK.

Here's what's coming up.

At 18 minutes past the hour, the prosecution brings out the pliers in the Scott Peterson murder trial. We'll tell you what they hope to prove with this possible key piece of evidence.

At 46 minutes after, a high flying mission to capture the sun. NASA has a one time only chance to grab these solar particles and it's happening today.

At 54 minutes past, it's getting down and dirty on reality TV. And this time the fights are behind-the-scenes.

But first, here's a look at what else is making news this Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Stocks are up.

Let's get a check of the mid-week markets.

The Dow begins the day up 82 1/2 points.

The Nasdaq up 14.

And the S&P up 7 1/2 points.

The international markets are moving in the opposite direction.

Tokyo's Nikkei closed down more than 19 points just a short time ago.

In the meantime, the London market is trading down nearly 3 points.

And the Paris CAC is down 5 points.

Your news, money, weather and sports.

It's 5:18 Eastern.

Here's what's all new this morning.

Russia has offered a sizable reward for two Chechen rebel leaders. The $10.3 million incentive is for information on two suspected rebel leader Russia believes are responsible for the Beslan school hostage incident.

Expect a sentence of just over a year in prison for former investment banker Frank Quattrone. Quattrone is being sentenced today for his role in blocking investigations into the dot-com stock boom of the '90s.

In money news, oil prices may rise even though there is a surplus. The head of OPEC says there's a surplus of 1.5 million barrels, but OPEC ministers may still vote to raise prices and production when they meet next week.

In culture, time for some fancy rags to hit the runways of New York City. Fashion Week begins today with dozens of designers, multitudes of very skinny models and the usual outrageous outfits. I think that was Victoria Secret. I don't think that fits in with Fashion Week. I don't know.

In sports, Jennifer Capriati is in the semifinals at the U.S. Open after a sometimes contentious win over Serena Williams. Williams told reporters she was robbed by a bad call after her three set loss to Capriati.

Ooh, I wish I could have seen that match -- Chad.

MYERS: Yes, I didn't have time to watch that either, Carol, unfortunately. There was no power.

Good morning, everybody.

COSTELLO: Oh, you were without power, as well?

MYERS: I was without power...

COSTELLO: I didn't have power for five hours yesterday.

MYERS: Without power and without water where I was.

Hey, good morning.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Why did Scott Peterson sell his car, his wife's car? And why was he planning to sell their house and all the furniture shortly after Laci Peterson disappeared? Those are some of the questions being asked by prosecutors.

CNN's Ted Rowlands has more on the questions and the answers from Redwood City, California.

(BEGIN VIDEO TAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): A Department of Justice criminalist testified that a pair of pliers found in Scott Peterson's boat had no evidence of recent use. The pliers were significant in the case because a hair the prosecution believes came from Laci Peterson was found in the pliers.

They hoped to prove Laci's body was transported in the boat. The criminalist testified that the pliers were rusted shut when she analyzed them two months after they were recovered. Prosecutors blame the rust on saltwater exposure.

Other witnesses included a car dealer who testified Peterson traded in his wife's Land Rover to buy a pickup a month after she disappeared. The defense claims he sold his wife's car because he needed a truck for work and the police took his.

Terry Western (ph), a long time family friend, broke down on the stand while talking about the last time she saw Laci Peterson, the night this photo was taken at a Christmas party. Western testified that Laci told her Scott had been called away on business at the last minute and could not make the party.

In reality, Peterson was with Amber Frey at another party in Fresno. Western, who was a real estate agent, also testified that Peterson told her he wanted to sell his house, something she told him was inappropriate. The jury has already heard audiotape of Peterson talking about selling his house, furnished to another friend.

(END VIDEO TAPE)

COSTELLO: A few seconds of a so-called malfunction are going to cost big. We'll tell you which records Janet Jackson are breaking -- and this one's not going platinum. That in more hot stories making news on the Web straight ahead.

Also, a tiny woman faces down some big competition. You won't believe how much food one petite woman can pack away.

And you are watching DAYBREAK for Wednesday, September 8.

(COMMERCIAL BREAK)

COSTELLO: It's time to check our Web clicks this morning.

We're always interested in what you're interested in on cnn.com.

So the number one clicked on story is the $10 million reward for Chechen rebels. Of course, we've been talking about that a lot this morning. Russia now offering $10 million for information for whoever was responsible for that terrible school hostage situation in Beslan, near the Chechen border. We're going to have much more on this for you in the next half hour of DAYBREAK.

The number two clicked on story on our Web, CBS stations fined for Super Bowl exposure. And do I need to tell you what the exposure was? Yes, Janet Jackson. The weird thing about this story is the FTC commissioners have voted to fine only 20 television stations that CBS owns, but let the remaining 200 plus CBS affiliates escape penalty. So only the stations owned by CBS, which is, of course, owned by Viacom, which, of course, owns MTV, that put on the show. Only they will be fined, $27,500 apiece.

The third most clicked on story on our Web site, Cheney and Kerry. And the headline is actually Cheney: Kerry win risks terror attack. And this is the vice president making this statement. Dick Cheney said, "If we make the wrong choice, then the danger is that we'll get hit again, that we'll be hit in a way that will be devastating from the standpoint of the United States."

To which John Edwards responded, "What Cheney said to the American public was that if you go to the polls in November and elect anyone other than us, and another terrorist attack occurs, it's your fault."

So the war of words is on between the V.P., the vice presidential candidates.

Time for our DAYBREAK "Eye-Openers" right now.

Residents of Frederick, Maryland have been running for cover ever since a flock of birds began circling overhead. About 1,000 of the black birds have been leaving their calling cards on everything. The city has used fireworks to try and scare away the birds, but they just keep on coming back.

And the black widow has won the first leg of the Crystal Eating Championships. Sonya Thomas, age 42, of the little square hamburgers in the first of 11 competitions. If you've never heard of crystals, they're similar to the sliders you get at White Castle. Anyway, Thomas, AKA the black widow, also holds records for eating chicken nuggets and oysters.

Here's what's all new in the next half hour of DAYBREAK.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: One's original and one's stolen.

UNIDENTIFIED MALE: One's a contender, one's the pretender.

(END VIDEO CLIP)

COSTELLO: TV executives are duking it out in Hollywood. But let's get real about reality television. Is any of it original? We'll get a ringside seat for an all out battle in the next 30 minutes.

(COMMERCIAL BREAK)

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

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