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CNN Live At Daybreak

U.S. Strikes Terrorist Site in Fallujah; Hot Political Topics; 'Daybreak Scorecard'

Aired September 13, 2004 - 06:30   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.


CAROL COSTELLO, CNN ANCHOR: After one of the bloodiest weekends in months, there is new violence under way in Iraq this morning.
It is Monday, September 13. This is DAYBREAK.

And good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello.

Now in the news, U.S. warplanes and artillery blasted the insurgent strongholds of Fallujah this morning. Hospital officials say at least 10 were killed. The action follows a bloody weekend in Iraq. At least 78 Iraqis were killed in the 24 hours ending at 1:00 this morning Eastern Time.

Russian President Vladimir Putin announced several steps today aimed at fighting terrorists. Among them: strengthening the Kremlin's control over the nation's political structure. He's also ordered security services to better cooperate with other nations in battling terrorists.

The federal ban on the sale of military-style assault weapons expires at midnight tonight. And Senate Republican leader Bill Frist says that is the will of the American people. The ban was enacted 10 years ago after three multiple killings in California.

Cubans are preparing as best they can for Hurricane Ivan. The category 5 storm has been wrecking and flooding the Cayman Islands. Ivan is expected to hit the western tip of Cuba sometime tonight.

(WEATHER BREAK)

COSTELLO: A so-called precision strike this morning by U.S. warplanes on a suspected meeting site for terrorists in Fallujah. A hospital director there says at least 10 people were killed in that airstrike.

And in ground battles in the city, the deaths this morning follow a violent weekend in Iraq as CNN's Diana Muriel reports live from Baghdad.

Good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol.

Yes, more explosions and more heavy fighting in Fallujah, this trouble spot for American troops to the west of Baghdad. We've had confirmation from military sources that F-16s were used in a precision strike. They fired two 500-pound satellite-guided bombs on a location which, they say, was a terrorist meeting site used by associates and operatives of Abu Musab Al Zarqawi, one of the most wanted on the al Qaeda list of most-wanted suspects.

Now, they say that when the strike happened at just after 6:00 local time that the only people in that building were these operatives. But we have conflicted reports from our sources in the city. They say that there were four locations that were hit by the Americans in these airstrikes.

The doctor at the Fallujah hospital, Dr. Rafe Al-Aysawi, told us that 10 people have been killed and 26 have been wounded. And he also said that the Americans had fired on an ambulance that was carrying wounded to the hospital. We haven't had confirmation yet from the American military on that information.

We've also had conflicting reports with regards to an incident that happened here in Baghdad on Sunday. An American patrol got into difficulty in an area known as Little Fallujah, Haifa Street, just on the other side of the river to where I'm speaking to you now.

A Bradley Fighting Vehicle was set ablaze by a roadside bomb, and the soldiers inside it were medivaced. While they were being taken out of the vehicle, they came under attack from insurgents firing Molotov cocktails and grenades as well.

Now, the confliction occurs when the U.S. military decided to send a helicopter gunship to that location and to destroy that Bradley, to stop the looters, they say, from stripping it of its ammunition and other supplies that were on board.

But eyewitnesses have told CNN that a large group of civilians had by that time gathered around the Bradley. They were throwing stones at it. They were shouting "Allah Akbar, God is great," celebrating the fact that a Bradley had been killed. But they were civilians. They were not looters. They were not insurgents.

And the airstrike that occurred then seems to have been responsible for the majority of the deaths and those wounded in that incident; 22 killed and 61 wounded, according to the Ministry of Health here in Iraq - Carol.

COSTELLO: And also, Diana, there's this graphic video being shown on Arab television of an Arab TV reporter being killed in that same incident. Tell us more about that.

MURIEL: That's right, Carol. Thirty-two-year-old Palestinian journalist Mazen al-Tumaizi, he works for various Arabian networks, including Al-Arabiya, the Dubai-based network. He was standing at the scene conducing what we call in TV parlance "a piece to camera." He was reporting on camera at that location when this incident happened, this airstrike happened.

Now, the cameraman who was taking that film, a Reuters cameraman, was also injured in the blast, and indeed there was another press photographer who was injured whilst he was reporting that.

This is what makes us suspicious here at CNN Baghdad. Why was it that a group of journalists were out there reporting live from that location or reporting from that location when the airstrike happened? How does that tally with what the American military are telling us about the fact that there were looters and insurgents who were firing more grenades at American forces in that area?

And we're trying to get clarification from the military as to exactly what those pilots saw.

We do know from them that the pilots came around a second time, and they decided not to fire that second time because they could not positively identify who was on the ground. Some confusion here, but it certainly seems from the death toll and from the numbers of wounded that this was one of the most severe incidents that we've seen here in Baghdad -- Carol.

COSTELLO: Diana Muriel reporting live from Baghdad this morning.

Some political fireworks over comments by Secretary of State Colin Powell. Senator John Kerry says Powell is telling the truth when it comes to an alleged link between Iraq and 9/11, but no one else in the administration is. Kerry leveled the charge after Powell said this:

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: We know that there had been connections and there had been exchanges between al Qaeda and the Saddam Hussein regime, and those have been pursued and looked at. But I have seen nothing that makes a direct connection between Saddam Hussein, that awful regime, and what happened on 9/11.

(END VIDEO CLIP)

COSTELLO: In a statement, Senator Kerry says: "Secretary Powell has told the truth. It's wrong for others in this administration to continually mislead the American people about a link that does not exist. Unfortunately, in its desperate attempts to reinvent a rationale for the Iraq war, this White House has repeatedly chosen to mislead the American people."

And that is our hot button political issue this morning. Live from Washington, Vaughn Ververs is from the "National Journal's" "The Hotline." He joins us now.

Good morning, Vaughn.

VAUGHN VERVERS, EDITOR, "THE HOTLINE": Good morning, Carol.

COSTELLO: All right, let's play politics. John Kerry is making hay of Colin Powell's comments. But the fact is most Americans still believe there is a link between Iraq and 9/11.

VERVERS: That's right. COSTELLO: So, is it a deal?

VERVERS: That's right. Well, we've seen recent polling that shows up to 43 percent of the American people believe that there was a direct link between Saddam and 9/11.

This is part of the delicate dance that we've seen all throughout this election season with the administration continually trying to make Iraq part of the war on terror in the overall general sense. And in doing that, they've really gone to great lengths to try to establish connections between al Qaeda and the Iraqi regime in some way or fashion. And that has led the Democrats to continually charge that they are misleading people into believing that there was a direct link there.

So far, it seems to have paid off for the administration. They have been able to...

COSTELLO: So, why is Colin Powell coming out to say this, while Vice President Dick Cheney said last week -- well, he inferred it. He didn't explicitly say there was a link between Iraq and al Qaeda. But why is Secretary of State Colin Powell coming out and explicitly saying it?

VERVERS: Well, that's not anything different really what Colin Powell said than what the president has said in the past. But you're right. Again, this is part of the delicate dance that Dick Cheney is trying to fuzz the issue just a little bit to bring it all together in a general sense.

But the administration has said before that they don't believe that Saddam Hussein had any direct involvement in 9/11; only that they believe that there were peripheral contacts, that there was a link between them and terrorists, and that that was part of the rationale for war.

COSTELLO: All right, let's move on and talk about the Kitty Kelley book, because it's coming out today. We have an excerpt now. In the book -- this is what Kitty Kelley alleges. She says the president and Marvin did coke at Camp David when their father was president; and not just once either. This was a family of alcoholism, drug addiction and even schizophrenia.

It's harsh.

VERVERS: Well, we really saw the White House go on the offensive against this book early last week when some of these allegations began to leak out in the media preemptively. We saw the White House, you know, calling it trash, actually putting pressure on some network stations not to interview Kitty Kelley for this book. They are very upset that shows like the "Today Show" on NBC and other shows on all different kinds of networks are taking this seriously.

And they went on the offensive, so they're clearly worried about it to some extent. They did get a break last week when Sharon Bush, the ex-wife of George Bush's brother, Neil Bush, came out and said that she was not the source for those allegations despite the fact that apparently she's named as a source in the book.

So, they did get a little break there by getting some help from an estranged family member denying to be the source. But they're clearly a little worried about this.

COSTELLO: Vaughn Ververs is from the "National Journal's" "The Hotline," on the phone with us this morning. Thank you, Vaughn.

Deja vu for U.S. Airways, and not in a good way. Back to bankruptcy court. What's the reason behind this decision? It's our business buzz at 6:44 Eastern.

Plus, who won, who lost and who's off to a healthy start this season? Check out the DAYBREAK "Scorecard" with us at 50 minutes past.

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

(COMMERCIAL BREAK)

COSTELLO: U.S. markets will open up on an up-note this morning. The Dow is heading into the week up nearly 24 points. The Nasdaq rose 25 points almost. And the S&P 500 ended the week up just about 5 and a half points.

It's time for a little more business buzz. It is the second stop in bankruptcy protection for one trouble airline. And if you're one of the frequent fliers, what does that mean for you?

Carrie Lee has the answers, live from the Nasdaq Marketsite. Of course, we're talking about U.S. Airways this morning.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: That's right, Carol. U.S. Airways filing for chapter 11 bankruptcy protection now for the second time in 25 months. U.S. Airways plans to restructure into a low-cost carrier. It seems like the only way to go lately.

Now, if you're a U.S. Air ticket holder or a frequent flier member, here's what this means for you. It's probably going to be business as usual. You may not even notice any operational differences. So, continue to plan to use your tickets. Continue to book tickets, although you might want to be a little bit cautious about buying one for a year from now.

The same for frequent flier programs, your ticket will still be honored. However, if the carrier does have to liquidate, well, you won't be able to use your reward, your award for the miles. So, that's something to keep in mind.

Now, for investors, a little bit of a different story here. Typically when a company goes into chapter 11, the stock does still trade. But then when it comes out of bankruptcy protection, it's typically a new stock that's issued. And shareholders get stuck in the middle, because creditors are the first ones to get paid.

So, it's not such a bad news here for passengers, but for stockholders a little bit of a different story.

Carol, we aren't sure what's going to happen with the stock trading here at the Nasdaq today, but we'll keep an eye on that story.

Quickly, Gateway is getting out of the personal computer electronics business, getting back to its roots for personal computers. We'll be keeping an eye on that story as reported in "The Wall Street Journal" today.

Back to you.

COSTELLO: Carrie Lee, thank you.

Let's head live to New York to check in with Miles O'Brien and Heidi Collins for a look at what's coming up.

Good morning.

HEIDI COLLINS, CNN ANCHOR: Good morning to you, Carol.

MILES O'BRIEN, CNN ANCHOR: Good morning.

COLLINS: Obviously, we're going to be talking an awful lot about Hurricane Ivan, back to category 5 now. It's heading straight for Cuba. We're going to talk to the National Hurricane Center to find out when and where it will hit the U.S., if possible, because, boy, this thing has really been hard to track.

O'BRIEN: We'll talk to local officials in Panama City as well.

In Iraq, more violence to tell you about, fighting is under way in Fallujah. U.S. forces may have hit a terrorist meeting. We'll have a live report from Baghdad for you.

COLLINS: And then the latest poll numbers, conflicting numbers now, on whether President Bush has actually kept his post-convention bounce. Those numbers were pretty high after the convention. We're going to talk with Bill Schneider about that to find out what he thinks. We're going to have that and a whole lot more, along with our football picks, right?

O'BRIEN: Which is really what we live for up here in New York, apparently. So, I've learned, Carol, they care a lot about their football picks, yes.

COLLINS: Carol, did you make any predictions over the weekend?

COSTELLO: Oh, yes, and all of them came true.

COLLINS: They did?

COSTELLO: Yes.

COLLINS: Well, good for you.

COSTELLO: Detroit, baby! Detroit won after 24 losses on the road!

COLLINS: Wow! That was a good pick, very impressive.

O'BRIEN: All right.

COSTELLO: Thank you. We'll see you in a bit. Thanks.

COLLINS: OK, thanks, Carol.

COSTELLO: Your news, money, weather and sports. It is 6:48 Eastern. Here's what's all new this morning.

Something is taking a bite out of crime. Violence and property crime rates in the U.S. are holding steady at a 30-year low. Officials say one reason could be that more crooks are still behind bars.

Even low-speed crashes between cars and SUVs can lead to costly repairs. An insurance group says that's because the bumpers of the two types of vehicles don't line up. You're kidding?

In money news, driving around has gotten a lot cheaper, really. Well, not a lot cheaper. Gas prices dipped nearly 2 cents over the past two weeks to about $1.86 a gallon for self-serve regular.

In culture, singer Alicia Keys has canceled plans for an October performance in Jakarta. The Grammy winner made the decision following last week's deadly bombing of the Australian embassy in Indonesia.

In sports, Roger Federer put on a dominating show at the U.S. Open. Federer lost just six games to sweep past Lleyton Hewitt in straight sets. Federer becomes the first men's player since 1988 to win three grand slams titles in one year.

(WEATHER BREAK)

COSTELLO: Guess what we're going to talk about now, Chad?

CHAD MYERS, CNN METEOROLOGIST: I don't know.

COSTELLO: Football!

MYERS: Oh, OK.

COSTELLO: Football is...

MYERS: I thought it would be racing.

COSTELLO: No, no, racing, only football. We're going to talk about Sunday's successful return for the once and future king of Washington. And, of course, we'll talk more about the Lions.

Chris Cotter is in the house. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: What a beautiful Sunday it was. It was kickoff day for the NFL. And, of course, the Lions were roaring.

CHRIS COTTER, CNN SPORTS CONTRIBUTOR: Roaring, all right, we'll give them that, right? Three years without a win on the road, we'll give a roaring today.

COSTELLO: Yes, but it was a curse. The curse is over for the Detroit Lions on the road. And a win is -- I don't care if the Chicago (UNINTELLIGIBLE).

COTTER: Well, I do. You're right. A win in the NFL on the road is impressive, whether you beat the Bears or whether you beat anybody. It's to go on the road and win. It's good. And they get Houston next week at home, and then it would be 2-0. When was the last time that happened?

COSTELLO: It's been a long time.

COTTER: Yes.

COSTELLO: But anyway, let's talk about Jacksonville, first, shall we?

COTTER: Yes, this game kind of got it all started yesterday, not in overtime but a last-second win by Jacksonville. And here is the final play of the game. Fourth down, Byron Leftwich finds Ernest Wilford in the back of the end zone. After first, second and third down, they couldn't get it done. The final play of the game Jacksonville gets the win on the road at Buffalo. So that was a big win for them.

And Bryon Leftwich had not played well all game-long until that final drive of 80 yards.

COSTELLO: Oh, let's get to the Lions.

COTTER: You want to get to the Lions?

COSTELLO: Yes.

COTTER: How about this play by Bracy Walker? You'll see a blocked kick here by Chicago, and Bracy Walker is going to kick it up to the Lions. It bounces gratuitously right into his arms. It's a cavalcade of blockers. And you can see this is a big lumbering lineman. This is a defensive back right here laboring toward the end here just to get into the end zone.

COSTELLO: He was tired!

COTTER: And then, of course, who tackles him but his teammate in the back of the end zone.

COSTELLO: He was so tired after that run.

COTTER: Oh, after three years of not getting a win on the road I guess you can celebrate, and they did.

COSTELLO: Absolutely. OK, we'll have to move on now.

COTTER: Yes, the Lions get the win and, as you said, breaking that huge road losing streak. So, it's a new era in Detroit football with Mariucci as the head coach now. You're 1-0, you win on the road, and then you're going to win at home next week I think against Houston again 2-0, trying to make the playoffs this year.

COSTELLO: OK, you were going to talk about the Ravens and the Redskins.

COTTER: Yes, talk about the Ravens. All they do is talk, and they've been talking and talking, you know, with Deion Sanders coming back. There he is right there, No. 37. But this was all Cleveland. And last year, the Ravens dominated the Browns. Jamal Lewis ran for an NFL record, a single-game record against them last year.

COSTELLO: Right.

COTTER: And this year, it was Cleveland at home dominating this football game, embarrassing the Ravens.

COSTELLO: So, Jeff Garcia has added a lot.

COTTER: He has. He added a lot. He's added a lot of confidence for this football team. And so, that's a huge thing for them that they, you know, have a new quarterback. Tim Couch just wasn't getting it done. Jeff Garcia comes over from San Francisco and gives them a lot of confidence, and they go and get the win.

COSTELLO: Redskins, Coach Gibbs.

COTTER: Coach Gibbs making his return. You know, three Super Bowls with the Redskins, and he comes back here against Tampa Bay. And Clinton Portis from Denver last year, first carry as a member of the Redskins. Look at the fans. They're going crazy in front of him. Obviously, they love having him there in a skins uniform, and he goes 64 yards, the first play from scrimmage, and ran the ball very successfully. That's Joe Gibbs' football. He wants to run it first. Clinton Portis now he has a back (UNINTELLIGIBLE) do that, and they beat Tampa Bay yesterday 16-10.

COSTELLO: Yes, but they were at home. And, remember, the Detroit Lions were on the road. It was a more impressive win.

We have to talk about...

MYERS: Will you get over the Lions thing?

COTTER: I don't know (UNINTELLIGIBLE).

COSTELLO: No.

MYERS: Do you have DirecTV this year, too?

COSTELLO: No, I had to go to a sports bar. But it fun.

COTTER: Too bad you had to spend Sunday at a sports bar watching your team.

MYERS: That's my anchor!

COSTELLO: I was drinking beer and watching the game. It was great.

MYERS: We'll be right back.

COTTER: That's what football is all about, Carol.

COSTELLO: That's right.

(COMMERCIAL BREAK)

COSTELLO: Take it away, Chad.

MYERS: If you've been paying attention you might win that beautiful coffee mug sitting right there on the table. How many types of semi-automatic weapons were banned in 1994? And we showed you a picture of this, had a little story about it, Jason Bellini in the hurricane hunter aircraft. What type of plane was that?

COSTELLO: Oh!

MYERS: And it was not a jet, by the way. So, it is a rugged piece of equipment. That's all I'll let you know.

COSTELLO: That's a tough one.

MYERS: It is.

COSTELLO: Daybreak@CNN.com. That's Daybreak@CNN.com.

Chris Cotter, thanks for being with us.

COTTER: Can I guess? It was a big plane.

MYERS: It was a big plane.

COTTER: Do I win the mug?

MYERS: It's not, I mean, more than big.

COTTER: It's wrong?

MYERS: Yes.

COTTER: Once again.

COSTELLO: "AMERICAN MORNING" starts right now.

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


Aired September 13, 2004 - 06:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: After one of the bloodiest weekends in months, there is new violence under way in Iraq this morning.
It is Monday, September 13. This is DAYBREAK.

And good morning to you from the CNN global headquarters in Atlanta. I'm Carol Costello.

Now in the news, U.S. warplanes and artillery blasted the insurgent strongholds of Fallujah this morning. Hospital officials say at least 10 were killed. The action follows a bloody weekend in Iraq. At least 78 Iraqis were killed in the 24 hours ending at 1:00 this morning Eastern Time.

Russian President Vladimir Putin announced several steps today aimed at fighting terrorists. Among them: strengthening the Kremlin's control over the nation's political structure. He's also ordered security services to better cooperate with other nations in battling terrorists.

The federal ban on the sale of military-style assault weapons expires at midnight tonight. And Senate Republican leader Bill Frist says that is the will of the American people. The ban was enacted 10 years ago after three multiple killings in California.

Cubans are preparing as best they can for Hurricane Ivan. The category 5 storm has been wrecking and flooding the Cayman Islands. Ivan is expected to hit the western tip of Cuba sometime tonight.

(WEATHER BREAK)

COSTELLO: A so-called precision strike this morning by U.S. warplanes on a suspected meeting site for terrorists in Fallujah. A hospital director there says at least 10 people were killed in that airstrike.

And in ground battles in the city, the deaths this morning follow a violent weekend in Iraq as CNN's Diana Muriel reports live from Baghdad.

Good morning.

DIANA MURIEL, CNN CORRESPONDENT: Good morning, Carol.

Yes, more explosions and more heavy fighting in Fallujah, this trouble spot for American troops to the west of Baghdad. We've had confirmation from military sources that F-16s were used in a precision strike. They fired two 500-pound satellite-guided bombs on a location which, they say, was a terrorist meeting site used by associates and operatives of Abu Musab Al Zarqawi, one of the most wanted on the al Qaeda list of most-wanted suspects.

Now, they say that when the strike happened at just after 6:00 local time that the only people in that building were these operatives. But we have conflicted reports from our sources in the city. They say that there were four locations that were hit by the Americans in these airstrikes.

The doctor at the Fallujah hospital, Dr. Rafe Al-Aysawi, told us that 10 people have been killed and 26 have been wounded. And he also said that the Americans had fired on an ambulance that was carrying wounded to the hospital. We haven't had confirmation yet from the American military on that information.

We've also had conflicting reports with regards to an incident that happened here in Baghdad on Sunday. An American patrol got into difficulty in an area known as Little Fallujah, Haifa Street, just on the other side of the river to where I'm speaking to you now.

A Bradley Fighting Vehicle was set ablaze by a roadside bomb, and the soldiers inside it were medivaced. While they were being taken out of the vehicle, they came under attack from insurgents firing Molotov cocktails and grenades as well.

Now, the confliction occurs when the U.S. military decided to send a helicopter gunship to that location and to destroy that Bradley, to stop the looters, they say, from stripping it of its ammunition and other supplies that were on board.

But eyewitnesses have told CNN that a large group of civilians had by that time gathered around the Bradley. They were throwing stones at it. They were shouting "Allah Akbar, God is great," celebrating the fact that a Bradley had been killed. But they were civilians. They were not looters. They were not insurgents.

And the airstrike that occurred then seems to have been responsible for the majority of the deaths and those wounded in that incident; 22 killed and 61 wounded, according to the Ministry of Health here in Iraq - Carol.

COSTELLO: And also, Diana, there's this graphic video being shown on Arab television of an Arab TV reporter being killed in that same incident. Tell us more about that.

MURIEL: That's right, Carol. Thirty-two-year-old Palestinian journalist Mazen al-Tumaizi, he works for various Arabian networks, including Al-Arabiya, the Dubai-based network. He was standing at the scene conducing what we call in TV parlance "a piece to camera." He was reporting on camera at that location when this incident happened, this airstrike happened.

Now, the cameraman who was taking that film, a Reuters cameraman, was also injured in the blast, and indeed there was another press photographer who was injured whilst he was reporting that.

This is what makes us suspicious here at CNN Baghdad. Why was it that a group of journalists were out there reporting live from that location or reporting from that location when the airstrike happened? How does that tally with what the American military are telling us about the fact that there were looters and insurgents who were firing more grenades at American forces in that area?

And we're trying to get clarification from the military as to exactly what those pilots saw.

We do know from them that the pilots came around a second time, and they decided not to fire that second time because they could not positively identify who was on the ground. Some confusion here, but it certainly seems from the death toll and from the numbers of wounded that this was one of the most severe incidents that we've seen here in Baghdad -- Carol.

COSTELLO: Diana Muriel reporting live from Baghdad this morning.

Some political fireworks over comments by Secretary of State Colin Powell. Senator John Kerry says Powell is telling the truth when it comes to an alleged link between Iraq and 9/11, but no one else in the administration is. Kerry leveled the charge after Powell said this:

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: We know that there had been connections and there had been exchanges between al Qaeda and the Saddam Hussein regime, and those have been pursued and looked at. But I have seen nothing that makes a direct connection between Saddam Hussein, that awful regime, and what happened on 9/11.

(END VIDEO CLIP)

COSTELLO: In a statement, Senator Kerry says: "Secretary Powell has told the truth. It's wrong for others in this administration to continually mislead the American people about a link that does not exist. Unfortunately, in its desperate attempts to reinvent a rationale for the Iraq war, this White House has repeatedly chosen to mislead the American people."

And that is our hot button political issue this morning. Live from Washington, Vaughn Ververs is from the "National Journal's" "The Hotline." He joins us now.

Good morning, Vaughn.

VAUGHN VERVERS, EDITOR, "THE HOTLINE": Good morning, Carol.

COSTELLO: All right, let's play politics. John Kerry is making hay of Colin Powell's comments. But the fact is most Americans still believe there is a link between Iraq and 9/11.

VERVERS: That's right. COSTELLO: So, is it a deal?

VERVERS: That's right. Well, we've seen recent polling that shows up to 43 percent of the American people believe that there was a direct link between Saddam and 9/11.

This is part of the delicate dance that we've seen all throughout this election season with the administration continually trying to make Iraq part of the war on terror in the overall general sense. And in doing that, they've really gone to great lengths to try to establish connections between al Qaeda and the Iraqi regime in some way or fashion. And that has led the Democrats to continually charge that they are misleading people into believing that there was a direct link there.

So far, it seems to have paid off for the administration. They have been able to...

COSTELLO: So, why is Colin Powell coming out to say this, while Vice President Dick Cheney said last week -- well, he inferred it. He didn't explicitly say there was a link between Iraq and al Qaeda. But why is Secretary of State Colin Powell coming out and explicitly saying it?

VERVERS: Well, that's not anything different really what Colin Powell said than what the president has said in the past. But you're right. Again, this is part of the delicate dance that Dick Cheney is trying to fuzz the issue just a little bit to bring it all together in a general sense.

But the administration has said before that they don't believe that Saddam Hussein had any direct involvement in 9/11; only that they believe that there were peripheral contacts, that there was a link between them and terrorists, and that that was part of the rationale for war.

COSTELLO: All right, let's move on and talk about the Kitty Kelley book, because it's coming out today. We have an excerpt now. In the book -- this is what Kitty Kelley alleges. She says the president and Marvin did coke at Camp David when their father was president; and not just once either. This was a family of alcoholism, drug addiction and even schizophrenia.

It's harsh.

VERVERS: Well, we really saw the White House go on the offensive against this book early last week when some of these allegations began to leak out in the media preemptively. We saw the White House, you know, calling it trash, actually putting pressure on some network stations not to interview Kitty Kelley for this book. They are very upset that shows like the "Today Show" on NBC and other shows on all different kinds of networks are taking this seriously.

And they went on the offensive, so they're clearly worried about it to some extent. They did get a break last week when Sharon Bush, the ex-wife of George Bush's brother, Neil Bush, came out and said that she was not the source for those allegations despite the fact that apparently she's named as a source in the book.

So, they did get a little break there by getting some help from an estranged family member denying to be the source. But they're clearly a little worried about this.

COSTELLO: Vaughn Ververs is from the "National Journal's" "The Hotline," on the phone with us this morning. Thank you, Vaughn.

Deja vu for U.S. Airways, and not in a good way. Back to bankruptcy court. What's the reason behind this decision? It's our business buzz at 6:44 Eastern.

Plus, who won, who lost and who's off to a healthy start this season? Check out the DAYBREAK "Scorecard" with us at 50 minutes past.

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

(COMMERCIAL BREAK)

COSTELLO: U.S. markets will open up on an up-note this morning. The Dow is heading into the week up nearly 24 points. The Nasdaq rose 25 points almost. And the S&P 500 ended the week up just about 5 and a half points.

It's time for a little more business buzz. It is the second stop in bankruptcy protection for one trouble airline. And if you're one of the frequent fliers, what does that mean for you?

Carrie Lee has the answers, live from the Nasdaq Marketsite. Of course, we're talking about U.S. Airways this morning.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: That's right, Carol. U.S. Airways filing for chapter 11 bankruptcy protection now for the second time in 25 months. U.S. Airways plans to restructure into a low-cost carrier. It seems like the only way to go lately.

Now, if you're a U.S. Air ticket holder or a frequent flier member, here's what this means for you. It's probably going to be business as usual. You may not even notice any operational differences. So, continue to plan to use your tickets. Continue to book tickets, although you might want to be a little bit cautious about buying one for a year from now.

The same for frequent flier programs, your ticket will still be honored. However, if the carrier does have to liquidate, well, you won't be able to use your reward, your award for the miles. So, that's something to keep in mind.

Now, for investors, a little bit of a different story here. Typically when a company goes into chapter 11, the stock does still trade. But then when it comes out of bankruptcy protection, it's typically a new stock that's issued. And shareholders get stuck in the middle, because creditors are the first ones to get paid.

So, it's not such a bad news here for passengers, but for stockholders a little bit of a different story.

Carol, we aren't sure what's going to happen with the stock trading here at the Nasdaq today, but we'll keep an eye on that story.

Quickly, Gateway is getting out of the personal computer electronics business, getting back to its roots for personal computers. We'll be keeping an eye on that story as reported in "The Wall Street Journal" today.

Back to you.

COSTELLO: Carrie Lee, thank you.

Let's head live to New York to check in with Miles O'Brien and Heidi Collins for a look at what's coming up.

Good morning.

HEIDI COLLINS, CNN ANCHOR: Good morning to you, Carol.

MILES O'BRIEN, CNN ANCHOR: Good morning.

COLLINS: Obviously, we're going to be talking an awful lot about Hurricane Ivan, back to category 5 now. It's heading straight for Cuba. We're going to talk to the National Hurricane Center to find out when and where it will hit the U.S., if possible, because, boy, this thing has really been hard to track.

O'BRIEN: We'll talk to local officials in Panama City as well.

In Iraq, more violence to tell you about, fighting is under way in Fallujah. U.S. forces may have hit a terrorist meeting. We'll have a live report from Baghdad for you.

COLLINS: And then the latest poll numbers, conflicting numbers now, on whether President Bush has actually kept his post-convention bounce. Those numbers were pretty high after the convention. We're going to talk with Bill Schneider about that to find out what he thinks. We're going to have that and a whole lot more, along with our football picks, right?

O'BRIEN: Which is really what we live for up here in New York, apparently. So, I've learned, Carol, they care a lot about their football picks, yes.

COLLINS: Carol, did you make any predictions over the weekend?

COSTELLO: Oh, yes, and all of them came true.

COLLINS: They did?

COSTELLO: Yes.

COLLINS: Well, good for you.

COSTELLO: Detroit, baby! Detroit won after 24 losses on the road!

COLLINS: Wow! That was a good pick, very impressive.

O'BRIEN: All right.

COSTELLO: Thank you. We'll see you in a bit. Thanks.

COLLINS: OK, thanks, Carol.

COSTELLO: Your news, money, weather and sports. It is 6:48 Eastern. Here's what's all new this morning.

Something is taking a bite out of crime. Violence and property crime rates in the U.S. are holding steady at a 30-year low. Officials say one reason could be that more crooks are still behind bars.

Even low-speed crashes between cars and SUVs can lead to costly repairs. An insurance group says that's because the bumpers of the two types of vehicles don't line up. You're kidding?

In money news, driving around has gotten a lot cheaper, really. Well, not a lot cheaper. Gas prices dipped nearly 2 cents over the past two weeks to about $1.86 a gallon for self-serve regular.

In culture, singer Alicia Keys has canceled plans for an October performance in Jakarta. The Grammy winner made the decision following last week's deadly bombing of the Australian embassy in Indonesia.

In sports, Roger Federer put on a dominating show at the U.S. Open. Federer lost just six games to sweep past Lleyton Hewitt in straight sets. Federer becomes the first men's player since 1988 to win three grand slams titles in one year.

(WEATHER BREAK)

COSTELLO: Guess what we're going to talk about now, Chad?

CHAD MYERS, CNN METEOROLOGIST: I don't know.

COSTELLO: Football!

MYERS: Oh, OK.

COSTELLO: Football is...

MYERS: I thought it would be racing.

COSTELLO: No, no, racing, only football. We're going to talk about Sunday's successful return for the once and future king of Washington. And, of course, we'll talk more about the Lions.

Chris Cotter is in the house. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: What a beautiful Sunday it was. It was kickoff day for the NFL. And, of course, the Lions were roaring.

CHRIS COTTER, CNN SPORTS CONTRIBUTOR: Roaring, all right, we'll give them that, right? Three years without a win on the road, we'll give a roaring today.

COSTELLO: Yes, but it was a curse. The curse is over for the Detroit Lions on the road. And a win is -- I don't care if the Chicago (UNINTELLIGIBLE).

COTTER: Well, I do. You're right. A win in the NFL on the road is impressive, whether you beat the Bears or whether you beat anybody. It's to go on the road and win. It's good. And they get Houston next week at home, and then it would be 2-0. When was the last time that happened?

COSTELLO: It's been a long time.

COTTER: Yes.

COSTELLO: But anyway, let's talk about Jacksonville, first, shall we?

COTTER: Yes, this game kind of got it all started yesterday, not in overtime but a last-second win by Jacksonville. And here is the final play of the game. Fourth down, Byron Leftwich finds Ernest Wilford in the back of the end zone. After first, second and third down, they couldn't get it done. The final play of the game Jacksonville gets the win on the road at Buffalo. So that was a big win for them.

And Bryon Leftwich had not played well all game-long until that final drive of 80 yards.

COSTELLO: Oh, let's get to the Lions.

COTTER: You want to get to the Lions?

COSTELLO: Yes.

COTTER: How about this play by Bracy Walker? You'll see a blocked kick here by Chicago, and Bracy Walker is going to kick it up to the Lions. It bounces gratuitously right into his arms. It's a cavalcade of blockers. And you can see this is a big lumbering lineman. This is a defensive back right here laboring toward the end here just to get into the end zone.

COSTELLO: He was tired!

COTTER: And then, of course, who tackles him but his teammate in the back of the end zone.

COSTELLO: He was so tired after that run.

COTTER: Oh, after three years of not getting a win on the road I guess you can celebrate, and they did.

COSTELLO: Absolutely. OK, we'll have to move on now.

COTTER: Yes, the Lions get the win and, as you said, breaking that huge road losing streak. So, it's a new era in Detroit football with Mariucci as the head coach now. You're 1-0, you win on the road, and then you're going to win at home next week I think against Houston again 2-0, trying to make the playoffs this year.

COSTELLO: OK, you were going to talk about the Ravens and the Redskins.

COTTER: Yes, talk about the Ravens. All they do is talk, and they've been talking and talking, you know, with Deion Sanders coming back. There he is right there, No. 37. But this was all Cleveland. And last year, the Ravens dominated the Browns. Jamal Lewis ran for an NFL record, a single-game record against them last year.

COSTELLO: Right.

COTTER: And this year, it was Cleveland at home dominating this football game, embarrassing the Ravens.

COSTELLO: So, Jeff Garcia has added a lot.

COTTER: He has. He added a lot. He's added a lot of confidence for this football team. And so, that's a huge thing for them that they, you know, have a new quarterback. Tim Couch just wasn't getting it done. Jeff Garcia comes over from San Francisco and gives them a lot of confidence, and they go and get the win.

COSTELLO: Redskins, Coach Gibbs.

COTTER: Coach Gibbs making his return. You know, three Super Bowls with the Redskins, and he comes back here against Tampa Bay. And Clinton Portis from Denver last year, first carry as a member of the Redskins. Look at the fans. They're going crazy in front of him. Obviously, they love having him there in a skins uniform, and he goes 64 yards, the first play from scrimmage, and ran the ball very successfully. That's Joe Gibbs' football. He wants to run it first. Clinton Portis now he has a back (UNINTELLIGIBLE) do that, and they beat Tampa Bay yesterday 16-10.

COSTELLO: Yes, but they were at home. And, remember, the Detroit Lions were on the road. It was a more impressive win.

We have to talk about...

MYERS: Will you get over the Lions thing?

COTTER: I don't know (UNINTELLIGIBLE).

COSTELLO: No.

MYERS: Do you have DirecTV this year, too?

COSTELLO: No, I had to go to a sports bar. But it fun.

COTTER: Too bad you had to spend Sunday at a sports bar watching your team.

MYERS: That's my anchor!

COSTELLO: I was drinking beer and watching the game. It was great.

MYERS: We'll be right back.

COTTER: That's what football is all about, Carol.

COSTELLO: That's right.

(COMMERCIAL BREAK)

COSTELLO: Take it away, Chad.

MYERS: If you've been paying attention you might win that beautiful coffee mug sitting right there on the table. How many types of semi-automatic weapons were banned in 1994? And we showed you a picture of this, had a little story about it, Jason Bellini in the hurricane hunter aircraft. What type of plane was that?

COSTELLO: Oh!

MYERS: And it was not a jet, by the way. So, it is a rugged piece of equipment. That's all I'll let you know.

COSTELLO: That's a tough one.

MYERS: It is.

COSTELLO: Daybreak@CNN.com. That's Daybreak@CNN.com.

Chris Cotter, thanks for being with us.

COTTER: Can I guess? It was a big plane.

MYERS: It was a big plane.

COTTER: Do I win the mug?

MYERS: It's not, I mean, more than big.

COTTER: It's wrong?

MYERS: Yes.

COTTER: Once again.

COSTELLO: "AMERICAN MORNING" starts right now.

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