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American Morning

Bush and Kerry Campaigns; Interview with Former Weapons Inspector David Kay; Stern via Satellite

Aired October 07, 2004 - 8:59   ET

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


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


HEIDI COLLINS, CNN ANCHOR: The final CIA report on weapons of mass destruction in Iraq: they were not there.
Getting inside the mind of Saddam Hussein: a man afraid of telephones, who loved American movies.

And the woman accusing Kobe Bryant of sexual assault told now she must come forward on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

COLLINS: Good morning. Bill and Soledad are off today. But Rick Sanchez is here with us today.

RICK SANCHEZ, CNN ANCHOR: Good to be here.

COLLINS: Good morning to you.

Some of the other stories that we're following today. Less than four weeks ago in the presidential campaign, both sides are watchful of an October surprise. Whether it's catching Osama bin Laden or another terrorist attack, what are the events, large and small, that could change the election? Kelly Wallace will have a look at that for us.

SANCHEZ: Also, a story that a lot of New Yorkers are certainly talking about. Mr. Howard Stern taking his program to satellite radio. He says it's going to be the death of AM/FM radio. We're going to talk about how much of an impact really is going to be felt. We're going to do that with Sally Jessy Raphael, a longtime veteran of the radio call-in format herself.

COLLINS: And his confidence is stunning. Isn't it?

Jack Cafferty, he is off this morning. But Andy Borowitz is here with our "Question of the Day." We'll get to it in just a few minutes.

In the meantime, though, want to check on the stories "Now in the News" with Kelly Wallace today.

Kelly, New Jersey this morning?

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Yes, that's where we're beginning. A developing story out of New Jersey. Police and fire officials are now at the scene of what they say is a car explosion. At least one person was killed in the blast. New Jersey state police tell CNN they have ruled out any links to terrorism, at least for now. The incident is under investigation, and we will keep you posted with all developments there.

In Iraq, there is now word of another American death. Earlier in the show, we told you about an American killed near Fallujah. The U.S. military now says a second soldier died late last night from injuries suffered during a bombing south of Mosul.

Meanwhile, there are reports this morning of a loud explosion in Baghdad. The U.S. military says it is investigating.

For the first time in eight years a woman has won the Nobel Prize for literature. Elfriede Jelinek from Austria was awarded the honor this morning. The novelist, playwright and poet is the ninth woman to win the literature award since 1901. The Peace Prize will be announced tomorrow.

And the woman who accused Kobe Bryant of sexual assault may be named publicly. A federal judge yesterday rejected her request to remain anonymous if she wants to continue the civil case. He says protecting the accuser's identity may unfairly bias the case in her favor. The judge also ruled that the public interest in open-court proceedings outweighs her desire for privacy. We, of course, will keep following that story.

That's a quick look at the headlines. Back to Heidi and Rick.

SANCHEZ: Thanks a lot, Kelly.

Well, the direction of the presidential campaign shifted somewhat dramatically after last week's debate. So the expectations for tomorrow are unusually high. Let's get reports from both the Bush and Kerry camps with Elaine Quijano at the White House and Frank Buckley, who's out in Colorado.

Frank, let's begin with you this morning. Good morning to you.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Good morning, Rick. Here we go again.

Round two of the pre-debate expectations spin. This time, Kerry advisers are saying because of the largely positive reviews of Senator Kerry after the first debate, they know that the expectations are higher on Senator Kerry this time. But they say he is focused in his preparation for the debate and he will be ready for Friday.

(BEGIN VIDEOTAPE)

BUCKLEY (voice-over): Senator John Kerry prepared for the next presidential debate at this resort in Colorado, leaving it to his running mate to respond to a blistering criticism of Kerry leveled by President Bush. SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: The problem is, of course, when you've got the same old tired ideas, the same old false attacks, the same old tired rhetoric, there are no new ideas. There are no new plans.

BUCKLEY: As Senator Kerry preps in private, advisers say his positive reviews in the first debate have raised expectations. But they also assert that President Bush has even more riding on the second clash.

MIKE MCCURRY, KERRY ADVISER: And President Bush did not have a good night. And he practically has to go in and hit a homerun now for him to really be able to say that he's done in these debates what he needs to do.

BUCKLEY: And while the next debate will include domestic policy issues, foreign policy questions will also be asked in the town meeting format. And Kerry advisers believe the report that went to Congress yesterday indicating Saddam Hussein did not have WMD stockpiles at the time of the invasion will have a featured role in the debate.

MCCURRY: This is a damning report. It's one that will probably dominate a lot of the discussion of foreign policy because it casts such a negative comment about the reasons in which the administration said to America we were going to war.

(END VIDEOTAPE)

BUCKLEY: And the debate prep taking place here at this hotel in a converted ballroom, converted into a town hall-style setting. Greg Craig, the former Clinton administration attorney, playing the role of President Bush. Campaign staffers playing the roles of audience members who are going to be asking the questions in this debate. Later today, Senator Kerry travels to St. Louis -- Rick.

SANCHEZ: Frank Buckley in Colorado. Thanks a lot, Frank.

President Bush is campaigning today before he heads to St. Louis. Elaine Quijano is at the White House. She's following this for us.

Good morning, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Rick.

President Bush heads to the key battleground state of Wisconsin before moving on to Missouri ahead of tomorrow's debate. The president today is expected to continue with his stepped-up attacks against Senator John Kerry. It was yesterday during two campaign stops, one in Pennsylvania, the other in Michigan, that the president ratcheted up his comments, delivering a blistering assault on Kerry's record.

The president called the senator a tax-and-spend liberal. And on the issue of terrorism, Mr. Bush said Kerry's policies would weaken America and make the world more dangerous. Now, the president did not mention that CIA report which found no weapons of mass destruction in Iraq when the U.S. invaded last year. That, of course, was the administration's main rational for going to war. Instead, Mr. Bush repeated his argument that taking Saddam Hussein out of power has made the world safer.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There was a risk that Saddam Hussein would pass weapons or materials or information to terrorist networks. In the world after September the 11th, that was a risk we could not afford to take.

(END VIDEO CLIP)

QUIJANO: Now, administration officials say they believe the report shows that Saddam Hussein, Iraq was a threat that the United States needed to take seriously. That Saddam Hussein had the intention and capability to develop weapons of mass destruction.

Meantime, as we said, the president heading on to Wisconsin, Wasau, Wisconsin, for an event there. And then going on to Missouri. Aides are being tight-lipped about what the president might be doing differently this time around to prepare for the second debate -- Rick.

SANCHEZ: All right, Elaine. Thanks so much for that report.

We should remind you that you can watch tomorrow's debate right here on CNN. Our prime-time coverage, as you've come to expect, begins at 7:00 Eastern -- Heidi.

COLLINS: Now to Iraq and the political fallout from a new CIA report that says there were no WMD stockpiles in Saddam Hussein's Iraq at the time of the U.S. invasion. David Kay is a former chief U.S. weapons inspector in Iraq.

(BEGIN VIDEOTAPE)

COLLINS: The Bush-appointed weapons hunter, if you will, Charles Duelfer, said that the United States was almost all wrong on Iraq. What is new in this report that we're seeing?

DAVID KAY, FMR. CHIEF U.N. WEAPONS INSPECTOR: Well, I think in terms of lines of analysis, conclusions, there's nothing new. There's new evidence. And particularly important, I think, is the evidence with regard to how Saddam beat the sanction regime and the participation of European, former Soviet Union countries and China in helping ship prohibited goods to them. That's new, and that's important data, because it relates to other countries that maybe are trying to develop weapons of mass destruction.

COLLINS: Right. In fact, President Bush said yesterday that there was a real risk that Saddam Hussein could pass along this information to other terrorist networks. And Secretary of State Colin Powell also said this. Let's listen in. I'll get your comment on the backside here. (BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: If anybody wants to bet that when he finally got out from under those sanctions he would not have returned to development of weapons of mass destruction and their production, that's a bet that the president of the United States was not going to take.

(END VIDEO CLIP)

COLLINS: So while Charles Duelfer did report that there were no weapons of mass destruction, he did say that Saddam Hussein aspired to make nuclear weapons. Do you agree? Was this a risk?

KAY: Well, I think he did it, aspired to make weapons. I'm worried that you make too much out of that, because as the Duelfer report said, and as we found earlier, we found no actual plans to resume weapons of mass destruction production.

The more serious danger is, I think, the one the president pointed to. And that's that in the environment of corruption and decay that was Iraq during the last five years, there was a real danger not so much that Saddam would pass along the secrets of weapons of mass destruction, but scientists and engineers in their desperate desire to better themselves, to keep their families alive, might well have sold those secrets.

COLLINS: Also, a "Washington Post" editorial today in the paper that points out that no president really could have known then what we know now, if you will. Do you agree with that? That as long as Saddam Hussein remained in power, there really was no way to know whether or not he had those weapons?

KAY: It's absolutely true that you couldn't have known what we knew then. We have now for about 18 months had 1,700 very good and capable inspection personnel running over Iraq to the extent they can in the deteriorating security service.

I think, however, we could have known more than we did know. And quite frankly, I think the most meaningful conclusion of the Duelfer report is the failure of our intelligence services and the intelligence services of other western countries. We need to take that lesson to heart so our next president does not have to go through the same trauma that this one has, when you turn out your reasons for going to war to be so different than the actual facts.

(END VIDEOTAPE)

COLLINS: Former chief U.S. weapons inspector David Kay this morning.

The CIA report also paints a surprising picture of Saddam Hussein. Since last December, the former dictator has been held in isolation, revealing himself to a single debriefer. The report shows he helped for improved relations with the U.S. despite sanctions, weapons inspections and no-fly zones. Saddam is fond of American movies and literature. And one of his favorite books, Hemingway's "The Old Man and the Sea."

But he feared a U.S. attack, and says he only used a phone twice after 1990 to avoid being found. Among the more bizarre things to come out of the report, Saddam Hussein built a special laboratory to test his food before eating it -- Rick.

SANCHEZ: Let's take you now to a man who knew what he knew then and knows what he knows now, as well. Chad Myers at the CNN Center with the very latest forecast.

(WEATHER REPORT)

COLLINS: Still to come this morning, lost your cell phone and now you may not have to worry, though, about losing all of those numbers inside of it. This is great, because I'm on like cell phone number three.

SANCHEZ: Should Americans be allowed to see the coffins of soldiers that have been killed in Iraq? Well, we're going to ask one man why he's going to go to court over this question.

COLLINS: And Howard Stern takes his show to satellite radio. He's pretty serious about it, too. We're going to talk with Sally Jessy Raphael, her feelings about it, coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

SANCHEZ: And we welcome you back to AMERICAN MORNING. I'm Rick Sanchez, sitting in for Bill.

To hear Howard Stern tell it, his move to satellite is going to make government-regulated commercial radio, or commercial broadcasts obsolete.

(BEGIN VIDEO CLIP)

HOWARD STERN, RADIO TALK SHOW HOST: This marks the death of AM and FM radio. I guarantee it. I put my money where my mouth is.

(END VIDEO CLIP)

SANCHEZ: Now he's getting a lot of that money, too. The popular shock jock has struck a five-year, multi, multi, multi, multi, multimillion dollar deal with Sirius. That's essentially satellite radio. It begins in January of 2006.

Joining us now with her reaction is a radio pioneer, veteran talk show host sally Jessy Raphael.

Boy, it's so good to have you here.

SALLY JESSY RAPHAEL, FMR. TALK SHOW HOST: Thank you. Good morning to you. SANCHEZ: He says he's going to revolutionize this industry.

RAPHAEL: I love his ego.

SANCHEZ: Put people like you in the past.

RAPHAEL: Darn right. Not me? I'm in the future. I'm ahead of him. He's on satellite and I'm on the Internet.

SANCHEZ: Wow.

RAPHAEL: That's the -- hose two are going to be the future. First, let me say that it's really big news in the radio world. What he did is a win-win for him, for Sirius, and not particularly a loss for landline radio. Not particularly.

SANCHEZ: Landline radio, you mean commercial broadcast?

RAPHAEL: Yes.

SANCHEZ: And what we listen to on our car radios?

RAPHAEL: Yes.

SANCHEZ: Why not? Everybody else is saying that if satellite radio takes off, and if he's willing or able to bring his million-plus viewers over, that's going to be the death knell for these guys. You say no?

RAPHAEL: Oh, come on, really. He's one guy. Two hundred million people tune in to regular, if you call it regular, radio every day.

SANCHEZ: So are we overblowing this?

RAPHAEL: Well, 200 million. And both satellite companies have three million? And the one he's on has a half a million?

SANCHEZ: They're paying this guy, Sally, something like $100 million.

RAPHAEL: No, no. No they're not.

SANCHEZ: No?

RAPHAEL: No. They're going to give him -- I don't know the deal. You don't know the deal. I really wish I could have looked at it.

SANCHEZ: Those are the numbers being thrown out. Something like up to $100 million overs next five or 10 years.

SANCHEZ: OK. Here's the way it's going to work.

He's going to get probably stock or one or two stations. In other words, he's going to be an owner of that thing, because it's really good for Sirius that he has done that.

Up until, say, yesterday, most people said, "Well, what is satellite radio?" Now they know what satellite radio is.

SANCHEZ: Right.

RAPHAEL: So it put them on the map. Can they afford to pay him all that in cash? Even maybe if he brings in one million people.

If he's got 12 million listeners, he can bring in one million people, cause them to pay $150 a year, plus the equipment. Now you have to think, I love Howard Stern, but am I going to love him enough for $150 a year?

And I think it's doable. I think he'll get the million people. They'll have the money.

They'll give it to Howard. He'll have ownership. You see, unlike television, in radio, the minute you close your mouth, you don't own anything.

SANCHEZ: Right.

RAPHAEL: There's nothing. There's no residuals. That's the best way to explain it.

SANCHEZ: I'm just curious, $12.50 is what people pay a month?

RAPHAEL: Thirteen dollars a month on Sirius, $10 a month on XM.

SANCHEZ: If he doesn't get that commitment from that many people who are going to follow him, then this thing won't work?

RAPHAEL: They won't pay -- he won't be as financial. It's worked.

SANCHEZ: Yes.

RAPHAEL: He put them on the map. It's worked.

SANCHEZ: Yes.

RAPHAEL: It's done.

SANCHEZ: But he put them on the map. But it's one thing to have a nice commercial. It's another thing to actually have a product.

RAPHAEL: Yes, right.

SANCHEZ: That people are tuning in to and coming to.

RAPHAEL: Right.

SANCHEZ: Will that happen?

RAPHAEL: Yes. He'll get -- I believe it's good. I believe he'll get the million.

SANCHEZ: Wow. Is this going to be the place where we see this kind of show?

RAPHAEL: Well, now, look, he's right in that the radio today is pretty well, as we know it, is pretty well doomed. It's going to go to what I'm doing: sally -- sj - s...

SANCHEZ: There you go. I know you can do this. Here, I'll hold your hand. Go.

RAPHAEL: Carl (ph), help me.

UNIDENTIFIED MALE: SallyJR.com.

RAPHAEL: SallyJR.com. That's the big hit. That's where it's really going to be. Because you're all over the world with that.

Satellite has a footprint. You can only be in satellite from, say, Alaska to the end...

SANCHEZ: From the heel to the toe?

RAPHAEL: Yes, exactly. So...

SANCHEZ: We're out of time, Sally. Thanks so much for coming by.

RAPHAEL: Thank you very much.

SANCHEZ: I've been waiting to have this conversation with you.

RAPHAEL: Nice to talk to you.

SANCHEZ: Appreciate it.

Heidi, back over to you.

COLLINS: Still to come this morning, some Democrats worried about an October surprise. That can make all the difference in November.

Plus, a new cell phone service that could really make the best of a bad situation. Andy Serwer has that coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Thank goodness for commercials. You just missed the cheesiest joke.

Anyway, giving a Wall Street preview now. And if you lose your cell phone, there's a new way to salvage the phone numbers on it. Good news for some of us who are forgetful. Andy Serwer "Minding Your Business," looking at the market first. ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Yes. Futures are looking a little bit lower this morning, Heidi. And jobless claims coming in for the last week were actually pretty good.

Big jobs report, though, is tomorrow. So we're probably going to be just treading water today.

And let's see, one stock we're going to be watching this morning is Zales, reporting that their numbers are looking kind of weak going forward. And you're never going to guess why.

COLLINS: Why?

SERWER: They're blaming it on the hurricanes.

COLLINS: Really?

SERWER: Yes. I guess it sort of makes sense. You know, you get your condo knocked down, you're not going to go out and buy a diamond.

On the other hand, a diamond is not really a discretionary thing. In other words, you're going to get married next month, you're going to go out and buy a diamond. So always a little mysterious here.

SANCHEZ: How many of the stores, though, were knocked down or knocked out?

SERWER: Well, you know, they've got a bunch of them in Florida. But it's a national chain.

SANCHEZ: Right.

SERWER: So, you know, they say that's the problem.

COLLINS: It's the anniversary ring that you're not getting this year.

SERWER: That's true. Maybe there's some discretion there.

Let's talk a little bit about this cell phone story. You know, if you've ever lost your cell phone, it's a pain in the neck. And one of the biggest reasons why is because you probably have all your phone numbers stored there in your phone book, your phone directory, and they're gone. A lot of people, of course, don't carry those paper directories anymore, file faxes (ph).

Now Verizon has a new service where you can pay them $2 a month, and they'll store the phone numbers on their database. Isn't that a handy, dandy thing?

You just punch in a little thing on the phone and it zaps it back to good old Verizon's database. Kind of a nice service. Kind of a little big brothery, though, don't you think?

Nextel has got one like that, too. And there's an interesting one by an Australian firm where you don't pay monthly. But if you lose the numbers, then you pay them a fee when they've got you over a barrel. So interesting kind of wrinkle.

COLLINS: It seems a little bit better, though.

SERWER: Yes, could be.

COLLINS: All right. Thanks so much, Andy.

SERWER: You're welcome.

SANCHEZ: All right. Let's go now to the other Andy -- Mr. Borowitz.

ANDY BOROWITZ, BOROWITZREPORT.COM: I want to store all my phone numbers in Australia now. That would rock.

SERWER: G'day, Andy.

BOROWITZ: All right.

SANCHEZ: What are you going to be talking about?

BOROWITZ: Well, the Nobel Peace Prize is going to be announced tomorrow. And we've been asking you to be Nobel Peace Prize judges for the day and tell us who has been advancing the cause of peace in the year just passed. So our question to you today is who should win the Nobel Peace Prize and why?

Well, Gail writes, "Dennis Kucinich. Although the media marginalized him and his stands on health care, Iraq and the department of peace, it seems he had everything right."

Now this refers to a story we've already done today.

SERWER: He was my pick.

BOROWITZ: Your pick?

SERWER: Yes.

BOROWITZ: Mel writes, "The Nobel Peace Prize" should go to the newly feathered tyrannosaur, as we showed. He used to be a real terror a while back, but over the last year he's been very, very peaceful."

COLLINS: Is that the...

(CROSSTALK)

BOROWITZ: All right. Charlie -- Charlie from Ontario says, "Ben and J. Lo should get the Nobel Peace Prize. As soon as they broke up, we had peace and quiet. I hope Britney wins next year."

SERWER: Yes.

COLLINS: Oh, that was my pick.

BOROWITZ: Well there you go. Sorry, Heidi.

SERWER: Great minds.

BOROWITZ: Great minds.

Susan from New Brunswick, Canada, writes: "Senator John McCain for avoiding an American civil war by refusing to be John Kerry's running mate."

So there you go.

SANCHEZ: That's a nice plethora of answers, huh?

BOROWITZ: Absolutely.

COLLINS: I was going to say Britney Spears because, you know, all those marriages, trying to create a little peace, and then prenup for the next one.

BOROWITZ: That's right.

COLLINS: The most recent one. You know, it was very nice of her.

BOROWITZ: I think I would say either Britney or ElBaradei -- one of those two.

SANCHEZ: For not changing his hair color.

COLLINS: Clearly in the same category. All right, Andy, thanks for that.

Still to come this morning, an October surprise could events -- could change events, that is, whether orchestrated or unforeseen. Could they tip the balance in the presidential election? We'll talk about it coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired October 7, 2004 - 8:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: The final CIA report on weapons of mass destruction in Iraq: they were not there.
Getting inside the mind of Saddam Hussein: a man afraid of telephones, who loved American movies.

And the woman accusing Kobe Bryant of sexual assault told now she must come forward on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

COLLINS: Good morning. Bill and Soledad are off today. But Rick Sanchez is here with us today.

RICK SANCHEZ, CNN ANCHOR: Good to be here.

COLLINS: Good morning to you.

Some of the other stories that we're following today. Less than four weeks ago in the presidential campaign, both sides are watchful of an October surprise. Whether it's catching Osama bin Laden or another terrorist attack, what are the events, large and small, that could change the election? Kelly Wallace will have a look at that for us.

SANCHEZ: Also, a story that a lot of New Yorkers are certainly talking about. Mr. Howard Stern taking his program to satellite radio. He says it's going to be the death of AM/FM radio. We're going to talk about how much of an impact really is going to be felt. We're going to do that with Sally Jessy Raphael, a longtime veteran of the radio call-in format herself.

COLLINS: And his confidence is stunning. Isn't it?

Jack Cafferty, he is off this morning. But Andy Borowitz is here with our "Question of the Day." We'll get to it in just a few minutes.

In the meantime, though, want to check on the stories "Now in the News" with Kelly Wallace today.

Kelly, New Jersey this morning?

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Yes, that's where we're beginning. A developing story out of New Jersey. Police and fire officials are now at the scene of what they say is a car explosion. At least one person was killed in the blast. New Jersey state police tell CNN they have ruled out any links to terrorism, at least for now. The incident is under investigation, and we will keep you posted with all developments there.

In Iraq, there is now word of another American death. Earlier in the show, we told you about an American killed near Fallujah. The U.S. military now says a second soldier died late last night from injuries suffered during a bombing south of Mosul.

Meanwhile, there are reports this morning of a loud explosion in Baghdad. The U.S. military says it is investigating.

For the first time in eight years a woman has won the Nobel Prize for literature. Elfriede Jelinek from Austria was awarded the honor this morning. The novelist, playwright and poet is the ninth woman to win the literature award since 1901. The Peace Prize will be announced tomorrow.

And the woman who accused Kobe Bryant of sexual assault may be named publicly. A federal judge yesterday rejected her request to remain anonymous if she wants to continue the civil case. He says protecting the accuser's identity may unfairly bias the case in her favor. The judge also ruled that the public interest in open-court proceedings outweighs her desire for privacy. We, of course, will keep following that story.

That's a quick look at the headlines. Back to Heidi and Rick.

SANCHEZ: Thanks a lot, Kelly.

Well, the direction of the presidential campaign shifted somewhat dramatically after last week's debate. So the expectations for tomorrow are unusually high. Let's get reports from both the Bush and Kerry camps with Elaine Quijano at the White House and Frank Buckley, who's out in Colorado.

Frank, let's begin with you this morning. Good morning to you.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Good morning, Rick. Here we go again.

Round two of the pre-debate expectations spin. This time, Kerry advisers are saying because of the largely positive reviews of Senator Kerry after the first debate, they know that the expectations are higher on Senator Kerry this time. But they say he is focused in his preparation for the debate and he will be ready for Friday.

(BEGIN VIDEOTAPE)

BUCKLEY (voice-over): Senator John Kerry prepared for the next presidential debate at this resort in Colorado, leaving it to his running mate to respond to a blistering criticism of Kerry leveled by President Bush. SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: The problem is, of course, when you've got the same old tired ideas, the same old false attacks, the same old tired rhetoric, there are no new ideas. There are no new plans.

BUCKLEY: As Senator Kerry preps in private, advisers say his positive reviews in the first debate have raised expectations. But they also assert that President Bush has even more riding on the second clash.

MIKE MCCURRY, KERRY ADVISER: And President Bush did not have a good night. And he practically has to go in and hit a homerun now for him to really be able to say that he's done in these debates what he needs to do.

BUCKLEY: And while the next debate will include domestic policy issues, foreign policy questions will also be asked in the town meeting format. And Kerry advisers believe the report that went to Congress yesterday indicating Saddam Hussein did not have WMD stockpiles at the time of the invasion will have a featured role in the debate.

MCCURRY: This is a damning report. It's one that will probably dominate a lot of the discussion of foreign policy because it casts such a negative comment about the reasons in which the administration said to America we were going to war.

(END VIDEOTAPE)

BUCKLEY: And the debate prep taking place here at this hotel in a converted ballroom, converted into a town hall-style setting. Greg Craig, the former Clinton administration attorney, playing the role of President Bush. Campaign staffers playing the roles of audience members who are going to be asking the questions in this debate. Later today, Senator Kerry travels to St. Louis -- Rick.

SANCHEZ: Frank Buckley in Colorado. Thanks a lot, Frank.

President Bush is campaigning today before he heads to St. Louis. Elaine Quijano is at the White House. She's following this for us.

Good morning, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Rick.

President Bush heads to the key battleground state of Wisconsin before moving on to Missouri ahead of tomorrow's debate. The president today is expected to continue with his stepped-up attacks against Senator John Kerry. It was yesterday during two campaign stops, one in Pennsylvania, the other in Michigan, that the president ratcheted up his comments, delivering a blistering assault on Kerry's record.

The president called the senator a tax-and-spend liberal. And on the issue of terrorism, Mr. Bush said Kerry's policies would weaken America and make the world more dangerous. Now, the president did not mention that CIA report which found no weapons of mass destruction in Iraq when the U.S. invaded last year. That, of course, was the administration's main rational for going to war. Instead, Mr. Bush repeated his argument that taking Saddam Hussein out of power has made the world safer.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There was a risk that Saddam Hussein would pass weapons or materials or information to terrorist networks. In the world after September the 11th, that was a risk we could not afford to take.

(END VIDEO CLIP)

QUIJANO: Now, administration officials say they believe the report shows that Saddam Hussein, Iraq was a threat that the United States needed to take seriously. That Saddam Hussein had the intention and capability to develop weapons of mass destruction.

Meantime, as we said, the president heading on to Wisconsin, Wasau, Wisconsin, for an event there. And then going on to Missouri. Aides are being tight-lipped about what the president might be doing differently this time around to prepare for the second debate -- Rick.

SANCHEZ: All right, Elaine. Thanks so much for that report.

We should remind you that you can watch tomorrow's debate right here on CNN. Our prime-time coverage, as you've come to expect, begins at 7:00 Eastern -- Heidi.

COLLINS: Now to Iraq and the political fallout from a new CIA report that says there were no WMD stockpiles in Saddam Hussein's Iraq at the time of the U.S. invasion. David Kay is a former chief U.S. weapons inspector in Iraq.

(BEGIN VIDEOTAPE)

COLLINS: The Bush-appointed weapons hunter, if you will, Charles Duelfer, said that the United States was almost all wrong on Iraq. What is new in this report that we're seeing?

DAVID KAY, FMR. CHIEF U.N. WEAPONS INSPECTOR: Well, I think in terms of lines of analysis, conclusions, there's nothing new. There's new evidence. And particularly important, I think, is the evidence with regard to how Saddam beat the sanction regime and the participation of European, former Soviet Union countries and China in helping ship prohibited goods to them. That's new, and that's important data, because it relates to other countries that maybe are trying to develop weapons of mass destruction.

COLLINS: Right. In fact, President Bush said yesterday that there was a real risk that Saddam Hussein could pass along this information to other terrorist networks. And Secretary of State Colin Powell also said this. Let's listen in. I'll get your comment on the backside here. (BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: If anybody wants to bet that when he finally got out from under those sanctions he would not have returned to development of weapons of mass destruction and their production, that's a bet that the president of the United States was not going to take.

(END VIDEO CLIP)

COLLINS: So while Charles Duelfer did report that there were no weapons of mass destruction, he did say that Saddam Hussein aspired to make nuclear weapons. Do you agree? Was this a risk?

KAY: Well, I think he did it, aspired to make weapons. I'm worried that you make too much out of that, because as the Duelfer report said, and as we found earlier, we found no actual plans to resume weapons of mass destruction production.

The more serious danger is, I think, the one the president pointed to. And that's that in the environment of corruption and decay that was Iraq during the last five years, there was a real danger not so much that Saddam would pass along the secrets of weapons of mass destruction, but scientists and engineers in their desperate desire to better themselves, to keep their families alive, might well have sold those secrets.

COLLINS: Also, a "Washington Post" editorial today in the paper that points out that no president really could have known then what we know now, if you will. Do you agree with that? That as long as Saddam Hussein remained in power, there really was no way to know whether or not he had those weapons?

KAY: It's absolutely true that you couldn't have known what we knew then. We have now for about 18 months had 1,700 very good and capable inspection personnel running over Iraq to the extent they can in the deteriorating security service.

I think, however, we could have known more than we did know. And quite frankly, I think the most meaningful conclusion of the Duelfer report is the failure of our intelligence services and the intelligence services of other western countries. We need to take that lesson to heart so our next president does not have to go through the same trauma that this one has, when you turn out your reasons for going to war to be so different than the actual facts.

(END VIDEOTAPE)

COLLINS: Former chief U.S. weapons inspector David Kay this morning.

The CIA report also paints a surprising picture of Saddam Hussein. Since last December, the former dictator has been held in isolation, revealing himself to a single debriefer. The report shows he helped for improved relations with the U.S. despite sanctions, weapons inspections and no-fly zones. Saddam is fond of American movies and literature. And one of his favorite books, Hemingway's "The Old Man and the Sea."

But he feared a U.S. attack, and says he only used a phone twice after 1990 to avoid being found. Among the more bizarre things to come out of the report, Saddam Hussein built a special laboratory to test his food before eating it -- Rick.

SANCHEZ: Let's take you now to a man who knew what he knew then and knows what he knows now, as well. Chad Myers at the CNN Center with the very latest forecast.

(WEATHER REPORT)

COLLINS: Still to come this morning, lost your cell phone and now you may not have to worry, though, about losing all of those numbers inside of it. This is great, because I'm on like cell phone number three.

SANCHEZ: Should Americans be allowed to see the coffins of soldiers that have been killed in Iraq? Well, we're going to ask one man why he's going to go to court over this question.

COLLINS: And Howard Stern takes his show to satellite radio. He's pretty serious about it, too. We're going to talk with Sally Jessy Raphael, her feelings about it, coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

SANCHEZ: And we welcome you back to AMERICAN MORNING. I'm Rick Sanchez, sitting in for Bill.

To hear Howard Stern tell it, his move to satellite is going to make government-regulated commercial radio, or commercial broadcasts obsolete.

(BEGIN VIDEO CLIP)

HOWARD STERN, RADIO TALK SHOW HOST: This marks the death of AM and FM radio. I guarantee it. I put my money where my mouth is.

(END VIDEO CLIP)

SANCHEZ: Now he's getting a lot of that money, too. The popular shock jock has struck a five-year, multi, multi, multi, multi, multimillion dollar deal with Sirius. That's essentially satellite radio. It begins in January of 2006.

Joining us now with her reaction is a radio pioneer, veteran talk show host sally Jessy Raphael.

Boy, it's so good to have you here.

SALLY JESSY RAPHAEL, FMR. TALK SHOW HOST: Thank you. Good morning to you. SANCHEZ: He says he's going to revolutionize this industry.

RAPHAEL: I love his ego.

SANCHEZ: Put people like you in the past.

RAPHAEL: Darn right. Not me? I'm in the future. I'm ahead of him. He's on satellite and I'm on the Internet.

SANCHEZ: Wow.

RAPHAEL: That's the -- hose two are going to be the future. First, let me say that it's really big news in the radio world. What he did is a win-win for him, for Sirius, and not particularly a loss for landline radio. Not particularly.

SANCHEZ: Landline radio, you mean commercial broadcast?

RAPHAEL: Yes.

SANCHEZ: And what we listen to on our car radios?

RAPHAEL: Yes.

SANCHEZ: Why not? Everybody else is saying that if satellite radio takes off, and if he's willing or able to bring his million-plus viewers over, that's going to be the death knell for these guys. You say no?

RAPHAEL: Oh, come on, really. He's one guy. Two hundred million people tune in to regular, if you call it regular, radio every day.

SANCHEZ: So are we overblowing this?

RAPHAEL: Well, 200 million. And both satellite companies have three million? And the one he's on has a half a million?

SANCHEZ: They're paying this guy, Sally, something like $100 million.

RAPHAEL: No, no. No they're not.

SANCHEZ: No?

RAPHAEL: No. They're going to give him -- I don't know the deal. You don't know the deal. I really wish I could have looked at it.

SANCHEZ: Those are the numbers being thrown out. Something like up to $100 million overs next five or 10 years.

SANCHEZ: OK. Here's the way it's going to work.

He's going to get probably stock or one or two stations. In other words, he's going to be an owner of that thing, because it's really good for Sirius that he has done that.

Up until, say, yesterday, most people said, "Well, what is satellite radio?" Now they know what satellite radio is.

SANCHEZ: Right.

RAPHAEL: So it put them on the map. Can they afford to pay him all that in cash? Even maybe if he brings in one million people.

If he's got 12 million listeners, he can bring in one million people, cause them to pay $150 a year, plus the equipment. Now you have to think, I love Howard Stern, but am I going to love him enough for $150 a year?

And I think it's doable. I think he'll get the million people. They'll have the money.

They'll give it to Howard. He'll have ownership. You see, unlike television, in radio, the minute you close your mouth, you don't own anything.

SANCHEZ: Right.

RAPHAEL: There's nothing. There's no residuals. That's the best way to explain it.

SANCHEZ: I'm just curious, $12.50 is what people pay a month?

RAPHAEL: Thirteen dollars a month on Sirius, $10 a month on XM.

SANCHEZ: If he doesn't get that commitment from that many people who are going to follow him, then this thing won't work?

RAPHAEL: They won't pay -- he won't be as financial. It's worked.

SANCHEZ: Yes.

RAPHAEL: He put them on the map. It's worked.

SANCHEZ: Yes.

RAPHAEL: It's done.

SANCHEZ: But he put them on the map. But it's one thing to have a nice commercial. It's another thing to actually have a product.

RAPHAEL: Yes, right.

SANCHEZ: That people are tuning in to and coming to.

RAPHAEL: Right.

SANCHEZ: Will that happen?

RAPHAEL: Yes. He'll get -- I believe it's good. I believe he'll get the million.

SANCHEZ: Wow. Is this going to be the place where we see this kind of show?

RAPHAEL: Well, now, look, he's right in that the radio today is pretty well, as we know it, is pretty well doomed. It's going to go to what I'm doing: sally -- sj - s...

SANCHEZ: There you go. I know you can do this. Here, I'll hold your hand. Go.

RAPHAEL: Carl (ph), help me.

UNIDENTIFIED MALE: SallyJR.com.

RAPHAEL: SallyJR.com. That's the big hit. That's where it's really going to be. Because you're all over the world with that.

Satellite has a footprint. You can only be in satellite from, say, Alaska to the end...

SANCHEZ: From the heel to the toe?

RAPHAEL: Yes, exactly. So...

SANCHEZ: We're out of time, Sally. Thanks so much for coming by.

RAPHAEL: Thank you very much.

SANCHEZ: I've been waiting to have this conversation with you.

RAPHAEL: Nice to talk to you.

SANCHEZ: Appreciate it.

Heidi, back over to you.

COLLINS: Still to come this morning, some Democrats worried about an October surprise. That can make all the difference in November.

Plus, a new cell phone service that could really make the best of a bad situation. Andy Serwer has that coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Thank goodness for commercials. You just missed the cheesiest joke.

Anyway, giving a Wall Street preview now. And if you lose your cell phone, there's a new way to salvage the phone numbers on it. Good news for some of us who are forgetful. Andy Serwer "Minding Your Business," looking at the market first. ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Yes. Futures are looking a little bit lower this morning, Heidi. And jobless claims coming in for the last week were actually pretty good.

Big jobs report, though, is tomorrow. So we're probably going to be just treading water today.

And let's see, one stock we're going to be watching this morning is Zales, reporting that their numbers are looking kind of weak going forward. And you're never going to guess why.

COLLINS: Why?

SERWER: They're blaming it on the hurricanes.

COLLINS: Really?

SERWER: Yes. I guess it sort of makes sense. You know, you get your condo knocked down, you're not going to go out and buy a diamond.

On the other hand, a diamond is not really a discretionary thing. In other words, you're going to get married next month, you're going to go out and buy a diamond. So always a little mysterious here.

SANCHEZ: How many of the stores, though, were knocked down or knocked out?

SERWER: Well, you know, they've got a bunch of them in Florida. But it's a national chain.

SANCHEZ: Right.

SERWER: So, you know, they say that's the problem.

COLLINS: It's the anniversary ring that you're not getting this year.

SERWER: That's true. Maybe there's some discretion there.

Let's talk a little bit about this cell phone story. You know, if you've ever lost your cell phone, it's a pain in the neck. And one of the biggest reasons why is because you probably have all your phone numbers stored there in your phone book, your phone directory, and they're gone. A lot of people, of course, don't carry those paper directories anymore, file faxes (ph).

Now Verizon has a new service where you can pay them $2 a month, and they'll store the phone numbers on their database. Isn't that a handy, dandy thing?

You just punch in a little thing on the phone and it zaps it back to good old Verizon's database. Kind of a nice service. Kind of a little big brothery, though, don't you think?

Nextel has got one like that, too. And there's an interesting one by an Australian firm where you don't pay monthly. But if you lose the numbers, then you pay them a fee when they've got you over a barrel. So interesting kind of wrinkle.

COLLINS: It seems a little bit better, though.

SERWER: Yes, could be.

COLLINS: All right. Thanks so much, Andy.

SERWER: You're welcome.

SANCHEZ: All right. Let's go now to the other Andy -- Mr. Borowitz.

ANDY BOROWITZ, BOROWITZREPORT.COM: I want to store all my phone numbers in Australia now. That would rock.

SERWER: G'day, Andy.

BOROWITZ: All right.

SANCHEZ: What are you going to be talking about?

BOROWITZ: Well, the Nobel Peace Prize is going to be announced tomorrow. And we've been asking you to be Nobel Peace Prize judges for the day and tell us who has been advancing the cause of peace in the year just passed. So our question to you today is who should win the Nobel Peace Prize and why?

Well, Gail writes, "Dennis Kucinich. Although the media marginalized him and his stands on health care, Iraq and the department of peace, it seems he had everything right."

Now this refers to a story we've already done today.

SERWER: He was my pick.

BOROWITZ: Your pick?

SERWER: Yes.

BOROWITZ: Mel writes, "The Nobel Peace Prize" should go to the newly feathered tyrannosaur, as we showed. He used to be a real terror a while back, but over the last year he's been very, very peaceful."

COLLINS: Is that the...

(CROSSTALK)

BOROWITZ: All right. Charlie -- Charlie from Ontario says, "Ben and J. Lo should get the Nobel Peace Prize. As soon as they broke up, we had peace and quiet. I hope Britney wins next year."

SERWER: Yes.

COLLINS: Oh, that was my pick.

BOROWITZ: Well there you go. Sorry, Heidi.

SERWER: Great minds.

BOROWITZ: Great minds.

Susan from New Brunswick, Canada, writes: "Senator John McCain for avoiding an American civil war by refusing to be John Kerry's running mate."

So there you go.

SANCHEZ: That's a nice plethora of answers, huh?

BOROWITZ: Absolutely.

COLLINS: I was going to say Britney Spears because, you know, all those marriages, trying to create a little peace, and then prenup for the next one.

BOROWITZ: That's right.

COLLINS: The most recent one. You know, it was very nice of her.

BOROWITZ: I think I would say either Britney or ElBaradei -- one of those two.

SANCHEZ: For not changing his hair color.

COLLINS: Clearly in the same category. All right, Andy, thanks for that.

Still to come this morning, an October surprise could events -- could change events, that is, whether orchestrated or unforeseen. Could they tip the balance in the presidential election? We'll talk about it coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

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