Return to Transcripts main page

CNN Live At Daybreak

Reports on the Egypt Resort Bombings; Kerry, Bush Prepare for Second Presidential Debate; Kenyan Environmentalist Wins Nobel Peace Prize

Aired October 08, 2004 - 06:00   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 LIN, CNN ANCHOR: All right, it is going to be Friday night, coming up shortly, after we get through the entire day.
In the meantime, we've got some news to report of terrorism.

Bombings at Egyptian resorts leave about two dozen dead, and the total is expected to rise.

It is Friday, October 8, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Carol Lin in for Carol Costello this morning.

Right now in the news -- for the first time ever, an African woman has been awarded the Nobel Peace Prize. She's Kenyan Deputy Environment Minister Wangari Maathai. And her work resulted in the planting of more than 30 million trees across Africa.

An investigation is under way right now in Paris after a bomb went off in front of the Indonesian embassy. Ten people were slightly wounded in that blast and officials say they didn't get any advanced warnings about the threats against that embassy.

A hospital official says the latest U.S. air strike in Fallujah kills 14 people. A doctor says a wedding party was hit. The U.S. military says the target was a terrorist safe house.

And tonight's the night George Bush and John Kerry go for round two of the presidential debate. This time it's going to be a town hall style meeting in St. Louis, Missouri. CNN's live debate coverage starts at 7:00 p.m. Eastern -- Chad, Chad, Chad, is it the weekend upon us.

CHAD MYERS, CNN METEOROLOGIST: Well, it's good news for some, bad news for others who want to get out.

(WEATHER REPORT)

LIN: In the meantime, we had a lot of violence to report overnight.

In Egypt, about two dozen people have been killed by terrorist bombs at Red Sea resorts and 30 others are missing. CNN's John Vause is at the Taba Crossing on the Egypt-Israeli border -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Carol.

Israeli officials say 35,000 Israelis were vacationing in the Taba area for the Jewish holiday, Sukkot. They've been making their way across the border now for 14 hours since that first blast. Thousands of them now, about 25,000, have crossed, leaving about 10,000 still on the Egyptian side.

There's also been a lot of traffic here, Carol, of heavy earth moving equipment, as well as ambulances being sent from the Israeli side to Taba to help in that search and rescue of the people who are still believed to be trapped beneath the rubble of the Hilton Hotel.

There is an estimate of around 20 people considered missing still. The death toll now stands at around 26. But that seems far from certain. We're hearing a number of different figures coming from the Egyptian government and also the Israeli government, as well. A hundred and 20 people were wounded. Most of them were treated in hospitals here in Israel and have since been released.

Now, one of the problems that the Israelis have had has been negotiating with the Egyptian government to get that heavy earth moving equipment into Taba to help in that search and rescue effort. Apparently, according to people we've spoke to us, they've been making their way across the border. The Egyptians had no equipment there to lift heavy rubble, none of that heavy earth moving equipment, which we've seen crossing this border for the last few hours.

It was held up for about 11 hours before it got onto the scene. A number of the rescue workers that we spoke to have expressed their frustration. The Israeli government has described it simply as a bureaucratic hassle.

Now, we have heard from a number of senior Israeli government ministers who have told us that they believe that this terrorist attack has all the hallmarks of an al Qaeda attack. That is their opinion. They have no specific evidence to back it up. They're not ruling out, though, that it could possibly, possibly be one of the Palestinian militant groups like Hamas, Islamic Jihad. There has been an ongoing operation by the Israelis in the Gaza Strip for the last 10 days or so now, resulting in a very high Palestinian death toll.

But it seems that the scope and the coordination of this attack certainly lends itself to an al Qaeda-style terrorist attack -- Carol.

LIN: All right, thank you very much.

John Vause on the border between Israel and Egypt.

All right, it's now 25 days until election day and the race for the White House is getting a lot tighter. Both candidates are hoping that tonight's debate can help swing some votes in key swing states. President Bush finished up his campaigning in Wisconsin before heading to St. Louis for that debate tonight.

Now, Wisconsin is one of the states in a statistical dead heat. And our CNN/"USA Today"/Gallup poll shows that voters give the president a slight advantage of 3 points. Colorado has nine electoral votes up for grabs and an even tighter race. John Kerry and George Bush are neck and neck. So now you see why both candidates are choosing their words very carefully as they prepare to meet for the second time.

We have two reports this morning.

Senior political correspondent Candy Crowley is traveling with Senator Kerry.

But first, we're going to start with White House correspondent Suzanne Malveaux.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): Despite the administration's own findings that Iraq had no weapons of mass destruction at the time of the U.S. invasion, its principal rationale for going to war, President Bush used selected portions of that report to defend his decision to go after Saddam Hussein.

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: I believe we were right to take action and America is safer today with Saddam Hussein in prison. He retained the knowledge, the materials, the means and the intent to produce weapons of mass destruction, and he could have passed that knowledge on to our terrorist enemies.

MALVEAUX: As in the past, the president blamed the weapons miscalculation on faulty intelligence.

BUSH: At a time of many threats in the world, the intelligence on which the president and members of Congress base their decisions must be better, and it will be.

MALVEAUX: The debate over who is best fit to lead as commander- in-chief in the global war on terror is emerging as the centerpiece of the campaign. At a rally in the battleground state of Wisconsin, Mr. Bush used Kerry's own words from a Senate speech two years ago supporting the war to illustrate what the president calls his opponent's inconsistencies on Iraq.

BUSH: He himself cited the very same intelligence about Saddam's weapons programs as the reason he voted to go to war. Today my opponent tries to say I made up reasons to go to war. Just who is the one trying to mislead the American people?

MALVEAUX (on camera): Bush aides say that part of the president's strategy for a second debate with Kerry on Friday is to use his opponent's own words and record against him, to paint Kerry's policies as bad for the economy and dangerous to national security.

Suzanne Malveaux, CNN, Wausau, Wisconsin. (END VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): Ask if George Bush deliberately lied about the threat of Saddam and John Kerry says he has never used that word, though he is all but there.

SEN. JOHN KERRY, DEMOCRATIC PRESIDENTIAL NOMINEE: We remember the pieces of evidence, like aluminum tubes and Niger yellow-cake uranium, that were laid out before us, all designed, all purposefully used to shift the focus from al Qaeda, Osama bin Laden, to Iraq and Saddam Hussein.

CROWLEY: If the president sees the intelligence report as a glass half full, the senator sees it as completely empty and more fodder for his twin themes of the fall campaign, that the president neither tells the truth nor grasps reality.

KERRY: I don't know what I'm going to find on January 20, the way the president is going. If the president just does more of the same every day and it continues to deteriorate, I may be handed Lebanon, figuratively speaking.

CROWLEY: Kerry, who voted for the Iraq resolution, has referred to Saddam as a terrorist and a threat, and as recently as last December said the U.S. might yet find weapons of mass destruction. But Kerry says the report showing there were no WMD is proof the administration inflated the threat.

KERRY: The president shifted the focus from the real enemy, al Qaeda and Osama bin Laden, to an enemy that they aggrandized and fictionalized.

CROWLEY: The Democratic candidate also told reporters the president's lack of candor extends to the state of domestic issues as well.

(on camera): The lift inside the Kerry campaign is palpable. They go into this St. Louis debate on the upswing, if not on top. There is not even the pretense of nervousness. As one Kerry strategist put it, this debate is more about the president.

Candy Crowley, CNN, St. Louis.

(END VIDEOTAPE)

LIN: And Paul Bremer, remember him, the representative to Iraq? He wants to set the record straight. The former top civilian administrator in Iraq was quoted earlier this week as saying the U.S. didn't have enough troops in Iraq to do the job. But he says his remarks were taken out of context.

In an op-ed piece for the "New York Times," Paul Bremer admits he had disagreements with military commanders. But he also says President Bush made a correct and courageous decision to liberate Iraq from Saddam Hussein's brutality and that the president is correct to see the war in Iraq as a central front in the war on terrorism.

All right, stay with CNN for in depth coverage of tonight's presidential debate. Our prime time lineup begins at 7:00 p.m. Eastern with a special edition of "ANDERSON COOPER 360." And that's followed by "PAULA ZAHN NOW" at 8:00. Wolf Blitzer then hosts a pre- debate special at 8:30 and the candidates get down to business at 9:00.

In the meantime, it is another one for the record books as oil closes higher for the third time in three days. And American consumers begin to feel the squeeze. Carrie Lee has those details in three minutes.

And then at 15 past the hour, a closer look at this morning's Nobel Peace Prize winner. We're going to hear from Wangari Muta Maathai's daughter when we come back.

And at 20 past, the clock is ticking for Martha Stewart's surrender. We're going to go live to West Virginia to see how Alderson is preparing for its high profile guest.

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

(COMMERCIAL BREAK)

LIN: Well, another day, another record for oil prices. When are they going to stop rising?

Carrie Lee reports.

She's at the Nasdaq market site in Times Square -- gee, at last count, Carrie, I was, I heard, what, $52 a barrel.

It's gone higher?

CARRIE LEE, CNN CORRESPONDENT: Well, it was higher yesterday, Carol, in fact, touching on $53 a barrel. Of course we're talking about U.S. crude futures here for the November contract, closing out, settling out yesterday at $52.67. This on news of a strike in Nigeria and concerns over low winter heating fuel supplies.

Now, early this morning in electronic trading, oil has come down a bit, to $52.04 a barrel. This after Nigerian unions called off that unscheduled workout -- walkout, rather. And so as a result, the stock futures are looking higher. We've seen this inverse relationship between oil prices and stock prices lately. So lower oil, higher stock action expected today.

Also, we're going to be keeping an eye on ALCOA. The first Dow component to report profits for Q3 came out with their numbers last night. Actually missed the Wall Street estimate by $0.01 a share. A couple of concerns here -- high metal prices, offset by high costs regarding labor disruptions and damage from hurricane Ivan. So ALCOA was losing ground in the after hours session last night. We'll see what it does today. Also, G.E. coming out later this morning, Carol, with its numbers. And, of course, we have the big September jobs report and a lot of people following that. I'll have more details on the September employment rate coming up in about 30 minutes -- back to you.

LIN: All right, so what about the futures, Carrie?

LEE: Yes...

LIN: How's the market shaping up?

LEE: Futures are looking good. Futures are looking good. Interesting, because with oil prices higher yesterday, we saw the markets lose ground. In fact, the Nasdaq broke a five day -- a seven day, excuse me -- winning streak, actually closing lower yesterday by 22 points, a loss of over 1 percent. The Dow down over 100 points. But we could see a rebound today. But, of course, a lot is going to depend on those jobs numbers coming out later.

LIN: You bet.

All right, thanks, Carrie.

Your news, money, weather and sports.

It is now 17 past the hour and here's what's all new this morning.

In Egypt, more than two dozen people have been killed by terrorist bombs at three Red Sea resorts. A number of others are listed as missing, which means the death toll is probably going to rise.

And in Paris, a bomb went off in front of the Indonesian embassy, slightly wounding 10 people. Officials say they didn't get any advanced warnings about the threats against the embassy.

And in money, Bank of America is cutting another 4,500 jobs beginning this month. The company says the moves are necessary to streamline operations. They've cut 17,000 jobs since finalizing their acquisition of Fleet Bank earlier this year.

And in culture, breaking news -- Britney Spears may really have been married, or at least she is now. The singer's spokesperson says all the proper paperwork has been officially filed to make her marriage legal. The wedding ceremony for Spears and hubby Kevin Federline was conducted last month in Los Angeles.

And in sports, the Cardinals have a commanding lead in their series against the Dodgers. St. Louis beat L.A. 8-3 to take a 2-0 lead. Game three will be in Los Angeles tomorrow night.

And will it be baseball weather -- Chad.

MYERS: It looks good. I mean L.A., how do you get better weather than L.A.? LIN: Oh, don't remind me.

MYERS: There's a cold front coming through Seattle, but that rain is never going to get down to L.A.

(WEATHER REPORT)

LIN: Well, the surprise winner of this year's Nobel Peace Prize was just named over an hour ago and for the first time, it's an African woman, Kenyan activist Wangari Maathai.

Her daughter, Wangira Maathai, joins me now live from Nairobi.

Wangira?

Can you hear me?

WANGIRA MAATHAI: Yes, Carol? How are you?

LIN: Oh, I'm doing just fine. And it's Wangira, right?

MAATHAI: Yes, Wangira.

LIN: Wangira.

All right, well, congratulations to you, your family and especially to your mother.

How did you hear the news?

MAATHAI: Well, we heard -- I heard it on CNN, as a matter of fact, thank you very much.

LIN: Excellent.

And your reaction? I mean was this expected on your part?

MAATHAI: Of course not. It was not expected at all. It was just really a great surprise. We are celebrating. You know, it really brings a lot of emotions back to us. So it's a wonderful moment.

LIN: We're showing some of the headlines on our air in the newspapers about your mother and her activism and, frankly, the price that she had paid during her lifetime. I mean this is a woman who took a stand that the environment has a direct connection to how well a country's people do, how well sustained -- peace can be sustained in a registration.

MAATHAI: Precisely, Carol. I always remember how she always used to say that if you go to a country and look at the state of the environment, it tells you a lot about the state of that country's governance, economics and all that. And that, the environment is a great indicator of all, of the status of a country.

So the environment has always taken center stage. She has a deep commitment and certainly convictions that what she's doing is right.

LIN: So she started this Green Belt Movement all the way back in 1977. It's responsible for planting some, what, 20 million trees, 20 to 30 million trees in Africa.

MAATHAI: Exactly.

LIN: And by doing so, does she feel that she's really made a difference?

MAATHAI: I think she does. I think one of the most important things for her is that the environmental consciousness of our country has been risen. And that's a direct result of some of the things that you've mentioned, about some of the very difficult moments in the '80s and the '90s, when, you know, she was being beaten and still standing for what she believed was right regardless of how many other people believed it with her.

And I think that deep conviction is what drives her.

LIN: Wangira, was she ever scared in her work? I mean she actually took on, directly took on the former president of Kenya, Daniel Arap Moi over this skyscraper project that was going to be built in the middle of Uhuru Park.

MAATHAI: Yes, she usually will say, you know, ask -- we've asked her many times, were you scared, because I certainly was, Carol. So I've asked her how, you know, weren't you scared. And she says, you know, in the moment you're not. But when you reflect and you realize what you are doing and the harm that it could put you in when you're lying in that bed, there are moments when you realize that what you're doing is dangerous.

But there are also moments that for her come stronger, that voice that she says that's inside that tell you that what you're doing is the right thing and perhaps you're the only one who hears that voice. And so you have a responsibility to react.

And so she -- I'm sure she was scared, Carol.

LIN: Wangira, real quick, how are you guys going to celebrate?

MAATHAI: Well, let me tell you, the celebration started right now. So we are starting to celebrate. I'm sure it will go through the night. But you're welcome.

LIN: All right, well, first plane out.

But thank you very much, Wangira Maathai, the daughter of Wangari Maathai, the winner of the 2004 Nobel Peace Prize.

Congratulations.

Well, and another woman with a very different set of fortunes right now. These are Martha Stewart's last hours of freedom, at least for a while. Up next, we're going to look at the town and the prison that's going to be housing her for the next five months.

From Atlanta, this is DAYBREAK for a Friday morning.

(COMMERCIAL BREAK)

LIN: All right, this is it, Martha Stewart is going to prison today. She is expected to arrive at her new home around 2:00 this afternoon. Now, home is the women's correctional facility in Alderson, West Virginia, in a town of just over 1,000 people.

CNN's Deborah Feyerick has more on her new residence -- we're talking about Martha's new residence -- and the details on her first meal.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Martha Stewart went off in style, jetting to a fancy beach resort in the Bahamas over the weekend to celebrate the wedding of her longtime publicist. Back in New York, Stewart has been at her office working, spending nights at home in Westport, Connecticut. She skipped Thursday's big wedding reception tonight at the Four Seasons; instead, spending time getting ready to surrender.

The Appalachian leaves are just beginning to change color. And because it's convention season in Greenbrier, West Virginia, the local airport where Stewart will likely arrive has been hopping.

JERRY O'SULLIVAN, MANAGER, GREENBRIER VALLEY AIRPORT: We do a lot of celebrities. And what we want to do is we want to be a very slick, comfortable, easy in, easy out airport for celebrities. And it's just one more celebrity who has a place to go to.

FEYERICK: As Stewart turns onto the road leading to the prison, she'll see a sign about the history of the place and a handful of campaign placards, though as a felon Stewart can't vote in this election.

UNIDENTIFIED FEMALE: Martha!

FEYERICK: She also can't do any business once she's inside. All phone numbers must be approved and her letters may be screened. And if she violates any of the rules, she'll be disciplined -- her commissary or phone privileges taken away.

In town, the buzz is all about Martha -- T-shirts selling for 17 bucks and parking places for media trucks up for sale.

UNIDENTIFIED FEMALE: We haven't had as much excitement in this town since John Kennedy was running for president and came here and visited the local high school.

FEYERICK (on camera): Once Stewart arrives at the gates, she'll be escorted into the prison to the receiving unit. There she will be photographed, fingerprinted and strip searched for contraband. She will be issued a prison uniform and assigned a bunk. And after settling in, she'll have dinner. CNN has learned the first meal will be baked fish, black-eyed peas and Jell-O for dessert.

Deborah Feyerick, CNN, Alderson, West Virginia.

(END VIDEOTAPE)

LIN: All right, in other news, it's been a violent 12 hours in much of the world tonight.

Up next, we're live in Taba, Egypt, where the rescue and recovery efforts continue after explosions at Red Sea resorts.

And we're also live in Paris, where investigators are searching for clues into this morning's blast there.

This is DAYBREAK on CNN.

Please stay with CNN for complete coverage of tonight's debate. We're going to gauge the reactions of a group of undecided voters live during the debate. Plus, we're live in the post-debate spin rooms. Trust CNN for complete live coverage of the presidential debate tonight, beginning at 7:00 p.m. Eastern.

(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


Aired October 8, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: All right, it is going to be Friday night, coming up shortly, after we get through the entire day.
In the meantime, we've got some news to report of terrorism.

Bombings at Egyptian resorts leave about two dozen dead, and the total is expected to rise.

It is Friday, October 8, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Carol Lin in for Carol Costello this morning.

Right now in the news -- for the first time ever, an African woman has been awarded the Nobel Peace Prize. She's Kenyan Deputy Environment Minister Wangari Maathai. And her work resulted in the planting of more than 30 million trees across Africa.

An investigation is under way right now in Paris after a bomb went off in front of the Indonesian embassy. Ten people were slightly wounded in that blast and officials say they didn't get any advanced warnings about the threats against that embassy.

A hospital official says the latest U.S. air strike in Fallujah kills 14 people. A doctor says a wedding party was hit. The U.S. military says the target was a terrorist safe house.

And tonight's the night George Bush and John Kerry go for round two of the presidential debate. This time it's going to be a town hall style meeting in St. Louis, Missouri. CNN's live debate coverage starts at 7:00 p.m. Eastern -- Chad, Chad, Chad, is it the weekend upon us.

CHAD MYERS, CNN METEOROLOGIST: Well, it's good news for some, bad news for others who want to get out.

(WEATHER REPORT)

LIN: In the meantime, we had a lot of violence to report overnight.

In Egypt, about two dozen people have been killed by terrorist bombs at Red Sea resorts and 30 others are missing. CNN's John Vause is at the Taba Crossing on the Egypt-Israeli border -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Carol.

Israeli officials say 35,000 Israelis were vacationing in the Taba area for the Jewish holiday, Sukkot. They've been making their way across the border now for 14 hours since that first blast. Thousands of them now, about 25,000, have crossed, leaving about 10,000 still on the Egyptian side.

There's also been a lot of traffic here, Carol, of heavy earth moving equipment, as well as ambulances being sent from the Israeli side to Taba to help in that search and rescue of the people who are still believed to be trapped beneath the rubble of the Hilton Hotel.

There is an estimate of around 20 people considered missing still. The death toll now stands at around 26. But that seems far from certain. We're hearing a number of different figures coming from the Egyptian government and also the Israeli government, as well. A hundred and 20 people were wounded. Most of them were treated in hospitals here in Israel and have since been released.

Now, one of the problems that the Israelis have had has been negotiating with the Egyptian government to get that heavy earth moving equipment into Taba to help in that search and rescue effort. Apparently, according to people we've spoke to us, they've been making their way across the border. The Egyptians had no equipment there to lift heavy rubble, none of that heavy earth moving equipment, which we've seen crossing this border for the last few hours.

It was held up for about 11 hours before it got onto the scene. A number of the rescue workers that we spoke to have expressed their frustration. The Israeli government has described it simply as a bureaucratic hassle.

Now, we have heard from a number of senior Israeli government ministers who have told us that they believe that this terrorist attack has all the hallmarks of an al Qaeda attack. That is their opinion. They have no specific evidence to back it up. They're not ruling out, though, that it could possibly, possibly be one of the Palestinian militant groups like Hamas, Islamic Jihad. There has been an ongoing operation by the Israelis in the Gaza Strip for the last 10 days or so now, resulting in a very high Palestinian death toll.

But it seems that the scope and the coordination of this attack certainly lends itself to an al Qaeda-style terrorist attack -- Carol.

LIN: All right, thank you very much.

John Vause on the border between Israel and Egypt.

All right, it's now 25 days until election day and the race for the White House is getting a lot tighter. Both candidates are hoping that tonight's debate can help swing some votes in key swing states. President Bush finished up his campaigning in Wisconsin before heading to St. Louis for that debate tonight.

Now, Wisconsin is one of the states in a statistical dead heat. And our CNN/"USA Today"/Gallup poll shows that voters give the president a slight advantage of 3 points. Colorado has nine electoral votes up for grabs and an even tighter race. John Kerry and George Bush are neck and neck. So now you see why both candidates are choosing their words very carefully as they prepare to meet for the second time.

We have two reports this morning.

Senior political correspondent Candy Crowley is traveling with Senator Kerry.

But first, we're going to start with White House correspondent Suzanne Malveaux.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): Despite the administration's own findings that Iraq had no weapons of mass destruction at the time of the U.S. invasion, its principal rationale for going to war, President Bush used selected portions of that report to defend his decision to go after Saddam Hussein.

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: I believe we were right to take action and America is safer today with Saddam Hussein in prison. He retained the knowledge, the materials, the means and the intent to produce weapons of mass destruction, and he could have passed that knowledge on to our terrorist enemies.

MALVEAUX: As in the past, the president blamed the weapons miscalculation on faulty intelligence.

BUSH: At a time of many threats in the world, the intelligence on which the president and members of Congress base their decisions must be better, and it will be.

MALVEAUX: The debate over who is best fit to lead as commander- in-chief in the global war on terror is emerging as the centerpiece of the campaign. At a rally in the battleground state of Wisconsin, Mr. Bush used Kerry's own words from a Senate speech two years ago supporting the war to illustrate what the president calls his opponent's inconsistencies on Iraq.

BUSH: He himself cited the very same intelligence about Saddam's weapons programs as the reason he voted to go to war. Today my opponent tries to say I made up reasons to go to war. Just who is the one trying to mislead the American people?

MALVEAUX (on camera): Bush aides say that part of the president's strategy for a second debate with Kerry on Friday is to use his opponent's own words and record against him, to paint Kerry's policies as bad for the economy and dangerous to national security.

Suzanne Malveaux, CNN, Wausau, Wisconsin. (END VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): Ask if George Bush deliberately lied about the threat of Saddam and John Kerry says he has never used that word, though he is all but there.

SEN. JOHN KERRY, DEMOCRATIC PRESIDENTIAL NOMINEE: We remember the pieces of evidence, like aluminum tubes and Niger yellow-cake uranium, that were laid out before us, all designed, all purposefully used to shift the focus from al Qaeda, Osama bin Laden, to Iraq and Saddam Hussein.

CROWLEY: If the president sees the intelligence report as a glass half full, the senator sees it as completely empty and more fodder for his twin themes of the fall campaign, that the president neither tells the truth nor grasps reality.

KERRY: I don't know what I'm going to find on January 20, the way the president is going. If the president just does more of the same every day and it continues to deteriorate, I may be handed Lebanon, figuratively speaking.

CROWLEY: Kerry, who voted for the Iraq resolution, has referred to Saddam as a terrorist and a threat, and as recently as last December said the U.S. might yet find weapons of mass destruction. But Kerry says the report showing there were no WMD is proof the administration inflated the threat.

KERRY: The president shifted the focus from the real enemy, al Qaeda and Osama bin Laden, to an enemy that they aggrandized and fictionalized.

CROWLEY: The Democratic candidate also told reporters the president's lack of candor extends to the state of domestic issues as well.

(on camera): The lift inside the Kerry campaign is palpable. They go into this St. Louis debate on the upswing, if not on top. There is not even the pretense of nervousness. As one Kerry strategist put it, this debate is more about the president.

Candy Crowley, CNN, St. Louis.

(END VIDEOTAPE)

LIN: And Paul Bremer, remember him, the representative to Iraq? He wants to set the record straight. The former top civilian administrator in Iraq was quoted earlier this week as saying the U.S. didn't have enough troops in Iraq to do the job. But he says his remarks were taken out of context.

In an op-ed piece for the "New York Times," Paul Bremer admits he had disagreements with military commanders. But he also says President Bush made a correct and courageous decision to liberate Iraq from Saddam Hussein's brutality and that the president is correct to see the war in Iraq as a central front in the war on terrorism.

All right, stay with CNN for in depth coverage of tonight's presidential debate. Our prime time lineup begins at 7:00 p.m. Eastern with a special edition of "ANDERSON COOPER 360." And that's followed by "PAULA ZAHN NOW" at 8:00. Wolf Blitzer then hosts a pre- debate special at 8:30 and the candidates get down to business at 9:00.

In the meantime, it is another one for the record books as oil closes higher for the third time in three days. And American consumers begin to feel the squeeze. Carrie Lee has those details in three minutes.

And then at 15 past the hour, a closer look at this morning's Nobel Peace Prize winner. We're going to hear from Wangari Muta Maathai's daughter when we come back.

And at 20 past, the clock is ticking for Martha Stewart's surrender. We're going to go live to West Virginia to see how Alderson is preparing for its high profile guest.

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

(COMMERCIAL BREAK)

LIN: Well, another day, another record for oil prices. When are they going to stop rising?

Carrie Lee reports.

She's at the Nasdaq market site in Times Square -- gee, at last count, Carrie, I was, I heard, what, $52 a barrel.

It's gone higher?

CARRIE LEE, CNN CORRESPONDENT: Well, it was higher yesterday, Carol, in fact, touching on $53 a barrel. Of course we're talking about U.S. crude futures here for the November contract, closing out, settling out yesterday at $52.67. This on news of a strike in Nigeria and concerns over low winter heating fuel supplies.

Now, early this morning in electronic trading, oil has come down a bit, to $52.04 a barrel. This after Nigerian unions called off that unscheduled workout -- walkout, rather. And so as a result, the stock futures are looking higher. We've seen this inverse relationship between oil prices and stock prices lately. So lower oil, higher stock action expected today.

Also, we're going to be keeping an eye on ALCOA. The first Dow component to report profits for Q3 came out with their numbers last night. Actually missed the Wall Street estimate by $0.01 a share. A couple of concerns here -- high metal prices, offset by high costs regarding labor disruptions and damage from hurricane Ivan. So ALCOA was losing ground in the after hours session last night. We'll see what it does today. Also, G.E. coming out later this morning, Carol, with its numbers. And, of course, we have the big September jobs report and a lot of people following that. I'll have more details on the September employment rate coming up in about 30 minutes -- back to you.

LIN: All right, so what about the futures, Carrie?

LEE: Yes...

LIN: How's the market shaping up?

LEE: Futures are looking good. Futures are looking good. Interesting, because with oil prices higher yesterday, we saw the markets lose ground. In fact, the Nasdaq broke a five day -- a seven day, excuse me -- winning streak, actually closing lower yesterday by 22 points, a loss of over 1 percent. The Dow down over 100 points. But we could see a rebound today. But, of course, a lot is going to depend on those jobs numbers coming out later.

LIN: You bet.

All right, thanks, Carrie.

Your news, money, weather and sports.

It is now 17 past the hour and here's what's all new this morning.

In Egypt, more than two dozen people have been killed by terrorist bombs at three Red Sea resorts. A number of others are listed as missing, which means the death toll is probably going to rise.

And in Paris, a bomb went off in front of the Indonesian embassy, slightly wounding 10 people. Officials say they didn't get any advanced warnings about the threats against the embassy.

And in money, Bank of America is cutting another 4,500 jobs beginning this month. The company says the moves are necessary to streamline operations. They've cut 17,000 jobs since finalizing their acquisition of Fleet Bank earlier this year.

And in culture, breaking news -- Britney Spears may really have been married, or at least she is now. The singer's spokesperson says all the proper paperwork has been officially filed to make her marriage legal. The wedding ceremony for Spears and hubby Kevin Federline was conducted last month in Los Angeles.

And in sports, the Cardinals have a commanding lead in their series against the Dodgers. St. Louis beat L.A. 8-3 to take a 2-0 lead. Game three will be in Los Angeles tomorrow night.

And will it be baseball weather -- Chad.

MYERS: It looks good. I mean L.A., how do you get better weather than L.A.? LIN: Oh, don't remind me.

MYERS: There's a cold front coming through Seattle, but that rain is never going to get down to L.A.

(WEATHER REPORT)

LIN: Well, the surprise winner of this year's Nobel Peace Prize was just named over an hour ago and for the first time, it's an African woman, Kenyan activist Wangari Maathai.

Her daughter, Wangira Maathai, joins me now live from Nairobi.

Wangira?

Can you hear me?

WANGIRA MAATHAI: Yes, Carol? How are you?

LIN: Oh, I'm doing just fine. And it's Wangira, right?

MAATHAI: Yes, Wangira.

LIN: Wangira.

All right, well, congratulations to you, your family and especially to your mother.

How did you hear the news?

MAATHAI: Well, we heard -- I heard it on CNN, as a matter of fact, thank you very much.

LIN: Excellent.

And your reaction? I mean was this expected on your part?

MAATHAI: Of course not. It was not expected at all. It was just really a great surprise. We are celebrating. You know, it really brings a lot of emotions back to us. So it's a wonderful moment.

LIN: We're showing some of the headlines on our air in the newspapers about your mother and her activism and, frankly, the price that she had paid during her lifetime. I mean this is a woman who took a stand that the environment has a direct connection to how well a country's people do, how well sustained -- peace can be sustained in a registration.

MAATHAI: Precisely, Carol. I always remember how she always used to say that if you go to a country and look at the state of the environment, it tells you a lot about the state of that country's governance, economics and all that. And that, the environment is a great indicator of all, of the status of a country.

So the environment has always taken center stage. She has a deep commitment and certainly convictions that what she's doing is right.

LIN: So she started this Green Belt Movement all the way back in 1977. It's responsible for planting some, what, 20 million trees, 20 to 30 million trees in Africa.

MAATHAI: Exactly.

LIN: And by doing so, does she feel that she's really made a difference?

MAATHAI: I think she does. I think one of the most important things for her is that the environmental consciousness of our country has been risen. And that's a direct result of some of the things that you've mentioned, about some of the very difficult moments in the '80s and the '90s, when, you know, she was being beaten and still standing for what she believed was right regardless of how many other people believed it with her.

And I think that deep conviction is what drives her.

LIN: Wangira, was she ever scared in her work? I mean she actually took on, directly took on the former president of Kenya, Daniel Arap Moi over this skyscraper project that was going to be built in the middle of Uhuru Park.

MAATHAI: Yes, she usually will say, you know, ask -- we've asked her many times, were you scared, because I certainly was, Carol. So I've asked her how, you know, weren't you scared. And she says, you know, in the moment you're not. But when you reflect and you realize what you are doing and the harm that it could put you in when you're lying in that bed, there are moments when you realize that what you're doing is dangerous.

But there are also moments that for her come stronger, that voice that she says that's inside that tell you that what you're doing is the right thing and perhaps you're the only one who hears that voice. And so you have a responsibility to react.

And so she -- I'm sure she was scared, Carol.

LIN: Wangira, real quick, how are you guys going to celebrate?

MAATHAI: Well, let me tell you, the celebration started right now. So we are starting to celebrate. I'm sure it will go through the night. But you're welcome.

LIN: All right, well, first plane out.

But thank you very much, Wangira Maathai, the daughter of Wangari Maathai, the winner of the 2004 Nobel Peace Prize.

Congratulations.

Well, and another woman with a very different set of fortunes right now. These are Martha Stewart's last hours of freedom, at least for a while. Up next, we're going to look at the town and the prison that's going to be housing her for the next five months.

From Atlanta, this is DAYBREAK for a Friday morning.

(COMMERCIAL BREAK)

LIN: All right, this is it, Martha Stewart is going to prison today. She is expected to arrive at her new home around 2:00 this afternoon. Now, home is the women's correctional facility in Alderson, West Virginia, in a town of just over 1,000 people.

CNN's Deborah Feyerick has more on her new residence -- we're talking about Martha's new residence -- and the details on her first meal.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Martha Stewart went off in style, jetting to a fancy beach resort in the Bahamas over the weekend to celebrate the wedding of her longtime publicist. Back in New York, Stewart has been at her office working, spending nights at home in Westport, Connecticut. She skipped Thursday's big wedding reception tonight at the Four Seasons; instead, spending time getting ready to surrender.

The Appalachian leaves are just beginning to change color. And because it's convention season in Greenbrier, West Virginia, the local airport where Stewart will likely arrive has been hopping.

JERRY O'SULLIVAN, MANAGER, GREENBRIER VALLEY AIRPORT: We do a lot of celebrities. And what we want to do is we want to be a very slick, comfortable, easy in, easy out airport for celebrities. And it's just one more celebrity who has a place to go to.

FEYERICK: As Stewart turns onto the road leading to the prison, she'll see a sign about the history of the place and a handful of campaign placards, though as a felon Stewart can't vote in this election.

UNIDENTIFIED FEMALE: Martha!

FEYERICK: She also can't do any business once she's inside. All phone numbers must be approved and her letters may be screened. And if she violates any of the rules, she'll be disciplined -- her commissary or phone privileges taken away.

In town, the buzz is all about Martha -- T-shirts selling for 17 bucks and parking places for media trucks up for sale.

UNIDENTIFIED FEMALE: We haven't had as much excitement in this town since John Kennedy was running for president and came here and visited the local high school.

FEYERICK (on camera): Once Stewart arrives at the gates, she'll be escorted into the prison to the receiving unit. There she will be photographed, fingerprinted and strip searched for contraband. She will be issued a prison uniform and assigned a bunk. And after settling in, she'll have dinner. CNN has learned the first meal will be baked fish, black-eyed peas and Jell-O for dessert.

Deborah Feyerick, CNN, Alderson, West Virginia.

(END VIDEOTAPE)

LIN: All right, in other news, it's been a violent 12 hours in much of the world tonight.

Up next, we're live in Taba, Egypt, where the rescue and recovery efforts continue after explosions at Red Sea resorts.

And we're also live in Paris, where investigators are searching for clues into this morning's blast there.

This is DAYBREAK on CNN.

Please stay with CNN for complete coverage of tonight's debate. We're going to gauge the reactions of a group of undecided voters live during the debate. Plus, we're live in the post-debate spin rooms. Trust CNN for complete live coverage of the presidential debate tonight, beginning at 7:00 p.m. Eastern.

(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