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CNN Live At Daybreak

Ailing Yasser Arafat on Way to Paris; FBI Expanding Halliburton Investigation

Aired October 29, 2004 - 05:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, an ailing Yasser Arafat is on the way to Paris right now for medical treatment. The 75-year-old Palestinian leader is suffering from a blood disorder. This is the first time in nearly three years that Israel has allowed him out of his West Bank compound.

The FBI is expanding its Halliburton investigation. The Feds plan to interview the chief contracting officer for the Army Corps of Engineers. She's alleged her agency unfairly awarded billions of dollars of no bid contracts to a Halliburton subsidiary for work in Iraq.

The NAACP is reportedly being investigated by the IRS for criticizing President Bush. The civil rights group's tax-exempt status restricts political activity and a document from the IRS says the group may have violated those terms by making anti-Bush statements.

Big plans under way for a Boston party. The city will honor its first World Series champions in 86 years with a big parade tomorrow. And next month, the Red Sox will be featured on a box of Wheaties.

You knew that was coming -- Rob.

ROB MARCIANO, CNN METEOROLOGIST: Yes.

The whole team, do you think, or just a couple of them?

COSTELLO: It said the whole team.

MARCIANO: The whole team.

COSTELLO: That's cool. The idiots will be on the box of Wheaties.

MARCIANO: Oh, hey, you said it, not me.

COSTELLO: That's what they call themselves.

MARCIANO: Well, I agree with them.

Hey, this just in the weather department, Hell froze over yesterday, since Boston... COSTELLO: Really?

MARCIANO: Yes, Boston won the World Series.

COSTELLO: Oh, Rob.

You know, we just saw the Wheaties box, but I couldn't tell what player...

MARCIANO: That was Ortiz. That was Ortiz.

COSTELLO: It was Ortiz?

MARCIANO: Yes.

COSTELLO: Thank you.

MARCIANO: There you go.

COSTELLO: So there you go. Just one player. And I guess there will be a bunch of Wheaties boxes featuring different players.

MARCIANO: OK.

COSTELLO: OK.

MARCIANO: I'm not eating Wheaties.

COSTELLO: But you said Hell froze over, and there is a town called Hell somewhere, I know.

MARCIANO: Yes. Where is that town, Bob? Hell. Iowa. It's in Iowa.

COSTELLO: Iowa.

MARCIANO: I stole that from Bob in Headline News yesterday, because he actually showed the picture.

Anyway, here's what's going on, Carol.

COSTELLO: OK.

(WEATHER REPORT)

COSTELLO: Yasser Arafat is expected to land in Paris within the next couple of hours. Failing health has forced the Palestinian leader to leave his Ramallah compound for the first time in nearly three years.

For the latest, let's head live to Ramallah and CNN's Matthew Chance -- hello, Matthew.

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

Yasser Arafat making his way now to the French capital, where he'll receive the kind of medical treatment that he couldn't get here in his battered compound in Ramallah in the West Bank, part of the Palestinian territories, of course. He was flown early this morning by two Royal Jordanian helicopters to the Jordanian capital, Amman, where he was transferred onto a French aircraft bound for the French capital.

It was quite an emotional departure here for Yasser Arafat. People from the locality around Ramallah gathered on the sides of the compound, stood on the fences whistling as Yasser Arafat was loaded into the helicopters, brought by limousine from the compound, just a short distance away. They chanted slogans like "God is with you" and "we will sacrifice ourselves for you, Yasser Arafat," the kind of things that are often chanted when people are trying to show their support for Yasser Arafat.

Now, the Israeli government says that if Yasser Arafat recovers from his illness in France, he will be permitted to come back here to the West Bank and resume his position here in Ramallah, although I have to say a lot of Palestinians are very mistrusting of that, saying that if there's some kind of terrorist act on the streets of Israel, they believe the Israelis may change their mind on that issue.

But certainly there are no special arrangements that have been made to replace Yasser Arafat in his absence. The infrastructure of power will still be continuing to function. But a lot of Palestinians, as well as a lot of Israelis, believe that his departure from the West Bank may be the start of the end of a Yasser Arafat era and perhaps the start of a much more chaotic era -- Carol.

COSTELLO: Matthew Chance live in Ramallah this morning.

Thank you.

There is much more on Yasser Arafat going to France just ahead here on DAYBREAK.

Coming up at 6:00 Eastern, we'll have a report from CNN's Paula Hancocks in Paris.

There are now only four days until Election Day and it's still anybody's guess who will be the next president of the United States. So, let's hit the campaign trail.

President Bush travels to the battleground states of New Hampshire and Ohio today. Bush speaks at rallies in Manchester and Portsmouth, New Hampshire and then he'll fly out to Toledo, Ohio for a late afternoon rally there. Tonight, the president is expected to be joined by California Governor Arnold Schwarzenegger for a rally in Columbus, Ohio. That would be at Ohio State.

For the third day in a row, the president has responded to Senator Kerry's attacks about nearly 400 tons of explosives reportedly missing in Iraq. Bush is hitting his opponent with bruising new attacks about his fitness to be president.

Here's CNN's senior White House correspondent John King. (BEGIN VIDEO TAPE)

JOHN KING, CNN CORRESPONDENT: (voice-over): Saginaw, Michigan five days out -- festive confetti after a closing appeal that ran 44 minutes, leadership the dominant theme, four short seconds the president's first line of defense.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Senator Kerry will say anything to get elected.

KING: As Mr. Bush moved on to Ohio, the day's major flashpoint was again Iraq and 380 tons of missing explosives. Senator Kerry says bad planning by the president is to blame. Mr. Bush says it's not clear what happened.

BUSH: A president needs to get all the facts before jumping to politically motivated conclusions.

KING: In Wisconsin, the vice president upped the ante.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Well, frankly, I think it's a cheap shot. And I personally believe that it says something about the character of the man who would make it.

KING: And a new Bush TV ad reinforced the say anything theme.

(BEGIN VIDEO CLIP FROM BUSH CAMPAIGN AD)

UNIDENTIFIED MALE: Now he claims he'll always support our military, the same Kerry who voted against $87 billion for our troops in combat in the war on terror.

(END VIDEO CLIP)

KING: The bruising rhetoric is a rebuttal to Senator Kerry's portrayal of the president as so stubbornly and ideologically wedded to his positions that he won't admit mistakes even when the evidence is overwhelming. Mr. Bush hopes memories of 9/11 make his the more convincing case.

BUSH: I've learned to expect the unexpected. History can deliver sudden horror from a soft autumn sky. I found you better know what you believe or you risk being tossed to and fro by the flattery of friends or the chorus of the critics.

KING: Buck's County, north of Philadelphia, was the president's final stop, and a critical pocket in the fight for Pennsylvania.

JOE CONTI (R), PENNSYLVANIA STATE SENATOR: I think Buck's County is very much pro-environment, pro-choice, pro-stem cell research.

KING: In other words, out of step with the president on social issues. Yet State Senator Conti says he senses a shift in just the past few days because of the leadership debate.

CONTI: They're just feeling more comfortable casting their vote on security and on the war on terror with President Bush. I think it's moving in that direction.

KING (on camera): Senior Bush aides for months have said they'd be thrilled if leadership and security were the key debating points in the closing days of the campaign. But the ferocity of the response to Senator Kerry's new attacks reveals more than a hint of nervousness.

John King, CNN, Yardley, Pennsylvania.

(END VIDEO TAPE)

COSTELLO: The Bush camp is also dealing with a campaign ad flap. The Bush media adviser acknowledges doctoring a photo used in a television commercial. Take a look. This ad features a still photograph of soldiers apparently listening to President Bush. But if you look closely, you'll see one small group of soldiers is used repeatedly. Bush media adviser Mark McKinnon says they were electronically copied to fill in the space where the president and the podium had been. This is what the original undoctored picture looked like. President Bush standing at a podium, speaking at Fort Drum, New York in July of 2002.

The Bush campaign says the ad will be reedited and reshipped to TV stations. The Kerry campaign issued a statement saying, "If they won't tell the truth in an ad, they won't tell the truth about anything else. The doctored commercial is fundamentally dishonest and insults the intelligence of the American people. Unless George Bush has changed his position on human cloning, he's got to pull this fundamentally dishonest ad immediately." That from the Kerry camp.

As for Senator Kerry, it's a Sunshine State day. Kerry will make three stops in Florida. He'll spend the morning in Orlando, the afternoon in West Palm Beach and he has an evening rally planned in Miami.

In Wisconsin and Ohio, Senator Kerry got his biggest crowd since the convention but he wasn't necessarily the main attraction.

As CNN senior political correspondent Candy Crowley reports, you could say the final days of the Kerry campaign are rocking and rolling.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): If ever there was a time to do it up, the time is now. Ladies and gentlemen, The Boss.

BRUCE SPRINGSTEEN, MUSICIAN: Well, I've done my best now to live the right way. I get up every morning and go to work each day.

CROWLEY: Kerry aides say Bruce Springsteen sings about the people the Senator talks about. All Kerry was missing Thursday was the guitar and a tune.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: People who are in the middle class struggling to get ahead, people who play by the rules, pay their taxes, get up in the morning, go to work, try to find work.

SPRINGSTEEN: Mister, I ain't a boy, no, I'm a man, and I believe in a promised land.

CROWLEY: Besides being on message, Springsteen can generate enthusiasm, which is to say, he packs the house.

SPRINGSTEEN: Well, it looks like Senator Kerry draws a pretty good crowd.

CROWLEY: Kerry's message was yet another whack on the missing ammo. The facts are unclear, but Kerry flogs it. As an aide explained, it's a metaphor for all things Bush.

KERRY: And now George Bush's shifting explanations, an effort to blame everybody except themselves, is evidence that he believes the buck stops anywhere but with the president.

CROWLEY: This was not a day about the message, it was about the messenger, a job John Kerry was oh so happy to outsource for a while.

KERRY: I may be running for president of the United States but we all know who the real boss is, right? When George Bush heard that The Boss was playing with me and going to be with me today, he thought they meant Dick Cheney.

CROWLEY: A good time was had by all, and we do mean all.

(on camera): The truth is the Kerry campaign didn't care that much about making news on this day. Asked if the Senator would give any local interviews, as he usually does, one staff aide said, "Nope, we've already got our pictures."

Candy Crowley, CNN, Columbus, Ohio.

(END VIDEOTAPE)

COSTELLO: Not all the celebrity sightings are going in John Kerry's favor. Curt Schilling, the ace pitcher of Kerry's hometown Red Sox, says vote Bush. Also on the Bush trail is California Governor Arnold Schwarzenegger. Other supporters include Britney Spears and Jessica Simpson. Boxing promoter Don King has also joined the Bush campaign at several stops. But for sheer volume, the Kerry campaign is winning the celebrity sweepstakes. Along with Springsteen, Kerry has had Jon Bon Jovi and Sheryl Crow join in at a few events. Also stumping for Kerry and Edwards have been actors like Leonardo DiCaprio and Ashton Kutcher.

Join CNN for complete coverage on Election Night. We'll bring you real time results live from Times Square and the big board at the Nasdaq. Our election team kicks off a full court press of coverage beginning at 7:00 p.m. Eastern on Tuesday night.

There is a settlement in the Bill O'Reilly sexual harassment case.

(BEGIN VIDEO CLIP)

ANDREA MACKRIS, FORMER FOX ASSOCIATE PRODUCER: It's over and I'm happy.

(END VIDEO CLIP)

COSTELLO: It may be over, but at what cost? Our Adaora Udoji has details for you in six minutes.

New evidence has surfaced about those missing explosives in Iraq and it doesn't look like good news for the White House. We'll have more details on that for you in 25 minutes.

And while they're not medical school grads, they're being trained underwater to perform some very unique surgery. That's at 41 minutes past the hour.

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It's 5:16 Eastern.

Here's what's all new this morning.

The judge has been meeting with the lawyers in the Scott Peterson double murder trial in California. Closing arguments begin on Monday and the jury could get the case by Wednesday.

The body of a man who had been shot to death was found today near Tikrit. The victim had rope burns on his wrists, but officials do not believe it was a Japanese man who has been held hostage.

In money news, oil prices are slipping for the third straight day in Asian trading. At last report, light sweet crude for December delivery was $50.55 a barrel.

In culture, 9/11 the miniseries? NBC and ABC are both planning to turn the tragedy into a made for TV miniseries. The programs will be based on the best-selling 9/11 Commission report.

In sports, it's not a misdemeanor assault charge for Texas Rangers relief pitcher Frank Francisco. Back in September, Francisco threw a chair instead of a baseball, hitting a fan, breaking her nose. The local D.A. has dropped the felony charge.

To the forecast center and Rob -- good morning.

MARCIANO: Good morning.

You can't bite -- that's biting the hand that feeds you right there. They can't be throwing chairs at fans.

COSTELLO: No. No, you cannot.

MARCIANO: You would never do such a thing.

(WEATHER REPORT)

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

People are wondering just how much money was paid to make the Bill O'Reilly sexual harassment/extortion case go away. It took just two weeks for the Fox News commentator and his former associate producer to settle their lawsuits.

Our Adaora Udoji fills you in on the details.

(BEGIN VIDEO TAPE)

ADAORA UDOJI, CNN CORRESPONDENT (voice-over): Right after the settlement announcement, Bill O'Reilly's accuser said she was pleased.

MACKRIS: It's over and I'm happy.

QUESTION: Are you satisfied like with the terms of the settlement?

MACKRIS: I can't say anything else, but I do appreciate everybody.

Thank you.

UDOJI: Andrea Mackris, who worked for O'Reilly as an associate producer, had accused him of sexual harassment. He had accused her of a politically motivated plot to extort $60 million. With the deal done, O'Reilly, too, seemed pleased at the top of his show.

BILL O'REILLY, "THE O'REILLY FACTOR": All litigation has ceased in that case that has made me the object of media scorn from coast to coast.

UDOJI: Despite the bitter charges, O'Reilly's lawyers now say, "All parties have agreed there was no wrongdoing whatsoever by anyone." No one is talking about the details.

O'REILLY: All I can say to you is please do not believe everything you hear and read. You guys looked out for me and I will never forget it. This brutal ordeal is now officially over and I will never speak of it again.

UDOJI: Court TV anchor and attorney Lisa Bloom.

LISA BLOOM, COURT TV: So there are still unanswered questions. And, of course, the biggest one is what is the dollar amount of the settlement and who paid it? Was it Bill O'Reilly individually? Fox News? News Corp.? We will probably never know the answer to that.

UDOJI: But the public's not likely to get any answers. The parties have agreed to keep all the details confidential.

Adaora Udoji, CNN, New York.

(END VIDEO TAPE)

COSTELLO: In other news across America now, five New Jersey teenagers have been charged in a series of attacks on the homeless. At least three people who live in the woods near Toms River, New Jersey, have been severely beaten with baseball bats, hockey sticks and brooms. Police say the teens went "bum hunting" because they were bored.

Send the Army men -- that was the plea by an 8-year-old Washington State boy who called 9/11 after he was stabbed by his father. Tony Sukto has pleaded not guilty to first degree murder in the stabbing death of his wife and to the attempted murder of his son. Prosecutors say Sukto told police that spirits made him do it.

A Tennessee man who was involved in the first Internet organ donation is now in jail. Rob Smitty was jailed for failure to pay child support. Controversy surrounded the operation eight days ago after Smitty's kidney was matched to a needy patient through an Internet service. Doctors agreed to perform the operation only after both parties assured them that no money had changed hands.

Who will win the race for president? Up next, a popular pollster lays out his predictions to "The Daily Show's" Jon Stewart.

You are watching DAYBREAK for a Friday.

(COMMERCIAL BREAK)

COSTELLO: You might not know this, but both presidential candidates are shameless name droppers. Names of the likes like Leonardo DiCaprio and Jon Bon Jovi, just a couple of many celebs coming out of the woodwork to stump for their candidate, John Kerry in this case. Even Bruce Springsteen's music and The Boss himself accompanied the senator's rallies. He attracted 80,000 people in Ohio. Of course, John Kerry was there, too, but I don't know how many came to see John Kerry and how many came to see The Boss.

On the Republican side, George Bush has the Governator, Arnold Schwarzenegger, hitting the stump with him. And Schwarzenegger says he even favors amending the constitution so he can run for president.

Which gets us to our e-mail Question of the Day. Do these celebrity appearances really affect your vote? E-mail us at daybreak@cnn.com. That's daybreak@cnn.com.

MARCIANO: Hopefully the answer is no.

COSTELLO: I hope so, too.

MARCIANO: You know? We should think for ourselves, or at least fight to think that we think for ourselves. I just listen to whatever Carol says. COSTELLO: Yes, sure he does.

Well, let's talk about polls, polls, polls. You'd think we could make up our own minds about which candidate we're going to vote for, right, as you just said?

MARCIANO: Right. Hopefully.

COSTELLO: It turns out that's not the case. Fortunately for pollster John Zogby, he discussed the inexact science of surveys on "The Daily Show With Jon Stewart."

MARCIANO: Oh, let's listen.

(BEGIN VIDEO CLIP FROM "THE DAILY SHOW WITH JON STEWART, COURTESY COMEDY CENTRAL)

JOHN ZOGBY, PRESIDENT, ZOGBY INTERNATIONAL: If the election were between Bush and not Bush, not Bush would win, definitely.

JOHN STEWART, HOST: Really?

ZOGBY: The issue...

STEWART: Not Bush would also beat Kerry?

ZOGBY: Not Bush could also beat Kerry.

STEWART: Wow!

ZOGBY: But, no, seriously, seriously, the undecideds are articulate, they're paying attention, they don't like the war, they don't like the way we got into the war. They're just not sure about Kerry. They will break at some point.

For me, my problem is they may decide to break on Election Day. A lot of people are telling us they'll make up their minds on Election Day.

STEWART: In the booth?

ZOGBY: In the booth or on their way to the booth.

STEWART: So the lines are going to be around the block. Can you imagine, people are like literally in the booth with the curtain drawn, you're going to hear this, "On the one hand this and on the other hand, this."

(END VIDEO CLIP)

COSTELLO: Oh, that is so true.

MARCIANO: Well, you can look at it as like a multiple choice test, which is one of my favorites...

COSTELLO: Some people probably do, actually. Ugh, that one. Oh, it's a strange election, isn't it?

MARCIANO: Well, you know, I looked at all the issues the other day and, you know, it just, there's a lot to think about.

COSTELLO: Well, there are distinct differences between the candidates.

MARCIANO: Yes.

COSTELLO: At least there are distinct differences this year and you really do have an actual choice. Of course, just listening to Zogby, you don't.

MARCIANO: I went and checked off, you know, all my (UNINTELLIGIBLE) and I still, it still didn't help me.

COSTELLO: Well, you can decide on Election Day.

MARCIANO: That's why I want to listen to you. You tell me who to vote for.

COSTELLO: Yes, right, sure.

Time for our DAYBREAK "Eye Opener" now.

Faith is one smart dog. She called 911 and opened the door for paramedics when her owner fell out of her wheelchair. Can you believe that? Faith is trained to hit the speed dial with her nose and then bark into the receiver. The 911 operator said she sensed there was a problem on the other end of the emergency call. Faith's owner has suffered a seizure, but is all right right now.

MARCIANO: All right.

COSTELLO: That is one amazing dog.

MARCIANO: Very valued.

COSTELLO: Deer hunters in Wisconsin are willing to try just about anything to get off a good shot. Some of them have taken to chewing a new pine flavored gum. Yes, pine flavored.

MARCIANO: What does that do for them?

COSTELLO: Well, Rob, it's wonderful you asked, because the gum gives off a pine smell, which can mask a hunter's scent. So he smells like a pine tree.

MARCIANO: Well, I'd just take that tree that hangs from my rearview mirror and rub it all over myself. That's what I use for cologne every day so it's the same deal.

COSTELLO: Good idea.

This South Carolina 11-year-old is already thinking about becoming president. Shkur Francis is a member of two political organizations for children and has some concrete ideas on the issues.

(BEGIN VIDEO CLIP)

SHKUR FRANCIS, POLITICIAN-IN-TRAINING: We need to fund health care. We need to fund education. We need a new tax reform. Many things this country needs and I feel I can bring to it, there is one issue I really do represent. If you abandon your dog, you go straight to jail. If you abandon your animal, you go straight to jail.

(END VIDEO CLIP)

COSTELLO: Now, Rob, that has made up your mind. You're going to vote for Skhur.

MARCIANO: I'm voting for him. A cute kid, and articulate, too.

COSTELLO: Exactly.

He wants to be a senator, a representative or even the president of the United States.

MARCIANO: Good for him.

COSTELLO: We'll have more on kids and politics coming up in our next hour. That includes the results of a special "Time For Kids" magazine poll on the upcoming election. These kids have chosen their choice for president.

MARCIANO: Maybe I should listen to them.

COSTELLO: All right, you be around. Eleven years old, baby.

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

Escalating fears of Election Day. Despite the lessons of 2000 and the billions of dollars spent on election reform, serious balloting disputes are making a debut. Could Ohio be the new Florida?

This is DAYBREAK for Friday.

(COMMERCIAL BREAK)

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Aired October 29, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, an ailing Yasser Arafat is on the way to Paris right now for medical treatment. The 75-year-old Palestinian leader is suffering from a blood disorder. This is the first time in nearly three years that Israel has allowed him out of his West Bank compound.

The FBI is expanding its Halliburton investigation. The Feds plan to interview the chief contracting officer for the Army Corps of Engineers. She's alleged her agency unfairly awarded billions of dollars of no bid contracts to a Halliburton subsidiary for work in Iraq.

The NAACP is reportedly being investigated by the IRS for criticizing President Bush. The civil rights group's tax-exempt status restricts political activity and a document from the IRS says the group may have violated those terms by making anti-Bush statements.

Big plans under way for a Boston party. The city will honor its first World Series champions in 86 years with a big parade tomorrow. And next month, the Red Sox will be featured on a box of Wheaties.

You knew that was coming -- Rob.

ROB MARCIANO, CNN METEOROLOGIST: Yes.

The whole team, do you think, or just a couple of them?

COSTELLO: It said the whole team.

MARCIANO: The whole team.

COSTELLO: That's cool. The idiots will be on the box of Wheaties.

MARCIANO: Oh, hey, you said it, not me.

COSTELLO: That's what they call themselves.

MARCIANO: Well, I agree with them.

Hey, this just in the weather department, Hell froze over yesterday, since Boston... COSTELLO: Really?

MARCIANO: Yes, Boston won the World Series.

COSTELLO: Oh, Rob.

You know, we just saw the Wheaties box, but I couldn't tell what player...

MARCIANO: That was Ortiz. That was Ortiz.

COSTELLO: It was Ortiz?

MARCIANO: Yes.

COSTELLO: Thank you.

MARCIANO: There you go.

COSTELLO: So there you go. Just one player. And I guess there will be a bunch of Wheaties boxes featuring different players.

MARCIANO: OK.

COSTELLO: OK.

MARCIANO: I'm not eating Wheaties.

COSTELLO: But you said Hell froze over, and there is a town called Hell somewhere, I know.

MARCIANO: Yes. Where is that town, Bob? Hell. Iowa. It's in Iowa.

COSTELLO: Iowa.

MARCIANO: I stole that from Bob in Headline News yesterday, because he actually showed the picture.

Anyway, here's what's going on, Carol.

COSTELLO: OK.

(WEATHER REPORT)

COSTELLO: Yasser Arafat is expected to land in Paris within the next couple of hours. Failing health has forced the Palestinian leader to leave his Ramallah compound for the first time in nearly three years.

For the latest, let's head live to Ramallah and CNN's Matthew Chance -- hello, Matthew.

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

Yasser Arafat making his way now to the French capital, where he'll receive the kind of medical treatment that he couldn't get here in his battered compound in Ramallah in the West Bank, part of the Palestinian territories, of course. He was flown early this morning by two Royal Jordanian helicopters to the Jordanian capital, Amman, where he was transferred onto a French aircraft bound for the French capital.

It was quite an emotional departure here for Yasser Arafat. People from the locality around Ramallah gathered on the sides of the compound, stood on the fences whistling as Yasser Arafat was loaded into the helicopters, brought by limousine from the compound, just a short distance away. They chanted slogans like "God is with you" and "we will sacrifice ourselves for you, Yasser Arafat," the kind of things that are often chanted when people are trying to show their support for Yasser Arafat.

Now, the Israeli government says that if Yasser Arafat recovers from his illness in France, he will be permitted to come back here to the West Bank and resume his position here in Ramallah, although I have to say a lot of Palestinians are very mistrusting of that, saying that if there's some kind of terrorist act on the streets of Israel, they believe the Israelis may change their mind on that issue.

But certainly there are no special arrangements that have been made to replace Yasser Arafat in his absence. The infrastructure of power will still be continuing to function. But a lot of Palestinians, as well as a lot of Israelis, believe that his departure from the West Bank may be the start of the end of a Yasser Arafat era and perhaps the start of a much more chaotic era -- Carol.

COSTELLO: Matthew Chance live in Ramallah this morning.

Thank you.

There is much more on Yasser Arafat going to France just ahead here on DAYBREAK.

Coming up at 6:00 Eastern, we'll have a report from CNN's Paula Hancocks in Paris.

There are now only four days until Election Day and it's still anybody's guess who will be the next president of the United States. So, let's hit the campaign trail.

President Bush travels to the battleground states of New Hampshire and Ohio today. Bush speaks at rallies in Manchester and Portsmouth, New Hampshire and then he'll fly out to Toledo, Ohio for a late afternoon rally there. Tonight, the president is expected to be joined by California Governor Arnold Schwarzenegger for a rally in Columbus, Ohio. That would be at Ohio State.

For the third day in a row, the president has responded to Senator Kerry's attacks about nearly 400 tons of explosives reportedly missing in Iraq. Bush is hitting his opponent with bruising new attacks about his fitness to be president.

Here's CNN's senior White House correspondent John King. (BEGIN VIDEO TAPE)

JOHN KING, CNN CORRESPONDENT: (voice-over): Saginaw, Michigan five days out -- festive confetti after a closing appeal that ran 44 minutes, leadership the dominant theme, four short seconds the president's first line of defense.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Senator Kerry will say anything to get elected.

KING: As Mr. Bush moved on to Ohio, the day's major flashpoint was again Iraq and 380 tons of missing explosives. Senator Kerry says bad planning by the president is to blame. Mr. Bush says it's not clear what happened.

BUSH: A president needs to get all the facts before jumping to politically motivated conclusions.

KING: In Wisconsin, the vice president upped the ante.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Well, frankly, I think it's a cheap shot. And I personally believe that it says something about the character of the man who would make it.

KING: And a new Bush TV ad reinforced the say anything theme.

(BEGIN VIDEO CLIP FROM BUSH CAMPAIGN AD)

UNIDENTIFIED MALE: Now he claims he'll always support our military, the same Kerry who voted against $87 billion for our troops in combat in the war on terror.

(END VIDEO CLIP)

KING: The bruising rhetoric is a rebuttal to Senator Kerry's portrayal of the president as so stubbornly and ideologically wedded to his positions that he won't admit mistakes even when the evidence is overwhelming. Mr. Bush hopes memories of 9/11 make his the more convincing case.

BUSH: I've learned to expect the unexpected. History can deliver sudden horror from a soft autumn sky. I found you better know what you believe or you risk being tossed to and fro by the flattery of friends or the chorus of the critics.

KING: Buck's County, north of Philadelphia, was the president's final stop, and a critical pocket in the fight for Pennsylvania.

JOE CONTI (R), PENNSYLVANIA STATE SENATOR: I think Buck's County is very much pro-environment, pro-choice, pro-stem cell research.

KING: In other words, out of step with the president on social issues. Yet State Senator Conti says he senses a shift in just the past few days because of the leadership debate.

CONTI: They're just feeling more comfortable casting their vote on security and on the war on terror with President Bush. I think it's moving in that direction.

KING (on camera): Senior Bush aides for months have said they'd be thrilled if leadership and security were the key debating points in the closing days of the campaign. But the ferocity of the response to Senator Kerry's new attacks reveals more than a hint of nervousness.

John King, CNN, Yardley, Pennsylvania.

(END VIDEO TAPE)

COSTELLO: The Bush camp is also dealing with a campaign ad flap. The Bush media adviser acknowledges doctoring a photo used in a television commercial. Take a look. This ad features a still photograph of soldiers apparently listening to President Bush. But if you look closely, you'll see one small group of soldiers is used repeatedly. Bush media adviser Mark McKinnon says they were electronically copied to fill in the space where the president and the podium had been. This is what the original undoctored picture looked like. President Bush standing at a podium, speaking at Fort Drum, New York in July of 2002.

The Bush campaign says the ad will be reedited and reshipped to TV stations. The Kerry campaign issued a statement saying, "If they won't tell the truth in an ad, they won't tell the truth about anything else. The doctored commercial is fundamentally dishonest and insults the intelligence of the American people. Unless George Bush has changed his position on human cloning, he's got to pull this fundamentally dishonest ad immediately." That from the Kerry camp.

As for Senator Kerry, it's a Sunshine State day. Kerry will make three stops in Florida. He'll spend the morning in Orlando, the afternoon in West Palm Beach and he has an evening rally planned in Miami.

In Wisconsin and Ohio, Senator Kerry got his biggest crowd since the convention but he wasn't necessarily the main attraction.

As CNN senior political correspondent Candy Crowley reports, you could say the final days of the Kerry campaign are rocking and rolling.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): If ever there was a time to do it up, the time is now. Ladies and gentlemen, The Boss.

BRUCE SPRINGSTEEN, MUSICIAN: Well, I've done my best now to live the right way. I get up every morning and go to work each day.

CROWLEY: Kerry aides say Bruce Springsteen sings about the people the Senator talks about. All Kerry was missing Thursday was the guitar and a tune.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: People who are in the middle class struggling to get ahead, people who play by the rules, pay their taxes, get up in the morning, go to work, try to find work.

SPRINGSTEEN: Mister, I ain't a boy, no, I'm a man, and I believe in a promised land.

CROWLEY: Besides being on message, Springsteen can generate enthusiasm, which is to say, he packs the house.

SPRINGSTEEN: Well, it looks like Senator Kerry draws a pretty good crowd.

CROWLEY: Kerry's message was yet another whack on the missing ammo. The facts are unclear, but Kerry flogs it. As an aide explained, it's a metaphor for all things Bush.

KERRY: And now George Bush's shifting explanations, an effort to blame everybody except themselves, is evidence that he believes the buck stops anywhere but with the president.

CROWLEY: This was not a day about the message, it was about the messenger, a job John Kerry was oh so happy to outsource for a while.

KERRY: I may be running for president of the United States but we all know who the real boss is, right? When George Bush heard that The Boss was playing with me and going to be with me today, he thought they meant Dick Cheney.

CROWLEY: A good time was had by all, and we do mean all.

(on camera): The truth is the Kerry campaign didn't care that much about making news on this day. Asked if the Senator would give any local interviews, as he usually does, one staff aide said, "Nope, we've already got our pictures."

Candy Crowley, CNN, Columbus, Ohio.

(END VIDEOTAPE)

COSTELLO: Not all the celebrity sightings are going in John Kerry's favor. Curt Schilling, the ace pitcher of Kerry's hometown Red Sox, says vote Bush. Also on the Bush trail is California Governor Arnold Schwarzenegger. Other supporters include Britney Spears and Jessica Simpson. Boxing promoter Don King has also joined the Bush campaign at several stops. But for sheer volume, the Kerry campaign is winning the celebrity sweepstakes. Along with Springsteen, Kerry has had Jon Bon Jovi and Sheryl Crow join in at a few events. Also stumping for Kerry and Edwards have been actors like Leonardo DiCaprio and Ashton Kutcher.

Join CNN for complete coverage on Election Night. We'll bring you real time results live from Times Square and the big board at the Nasdaq. Our election team kicks off a full court press of coverage beginning at 7:00 p.m. Eastern on Tuesday night.

There is a settlement in the Bill O'Reilly sexual harassment case.

(BEGIN VIDEO CLIP)

ANDREA MACKRIS, FORMER FOX ASSOCIATE PRODUCER: It's over and I'm happy.

(END VIDEO CLIP)

COSTELLO: It may be over, but at what cost? Our Adaora Udoji has details for you in six minutes.

New evidence has surfaced about those missing explosives in Iraq and it doesn't look like good news for the White House. We'll have more details on that for you in 25 minutes.

And while they're not medical school grads, they're being trained underwater to perform some very unique surgery. That's at 41 minutes past the hour.

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

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COSTELLO: Your news, money, weather and sports.

It's 5:16 Eastern.

Here's what's all new this morning.

The judge has been meeting with the lawyers in the Scott Peterson double murder trial in California. Closing arguments begin on Monday and the jury could get the case by Wednesday.

The body of a man who had been shot to death was found today near Tikrit. The victim had rope burns on his wrists, but officials do not believe it was a Japanese man who has been held hostage.

In money news, oil prices are slipping for the third straight day in Asian trading. At last report, light sweet crude for December delivery was $50.55 a barrel.

In culture, 9/11 the miniseries? NBC and ABC are both planning to turn the tragedy into a made for TV miniseries. The programs will be based on the best-selling 9/11 Commission report.

In sports, it's not a misdemeanor assault charge for Texas Rangers relief pitcher Frank Francisco. Back in September, Francisco threw a chair instead of a baseball, hitting a fan, breaking her nose. The local D.A. has dropped the felony charge.

To the forecast center and Rob -- good morning.

MARCIANO: Good morning.

You can't bite -- that's biting the hand that feeds you right there. They can't be throwing chairs at fans.

COSTELLO: No. No, you cannot.

MARCIANO: You would never do such a thing.

(WEATHER REPORT)

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

People are wondering just how much money was paid to make the Bill O'Reilly sexual harassment/extortion case go away. It took just two weeks for the Fox News commentator and his former associate producer to settle their lawsuits.

Our Adaora Udoji fills you in on the details.

(BEGIN VIDEO TAPE)

ADAORA UDOJI, CNN CORRESPONDENT (voice-over): Right after the settlement announcement, Bill O'Reilly's accuser said she was pleased.

MACKRIS: It's over and I'm happy.

QUESTION: Are you satisfied like with the terms of the settlement?

MACKRIS: I can't say anything else, but I do appreciate everybody.

Thank you.

UDOJI: Andrea Mackris, who worked for O'Reilly as an associate producer, had accused him of sexual harassment. He had accused her of a politically motivated plot to extort $60 million. With the deal done, O'Reilly, too, seemed pleased at the top of his show.

BILL O'REILLY, "THE O'REILLY FACTOR": All litigation has ceased in that case that has made me the object of media scorn from coast to coast.

UDOJI: Despite the bitter charges, O'Reilly's lawyers now say, "All parties have agreed there was no wrongdoing whatsoever by anyone." No one is talking about the details.

O'REILLY: All I can say to you is please do not believe everything you hear and read. You guys looked out for me and I will never forget it. This brutal ordeal is now officially over and I will never speak of it again.

UDOJI: Court TV anchor and attorney Lisa Bloom.

LISA BLOOM, COURT TV: So there are still unanswered questions. And, of course, the biggest one is what is the dollar amount of the settlement and who paid it? Was it Bill O'Reilly individually? Fox News? News Corp.? We will probably never know the answer to that.

UDOJI: But the public's not likely to get any answers. The parties have agreed to keep all the details confidential.

Adaora Udoji, CNN, New York.

(END VIDEO TAPE)

COSTELLO: In other news across America now, five New Jersey teenagers have been charged in a series of attacks on the homeless. At least three people who live in the woods near Toms River, New Jersey, have been severely beaten with baseball bats, hockey sticks and brooms. Police say the teens went "bum hunting" because they were bored.

Send the Army men -- that was the plea by an 8-year-old Washington State boy who called 9/11 after he was stabbed by his father. Tony Sukto has pleaded not guilty to first degree murder in the stabbing death of his wife and to the attempted murder of his son. Prosecutors say Sukto told police that spirits made him do it.

A Tennessee man who was involved in the first Internet organ donation is now in jail. Rob Smitty was jailed for failure to pay child support. Controversy surrounded the operation eight days ago after Smitty's kidney was matched to a needy patient through an Internet service. Doctors agreed to perform the operation only after both parties assured them that no money had changed hands.

Who will win the race for president? Up next, a popular pollster lays out his predictions to "The Daily Show's" Jon Stewart.

You are watching DAYBREAK for a Friday.

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COSTELLO: You might not know this, but both presidential candidates are shameless name droppers. Names of the likes like Leonardo DiCaprio and Jon Bon Jovi, just a couple of many celebs coming out of the woodwork to stump for their candidate, John Kerry in this case. Even Bruce Springsteen's music and The Boss himself accompanied the senator's rallies. He attracted 80,000 people in Ohio. Of course, John Kerry was there, too, but I don't know how many came to see John Kerry and how many came to see The Boss.

On the Republican side, George Bush has the Governator, Arnold Schwarzenegger, hitting the stump with him. And Schwarzenegger says he even favors amending the constitution so he can run for president.

Which gets us to our e-mail Question of the Day. Do these celebrity appearances really affect your vote? E-mail us at daybreak@cnn.com. That's daybreak@cnn.com.

MARCIANO: Hopefully the answer is no.

COSTELLO: I hope so, too.

MARCIANO: You know? We should think for ourselves, or at least fight to think that we think for ourselves. I just listen to whatever Carol says. COSTELLO: Yes, sure he does.

Well, let's talk about polls, polls, polls. You'd think we could make up our own minds about which candidate we're going to vote for, right, as you just said?

MARCIANO: Right. Hopefully.

COSTELLO: It turns out that's not the case. Fortunately for pollster John Zogby, he discussed the inexact science of surveys on "The Daily Show With Jon Stewart."

MARCIANO: Oh, let's listen.

(BEGIN VIDEO CLIP FROM "THE DAILY SHOW WITH JON STEWART, COURTESY COMEDY CENTRAL)

JOHN ZOGBY, PRESIDENT, ZOGBY INTERNATIONAL: If the election were between Bush and not Bush, not Bush would win, definitely.

JOHN STEWART, HOST: Really?

ZOGBY: The issue...

STEWART: Not Bush would also beat Kerry?

ZOGBY: Not Bush could also beat Kerry.

STEWART: Wow!

ZOGBY: But, no, seriously, seriously, the undecideds are articulate, they're paying attention, they don't like the war, they don't like the way we got into the war. They're just not sure about Kerry. They will break at some point.

For me, my problem is they may decide to break on Election Day. A lot of people are telling us they'll make up their minds on Election Day.

STEWART: In the booth?

ZOGBY: In the booth or on their way to the booth.

STEWART: So the lines are going to be around the block. Can you imagine, people are like literally in the booth with the curtain drawn, you're going to hear this, "On the one hand this and on the other hand, this."

(END VIDEO CLIP)

COSTELLO: Oh, that is so true.

MARCIANO: Well, you can look at it as like a multiple choice test, which is one of my favorites...

COSTELLO: Some people probably do, actually. Ugh, that one. Oh, it's a strange election, isn't it?

MARCIANO: Well, you know, I looked at all the issues the other day and, you know, it just, there's a lot to think about.

COSTELLO: Well, there are distinct differences between the candidates.

MARCIANO: Yes.

COSTELLO: At least there are distinct differences this year and you really do have an actual choice. Of course, just listening to Zogby, you don't.

MARCIANO: I went and checked off, you know, all my (UNINTELLIGIBLE) and I still, it still didn't help me.

COSTELLO: Well, you can decide on Election Day.

MARCIANO: That's why I want to listen to you. You tell me who to vote for.

COSTELLO: Yes, right, sure.

Time for our DAYBREAK "Eye Opener" now.

Faith is one smart dog. She called 911 and opened the door for paramedics when her owner fell out of her wheelchair. Can you believe that? Faith is trained to hit the speed dial with her nose and then bark into the receiver. The 911 operator said she sensed there was a problem on the other end of the emergency call. Faith's owner has suffered a seizure, but is all right right now.

MARCIANO: All right.

COSTELLO: That is one amazing dog.

MARCIANO: Very valued.

COSTELLO: Deer hunters in Wisconsin are willing to try just about anything to get off a good shot. Some of them have taken to chewing a new pine flavored gum. Yes, pine flavored.

MARCIANO: What does that do for them?

COSTELLO: Well, Rob, it's wonderful you asked, because the gum gives off a pine smell, which can mask a hunter's scent. So he smells like a pine tree.

MARCIANO: Well, I'd just take that tree that hangs from my rearview mirror and rub it all over myself. That's what I use for cologne every day so it's the same deal.

COSTELLO: Good idea.

This South Carolina 11-year-old is already thinking about becoming president. Shkur Francis is a member of two political organizations for children and has some concrete ideas on the issues.

(BEGIN VIDEO CLIP)

SHKUR FRANCIS, POLITICIAN-IN-TRAINING: We need to fund health care. We need to fund education. We need a new tax reform. Many things this country needs and I feel I can bring to it, there is one issue I really do represent. If you abandon your dog, you go straight to jail. If you abandon your animal, you go straight to jail.

(END VIDEO CLIP)

COSTELLO: Now, Rob, that has made up your mind. You're going to vote for Skhur.

MARCIANO: I'm voting for him. A cute kid, and articulate, too.

COSTELLO: Exactly.

He wants to be a senator, a representative or even the president of the United States.

MARCIANO: Good for him.

COSTELLO: We'll have more on kids and politics coming up in our next hour. That includes the results of a special "Time For Kids" magazine poll on the upcoming election. These kids have chosen their choice for president.

MARCIANO: Maybe I should listen to them.

COSTELLO: All right, you be around. Eleven years old, baby.

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

Escalating fears of Election Day. Despite the lessons of 2000 and the billions of dollars spent on election reform, serious balloting disputes are making a debut. Could Ohio be the new Florida?

This is DAYBREAK for Friday.

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