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CNN Live At Daybreak
Look Ahead at President Bush's Second Term; Health of Palestinian Leader Yasser Arafat
Aired November 04, 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, Palestinian leader Yasser Arafat's health remains a concern this morning. You're taking a live look at Paris right now, outside of the military hospital where Yasser Arafat is now being treated. We expect someone to come out and say something about Yasser Arafat's condition shortly. When that happens, of course, we'll take you to Paris live again.
A militant group holding three U.N. workers hostage in Afghanistan is said to be in talks with the Afghan government. The group says it wants all Taliban prisoners released.
The jury in the murder trial of Scott Peterson gets back to work this morning in Redwood City, California. Jurors began deliberations yesterday and worked four hours before adjourning.
Flights have now resumed at the airport in Reno, Nevada. Several flights had been canceled or delayed when the FAA conducted repairs on equipment used to guide pilots in poor weather.
To the forecast center to talk only about good weather -- Chad Myers.
CHAD MYERS, CNN METEOROLOGIST: I'm going to have to look for some today.
COSTELLO: Ohio, no.
MYERS: It's going to be a little search.
(WEATHER REPORT)
COSTELLO: All right, we now know who the president will be for the next four years. But what happens next? What are the issues, the challenges?
This morning, we'll look at three major areas of the by presidency.
First, the Supreme Court. Chief Justice William Rehnquist has cancer. Speculation is he and others could step down soon. The president would be the one to nominate their replacements. Then there is the budget. The president says he plans to cut the record deficit in half during his second term, but that is not going to be easy.
And, of course, there is the Bush cabinet -- Rice, Rumsfeld, Powell, Ashcroft, Ridge. There are rumors about changes there, as well.
The president meets with his cabinet just about five hours from now. Then it's off to Camp David for some rest.
We begin this morning with senior White House correspondent John King, who tells us the president is claiming a mandate and preparing for a second term.
(BEGIN VIDEO TAPE)
JOHN KING, CNN CORRESPONDENT: (voice-over): No recount and no doubt about the winner this time, a rowdy Republican celebration, but also an attempt to set a new tone for a second term.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: So today I want to speak to every person who voted for my opponent. To make this nation stronger and better, I will need your support, and I will work to earn it.
KING: But make no mistake, the victors seek bipartisanship, but on their terms, and believe a clear majority of the popular vote and bigger Republican margins in Congress give them the upper hand.
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: President Bush ran forthrightly on a clear agenda for this nation's future and the nation responded by giving him a mandate.
KING: Celebration on this day. Talk of cooperation will be tested early in the new term.
KEN DUBERSTEIN, FORMER REAGAN CHIEF OF STAFF: They'll be campaigning for the history books for a legacy.
KING: The Iraq War still divides the parties, as does a second term agenda that includes tax simplification, health care changes Democrats say fall short and revamping Social Security.
BUSH: I see a great day coming for our country and I am eager for the work ahead.
KING: Senior Bush aides believe the first partisan dust-up could come within weeks. Chief Justice William Rehnquist has cancer and the White House is quietly preparing to name a successor. And cabinet and staff turnover is in the works after a first term noteworthy for stability at the top.
DUBERSTEIN: There will be, in fact, wholesale changes in a second Bush administration.
KING: Gone is the legitimacy debate of 2000, when Mr. Bush won the White House but lost the popular vote.
BUSH: The voters turned out in record numbers and delivered an historic victory.
KING: It was a dramatic turnaround. Early exit polls scooped the White House. And as Mr. Bush watched the votes come in, Ohio met expectations, a nail-biter and the decisive state. Mr. Bush went to bed at 5:00 a.m. confident of reelection.
(on camera): Six hours later, a conversation in the Oval Office, Senator Kerry calling to concede the election, guaranteeing that this President Bush, unlike his father, would get a second term.
John King, CNN, the White House.
(END VIDEO TAPE)
COSTELLO: More about the U.S. Supreme Court now. Chief Justice William Rehnquist is being treated for thyroid cancer. But the senator who might become the new chairman of the Judiciary Committee says if Rehnquist retires, the president has to be very careful with any changes to the court.
(BEGIN VIDEO CLIP)
SEN. ARLEN SPECTER (R-PA), JUDICIARY COMMITTEE: The chief justice is gravely ill and I had known more about that than had appeared in the media. And when he said he was going to be back on Monday, it was known inside that he was not going to be back on Monday. And the full extent of his incapacitation is really not known. When you talk about judges who would change the right of a woman to choose and overturn "Row v. Wade," I think that is unlikely, and I have said that bluntly during the course of the campaign and before.
(END VIDEO CLIP)
COSTELLO: It's also very possible that as many as three other justices could retire during President Bush's second term.
All right, topic number two. The looming question is will anything be done to reduce the record budget deficit?
CNN's Allan Chernoff reports it'll require a little luck and a lot of hard choices.
(BEGIN VIDEO TAPE)
ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): President Bush's plan is to cut the deficit in half during his second term. If the economy were to accelerate, higher tax revenues would help. But many economists say the president has little chance of achieving his goal.
DAVID DIEM, COLUMBIA UNIVERSITY: The trouble is cutting it in half requires some very hard choices and this administration hasn't shown any interest in making those hard choices. CHERNOFF: President Bush inherited a budget surplus, $127 billion in fiscal 2001. The fiscal year that just ended in September had the largest annual deficit in history, $413 billion. The turnaround was the result of increased spending on defense, homeland security, Medicare, Medicaid, as well as the cost to the Treasury of tax cuts.
During his second term, President Bush plans to make the cuts permanent and boost spending for defense, homeland security, aid to farmers and the Medicare prescription drug benefit.
ALLEN SINAI: When we get to 2006, 2007, 2008, particularly 2007 and 2008, an aging population and retiring Baby Boomers are going to make very big demands on the federal budget and that's when the structural deficit is likely to move much higher.
CHERNOFF: Worries about the budget deficit are partly responsible for the dollar losing one fifth of its value during the Bush presidency. The drop reduces the purchasing power of Americans. Imported goods are more costly and it's more expensive to travel overseas. Higher deficits also can boost long-term interest rates and create a burden for future generations to pay off.
Allan Chernoff, CNN Financial News, New York.
(END VIDEO TAPE)
COSTELLO: And some second term shuffling can be expected among President Bush's cabinet.
CNN's Kathleen Koch takes a look at the Washington whispers on who will stay and who will go.
(BEGIN VIDEO TAPE)
UNIDENTIFIED MALE: Ladies and gentlemen, the president of the United States.
KATHLEEN KOCH, CNN CORRESPONDENT: (voice-over): The buzz about the second term Bush cabinet centers on possible changes in the president's national security team, from Secretary of State Colin Powell...
COLIN POWELL, SECRETARY OF STATE: I serve at the pleasure of the president.
KOCH: To Defense Secretary Donald Rumsfeld, who this spring faced calls for his resignation.
BUSH: He's an important part of my Cabinet and he'll stay in my Cabinet.
MICHAEL WEISSKOPF, SENIOR CORRESPONDENT, "TIME" MAGAZINE: I would say that, on the defense side, he'll leave most everyone in place as long as they'll want to stay. I would expect Secretary Powell to move over very quickly, possibly Attorney General Ashcroft, who has been there for four years, had some health problems, might move out, particularly because he was a symbol for the far right.
KOCH: It's rumored National Security Adviser Condoleezza Rice might switch to another role, and there's widespread speculation Homeland Security Secretary Tom Ridge will leave.
ALAN LICHTMAN, PRESIDENTIAL HISTORIAN: So the continuity we saw in the national security and foreign policy team, I think, is going to be replaced by fundamental change, which is quite typical of second term presidents, looking from Eisenhower through Clinton.
KOCH: Other possible departures -- Commerce Secretary Donald Evans, Energy Secretary Spencer Abraham, Education Secretary Roderick Paige and Transportation Secretary Norman Mineta. Important now, say some, is including Democrats.
JACK QUINN, FORMER CLINTON WHITE HOUSE COUNSEL: That's the sort of gesture the president needs to employ to let the American people know that he intends to be a president of the American people and all the American people, and not just the leader of a political faction.
KOCH: Much of the rest of the Bush Cabinet is expected to stay. And some prominent Republicans are clearly reflecting on joining them.
RUDOLPH GIULIANI (R), FORMER MAYOR OF NEW YORK: I'm saying I'm not interested. No, you never say no to the president of the United States. Absolutely not.
KOCH (on camera): So as the hopefuls begin to jockey for position, those who have served plan new lives, often involving more time with their families and more lucrative jobs in the private sector.
Kathleen Koch, CNN, Washington.
(END VIDEO TAPE)
COSTELLO: In his victory speech, President Bush made an attempt to reach out to Kerry supporters and unite the nation. Senator Kerry struck a similar tone in his concession speech.
(BEGIN VIDEO CLIP)
BUSH: A new term is a new opportunity to reach out to the whole nation. We have one country, one constitution and one future that binds us. And when we come together and work together, there is no limit to the greatness of America.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: In the days ahead, we must find common cause. We must join in common effort without remorse or recrimination, without anger or rancor. America is in need of unity and longing for a larger measure of compassion.
(COMMERCIAL BREAK)
COSTELLO: It is a tall order, but get this, the latest CNN/"USA Today"/Gallup poll finds that 57 percent of people polled believe President Bush will be a uniter. 39 percent believe the president will be a divider.
That brings us to our e-mail question for today. Voting is over. The decision is final. Do you think the country can unite? E-mail us at daybreak@cnn.com, daybreak@cnn.com. And, of course, we'll be glad to read your responses on the air because they're always enlightening.
While President Bush serves four more years in the White House, John Kerry returns to four more years in the Senate. Just ahead on DAYBREAK, we'll get an emotional look at how the senator is dealing with defeat.
Also ahead, Palestinians go through difficult times as doctors try to figure out what's wrong with Yasser Arafat.
And the Scott Peterson trial is now in the hands of a jury. We'll look at the decisions they're facing.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It is 5:14.
Ooh, it just turned 5:15 Eastern time.
Here's what's all new this morning.
A series of U.S. air strikes hit fortified insurgent positions around Falluja. Hospital officials in the city say two people were killed, two more were injured. The air strikes are intended to soften up resistance to a possible offensive by American and multinational forces.
Four Merrill Lynch bankers have been convicted of conspiracy and fraud for propping up Enron's bottom line. One former midlevel Enron executive has also been found guilty. It's the first criminal trial stemming from Enron's collapse.
In money news, sales are down for Ford and General Motors. How come? Well, one reason is big incentives offered in September caused a lack of buyers in October. G.M.'s sales fell by 5 percent.
In culture, Tom Hanks is set to receive a special award at tonight's Britannia Awards in Los Angeles. The Britannias are given out by the British Academy of Film and Television. Hanks will be presented the Stanley Kubrick Award for Excellence in Film.
In sports, the NBA's worst team last year began the season with a last second stunner. Guard Steven Francis scored with two tenths of a second left, to lift the Orlando Magic to an opening night victory over the Milwaukee Bucks. To the forecast center now and Chad -- good morning.
MYERS: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
Yasser Arafat is in intensive care at a hospital in France. But the condition of the Palestinian leader is in dispute and there is still no report on the cause of the blood disorder that sent the Palestinian leader to Paris for treatment.
CNN correspondent Fionnuala Sweeney joins us live from the hospital by telephone.
Any update for us this morning?
FIONNUALA SWEENEY, CNN CORRESPONDENT: Well, Carol, we were to expect a press conference just within the last 15 minutes and within the last five minutes or so, we have been told that that news conference has been postponed.
Now, Yasser Arafat's medical condition was diagnosed. A statement was released on Tuesday to the media in which, as you say, a blood disorder was diagnosed. They effectively ruled out leukemia and said he was doing much better.
But it would appear that some time yesterday evening his condition took a serious turn for the worse and according to a senior Palestinian official I spoke to in the last few minutes, his condition is serious. He is in intensive care and his aides and his delegation here are very concerned about his health.
I am outside the hospital now. We're awaiting an update on this condition. But it would appear that things are not looking as well for the 75-year-old Palestinian leader as they had been 48 hours ago -- Carol.
COSTELLO: And, Fionnuala, we're just getting word from the Associated Press that Yasser Arafat lost consciousness many times throughout the night. He may have lost -- he may be -- or he may still be unconscious right now. We just don't know for sure.
Do you think that those officials from the hospital will come out in a short time and update us?
SWEENEY: Well, I think they'll come out when they have something to say and they know what they want to say. I should also point out that the doctors here are not obliged to release any kind of statement without the family's permission. So they can release a partial statement, but not necessarily a whole statement.
But Palestinian officials I speak to say that they want to see clarity on this issue. They want to see a full statement made and transparency, if not for the media, particularly, but particularly for Palestinian people.
We also know that in the West Bank, that a meeting of the Fatah Legislative Council has been called for and also the PLO Legislative Committee later on this day. As I say, there's a lot of speculation running rife here in Paris as to his condition and I think perhaps just on the side of caution, while his condition is extremely serious, he is in intensive care, it would be wise to wait until that news conference takes place. And we're expecting it at any moment. But obviously we're not the ones making the call as to when it takes place -- Carol.
COSTELLO: Obviously. But we'll get back to you when they come out of the hospital.
Fionnuala Sweeney reporting live from Paris this morning.
Coming up next, a little levity for the losing side. Some Wednesday night quarterbacking on the reasons the two Johns lost the election.
And our e-mail Question of the Morning. The decision is final now. Can the country unite or are we hopelessly divided?
You're watching DAYBREAK for a Thursday.
(COMMERCIAL BREAK)
COSTELLO: We know how exhausted you are after waiting in line to vote, because some people waited up to four or five hours.
MYERS: In the rain, in the wind, in the cold.
COSTELLO: Ohio, yes.
MYERS: There's some good Americans out there.
COSTELLO: Ohio, that's for sure, and that's a good thing.
Some elements of truth crept into David Letterman's Top 10 List of reasons John Kerry lost Tuesday's election. So here's your laugh for the morning. Here's half of them.
(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)
DAVID LETTERMAN, HOST: Number five, should have campaigned more in New Mexico, less in regular Mexico. Regular. (UNINTELLIGIBLE). Regular Mexico. If you look at any map -- Number four, it turns out voters think it's hot that Cheney has a lesbian daughter. Number three, thought America was ready for a lunatic first lady. Number two, voters seem to really like a weak economy and a badly run war. And the number one John Kerry excuse, was distracted by late night erotic phone calls from Bill O'Reilly.
(END VIDEO CLIP)
MYERS: Oh, ba da bing.
COSTELLO: Oh, I needed to laugh this morning. I did.
MYERS: You know what happened, too?
COSTELLO: What?
MYERS: That Washington Redskins thing didn't work.
COSTELLO: No.
MYERS: You know, they lost their game. They were supposed to get a new president. It didn't work.
COSTELLO: Because, oddly enough, they were saying since the Redskins lost and the Boston Red Sox won the World Series, that things were likely -- planets were lining up for John Kerry.
MYERS: Well, the Red Sox won because it was a full lunar eclipse.
COSTELLO: Oh, yes, that's right.
MYERS: We know that. Forget about that.
COSTELLO: That's right. I forgot about that.
Time for our DAYBREAK "Eye-Opener."
As you may be able to tell from the store shelves, it's time to start thinking about Christmas. Look at that.
MYERS: I know, the Christmas Tree Shop is opening up in my neighborhood already.
COSTELLO: I know. This is Santa school in London, Chad.
MYERS: Oh.
COSTELLO: Perspective Santas get their diploma after learning the ins and outs of being the jolly fat man. I thought you were going to have something to say after that.
MYERS: I'm just, I'm staring at these pictures.
COSTELLO: I know. The school's director says untrained Santas are hurting the industry.
MYERS: Oh, absolutely.
COSTELLO: Oh, most definitely.
Elton John is working on a TV sitcom about aging rock and roll superstars. But Sir Elton says it won't be autobiographical. He told "Daily Variety" that the lead character would be a composite of Rod Stewart, Mick Jagger, Freddie Mercury and David Bowie. MYERS: Oh, my.
COSTELLO: Ooh. The show is being developed for ABC.
In Arkansas, one inmate has escaped for the second time. So far, prison guards' handcuffs and even leg shackles have been unable to keep him in custody.
Darrell Phillips of CNN affiliate WNBC has the story from Marion, Arkansas.
(BEGIN VIDEO TAPE)
DARRELL PHILLIPS, WMC-TV CORRESPONDENT (voice-over): Tristian Wilson doesn't like to be locked up and Crittenden County authorities seem to be having trouble holding onto him. The 20-year-old was charged last week with burglarizing a local school. He was in jail here, but not for long.
(on camera): The jail released him after they got a fax. It claimed to come from a judge and police detectives. That was enough for jailers. They let him go.
(voice-over): The problem, the fax was fake.
UNIDENTIFIED MALE: It shows that it came from the McDonald's restaurant.
PHILLIPS: It says, "From McDonald's" right on top.
When police finally found Wilson at this apartment Monday and rearrested him, they discovered other items, evidence from other burglaries. They charged him with seven counts of burglary and theft of property. But Tristian Wilson was apparently not interested in facing the music.
While waiting for a circuit court appearance here at the Crittenden County Courthouse, Wilson escaped again. Hands cuffed and legs shackled, Wilson managed to sneak out an open window and disappear. And it turns out he came right back here, breaking into the apartment where police found him last time.
TINA ROE, APARTMENT MANAGER: He came in, he kicked the door in and ransacked it. He was looking for something.
UNIDENTIFIED MALE: Today?
ROE: Yes. And they don't know what he was looking for, but the officers came to re-arrest him again and he wasn't here.
PHILLIPS: This is what his apartment looked like when Tina Roe showed up to clean and reinforce the doors.
ROE: I guess he had knew they were coming because he had left the phone off the hook and went out the door.
PHILLIPS: It's clear, she says, Tristian Wilson left in a hurry.
(COMMERCIAL BREAK)
COSTELLO: Or he never cleans his home.
MYERS: Really.
COSTELLO: Which really looked more like that to me. But how can a man in leg shackles and handcuffs get out of a window and run away?
MYERS: And if it came from McDonald's, is he the Hamburglar?
You know? That's like holy cow! Ba da bing.
COSTELLO: Remember the ham...
MYERS: Actually, my wife was a Hamburglar for Halloween.
COSTELLO: Was she, really?
MYERS: Yes.
COSTELLO: Oh, for hallow -- I thought you were going to say she worked as the Hamburglar.
MYERS: No. No. No.
COSTELLO: Oh, thank goodness.
That was from Darrell Phillips of CNN affiliate WMC in Marion, Arkansas. Police say they're unsure where Wilson is now, but they do know that his girlfriend works in a nearby McDonald's as the Hamburglar.
MYERS: He looks like this somewhere. If you see a guy that looks like this, with shackles on his legs, too, that's him.
COSTELLO: Ah, it's a crazy world.
MYERS: It is.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
Both allies and adversaries abroad are assessing the implications of four more years of George W. Bush in the Oval Office. Our Diana Muriel will assess the world reaction live from London. You will not believe what are on the front pages there overseas. Incredible.
This is DAYBREAK.
(COMMERCIAL BREAK)
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Aired November 4, 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, Palestinian leader Yasser Arafat's health remains a concern this morning. You're taking a live look at Paris right now, outside of the military hospital where Yasser Arafat is now being treated. We expect someone to come out and say something about Yasser Arafat's condition shortly. When that happens, of course, we'll take you to Paris live again.
A militant group holding three U.N. workers hostage in Afghanistan is said to be in talks with the Afghan government. The group says it wants all Taliban prisoners released.
The jury in the murder trial of Scott Peterson gets back to work this morning in Redwood City, California. Jurors began deliberations yesterday and worked four hours before adjourning.
Flights have now resumed at the airport in Reno, Nevada. Several flights had been canceled or delayed when the FAA conducted repairs on equipment used to guide pilots in poor weather.
To the forecast center to talk only about good weather -- Chad Myers.
CHAD MYERS, CNN METEOROLOGIST: I'm going to have to look for some today.
COSTELLO: Ohio, no.
MYERS: It's going to be a little search.
(WEATHER REPORT)
COSTELLO: All right, we now know who the president will be for the next four years. But what happens next? What are the issues, the challenges?
This morning, we'll look at three major areas of the by presidency.
First, the Supreme Court. Chief Justice William Rehnquist has cancer. Speculation is he and others could step down soon. The president would be the one to nominate their replacements. Then there is the budget. The president says he plans to cut the record deficit in half during his second term, but that is not going to be easy.
And, of course, there is the Bush cabinet -- Rice, Rumsfeld, Powell, Ashcroft, Ridge. There are rumors about changes there, as well.
The president meets with his cabinet just about five hours from now. Then it's off to Camp David for some rest.
We begin this morning with senior White House correspondent John King, who tells us the president is claiming a mandate and preparing for a second term.
(BEGIN VIDEO TAPE)
JOHN KING, CNN CORRESPONDENT: (voice-over): No recount and no doubt about the winner this time, a rowdy Republican celebration, but also an attempt to set a new tone for a second term.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: So today I want to speak to every person who voted for my opponent. To make this nation stronger and better, I will need your support, and I will work to earn it.
KING: But make no mistake, the victors seek bipartisanship, but on their terms, and believe a clear majority of the popular vote and bigger Republican margins in Congress give them the upper hand.
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: President Bush ran forthrightly on a clear agenda for this nation's future and the nation responded by giving him a mandate.
KING: Celebration on this day. Talk of cooperation will be tested early in the new term.
KEN DUBERSTEIN, FORMER REAGAN CHIEF OF STAFF: They'll be campaigning for the history books for a legacy.
KING: The Iraq War still divides the parties, as does a second term agenda that includes tax simplification, health care changes Democrats say fall short and revamping Social Security.
BUSH: I see a great day coming for our country and I am eager for the work ahead.
KING: Senior Bush aides believe the first partisan dust-up could come within weeks. Chief Justice William Rehnquist has cancer and the White House is quietly preparing to name a successor. And cabinet and staff turnover is in the works after a first term noteworthy for stability at the top.
DUBERSTEIN: There will be, in fact, wholesale changes in a second Bush administration.
KING: Gone is the legitimacy debate of 2000, when Mr. Bush won the White House but lost the popular vote.
BUSH: The voters turned out in record numbers and delivered an historic victory.
KING: It was a dramatic turnaround. Early exit polls scooped the White House. And as Mr. Bush watched the votes come in, Ohio met expectations, a nail-biter and the decisive state. Mr. Bush went to bed at 5:00 a.m. confident of reelection.
(on camera): Six hours later, a conversation in the Oval Office, Senator Kerry calling to concede the election, guaranteeing that this President Bush, unlike his father, would get a second term.
John King, CNN, the White House.
(END VIDEO TAPE)
COSTELLO: More about the U.S. Supreme Court now. Chief Justice William Rehnquist is being treated for thyroid cancer. But the senator who might become the new chairman of the Judiciary Committee says if Rehnquist retires, the president has to be very careful with any changes to the court.
(BEGIN VIDEO CLIP)
SEN. ARLEN SPECTER (R-PA), JUDICIARY COMMITTEE: The chief justice is gravely ill and I had known more about that than had appeared in the media. And when he said he was going to be back on Monday, it was known inside that he was not going to be back on Monday. And the full extent of his incapacitation is really not known. When you talk about judges who would change the right of a woman to choose and overturn "Row v. Wade," I think that is unlikely, and I have said that bluntly during the course of the campaign and before.
(END VIDEO CLIP)
COSTELLO: It's also very possible that as many as three other justices could retire during President Bush's second term.
All right, topic number two. The looming question is will anything be done to reduce the record budget deficit?
CNN's Allan Chernoff reports it'll require a little luck and a lot of hard choices.
(BEGIN VIDEO TAPE)
ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): President Bush's plan is to cut the deficit in half during his second term. If the economy were to accelerate, higher tax revenues would help. But many economists say the president has little chance of achieving his goal.
DAVID DIEM, COLUMBIA UNIVERSITY: The trouble is cutting it in half requires some very hard choices and this administration hasn't shown any interest in making those hard choices. CHERNOFF: President Bush inherited a budget surplus, $127 billion in fiscal 2001. The fiscal year that just ended in September had the largest annual deficit in history, $413 billion. The turnaround was the result of increased spending on defense, homeland security, Medicare, Medicaid, as well as the cost to the Treasury of tax cuts.
During his second term, President Bush plans to make the cuts permanent and boost spending for defense, homeland security, aid to farmers and the Medicare prescription drug benefit.
ALLEN SINAI: When we get to 2006, 2007, 2008, particularly 2007 and 2008, an aging population and retiring Baby Boomers are going to make very big demands on the federal budget and that's when the structural deficit is likely to move much higher.
CHERNOFF: Worries about the budget deficit are partly responsible for the dollar losing one fifth of its value during the Bush presidency. The drop reduces the purchasing power of Americans. Imported goods are more costly and it's more expensive to travel overseas. Higher deficits also can boost long-term interest rates and create a burden for future generations to pay off.
Allan Chernoff, CNN Financial News, New York.
(END VIDEO TAPE)
COSTELLO: And some second term shuffling can be expected among President Bush's cabinet.
CNN's Kathleen Koch takes a look at the Washington whispers on who will stay and who will go.
(BEGIN VIDEO TAPE)
UNIDENTIFIED MALE: Ladies and gentlemen, the president of the United States.
KATHLEEN KOCH, CNN CORRESPONDENT: (voice-over): The buzz about the second term Bush cabinet centers on possible changes in the president's national security team, from Secretary of State Colin Powell...
COLIN POWELL, SECRETARY OF STATE: I serve at the pleasure of the president.
KOCH: To Defense Secretary Donald Rumsfeld, who this spring faced calls for his resignation.
BUSH: He's an important part of my Cabinet and he'll stay in my Cabinet.
MICHAEL WEISSKOPF, SENIOR CORRESPONDENT, "TIME" MAGAZINE: I would say that, on the defense side, he'll leave most everyone in place as long as they'll want to stay. I would expect Secretary Powell to move over very quickly, possibly Attorney General Ashcroft, who has been there for four years, had some health problems, might move out, particularly because he was a symbol for the far right.
KOCH: It's rumored National Security Adviser Condoleezza Rice might switch to another role, and there's widespread speculation Homeland Security Secretary Tom Ridge will leave.
ALAN LICHTMAN, PRESIDENTIAL HISTORIAN: So the continuity we saw in the national security and foreign policy team, I think, is going to be replaced by fundamental change, which is quite typical of second term presidents, looking from Eisenhower through Clinton.
KOCH: Other possible departures -- Commerce Secretary Donald Evans, Energy Secretary Spencer Abraham, Education Secretary Roderick Paige and Transportation Secretary Norman Mineta. Important now, say some, is including Democrats.
JACK QUINN, FORMER CLINTON WHITE HOUSE COUNSEL: That's the sort of gesture the president needs to employ to let the American people know that he intends to be a president of the American people and all the American people, and not just the leader of a political faction.
KOCH: Much of the rest of the Bush Cabinet is expected to stay. And some prominent Republicans are clearly reflecting on joining them.
RUDOLPH GIULIANI (R), FORMER MAYOR OF NEW YORK: I'm saying I'm not interested. No, you never say no to the president of the United States. Absolutely not.
KOCH (on camera): So as the hopefuls begin to jockey for position, those who have served plan new lives, often involving more time with their families and more lucrative jobs in the private sector.
Kathleen Koch, CNN, Washington.
(END VIDEO TAPE)
COSTELLO: In his victory speech, President Bush made an attempt to reach out to Kerry supporters and unite the nation. Senator Kerry struck a similar tone in his concession speech.
(BEGIN VIDEO CLIP)
BUSH: A new term is a new opportunity to reach out to the whole nation. We have one country, one constitution and one future that binds us. And when we come together and work together, there is no limit to the greatness of America.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: In the days ahead, we must find common cause. We must join in common effort without remorse or recrimination, without anger or rancor. America is in need of unity and longing for a larger measure of compassion.
(COMMERCIAL BREAK)
COSTELLO: It is a tall order, but get this, the latest CNN/"USA Today"/Gallup poll finds that 57 percent of people polled believe President Bush will be a uniter. 39 percent believe the president will be a divider.
That brings us to our e-mail question for today. Voting is over. The decision is final. Do you think the country can unite? E-mail us at daybreak@cnn.com, daybreak@cnn.com. And, of course, we'll be glad to read your responses on the air because they're always enlightening.
While President Bush serves four more years in the White House, John Kerry returns to four more years in the Senate. Just ahead on DAYBREAK, we'll get an emotional look at how the senator is dealing with defeat.
Also ahead, Palestinians go through difficult times as doctors try to figure out what's wrong with Yasser Arafat.
And the Scott Peterson trial is now in the hands of a jury. We'll look at the decisions they're facing.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It is 5:14.
Ooh, it just turned 5:15 Eastern time.
Here's what's all new this morning.
A series of U.S. air strikes hit fortified insurgent positions around Falluja. Hospital officials in the city say two people were killed, two more were injured. The air strikes are intended to soften up resistance to a possible offensive by American and multinational forces.
Four Merrill Lynch bankers have been convicted of conspiracy and fraud for propping up Enron's bottom line. One former midlevel Enron executive has also been found guilty. It's the first criminal trial stemming from Enron's collapse.
In money news, sales are down for Ford and General Motors. How come? Well, one reason is big incentives offered in September caused a lack of buyers in October. G.M.'s sales fell by 5 percent.
In culture, Tom Hanks is set to receive a special award at tonight's Britannia Awards in Los Angeles. The Britannias are given out by the British Academy of Film and Television. Hanks will be presented the Stanley Kubrick Award for Excellence in Film.
In sports, the NBA's worst team last year began the season with a last second stunner. Guard Steven Francis scored with two tenths of a second left, to lift the Orlando Magic to an opening night victory over the Milwaukee Bucks. To the forecast center now and Chad -- good morning.
MYERS: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you.
Yasser Arafat is in intensive care at a hospital in France. But the condition of the Palestinian leader is in dispute and there is still no report on the cause of the blood disorder that sent the Palestinian leader to Paris for treatment.
CNN correspondent Fionnuala Sweeney joins us live from the hospital by telephone.
Any update for us this morning?
FIONNUALA SWEENEY, CNN CORRESPONDENT: Well, Carol, we were to expect a press conference just within the last 15 minutes and within the last five minutes or so, we have been told that that news conference has been postponed.
Now, Yasser Arafat's medical condition was diagnosed. A statement was released on Tuesday to the media in which, as you say, a blood disorder was diagnosed. They effectively ruled out leukemia and said he was doing much better.
But it would appear that some time yesterday evening his condition took a serious turn for the worse and according to a senior Palestinian official I spoke to in the last few minutes, his condition is serious. He is in intensive care and his aides and his delegation here are very concerned about his health.
I am outside the hospital now. We're awaiting an update on this condition. But it would appear that things are not looking as well for the 75-year-old Palestinian leader as they had been 48 hours ago -- Carol.
COSTELLO: And, Fionnuala, we're just getting word from the Associated Press that Yasser Arafat lost consciousness many times throughout the night. He may have lost -- he may be -- or he may still be unconscious right now. We just don't know for sure.
Do you think that those officials from the hospital will come out in a short time and update us?
SWEENEY: Well, I think they'll come out when they have something to say and they know what they want to say. I should also point out that the doctors here are not obliged to release any kind of statement without the family's permission. So they can release a partial statement, but not necessarily a whole statement.
But Palestinian officials I speak to say that they want to see clarity on this issue. They want to see a full statement made and transparency, if not for the media, particularly, but particularly for Palestinian people.
We also know that in the West Bank, that a meeting of the Fatah Legislative Council has been called for and also the PLO Legislative Committee later on this day. As I say, there's a lot of speculation running rife here in Paris as to his condition and I think perhaps just on the side of caution, while his condition is extremely serious, he is in intensive care, it would be wise to wait until that news conference takes place. And we're expecting it at any moment. But obviously we're not the ones making the call as to when it takes place -- Carol.
COSTELLO: Obviously. But we'll get back to you when they come out of the hospital.
Fionnuala Sweeney reporting live from Paris this morning.
Coming up next, a little levity for the losing side. Some Wednesday night quarterbacking on the reasons the two Johns lost the election.
And our e-mail Question of the Morning. The decision is final now. Can the country unite or are we hopelessly divided?
You're watching DAYBREAK for a Thursday.
(COMMERCIAL BREAK)
COSTELLO: We know how exhausted you are after waiting in line to vote, because some people waited up to four or five hours.
MYERS: In the rain, in the wind, in the cold.
COSTELLO: Ohio, yes.
MYERS: There's some good Americans out there.
COSTELLO: Ohio, that's for sure, and that's a good thing.
Some elements of truth crept into David Letterman's Top 10 List of reasons John Kerry lost Tuesday's election. So here's your laugh for the morning. Here's half of them.
(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)
DAVID LETTERMAN, HOST: Number five, should have campaigned more in New Mexico, less in regular Mexico. Regular. (UNINTELLIGIBLE). Regular Mexico. If you look at any map -- Number four, it turns out voters think it's hot that Cheney has a lesbian daughter. Number three, thought America was ready for a lunatic first lady. Number two, voters seem to really like a weak economy and a badly run war. And the number one John Kerry excuse, was distracted by late night erotic phone calls from Bill O'Reilly.
(END VIDEO CLIP)
MYERS: Oh, ba da bing.
COSTELLO: Oh, I needed to laugh this morning. I did.
MYERS: You know what happened, too?
COSTELLO: What?
MYERS: That Washington Redskins thing didn't work.
COSTELLO: No.
MYERS: You know, they lost their game. They were supposed to get a new president. It didn't work.
COSTELLO: Because, oddly enough, they were saying since the Redskins lost and the Boston Red Sox won the World Series, that things were likely -- planets were lining up for John Kerry.
MYERS: Well, the Red Sox won because it was a full lunar eclipse.
COSTELLO: Oh, yes, that's right.
MYERS: We know that. Forget about that.
COSTELLO: That's right. I forgot about that.
Time for our DAYBREAK "Eye-Opener."
As you may be able to tell from the store shelves, it's time to start thinking about Christmas. Look at that.
MYERS: I know, the Christmas Tree Shop is opening up in my neighborhood already.
COSTELLO: I know. This is Santa school in London, Chad.
MYERS: Oh.
COSTELLO: Perspective Santas get their diploma after learning the ins and outs of being the jolly fat man. I thought you were going to have something to say after that.
MYERS: I'm just, I'm staring at these pictures.
COSTELLO: I know. The school's director says untrained Santas are hurting the industry.
MYERS: Oh, absolutely.
COSTELLO: Oh, most definitely.
Elton John is working on a TV sitcom about aging rock and roll superstars. But Sir Elton says it won't be autobiographical. He told "Daily Variety" that the lead character would be a composite of Rod Stewart, Mick Jagger, Freddie Mercury and David Bowie. MYERS: Oh, my.
COSTELLO: Ooh. The show is being developed for ABC.
In Arkansas, one inmate has escaped for the second time. So far, prison guards' handcuffs and even leg shackles have been unable to keep him in custody.
Darrell Phillips of CNN affiliate WNBC has the story from Marion, Arkansas.
(BEGIN VIDEO TAPE)
DARRELL PHILLIPS, WMC-TV CORRESPONDENT (voice-over): Tristian Wilson doesn't like to be locked up and Crittenden County authorities seem to be having trouble holding onto him. The 20-year-old was charged last week with burglarizing a local school. He was in jail here, but not for long.
(on camera): The jail released him after they got a fax. It claimed to come from a judge and police detectives. That was enough for jailers. They let him go.
(voice-over): The problem, the fax was fake.
UNIDENTIFIED MALE: It shows that it came from the McDonald's restaurant.
PHILLIPS: It says, "From McDonald's" right on top.
When police finally found Wilson at this apartment Monday and rearrested him, they discovered other items, evidence from other burglaries. They charged him with seven counts of burglary and theft of property. But Tristian Wilson was apparently not interested in facing the music.
While waiting for a circuit court appearance here at the Crittenden County Courthouse, Wilson escaped again. Hands cuffed and legs shackled, Wilson managed to sneak out an open window and disappear. And it turns out he came right back here, breaking into the apartment where police found him last time.
TINA ROE, APARTMENT MANAGER: He came in, he kicked the door in and ransacked it. He was looking for something.
UNIDENTIFIED MALE: Today?
ROE: Yes. And they don't know what he was looking for, but the officers came to re-arrest him again and he wasn't here.
PHILLIPS: This is what his apartment looked like when Tina Roe showed up to clean and reinforce the doors.
ROE: I guess he had knew they were coming because he had left the phone off the hook and went out the door.
PHILLIPS: It's clear, she says, Tristian Wilson left in a hurry.
(COMMERCIAL BREAK)
COSTELLO: Or he never cleans his home.
MYERS: Really.
COSTELLO: Which really looked more like that to me. But how can a man in leg shackles and handcuffs get out of a window and run away?
MYERS: And if it came from McDonald's, is he the Hamburglar?
You know? That's like holy cow! Ba da bing.
COSTELLO: Remember the ham...
MYERS: Actually, my wife was a Hamburglar for Halloween.
COSTELLO: Was she, really?
MYERS: Yes.
COSTELLO: Oh, for hallow -- I thought you were going to say she worked as the Hamburglar.
MYERS: No. No. No.
COSTELLO: Oh, thank goodness.
That was from Darrell Phillips of CNN affiliate WMC in Marion, Arkansas. Police say they're unsure where Wilson is now, but they do know that his girlfriend works in a nearby McDonald's as the Hamburglar.
MYERS: He looks like this somewhere. If you see a guy that looks like this, with shackles on his legs, too, that's him.
COSTELLO: Ah, it's a crazy world.
MYERS: It is.
COSTELLO: Here's what's all new in the next half hour of DAYBREAK.
Both allies and adversaries abroad are assessing the implications of four more years of George W. Bush in the Oval Office. Our Diana Muriel will assess the world reaction live from London. You will not believe what are on the front pages there overseas. Incredible.
This is DAYBREAK.
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