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CNN Live At Daybreak

Palestinian Leader Yasser Arafat Slips into Coma; Jury in Murder Trial of Scott Peterson Gets Back to Work This Morning

Aired November 04, 2004 - 06:00   ET

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


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


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

Now in the news, word in to CNN in the last half hour, Palestinian leader Yasser Arafat has slipped into a coma at a Paris hospital. That's according to a senior Palestinian official. You're taking a live look at that Paris hospital. We're going to -- we're expecting doctors to come out to tell us something about Yasser Arafat's condition. Hopefully they will shortly.

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 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 now and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Four more years of George Bush, that is something a majority of Americans are looking forward to. A CNN/"USA Today"/Gallup poll finds 51 percent of Americans surveyed are pleased by the outcome of Tuesday's election. 38 percent describe themselves as upset. 9 percent say it doesn't matter.

The president is scheduled to meet with his cabinet about four hours from now, before heading out later for Camp David. President Bush calls his second term an opportunity to reach out to the whole nation.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: America has spoken and I'm humbled by the trust and the confidence of my fellow citizens.

(END VIDEO CLIP)

COSTELLO: The president's comments came about an hour after John Kerry conceded defeat in Boston. Kerry told a crowd he may not be the nation's next president, but that would not keep him from trying to make the nation better. 80 percent of those surveyed in our CNN/"USA Today"/Gallup poll agree with Kerry's decision to concede the election rather than to initiate a legal challenge.

President Bush could face some history making decisions regarding the Supreme Court during his second term. At least three justices could be looking at leaving the bench.

Pennsylvania Republican Arlen Specter is expected to chair the Senate Judiciary Committee next term. Specter's advice to the White House? Don't nominate any nominees who are too conservative to win confirmation.

(BEGIN VIDEO CLIP)

SEN. ARLEN SPECTER (R-PA), JUDICIARY COMMITTEE: We start off with a basic fact that the Democrats have filibustered and you can expect them to filibuster if the nominees are not within the broad range of acceptability. And I think there is a very broad range of presidential discretion, but there is a range.

(END VIDEO CLIP)

COSTELLO: However, Republicans will control 55 seats in the new Senate. Majority Leader Bill Frist has confidence that Bush judicial nominees will have more success in the second term.

CNN's Bob Franken eyes the future of the Supreme Court.

(BEGIN VIDEO TAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: (voice-over: It is premature to assume that William Rehnquist, the chief justice, will not be able to swear in President Bush once more.

BUSH: I, George Walker Bush do solemnly swear.

WILLIAM REHNQUIST, CHIEF JUSTICE OF THE SUPREME COURT: That I will faithfully execute the office of president of the United States.

FRANKEN: But he has been too ill to take his place on the bench this week, increasing already intense speculation the Supreme Court could change dramatically during a second Bush term.

UNIDENTIFIED PROTESTERS: Women must decide our fate!

FRANKEN: Abortion is the court flash point. A change could affect many issues.

THOMAS GOLDSTEIN, SUPREME COURT ATTORNEY: There's likely to be more restriction on abortion. There's likely to be less affirmative action. There's likely to be more involvement with the government in religion.

FRANKEN: If Rehnquist were to step down, Bush would almost certainly nominate another conservative to replace him. But the oldest justice, John Paul Stevens, is the court's leading liberal. Ruth Bader Ginsburg, also considered liberal, has had health problems, as has Sandra Day O'Connor, the powerful so-called swing vote. There's speculation she might retire, but also speculation she'd be a consensus candidate for chief justice.

An increasingly Republican Senate might embolden the president to nominate conservatives in the mold of Justices Clarence Thomas or Antonin Scalia. Liberal groups are already gearing up for a Senate confirmation fight.

RALPH NEAS, PRESIDENT, PEOPLE FOR THE AMERICAN WAY: My guess is there will be a long confrontation that will be really at the highest levels in terms of the issues at stake.

FRANKEN (on camera): Any nomination fight could easily last for months. Judicial appointments, after all, are considered to be a president's most lasting legacy.

Bob Franken, CNN, the Supreme Court.

(END VIDEO TAPE)

COSTELLO: Overseas now to a developing story and to more questions about Yasser Arafat's health.

CNN has now confirmed the Palestinian leader is in a coma right now. He's in intensive care at a French military hospital after being airlifted there last week.

Our Fionnuala Sweeney is at the hospital.

She joins us live.

Have doctors come out at all?

FIONNUALA SWEENEY, CNN CORRESPONDENT: No, a news conference, Carol, was expected an hour ago and that has yet to take place. And that was to give an update on Yasser Arafat's medical condition. There are very many conflicting reports and, indeed, very many terms that are being floated around, including the term coma, as you mentioned.

Now, what officials are saying is that he has definitely been in and out of consciousness. Somewhere around 3:00 this morning local time he did lose consciousness. But these people who are giving this -- giving us this information as to whether he has a coma or not, using that term, the word coma, they're not doctors. It is a medical term.

And so what we are all doing here is awaiting a news conference, which is more than an hour delayed now, as to the state of Yasser Arafat's health. What aides have been telling me, senior aides here in the Palestinian delegation, is that he is in a critical condition. He had been undergoing tests yesterday when he didn't feel good after those tests and there was a deterioration in his health yesterday evening. But that was accelerated at around 3:00 this morning.

He has been taken to intensive care and he is receiving, by all accounts, around the clock treatment -- Carol.

COSTELLO: Why has it been so difficult for doctors to figure out what exactly is wrong with Yasser Arafat?

SWEENEY: When he arrived here last Friday, he was quite an ill man. And they were able to -- he was able to undergo some medical tests. By all accounts, he is not well enough to undergo further medical tests until Tuesday or Wednesday. What the doctors have said is that he has a low white cell count, a low platelet count in his blood. But they effectively ruled out leukemia in a statement issued on Tuesday. But then saying that he was now well enough and there had been a general improvement in his demeanor and well being to undergo further tests, particularly tests on perhaps a digestive malfunction, as they described it, a digestive abnormality. And it would appear that some time after undergoing these tests yesterday, there was a deterioration in his health.

And I should point out that while we don't really know, the condition hasn't been diagnosed, it's partly because he's still undergoing tests, but also because, we should point out, that doctors here aren't obliged to release a full statement about what is really going on with him. But there seems to be a sense here among Palestinian officials that they would like a statement to be issued. They would like to see some transparency, if not for the media, but for the Palestinian people, as to the condition.

But until we have that news conference, which we're expecting at any time, it would be really sort of rather rash of me to speculate any further -- Carol.

COSTELLO: Fionnuala Sweeney reporting live from Paris this morning.

Thank you.

Whether it's business or pleasure, staying at a hotel, oh, is it going to cost you, big time. We'll look at the soaring room rates across the country. Can you really find a good deal?

One day later both President Bush and Senator Kerry are calling for unity. But what can be done to repair the rift between Americans? At 15 minutes past the hour, we will debate that issue.

And at 43 minutes past, we'll talk to our legal expert, Kendall Coffey, about the work ahead for the jurors in the Scott Peterson double murder case.

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

(COMMERCIAL BREAK)

COSTELLO: Time now for a little "Business Buzz."

Are you planning a winter vacation? Well, expect to pay more for your hotel room.

Carrie Lee has details on that, live from the NASDAQ market site.

So how much more?

CARRIE LEE, CNN CORRESPONDENT: Carol, in some places, in the double digits. Take a look at New York hotel room rates on average. And we're seeing a 12.2 percent increase over the year ago period. This in "USA Today" reporting. Also, other cities. Washington up over 6 percent; even Atlanta, up over 3 percent. And this is something that's affecting not only business travelers, but leisure travelers, as well.

Hotel room rates across the country, but especially here in New York, really dropped off after 9/11 and so we knew it was going to happen sooner or later. When the economy starts picking up, when people start traveling more, prices are going up, as well.

Yesterday, the "Wall Street Journal" reporting that travel agents and industry execs say bookings also for the Christmas holiday period are at their highest level in four years. The fact that Christmas and New Year's Day both fall on a weekend this year means a lot of people are going to be traveling this holiday season. So that's going to up demand, as well.

So bottom line, hotel rooms going up. And, according to a National Business Travel Association, hotel room costs expected to gain 7 1/2 percent next year versus a 5 percent hike for airlines. So people need to be prepared for this -- Carol.

COSTELLO: So Merry Christmas, everyone.

LEE: Hey, if you can get away to a warm destination, though, in the first place, you can't really complaint, right?

COSTELLO: No. That means you can afford to pay that extra money.

LEE: That's right.

COSTELLO: Carrie Lee live from the NASDAQ market site.

LEE: OK.

COSTELLO: Your news, money, weather and sports.

It's 6:13 Eastern.

Here's what's all new this morning. We are learning more this morning. Palestinian leader Yasser Arafat is very ill, gravely ill. He's now slipped into a coma. Sources tell CNN that Arafat slipped into that coma some time last night. The 75-year-old Arafat left his compound last week to seek treatment here. We'll take you to a live look at the hospital in Paris. He's being treated there for his illness.

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. 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 new season with a last second stunner. Guard Steve Francis scored with two tenths of a second left, to lift the Orlando Magic to an opening night victory over the Milwaukee Bucks.

Good morning -- Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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

There is a lot of talk about uniting a divided country. President Bush and Senator Kerry both mentioned how important that is. They seem sincere. But as you know, actions speak louder than words.

Let's head live to Washington to our political analyst, Ron Brownstein.

Oh, you're in Los Angeles this morning -- Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning.

I was listening to all those rain forecasts saying, you know, that's waiting for me when I come back.

COSTELLO: Oh, yes.

BROWNSTEIN: All right.

COSTELLO: First of all, Ron, let's listen to what these two men had to say about unity.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: 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.

(END VIDEO CLIP)

COSTELLO: But, you know, Ron, talk is cheap.

BROWNSTEIN: Absolutely. And, in fact, that talk is very reminiscent of what we heard from George W. Bush and Al Gore immediately after the 2000 election, which, again, divided the country even more closely than this one.

You know, President Bush, as governor of Texas, did, in fact, work very closely across party lines and created a less partisan atmosphere. In Washington, his strategy has been different, generally. Apart from a couple of bills, like his education reform bill right out of the bat in 2001, he has primarily governed by maximizing unity among Republicans, both in Congress and the country, at the price of accepting a great deal of polarization.

Now, will he change his strategy, having been reelected with a larger margin, a somewhat larger margin than he had in 2000 and having a larger Republican majority in Congress that is going to have priorities of its own, which tend to pit it against Democrats? I think it's very hard to see that happening.

It's obviously there if the president wants to move in that direction. But it would be a significant change in his political strategy.

COSTELLO: If he chooses to be a uniter as far as the American populace is concerned, it's going to be a big job. We've been soliciting e-mails this morning, Ron. I want to read you two that really get to the point of this matter.

BROWNSTEIN: Sure.

COSTELLO: This is from Eric (ph). He says: "The question isn't can the country unite, the question is should the country unite. Why should I, as a liberal New Yorker, unite with a West Virginia Christian evangelical when our values are so at odds? Why would I unite with someone who thinks I am a godless pervert who hates America? What's to unite?"

And listen to this from Jerry (ph) from Maryland. He says, "Yes, I do believe the country can unite, but the Democratic Party must understand the United States has values and morals that are different from their beliefs. If the Democrats are representatives of the people, they need to represent the people's values, as well, not try to change them to fit their liberal, no holds barred, open-ended, anything goes morals." how can you unite people who have...

BROWNSTEIN: Other than that, can't we all just get along?

COSTELLO: Exactly.

BROWNSTEIN: That's fabulous. But look, you know, in fact, one of the reasons why it is tougher for the parties to come together is because their coalitions are increasingly based on cultural attitudes. And we saw in this election of 2004, as in 2000, that values are a much clearer predictor of how people vote than interests. Class really isn't as much of a signpost anymore and you have people of enormously different values on social issues, but which also radiate beyond those.

I mean politically speaking, Carol, the war is a social issue, the war in Iraq. It divides people the same way that something like abortion or gay marriage does, very similar lines. And, again, I mean when you see those attitudes, it is -- each side is increasingly responsive to a base that has those views. Not everybody. But obviously there is -- that reflects a broader sentiment. And it does make it harder to come together.

I mean part of President Bush's problem is that, as I said, he now has this bigger Republican majority in Congress that is largely responsive to a base with, a substantial portion of which has views as in that e-mail and their priorities are not necessarily ones that will lead him...

COSTELLO: So, Ron...

BROWNSTEIN: ... toward reaching those...

COSTELLO: In saying...

BROWNSTEIN: ... that voter in New York.

COSTELLO: ... you talk about unifying, who will be the one to step forward to do that, to...

BROWNSTEIN: The president, in our system, is the only one. I mean Congress, the way that the -- the way the House, as you know, the way the House is elected now, the district's a gerrymander and they're very, very partisan. You have a bigger chance, most members of Congress, of being defeated in a primary for not being purist enough than you have for being defeated in a general election for, you know, for not reaching across party lines enough.

And the Senate, I think, increasingly follows that pattern. The president in our system is the only one who can, you know, change the tone in Washington. And how important is it that President Bush relative, relative to passing his priorities as unaltered as possible? Compromise is possible, but it has a cost. It requires you to give up on some of what you want to do in the name of reaching across party lines. And we'll see.

In the first term, there were very few issues where President Bush was willing to make that trade. We'll see whether it's different in the second.

COSTELLO: Yes, we will.

Ron Brownstein live from Los Angeles this morning.

Thank you.

This is DAYBREAK.

We'll be back in a minute.

(BEGIN VIDEO CLIP)

WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": There have been a number of studies done that show that when people use credit cards, they tend to spend more than when they operate on a cash basis. Put away the credit cards for a while and just did everything on cash and you're much more conscious, you're much more aware of having to go the cash machine and how much cash you're going through.

So if you do that on a regular basis and try to pay for more things with cash you'll be much more attuned to how much you're spending, and, I think, you'll be much more apt to spend less.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COSTELLO: The U.S. military launches more air strikes today in Falluja, destroying several barricaded fighting positions in the strikes. An official at the Falluja Hospital says two people were killed in that attack. Also, a mother and her young son are being treated for serious injuries. Relatives say they were injured in the air strikes. A doctor says the little boy lost his leg.

Marines in Iraq are mourning the deaths of eight of their comrades killed near Falluja just days ago.

Our Karl Penhaul reports on the memorial service for those fallen soldiers.

(BEGIN VIDEO TAPE)

KARL PENHAUL, CNN CORRESPONDENT (voice-over): Remembering fallen comrades. A memorial service for eight U.S. Marines killed in a suicide car bomb attack this past weekend.

UNIDENTIFIED MALE: A time to love and a time to hate. A time for war and a time for peace.

PENHAUL: Hardened warriors paying tribute to dead buddies.

UNIDENTIFIED MALE: He never wanted to be here in the first place. But now he's in a better place, a place where there's no fear.

PENHAUL: These Marines begin piecing together memories of the ones they've lost.

Sergeant Kelley Courtney loved to write poems. Lance Corporal John Byrd, a motorcycle fanatic. Lance Corporal Michael Scarborough dreamed of running a logging company. Lance Corporal Travis Fox, full of Southern charm. Private First Class John Lukac took pride in his shooting ability. Lance Corporal Andy Riedel, a great Marine and a better man. Lance Corporal Jeremy Bow, a devout Mormon, great machine gunner. Corporal Chris Lapka quit college to serve his country.

The survivors of that Iraqi insurgent attack unafraid to show raw emotions.

UNIDENTIFIED MALE: It breaks my heart to lose one of my brothers. It happened so fast and it's very shocking. And I know you guys are going through the same pain.

PENHAUL (on camera): The attack took place Saturday a few miles east of here. A Marine truck like this one had broken down and was being towed when a suicide bomber drove an SUV into the middle of a convoy.

(voice-over): This Navy medic was blown out of the truck but survived with second degree burns.

UNIDENTIFIED MALE: I looked back and the vehicle was on fire. And I saw some of my buddies still laying down on the vehicle.

PENHAUL: Now, as these Marines wait for the order to storm the rebel stronghold of Falluja, they're battling with sadness and rage.

UNIDENTIFIED MALE: He'd want us to burn Falluja down for what those bastards did to him and that's exactly what's going to happen.

PENHAUL: Officers call on them to focus the anger. And as they pray for fallen friends, they have time to reflect, too, on their own mortality.

Karl Penhaul, CNN, near Falluja.

(END VIDEO TAPE)

COSTELLO: It is rare that we see photos of the flag-draped coffins of U.S. soldiers. This photo was taken by a photographer for the "Army Times," as these caskets were returned from Iraq to Kuwait.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

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Aired November 4, 2004 - 06:00   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, word in to CNN in the last half hour, Palestinian leader Yasser Arafat has slipped into a coma at a Paris hospital. That's according to a senior Palestinian official. You're taking a live look at that Paris hospital. We're going to -- we're expecting doctors to come out to tell us something about Yasser Arafat's condition. Hopefully they will shortly.

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 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 now and Chad -- good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Four more years of George Bush, that is something a majority of Americans are looking forward to. A CNN/"USA Today"/Gallup poll finds 51 percent of Americans surveyed are pleased by the outcome of Tuesday's election. 38 percent describe themselves as upset. 9 percent say it doesn't matter.

The president is scheduled to meet with his cabinet about four hours from now, before heading out later for Camp David. President Bush calls his second term an opportunity to reach out to the whole nation.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: America has spoken and I'm humbled by the trust and the confidence of my fellow citizens.

(END VIDEO CLIP)

COSTELLO: The president's comments came about an hour after John Kerry conceded defeat in Boston. Kerry told a crowd he may not be the nation's next president, but that would not keep him from trying to make the nation better. 80 percent of those surveyed in our CNN/"USA Today"/Gallup poll agree with Kerry's decision to concede the election rather than to initiate a legal challenge.

President Bush could face some history making decisions regarding the Supreme Court during his second term. At least three justices could be looking at leaving the bench.

Pennsylvania Republican Arlen Specter is expected to chair the Senate Judiciary Committee next term. Specter's advice to the White House? Don't nominate any nominees who are too conservative to win confirmation.

(BEGIN VIDEO CLIP)

SEN. ARLEN SPECTER (R-PA), JUDICIARY COMMITTEE: We start off with a basic fact that the Democrats have filibustered and you can expect them to filibuster if the nominees are not within the broad range of acceptability. And I think there is a very broad range of presidential discretion, but there is a range.

(END VIDEO CLIP)

COSTELLO: However, Republicans will control 55 seats in the new Senate. Majority Leader Bill Frist has confidence that Bush judicial nominees will have more success in the second term.

CNN's Bob Franken eyes the future of the Supreme Court.

(BEGIN VIDEO TAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: (voice-over: It is premature to assume that William Rehnquist, the chief justice, will not be able to swear in President Bush once more.

BUSH: I, George Walker Bush do solemnly swear.

WILLIAM REHNQUIST, CHIEF JUSTICE OF THE SUPREME COURT: That I will faithfully execute the office of president of the United States.

FRANKEN: But he has been too ill to take his place on the bench this week, increasing already intense speculation the Supreme Court could change dramatically during a second Bush term.

UNIDENTIFIED PROTESTERS: Women must decide our fate!

FRANKEN: Abortion is the court flash point. A change could affect many issues.

THOMAS GOLDSTEIN, SUPREME COURT ATTORNEY: There's likely to be more restriction on abortion. There's likely to be less affirmative action. There's likely to be more involvement with the government in religion.

FRANKEN: If Rehnquist were to step down, Bush would almost certainly nominate another conservative to replace him. But the oldest justice, John Paul Stevens, is the court's leading liberal. Ruth Bader Ginsburg, also considered liberal, has had health problems, as has Sandra Day O'Connor, the powerful so-called swing vote. There's speculation she might retire, but also speculation she'd be a consensus candidate for chief justice.

An increasingly Republican Senate might embolden the president to nominate conservatives in the mold of Justices Clarence Thomas or Antonin Scalia. Liberal groups are already gearing up for a Senate confirmation fight.

RALPH NEAS, PRESIDENT, PEOPLE FOR THE AMERICAN WAY: My guess is there will be a long confrontation that will be really at the highest levels in terms of the issues at stake.

FRANKEN (on camera): Any nomination fight could easily last for months. Judicial appointments, after all, are considered to be a president's most lasting legacy.

Bob Franken, CNN, the Supreme Court.

(END VIDEO TAPE)

COSTELLO: Overseas now to a developing story and to more questions about Yasser Arafat's health.

CNN has now confirmed the Palestinian leader is in a coma right now. He's in intensive care at a French military hospital after being airlifted there last week.

Our Fionnuala Sweeney is at the hospital.

She joins us live.

Have doctors come out at all?

FIONNUALA SWEENEY, CNN CORRESPONDENT: No, a news conference, Carol, was expected an hour ago and that has yet to take place. And that was to give an update on Yasser Arafat's medical condition. There are very many conflicting reports and, indeed, very many terms that are being floated around, including the term coma, as you mentioned.

Now, what officials are saying is that he has definitely been in and out of consciousness. Somewhere around 3:00 this morning local time he did lose consciousness. But these people who are giving this -- giving us this information as to whether he has a coma or not, using that term, the word coma, they're not doctors. It is a medical term.

And so what we are all doing here is awaiting a news conference, which is more than an hour delayed now, as to the state of Yasser Arafat's health. What aides have been telling me, senior aides here in the Palestinian delegation, is that he is in a critical condition. He had been undergoing tests yesterday when he didn't feel good after those tests and there was a deterioration in his health yesterday evening. But that was accelerated at around 3:00 this morning.

He has been taken to intensive care and he is receiving, by all accounts, around the clock treatment -- Carol.

COSTELLO: Why has it been so difficult for doctors to figure out what exactly is wrong with Yasser Arafat?

SWEENEY: When he arrived here last Friday, he was quite an ill man. And they were able to -- he was able to undergo some medical tests. By all accounts, he is not well enough to undergo further medical tests until Tuesday or Wednesday. What the doctors have said is that he has a low white cell count, a low platelet count in his blood. But they effectively ruled out leukemia in a statement issued on Tuesday. But then saying that he was now well enough and there had been a general improvement in his demeanor and well being to undergo further tests, particularly tests on perhaps a digestive malfunction, as they described it, a digestive abnormality. And it would appear that some time after undergoing these tests yesterday, there was a deterioration in his health.

And I should point out that while we don't really know, the condition hasn't been diagnosed, it's partly because he's still undergoing tests, but also because, we should point out, that doctors here aren't obliged to release a full statement about what is really going on with him. But there seems to be a sense here among Palestinian officials that they would like a statement to be issued. They would like to see some transparency, if not for the media, but for the Palestinian people, as to the condition.

But until we have that news conference, which we're expecting at any time, it would be really sort of rather rash of me to speculate any further -- Carol.

COSTELLO: Fionnuala Sweeney reporting live from Paris this morning.

Thank you.

Whether it's business or pleasure, staying at a hotel, oh, is it going to cost you, big time. We'll look at the soaring room rates across the country. Can you really find a good deal?

One day later both President Bush and Senator Kerry are calling for unity. But what can be done to repair the rift between Americans? At 15 minutes past the hour, we will debate that issue.

And at 43 minutes past, we'll talk to our legal expert, Kendall Coffey, about the work ahead for the jurors in the Scott Peterson double murder case.

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

(COMMERCIAL BREAK)

COSTELLO: Time now for a little "Business Buzz."

Are you planning a winter vacation? Well, expect to pay more for your hotel room.

Carrie Lee has details on that, live from the NASDAQ market site.

So how much more?

CARRIE LEE, CNN CORRESPONDENT: Carol, in some places, in the double digits. Take a look at New York hotel room rates on average. And we're seeing a 12.2 percent increase over the year ago period. This in "USA Today" reporting. Also, other cities. Washington up over 6 percent; even Atlanta, up over 3 percent. And this is something that's affecting not only business travelers, but leisure travelers, as well.

Hotel room rates across the country, but especially here in New York, really dropped off after 9/11 and so we knew it was going to happen sooner or later. When the economy starts picking up, when people start traveling more, prices are going up, as well.

Yesterday, the "Wall Street Journal" reporting that travel agents and industry execs say bookings also for the Christmas holiday period are at their highest level in four years. The fact that Christmas and New Year's Day both fall on a weekend this year means a lot of people are going to be traveling this holiday season. So that's going to up demand, as well.

So bottom line, hotel rooms going up. And, according to a National Business Travel Association, hotel room costs expected to gain 7 1/2 percent next year versus a 5 percent hike for airlines. So people need to be prepared for this -- Carol.

COSTELLO: So Merry Christmas, everyone.

LEE: Hey, if you can get away to a warm destination, though, in the first place, you can't really complaint, right?

COSTELLO: No. That means you can afford to pay that extra money.

LEE: That's right.

COSTELLO: Carrie Lee live from the NASDAQ market site.

LEE: OK.

COSTELLO: Your news, money, weather and sports.

It's 6:13 Eastern.

Here's what's all new this morning. We are learning more this morning. Palestinian leader Yasser Arafat is very ill, gravely ill. He's now slipped into a coma. Sources tell CNN that Arafat slipped into that coma some time last night. The 75-year-old Arafat left his compound last week to seek treatment here. We'll take you to a live look at the hospital in Paris. He's being treated there for his illness.

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. 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 new season with a last second stunner. Guard Steve Francis scored with two tenths of a second left, to lift the Orlando Magic to an opening night victory over the Milwaukee Bucks.

Good morning -- Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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

There is a lot of talk about uniting a divided country. President Bush and Senator Kerry both mentioned how important that is. They seem sincere. But as you know, actions speak louder than words.

Let's head live to Washington to our political analyst, Ron Brownstein.

Oh, you're in Los Angeles this morning -- Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning.

I was listening to all those rain forecasts saying, you know, that's waiting for me when I come back.

COSTELLO: Oh, yes.

BROWNSTEIN: All right.

COSTELLO: First of all, Ron, let's listen to what these two men had to say about unity.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: 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.

(END VIDEO CLIP)

COSTELLO: But, you know, Ron, talk is cheap.

BROWNSTEIN: Absolutely. And, in fact, that talk is very reminiscent of what we heard from George W. Bush and Al Gore immediately after the 2000 election, which, again, divided the country even more closely than this one.

You know, President Bush, as governor of Texas, did, in fact, work very closely across party lines and created a less partisan atmosphere. In Washington, his strategy has been different, generally. Apart from a couple of bills, like his education reform bill right out of the bat in 2001, he has primarily governed by maximizing unity among Republicans, both in Congress and the country, at the price of accepting a great deal of polarization.

Now, will he change his strategy, having been reelected with a larger margin, a somewhat larger margin than he had in 2000 and having a larger Republican majority in Congress that is going to have priorities of its own, which tend to pit it against Democrats? I think it's very hard to see that happening.

It's obviously there if the president wants to move in that direction. But it would be a significant change in his political strategy.

COSTELLO: If he chooses to be a uniter as far as the American populace is concerned, it's going to be a big job. We've been soliciting e-mails this morning, Ron. I want to read you two that really get to the point of this matter.

BROWNSTEIN: Sure.

COSTELLO: This is from Eric (ph). He says: "The question isn't can the country unite, the question is should the country unite. Why should I, as a liberal New Yorker, unite with a West Virginia Christian evangelical when our values are so at odds? Why would I unite with someone who thinks I am a godless pervert who hates America? What's to unite?"

And listen to this from Jerry (ph) from Maryland. He says, "Yes, I do believe the country can unite, but the Democratic Party must understand the United States has values and morals that are different from their beliefs. If the Democrats are representatives of the people, they need to represent the people's values, as well, not try to change them to fit their liberal, no holds barred, open-ended, anything goes morals." how can you unite people who have...

BROWNSTEIN: Other than that, can't we all just get along?

COSTELLO: Exactly.

BROWNSTEIN: That's fabulous. But look, you know, in fact, one of the reasons why it is tougher for the parties to come together is because their coalitions are increasingly based on cultural attitudes. And we saw in this election of 2004, as in 2000, that values are a much clearer predictor of how people vote than interests. Class really isn't as much of a signpost anymore and you have people of enormously different values on social issues, but which also radiate beyond those.

I mean politically speaking, Carol, the war is a social issue, the war in Iraq. It divides people the same way that something like abortion or gay marriage does, very similar lines. And, again, I mean when you see those attitudes, it is -- each side is increasingly responsive to a base that has those views. Not everybody. But obviously there is -- that reflects a broader sentiment. And it does make it harder to come together.

I mean part of President Bush's problem is that, as I said, he now has this bigger Republican majority in Congress that is largely responsive to a base with, a substantial portion of which has views as in that e-mail and their priorities are not necessarily ones that will lead him...

COSTELLO: So, Ron...

BROWNSTEIN: ... toward reaching those...

COSTELLO: In saying...

BROWNSTEIN: ... that voter in New York.

COSTELLO: ... you talk about unifying, who will be the one to step forward to do that, to...

BROWNSTEIN: The president, in our system, is the only one. I mean Congress, the way that the -- the way the House, as you know, the way the House is elected now, the district's a gerrymander and they're very, very partisan. You have a bigger chance, most members of Congress, of being defeated in a primary for not being purist enough than you have for being defeated in a general election for, you know, for not reaching across party lines enough.

And the Senate, I think, increasingly follows that pattern. The president in our system is the only one who can, you know, change the tone in Washington. And how important is it that President Bush relative, relative to passing his priorities as unaltered as possible? Compromise is possible, but it has a cost. It requires you to give up on some of what you want to do in the name of reaching across party lines. And we'll see.

In the first term, there were very few issues where President Bush was willing to make that trade. We'll see whether it's different in the second.

COSTELLO: Yes, we will.

Ron Brownstein live from Los Angeles this morning.

Thank you.

This is DAYBREAK.

We'll be back in a minute.

(BEGIN VIDEO CLIP)

WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": There have been a number of studies done that show that when people use credit cards, they tend to spend more than when they operate on a cash basis. Put away the credit cards for a while and just did everything on cash and you're much more conscious, you're much more aware of having to go the cash machine and how much cash you're going through.

So if you do that on a regular basis and try to pay for more things with cash you'll be much more attuned to how much you're spending, and, I think, you'll be much more apt to spend less.

(END VIDEO CLIP)

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COSTELLO: The U.S. military launches more air strikes today in Falluja, destroying several barricaded fighting positions in the strikes. An official at the Falluja Hospital says two people were killed in that attack. Also, a mother and her young son are being treated for serious injuries. Relatives say they were injured in the air strikes. A doctor says the little boy lost his leg.

Marines in Iraq are mourning the deaths of eight of their comrades killed near Falluja just days ago.

Our Karl Penhaul reports on the memorial service for those fallen soldiers.

(BEGIN VIDEO TAPE)

KARL PENHAUL, CNN CORRESPONDENT (voice-over): Remembering fallen comrades. A memorial service for eight U.S. Marines killed in a suicide car bomb attack this past weekend.

UNIDENTIFIED MALE: A time to love and a time to hate. A time for war and a time for peace.

PENHAUL: Hardened warriors paying tribute to dead buddies.

UNIDENTIFIED MALE: He never wanted to be here in the first place. But now he's in a better place, a place where there's no fear.

PENHAUL: These Marines begin piecing together memories of the ones they've lost.

Sergeant Kelley Courtney loved to write poems. Lance Corporal John Byrd, a motorcycle fanatic. Lance Corporal Michael Scarborough dreamed of running a logging company. Lance Corporal Travis Fox, full of Southern charm. Private First Class John Lukac took pride in his shooting ability. Lance Corporal Andy Riedel, a great Marine and a better man. Lance Corporal Jeremy Bow, a devout Mormon, great machine gunner. Corporal Chris Lapka quit college to serve his country.

The survivors of that Iraqi insurgent attack unafraid to show raw emotions.

UNIDENTIFIED MALE: It breaks my heart to lose one of my brothers. It happened so fast and it's very shocking. And I know you guys are going through the same pain.

PENHAUL (on camera): The attack took place Saturday a few miles east of here. A Marine truck like this one had broken down and was being towed when a suicide bomber drove an SUV into the middle of a convoy.

(voice-over): This Navy medic was blown out of the truck but survived with second degree burns.

UNIDENTIFIED MALE: I looked back and the vehicle was on fire. And I saw some of my buddies still laying down on the vehicle.

PENHAUL: Now, as these Marines wait for the order to storm the rebel stronghold of Falluja, they're battling with sadness and rage.

UNIDENTIFIED MALE: He'd want us to burn Falluja down for what those bastards did to him and that's exactly what's going to happen.

PENHAUL: Officers call on them to focus the anger. And as they pray for fallen friends, they have time to reflect, too, on their own mortality.

Karl Penhaul, CNN, near Falluja.

(END VIDEO TAPE)

COSTELLO: It is rare that we see photos of the flag-draped coffins of U.S. soldiers. This photo was taken by a photographer for the "Army Times," as these caskets were returned from Iraq to Kuwait.

DAYBREAK will be right back.

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