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CNN Live At Daybreak
Latest On the U.S. Offensive in Falluja; Potential Democratic Candidates for President in 2008.
Aired November 08, 2004 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.
Now in the news, insurgents in Falluja are firing back as U.S. and Iraqi forces get ready to invade that city. American warplanes and tanks have been pounding insurgent spots ahead of an all out assault. We're going to have a live report, a couple of live reports for you, coming up.
Word just in from the West Bank this morning, Palestinian officials have decided to head to Paris today to visit Yasser Arafat in the hospital. They're reversing an earlier decision to put off the trip. We'll have a live report from Ramallah at the bottom of the hour.
In northern Japan, shaky ground this morning. A magnitude 5.9 earthquake hit the area today, reportedly injuring several people. Officials believe the shaker is an aftershock to the deadly quake that struck northern Japan last month.
Up to the Forecast Center and Chad -- good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Iraqis are under their first full day of emergency rule and at the brink and on the brink, I should say, of an all out military assault on Falluja.
We've got three reports for you this morning. Live from Baghdad, Nic Robertson; embedded in Falluja, Jane Arraf; and then live from the Pentagon, CNN's Barbara Starr.
But let's begin in Baghdad with you -- Nic.
NIC ROBERTSON, CNN CORRESPONDENT: Well, Carol, the state of emergency was declared almost 24 hours ago. The state of emergency effectively gives more power to the prime minister, Ayad Allawi.
The government has said that it has tried all peaceful means to stop the acts by the insurgents, that they believe the insurgents are trying to undermine, derail the government, derail the upcoming elections in January, and they say the only way that they can avoid this now is to put in place a state of emergency. Under the increased powers that the prime minister now has, it gives him the authority to delegate power to specific government ministers and other military officials. But what it will do is allow him to more quickly make speedy military decisions. It will allow him to call on the multinational force to aid the Iraqi government in dealing with the insurgency. It will allow him to put in place curfews, to control communications, control transportation.
Many of these things have already been happening. The difference now is that Ayad Allawi, the prime minister, has a much stronger, more powerful role in making these decisions more quickly and more speedily -- Carol.
COSTELLO: Nic Robertson reporting live from Baghdad.
Let's gauge how they're feeling at the Pentagon.
Let's head live to Washington and our Pentagon correspondent Barbara Starr -- good morning, Barbara.
BARBARA STARR, CNN CORRESPONDENT: Carol, people, folks here are watching the unfolding action in Falluja quite closely, of course. But to place it against the larger backdrop of what is going on in Iraq, as Nic says, with the state of emergency declared, the situation, the concern about the violence is at an all time high, clearly.
Falluja, the hope is that this will essentially, this mission will restore local control, if you will, to the city of Falluja, that the people will be able to get rid of the foreign fighters there and take their city back. That is seen as essential to having secure elections in January, to having the Sunni element which is in this area be able to vote in the elections and then for those elections to be seen as credible across the country.
But no one at this point is counting on the fact that the Falluja action will break the back of the insurgency, if you will, across the country. There's an estimated 12,000 insurgents, perhaps, across Iraq. Falluja is just one place, it is next on the list, where the U.S. is trying to restore local control, but nobody thinks it's going to end the violence in Iraq at this point -- Carol.
COSTELLO: So, Barbara, the top terrorist in Iraq, Abu Musab al- Zarqawi, his base of operations supposedly in Falluja. We shouldn't expect U.S. forces to capture him either.
STARR: No. There is no expectation of that at this point. It had been the case for many months they believed Abu Musab al-Zarqawi was using Falluja as his base of operations, if you will. But over the last several weeks, officials here at the Pentagon have taken great pains to say they don't actually know where Zarqawi is. They have no indication that he is either still in Falluja or left the city. One official saying if we found him there, it would be a combat bonus. But nobody's counting on that at this point -- Carol.
COSTELLO: Barbara Starr live from the Pentagon this morning. Thank you.
Now let's get the latest live from the battlefield.
Jane Arraf is embedded with the Army there -- Jane, bring us up to date from your perspective.
JANE ARRAF, CNN CORRESPONDENT: Carol, we're just on the outskirts of Falluja. We're actually on one of the main highways leading to Baghdad that we've driven on many times. This morning, we've been here for several hours. In this staging area there have been sporadic attacks by insurgents who have taken up positions, some of them, on rooftops in what has been an industrial sector of the city that has been heavy with insurgents.
Now, the Army and the Marines have been fighting back with artillery, among other things, and mortars, as well. But this is not even yet the main battle. Unclear when that will begin, but when it begins, it's expected to be complicated, to say the least. They are going into an urban environment full of civilians and full of -- this is a place that has become a magnet for insurgents of all kinds -- Iraqis and foreigners. And they say this will be the battle that they intend to end the insurgency -- Carol.
COSTELLO: Tell us again, Jane, how involved Iraqi troops are with the Army, with the Marines.
ARRAF: They're quite involved. This really is the exit strategy, if you will, that Iraqi forces get up to speed enough that they can actually take the lead in operations like this if they're necessary. That isn't happening yet. But what they are doing is taking the lead in some of the more sensitive tasks, things like going into mosques, where it would be unthinkable if American forces went in. But Iraqis can do that.
The unit we're with has special forces, commandos attached to them. And they have apparently proven themselves in training. We have yet to see them in battle here on a battle on this scale. But there are also Iraqi National Guard, there are Iraqi special forces. There are a variety of forces, several thousand of them. And it's really a test of fighting in this environment, in this scale, with this number of civilians in a battle that really is still very controversial among Iraqis -- Carol.
COSTELLO: Jane Arraf reporting live from somewhere near Falluja, in Falluja. She's with the 1st Infantry Division of the Army, by the way.
And Kyra Phillips will be along later on DAYBREAK to tell us how that division trained to take on this urban combat duty in Falluja.
Still to come on DAYBREAK, gas prices take another dip. Should we get used to the idea of lower prices? Oh, doesn't that sound beautiful. That's in this morning's "Business Buzz."
And the winners and losers of the 2004 political year that was. But first, here's a look at what else is making news this Monday morning.
(COMMERCIAL BREAK)
COSTELLO: Time now for a little "Business Buzz."
For the first time in two months, some relief at the pump.
Carrie Lee has more for us the from the Nasdaq market site.
I would be more excited about this if I thought it would, you know, stick around, the lower prices, I mean.
CARRIE LEE, CNN CORRESPONDENT: Well, we could see prices continue to fall, Carol. That's what the experts are saying anyway. Gas prices down $.03 a gallon over the past two weeks, reversing a trend that saw prices rise about $.18 since early September. So now a gallon of self-serve regular averaging about $2.01. That's back on November 5, a few days ago.
The Lundberg Survey crediting a drop in the price of crude oil for lower prices at the pump.
What's happening with crude is oil supplies have increased due to higher OPEC production; also, partial recovery of U.S. coast oil facilities that had been damaged by hurricanes in the Southeast.
So, crude oil usually dictates at least part of the price of gasoline. When crude keeps falling, gasoline follows. So it might not be the end of the declines, Carol. That's what some of the experts are saying.
COSTELLO: OK, you've made me a little happier this morning.
LEE: Good.
COSTELLO: I appreciate that.
LEE: All right.
COSTELLO: Carrie Lee live from the NASDAQ market site.
Your news, money, weather and sports.
It's 6:12 Eastern.
Here's what's all new this morning.
More than 10,000 U.S. troops and Iraqi soldiers are preparing for an all out assault on insurgents in Falluja. Heavy fighting now under way on the outskirts of the city. U.S. warplanes have intensified attacks on insurgent positions.
In Redwood City, California, another day of deliberations scheduled for the jury in the Scott Peterson trial. The jurors got the case last week, but did not conduct any deliberations over the weekend. Scott Peterson, as you know, faces two counts of murder.
In money news, it's been a long time in coming. The 1985 Live AIDS Famine Relief concert comes out on DVD today in Britain. Wow. The government said it would donate sales tax collected to charity, and that could top $7 million.
In culture, multi-talented actor Howard Keel has died of colon cancer. He was 85. Keel starred in such classic musicals as "Showboat" and "Kiss Me Kate." But he may be even more well known for a 10-year run as Clayton Farlow on the TV drama "Dallas."
In sports, the New England Patriots started a new winning streak. The Pats beat the St. Louis Rams 40-22. New England had its 21-game winning streak snapped last week by the Pittsburgh Steelers, but, boy, Pittsburgh is coming on strong -- Chad.
MYERS: Yes.
COSTELLO: They beat Philadelphia. They spanked them.
MYERS: They did. And how about that quarterback? I mean out of basically, what was it, out of Miami, of Ohio?
COSTELLO: Yes, Roethlisberger. He's 6-0 as a rookie.
MYERS: Right. Exactly. What a -- I mean... and a really, a couple of great numbers from the last three games, as well.
(WEATHER REPORT)
COSTELLO: When someone tries to reach you by cell phone what do you hear? Something like that? Just about every tune imaginable is at your fingertips these days. Now "Billboard" is keeping track.
And coming up next, the future of Barack Obama. Does he have an uphill climb ahead when he reaches Capitol Hill?
(COMMERCIAL BREAK)
COSTELLO: On the heels of a Democratic defeat, a superstar is born, maybe.
Brand new Senator Barack Obama of Illinois is everywhere, giving advice, guidance, wisdom. Well, he's definitely an '04 winner. We have to say that. And now that the dust has settled from Tuesday's election, we decided to run down the winners and losers of '04.
Joining us to do that, to help us do that, is Vaughn Ververs, editor of "The National Journal's" "Hotline."
Good morning, Vaughn.
VAUGHN VERVERS, EDITOR, "THE HOTLINE": Good morning, Carol.
COSTELLO: He is definitely a winner, don't you think? VERVERS: Absolutely. Barack Obama was such a winner that he was actually asked the day after his election if he was planning on running for president in 2008. And his response was simply hey, look, I just got elected, you know, give me some breathing room here. That is how much of a winner he is.
COSTELLO: Yes, I heard him -- I heard a quote from him over the weekend saying I've got to find out where the bathrooms are on Capitol Hill, let alone considering a run for president in 2008.
VERVERS: He would be very wise to stick to the model of Hillary Clinton when she got to the United States Senate. With all the great expectations and attention put upon her, she sort of put her nose to the grindstone, kept under the radar screen, got entrenched in doing her job and she was much better off for that.
COSTELLO: Oh, it's funny you mention Hillary Clinton, because she is considered another winner in '04, even though the Democrats lost.
VERVERS: Well, she is the -- she is one of those people who's going to be looked at to step into the sort of leadership vacuum that is the Democratic Party right now. She is probably the most beloved figure among the rank and file Democrats. We saw that in polls throughout the primary season, where she would top the entire field had she run. And she's going to have to make some decisions in the next couple of years about what she wants her role to be.
COSTELLO: OK, so we have Hillary Clinton, Barack Obama, Karl Rove definitely a winner.
VERVERS: Oh, you bet. Karl Rove's strategy of getting out his base and enlarging it to the degree he did was exactly what he said he was going to do.
COSTELLO: OK, let's go to the losers quickly, because, you know, hey, we're a news organization. We talk about that sort of stuff, don't we?
VERVERS: Absolutely.
COSTELLO: John Edwards is probably a big loser, because even if he wants to run for president, you know, he's got a few problems. He's out of the world of politics now.
VERVERS: Well, he does have four years to sort of run around and gather up chits and try to make another run for this. But his real problem is that he didn't really -- he didn't seem to help the ticket out in any way. President Bush won North Carolina, his home state, by exactly what he won it four years ago. He didn't really seem to bring in those rural voters that he was brought onto the ticket to help woo and women voters, as well.
So I'm not sure he tangentially helped the ticket, and that's a problem for him. COSTELLO: Ralph Nader. We learned this morning that he asked for a recount in New Hampshire. He had 5,000 votes there. But he just wanted to see.
VERVERS: Ralph Nader, three million, almost three million votes in the year 2000. This time around he was down to about 400,000 votes nationwide. The Democrats really pounced on him all the way throughout this election and I think that paid off for them. And I also think people are just sort of tired of Ralph.
COSTELLO: It seemed that way, anyway.
Other losers -- Tom Daschle and celebrity power, because Hollywood didn't help much, did they?
Vaughn Ververs of "The National Journal's" "Hotline," the editor of the online "Hotline."
Thank you for joining DAYBREAK this morning.
We want to talk a little bit more about Senator Barack Obama of Illinois, because, as I said, a superstar is definitely born, especially in Democratic circles.
"TIME" magazine has an interesting article about him in this week's edition.
Joining us now, Viveca Novak in Washington.
Good morning.
VIVECA NOVAK, "TIME" CORRESPONDENT: Good morning.
COSTELLO: You know, in that article, there are many interesting things that we don't know about Barack Obama. For instance, he always talks about his father, who is from Kenya, and his mother from the Midwest. What we don't know is that his father left the family when he was two.
NOVAK: That's right, and went back to Kenya, where he was very successful. But unfortunately Barack, I think, only saw him again once and then his father was killed in a car accident when Barack was 21.
COSTELLO: We also hear a lot about his mom. You know, she was born in Kansas. But actually they lived in Hawaii for the time and he's into things like sashimi and sushi. He's experimented with drugs, not just marijuana, but stronger drugs, as well.
NOVAK: Yes, he did try cocaine. He was -- he did go through a period, I think, in high school where he was -- he felt a lot of pressure because of the race question. In Hawaii that was, you know, there weren't that many African-Americans around and he was in a very elite school. And you know, obviously he came out of that and went on to go to Harvard Law School eventually and become the first black editor of the "Harvard Law Review." So he's been, you know, he's overcome a lot, a fractured family. Growing up in Hawaii sounds great, but I don't think the family situation was all that great.
COSTELLO: Now, and you talk about racial issues. And this is what I found interesting from your article, as well. As for white people who are so excited about Obama, a quote: "Obama doesn't sound like a civil rights era black politician. His style is, as he puts it, not accusing, but challenging Americans to live up to the highest ideas."
Some call that pandering to whites, but it can appeal to blacks, too.
At first blush, it sounds like, you know, when white people say I don't even notice he's black.
NOVAK: Yes, well, I think it's a more positive outlook. And I think that's why it's appealing to a broader range of people is it's not ancestry, it's not saying, you know, you did this to us. It is more sort of let's look at what we can do here. And it's something that I think everybody can work with.
COSTELLO: Interesting article.
NOVAK: It's not threatening.
COSTELLO: Interesting article.
Viveca Novak of "TIME" magazine joining DAYBREAK this morning.
Thank you.
NOVAK: Good to be with you.
COSTELLO: When we come back, what is up with Arafat's wife and the decision by some Palestinian leaders to travel to Paris to visit that ailing official? We're going to have a live report for you from Ramallah. Yes, there are new developments this morning.
And then what will the siege of Falluja look like on the ground? Kyra Phillips shares her experience at an Army special ops training facility. That's coming your way next.
(COMMERCIAL BREAK)
COSTELLO: We understand there is a press conference now ongoing in Iraq. You're looking at Ayad Allawi, the interim prime minister. And he is supposedly talking about Falluja.
But let's listen to hear what he has to say.
AYAD ALLAWI, IRAQ'S INTERIM PRIME MINISTER (through translator): I have made my best to solve the problem of Falluja. I have painful feelings. I have, today I reached convictions that terrorists and the armed groups do not want the peaceful settlement because they have done the following. They have refused the supremacy of law. They refused all the efforts to take part in the political process. They have violated all the moral and religious principles by killing the Iraqi people and the security forces in this holy month.
Once again, yesterday, we have seen more criminal acts committed by these terrorists who continue to use Falluja as a base for their operations. I have reached a conviction that we have no other option but to take necessary measures to protect the Iraqi people from these killers and to liberate the Fallujans so that they will go back to their homes and lead a normal life.
According to this, I have decided today to implement the security law in Falluja and Ramadi and the procedures will be carried out after the 6:00 p.m. today.
Yesterday evening, the Iraqi special forces were able to take control of Falluja Hospital to defeat the terrorists and the armed groups and so that the citizens of Falluja will get medical health. The minister of health was in still communication with the administration of the hospital and he was -- he became sure that the medical supplies came to the hospital and he coordinated with the multinational forces to secure these medical equipments safely.
I am looking -- I was -- it was really disappointing that the media has published untrue information during the last month. During this operation in this hospital, the Iraqi forces detained four of the foreign terrorists. Two of them are from Roca (ph) and two are unidentified until now, but they speak a non-Iraqi dialect. And we expect to detain more terrorists in Falluja within the next few days. And the Iraqi government will follow these terrorists by all means and we will follow them, chase them with the force of law.
Security measures to be carried out today include the following. First, a curfew will be imposed in Falluja at 6:00 p.m. today. The highways will be closed, except for the emergencies and the vehicles permitted by their governments. Third, the general institutions will be closed, except the necessary services in Falluja. Four, a ban for all weapons. Closing the Iraqi borders with Syria and Jordan, except for the trucks carrying food and necessary goods. This measure aims at preventing the terrorists from crossing the borders. Sixth, closing the Baghdad International Airport for 48 hours.
Now I am ready to answer your questions.
UNIDENTIFIED REPORTER (through translator): (INAUDIBLE). Mr. Ayad Allawi, peace be upon you. What is the result of your visit? Have you worked out a plan to get rid of the terrorists, which take hold of the (INAUDIBLE) bridge?
ALLAWI (through translator): And we have started to take the necessary measures to provide security and peace in Iraq. And the emergency law will...
COSTELLO: You have been listening to the interim prime minister of Iraq, Ayad Allawi. He's talking about what's going on in Falluja right now, as in a curfew has been imposed. The highways have been closed. General institutions will be closed. And of course, that border with Syria will also be closed, except for emergency vehicles and such. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired November 8, 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, insurgents in Falluja are firing back as U.S. and Iraqi forces get ready to invade that city. American warplanes and tanks have been pounding insurgent spots ahead of an all out assault. We're going to have a live report, a couple of live reports for you, coming up.
Word just in from the West Bank this morning, Palestinian officials have decided to head to Paris today to visit Yasser Arafat in the hospital. They're reversing an earlier decision to put off the trip. We'll have a live report from Ramallah at the bottom of the hour.
In northern Japan, shaky ground this morning. A magnitude 5.9 earthquake hit the area today, reportedly injuring several people. Officials believe the shaker is an aftershock to the deadly quake that struck northern Japan last month.
Up to the Forecast Center and Chad -- good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
(WEATHER REPORT)
COSTELLO: Iraqis are under their first full day of emergency rule and at the brink and on the brink, I should say, of an all out military assault on Falluja.
We've got three reports for you this morning. Live from Baghdad, Nic Robertson; embedded in Falluja, Jane Arraf; and then live from the Pentagon, CNN's Barbara Starr.
But let's begin in Baghdad with you -- Nic.
NIC ROBERTSON, CNN CORRESPONDENT: Well, Carol, the state of emergency was declared almost 24 hours ago. The state of emergency effectively gives more power to the prime minister, Ayad Allawi.
The government has said that it has tried all peaceful means to stop the acts by the insurgents, that they believe the insurgents are trying to undermine, derail the government, derail the upcoming elections in January, and they say the only way that they can avoid this now is to put in place a state of emergency. Under the increased powers that the prime minister now has, it gives him the authority to delegate power to specific government ministers and other military officials. But what it will do is allow him to more quickly make speedy military decisions. It will allow him to call on the multinational force to aid the Iraqi government in dealing with the insurgency. It will allow him to put in place curfews, to control communications, control transportation.
Many of these things have already been happening. The difference now is that Ayad Allawi, the prime minister, has a much stronger, more powerful role in making these decisions more quickly and more speedily -- Carol.
COSTELLO: Nic Robertson reporting live from Baghdad.
Let's gauge how they're feeling at the Pentagon.
Let's head live to Washington and our Pentagon correspondent Barbara Starr -- good morning, Barbara.
BARBARA STARR, CNN CORRESPONDENT: Carol, people, folks here are watching the unfolding action in Falluja quite closely, of course. But to place it against the larger backdrop of what is going on in Iraq, as Nic says, with the state of emergency declared, the situation, the concern about the violence is at an all time high, clearly.
Falluja, the hope is that this will essentially, this mission will restore local control, if you will, to the city of Falluja, that the people will be able to get rid of the foreign fighters there and take their city back. That is seen as essential to having secure elections in January, to having the Sunni element which is in this area be able to vote in the elections and then for those elections to be seen as credible across the country.
But no one at this point is counting on the fact that the Falluja action will break the back of the insurgency, if you will, across the country. There's an estimated 12,000 insurgents, perhaps, across Iraq. Falluja is just one place, it is next on the list, where the U.S. is trying to restore local control, but nobody thinks it's going to end the violence in Iraq at this point -- Carol.
COSTELLO: So, Barbara, the top terrorist in Iraq, Abu Musab al- Zarqawi, his base of operations supposedly in Falluja. We shouldn't expect U.S. forces to capture him either.
STARR: No. There is no expectation of that at this point. It had been the case for many months they believed Abu Musab al-Zarqawi was using Falluja as his base of operations, if you will. But over the last several weeks, officials here at the Pentagon have taken great pains to say they don't actually know where Zarqawi is. They have no indication that he is either still in Falluja or left the city. One official saying if we found him there, it would be a combat bonus. But nobody's counting on that at this point -- Carol.
COSTELLO: Barbara Starr live from the Pentagon this morning. Thank you.
Now let's get the latest live from the battlefield.
Jane Arraf is embedded with the Army there -- Jane, bring us up to date from your perspective.
JANE ARRAF, CNN CORRESPONDENT: Carol, we're just on the outskirts of Falluja. We're actually on one of the main highways leading to Baghdad that we've driven on many times. This morning, we've been here for several hours. In this staging area there have been sporadic attacks by insurgents who have taken up positions, some of them, on rooftops in what has been an industrial sector of the city that has been heavy with insurgents.
Now, the Army and the Marines have been fighting back with artillery, among other things, and mortars, as well. But this is not even yet the main battle. Unclear when that will begin, but when it begins, it's expected to be complicated, to say the least. They are going into an urban environment full of civilians and full of -- this is a place that has become a magnet for insurgents of all kinds -- Iraqis and foreigners. And they say this will be the battle that they intend to end the insurgency -- Carol.
COSTELLO: Tell us again, Jane, how involved Iraqi troops are with the Army, with the Marines.
ARRAF: They're quite involved. This really is the exit strategy, if you will, that Iraqi forces get up to speed enough that they can actually take the lead in operations like this if they're necessary. That isn't happening yet. But what they are doing is taking the lead in some of the more sensitive tasks, things like going into mosques, where it would be unthinkable if American forces went in. But Iraqis can do that.
The unit we're with has special forces, commandos attached to them. And they have apparently proven themselves in training. We have yet to see them in battle here on a battle on this scale. But there are also Iraqi National Guard, there are Iraqi special forces. There are a variety of forces, several thousand of them. And it's really a test of fighting in this environment, in this scale, with this number of civilians in a battle that really is still very controversial among Iraqis -- Carol.
COSTELLO: Jane Arraf reporting live from somewhere near Falluja, in Falluja. She's with the 1st Infantry Division of the Army, by the way.
And Kyra Phillips will be along later on DAYBREAK to tell us how that division trained to take on this urban combat duty in Falluja.
Still to come on DAYBREAK, gas prices take another dip. Should we get used to the idea of lower prices? Oh, doesn't that sound beautiful. That's in this morning's "Business Buzz."
And the winners and losers of the 2004 political year that was. But first, here's a look at what else is making news this Monday morning.
(COMMERCIAL BREAK)
COSTELLO: Time now for a little "Business Buzz."
For the first time in two months, some relief at the pump.
Carrie Lee has more for us the from the Nasdaq market site.
I would be more excited about this if I thought it would, you know, stick around, the lower prices, I mean.
CARRIE LEE, CNN CORRESPONDENT: Well, we could see prices continue to fall, Carol. That's what the experts are saying anyway. Gas prices down $.03 a gallon over the past two weeks, reversing a trend that saw prices rise about $.18 since early September. So now a gallon of self-serve regular averaging about $2.01. That's back on November 5, a few days ago.
The Lundberg Survey crediting a drop in the price of crude oil for lower prices at the pump.
What's happening with crude is oil supplies have increased due to higher OPEC production; also, partial recovery of U.S. coast oil facilities that had been damaged by hurricanes in the Southeast.
So, crude oil usually dictates at least part of the price of gasoline. When crude keeps falling, gasoline follows. So it might not be the end of the declines, Carol. That's what some of the experts are saying.
COSTELLO: OK, you've made me a little happier this morning.
LEE: Good.
COSTELLO: I appreciate that.
LEE: All right.
COSTELLO: Carrie Lee live from the NASDAQ market site.
Your news, money, weather and sports.
It's 6:12 Eastern.
Here's what's all new this morning.
More than 10,000 U.S. troops and Iraqi soldiers are preparing for an all out assault on insurgents in Falluja. Heavy fighting now under way on the outskirts of the city. U.S. warplanes have intensified attacks on insurgent positions.
In Redwood City, California, another day of deliberations scheduled for the jury in the Scott Peterson trial. The jurors got the case last week, but did not conduct any deliberations over the weekend. Scott Peterson, as you know, faces two counts of murder.
In money news, it's been a long time in coming. The 1985 Live AIDS Famine Relief concert comes out on DVD today in Britain. Wow. The government said it would donate sales tax collected to charity, and that could top $7 million.
In culture, multi-talented actor Howard Keel has died of colon cancer. He was 85. Keel starred in such classic musicals as "Showboat" and "Kiss Me Kate." But he may be even more well known for a 10-year run as Clayton Farlow on the TV drama "Dallas."
In sports, the New England Patriots started a new winning streak. The Pats beat the St. Louis Rams 40-22. New England had its 21-game winning streak snapped last week by the Pittsburgh Steelers, but, boy, Pittsburgh is coming on strong -- Chad.
MYERS: Yes.
COSTELLO: They beat Philadelphia. They spanked them.
MYERS: They did. And how about that quarterback? I mean out of basically, what was it, out of Miami, of Ohio?
COSTELLO: Yes, Roethlisberger. He's 6-0 as a rookie.
MYERS: Right. Exactly. What a -- I mean... and a really, a couple of great numbers from the last three games, as well.
(WEATHER REPORT)
COSTELLO: When someone tries to reach you by cell phone what do you hear? Something like that? Just about every tune imaginable is at your fingertips these days. Now "Billboard" is keeping track.
And coming up next, the future of Barack Obama. Does he have an uphill climb ahead when he reaches Capitol Hill?
(COMMERCIAL BREAK)
COSTELLO: On the heels of a Democratic defeat, a superstar is born, maybe.
Brand new Senator Barack Obama of Illinois is everywhere, giving advice, guidance, wisdom. Well, he's definitely an '04 winner. We have to say that. And now that the dust has settled from Tuesday's election, we decided to run down the winners and losers of '04.
Joining us to do that, to help us do that, is Vaughn Ververs, editor of "The National Journal's" "Hotline."
Good morning, Vaughn.
VAUGHN VERVERS, EDITOR, "THE HOTLINE": Good morning, Carol.
COSTELLO: He is definitely a winner, don't you think? VERVERS: Absolutely. Barack Obama was such a winner that he was actually asked the day after his election if he was planning on running for president in 2008. And his response was simply hey, look, I just got elected, you know, give me some breathing room here. That is how much of a winner he is.
COSTELLO: Yes, I heard him -- I heard a quote from him over the weekend saying I've got to find out where the bathrooms are on Capitol Hill, let alone considering a run for president in 2008.
VERVERS: He would be very wise to stick to the model of Hillary Clinton when she got to the United States Senate. With all the great expectations and attention put upon her, she sort of put her nose to the grindstone, kept under the radar screen, got entrenched in doing her job and she was much better off for that.
COSTELLO: Oh, it's funny you mention Hillary Clinton, because she is considered another winner in '04, even though the Democrats lost.
VERVERS: Well, she is the -- she is one of those people who's going to be looked at to step into the sort of leadership vacuum that is the Democratic Party right now. She is probably the most beloved figure among the rank and file Democrats. We saw that in polls throughout the primary season, where she would top the entire field had she run. And she's going to have to make some decisions in the next couple of years about what she wants her role to be.
COSTELLO: OK, so we have Hillary Clinton, Barack Obama, Karl Rove definitely a winner.
VERVERS: Oh, you bet. Karl Rove's strategy of getting out his base and enlarging it to the degree he did was exactly what he said he was going to do.
COSTELLO: OK, let's go to the losers quickly, because, you know, hey, we're a news organization. We talk about that sort of stuff, don't we?
VERVERS: Absolutely.
COSTELLO: John Edwards is probably a big loser, because even if he wants to run for president, you know, he's got a few problems. He's out of the world of politics now.
VERVERS: Well, he does have four years to sort of run around and gather up chits and try to make another run for this. But his real problem is that he didn't really -- he didn't seem to help the ticket out in any way. President Bush won North Carolina, his home state, by exactly what he won it four years ago. He didn't really seem to bring in those rural voters that he was brought onto the ticket to help woo and women voters, as well.
So I'm not sure he tangentially helped the ticket, and that's a problem for him. COSTELLO: Ralph Nader. We learned this morning that he asked for a recount in New Hampshire. He had 5,000 votes there. But he just wanted to see.
VERVERS: Ralph Nader, three million, almost three million votes in the year 2000. This time around he was down to about 400,000 votes nationwide. The Democrats really pounced on him all the way throughout this election and I think that paid off for them. And I also think people are just sort of tired of Ralph.
COSTELLO: It seemed that way, anyway.
Other losers -- Tom Daschle and celebrity power, because Hollywood didn't help much, did they?
Vaughn Ververs of "The National Journal's" "Hotline," the editor of the online "Hotline."
Thank you for joining DAYBREAK this morning.
We want to talk a little bit more about Senator Barack Obama of Illinois, because, as I said, a superstar is definitely born, especially in Democratic circles.
"TIME" magazine has an interesting article about him in this week's edition.
Joining us now, Viveca Novak in Washington.
Good morning.
VIVECA NOVAK, "TIME" CORRESPONDENT: Good morning.
COSTELLO: You know, in that article, there are many interesting things that we don't know about Barack Obama. For instance, he always talks about his father, who is from Kenya, and his mother from the Midwest. What we don't know is that his father left the family when he was two.
NOVAK: That's right, and went back to Kenya, where he was very successful. But unfortunately Barack, I think, only saw him again once and then his father was killed in a car accident when Barack was 21.
COSTELLO: We also hear a lot about his mom. You know, she was born in Kansas. But actually they lived in Hawaii for the time and he's into things like sashimi and sushi. He's experimented with drugs, not just marijuana, but stronger drugs, as well.
NOVAK: Yes, he did try cocaine. He was -- he did go through a period, I think, in high school where he was -- he felt a lot of pressure because of the race question. In Hawaii that was, you know, there weren't that many African-Americans around and he was in a very elite school. And you know, obviously he came out of that and went on to go to Harvard Law School eventually and become the first black editor of the "Harvard Law Review." So he's been, you know, he's overcome a lot, a fractured family. Growing up in Hawaii sounds great, but I don't think the family situation was all that great.
COSTELLO: Now, and you talk about racial issues. And this is what I found interesting from your article, as well. As for white people who are so excited about Obama, a quote: "Obama doesn't sound like a civil rights era black politician. His style is, as he puts it, not accusing, but challenging Americans to live up to the highest ideas."
Some call that pandering to whites, but it can appeal to blacks, too.
At first blush, it sounds like, you know, when white people say I don't even notice he's black.
NOVAK: Yes, well, I think it's a more positive outlook. And I think that's why it's appealing to a broader range of people is it's not ancestry, it's not saying, you know, you did this to us. It is more sort of let's look at what we can do here. And it's something that I think everybody can work with.
COSTELLO: Interesting article.
NOVAK: It's not threatening.
COSTELLO: Interesting article.
Viveca Novak of "TIME" magazine joining DAYBREAK this morning.
Thank you.
NOVAK: Good to be with you.
COSTELLO: When we come back, what is up with Arafat's wife and the decision by some Palestinian leaders to travel to Paris to visit that ailing official? We're going to have a live report for you from Ramallah. Yes, there are new developments this morning.
And then what will the siege of Falluja look like on the ground? Kyra Phillips shares her experience at an Army special ops training facility. That's coming your way next.
(COMMERCIAL BREAK)
COSTELLO: We understand there is a press conference now ongoing in Iraq. You're looking at Ayad Allawi, the interim prime minister. And he is supposedly talking about Falluja.
But let's listen to hear what he has to say.
AYAD ALLAWI, IRAQ'S INTERIM PRIME MINISTER (through translator): I have made my best to solve the problem of Falluja. I have painful feelings. I have, today I reached convictions that terrorists and the armed groups do not want the peaceful settlement because they have done the following. They have refused the supremacy of law. They refused all the efforts to take part in the political process. They have violated all the moral and religious principles by killing the Iraqi people and the security forces in this holy month.
Once again, yesterday, we have seen more criminal acts committed by these terrorists who continue to use Falluja as a base for their operations. I have reached a conviction that we have no other option but to take necessary measures to protect the Iraqi people from these killers and to liberate the Fallujans so that they will go back to their homes and lead a normal life.
According to this, I have decided today to implement the security law in Falluja and Ramadi and the procedures will be carried out after the 6:00 p.m. today.
Yesterday evening, the Iraqi special forces were able to take control of Falluja Hospital to defeat the terrorists and the armed groups and so that the citizens of Falluja will get medical health. The minister of health was in still communication with the administration of the hospital and he was -- he became sure that the medical supplies came to the hospital and he coordinated with the multinational forces to secure these medical equipments safely.
I am looking -- I was -- it was really disappointing that the media has published untrue information during the last month. During this operation in this hospital, the Iraqi forces detained four of the foreign terrorists. Two of them are from Roca (ph) and two are unidentified until now, but they speak a non-Iraqi dialect. And we expect to detain more terrorists in Falluja within the next few days. And the Iraqi government will follow these terrorists by all means and we will follow them, chase them with the force of law.
Security measures to be carried out today include the following. First, a curfew will be imposed in Falluja at 6:00 p.m. today. The highways will be closed, except for the emergencies and the vehicles permitted by their governments. Third, the general institutions will be closed, except the necessary services in Falluja. Four, a ban for all weapons. Closing the Iraqi borders with Syria and Jordan, except for the trucks carrying food and necessary goods. This measure aims at preventing the terrorists from crossing the borders. Sixth, closing the Baghdad International Airport for 48 hours.
Now I am ready to answer your questions.
UNIDENTIFIED REPORTER (through translator): (INAUDIBLE). Mr. Ayad Allawi, peace be upon you. What is the result of your visit? Have you worked out a plan to get rid of the terrorists, which take hold of the (INAUDIBLE) bridge?
ALLAWI (through translator): And we have started to take the necessary measures to provide security and peace in Iraq. And the emergency law will...
COSTELLO: You have been listening to the interim prime minister of Iraq, Ayad Allawi. He's talking about what's going on in Falluja right now, as in a curfew has been imposed. The highways have been closed. General institutions will be closed. And of course, that border with Syria will also be closed, except for emergency vehicles and such. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
