Return to Transcripts main page

CNN Live At Daybreak

Ailing Yasser Arafat; "Today's Talker"; Shoe Wars

Aired November 09, 2004 - 06:31   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."

There is late word this morning that Yasser Arafat's condition has worsened. Hospital officials in Paris say the Palestinian leader has fallen into a deeper coma. And we learned just minutes ago that group of Palestinian leaders in Paris, well, they've gone inside the hospital. We'll head live to Paris in just a minute.

Day two of the Falluja offensive in Iraq. So far, U.S. troops have faced less-than-expected resistance. Our Jane Arraf is with one Army unit. She reports that unit believes it has killed or wounded as many as 90 insurgents.

And as the battle rages in Falluja, President Bush and his wife plan a bedside visit to soldiers wounded in Iraq. They'll stop by the Walter Reed Army Medical Center in Washington later this afternoon.

And before heading to the hospital, the first lady will attend an event just outside of her front door. She'll preside over the re- opening of Pennsylvania Avenue in front of the White House. The pedestrian plaza has been closed for renovation since January.

(WEATHER REPORT)

COSTELLO: Let's try to find out more now about Yasser Arafat and whether that delegation from the Palestinian territories will actually get to talk to his doctors or see him. Let's head live to Paris and Jim Bittermann with the latest.

Good morning -- Jim.

JIM BITTERMANN, CNN CORRESPONDENT: Hi, Carol.

Yes, that delegation arrived just a short while ago here at the hospital about 10 minutes ago. They have gone inside. Four top Palestinians, in fact, probably the top leadership beneath Yasser Arafat, have traveled here, trying to make their assessment of whether Palestinian President Arafat will ever be able to resume his duties; that, after days of rumors about his exact state of health.

Now, we heard something about that state of health just a short while ago. About an hour ago, Christian Estripeau, the general who controls the information coming out of the hospital here, said to journalists that, in fact, Arafat's condition had worsened overnight, that he's slipped into a deeper coma, and they're offering no prognosis. That idea that they're offering no prognosis is the most dire description we've heard yet of Arafat's medical condition, and certainly differs a lot from what we've been hearing for the last five days that basically he was in stable condition -- Carol.

COSTELLO: Jim Bittermann reporting live from Paris this morning, thank you.

Let's talk more about the situation surrounding Arafat, the Palestinian group there in Paris, Arafat's wife being so upset. For some perspective, we bring in Jon Alterman, director of the Middle East program for the Center for Strategic and International Studies. He joins us from Washington.

Good morning.

JON ALTERMAN, CTR. FOR STRATEGIC INTL. STUDIES: Good morning.

COSTELLO: What do you make of this situation? Is it a good sign that that delegation was allowed inside the Paris hospital?

ALTERMAN: It's really not a good sign or a bad sign. There has been warring between the Palestinian factions. Farouk Kaddoumi, who was part of the Palestinian leadership and never went back because he was opposed to the Oslo Accords, was speaking to Suha Arafat over the weekend. And we still don't know what the Hamas people and other people in the Palestinians' guard are going to do. This is the old guard, but it's not clear that they're going to be the new guard after Arafat leaves the scene.

COSTELLO: Is it possible that Suha Arafat had a conversation with her husband before he became so ill about how to handle a situation like this?

ALTERMAN: It's possible. She hasn't seen her husband in four years. So, it's unclear that her husband would talk about this very much. But it's certainly possible. Anything is. And I certainly don't know what went on between a husband and his wife.

COSTELLO: Some Palestinians say they're embarrassed by Suha Arafat's behavior. They don't understand it. Some say it's all because of money, because she wants to control the purse strings. What's it really about?

ALTERMAN: She was never popular in the Palestinian scene. Partly, people kept saying that Yasser Arafat was never married because he was married to the cause. And here you have a woman who comes from a Christian family. Christians are a small percentage, 1 or 2 percent, of the Palestinian community.

She was always wealthy. She wanted to decorate things lavishly. She was much younger than him. She never really was accepted in the Palestinian community. And there had been rumors for years about how she spends money, and she's not really committed to the Palestinian cause; she's committed to living a comfortable life. COSTELLO: Interesting. OK, so the delegation is in the hospital, and let's say they do talk to the doctors. Let's say they do see Yasser Arafat. What's the next step?

ALTERMAN: The next step really is getting a sense for when there might be a transition in the Palestinian areas, who might take the leadership role, how that might work out and how other people who are outside of the power structure might be brought in.

One of the ways in which the Palestinian community was held together is there was a consensus that everybody had to follow Arafat, that he was the undisputed leader of the community. Abu Mazen doesn't have that kind of support. Abu Ala does not have that kind of support. Nobody else has that kind of support.

So, how do you keep everybody together? How do you keep everybody agreed on a goal forward? How do you get everybody to agree when you don't use violence without a symbol like Arafat at the helm? And that's a very, very difficult transition that they're going to have to make in the coming months.

COSTELLO: So, can the United States step in and do anything? Or is that a bad idea?

ALTERMAN: Most of what the U.S. can do is make things worse, because if the U.S. were to embrace any party, that would make them suspect, that would make it look like they were selling out. And one of Arafat's great legacies in the Palestinians' minds is that he never sold out. The Israelis, too, their ability to make things worse is much, much better -- is much greater than their ability to make things better.

So, I think there is going to be a lot of caution on both the Israeli side, which you've already seen, and also on the U.S. side.

COSTELLO: Jon Alterman, thanks for joining us live from Washington this morning.

Howard Dean may be planning a comeback. The former Democratic presidential candidate may have his sights set on another big title within the party. We'll tell you just what it is in five minutes.

And immediately after that, the Supreme Court could have a very different look in President Bush's second administration. We'll bring you the left and the right view of those possibilities.

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

(COMMERCIAL BREAK)

COSTELLO: Former Democratic presidential candidate Howard Dean could make a political comeback. The former Vermont governor told a "New York Post" -- told a New York audience, that is, he has not decided whether to pursue the chairmanship of the National Democratic Party or run for president again. Dean also downplayed President Bush's victory.

(BEGIN VIDEO CLIP)

HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: The message is very clear for the president of the United States. Fifty-one percent is not a mandate, and we're not retreating and we're not giving up and we're not going to stop fighting, because we're going to stand up for ordinary Americans, even though this president doesn't.

(END VIDEO CLIP)

COSTELLO: Dean said most Americans are concerned about jobs, health insurance, education and a foreign policy based on moral leadership, not military strength.

In the meantime, President Bush is laying the groundwork for his second term, and one item on that crowded agenda could include appointing up to four Supreme Court justices. Who is on the short list, and how will the makeup of the court change?

Joining us from the left, talk show host Nancy Skinner, and from the right, talk show host Armstrong Williams.

Welcome to you both.

NANCY SKINNER, RADIO TALK SHOW HOST: Good morning, Carol.

ARMSTRONG WILLIAMS, RADIO TALK SHOW HOST: Good morning.

COSTELLO: So, let's talk about Howard Dean first. Because, Armstrong, do you really think there is a chance that Howard Dean will pursue the chairmanship of the National Democratic Party, and that the Democrats will accept him? And is that a good thing?

WILLIAMS: Given the disarray that this Democratic Party is facing right now, anything is possible. At least one thing you can say about Howard Dean, you know what he believes in. You know what he would advocate. And the Democratic Party is definitely searching for a soul and a leader. And until Howard Dean's famous rant, he was the soul of that party at one time.

So, why not give him a chance? He can't do any worse than what Terry McAuliffe has done over the last -- over the time that he served as its chairman.

COSTELLO: Nancy?

SKINNER: Oh, absolutely, I would love to see Howard Dean at the DNC, because look what he did during the primary process. He gives Democrats backbone, and that's what we need right now. All of this discussion about the election results and we have to now somehow kowtow to the red states and adopt their beliefs, nonsense. That's not what this election was about. Howard Dean knows that, and he's got a backbone. I'd love to see it.

COSTELLO: Yes, but isn't -- the liberal label is certainly attached to Howard Dean. Wouldn't that...

SKINNER: They attach that label to everybody. They've demonized the word, Carol, for 25 years. So, anyone who runs, I don't care how conservative they are, they're going to call them a liberal, because it's more about the Pavlovian dog training of that word "liberal." So, it doesn't matter. We can't worry about what they call us.

WILLIAMS: You know...

SKINNER: We have to be what we are.

WILLIAMS: I'd like to take it further. I don't think the Democrats should run away from what they are. They are liberals. They should be proud of it. They support same-sex marriages. They believe government is the first order of business...

(CROSSTALK)

SKINNER: I'm sorry. Who supports same-sex marriages?

WILLIAMS: ... their business. I did not interrupt you. Please...

SKINNER: But John Kerry doesn't.

WILLIAMS: I didn't...

COSTELLO: Wait, wait, one at a time.

WILLIAMS: It's OK. I did not interrupt you. Please, show some restraint. The Democratic Party is in bed with the teachers' union. They're in bed with other left-leaning organizations, like NOW and the NEA. So, they should not abandon their core belief system and the people that support them over the last several decades.

SKINNER: But for you to say...

WILLIAMS: Everybody knows...

SKINNER: For you to say the Democratic Party...

WILLIAMS: Everyone knows exactly...

SKINNER: ... supports same-sex marriages, Armstrong...

WILLIAMS: Everyone knows exactly...

SKINNER: ... is wrong.

WILLIAMS: OK, you go ahead, please.

COSTELLO: OK, hold on, hold on, hold on.

WILLIAMS: Go ahead. Go ahead.

COSTELLO: Let's turn another corner and talk about the Supreme Court. Some people say this is President Bush's chance to unite the country by his choice. Will he decide to do that? Or will there really be a litmus test placed on the next chief justice of the Supreme Court? Armstrong.

WILLIAMS: Absolutely not. The president said there would be no litmus test for his judges. It is no secret that Chief Justice Rehnquist is very ill. It's probable that he will not return to the court. The president's faced some difficult challenges with that court. He will select justices that reflect his belief system on the order of Justices Clarence Thomas and Antonin Scalia. He's made that very clear. He's been consistent.

I think those justices reflect the majority of what Americans want, especially in this recent election. And I think the president will hold the principle on that, and you will see more conservative justices on the Supreme Court, not right-leaning justices, but justices that reflect the ideology and the perspective of where Americans would like to see this country go.

COSTELLO: Nancy, I can tell you're chafing a bit.

SKINNER: Well, he just said that there was no litmus test, but he's going to pick these right-wing conservative judges. I'll tell you, the evangelical Christians want their doing now, having elected this president. And I don't think Jim McGreevey is going to be on the short list here, OK? We're going to see -- and this is what they're actually talking about -- possibly having Clarence Thomas elevated to chief justice and John Ashcroft's name being mentioned.

Of course, there's a litmus test here. They have not nominated a judge to the federal bench so far that is supportive of reproductive rights. Every single one of these judges will be anti-choice, and you are going to see major changes with Roe v. Wade during this term. I predict that.

WILLIAMS: That is not true. You know what I don't understand? When John Kerry was running for president, he made it clear that there would be a litmus test on judges, that they would have to -- they would not be -- he would not put on pro-life judges on the court. Bush has never made himself accountable to that kind of standard. He said that would not be so.

The kind of justices that you will see that's probably on the short list is Miguel Estrada. Janice Rogers Brown would probably go back and try to go through a confirmation where she's elevated to the circuit court. You may see people like C. Boyden Gray, who is probably a wild card.

But this president is consistent. This is a conservative president. Why would you expect this president, who is a conservative president, to appoint justices that do not reflect his ideologies? It just doesn't make any sense.

COSTELLO: Yes, but, Armstrong...

SKINNER: It's the same thing. COSTELLO: Let me interrupt for just a second. Armstrong, I do want to ask you this. You said there will be no litmus test. But Arlen Specter came out and said, you know, maybe we should really think about who we're placing on the Supreme Court. Those words got him in deep trouble. He's been on the radio. He's been everywhere trying to repair the damage because he's afraid of what will happen.

SKINNER: By the Christian right...

WILLIAMS: Wait a minute. May I respond to that? May I...

SKINNER: By the Christian right...

(CROSSTALK)

WILLIAMS: May I respond to that? I met with Arlen Specter yesterday for a half-hour. And that is not what Arlen Specter said. Arlen Specter was not afraid. He's very supportive of the president. Arlen Specter has supported Coacher (ph). Arlen Specter has supported all of the president's recommendations. He's been a champion. He was a champion for Supreme Court Justice Clarence Thomas. Arlen Specter is a principled person. He will do a very good job in being fair as chairman of the Senate Judiciary Committee.

And, no, the president -- and, yes, some conservatives are bent out of shape over what he said. But it was misinterpreted by the AP reporter who interviewed him at the time.

COSTELLO: OK, Nancy, last word.

SKINNER: Carol, can I jump in?

COSTELLO: Yes.

SKINNER: What he's saying is we've put him in his place. He spoke out independently, and James Dobson said his nomination must be derailed. And we've talked to hosts. We put him in his place. No independent-minded judiciary. No way. We're going to make sure they toe our line. You're proving my point, Armstrong.

COSTELLO: All right, I wish we had more time, but we do not. Armstrong Williams and Nancy Skinner, thanks for joining DAYBREAK this morning.

WILLIAMS: Thank you.

Let's head live to New York now to check in with Bill and Soledad for a look at what's coming up on "AMERICAN MORNING."

Good morning to you both.

HEMMER: Hey, Carol. Good morning to you as well.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, Carol.

HEMMER: We're keeping a very close eye on what's happening in Iraq. We're getting reports just about every 15 minutes about different aspects of progress for the Marines and the Army. So, we'll talk about that today.

We'll also talk with John Danforth, the U.S. rep to the U.N., about his thoughts about the battle that continues at this hour, Carol.

O'BRIEN: And we're talking about the Peterson jurors, the judge's new instructions. Do they indicate one or more inflexible jurors? What's happening right now? We'll take a look at that. Robert Hirschhorn is a jury and trial consultant. Also, we'll hear from Lisa Bloom of Court TV. Jeff Toobin will join us with his analysis. And Dean Johnson, the former San Mateo County prosecutor, as well will weigh in on what he thinks is happening right now with those jurors.

HEMMER: Also, serial returners, stores using new technology to stop fraud, but the innocent are being swept in with the guilty. Vera Gibbons, a personal finance advisor, we'll talk to her about those issues today.

O'BRIEN: Have you ever done that?

HEMMER: I have not. Have you?

O'BRIEN: No, never. I think -- have you ever done that, Carol?

COSTELLO: No.

O'BRIEN: You know, you buy it, you wear it, then you return it?

COSTELLO: No.

HEMMER: Well, Toure had a word for that last week: shop- grifting.

O'BRIEN: Shop-grifting is what Toure called it. Apparently, tons and tons of money is spent on that. So, we're going to talk with Vera about that ahead this morning.

COSTELLO: Interesting. Well, we look forward to it. We'll catch you in 10 minutes.

HEMMER: Bye-bye.

COSTELLO: Your news, money, weather and sports. It's 6:48 Eastern. Here's what's all new this morning.

Day two of the Falluja offensive. Some 10,000 U.S. forces are plowing forward, along with about 2,000 Iraqi forces. They've been pounding insurgent targets, dodging sniper fire, and destroying roadside bombs along the way.

A Palestinian delegation has arrived at the hospital outside of Paris, where Yasser Arafat is being treated; this, as hospital officials say the Palestinian leader has fallen into a deeper coma. It is not clear whether the Palestinians will be able to visit their ailing leader.

In money news, a criminal investigation into Boeing is reportedly expanding. "The Wall Street Journal" says the probe will not just focus on dealings with the U.S. Air Force. It will also include a $100 billion Army program Boeing oversees.

In culture, a commemorative stamp honoring the late President Ronald Reagan will be unveiled today at his presidential library and museum in California. You can't buy it yet. It won't be available nationwide until February.

In sports, the New York Jets will start the second half of the season without quarterback Chad Pennington. He is out with a strained rotator cuff.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

They train hard and work hard, and now you'll have a chance to fill their shoes. Try these kicks on for size when DAYBREAK returns.

(COMMERCIAL BREAK)

COSTELLO: I wonder who picked out that music. That is pretty cool, though.

CHAD MYERS, CNN METEOROLOGIST: Yes.

COSTELLO: First, there was Chuck Taylors, and then Air Jordans were the must-have sport shoe. Now the British army is getting involved in the shoe wars.

MYERS: It's safe to say probably something a little bit more than basketball going on there. CNN Paula Hancocks has the story.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT (voice over): The British army, famous for its fitness, its discipline, and now its trainers. The new weapon of choice, the PTO3, a running shoe named after the forces' notoriously tough physical training program.

COL. PHIL WATKINS, BRITISH ARMY: The army has a fantastic sort of trademark. The British army is the best army in the world. We've certainly got the fittest army in the world. So, why not use the brand?

HANCOCKS: The brains behind the idea believe the forces' insignia of crossed swords could become as recognizable as the Adidas stripes and the Nike swoosh.

(on camera): This is the first time that the army logo has been used for profit. They wanted to make sure they got it right. That's why they have rigorous testing of the trainers here at the Army School for Physical Training. (voice over): These boys put the trainers through their paces and reported back.

DAVID HYMES, U.K. GEAR: If you want a running shoe, you can't -- if it's working for the British army and their own fitness professionals, it's going to be good enough for most people in what they want to do.

HANCOCKS: The army may profit from its brand, but it also has to protect its reputation.

COL. ROBIN CLIFFORD, BRITISH ARMY: There is a very fine dividing line that we have to tread here between endorsement, sponsorship and branding. We would only get involved in branding those products with which we have been intimately involved in the development phase. We're not about to lend our image or our reputation to off-the-shelf products for pure financial gain.

HANCOCKS: So, don't expect army key rings or magnets for the fridge anytime soon. But there could be more products promoting the outward bound image of the forces if this first experiment pays off.

Paula Hancocks, CNN, Aldershot, England.

(END VIDEOTAPE)

COSTELLO: It's a great way to raise money for the military. The U.S. Army should sponsor some shoes. We'll have shots of the most glamorous ladies of the business next as voted by "Glamour" magazine. You're watching DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: "Glamour" magazine celebrates the 2004 women of the year. They did that last night in Manhattan. We though we'd show you a few pictures, because they're kind of cool.

MYERS: Yes.

COSTELLO: This is actress Kate Winslet. And did she not look amazing?

MYERS: That's a really good picture, and she looks really good in it.

COSTELLO: She does.

MYERS: Yes.

COSTELLO: She was named "Glamour's" class act, in essence because she's of normal weight, and they value that. She has a good body image.

MYERS: She's not a size 0, you're saying?

COSTELLO: No. MYERS: Good.

COSTELLO: But she's probably a size 2.

MYERS: Well, it could be 4 or 6.

COSTELLO: Yes. But she's thinner than she usually is in that picture.

Veteran White House correspondent Helen Thomas was honored with a lifetime achievement award for newshound. And guess who presented the award? None other than...

MYERS: Sam Donaldson, there he is.

COSTELLO: Yes.

MYERS: What a great lady.

COSTELLO: That's very cool. Everybody is wondering if she'll get the front seat again in President Bush's press conferences. She doesn't think so.

And a special tribute to female soldiers. Jessica Lynch appeared at the ceremony, and she's obviously still recovering from injuries she suffered as a POW. But she looks pretty good herself.

MYERS: That is not camouflage, let me tell you.

COSTELLO: No.

MYERS: She looks...

COSTELLO: A far different kind of outfit.

MYERS: She looks very nice in that.

COSTELLO: She does indeed.

Thank you for joining us this morning. "AMERICAN MORNING" starts right now.

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 9, 2004 - 06:31   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."

There is late word this morning that Yasser Arafat's condition has worsened. Hospital officials in Paris say the Palestinian leader has fallen into a deeper coma. And we learned just minutes ago that group of Palestinian leaders in Paris, well, they've gone inside the hospital. We'll head live to Paris in just a minute.

Day two of the Falluja offensive in Iraq. So far, U.S. troops have faced less-than-expected resistance. Our Jane Arraf is with one Army unit. She reports that unit believes it has killed or wounded as many as 90 insurgents.

And as the battle rages in Falluja, President Bush and his wife plan a bedside visit to soldiers wounded in Iraq. They'll stop by the Walter Reed Army Medical Center in Washington later this afternoon.

And before heading to the hospital, the first lady will attend an event just outside of her front door. She'll preside over the re- opening of Pennsylvania Avenue in front of the White House. The pedestrian plaza has been closed for renovation since January.

(WEATHER REPORT)

COSTELLO: Let's try to find out more now about Yasser Arafat and whether that delegation from the Palestinian territories will actually get to talk to his doctors or see him. Let's head live to Paris and Jim Bittermann with the latest.

Good morning -- Jim.

JIM BITTERMANN, CNN CORRESPONDENT: Hi, Carol.

Yes, that delegation arrived just a short while ago here at the hospital about 10 minutes ago. They have gone inside. Four top Palestinians, in fact, probably the top leadership beneath Yasser Arafat, have traveled here, trying to make their assessment of whether Palestinian President Arafat will ever be able to resume his duties; that, after days of rumors about his exact state of health.

Now, we heard something about that state of health just a short while ago. About an hour ago, Christian Estripeau, the general who controls the information coming out of the hospital here, said to journalists that, in fact, Arafat's condition had worsened overnight, that he's slipped into a deeper coma, and they're offering no prognosis. That idea that they're offering no prognosis is the most dire description we've heard yet of Arafat's medical condition, and certainly differs a lot from what we've been hearing for the last five days that basically he was in stable condition -- Carol.

COSTELLO: Jim Bittermann reporting live from Paris this morning, thank you.

Let's talk more about the situation surrounding Arafat, the Palestinian group there in Paris, Arafat's wife being so upset. For some perspective, we bring in Jon Alterman, director of the Middle East program for the Center for Strategic and International Studies. He joins us from Washington.

Good morning.

JON ALTERMAN, CTR. FOR STRATEGIC INTL. STUDIES: Good morning.

COSTELLO: What do you make of this situation? Is it a good sign that that delegation was allowed inside the Paris hospital?

ALTERMAN: It's really not a good sign or a bad sign. There has been warring between the Palestinian factions. Farouk Kaddoumi, who was part of the Palestinian leadership and never went back because he was opposed to the Oslo Accords, was speaking to Suha Arafat over the weekend. And we still don't know what the Hamas people and other people in the Palestinians' guard are going to do. This is the old guard, but it's not clear that they're going to be the new guard after Arafat leaves the scene.

COSTELLO: Is it possible that Suha Arafat had a conversation with her husband before he became so ill about how to handle a situation like this?

ALTERMAN: It's possible. She hasn't seen her husband in four years. So, it's unclear that her husband would talk about this very much. But it's certainly possible. Anything is. And I certainly don't know what went on between a husband and his wife.

COSTELLO: Some Palestinians say they're embarrassed by Suha Arafat's behavior. They don't understand it. Some say it's all because of money, because she wants to control the purse strings. What's it really about?

ALTERMAN: She was never popular in the Palestinian scene. Partly, people kept saying that Yasser Arafat was never married because he was married to the cause. And here you have a woman who comes from a Christian family. Christians are a small percentage, 1 or 2 percent, of the Palestinian community.

She was always wealthy. She wanted to decorate things lavishly. She was much younger than him. She never really was accepted in the Palestinian community. And there had been rumors for years about how she spends money, and she's not really committed to the Palestinian cause; she's committed to living a comfortable life. COSTELLO: Interesting. OK, so the delegation is in the hospital, and let's say they do talk to the doctors. Let's say they do see Yasser Arafat. What's the next step?

ALTERMAN: The next step really is getting a sense for when there might be a transition in the Palestinian areas, who might take the leadership role, how that might work out and how other people who are outside of the power structure might be brought in.

One of the ways in which the Palestinian community was held together is there was a consensus that everybody had to follow Arafat, that he was the undisputed leader of the community. Abu Mazen doesn't have that kind of support. Abu Ala does not have that kind of support. Nobody else has that kind of support.

So, how do you keep everybody together? How do you keep everybody agreed on a goal forward? How do you get everybody to agree when you don't use violence without a symbol like Arafat at the helm? And that's a very, very difficult transition that they're going to have to make in the coming months.

COSTELLO: So, can the United States step in and do anything? Or is that a bad idea?

ALTERMAN: Most of what the U.S. can do is make things worse, because if the U.S. were to embrace any party, that would make them suspect, that would make it look like they were selling out. And one of Arafat's great legacies in the Palestinians' minds is that he never sold out. The Israelis, too, their ability to make things worse is much, much better -- is much greater than their ability to make things better.

So, I think there is going to be a lot of caution on both the Israeli side, which you've already seen, and also on the U.S. side.

COSTELLO: Jon Alterman, thanks for joining us live from Washington this morning.

Howard Dean may be planning a comeback. The former Democratic presidential candidate may have his sights set on another big title within the party. We'll tell you just what it is in five minutes.

And immediately after that, the Supreme Court could have a very different look in President Bush's second administration. We'll bring you the left and the right view of those possibilities.

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

(COMMERCIAL BREAK)

COSTELLO: Former Democratic presidential candidate Howard Dean could make a political comeback. The former Vermont governor told a "New York Post" -- told a New York audience, that is, he has not decided whether to pursue the chairmanship of the National Democratic Party or run for president again. Dean also downplayed President Bush's victory.

(BEGIN VIDEO CLIP)

HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: The message is very clear for the president of the United States. Fifty-one percent is not a mandate, and we're not retreating and we're not giving up and we're not going to stop fighting, because we're going to stand up for ordinary Americans, even though this president doesn't.

(END VIDEO CLIP)

COSTELLO: Dean said most Americans are concerned about jobs, health insurance, education and a foreign policy based on moral leadership, not military strength.

In the meantime, President Bush is laying the groundwork for his second term, and one item on that crowded agenda could include appointing up to four Supreme Court justices. Who is on the short list, and how will the makeup of the court change?

Joining us from the left, talk show host Nancy Skinner, and from the right, talk show host Armstrong Williams.

Welcome to you both.

NANCY SKINNER, RADIO TALK SHOW HOST: Good morning, Carol.

ARMSTRONG WILLIAMS, RADIO TALK SHOW HOST: Good morning.

COSTELLO: So, let's talk about Howard Dean first. Because, Armstrong, do you really think there is a chance that Howard Dean will pursue the chairmanship of the National Democratic Party, and that the Democrats will accept him? And is that a good thing?

WILLIAMS: Given the disarray that this Democratic Party is facing right now, anything is possible. At least one thing you can say about Howard Dean, you know what he believes in. You know what he would advocate. And the Democratic Party is definitely searching for a soul and a leader. And until Howard Dean's famous rant, he was the soul of that party at one time.

So, why not give him a chance? He can't do any worse than what Terry McAuliffe has done over the last -- over the time that he served as its chairman.

COSTELLO: Nancy?

SKINNER: Oh, absolutely, I would love to see Howard Dean at the DNC, because look what he did during the primary process. He gives Democrats backbone, and that's what we need right now. All of this discussion about the election results and we have to now somehow kowtow to the red states and adopt their beliefs, nonsense. That's not what this election was about. Howard Dean knows that, and he's got a backbone. I'd love to see it.

COSTELLO: Yes, but isn't -- the liberal label is certainly attached to Howard Dean. Wouldn't that...

SKINNER: They attach that label to everybody. They've demonized the word, Carol, for 25 years. So, anyone who runs, I don't care how conservative they are, they're going to call them a liberal, because it's more about the Pavlovian dog training of that word "liberal." So, it doesn't matter. We can't worry about what they call us.

WILLIAMS: You know...

SKINNER: We have to be what we are.

WILLIAMS: I'd like to take it further. I don't think the Democrats should run away from what they are. They are liberals. They should be proud of it. They support same-sex marriages. They believe government is the first order of business...

(CROSSTALK)

SKINNER: I'm sorry. Who supports same-sex marriages?

WILLIAMS: ... their business. I did not interrupt you. Please...

SKINNER: But John Kerry doesn't.

WILLIAMS: I didn't...

COSTELLO: Wait, wait, one at a time.

WILLIAMS: It's OK. I did not interrupt you. Please, show some restraint. The Democratic Party is in bed with the teachers' union. They're in bed with other left-leaning organizations, like NOW and the NEA. So, they should not abandon their core belief system and the people that support them over the last several decades.

SKINNER: But for you to say...

WILLIAMS: Everybody knows...

SKINNER: For you to say the Democratic Party...

WILLIAMS: Everyone knows exactly...

SKINNER: ... supports same-sex marriages, Armstrong...

WILLIAMS: Everyone knows exactly...

SKINNER: ... is wrong.

WILLIAMS: OK, you go ahead, please.

COSTELLO: OK, hold on, hold on, hold on.

WILLIAMS: Go ahead. Go ahead.

COSTELLO: Let's turn another corner and talk about the Supreme Court. Some people say this is President Bush's chance to unite the country by his choice. Will he decide to do that? Or will there really be a litmus test placed on the next chief justice of the Supreme Court? Armstrong.

WILLIAMS: Absolutely not. The president said there would be no litmus test for his judges. It is no secret that Chief Justice Rehnquist is very ill. It's probable that he will not return to the court. The president's faced some difficult challenges with that court. He will select justices that reflect his belief system on the order of Justices Clarence Thomas and Antonin Scalia. He's made that very clear. He's been consistent.

I think those justices reflect the majority of what Americans want, especially in this recent election. And I think the president will hold the principle on that, and you will see more conservative justices on the Supreme Court, not right-leaning justices, but justices that reflect the ideology and the perspective of where Americans would like to see this country go.

COSTELLO: Nancy, I can tell you're chafing a bit.

SKINNER: Well, he just said that there was no litmus test, but he's going to pick these right-wing conservative judges. I'll tell you, the evangelical Christians want their doing now, having elected this president. And I don't think Jim McGreevey is going to be on the short list here, OK? We're going to see -- and this is what they're actually talking about -- possibly having Clarence Thomas elevated to chief justice and John Ashcroft's name being mentioned.

Of course, there's a litmus test here. They have not nominated a judge to the federal bench so far that is supportive of reproductive rights. Every single one of these judges will be anti-choice, and you are going to see major changes with Roe v. Wade during this term. I predict that.

WILLIAMS: That is not true. You know what I don't understand? When John Kerry was running for president, he made it clear that there would be a litmus test on judges, that they would have to -- they would not be -- he would not put on pro-life judges on the court. Bush has never made himself accountable to that kind of standard. He said that would not be so.

The kind of justices that you will see that's probably on the short list is Miguel Estrada. Janice Rogers Brown would probably go back and try to go through a confirmation where she's elevated to the circuit court. You may see people like C. Boyden Gray, who is probably a wild card.

But this president is consistent. This is a conservative president. Why would you expect this president, who is a conservative president, to appoint justices that do not reflect his ideologies? It just doesn't make any sense.

COSTELLO: Yes, but, Armstrong...

SKINNER: It's the same thing. COSTELLO: Let me interrupt for just a second. Armstrong, I do want to ask you this. You said there will be no litmus test. But Arlen Specter came out and said, you know, maybe we should really think about who we're placing on the Supreme Court. Those words got him in deep trouble. He's been on the radio. He's been everywhere trying to repair the damage because he's afraid of what will happen.

SKINNER: By the Christian right...

WILLIAMS: Wait a minute. May I respond to that? May I...

SKINNER: By the Christian right...

(CROSSTALK)

WILLIAMS: May I respond to that? I met with Arlen Specter yesterday for a half-hour. And that is not what Arlen Specter said. Arlen Specter was not afraid. He's very supportive of the president. Arlen Specter has supported Coacher (ph). Arlen Specter has supported all of the president's recommendations. He's been a champion. He was a champion for Supreme Court Justice Clarence Thomas. Arlen Specter is a principled person. He will do a very good job in being fair as chairman of the Senate Judiciary Committee.

And, no, the president -- and, yes, some conservatives are bent out of shape over what he said. But it was misinterpreted by the AP reporter who interviewed him at the time.

COSTELLO: OK, Nancy, last word.

SKINNER: Carol, can I jump in?

COSTELLO: Yes.

SKINNER: What he's saying is we've put him in his place. He spoke out independently, and James Dobson said his nomination must be derailed. And we've talked to hosts. We put him in his place. No independent-minded judiciary. No way. We're going to make sure they toe our line. You're proving my point, Armstrong.

COSTELLO: All right, I wish we had more time, but we do not. Armstrong Williams and Nancy Skinner, thanks for joining DAYBREAK this morning.

WILLIAMS: Thank you.

Let's head live to New York now to check in with Bill and Soledad for a look at what's coming up on "AMERICAN MORNING."

Good morning to you both.

HEMMER: Hey, Carol. Good morning to you as well.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, Carol.

HEMMER: We're keeping a very close eye on what's happening in Iraq. We're getting reports just about every 15 minutes about different aspects of progress for the Marines and the Army. So, we'll talk about that today.

We'll also talk with John Danforth, the U.S. rep to the U.N., about his thoughts about the battle that continues at this hour, Carol.

O'BRIEN: And we're talking about the Peterson jurors, the judge's new instructions. Do they indicate one or more inflexible jurors? What's happening right now? We'll take a look at that. Robert Hirschhorn is a jury and trial consultant. Also, we'll hear from Lisa Bloom of Court TV. Jeff Toobin will join us with his analysis. And Dean Johnson, the former San Mateo County prosecutor, as well will weigh in on what he thinks is happening right now with those jurors.

HEMMER: Also, serial returners, stores using new technology to stop fraud, but the innocent are being swept in with the guilty. Vera Gibbons, a personal finance advisor, we'll talk to her about those issues today.

O'BRIEN: Have you ever done that?

HEMMER: I have not. Have you?

O'BRIEN: No, never. I think -- have you ever done that, Carol?

COSTELLO: No.

O'BRIEN: You know, you buy it, you wear it, then you return it?

COSTELLO: No.

HEMMER: Well, Toure had a word for that last week: shop- grifting.

O'BRIEN: Shop-grifting is what Toure called it. Apparently, tons and tons of money is spent on that. So, we're going to talk with Vera about that ahead this morning.

COSTELLO: Interesting. Well, we look forward to it. We'll catch you in 10 minutes.

HEMMER: Bye-bye.

COSTELLO: Your news, money, weather and sports. It's 6:48 Eastern. Here's what's all new this morning.

Day two of the Falluja offensive. Some 10,000 U.S. forces are plowing forward, along with about 2,000 Iraqi forces. They've been pounding insurgent targets, dodging sniper fire, and destroying roadside bombs along the way.

A Palestinian delegation has arrived at the hospital outside of Paris, where Yasser Arafat is being treated; this, as hospital officials say the Palestinian leader has fallen into a deeper coma. It is not clear whether the Palestinians will be able to visit their ailing leader.

In money news, a criminal investigation into Boeing is reportedly expanding. "The Wall Street Journal" says the probe will not just focus on dealings with the U.S. Air Force. It will also include a $100 billion Army program Boeing oversees.

In culture, a commemorative stamp honoring the late President Ronald Reagan will be unveiled today at his presidential library and museum in California. You can't buy it yet. It won't be available nationwide until February.

In sports, the New York Jets will start the second half of the season without quarterback Chad Pennington. He is out with a strained rotator cuff.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

They train hard and work hard, and now you'll have a chance to fill their shoes. Try these kicks on for size when DAYBREAK returns.

(COMMERCIAL BREAK)

COSTELLO: I wonder who picked out that music. That is pretty cool, though.

CHAD MYERS, CNN METEOROLOGIST: Yes.

COSTELLO: First, there was Chuck Taylors, and then Air Jordans were the must-have sport shoe. Now the British army is getting involved in the shoe wars.

MYERS: It's safe to say probably something a little bit more than basketball going on there. CNN Paula Hancocks has the story.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT (voice over): The British army, famous for its fitness, its discipline, and now its trainers. The new weapon of choice, the PTO3, a running shoe named after the forces' notoriously tough physical training program.

COL. PHIL WATKINS, BRITISH ARMY: The army has a fantastic sort of trademark. The British army is the best army in the world. We've certainly got the fittest army in the world. So, why not use the brand?

HANCOCKS: The brains behind the idea believe the forces' insignia of crossed swords could become as recognizable as the Adidas stripes and the Nike swoosh.

(on camera): This is the first time that the army logo has been used for profit. They wanted to make sure they got it right. That's why they have rigorous testing of the trainers here at the Army School for Physical Training. (voice over): These boys put the trainers through their paces and reported back.

DAVID HYMES, U.K. GEAR: If you want a running shoe, you can't -- if it's working for the British army and their own fitness professionals, it's going to be good enough for most people in what they want to do.

HANCOCKS: The army may profit from its brand, but it also has to protect its reputation.

COL. ROBIN CLIFFORD, BRITISH ARMY: There is a very fine dividing line that we have to tread here between endorsement, sponsorship and branding. We would only get involved in branding those products with which we have been intimately involved in the development phase. We're not about to lend our image or our reputation to off-the-shelf products for pure financial gain.

HANCOCKS: So, don't expect army key rings or magnets for the fridge anytime soon. But there could be more products promoting the outward bound image of the forces if this first experiment pays off.

Paula Hancocks, CNN, Aldershot, England.

(END VIDEOTAPE)

COSTELLO: It's a great way to raise money for the military. The U.S. Army should sponsor some shoes. We'll have shots of the most glamorous ladies of the business next as voted by "Glamour" magazine. You're watching DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: "Glamour" magazine celebrates the 2004 women of the year. They did that last night in Manhattan. We though we'd show you a few pictures, because they're kind of cool.

MYERS: Yes.

COSTELLO: This is actress Kate Winslet. And did she not look amazing?

MYERS: That's a really good picture, and she looks really good in it.

COSTELLO: She does.

MYERS: Yes.

COSTELLO: She was named "Glamour's" class act, in essence because she's of normal weight, and they value that. She has a good body image.

MYERS: She's not a size 0, you're saying?

COSTELLO: No. MYERS: Good.

COSTELLO: But she's probably a size 2.

MYERS: Well, it could be 4 or 6.

COSTELLO: Yes. But she's thinner than she usually is in that picture.

Veteran White House correspondent Helen Thomas was honored with a lifetime achievement award for newshound. And guess who presented the award? None other than...

MYERS: Sam Donaldson, there he is.

COSTELLO: Yes.

MYERS: What a great lady.

COSTELLO: That's very cool. Everybody is wondering if she'll get the front seat again in President Bush's press conferences. She doesn't think so.

And a special tribute to female soldiers. Jessica Lynch appeared at the ceremony, and she's obviously still recovering from injuries she suffered as a POW. But she looks pretty good herself.

MYERS: That is not camouflage, let me tell you.

COSTELLO: No.

MYERS: She looks...

COSTELLO: A far different kind of outfit.

MYERS: She looks very nice in that.

COSTELLO: She does indeed.

Thank you for joining us this morning. "AMERICAN MORNING" starts right now.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.