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CNN Live At Daybreak

Ailing Arafat; 'Hot Topics'; 'Breakfast With Daybreak'

Aired November 10, 2004 - 06:30   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: More now on Yasser Arafat. A top Palestinian cleric visited Arafat's hospital bed in France just within the past hour. And despite Arafat's grave condition, the cleric says he won't be taken off life support as long as there is any sign of life.
A translator describes why the cleric is in Paris.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: So it doesn't mean anything that perhaps...

UNIDENTIFIED MALE: It doesn't mean anything except what he just explained, that (UNINTELLIGIBLE) and to wish (UNINTELLIGIBLE) probably or maybe bring recovery.

(END VIDEO CLIP)

COSTELLO: It's very difficult to understand, and we apologize for that. But basically, the cleric is sitting beside Arafat's bedside offering comfort.

Other Palestinian officials have seen Arafat in the hospital, and they pronounced him still alive with his brain, heart and lungs working. In the meantime, plans for his burial are going forward in the West Bank.

Live to Washington now and Middle East expert Jon Alterman with the Center for Strategic and International Studies.

Good morning, Jon.

JON ALTERMAN, CSIS, DIR., MIDDLE EAST PROGRAMS: Good morning.

COSTELLO: Arafat's wife allowed the Palestinian foreign minister to see Arafat. He's quoted as saying the dispute with Mrs. Arafat is over. Is it?

ALTERMAN: It's very unclear exactly what the feud was about. It's unclear where the feud might go. Surely there are some issues of money, and there are issues of a woman who is watching her husband die in front of her. My guess is in the longer term the whole issue of Suha Arafat is not going to be remembered when we think about the death of Yasser Arafat.

COSTELLO: Will Suha Arafat attend his funeral in Egypt and then the burial services supposedly in Ramallah? That's still being worked out this morning.

ALTERMAN: My guess is she will, and there will be a huge outpouring from the Arab world. But what will come later is something that nobody really has any idea of. My guess, again, is that Abu Mazen and Abu Allat (ph), the leaders right now of the Palestinian Authority, will have some period of control, and then others will try to wrest control from them.

COSTELLO: Let's go back to what's happening in the Paris hospital right now. An Islamic cleric is there sitting beside Arafat's bedside. Tell us what might be going on here, like the story under the story.

ALTERMAN: As somebody who has watched elderly relatives die in hospitals, there's not much to do. My guess -- it's unclear exactly what the medical situation is, but my guess is he's on a respirator and on IV, and there are no real signs of life except for respiration that's artificially assisted. There's nothing really to do with Yasser Arafat except for the people who are planning to try to control the Palestinian Authority and the Palestinian cause and the Palestinian community after he leaves the scene.

COSTELLO: It is said that the cleric is not there to remove Yasser Arafat from life support. But there is word this morning that a funeral is being planned for Friday and perhaps a burial shortly after that in the West Bank. What do you make of that?

ALTERMAN: Again, I'm not familiar at all with the medical situation he has or what the end of life is like with somebody with his medical condition, but certainly a state funeral takes a long time. Under Islamic law, funerals take place very, very swiftly after death. So there is some interest in figuring out how to coordinate all of this. He's a huge symbol in the Arab world. But ultimately, I think, people agree that is it up to God, and there's nothing that anybody can do to either hasten it or slow it down.

COSTELLO: Jon Alterman with the Center for Strategic and International Studies, thank you for joining DAYBREAK this morning.

Former President Bill Clinton is offering his take on the Arafat situation and the future of Mideast peace. Clinton spoke last night at Hamilton College in upstate New York, and he made it clear he thinks a change in leadership could mean a real shift in prospects for peace.

(BEGIN VIDEO CLIP)

WILLIAM J. CLINTON (D), FORMER PRESIDENT OF THE UNITED STATES: I think that Mr. Arafat's illness will give us a terrific opportunity that the Palestinians unite and have a leadership of people who are committed to peace. They've all been here a long time, and they know exactly what was on the table in 2000 when I made a peace proposal, and Mr. Arafat turned it down. Prime Minister Barak of Israel took it. A year and a half later, Arafat said he wanted it, and by then he had an Israeli government that wouldn't give it to him and an Israeli public that didn't trust him. (END VIDEO CLIP)

COSTELLO: The former president also weighed in on the Bush administration, saying Mr. Bush is propping up a house of cards by cutting taxes as the federal debt continues to grow.

President Bush, as you've heard by now, is losing two cabinet members. Attorney General John Ashcroft and Commerce Secretary Don Evans have resigned. Is this the sign of a second-term shakeup?

Joining us from Washington is Chuck Todd, editor-in-chief of "The National's Journal's" "The Hotline."

Good morning.

CHUCK TODD, "THE HOTLINE": Good morning.

COSTELLO: So, John Ashcroft, some love him, others hate him. What will his legacy be?

TODD: Well, I think it's going to be somewhat of a divisive legacy. I mean, I think the fact that the Patriot Act was, you know, so instrumental in what he was up to. And it's going to be a mixed legacy. I think even he lost, as one Ashcroft partisan told me about a year ago when he reminded me that John Ashcroft will never run for another political office again. He made liberals mad, but he also made conservatives mad, because the Patriot Act was unpopular on both sides of the spectrum.

COSTELLO: OK. So let's talk about that running for office, because some people think he may run for president in 2008.

TODD: Yes. Everything I've heard from people -- you know, Ashcroft did -- you know, he tried to run for president in 2000. You know, he thought about it in 1998. He did some traveling to Iowa, and he did some of those things. He was very popular among the conservative set. But he's not as popular anymore. Conservatives are angry at how he handled the Patriot Act.

And he apparently really got burned out on politics after the whole 2000 Carnahan stuff. When he lost that way, he felt like he lost in a way that was not quite fair. It left a bad taste in his mouth. And everything I understand about Ashcroft is he has no interest in ever running for office again.

COSTELLO: Well, let's talk about his replacement. Word is Alberto Gonzalez may replace him, the White House counsel. He's a conservative. But what about Rudy Giuliani?

TODD: Well, I think Giuliani probably doesn't want in on the administration. I mean, if he really does want to run for president, then he doesn't want to have a ball and chain of a job hanging around his ankle. And I think it's, you know, as anybody who has followed presidential politics knows that the guy with no actual job always has a leg up, because they can run for president full time. And I think, you know, having to be attorney general and having to be part of an administration means he's got to suddenly carry some water that he may not want to be carrying on the campaign trail.

COSTELLO: OK. The Patriot Act, let's talk about that now. That was Ashcroft's tool to prevent terrorism, a controversial act. It's up for renewal. What will happen now that Ashcroft has resigned?

TODD: Oh, I don't think anything changes on that front. I think what will possibly help sort of smooth things over is you'll have a different messenger. Alberto Gonzalez, assuming it is him, will have -- you know, will have a chance to sort of change the tone. You know, we've heard that cliche a lot, change the tone in Washington. Well, he might be able to change the tone on how he sells the Patriot Act. And it might smooth things over a little bit.

I mean, it's certainly an opportunity to try to resell and repackage the Patriot Act, even if they really aren't going to change it much.

COSTELLO: So it may be a kinder, gentler Patriot Act, but not really.

TODD: Well, you know, it depends on your view of the Patriot Act, exactly.

COSTELLO: Chuck Todd from "The Hotline" joining us live this morning, thank you.

Are you sitting down to a bowl of cereal? If you read the box, you might think you're getting a healthy start to your day. We'll weigh in on the nutritional values at 6:42 Eastern.

Then, they pick and they grin, and, oh yes, they can rock, too. We'll check out the Country Music Awards -- the Country Music Association Awards.

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

(COMMERCIAL BREAK)

COSTELLO: Now to our market watch. Futures are mixed this morning. The Dow is down 7 points, Nasdaq is up 2.5, the S&P 500 is higher by just a couple of points as well.

Let's talk health now and what you're eating for breakfast. If you're reaching for that bowl of cereal this morning, do you know what you're getting? Check out the box. You'll see a lot of claims about the various health benefits of different cereals. But what's real and what's hype?

Our registered dietitian, Lisa Drayer, has some answers for you this morning.

Well, you're right. A lot of cereals make, like, incredible claims, like they can prevent heart attacks and such.

LISA DRAYER, REGISTERED DIETITIAN: Exactly, Carol. It's amazing when you walk down the cereal aisle these days you might think you've hit the fountain of youth looking at all of these different claims. But not all of the health claims on cereal boxes are created equal, and it can be difficult to distinguish between the different types of claims.

Let's take a look at some examples now. I have some with me. For example, this is Honey Nut Cheerios. It says Honey Nut Cheerios can help lower cholesterol and reduce the risk of heart disease as part of a low-fat diet with the soluble fiber in Honey Nut Cheerios.

COSTELLO: Wow!

DRAYER: There's a mouthful there. But this is an example of an actual health claim. That's because it relates to reducing the risk of a disease. So these disease-related claims must meet FDA approval before they can appear on these boxes. They're based on a rigorous scientific review of the evidence relating to the claim, and they must be based on specific nutrient criteria. In this case, the cereal must have a minimum amount of oat fiber, and it must also be low in fat and cholesterol in order to bear the claim.

Now, another type of claim that we see on Smart Start cereal, it says antioxidants to help support a healthy immune system. This is known as a structure function claim. It can be thought of as well- being claim. It doesn't specifically relate to reducing the risk of a disease. It doesn't require approval by the FDA, and it's based on the manufacturer's interpretation of the scientific evidence relating to the claim. So a little more vague here.

And structure function claims often use terms like "support," "maintains" or "builds," like "calcium builds healthy bones."

And then we see multiple claims, like, for example, on Kashi Heart to Heart cereal, a combination of health claims and structure function. For example, reducing cholesterol is a health claim. It points to reducing the risk of heart disease by lowering cholesterol levels. Support healthy arteries. That's a structure function claim. And manage hypertension. It can make that claim because the cereal has less than 140 milligrams of sodium per serving.

COSTELLO: So this is very complicated. So tell us how to decode it to find out which cereals are actually good for us and do what they claim.

DRAYER: Right. Well, your best bet, Carol, in order to determine the nutritional content of the cereal is to simply read the label and to see what you're getting by looking at the actual nutrients. So looking at the label, you can see specific quantities. You can also see percent daily values.

I have another example with me here. This is Post Blueberry Morning cereal. It says it's cholesterol-free and high in folic acid. But you might think, well, what does "high" mean? If you look at the label you'll see that it has 25 percent of the daily value for folic acid. So you're getting a quarter of what you would need for this important B vitamin in one serving of this cereal. So look at that label.

COSTELLO: I wish we had so much more time. We're going to have to get you back to talk about more specifics as it applies to cereal, because this is fascinating. It really is.

DRAYER: Yes, and it's everywhere.

COSTELLO: Lisa Drayer reporting live from New York for us this morning, thank you.

Your news, money, weather and sports. It's 6:44 Eastern. Here's what's all new this morning.

The kidnappings have hit home for Iraq's interim prime minister. An aide says three members of Ayad Allawi's extended family were taken at gunpoint from their Baghdad home on Tuesday. The kidnappers have made no demands yet.

Don't drink the water. That travel advice extends to when you are in flight. The EPA has found harmful bacteria in the water of one out of every eight planes tested. The government plans more frequent airline water inspections.

In money news, interest rates are rising again. The Federal Reserve is expected to hike the rates today for the fourth time this year. And analysts say it probably won't stop there due to the recent strong economic data.

In culture, happy birthday to Big Bird and the bunch. "Sesame Street" debuted on PBS 35 years ago today. In the past 35 years, there have been more than 4,000 episodes. "Sesame Street" has been seen in 120 countries.

In sports, Shaquille O'Neal is living up to the hype in Miami. With his help, the Heat is off to their best start in franchise history. Shaq had 20 points in their victory over the Washington Wizards, which puts their record at 4-0. But, of course, they were playing the Washington Wizards.

CHAD MYERS, CNN METEOROLOGIST: True. But maybe the Dolphins and the Heat have kind of reverse osmosis thing going on there.

COSTELLO: Maybe so.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Now let's head live to New York to check in with Bill and Soledad to see what's coming on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol. Good morning.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol. Good morning to you. HEMMER: Among our headlines this morning on our show today, U.S. forces are again battling insurgents. We'll talk to what's happening on the ground in Falluja, get updates from Iraq as well, Iraqi prime minister's family. Marine Colonel Thomas Hemmis (ph) says no doubt about winning Falluja. The real question is can the insurgents be beaten? We'll talk to him and get his thoughts today as well.

O'BRIEN: Also this morning as you well know, more disruption in that Peterson jury. So what kind of a person is that dismissed juror? And does the alternative now change the jury's makeup? This morning, we talk with former juror Justin Falconer. He knows them both. Also we'll check in with Jeff Toobin. Dean Johnson, a former prosecutor, will update us on what he knows about this.

HEMMER: We've got it surrounded, don't we, that story?

O'BRIEN: From all angles today.

HEMMER: Yes. Also, last August, two passenger jets nearly collided in L.A., one getting ready to land and one getting ready to take off. We'll talk to the chairwoman of the NTSB today. Technology now being used to try and prevent this kind of disaster, very high on her wish list among a few other things, too, so we'll get that.

O'BRIEN: All that and much more this morning, Carol. We'll see you in just a little bit.

COSTELLO: All right, thank you both.

HEMMER: Bye-bye.

COSTELLO: Still to come on DAYBREAK, the big winners from country music's biggest night.

(COMMERCIAL BREAK)

COSTELLO: Brooks & Dunn. Thank you, Chad. The king of country music, Chad Myers.

Last night's Country Music Awards definitely gave Kenny Chesney and Tim McGraw plenty to sing about. Others went home with "Achy, Breaky Hearts." Did you like that?

MYERS: Yes, very good.

COSTELLO: Thank you. We decided to take it up with Tom O'Neil from "In-Touch Weekly" magazine and let him sort it out. He joins us live from New York.

Good morning.

TOM O'NEIL, EDITOR, "IN-TOUCH WEEKLY": Good morning, Carol.

COSTELLO: So it was a big night for Kenny Chesney.

O'NEIL: Yes, he took home both entertainer of the year and album of the year. And what's remarkable about this is Alan Jackson didn't win anything. He had seven nominations and usually dominates these top categories. What we saw last night was the changing of the old guard and new talent like Kenny, who is actually not so new. He's been out there in the trenches for the past 12 years.

COSTELLO: Wow! Toby Keith didn't win anything either.

O'NEIL: I know! He had six nominations and came up with nothing. This night belonged to the young lions. Check out this guy. This is the new face of country. This is Keith Urban. He is the -- he's from Australia. So he's not from...

COSTELLO: That's weird.

O'NEIL: Isn't that amazing? But he was performing country music in Australia since he was 8 years old. And last night, he didn't behave like one of those good, old country boys, Carol. He cried at the podium when he won! And he rocked the place. He gave the performance of the night.

COSTELLO: He is one handsome man.

O'NEIL: He's a heck of a musician.

COSTELLO: Chad...

MYERS: I have his CD if you want to borrow it.

COSTELLO: Really?

MYERS: Yes.

COSTELLO: I would like to borrow that just to listen to him.

O'NEIL: He was so good last night that when he was done performing "Days Go By," Kix Brooks even turned around and went, "Wow!"

COSTELLO: That's awesome. You know, you talk about the old guard being replaced by the new, but Martina McBride won, and she's certainly a member of the old guard.

O'NEIL: Yes, she is. This was the fourth win for her as female vocalist of the year. She ties Reba McEntire. But this is -- you know, she's an evergreen talent. She is terrific and comes back every year with great music.

COSTELLO: She certainly does. And, of course, always a favorite, Shania Twain performed, and she also was sort of the mistress of ceremonies.

O'NEIL: Well, she kept coming back. The actual hosts were Brooks & Dunn.

COSTELLO: Oh, and then she would pop in, in different outfits.

O'NEIL: Yes. There she is. She is one sexy gal who sells a lot of records. And she's pretty talented, too.

COSTELLO: Yes. And it's weird because Shania Twain isn't exactly beloved within the country music world, is she?

O'NEIL: No, she's from Canada. And, see, this is what has those Nashville boys so nervous is that people like Shania, people like Keith Urban, who aren't from the South are now dominating to some extent the new wave of country music. And that's great, because I'm a fan. I love country music, and I think that it belongs to all of us, even though I live in New York.

COSTELLO: Exactly, exactly. Let's take a look at Shania Twain's outfits, since I'm speaking about them, because she's such a beautiful woman. But I don't know who her stylist is, but she wears some wacky clothes.

O'NEIL: You critique this one for us, Carol. What do you think?

COSTELLO: Well, I kind of like the skirt, but I don't understand what she has on her arms.

MYERS: I think those are gloves.

COSTELLO: They have no fingers.

MYERS: Oh.

COSTELLO: And they sort of...

MYERS: Well, they're hunting gloves.

COSTELLO: Oh, really?

MYERS: No.

COSTELLO: The new hunting gloves.

O'NEIL: That's a good theory, Chad.

COSTELLO: Tom O'Neil, it's always fun.

O'NEIL: Same here.

COSTELLO: Thanks for joining us this morning.

We'll be right back. This is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Before we go, we have some explaining to do.

MYERS: This will be the last time you have to sit on that ugly chair or be on this ugly set.

COSTELLO: Oh, that's terrible. MYERS: Carol is getting to move to New York. You got married a couple of months ago. I was there. And her husband lives in the New York City metro area. So CNN is nice enough to move you up there so you can be with your husband.

COSTELLO: Isn't that great? I have the best bosses on the planet, I think. But it won't make much difference to you, because I'll still be doing DAYBREAK.

MYERS: Exactly.

COSTELLO: We're still going to be on at 5:00 a.m. to 7:00 a.m. Eastern Time. Chad will still be part of the program. The only difference you will see is we'll have a different set, and I'll be sitting on a different set in a different city. It will be New York City.

MYERS: And it is New York City. And speaking of that, we went to all of the producers yesterday and we said, what does Carol need to move to New York City? What's the biggest -- what are some of the best things she needs? What are some of the biggest things she needs? And we came up with a top 10 list.

Now the top 10 list. Carol, survival guide for New York City. Get a good map.

COSTELLO: Oh, yes.

MYERS: And for you, Carol, a compass.

COSTELLO: Yes, I'm terrible with directions.

MYERS: Because you can't even figure out which way south is when the sun is out.

COSTELLO: Exactly.

MYERS: A winter coat.

COSTELLO: Oh, yes.

MYERS: Ditch the car.

COSTELLO: I know. I can't drive my beautiful car anymore. That really cuts me.

MYERS: You need to buy the subway tokens. Don't bad-mouth the Yankees. Only George Steinbrenner can do that.

COSTELLO: I'm sorry. I can't get away from that, because, you know, I'm sorry. I hate the Yankees.

MYERS: No. 5, read page 6 of the "New York Post."

COSTELLO: I do that already.

MYERS: Yes, ah-ha. Bring your own grits, because they don't have them up there. Move at the pace of Manhattan.

COSTELLO: That's right. I'm used to the southern mentality, a relaxed atmosphere.

MYERS: That's right. You need to start talking faster and learn to text message. Move quicker is No. 9. And No. 10, the top 10 reason, take advantage of the world's greatest city and take advantage of your husband.

COSTELLO: Oh!

MYERS: No, no, take advantage of being with your husband, of course.

COSTELLO: No, I like that part.

MYERS: And we did get a little bit of a gift basket, Carol -- please bring this in -- for things that you're going to miss from Georgia. One, grits. Two, peach wine. You just can't get peach wine in the (UNINTELLIGIBLE). Of course, Jimmy Carter's peanuts. And to go with those peanuts a little Peach Tree beer. I got you some Williams and Brothers hot sauce, the best hot sauce in town. Some little peach chetney (ph), because they don't have peaches up there. You know that? A Zogat's (ph) book.

COSTELLO: Oh, that's great.

MYERS: There you go. And so then we can eat later on today. Got you a chocolate pecan pie.

COSTELLO: My gosh!

MYERS: And a peach pie.

COSTELLO: This is incredible.

MYERS: So you can get all of this in your suitcase, and you can get all of this in your stomach.

COSTELLO: Thank you so much.

MYERS: So there you go.

COSTELLO: And I will miss Atlanta. Atlanta is a wonderful city.

MYERS: And you will.

COSTELLO: And the only reason I'm going up there is my husband's up there, and it's a pretty nice city, New York.

MYERS: It's nice to be in the same city that your spouse is in.

COSTELLO: Yes, it's probably better for the marriage. "AMERICAN MORNING" starts right now.

MYERS: See you tomorrow. 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 10, 2004 - 06:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: More now on Yasser Arafat. A top Palestinian cleric visited Arafat's hospital bed in France just within the past hour. And despite Arafat's grave condition, the cleric says he won't be taken off life support as long as there is any sign of life.
A translator describes why the cleric is in Paris.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: So it doesn't mean anything that perhaps...

UNIDENTIFIED MALE: It doesn't mean anything except what he just explained, that (UNINTELLIGIBLE) and to wish (UNINTELLIGIBLE) probably or maybe bring recovery.

(END VIDEO CLIP)

COSTELLO: It's very difficult to understand, and we apologize for that. But basically, the cleric is sitting beside Arafat's bedside offering comfort.

Other Palestinian officials have seen Arafat in the hospital, and they pronounced him still alive with his brain, heart and lungs working. In the meantime, plans for his burial are going forward in the West Bank.

Live to Washington now and Middle East expert Jon Alterman with the Center for Strategic and International Studies.

Good morning, Jon.

JON ALTERMAN, CSIS, DIR., MIDDLE EAST PROGRAMS: Good morning.

COSTELLO: Arafat's wife allowed the Palestinian foreign minister to see Arafat. He's quoted as saying the dispute with Mrs. Arafat is over. Is it?

ALTERMAN: It's very unclear exactly what the feud was about. It's unclear where the feud might go. Surely there are some issues of money, and there are issues of a woman who is watching her husband die in front of her. My guess is in the longer term the whole issue of Suha Arafat is not going to be remembered when we think about the death of Yasser Arafat.

COSTELLO: Will Suha Arafat attend his funeral in Egypt and then the burial services supposedly in Ramallah? That's still being worked out this morning.

ALTERMAN: My guess is she will, and there will be a huge outpouring from the Arab world. But what will come later is something that nobody really has any idea of. My guess, again, is that Abu Mazen and Abu Allat (ph), the leaders right now of the Palestinian Authority, will have some period of control, and then others will try to wrest control from them.

COSTELLO: Let's go back to what's happening in the Paris hospital right now. An Islamic cleric is there sitting beside Arafat's bedside. Tell us what might be going on here, like the story under the story.

ALTERMAN: As somebody who has watched elderly relatives die in hospitals, there's not much to do. My guess -- it's unclear exactly what the medical situation is, but my guess is he's on a respirator and on IV, and there are no real signs of life except for respiration that's artificially assisted. There's nothing really to do with Yasser Arafat except for the people who are planning to try to control the Palestinian Authority and the Palestinian cause and the Palestinian community after he leaves the scene.

COSTELLO: It is said that the cleric is not there to remove Yasser Arafat from life support. But there is word this morning that a funeral is being planned for Friday and perhaps a burial shortly after that in the West Bank. What do you make of that?

ALTERMAN: Again, I'm not familiar at all with the medical situation he has or what the end of life is like with somebody with his medical condition, but certainly a state funeral takes a long time. Under Islamic law, funerals take place very, very swiftly after death. So there is some interest in figuring out how to coordinate all of this. He's a huge symbol in the Arab world. But ultimately, I think, people agree that is it up to God, and there's nothing that anybody can do to either hasten it or slow it down.

COSTELLO: Jon Alterman with the Center for Strategic and International Studies, thank you for joining DAYBREAK this morning.

Former President Bill Clinton is offering his take on the Arafat situation and the future of Mideast peace. Clinton spoke last night at Hamilton College in upstate New York, and he made it clear he thinks a change in leadership could mean a real shift in prospects for peace.

(BEGIN VIDEO CLIP)

WILLIAM J. CLINTON (D), FORMER PRESIDENT OF THE UNITED STATES: I think that Mr. Arafat's illness will give us a terrific opportunity that the Palestinians unite and have a leadership of people who are committed to peace. They've all been here a long time, and they know exactly what was on the table in 2000 when I made a peace proposal, and Mr. Arafat turned it down. Prime Minister Barak of Israel took it. A year and a half later, Arafat said he wanted it, and by then he had an Israeli government that wouldn't give it to him and an Israeli public that didn't trust him. (END VIDEO CLIP)

COSTELLO: The former president also weighed in on the Bush administration, saying Mr. Bush is propping up a house of cards by cutting taxes as the federal debt continues to grow.

President Bush, as you've heard by now, is losing two cabinet members. Attorney General John Ashcroft and Commerce Secretary Don Evans have resigned. Is this the sign of a second-term shakeup?

Joining us from Washington is Chuck Todd, editor-in-chief of "The National's Journal's" "The Hotline."

Good morning.

CHUCK TODD, "THE HOTLINE": Good morning.

COSTELLO: So, John Ashcroft, some love him, others hate him. What will his legacy be?

TODD: Well, I think it's going to be somewhat of a divisive legacy. I mean, I think the fact that the Patriot Act was, you know, so instrumental in what he was up to. And it's going to be a mixed legacy. I think even he lost, as one Ashcroft partisan told me about a year ago when he reminded me that John Ashcroft will never run for another political office again. He made liberals mad, but he also made conservatives mad, because the Patriot Act was unpopular on both sides of the spectrum.

COSTELLO: OK. So let's talk about that running for office, because some people think he may run for president in 2008.

TODD: Yes. Everything I've heard from people -- you know, Ashcroft did -- you know, he tried to run for president in 2000. You know, he thought about it in 1998. He did some traveling to Iowa, and he did some of those things. He was very popular among the conservative set. But he's not as popular anymore. Conservatives are angry at how he handled the Patriot Act.

And he apparently really got burned out on politics after the whole 2000 Carnahan stuff. When he lost that way, he felt like he lost in a way that was not quite fair. It left a bad taste in his mouth. And everything I understand about Ashcroft is he has no interest in ever running for office again.

COSTELLO: Well, let's talk about his replacement. Word is Alberto Gonzalez may replace him, the White House counsel. He's a conservative. But what about Rudy Giuliani?

TODD: Well, I think Giuliani probably doesn't want in on the administration. I mean, if he really does want to run for president, then he doesn't want to have a ball and chain of a job hanging around his ankle. And I think it's, you know, as anybody who has followed presidential politics knows that the guy with no actual job always has a leg up, because they can run for president full time. And I think, you know, having to be attorney general and having to be part of an administration means he's got to suddenly carry some water that he may not want to be carrying on the campaign trail.

COSTELLO: OK. The Patriot Act, let's talk about that now. That was Ashcroft's tool to prevent terrorism, a controversial act. It's up for renewal. What will happen now that Ashcroft has resigned?

TODD: Oh, I don't think anything changes on that front. I think what will possibly help sort of smooth things over is you'll have a different messenger. Alberto Gonzalez, assuming it is him, will have -- you know, will have a chance to sort of change the tone. You know, we've heard that cliche a lot, change the tone in Washington. Well, he might be able to change the tone on how he sells the Patriot Act. And it might smooth things over a little bit.

I mean, it's certainly an opportunity to try to resell and repackage the Patriot Act, even if they really aren't going to change it much.

COSTELLO: So it may be a kinder, gentler Patriot Act, but not really.

TODD: Well, you know, it depends on your view of the Patriot Act, exactly.

COSTELLO: Chuck Todd from "The Hotline" joining us live this morning, thank you.

Are you sitting down to a bowl of cereal? If you read the box, you might think you're getting a healthy start to your day. We'll weigh in on the nutritional values at 6:42 Eastern.

Then, they pick and they grin, and, oh yes, they can rock, too. We'll check out the Country Music Awards -- the Country Music Association Awards.

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

(COMMERCIAL BREAK)

COSTELLO: Now to our market watch. Futures are mixed this morning. The Dow is down 7 points, Nasdaq is up 2.5, the S&P 500 is higher by just a couple of points as well.

Let's talk health now and what you're eating for breakfast. If you're reaching for that bowl of cereal this morning, do you know what you're getting? Check out the box. You'll see a lot of claims about the various health benefits of different cereals. But what's real and what's hype?

Our registered dietitian, Lisa Drayer, has some answers for you this morning.

Well, you're right. A lot of cereals make, like, incredible claims, like they can prevent heart attacks and such.

LISA DRAYER, REGISTERED DIETITIAN: Exactly, Carol. It's amazing when you walk down the cereal aisle these days you might think you've hit the fountain of youth looking at all of these different claims. But not all of the health claims on cereal boxes are created equal, and it can be difficult to distinguish between the different types of claims.

Let's take a look at some examples now. I have some with me. For example, this is Honey Nut Cheerios. It says Honey Nut Cheerios can help lower cholesterol and reduce the risk of heart disease as part of a low-fat diet with the soluble fiber in Honey Nut Cheerios.

COSTELLO: Wow!

DRAYER: There's a mouthful there. But this is an example of an actual health claim. That's because it relates to reducing the risk of a disease. So these disease-related claims must meet FDA approval before they can appear on these boxes. They're based on a rigorous scientific review of the evidence relating to the claim, and they must be based on specific nutrient criteria. In this case, the cereal must have a minimum amount of oat fiber, and it must also be low in fat and cholesterol in order to bear the claim.

Now, another type of claim that we see on Smart Start cereal, it says antioxidants to help support a healthy immune system. This is known as a structure function claim. It can be thought of as well- being claim. It doesn't specifically relate to reducing the risk of a disease. It doesn't require approval by the FDA, and it's based on the manufacturer's interpretation of the scientific evidence relating to the claim. So a little more vague here.

And structure function claims often use terms like "support," "maintains" or "builds," like "calcium builds healthy bones."

And then we see multiple claims, like, for example, on Kashi Heart to Heart cereal, a combination of health claims and structure function. For example, reducing cholesterol is a health claim. It points to reducing the risk of heart disease by lowering cholesterol levels. Support healthy arteries. That's a structure function claim. And manage hypertension. It can make that claim because the cereal has less than 140 milligrams of sodium per serving.

COSTELLO: So this is very complicated. So tell us how to decode it to find out which cereals are actually good for us and do what they claim.

DRAYER: Right. Well, your best bet, Carol, in order to determine the nutritional content of the cereal is to simply read the label and to see what you're getting by looking at the actual nutrients. So looking at the label, you can see specific quantities. You can also see percent daily values.

I have another example with me here. This is Post Blueberry Morning cereal. It says it's cholesterol-free and high in folic acid. But you might think, well, what does "high" mean? If you look at the label you'll see that it has 25 percent of the daily value for folic acid. So you're getting a quarter of what you would need for this important B vitamin in one serving of this cereal. So look at that label.

COSTELLO: I wish we had so much more time. We're going to have to get you back to talk about more specifics as it applies to cereal, because this is fascinating. It really is.

DRAYER: Yes, and it's everywhere.

COSTELLO: Lisa Drayer reporting live from New York for us this morning, thank you.

Your news, money, weather and sports. It's 6:44 Eastern. Here's what's all new this morning.

The kidnappings have hit home for Iraq's interim prime minister. An aide says three members of Ayad Allawi's extended family were taken at gunpoint from their Baghdad home on Tuesday. The kidnappers have made no demands yet.

Don't drink the water. That travel advice extends to when you are in flight. The EPA has found harmful bacteria in the water of one out of every eight planes tested. The government plans more frequent airline water inspections.

In money news, interest rates are rising again. The Federal Reserve is expected to hike the rates today for the fourth time this year. And analysts say it probably won't stop there due to the recent strong economic data.

In culture, happy birthday to Big Bird and the bunch. "Sesame Street" debuted on PBS 35 years ago today. In the past 35 years, there have been more than 4,000 episodes. "Sesame Street" has been seen in 120 countries.

In sports, Shaquille O'Neal is living up to the hype in Miami. With his help, the Heat is off to their best start in franchise history. Shaq had 20 points in their victory over the Washington Wizards, which puts their record at 4-0. But, of course, they were playing the Washington Wizards.

CHAD MYERS, CNN METEOROLOGIST: True. But maybe the Dolphins and the Heat have kind of reverse osmosis thing going on there.

COSTELLO: Maybe so.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

Now let's head live to New York to check in with Bill and Soledad to see what's coming on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hey, Carol. Good morning.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol. Good morning to you. HEMMER: Among our headlines this morning on our show today, U.S. forces are again battling insurgents. We'll talk to what's happening on the ground in Falluja, get updates from Iraq as well, Iraqi prime minister's family. Marine Colonel Thomas Hemmis (ph) says no doubt about winning Falluja. The real question is can the insurgents be beaten? We'll talk to him and get his thoughts today as well.

O'BRIEN: Also this morning as you well know, more disruption in that Peterson jury. So what kind of a person is that dismissed juror? And does the alternative now change the jury's makeup? This morning, we talk with former juror Justin Falconer. He knows them both. Also we'll check in with Jeff Toobin. Dean Johnson, a former prosecutor, will update us on what he knows about this.

HEMMER: We've got it surrounded, don't we, that story?

O'BRIEN: From all angles today.

HEMMER: Yes. Also, last August, two passenger jets nearly collided in L.A., one getting ready to land and one getting ready to take off. We'll talk to the chairwoman of the NTSB today. Technology now being used to try and prevent this kind of disaster, very high on her wish list among a few other things, too, so we'll get that.

O'BRIEN: All that and much more this morning, Carol. We'll see you in just a little bit.

COSTELLO: All right, thank you both.

HEMMER: Bye-bye.

COSTELLO: Still to come on DAYBREAK, the big winners from country music's biggest night.

(COMMERCIAL BREAK)

COSTELLO: Brooks & Dunn. Thank you, Chad. The king of country music, Chad Myers.

Last night's Country Music Awards definitely gave Kenny Chesney and Tim McGraw plenty to sing about. Others went home with "Achy, Breaky Hearts." Did you like that?

MYERS: Yes, very good.

COSTELLO: Thank you. We decided to take it up with Tom O'Neil from "In-Touch Weekly" magazine and let him sort it out. He joins us live from New York.

Good morning.

TOM O'NEIL, EDITOR, "IN-TOUCH WEEKLY": Good morning, Carol.

COSTELLO: So it was a big night for Kenny Chesney.

O'NEIL: Yes, he took home both entertainer of the year and album of the year. And what's remarkable about this is Alan Jackson didn't win anything. He had seven nominations and usually dominates these top categories. What we saw last night was the changing of the old guard and new talent like Kenny, who is actually not so new. He's been out there in the trenches for the past 12 years.

COSTELLO: Wow! Toby Keith didn't win anything either.

O'NEIL: I know! He had six nominations and came up with nothing. This night belonged to the young lions. Check out this guy. This is the new face of country. This is Keith Urban. He is the -- he's from Australia. So he's not from...

COSTELLO: That's weird.

O'NEIL: Isn't that amazing? But he was performing country music in Australia since he was 8 years old. And last night, he didn't behave like one of those good, old country boys, Carol. He cried at the podium when he won! And he rocked the place. He gave the performance of the night.

COSTELLO: He is one handsome man.

O'NEIL: He's a heck of a musician.

COSTELLO: Chad...

MYERS: I have his CD if you want to borrow it.

COSTELLO: Really?

MYERS: Yes.

COSTELLO: I would like to borrow that just to listen to him.

O'NEIL: He was so good last night that when he was done performing "Days Go By," Kix Brooks even turned around and went, "Wow!"

COSTELLO: That's awesome. You know, you talk about the old guard being replaced by the new, but Martina McBride won, and she's certainly a member of the old guard.

O'NEIL: Yes, she is. This was the fourth win for her as female vocalist of the year. She ties Reba McEntire. But this is -- you know, she's an evergreen talent. She is terrific and comes back every year with great music.

COSTELLO: She certainly does. And, of course, always a favorite, Shania Twain performed, and she also was sort of the mistress of ceremonies.

O'NEIL: Well, she kept coming back. The actual hosts were Brooks & Dunn.

COSTELLO: Oh, and then she would pop in, in different outfits.

O'NEIL: Yes. There she is. She is one sexy gal who sells a lot of records. And she's pretty talented, too.

COSTELLO: Yes. And it's weird because Shania Twain isn't exactly beloved within the country music world, is she?

O'NEIL: No, she's from Canada. And, see, this is what has those Nashville boys so nervous is that people like Shania, people like Keith Urban, who aren't from the South are now dominating to some extent the new wave of country music. And that's great, because I'm a fan. I love country music, and I think that it belongs to all of us, even though I live in New York.

COSTELLO: Exactly, exactly. Let's take a look at Shania Twain's outfits, since I'm speaking about them, because she's such a beautiful woman. But I don't know who her stylist is, but she wears some wacky clothes.

O'NEIL: You critique this one for us, Carol. What do you think?

COSTELLO: Well, I kind of like the skirt, but I don't understand what she has on her arms.

MYERS: I think those are gloves.

COSTELLO: They have no fingers.

MYERS: Oh.

COSTELLO: And they sort of...

MYERS: Well, they're hunting gloves.

COSTELLO: Oh, really?

MYERS: No.

COSTELLO: The new hunting gloves.

O'NEIL: That's a good theory, Chad.

COSTELLO: Tom O'Neil, it's always fun.

O'NEIL: Same here.

COSTELLO: Thanks for joining us this morning.

We'll be right back. This is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Before we go, we have some explaining to do.

MYERS: This will be the last time you have to sit on that ugly chair or be on this ugly set.

COSTELLO: Oh, that's terrible. MYERS: Carol is getting to move to New York. You got married a couple of months ago. I was there. And her husband lives in the New York City metro area. So CNN is nice enough to move you up there so you can be with your husband.

COSTELLO: Isn't that great? I have the best bosses on the planet, I think. But it won't make much difference to you, because I'll still be doing DAYBREAK.

MYERS: Exactly.

COSTELLO: We're still going to be on at 5:00 a.m. to 7:00 a.m. Eastern Time. Chad will still be part of the program. The only difference you will see is we'll have a different set, and I'll be sitting on a different set in a different city. It will be New York City.

MYERS: And it is New York City. And speaking of that, we went to all of the producers yesterday and we said, what does Carol need to move to New York City? What's the biggest -- what are some of the best things she needs? What are some of the biggest things she needs? And we came up with a top 10 list.

Now the top 10 list. Carol, survival guide for New York City. Get a good map.

COSTELLO: Oh, yes.

MYERS: And for you, Carol, a compass.

COSTELLO: Yes, I'm terrible with directions.

MYERS: Because you can't even figure out which way south is when the sun is out.

COSTELLO: Exactly.

MYERS: A winter coat.

COSTELLO: Oh, yes.

MYERS: Ditch the car.

COSTELLO: I know. I can't drive my beautiful car anymore. That really cuts me.

MYERS: You need to buy the subway tokens. Don't bad-mouth the Yankees. Only George Steinbrenner can do that.

COSTELLO: I'm sorry. I can't get away from that, because, you know, I'm sorry. I hate the Yankees.

MYERS: No. 5, read page 6 of the "New York Post."

COSTELLO: I do that already.

MYERS: Yes, ah-ha. Bring your own grits, because they don't have them up there. Move at the pace of Manhattan.

COSTELLO: That's right. I'm used to the southern mentality, a relaxed atmosphere.

MYERS: That's right. You need to start talking faster and learn to text message. Move quicker is No. 9. And No. 10, the top 10 reason, take advantage of the world's greatest city and take advantage of your husband.

COSTELLO: Oh!

MYERS: No, no, take advantage of being with your husband, of course.

COSTELLO: No, I like that part.

MYERS: And we did get a little bit of a gift basket, Carol -- please bring this in -- for things that you're going to miss from Georgia. One, grits. Two, peach wine. You just can't get peach wine in the (UNINTELLIGIBLE). Of course, Jimmy Carter's peanuts. And to go with those peanuts a little Peach Tree beer. I got you some Williams and Brothers hot sauce, the best hot sauce in town. Some little peach chetney (ph), because they don't have peaches up there. You know that? A Zogat's (ph) book.

COSTELLO: Oh, that's great.

MYERS: There you go. And so then we can eat later on today. Got you a chocolate pecan pie.

COSTELLO: My gosh!

MYERS: And a peach pie.

COSTELLO: This is incredible.

MYERS: So you can get all of this in your suitcase, and you can get all of this in your stomach.

COSTELLO: Thank you so much.

MYERS: So there you go.

COSTELLO: And I will miss Atlanta. Atlanta is a wonderful city.

MYERS: And you will.

COSTELLO: And the only reason I'm going up there is my husband's up there, and it's a pretty nice city, New York.

MYERS: It's nice to be in the same city that your spouse is in.

COSTELLO: Yes, it's probably better for the marriage. "AMERICAN MORNING" starts right now.

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