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CNN Live At Daybreak

Arafat Funeral Friday; Arafat, Familiar Face at United Nations; Battle For Falluja

Aired November 11, 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.


FREDRICKA WHITFIELD, CNN ANCHOR: Good morning. From the CNN global headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.
Topping our news, about an hour ago, Palestinian Parliament speaker Rawhi Fattuh was sworn in as Yasser Arafat's temporary replacement as president. Fattuh will serve as interim president until elections are held within 60 days. Former Palestinian Prime Minister Mahmoud Abbas takes Arafat's title as head of the Palestinian Liberation Organization.

Thousands of Palestinian mourners have poured into the streets in the West Bank and Gaza. In Ramallah, workers are preparing a gravesite that will become a shrine to Arafat.

Israel fears Arafat's death could spark days of demonstrations by Palestinians. Israeli forces have sealed off the West Bank and Gaza and stepped up security around Jewish settlements.

Funeral services will be tomorrow in Cairo for Yasser Arafat. Then, his body will be flown to Ramallah in the West Bank for burial.

CNN's Michael Holmes is in Ramallah, where preparations are under way -- Michael.

MICHAEL HOLMES, CNN CORRESPONDENT: And they continue, too, Fredricka. In the last few seconds, in fact, a truck has pulled in behind me into the compound carrying what appears to be large lumps of either marble or granite, probably part of the monument which is being hastily prepared for Yasser Arafat's burial, which will take place in about a little over 24 hours from now here in Ramallah after that ceremony in Cairo, which is being variously described as a state funeral or lying in state.

Now, what we have seen here today is a large number of meetings and appointments as you would imagine. Let's start with a very important one, the new Palestinian prime minister. It is -- or president, rather. It is an interim president. His name is Rawhi Fattuh. He is the speaker of the Legislative Assembly, and as per the Palestinian constitution, has taken over in a temporary role for the next 60 days. That's when the constitution says elections for a new president should be held.

You can probably say the frontrunner for that election is a man called Mahmoud Abbas. Now, Mahmoud Abbas is a former prime minister, and he today was elected unanimously as the new head of the PLO. Now, this is the real power center in Palestinian politics. And, of course, it was headed up by Yasser Arafat. Now, Mahmoud Abbas, also known as Abu Mazen, has been appointed as head of that body.

Another important body is Fatah. That is the political party set up by Yasser Arafat. It has the real sway in Palestinian politics. And the new head of Fatah is named Farouk Kaddoumi (ph). He is a hardliner, an Arafat supporter and loyalist. However, there's a bit of a condition placed on his appointment. He hasn't been here for 10 years. He's in Syria or Tunis at the moment, and he's going to have to come back here to take up that appointment -- Fredricka.

WHITFIELD: All right, Michael Holmes, thanks very much for that update from Ramallah.

Well, U.N. Secretary-General Kofi Annan said today Yasser Arafat was instantly recognize by people around the world, and it was at the U.N. 30 years ago that Arafat made a dramatic entrance and became a household name.

Richard Roth is our senior U.N. correspondent, and he reflects on that for us.

Good morning to you -- Richard.

RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: Good morning, Fredricka.

Yes, it's almost 30 years to the day that Arafat came here to the U.N. General Assembly. It really launched him onto the international scene and legitimacy here in the international arena. As of late, though, U.N. officials said that Arafat and the Palestinian leadership was not doing enough to crack down on terrorism. The U.N. also blaming Israel for its actions.

Secretary-General Kofi Annan, as you mentioned, said that he was deeply moved by the death of Arafat. In a printed statement overnight, the U.N. secretary-general said that: "President Arafat will always be remembered for in 1988 having led the Palestinians to accept the principle of coexistence between Israel and a future Palestinian state. By signing the Oslo Accords in 1993, he took a giant step towards the realization of this vision. It is tragic that he did not live to see it fulfilled."

A few days ago, Annan talked about Arafat.

(BEGIN VIDEO CLIP)

KOFI ANNAN, UNITED NATIONS SECRETARY-GENERAL: I think that as chairman, Arafat embodied in his person the Palestinian aspirations for statehood. And he's been leader of his people all these years, and obviously it's going to leave a gap among the Palestinians.

(END VIDEO CLIP)

ROTH: Also a few days ago, several Security Council ambassadors reflected on Arafat's legacy. (BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: He has been able to unify the Palestinian people and the Palestinian resistance. So I believe Chairman Arafat is a symbol of unity and a symbol of the struggle of the Palestinian people.

UNIDENTIFIED MALE: Nobody can ignore how much he fought, that he has fought for Palestinian rights to have a state that is independent and represents the Palestinian people. So I think he's made a major contribution, even though some may not agree. Independence always is a process that involves sometimes questionable methods.

(END VIDEO CLIP)

ROTH: Secretary-General Annan just a day ago said he hopes that no matter what happens, the peace process can be re-energized in the Middle East -- Fredricka.

WHITFIELD: All right, Richard Roth. Thanks so much, Richard.

Well, the cause of the Palestinian people now rests in the hands of a new leader.

Ron Brownstein of the "Los Angeles Times" joins me with a look at what's next in Palestinian politics.

And making plans to spend time with your family during the holidays? We'll tell you about some of the best travel deals out there.

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

(COMMERCIAL BREAK)

WHITFIELD: We want to take you straight to Paris now outside of Percy Hospital, where French President Jacques Chirac is now speaking upon the arrival at that hospital's, talking specifically about the death of Yasser Arafat.

Jacques Chirac will apparently be helping to accompany the body of Yasser Arafat once it leaves that hospital and makes its way to a Paris military hospital, where military -- airport, rather, where a ceremony will be taking place before the body is then flown to Cairo, where a state funeral will be taking place on Friday Cairo time.

Well, many people are talking about what Yasser Arafat's death might mean to the Israel-Palestinian peace process and what Washington's role might be.

Let's see what CNN political analyst Ron Brownstein is thinking about. He joins us from Washington.

Good to see you -- Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning, Fredricka.

WHITFIELD: All right. Well, British Prime Minister Tony Blair, who is heading to Washington today, apparently had on the front burner the plan to talk to President Bush about putting some pressure on President Bush to make sure that the Middle East peace policy was at the forefront. Now, upon the death of Yasser Arafat, it's quite obvious that this is something they're going to be talking about, trying to broker better peace deals between the Palestinians and the Israelis.

How much pressure do you think by osmosis will be on the White House to try to proceed?

BROWNSTEIN: Well, I think events are, in fact, events and Tony Blair and most of the European allies, are all coalescing to put pressure on the president.

Look, the central argument of the administration for the past two years has been that Arafat was not a reliable partner in a negotiation for peace; that the Palestinians had to move past him to find new leadership. Now that will be occurring. And, in effect, the central obstacle they have said was there to sustain engagement in the peace process, in effect, is now eliminated.

So I think it does, in effect, call the bluff and raise the question of how aggressively they will get involved in this.

WHITFIELD: In the past, President Bush has refused to meet with Arafat. Now that there is this collective leadership involving Mahmoud Abbas, Qorei, as well as Fattuh, do you see the president, perhaps within the next 60 days before there is an official election there in the Palestinian area, a meeting between these leaders?

BROWNSTEIN: That's a fascinating question. I mean, I think obviously the interest of the administration is to have the more moderate faction symbolized by the former prime minister, Abbas, emerge as the leadership of the post-Arafat Palestinian infrastructure.

But they have to be very careful in how they play this. Certainly anyone who is seen as the American candidate, that would not be a benefit in this internal process. So I think they're going to have to be very careful about how they move forward. And I suspect they will be very circumspect in indicating their preference.

WHITFIELD: And the Palestinian people, no doubt, will likely really be watching, too, how the U.S. responds following the death of Yasser Arafat. We know that no high-level, high-ranking member of the U.S. government will be in attendance at this state funeral. How significant do you believe that is?

BROWNSTEIN: Well, that's a statement. Look, no one, as President Bush has said many times in the campaign, you may agree or disagree with me, but you know where I stand. And they are once again making a statement about their view about Arafat. Now, you know, for many Americans, they will think of Arafat as the leader who walked away from the agreements that were negotiated or attempted to be negotiated under President Clinton twice, and who see him as the father of a great deal of the terror that Israel has faced over the last few years. So the perception here is probably very different than it is in Europe.

The issue is obviously at this point going forward, Tony Blair, as you mentioned, coming here with a very strong imperative to push President Bush toward greater involvements. Blair has his own election next year. He wants to show progress on this front to sand down some of the hard feelings over Iraq.

And, again, with the death of Arafat creating this opening, I think there will be a lot of pressure on the administration to move more aggressively.

WHITFIELD: All right, Ron Brownstein, thanks so much.

I mentioned no high-ranking U.S. official would be in attendance at the state funeral, but it will be the assistant secretary of state, William Burns, as well as a U.S. consul in Israel, who will be in attendance -- at least that's the schedule so far in Cairo.

Thanks so much, Ron.

Your news, money, weather and sports. It is now 45 minutes after the hour. And here's what's all new this morning.

At least 12 people were killed today in a suicide car bombing in a commercial district of Baghdad. The blast set cars afire and sent a cloud of thick, black smoke billowing over the stores on a busy street in that capital.

In money, oil prices hover around $49 a barrel worldwide after a report in the U.S. showed a growing deficit in heating fuel. That's coupled with a forecast of an early cold snap.

In culture, Citadel Communication stations in Iowa and Nebraska will not air "Saving Private Ryan," the ABC movie, this Veteran's Day. Citadel says the FCC bans profanity on TV before 10:00 p.m.

In sports, Steve Spurrier says if he gets back to coaching football, it won't be pro football. So sorry, Miami Dolphins. Spurrier has told sports writers he has no interest in an NFL job.

(WEATHER REPORT)

WHITFIELD: Well, time now for an update on how global markets are reacting to the news of Yasser Arafat's death.

Carrie Lee reports, and she's at the Nasdaq Marketsite in Times Square.

Hello -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Fredricka.

Well, U.S. stock futures and global markets are all moving higher. It's hard to say, though, if this is all because of Yasser Arafat's death. But clearly, this event is giving some investors hope that we may see Middle East peace, or at least get closer to it.

Reuters quoting Israeli Prime Minister Ariel Sharon, saying that recent events present a historic turning point in the Middle East. He also said that Israel will seek to reach a political settlement with the Palestinians without delay.

Now, there is some fear, though, among analysts that Palestinian militants may use Arafat's death as a reason to launch attacks. Oil, though, is still staying around $49 a barrel. So we're not seeing a big increase there -- Fredricka.

WHITFIELD: All right, thanks a lot, Carrie.

And we'll be right back with more of DAYBREAK.

(COMMERCIAL BREAK)

WHITFIELD: Well, new information just in to CNN about what military officials are calling hostage slaughterhouses found in Falluja.

Our Jane Arraf is embedded with a U.S. Army unit near Falluja, and she joins us with that on the telephone -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Fredricka, we've just spoken to the commanding general of the 1st Marine Division, Major General Richard Natinski (ph). And he tells us he has just come from what they are treating as a crime scene, a nondescript building that may have been actually a slaughterhouse for hostages.

Now, this was first raised, this possibility, by Iraqi officials, but this is the first high-level U.S. military confirmation, providing details of what was actually found. The general tells us that in that house on the deck and on the floor were bloodstains that they are now testing to see if they match any of the known hostages killed.

They have also found a banner with crossed swords and writing on it that may have appeared in one of the videos of hostages being beheaded. Throughout the house, he says, they have found CDs, recordings, documents, video that appears to have been taken inside the same room.

Now, this was, again, a nondescript house in the northwest of Falluja in a neighborhood called (AUDIO GAP), an insurgent stronghold. They are investigating, again, whether indeed hostages were killed there, but they say they have evidence that indicates that may be a possibility.

And just a little bit more, Fredricka. He says that as Marines approached the house, everyone fled. But inside, they found a shackled prisoner, an Iraqi, apparently an informant, who had been shackled and beaten -- Fredricka.

WHITFIELD: And, Jane, among the items that they located at this so-called slaughterhouse, also clothes apparently worn by those hostage-takers, correct?

ARRAF: It's not known whether they were the hostage-takers, but certainly that might be circumstance evidence that clothing similar to that seen in videos was apparently found in that house. He says it was vacated in a hurry. Essentially they found food, even ice melting, indicating people had left just seconds before.

Now, as we're talking, Fredricka, the battle is continuing. I don't know if you can hear behind me, but there's quite heavy gunfire. The Marines and the Army units that we're with are continuing to sweep through the city to seize control of parts of it. But they have not yet full control over it, and are continuing to kill and capture insurgents -- Fredricka.

WHITFIELD: All right, Jane Arraf, be safe. Thanks so much for joining us on the phone there. And she is embedded with a U.S. Army unit.

And we'll be right back with more of DAYBREAK.

(COMMERCIAL BREAK)

WHITFIELD: Well, take a look at the calendar and it's hard to believe it's not too early to talk about Thanksgiving. And if you're looking for a good deal and a good meal this Thanksgiving holiday, we can help you with travel plans.

Ben Mutzabaugh covers the airline industry for "USA Today," and joins us live from Washington with some great holiday travel chicks -- tips, I should say.

BEN MUTZABAUGH, USATODAY.COM AIRLINE REPORTER: Good morning. Good morning, Fredricka.

WHITFIELD: Even if you're looking for chicks in the form of turkeys, right?

MUTZABAUGH: Exactly, yes.

WHITFIELD: All right, Ben. So is it too late to try and find some deals?

MUTZABAUGH: It's not, but you're definitely going to face an uphill battle. One of the things to consider, look to see if there's a discount airline flying on the route that you want to fly for Thanksgiving. That can help get you the lowest fare. But even if there's not a discount airline, you know, you're going to have to check a major airline, and that might be your only option. And on routes where they compete with discounters, they might even match the fares.

WHITFIELD: Wow! And so how about how flexible you need to be perhaps on your departure or your return, because, you know, the day before Thanksgiving and that Sunday after are always so difficult to try and get a good deal.

MUTZABAUGH: Exactly. And that's the key. Everyone wants to go from Wednesday through Sunday, and you're going to pay if you want to do that. But most major airlines, five of the biggest six airlines, all have fare sales right now, where you can depart on the Sunday or Monday before Thanksgiving or actually on Thanksgiving itself, and if you return either on Thanksgiving Day, the Friday following Thanksgiving, or the following Wednesday -- so that gives you a couple of days extra to stay at home or wherever you're headed -- you're going to find sharply reduced fares.

I checked this morning, for example...

WHITFIELD: Yes.

MUTZABAUGH: ... from Atlanta to Seattle you'll pay $530 for a one stop, or $2131 for a nonstop from Atlanta to Seattle if you go Wednesday through Sunday. If you go Monday through Friday, it drops to 320 nonstop.

WHITFIELD: Wow! Well, most folks, you know, kind of instinctively want to go check the Internet right away. But do you think sometimes you still can get a better deal, maybe negotiate a little bit when you call that 1-800 number for an airline?

MUTZABAUGH: Well, I think the Internet is probably your best bet. But, you know, travel agents are always a good bet if you want to go that route. But I think there are two keys, and it sort of goes both ways. One is check everyday, especially online, for the dates that you want to travel. You might hit a very specific fare sale that's only online or in the airline system for maybe a few hours. So check every day.

WHITFIELD: Again, sometimes you're going to have to connect in order to get the best deals, too.

MUTZABAUGH: Yes. And don't be sold that nonstop flight. It just might not happen.

WHITFIELD: All right, Ben Mutzabaugh with "USA Today." Thanks so much.

MUTZABAUGH: Thank you.

WHITFIELD: And happy travels.

From the CNN global headquarters in Atlanta, I'm Fredricka Whitfield. "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 11, 2004 - 06:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Good morning. From the CNN global headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello this morning.
Topping our news, about an hour ago, Palestinian Parliament speaker Rawhi Fattuh was sworn in as Yasser Arafat's temporary replacement as president. Fattuh will serve as interim president until elections are held within 60 days. Former Palestinian Prime Minister Mahmoud Abbas takes Arafat's title as head of the Palestinian Liberation Organization.

Thousands of Palestinian mourners have poured into the streets in the West Bank and Gaza. In Ramallah, workers are preparing a gravesite that will become a shrine to Arafat.

Israel fears Arafat's death could spark days of demonstrations by Palestinians. Israeli forces have sealed off the West Bank and Gaza and stepped up security around Jewish settlements.

Funeral services will be tomorrow in Cairo for Yasser Arafat. Then, his body will be flown to Ramallah in the West Bank for burial.

CNN's Michael Holmes is in Ramallah, where preparations are under way -- Michael.

MICHAEL HOLMES, CNN CORRESPONDENT: And they continue, too, Fredricka. In the last few seconds, in fact, a truck has pulled in behind me into the compound carrying what appears to be large lumps of either marble or granite, probably part of the monument which is being hastily prepared for Yasser Arafat's burial, which will take place in about a little over 24 hours from now here in Ramallah after that ceremony in Cairo, which is being variously described as a state funeral or lying in state.

Now, what we have seen here today is a large number of meetings and appointments as you would imagine. Let's start with a very important one, the new Palestinian prime minister. It is -- or president, rather. It is an interim president. His name is Rawhi Fattuh. He is the speaker of the Legislative Assembly, and as per the Palestinian constitution, has taken over in a temporary role for the next 60 days. That's when the constitution says elections for a new president should be held.

You can probably say the frontrunner for that election is a man called Mahmoud Abbas. Now, Mahmoud Abbas is a former prime minister, and he today was elected unanimously as the new head of the PLO. Now, this is the real power center in Palestinian politics. And, of course, it was headed up by Yasser Arafat. Now, Mahmoud Abbas, also known as Abu Mazen, has been appointed as head of that body.

Another important body is Fatah. That is the political party set up by Yasser Arafat. It has the real sway in Palestinian politics. And the new head of Fatah is named Farouk Kaddoumi (ph). He is a hardliner, an Arafat supporter and loyalist. However, there's a bit of a condition placed on his appointment. He hasn't been here for 10 years. He's in Syria or Tunis at the moment, and he's going to have to come back here to take up that appointment -- Fredricka.

WHITFIELD: All right, Michael Holmes, thanks very much for that update from Ramallah.

Well, U.N. Secretary-General Kofi Annan said today Yasser Arafat was instantly recognize by people around the world, and it was at the U.N. 30 years ago that Arafat made a dramatic entrance and became a household name.

Richard Roth is our senior U.N. correspondent, and he reflects on that for us.

Good morning to you -- Richard.

RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: Good morning, Fredricka.

Yes, it's almost 30 years to the day that Arafat came here to the U.N. General Assembly. It really launched him onto the international scene and legitimacy here in the international arena. As of late, though, U.N. officials said that Arafat and the Palestinian leadership was not doing enough to crack down on terrorism. The U.N. also blaming Israel for its actions.

Secretary-General Kofi Annan, as you mentioned, said that he was deeply moved by the death of Arafat. In a printed statement overnight, the U.N. secretary-general said that: "President Arafat will always be remembered for in 1988 having led the Palestinians to accept the principle of coexistence between Israel and a future Palestinian state. By signing the Oslo Accords in 1993, he took a giant step towards the realization of this vision. It is tragic that he did not live to see it fulfilled."

A few days ago, Annan talked about Arafat.

(BEGIN VIDEO CLIP)

KOFI ANNAN, UNITED NATIONS SECRETARY-GENERAL: I think that as chairman, Arafat embodied in his person the Palestinian aspirations for statehood. And he's been leader of his people all these years, and obviously it's going to leave a gap among the Palestinians.

(END VIDEO CLIP)

ROTH: Also a few days ago, several Security Council ambassadors reflected on Arafat's legacy. (BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: He has been able to unify the Palestinian people and the Palestinian resistance. So I believe Chairman Arafat is a symbol of unity and a symbol of the struggle of the Palestinian people.

UNIDENTIFIED MALE: Nobody can ignore how much he fought, that he has fought for Palestinian rights to have a state that is independent and represents the Palestinian people. So I think he's made a major contribution, even though some may not agree. Independence always is a process that involves sometimes questionable methods.

(END VIDEO CLIP)

ROTH: Secretary-General Annan just a day ago said he hopes that no matter what happens, the peace process can be re-energized in the Middle East -- Fredricka.

WHITFIELD: All right, Richard Roth. Thanks so much, Richard.

Well, the cause of the Palestinian people now rests in the hands of a new leader.

Ron Brownstein of the "Los Angeles Times" joins me with a look at what's next in Palestinian politics.

And making plans to spend time with your family during the holidays? We'll tell you about some of the best travel deals out there.

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

(COMMERCIAL BREAK)

WHITFIELD: We want to take you straight to Paris now outside of Percy Hospital, where French President Jacques Chirac is now speaking upon the arrival at that hospital's, talking specifically about the death of Yasser Arafat.

Jacques Chirac will apparently be helping to accompany the body of Yasser Arafat once it leaves that hospital and makes its way to a Paris military hospital, where military -- airport, rather, where a ceremony will be taking place before the body is then flown to Cairo, where a state funeral will be taking place on Friday Cairo time.

Well, many people are talking about what Yasser Arafat's death might mean to the Israel-Palestinian peace process and what Washington's role might be.

Let's see what CNN political analyst Ron Brownstein is thinking about. He joins us from Washington.

Good to see you -- Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning, Fredricka.

WHITFIELD: All right. Well, British Prime Minister Tony Blair, who is heading to Washington today, apparently had on the front burner the plan to talk to President Bush about putting some pressure on President Bush to make sure that the Middle East peace policy was at the forefront. Now, upon the death of Yasser Arafat, it's quite obvious that this is something they're going to be talking about, trying to broker better peace deals between the Palestinians and the Israelis.

How much pressure do you think by osmosis will be on the White House to try to proceed?

BROWNSTEIN: Well, I think events are, in fact, events and Tony Blair and most of the European allies, are all coalescing to put pressure on the president.

Look, the central argument of the administration for the past two years has been that Arafat was not a reliable partner in a negotiation for peace; that the Palestinians had to move past him to find new leadership. Now that will be occurring. And, in effect, the central obstacle they have said was there to sustain engagement in the peace process, in effect, is now eliminated.

So I think it does, in effect, call the bluff and raise the question of how aggressively they will get involved in this.

WHITFIELD: In the past, President Bush has refused to meet with Arafat. Now that there is this collective leadership involving Mahmoud Abbas, Qorei, as well as Fattuh, do you see the president, perhaps within the next 60 days before there is an official election there in the Palestinian area, a meeting between these leaders?

BROWNSTEIN: That's a fascinating question. I mean, I think obviously the interest of the administration is to have the more moderate faction symbolized by the former prime minister, Abbas, emerge as the leadership of the post-Arafat Palestinian infrastructure.

But they have to be very careful in how they play this. Certainly anyone who is seen as the American candidate, that would not be a benefit in this internal process. So I think they're going to have to be very careful about how they move forward. And I suspect they will be very circumspect in indicating their preference.

WHITFIELD: And the Palestinian people, no doubt, will likely really be watching, too, how the U.S. responds following the death of Yasser Arafat. We know that no high-level, high-ranking member of the U.S. government will be in attendance at this state funeral. How significant do you believe that is?

BROWNSTEIN: Well, that's a statement. Look, no one, as President Bush has said many times in the campaign, you may agree or disagree with me, but you know where I stand. And they are once again making a statement about their view about Arafat. Now, you know, for many Americans, they will think of Arafat as the leader who walked away from the agreements that were negotiated or attempted to be negotiated under President Clinton twice, and who see him as the father of a great deal of the terror that Israel has faced over the last few years. So the perception here is probably very different than it is in Europe.

The issue is obviously at this point going forward, Tony Blair, as you mentioned, coming here with a very strong imperative to push President Bush toward greater involvements. Blair has his own election next year. He wants to show progress on this front to sand down some of the hard feelings over Iraq.

And, again, with the death of Arafat creating this opening, I think there will be a lot of pressure on the administration to move more aggressively.

WHITFIELD: All right, Ron Brownstein, thanks so much.

I mentioned no high-ranking U.S. official would be in attendance at the state funeral, but it will be the assistant secretary of state, William Burns, as well as a U.S. consul in Israel, who will be in attendance -- at least that's the schedule so far in Cairo.

Thanks so much, Ron.

Your news, money, weather and sports. It is now 45 minutes after the hour. And here's what's all new this morning.

At least 12 people were killed today in a suicide car bombing in a commercial district of Baghdad. The blast set cars afire and sent a cloud of thick, black smoke billowing over the stores on a busy street in that capital.

In money, oil prices hover around $49 a barrel worldwide after a report in the U.S. showed a growing deficit in heating fuel. That's coupled with a forecast of an early cold snap.

In culture, Citadel Communication stations in Iowa and Nebraska will not air "Saving Private Ryan," the ABC movie, this Veteran's Day. Citadel says the FCC bans profanity on TV before 10:00 p.m.

In sports, Steve Spurrier says if he gets back to coaching football, it won't be pro football. So sorry, Miami Dolphins. Spurrier has told sports writers he has no interest in an NFL job.

(WEATHER REPORT)

WHITFIELD: Well, time now for an update on how global markets are reacting to the news of Yasser Arafat's death.

Carrie Lee reports, and she's at the Nasdaq Marketsite in Times Square.

Hello -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Fredricka.

Well, U.S. stock futures and global markets are all moving higher. It's hard to say, though, if this is all because of Yasser Arafat's death. But clearly, this event is giving some investors hope that we may see Middle East peace, or at least get closer to it.

Reuters quoting Israeli Prime Minister Ariel Sharon, saying that recent events present a historic turning point in the Middle East. He also said that Israel will seek to reach a political settlement with the Palestinians without delay.

Now, there is some fear, though, among analysts that Palestinian militants may use Arafat's death as a reason to launch attacks. Oil, though, is still staying around $49 a barrel. So we're not seeing a big increase there -- Fredricka.

WHITFIELD: All right, thanks a lot, Carrie.

And we'll be right back with more of DAYBREAK.

(COMMERCIAL BREAK)

WHITFIELD: Well, new information just in to CNN about what military officials are calling hostage slaughterhouses found in Falluja.

Our Jane Arraf is embedded with a U.S. Army unit near Falluja, and she joins us with that on the telephone -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Fredricka, we've just spoken to the commanding general of the 1st Marine Division, Major General Richard Natinski (ph). And he tells us he has just come from what they are treating as a crime scene, a nondescript building that may have been actually a slaughterhouse for hostages.

Now, this was first raised, this possibility, by Iraqi officials, but this is the first high-level U.S. military confirmation, providing details of what was actually found. The general tells us that in that house on the deck and on the floor were bloodstains that they are now testing to see if they match any of the known hostages killed.

They have also found a banner with crossed swords and writing on it that may have appeared in one of the videos of hostages being beheaded. Throughout the house, he says, they have found CDs, recordings, documents, video that appears to have been taken inside the same room.

Now, this was, again, a nondescript house in the northwest of Falluja in a neighborhood called (AUDIO GAP), an insurgent stronghold. They are investigating, again, whether indeed hostages were killed there, but they say they have evidence that indicates that may be a possibility.

And just a little bit more, Fredricka. He says that as Marines approached the house, everyone fled. But inside, they found a shackled prisoner, an Iraqi, apparently an informant, who had been shackled and beaten -- Fredricka.

WHITFIELD: And, Jane, among the items that they located at this so-called slaughterhouse, also clothes apparently worn by those hostage-takers, correct?

ARRAF: It's not known whether they were the hostage-takers, but certainly that might be circumstance evidence that clothing similar to that seen in videos was apparently found in that house. He says it was vacated in a hurry. Essentially they found food, even ice melting, indicating people had left just seconds before.

Now, as we're talking, Fredricka, the battle is continuing. I don't know if you can hear behind me, but there's quite heavy gunfire. The Marines and the Army units that we're with are continuing to sweep through the city to seize control of parts of it. But they have not yet full control over it, and are continuing to kill and capture insurgents -- Fredricka.

WHITFIELD: All right, Jane Arraf, be safe. Thanks so much for joining us on the phone there. And she is embedded with a U.S. Army unit.

And we'll be right back with more of DAYBREAK.

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WHITFIELD: Well, take a look at the calendar and it's hard to believe it's not too early to talk about Thanksgiving. And if you're looking for a good deal and a good meal this Thanksgiving holiday, we can help you with travel plans.

Ben Mutzabaugh covers the airline industry for "USA Today," and joins us live from Washington with some great holiday travel chicks -- tips, I should say.

BEN MUTZABAUGH, USATODAY.COM AIRLINE REPORTER: Good morning. Good morning, Fredricka.

WHITFIELD: Even if you're looking for chicks in the form of turkeys, right?

MUTZABAUGH: Exactly, yes.

WHITFIELD: All right, Ben. So is it too late to try and find some deals?

MUTZABAUGH: It's not, but you're definitely going to face an uphill battle. One of the things to consider, look to see if there's a discount airline flying on the route that you want to fly for Thanksgiving. That can help get you the lowest fare. But even if there's not a discount airline, you know, you're going to have to check a major airline, and that might be your only option. And on routes where they compete with discounters, they might even match the fares.

WHITFIELD: Wow! And so how about how flexible you need to be perhaps on your departure or your return, because, you know, the day before Thanksgiving and that Sunday after are always so difficult to try and get a good deal.

MUTZABAUGH: Exactly. And that's the key. Everyone wants to go from Wednesday through Sunday, and you're going to pay if you want to do that. But most major airlines, five of the biggest six airlines, all have fare sales right now, where you can depart on the Sunday or Monday before Thanksgiving or actually on Thanksgiving itself, and if you return either on Thanksgiving Day, the Friday following Thanksgiving, or the following Wednesday -- so that gives you a couple of days extra to stay at home or wherever you're headed -- you're going to find sharply reduced fares.

I checked this morning, for example...

WHITFIELD: Yes.

MUTZABAUGH: ... from Atlanta to Seattle you'll pay $530 for a one stop, or $2131 for a nonstop from Atlanta to Seattle if you go Wednesday through Sunday. If you go Monday through Friday, it drops to 320 nonstop.

WHITFIELD: Wow! Well, most folks, you know, kind of instinctively want to go check the Internet right away. But do you think sometimes you still can get a better deal, maybe negotiate a little bit when you call that 1-800 number for an airline?

MUTZABAUGH: Well, I think the Internet is probably your best bet. But, you know, travel agents are always a good bet if you want to go that route. But I think there are two keys, and it sort of goes both ways. One is check everyday, especially online, for the dates that you want to travel. You might hit a very specific fare sale that's only online or in the airline system for maybe a few hours. So check every day.

WHITFIELD: Again, sometimes you're going to have to connect in order to get the best deals, too.

MUTZABAUGH: Yes. And don't be sold that nonstop flight. It just might not happen.

WHITFIELD: All right, Ben Mutzabaugh with "USA Today." Thanks so much.

MUTZABAUGH: Thank you.

WHITFIELD: And happy travels.

From the CNN global headquarters in Atlanta, I'm Fredricka Whitfield. "AMERICAN MORNING" starts right now.

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