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American Morning

The Fight for Iraq; Jeffs in Utah Court; Birth of a Prince; 9/11 Illnesses

Aired September 06, 2006 - 06:00   ET

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


MILES O'BRIEN, CNN ANCHOR: Good morning to you, Wednesday, September 6. I'm Miles O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien.

Here is a look at what's happening this morning.

M. O'BRIEN: NASA engineers scurrying this morning after scrubbing today's planned launch of the space shuttle Atlantis. One of three fuel cells that generate electricity for the orbiter not operating properly. Unclear now if the voltage spike can be fixed in time for the next launch opportunity tomorrow just after noon Eastern.

S. O'BRIEN: Violence raging on in Iraq today, two coordinated bombings at a busy intersection in Baghdad to tell you about. Six people dead. Police also found 19 bodies overnight. All bodies showing signs of torture.

President Bush is talking about terror again today. It's the last in a series of speeches. Today he's expected to propose changes to the law so that prisoners at Guantanamo Bay can be tried by military tribunals.

M. O'BRIEN: Democrats in Congress pushing a no-confidence vote on Defense Secretary Donald Rumsfeld today, hoping to pressure President Bush to fire Rumsfeld. Senate Republicans may block the measure. Rumsfeld has offered to resign before. President Bush refused to accept it.

S. O'BRIEN: And finally what Japan's been waiting for, a boy for Princess Kiko and Prince Akishino. No baby pictures or a name yet. The newborn now, though, third in line to become the emperor.

M. O'BRIEN: A wildfire threatening more homes in Montana this morning. The fire near Big Timber has already burned 26 houses and 20 other buildings. All the smoke is making it hard for firefighters to get the upper hand.

Tropical Storm Florence still way out there in the ocean, but we're watching.

Chad Myers with that.

Hello, -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, guys. It is still out there, but it is getting stronger, now 45 miles per hour. There's the flare-up of activity. In the overnight hours, it did get a whole bunch stronger, went from 35 to 40, now up to 45. And it is forecast to get a whole lot stronger than that.

There's your pressure, not too low. But look, by Sunday into Monday, this thing could be 100 to 110-mile-per-hour storm. It is forecast to make that big right-hand turn on up into the north Atlantic. But we'll make sure that that happens before we let our guard down.

Here is one of the models that we can actually show you from our guys at rightweather.com. There goes the storm. Here is the East Coast of the U.S. right there. So this storm is coming in, turning, turning, turning, turning, turning and then maybe make it up (ph). But you notice there could be another couple of storms behind that one as the computers are forecasting what could be Gordon (ph) and Haline (ph) there, either one.

Hurricane Florence will be probably a hurricane as it moves right very, very close to Bermuda and then makes that big turn on up into the Atlantic. And that's really the big story of the week. But this really is now a story of the weekend, or for that matter, even farther past than that because approach to the U.S. may not happen until what may be Monday or even Tuesday. Let's hope it just stays out in the Atlantic completely.

Your forecast coming up in 10 minutes.

Back to you.

S. O'BRIEN: All right, Chad, thanks.

There is a new CNN poll that's just been released this morning. It shows that Americans are still pessimistic about the war in Iraq. The poll was done by Opinion Research Corporation. Nearly 40 percent of people polled favor the war, 58 percent say they oppose it. In mid-August, those numbers were a little bit different, 61 percent said that they favored the war.

When asked who is winning, a quarter of those surveyed said the U.S. More than 1 in 10, though, say the insurgents. The majority, 62 percent, say neither the U.S. nor the insurgents. Asked if Iraq is part of the war on terrorism, 53 percent say, no, it's not, 45 percent say, yes, it is.

Another car bombing in Baghdad to tell you about this morning.

Let's get right to CNN's Michael Holmes. He's in the Iraqi capital this morning.

Hey, Michael, good morning.

MICHAEL HOLMES, CNN CORRESPONDENT: Hi, Soledad, interesting figures those. And I think most Iraqis would tell you that they are losing, civilians that is. The U.S. and Iraqi officials expressed their pleasure in a drop in deaths in August, although well over 1,000 Iraqis died. In the last 48 hours, numbers are way up. Sixty-five bodies have been found around Baghdad in the last 48 hours, all of them bound and some of them gagged and hooded. Most of them tortured. All of them shot in the head. Just overnight alone, 19 bodies were found.

Also today you mentioned the car bombings. In many ways bizarre, even for Baghdad's standards. It was a car bomb that was followed by a roadside bomb. Happened in northern Baghdad. Six were killed, 46 were injured, all of them civilians. What made it bizarre was the car was parked. There was no apparent target -- Soledad.

S. O'BRIEN: It is bizarre.

All right, Michael Holmes watching things for us in Baghdad this morning.

Thanks, Michael.

CNN is going to carry the president's speech this morning on global terrorism live today at 1:45 p.m. Eastern Time -- Miles.

M. O'BRIEN: "The Crocodile Hunter's" father says he lost his best mate. Steve Irwin's father, Bob, speaking today in Australia at the zoo he ran before his famous son took over. Irwin died Monday, stung by a stingray while diving on the Great Barrier Reef. The premier of Queensland offered a state funeral for the world famous Irwin, but his family declined.

Bob Irwin explains why.

(BEGIN VIDEO CLIP)

BOB IRWIN, STEVE IRWIN'S FATHER: The state funeral would be refused.

QUESTION: Can we ask why, -- Bob?

IRWIN: Because he's an ordinary guy. He's just an ordinary bloke. He -- and he wants to be remembered as an ordinary bloke.

(END VIDEO CLIP)

M. O'BRIEN: Irwin's family has not yet finalized funeral arrangements.

Polygamist cult leader Warren Jeffs slated for a court appearance from Purgatory today. That's the Purgatory Correctional Facility in Hurricane, Utah. Authorities choppered Jeffs to the jail from Las Vegas yesterday. The former 10 most wanted fugitive faces several felony charges of arranging marriages between older men in his sect and underage women.

CNN's Gary Tuchman with more.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (on camera): Warren Jeffs has returned home under lock and key. This is the Purgatory Correctional Facility in Washington County, Utah, his home county for many years. Twenty-five miles to the south of here is Hilldale, Utah and Colorado City, Arizona, where thousands of Warren Jeffs' followers live.

Later this afternoon, an initial appearance hearing in the Utah court system, his first court hearing in Utah on these sex crimes charges against children. He'll be asked who he is, confirm his identity and a bond hearing might be held. Within 10 days after that, a preliminary hearing, that's an important one, where prosecutors have to prove to the judge they have probable cause to keep Warren Jeffs in prison.

Extraordinary security when Jeffs came here yesterday. He was arrested more than a week ago in Las Vegas, flown via helicopter. The helicopter landed behind this jail facility for security. The sheriff says he had to be very careful because he was concerned about the possibility of religious extremists being here, but they were not.

We went to Colorado City and Hilldale yesterday. We talked to followers. One man told us they still love Warren Jeffs and they hope that everyone in the world ultimately realizes that he is a great man.

This is Gary Tuchman, CNN, in Hurricane, Utah.

(END VIDEOTAPE)

S. O'BRIEN: Happening in America this morning, state police are calling it the worst homicide case in Maine in the last 14 years. A 31-year-old man is in jail today. Police say he is charged with shooting and then dismembering the owner of the bed and breakfast where he was staying. He's also charged with the murders of the owner's daughter and her friend, who apparently walked in, and another man as well.

Was there a warning before that deadly Comair crash at the Lexington, Kentucky Airport last month? And so according to an Associated Press report, a control tower supervisor there wrote a memo two years ago saying that there was a staff shortage that could cost lives. Only one controller was on duty when that Comair jet took off on the wrong runway and killed 49 people.

For students in Detroit, summer just got extended. A teachers' strike canceled public school indefinitely. A judge ordered both sides to return to the bargaining table this morning, day nine of the strike. Yesterday was supposed to be the first day of classes.

In Florida, Republican Katherine Harris secured a big -- bid, rather, for her U.S. Senate. Harris easily won the nomination in Tuesday's primary, beating three relatively unknown candidates. She faces incumbent Democratic Senator Bill Nelson in the November election.

And take a look at these happy, happy, happy faces. These are 16 Fort Myers, Florida nurses who just won Saturday's $6 million Florida lottery jackpot. They are supposed to get their money later today. They filed paperwork in Tallahassee yesterday, opted for the lump sum payout of $3.4 million. After taxes that means something like 160 grad apiece. Pretty nice.

M. O'BRIEN: Not bad.

S. O'BRIEN: No, no, not bad at all. As we're doing -- sitting here doing the math.

M. O'BRIEN: Doing the math. Doing the math, would I be here, not.

S. O'BRIEN: Still to come this morning, going to take a look at the world's most anticipated baby pictures, I guess for some people, little Suri Cruise. Yes, she does exist.

M. O'BRIEN: Why is it blurred out?

S. O'BRIEN: Well because it's a hint. We're going to reveal it in the first time. It's a hint.

M. O'BRIEN: I get it, we're teasing it, yes.

S. O'BRIEN: We have a photo with her actual face.

M. O'BRIEN: Yes.

S. O'BRIEN: That's ahead this morning.

M. O'BRIEN: Everybody is like I've got to check my glasses this morning.

Also, big baby news from Japan to tell you about, a royal birth stems a blooming crisis for the Chrysanthemums.

And Katie Couric takes Cronkite's seat. How did she do? We'll take a look at her debut last night.

S. O'BRIEN: Plus, Carrie Lee has got business headlines for us.

Good morning, -- Carrie.

CARRIE LEE, CNN CORRESPONDENT: Good morning. Good morning to everyone.

A major chip giant cuts its work force by 10 percent and a big airline is closer to ending its pilots' pension plan. We'll have those stories and more coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Happening this morning, tapes showing the death of "Crocodile Hunter" Steve Irwin not likely to see the light of day. His manager wants it destroyed after police are done with it. Irwin's family says they don't want a state funeral in Australia. President Bush to push a law that would put Guantanamo detainees in front of military tribunals. We expect to hear that in a speech he'll deliver this afternoon.

And Defense Secretary Donald Rumsfeld should be getting out of the hospital today. He is recovering from rotator cuff surgery.

S. O'BRIEN: Japan is buzzing over the news this morning of an arrival of a new prince. The birth has put the succession debate on hold for now.

CNN's Atika Shubert joins us live from Tokyo with more on this very celebrated and very much watched birth.

Hey, Atika, good morning.

ATIKA SHUBERT, CNN CORRESPONDENT: Very much so.

Good evening from Tokyo, Soledad.

Yes, and certainly was a day of celebrations here. Many people in Japan had been waiting with baited breath to find out whether the royal baby would be a boy or a girl. And today's answer was a relief for many.

(BEGIN VIDEOTAPE)

SHUBERT (voice-over): It was all over the streets, all over the TV, all over Japan, it's a boy. Japan's Princess Kiko, wife of Prince Akishino, has delivered a new male heir, third in line to the throne, averting a succession crisis that has plagued the world's longest running monarchy.

Fans greeted the news with enthusiasm, hoisting fish shaped banners into the sky to signify the birth of a boy.

"I have been waiting for this news in front of my TV since 7:00 a.m. in the morning," this man says. "Congratulations. I am really happy from the bottom of my heart. Japan is now secure."

But the imperial family itself greeted the news with typical royal cool. The emperor and empress were not even in town, away on royal business. They responded to cheers of congratulations with polite smiles and a written statement hours later.

The man tapped to become Japan's next prime minister, Shinzo Abe, waxed poetic about the new addition.

"It feels refreshing, like the clear skies of autumn," he said, "despite gray clouds over Tokyo."

He has reason to sound relieved. The imperial family, bound by Japan's Shinto religious tradition, has finally secured a male heir after a string of daughters. No need for the government to wrestle with the contentious issue of changing the succession law to allow a woman to become emperor. That may bring some relief to Crown Prince Naruhito and his beleaguered wife, Princess Masako, under pressure to produce a boy of their own.

(on camera): People have been coming here just outside of the imperial palace to celebrate. And some of them say they are even hoping this new arrival will help to solve one of Japan's biggest problems, a declining birth rate. So will a royal baby help to inspire young Japanese to reproduce more? Maybe that's why the news extras are being sponsored by shops for baby products.

(voice-over): It may not solve everything, but Japanese seem to agree, the new royal baby, boy or girl, is good reason to celebrate.

(END VIDEOTAPE)

Of course, the problem of succession hasn't really gone away, it's just been delayed, passed on to the next generation -- Soledad.

S. O'BRIEN: You know, I'm curious to know is that what about the problem of the other princess' depression that we've heard a lot about? She had a girl, a lot of pressure for her to have a boy, so far hasn't been able to do it. Do you think she gets a lot of pressure off of her now, Princess Masako?

SHUBERT: Well that's what some -- that's right. What some people are saying that princess -- this might be a boon for Princess Masako because the pressure is now off her. There is now a male heir to the throne. There's no pressure for her to produce another son. However, of course, there is still a bit of pressure because there is only now one successor in that generation. Of course, to make sure, they would rather also have another son as a safety.

S. O'BRIEN: Someone has got to do the backup baby. All right, we get it.

Atika Shubert for us this morning.

Thanks, Atika.

Good congratulations to the happy, happy couple.

Other famous babies to tell you about this morning, Suri Cruise, in some ways one of the most mysterious celebrity babies of all time, never been seen in public. No photos of the kid for about four-and-a- half months after she was born. Finally there is some proof that she is real from the cover of "Vanity Fair." There's Suri and her famous parents, Tom Cruise, Katie Holmes. They're right there on the cover. Twenty-two page spread in this month's "Vanity Fair." Look at that hair on that kid.

M. O'BRIEN: Twenty-two pages.

S. O'BRIEN: Look at the hair on that kid. Forget the pages, look at the hair on that kid. She's four-and-a-half months old.

M. O'BRIEN: Twenty-two pages.

S. O'BRIEN: They have shielded her from photographers since she was born four-and-a-half months ago. But now, there she is in all her little glory on the cover of "Vanity Fair."

M. O'BRIEN: It's kind of like when you meet one of those people on the plane, they've just had a baby and they start showing the pictures, only...

S. O'BRIEN: I know. Have you seen the pictures of my kids?

M. O'BRIEN: ... it's in "Vanity Fair." Twenty-two pages, OK.

S. O'BRIEN: Here you go.

M. O'BRIEN: OK, a little more Suri than we thought we'd ever get.

S. O'BRIEN: Do you want to see the pictures of my kids?

M. O'BRIEN: Yes. Yes.

S. O'BRIEN: She's cute. Cute baby.

M. O'BRIEN: Time for a check of the forecast, Chad Meyers who is busy reading "Vanity Fair" in between weather segments.

MYERS: Right.

S. O'BRIEN: And showing people pictures of his child.

M. O'BRIEN: Yes. Yes.

MYERS: There you go. That looked like a 1-year-old, though, really.

S. O'BRIEN: It's that hair. You have a lot of hair, you look older.

M. O'BRIEN: Maybe it's a stand-in baby, you know.

S. O'BRIEN: It's not the real baby, is that the rumor you're spreading?

M. O'BRIEN: I'm starting a rumor right here, yes.

MYERS: There you go. No, we're not starting that.

Good morning.

Tropical Storm Florence forecast to become Hurricane Florence by late Saturday and maybe even into Sunday become a very, very strong, intense hurricane, maybe a Category 3.

(WEATHER REPORT)

Back to you guys.

M. O'BRIEN: All right, thank you very much, Chad, see you in a bit. Still to come on the program, the casualties of 9/11 five years later, heroes who responded to the World Trade Center hobbled by a health crisis.

And the forgotten war, in Afghanistan, the poppies are in bloom and so is the Taliban. We'll take you to the other front in the war on terror.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Carrie Lee is here, a bearer of bad news for both workers at Intel and Delta, too. Of course they already knew it. It's not your fault, -- Carrie.

LEE: Well it's not my fault,...

M. O'BRIEN: Yes. Yes.

LEE: ... but we're trying to be objective here, right, but unfortunately two not so upbeat stories.

Let's start with Intel, the chip giant now cutting 10 percent of its work force through attrition, layoffs and also the sale of some units. Now most of the job cuts are going to come from management, marketing and the IT department. And Intel expects to save $3 billion a year by 2008.

Why are they doing this, streamlining operations? Well, they're really struggling with competition from their big competitor AMD. That's Advanced Micro Devices. Now some investors are thinking these changes might not be drastic enough. The stock did lose a little bit of ground after the market closed yesterday when Intel announced this news. So that is one thing dragging on the futures this morning.

Also, Delta Air Lines has gotten court approval to end its pilots' pension plan. Also, they still need to get approval from the government's pension guarantee corporation. Delta now says the retired pilots, current retired pilots, will get about $75,000 a year. And this move is really key for Delta to come out of bankruptcy, Miles and Soledad. They're hoping to do this by the middle of next year. So certainly not good for these current retired workers, but Delta is really up against a wall, they have to do this, they have to save money if they want to stay viable in any way.

M. O'BRIEN: Yes. It's tough for people who have retired and thought they had a bargain.

LEE: Exactly. People who have worked there for decades and then all of a sudden, boom, you know the money you expect you're going to get is cut.

Let's do a quick check on market action yesterday. Stocks ended slightly higher. You can see the Dow up by just about five points. As I said, Intel, one thing weighing on futures. Looking like a lower start for stocks, at least at this point this morning. That's the latest.

M. O'BRIEN: All right, thank you very much, -- Carrie Lee.

LEE: OK. Sure.

M. O'BRIEN: Have a good day.

LEE: You too.

M. O'BRIEN: Just days before the fifth anniversary of 9/11, a new health report is finding about 70 percent of the recovery workers at the World Trade Center site are suffering from lung problems.

We get more on this story from CNN's Randi Kaye.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): On September 11, five years ago, as word spread America was under attack, hundreds of emergency responders rushed to the World Trade Center. Among them, NYPD Detectives John Walcott and Rich Volpe who arrived at Ground Zero right after the second tower fell.

RICH VOLPE, FMR. NYPD DETECTIVE: I remember you couldn't see your hand in front of your face, number one. I remember constantly coughing and constantly gagging.

KAYE: Now retired, they're no longer fighting to keep drugs off the street, they're fighting to stay alive.

JOHN WALCOTT, FMR. NYPD DETECTIVE: Right now I'm on borrowed time, 5 percent only live as long as I have.

KAYE: John is battling leukemia, Rich severe asthma and double kidney failure. Both blame their illnesses on exposure to toxins like benzene, dioxin and asbestos at Ground Zero.

DR. STEPHEN LEVIN, MOUNT SINAI MEDICAL CENTER: Want you to breathe real deep in and out through your mouth.

KAYE: Dr. Stephen Levin heads the largest screening program for 9/11 responders at Mount Sinai Hospital in New York City.

LEVIN: Well there's no question that people have developed very high rates of respiratory illnesses.

DAVID WORBY, ATTORNEY: This is a list of the cancers.

KAYE: Attorney David Worby says he has more than 8,000 clients who got sick at Ground Zero.

WORBY: It was the worst toxic waste site ever.

KAYE: Worby says more than 350 of his clients have cancer, 1,000 have severe respiratory ailments. More than 60 of them are already dead. (on camera): At any point were you given a mask to wear?

WALCOTT: It took about three weeks to get a mask. Then a couple of weeks later, they told us it was the wrong filters.

KAYE (voice-over): New York City declined an interview, citing pending lawsuits, but issued this statement to CNN. "Safety protocols were quickly implemented, including the requirement that respirators be worn, and the City, its contractors and OSHA supplied more than 200,000 respirators to workers."

Dr. Steven Levin says it's still too soon to know if there is a connection between Ground Zero and cancer.

(on camera): Based on your expertise, how long after exposure do you think it would take for someone to develop cancer?

LEVIN: In most cancer types, that latency period, that delay is more often 20 and 25 years. Is it possible that we could be seeing something in the World Trade Center mix of exposures that could accelerate that? It would really violate our understanding of the biology of answer, but we can't close our minds to the possibility.

KAYE (voice-over): While he waits for answers, Rich remains focused on staying strong. And John, after six months of chemotherapy, he has hope, his leukemia is in remission. The days of coaching high school hockey are over, he's too weak. So instead, he skates the ice with his daughter. In the face of death, family is top priority.

Randi Kaye, CNN, New York.

(END VIDEOTAPE)

M. O'BRIEN: Randi's report first aired on "ANDERSON COOPER 360" which airs weeknights 10:00 Eastern right here on CNN -- Soledad.

S. O'BRIEN: A look at the morning's top stories are straight ahead, including Senate Democrats who are taking aim today at the defense secretary and the administration's strategy in Iraq.

Also, last week he was on the FBI's most wanted list. Today, fundamentalist church leader facing a court hearing on several sex charges.

And don't run off, we're going to tell you about a boat load of Nike knockoffs.

All ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Happening this morning, it's a delay for the launch of the shuttle. Engineers are checking out a fuel cell problem. It's unclear if they're going to be able to get it fixed in time to try again tomorrow. The Senate's going to debate a no-confidence vote on Defense Secretary Donald Rumsfeld today. Democrats behind the amendment want the secretary fired. The White House says that's not going to happen.

And three reports on Hurricane Katrina are due to go to Congress today. One is focusing on the mistakes that were made after the hurricane. Another focuses on the condition of the levees in New Orleans. And a third takes a look at the money -- $112 billion of federal money not being tracked properly because it doesn't go through a central place.

Good morning. Welcome back, everybody.

I'm Soledad O'Brien.

MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien.

Thanks for being with us.

President Bush today with his third pep talk aimed at shoring up support for the war in Iraq. A new CNN poll showing why the president is trying to win over Americans.

Fifty-three percent of the people we spoke with say the war in Iraq is not part of the war on terrorism. Forty-five percent believe it is.

The majority of Americans, 58 percent, oppose the war in Iraq. Just 39 percent favor the U.S. involvement at this point. A quarter of those polled think the U.S. is winning the war in Iraq, but he majority think no one is.

The poll conducted for us by the Opinion Research Corporation.

Another car bomb explodes in northern Baghdad this morning.

CNN's Michael Holmes joining us from Baghdad with more -- Michael.

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: Good morning to you, Miles.

That's right, after U.S. and Iraqi officials were rather pleased comparatively with a drop in deaths in August, that's all changed this month in the first few days. Well over a thousand Iraqis died last month.

Now, in the last 48 hours alone, 65 bodies have been found around Baghdad, all of them their hands tied, some of them blindfolded, most of them showing signs of, at times, brutal torture. Now, just overnight 19 of those bodies turned up. So it has been a very bloody last couple of days.

Also, this morning here, a car bomb, followed by a roadside bomb. This happened in northern Baghdad. Six people were killed, 46 were wounded, all of them civilians. The interesting thing in this case was that the car was parked, there -- there was no apparent target, apparently, in the area, no army patrols, no police patrols, purely civilian casualties -- Miles.

M. O'BRIEN: Michael Holmes in Baghdad.

Thank you very much -- Soledad.

S. O'BRIEN: In his speech yesterday, President Bush said al Qaeda presents a dangerous and evolving threat. Back in 2003 he suggested that the terrorist organization was nearly crippled and on its way out. So what's changed since then?

CNN's Kelli Arena has our report this morning.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice over): A crippled organization, most of its leaders in custody or dead, its base of operations destroyed. That's how the president has described al Qaeda in the recent past, barely mentioning Osama bin Laden's name until now.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Bin Laden and his terrorist allies have made their intentions as clear as Lenin and Hitler before them.

ARENA: Now the president is talking about how al Qaeda and terrorists that are inspired are successfully using the Internet to recruit and train, how they're influencing western-born citizens to join their cause, and how they nearly pulled off another 9/11-style attack.

BUSH: Most recently, they attempted to strike again in the most ambitious plot since the attacks of September 11th, a plan to blow up passenger planes headed for America over the Atlantic Ocean.

ARENA: Is al Qaeda running scared, or should we be? What's changed to turn what the president described as a battered organization into a serious threat? Well, part of the answer is that plot to blow up airliners.

Just before it was revealed last month, two top government counterterrorism officials privately said that they didn't think al Qaeda was still capable of a large-scale attack. Analysts suggest that plot served as a wakeup call.

BRUCE HOFFMAN, GEORGETOWN UNIVERSITY: I think there's a very good saying that sums it up, and that's the more things change, the more they stay the same. And I think whatever optimism we might have had has certainly been challenged in the past month.

ARENA: Some see politics at play here, that the closer we get to the midterm elections, the more the specter of a potent and dangerous al Qaeda suits the president and his party.

(on camera): But whatever the motivation, analysts say that the new and more alarming rhetoric may be closer to the mark than the old "we're winning" message.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

S. O'BRIEN: CNN's going to carry the president's speech on global terrorism live today at 1:45 p.m. Eastern Time.

Starting in our next hour, we're going to have much more on the war on terror. We'll be joined by the Senate majority leader, Bill Frist, just ahead. Also, Democratic Senator Dick Durbin as well -- Miles.

M. O'BRIEN: The "Crocodile Hunter'" father says he lost his best mate. Steve Irwin's father Bob speaking today in Australia at the zoo he ran before his famous son took over. Irwin died Monday, stung by a stingray while diving on the Great Barrier Reef. Australia's prime minister offered a state funeral for the world famous Irwin, but his family declined.

Bob Irwin explains why.

(BEGIN VIDEO CLIP)

BOB IRWIN, STEVE IRWIN'S FATHER: The state funeral will be refused.

QUESTION: Can we ask why, Bob?

IRWIN: Because he's an ordinary guy. He's just an ordinary bloke. He -- and he wants to be remembered as an ordinary bloke.

(END VIDEO CLIP)

M. O'BRIEN: Irwin's family has not yet finalized the funeral arrangements.

Happening in America, the polygamist cult leader Warren Jeffs makes his first Utah court appearance today. Jeffs choppered from Las Vegas to the Purgatory Correctional Facility in Utah yesterday. He'll appear via video teleconference. He's charged with arranging the marriage of underage girls and older men in his sect.

In New York, a mammoth manhunt goes on for the escaped inmate and suspected state trooper killer Ralph "Bucky" Phillips. Two attempted break-ins in areas in Pennsylvania right across the western New York border being investigated by authorities. Police asking the public to keep their eyes open and their homes locked.

A fuel cell problem, that is what is forcing NASA to delay today's scheduled launch of the space shuttle Atlantis. It's already been delayed a couple of times on account of weather. Once a lightning strike, the other Tropical Storm Ernesto.

They'll try for tomorrow, but at this point unclear if they can make that target. In Arizona, a major international struggling ring involving fake Nike athletic shoes busted. Investigators believe smugglers were trying to sneak as many as 738,000 fake Nikes into the U.S. The scheme allegedly worked like this: fake Nikes shipped to California in large shipping containers from China, then loaded onto trucks and shipped to places like Arizona to be sold.

In Montana, firefighters trying to get the upper hand on that massive wildfire near Big Timber. Crews attacked the fire from the ground for much of the day yesterday because thick smoke made it impossible for firefighters to fight it from the air. The 180,000- acre fire reportedly 45 percent contained.

Let's get a check of the forecast. Chad Myers at the CNN Center.

Any relief in sight for those folks? Oh, you're -- you're doing tropical storm first, but...

CHAD MYERS, CNN METEOROLOGIST: Oh, it's OK.

(WEATHER REPORT)

MYERS: Back to you.

S. O'BRIEN: All right, Chad. Thanks.

MYERS: Sure.

S. O'BRIEN: Here's a shot of the pope you're not going to see every day. Pope Benedict XVI riding around in the pope mobile, wearing a big red hat. This is his Saturno hat. It's reminiscent, they say, of the rings around the planet Saturn. Hence Saturno.

No special reason for the hat, if you're wondering, other than keeping the sun out of the pope's eyes. And you may think, well, then, why does it need to be red? I don't know the answer to that.

M. O'BRIEN: These are questions -- I mean, you would think red is associated with cardinals. We need to check with the...

S. O'BRIEN: Or the red-hat ladies -- aren't they the ones who wear those big red hats?

M. O'BRIEN: Are you calling the pope a red-hat lady? Is that what you're doing?

S. O'BRIEN: No. I'm just saying that maybe they took the inspiration...

M. O'BRIEN: May lightning strike you now, Soledad.

S. O'BRIEN: Oh, no, no, no. I'd never say that.

Still to come this morning...

M. O'BRIEN: It's a look. It's a look, for sure. S. O'BRIEN: ... take a look at this. Who's that baby in that picture? Here's a hint, it's the cover of "Vanity Fair," and it's a 22-page spread. And there's Tom Cruise and Katie Holmes next to the baby.

That's right, little Baby Suri finally revealed. We'll show you the pictures.

M. O'BRIEN: Twenty-two pages. That's a lot of shots of a baby.

Japan has its own baby news to celebrate this morning. We don't know about any 22-page spreads on this one, but Princess Kiko delivers an heir apparent and settles, at least for now, a little concern about succession there.

S. O'BRIEN: And after months and months of buildup, it's finally Katie Couric's big day. CBS News launches its new format and the new face.

We'll take a look at how it went ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Here's a look now at stories that CNN correspondents around the world are covering today.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN INTERNATIONAL CORRESPONDENT: I'm Harris Whitbeck in Mexico City, where after two months of public debates and protests in the streets, a winner in the Mexican presidential election has finally been declared. The winner is friendly to business interests and to the United States, and he faces a now former leftist opponent who has vowed to make it difficult for him to govern.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

STAN GRANT, CNN INTERNATIONAL CORRESPONDENT: Hi. I'm Stan Grant in Beijing.

Talking about talks, but not everybody's talking. Does that sound confusing? Well, try being U.S. Ambassador Christopher Hill. He's here in Beijing trying to revive the stalled six-party talks to rid North Korea of nuclear weapons.

China is willing, as is South Korea and Japan. North Korea, though, walked away from the negotiating table a year ago, showing no signs of coming back. As far as North Korea is concerned, it's done talking.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE) ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: I'm Atika Shubert in Tokyo, Japan, just outside of the imperial palace, where people have been arriving all day to celebrate the birth of a baby boy to Princess Kiko and Prince Akishino. Fans have danced in the streets, also hoisted up flags in the shape of fish to symbolize the arrival of a boy.

He is now third in line to become emperor of Japan. And he is the only male heir to be born into the imperial family in more than four decades. The rest have been girls. His arrival is likely to put to rest a controversial proposal that would have broken centuries of tradition and allowed women to become emperors in Japan.

(END VIDEOTAPE)

S. O'BRIEN: For more of these or any of our top stories, you can go right to our Web site, CNN.com -- Miles.

M. O'BRIEN: At long last, the wait is over. We finally get to lay our eyes on Baby Suri Cruise. Suri and her famous parents, Tom Cruise and Katie Holmes, on the cover of "Vanity Fair."

There's little Suri. Check out the head of hair. Is that real? Is that a rug?

S. O'BRIEN: That's real.

M. O'BRIEN: That's real?

S. O'BRIEN: No, it looks real.

M. O'BRIEN: That dark? That -- OK. Just checking.

S. O'BRIEN: My daughter had hair like that. Now she's blonde. It's crazy.

M. O'BRIEN: Amazing.

S. O'BRIEN: It can happen.

M. O'BRIEN: Inside, in case that cover isn't enough for you, a 22-page spread of the family -- 22 pages.

S. O'BRIEN: That's a lot of pages.

M. O'BRIEN: That's a lot of pages. It's about 21 too many. But anyway, the couple has shielded the baby from photographers since her birth four and a half months ago -- Soledad.

S. O'BRIEN: Well, those "Vanity Fair" pictures were first revealed on the "CBS Evening News," as another big debut was taking place. Katie Couric made history last night when she became the first woman to solo anchor an evening newscast.

Listen.

(BEGIN VIDEO CLIP)

WALTER CRONKITE, FMR. "CBS EVENING NEWS" ANCHOR (voice over): This is the "CBS Evening News With Katie Couric."

KATIE COURIC, "CBS EVENING NEWS": Hi, everyone. I'm very happy to be with you tonight.

(END VIDEO CLIP)

S. O'BRIEN: After Katie was introduced in a voice-over by Walter Cronkite -- that's who you heard there a moment ago -- she began the newscast with an investigative piece on the Taliban in Afghanistan, then a big major celebrity scoop. She showed some first pictures of Suri Cruise.

You know, some people said Suri Cruise didn't exist because we hadn't seen any baby pictures. Anyway, Katie ended the newscast by asking viewers to suggest a signoff for her. She ran through the list of everybody else's...

M. O'BRIEN: Yes.

S. O'BRIEN: ... including...

M. O'BRIEN: Ted Baxter.

S. O'BRIEN: Ted Baxter's signoff, and...

M. O'BRIEN: Ron Burgundy...

S. O'BRIEN: Ron Burgundy's signoff, which I think...

(CROSSTALK)

S. O'BRIEN: So she's asked viewers to suggest their own.

M. O'BRIEN: We'll have to think of something today.

S. O'BRIEN: Yes. E-mail it to her. See if she picks it up.

M. O'BRIEN: Yes.

S. O'BRIEN: "Watch 'AMERICAN MORNING' in the morning."

M. O'BRIEN: That's a good one. Nice touch. Do you think she would know that was us?

S. O'BRIEN: Of course, yes. She might.

M. O'BRIEN: Still to come on AMERICAN MORNING, a sharp slowdown in home prices. We've got the quarterly figures, if we must, ahead.

And do you have an air-conditioner in your window? Well, if you do, you better double-check it. It could be gutted. We'll tell you why you might want to lock up your copper.

That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Tough talk is coming this morning from NATO's secretary-general, who says his troops are ready to take the fight to the Taliban in southern Afghanistan. It might not be as simple as it sounds, though.

We get more from CNN Senior Pentagon Correspondent Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice over): Once dubbed the "forgotten war" because fighting was sporadic and progress seemed steady, Afghanistan has burst back into the headlines, as newly arrived NATO forces are locked in deadly combat with resurgent Taliban militants.

"The New York Times" calls an area of southern Afghanistan once touted as a symbol for change a symbol of failure, noting, with the rising violence, "Statistically, it is now nearly as dangerous to serve as an American soldier in Afghanistan as it is in Iraq."

And now increasingly more dangerous for NATO troops, who just this summer took the lead in the south. They're taking the heavy casualties, as NATO's secretary-general noted as he toured the country Tuesday.

JAAP DE HOOP SCHEFFER, NATO SECRETARY-GENERAL: It is a dramatic price we have to pay and NATO is paying in the NATO member states.

MCINTYRE: On Monday, a Canadian soldier, former Olympics sprinter Mark Graham (ph), was killed when U.S. A-10 warplanes mistakenly strafed his position. Canada has lost 25 troops in the south since fighting began this summer.

British casualties are up, too. Fourteen troops died in a plane crash Sunday, bringing the British death toll to 16 this week, 32 in a month.

While the casualties may erode support at home, NATO's chief insists the alliance will honor its commitment to stay and fight.

DE HOOP SCHEFFER: We all know there is considerable resistance. As I said, there is -- there is combat going on. Is NATO up to the job? Yes, NATO is up to the job, definitely.

MCINTYRE: But an international think tank offers a bleak assessment, concluding the U.S.-led international community has failed Afghanistan. Among the report's findings, in the five years since military pragues began, Afghanistan's security situation has deteriorated significantly. The country remains ravaged by severe poverty and spreading starvation, and that misguided and badly- formulated drug policy has effectively hijacked the nation-building efforts as the opium crop reaches record levels. (on camera): U.S. and NATO commanders insist they are getting the upper hand against the Taliban, claiming to have killed between 50 and 60 in the latest fighting. Since the NATO offensive began, more than 200 Taliban had been flushed out. But as U.S. commanders learned in Vietnam and again in Iraq, body counts are not the most accurate measure of success.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

M. O'BRIEN: Coming up, some new surveys question how safe our hospitals are with all those overworked, sleep-deprived young interns on duty. We'll have that in our next hour.

Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Are you trying to sell your home? You having some trouble? Well, apparently there's good reason for that.

Gerri Willis, "Minding Your Business" this morning, has some troubling news with the real estate market.

GERRI WILLIS, CNN CORRESPONDENT: It's true.

M. O'BRIEN: Tell us.

WILLIS: Miles, Soledad, good to see you this morning.

The average home prices in the third quarter increased by 1.17 percent. That's according to a government report just released. Last year at the same time prices rose 3.65 percent.

Now, among the factors influencing these numbers are slowing prices, higher interest rates, as we've talked a lot about. There are more homes on the market -- that's more inventory -- and a lack of speculative investors who had helped to keep the market afloat, particularly in markets like Florida, Arizona, you name it.

Now, this is the sharpest year-over-year slowdown in the 30 years since the government began keeping the records. That's way back in 1975.

And I've got to say, these headlines, they understate just how important a turning point this is. In some cities like Detroit, Fort Wayne, Indiana, and Lima, Ohio; it's not that the rate of growth is slowing. It's that prices are actually falling.

M. O'BRIEN: But, I mean, the key point there is that real estate is a local thing. You know, it can be doing well in some pockets.

WILLIS: That's right. And it's hard to generalize over the entire country.

M. O'BRIEN: Yes.

WILLIS: Middle of the country, prices move at a slower rate. And, of course, on the coast, they go up and down and cycle all around. And I think a lot of people really struggle with that because it's difficult to understand. But it's all about the local market.

And there's another worry out there, though, for homeowners. Metal thieves are making the best they can of high prices of copper and aluminum. It's led to a surge in metal-related thefts from homes.

Thieves steal coils from air-conditioning units, copper wires, copper pipes for plumbing, you name it. In some cases, the value of the metal is low. Maybe just $100 they're getting by ripping your AC unit off the side of your house. But the damage is many times more that. You'll have to probably pay $2,000 to get it fixed.

To protect yourself, consider hiding your outdoor central air units with fences or shrubs. Any kind of barrier can actually stop a thief. He's just going to move on to the next house.

M. O'BRIEN: So they go after not just the window units but the condensers, as well?

WILLIS: That's right.

M. O'BRIEN: Wow.

WILLIS: They rip those things right up. They create so much damage that you can't just replace the copper, you've got to replace the whole unit.

M. O'BRIEN: Wow. All right.

S. O'BRIEN: They're not careful while shredding your cooling system.

M. O'BRIEN: No.

(CROSSTALK)

M. O'BRIEN: At least you can be neat about it when you're taking my condenser.

What's next?

WILLIS: Well, we've got some interesting stuff coming up on Ford. They go outside the family for a new CEO. We'll have details on that.

M. O'BRIEN: All right, Gerri. Thank you very much.

S. O'BRIEN: It is time for a check of the forecast this morning. Chad's at the CNN Center with that.

Hey, Chad.

MYERS: Good morning, Soledad.

(WEATHER REPORT)

MYERS: The next hour of AMERICAN MORNING starts right now.

M. O'BRIEN: No confidence in Donald Rumsfeld. Democrats push for a vote on the defense secretary, as support for the war wanes and the politicking heats up.

And are Republican candidates running away from the president, the politics of war and terror?

And this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: A doctor working for 24 hours straight is just as impaired as someone who's drunk.

UNIDENTIFIED MALE: Do we have a good appetite?

UNIDENTIFIED MALE: Pretty good.

(END VIDEO CLIP)

S. O'BRIEN: Lives at risk when doctors work around the clock. A new study blasts the problem that many thought was fixed.

And in Japan, it's a boy. So how are the Japanese feeling about all the fuss?

M. O'BRIEN: And Katie and Tom, the moment you've been waiting for. Pictures of Baby Suri, 22 pages worth. We promise we won't show them all to you.

That and much more on this AMERICAN MORNING.

S. O'BRIEN: Good morning. Welcome back, everybody.

I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien.

Thanks for being with us.

S. O'BRIEN: Let's begin this morning with what really is a political war brewing over the war on terror.

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