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American Morning

Deadly Month; Marketplace Bombing; Countdown To Elections; Nigeria Plane Crash; Pennsylvania Senate Race; Gallaudet President Out; Wildfire Battle

Aired October 30, 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: A deadly milestone in Iraq. A hundred U.S. Marines and soldiers now dead this month in that country. The fourth deadliest month since the war began.
SOLEDAD O'BRIEN, CNN ANCHOR: The midterm elections just eight days away. Today, President Bush is hoping that two words, taxes and terrorism, will get Republicans some votes.

M. O'BRIEN: And another airliner goes down in Nigeria. Ninety- seven die as it flies into the teeth of a storm other pilots were avoiding. The country's top Muslim leader among the dead.

Those stories and more on this AMERICAN MORNING.

S. O'BRIEN: And good morning. Welcome, everybody. It is Monday, October 30th. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien. Thanks for being with us.

We begin in Iraq in the violent Anbar Province where a U.S. Marine was killed yesterday in combat. The 100th American serviceman to die in the war this month. October 2006 likely to go down as the fourth deadliest month for U.S. soldiers and Marines since the invasion three and a half years ago. CNN's Arwa Damon live from Baghdad with more.

Arwa.

ARWA DAMON, CNN CORRESPONDENT: Good morning, Miles.

It is a very grim milestone for the U.S. military operating here. A lot of these soldiers and Marines that are in Iraq right now are on their second, even third tours of duty. And each time they come back they are facing a different and, in many aspects, even more difficult challenge than when they were here before.

We are seeing IEDs, those roadside bombs, becoming even more sophisticated and deadly, able to penetrate through the U.S. military's armor. We are seeing the small arms fire attacks increasing, especially in the capital Baghdad, becoming more accurate.

A very grim milestone for U.S. forces here announced just yesterday. The 100th U.S. Marine to have been killed, bringing the total in October to allow it to be the fourth deadliest month so far here since President George Bush announced the end of major combat in Iraq.

Miles.

M. O'BRIEN: And, Arwa, tell us about a bombing we've heard about in a marketplace. A very deadly one.

DAMON: It was, Miles.

It was in the Shia stronghold of Sadr City. That is a Mehdi militia stronghold, actually. The militia that's loyal to radical Shia Cleric Muqtada al-Sadr.

Now this bomb was hidden in a plastic bag. That bag then hidden in a pile of trash. It exploded at about 7:50 in the morning at the exact location where day laborers gather on a regular basis looking for work. At least 26 Iraqis were killed, another 60 were wounded in that attack.

This is an area that has come under frequent attacks over the last few years, especially over the summer. We saw a number of deadly attacks in that area. This attack also, like the ones in the past, bearing the hallmarks of sectarian violence, intended to stir up Iraq's Shia population.

This is an area, as I just mentioned, that is a Mehdi militia stronghold. Oftentimes residents turn to them to provide them with security. But as we are seeing today, despite all their efforts, the violence does continue.

Miles.

M. O'BRIEN: The Pentagon has lost track of thousands of weapons bought to armed Iraqi security forces. Government auditors say more than 14,000 semiautomatic pistols, assault rifles, machine guns and grenade launchers are unaccounted for. They won't be easy to find, either. Apparently the military did not record serial numbers on most of the arms issued to Iraqi security forces. The Pentagon spent $133 million to arm the Iraqis. Auditors also say they don't have adequate spare parts or manuals.

Soledad.

S. O'BRIEN: Some new information on that American soldier who is missing in Iraq. "The New York Times" reports that he is 41-year-old Ahmed Qusai al-Taei, an Iraqi American. And "The Times" says the soldier, who's a translator, broke military rules and married a local civilian about three months ago. That woman's family says al-Taei was kidnapped by Shiite militia men when he came to visit his wife on October 23rd. The U.S. military is not identifying the soldier and also would not comment on that newspaper report.

And we're coming into the final stretch of campaigning before the midterm elections. Just eight days to go till voters cast their ballots. Lots at stake, obviously. President Bush is doing all he can to rally Republicans. CNN's Ed Henry has a report from the White House this morning. (BEGIN VIDEOTAPE)

ED HENRY, CNN CORRESPONDENT: The president hits the campaign trail again this morning, first with a stop in Georgia, then on to his home state of Texas, the district of former House Majority Leader Tom DeLay, who resigned from Congress under an ethical cloud, leaving a once-safe Republican seat now up for grabs. The president will trumpet the same themes we saw on Saturday, a major public rally he held in Indiana, and he hit the two t's, taxes and terrorism, charging that a Democratic Congress would raise taxes and would lose the war on terror. This is the mantra that voters will hear from the president in the final days of the campaign.

First Lady Laura Bush will also hit the campaign trail today in Pennsylvania, taking a softer approach in trying to reach out to voters. This is basically the one-two punch from the White House. The president reaching out to conservatives, while his wife is trying to bring in moderate Republicans and centrists.

Ed Henry, CNN, the White House.

(END VIDEOTAPE)

S. O'BRIEN: Happening this morning.

The second trial of Saddam Hussein is underway in Baghdad. Hussein's chief lawyer has walked out again after the judge rejected twelve defense requests. The verdict in Hussein's first trial is expected on Sunday.

A trial today in Madrid, Spain, for six Algerian men. They're charged with belonging to an Islamic terrorist group. One is also charged in an alleged plot to attack a U.S. military base in Spain.

At least 80 people were killed as Pakistani troops backed by helicopters raided a religious school near the Afghan border. The school was reportedly training terrorists for al Qaeda. Local leaders say innocent civilians were among the victims.

Police in Mexico used armed vehicles and water cannons trying to take control of the city of Oaxaca. Protesters have been holding the city for five months in an effort to topple the state's governor.

The southern California wildfire that killed four firefighters is now about 85 percent contained. Investigators are now tracking down hundreds of tips. They're trying to find the arsonist who set that fire.

M. O'BRIEN: In Nigeria, crash investigators have recovered the black boxes belonging to a 737 that crashed shortly after takeoff in Abuja. Ninety-six are dead. Nine managed to survive. The flight crew opted to take off in bad weather, despite warnings to the contrary. CNN's Jeff Koinange with our story.

(BEGIN VIDEOTAPE) JEFF KOINANGE, CNN CORRESPONDENT, (voice over): It's hard to imagine how people could have walked away from this. The Boeing 737 burst into flames one minute after taking off from Nigeria's capital, Abuja, with 104 people on board. Only the plane's tail, an engine, and part of a wing were still recognizable at the crash site, littered with smoldering fires, boxes, and bags.

Emergency response teams arrived at the horrific scene. Nearly 100 bodies, including the man regarded as a spiritual leader of Nigeria's 17 million Muslims, the Sultan of Sokoto, Al-Haji (ph) Muhammadu Maccido. Also among the wreckage of the shattered plane, the body of his son, a senator in the Nigerian national assembly. There are still numerous questions surrounding this accident. Like, just how people could have survived.

UNIDENTIFIED MALE: Six of them are quite stable. One is critical. She's in the intensive care unit.

KOINANGE: One survivor said everything seemed routine before the ill-fated flight began its taxi.

UNIDENTIFIED MALE: It was terrible. (INAUDIBLE). What went wrong, I don't know.

KOINANGE: Nigeria's president Olusegun Obasanjo offered condolences to the families of the dead and ordered an immediate investigation into the cause of the crash. Nigeria's aviation has a notorious history of accidents, but the past year has been particularly tragic. Two crashes in as many months late last year led to more than 200 fatalities, including dozens of children. This latest crash has plunged Nigeria's religious community into six days of mourning for the Sultan of Sokoto and has left the families of the nearly 100 victims asking why.

Jeff Koinange, CNN, Johannesburg.

(END VIDEOTAPE)

M. O'BRIEN: Coming up on the program, some high winds prove deadly in the northeast. We'll have a look at the destruction there.

And will voters send Senator Rick Santorum packing on Election Day? Not if the first lady has anything to say about it. A look at Pennsylvania's heated Senate race ahead.

(COMMERCIAL BREAK)

S. O'BRIEN: Top stories we're following for you this morning.

President Bush campaigning in Georgia and Texas today, trying to drum up votes for Republican candidates with just eight days to the midterm elections.

And the U.S. Supreme Court is back in session this morning. Among the cases they're hearing, one to improve the conditions of prisons. Work crews in parts of the Northeast are trying to restore power this morning after a weekend windstorm. It blasted New York and the rest of the region with gusts of over 50 miles an hour. It knocked down trees, power lines, and caused at least two deaths.

A motorcyclists in Massachusetts is the latest fatality. Police say the biker was killed yesterday when a gust of wind knocked over a tree, which then, in turn, fell on him. In New Hampshire, officials say a man drowned when his kayak overturned on a raging river. One person is still missing after falling off a cruise ship in Lake Winnipesaukee during the storm. Thousands of homes and businesses in the region remain without power this morning.

Twelve minutes past the hour. If you're about to head out the door, let's first check in with Chad for the traveler's forecast.

Hey, Chad, good morning.

(WEATHER REPORT)

M. O'BRIEN: Eight days now to the election and Republicans in Pennsylvania are combing through the numbers, trying to see if they can hold on to Rick Santorum's Senate seat. The Democrats smell a victory there, but the White House won't let this one go down without a fight. AMERICAN MORNING's Bob Franken live from Philadelphia with more.

Hello, Bob.

BOB FRANKEN, CNN CORRESPONDENT: Hello, Miles.

And if you're the Republicans and the tide is going against you, what do you do? You swim harder.

(BEGIN VIDEOTAPE)

SEN. RICK SANTORUM, (R) PENNSYLVANIA: Don't let anybody tell you those polls are right. We're going to win this thing on November 7th.

FRANKEN, (voice over): The latest poll shows Senator Rick Santorum from just under 10 to 16 points behind. But he's the number three ranking Republican in the Senate and important enough that the White House this weekend sent the more popular Bush to campaign for him.

LAURA BUSH, FIRST LADY: And, of course, I'm so proud to stand here with Senator Rick Santorum.

FRANKEN: Santorum presents himself as the bulwark against terrorism and hostile world leaders, the rampart protecting conservative values, combative, but bipartisan, of course.

SANTORUM: Too often this is what it seems like in Washington. But to get things done, you've got to work together.

BOB CASEY, (D) SENATORIAL CANDIDATE: You're going to see a lot of wild, desperate ads from my opponent.

FRANKEN: State Treasurer, Bob Casey, the Democratic challenger, wrestles with the problems of being a favorite, keeping the enthusiasm up, particularly since he too is anti-abortion, much to the consternation of many in his party. For the most part, he's on message, though much lower key than Santorum.

UNIDENTIFIED MALE, CASEY CAMPAIGN AD: What happened in Washington? Millions of jobs lost. The largest deficit ever. An arrogant government out of touch.

CASEY: Pennsylvania deserves a senator in step with Pennsylvania.

FRANKEN: And as in so many campaigns at this stage, the candidates have their themes down pat.

CASEY: I'm Bob Casey and I approved this message.

SANTORUM: I'm Rick Santorum and I approved this message.

(END VIDEOTAPE)

FRANKEN: OK, Miles. I'll start this now. Both sides are going to run a no-holds-barred campaign.

M. O'BRIEN: And there you have it. Thank you. You had to do it. It's low hanging fruit.

Thank you, Bob Franken.

An American company that makes voting machines to be used in next week's election is denying any connection to the government of Hugo Chavez in Venezuela. But U.S. government still would like Sequoia Systems to prove it has no ties to Chavez. You remember, of course, Chavez called President Bush the devil last month in a fiery speech at the United Nations.

All the day's political news available at cnn.com news ticker any time day or night. Just click on cnn.com/ticker.

Soledad.

S. O'BRIEN: Some of the stories we're watching for you this morning.

The incoming president at Gallaudet University is forced out after weeks of protest at the school for the death.

And there is a new list of the country's most dangerous cities. We'll tell you which one's now at the very top.

Those stories and much more ahead on AMERICAN MORNING. We're back in just a moment.

(COMMERCIAL BREAK) S. O'BRIEN: Some of the top stories we're following for you this morning.

In Iraq, at least 26 people are dead following an early morning explosion at a market in Sadr City. And the top U.S. general in South Korea says he doesn't have any new intelligence, he just expects that North Korea is going to carry out another nuclear test.

Miles.

M. O'BRIEN: In St. Louis, World Series celebrations dampened by an unwelcome distinction. The city now considered the most dangerous in the country. The FBI says violent crime in St. Louis surged nearly 20 percent from 2004 to 2005. Detroit and Flint, Michigan, came in second and third on the most dangerous list. Now on the flip side, the safest city in 2005 was Brick, New Jersey, population 78,000. Amherst, New York and Mission Viejo, California, followed in that category.

Soledad.

S. O'BRIEN: Protesters at Gallaudet University, the nation's premiere school for the deaf, have finally succeeded in their months long effort to have the school's embattled president-to-be fired. Here's a look.

(BEGIN VIDEOTAPE)

S. O'BRIEN, (voice over): Jubilation on the campus of Gallaudet University in Washington after the school's board of trustees voted to terminate the appointment of its incoming president. Jane Fernandes was the target of fierce protests from students and faculty and alumni since May when she was tapped for the school's top job. The protests grew this month, prompt hunger strikes, mass arrests, and campus lockdowns.

LATOYA PLUMMER, GALLAUDET JUNIOR: I knew we would win, but the question was when. Today, I'm absolutely elated today.

S. O'BRIEN: At issue, students say, her inability to lead, an unfair selection process, and long-standing problems at the school that have been ignored. Fernandes says she's the victim of a culture debate over whether she was deaf enough. She was born deaf, but Fernandes didn't learn sign language until she was an adult. Fernandes, now the school's provos (ph), said in a statement "I love Gallaudet University and I believe I could have made a significant contribution to its future. I hope that the Gallaudet community can heal the wounds that have been created."

BARBARA WHITE, GALLAUDET FACULTY MEMBER: I want to give a message to the board of trustees that they made a very, very brave decision this afternoon. The community, I think, can now start the healing process.

NIXO LANNING, GALLAUDET SENIOR: We are so excited. I don't think I've ever felt this good before. I feel like there should be fireworks going off right now. We are so thrilled to see this decision.

S. O'BRIEN: Gallaudet's current president hopes the school can now move forward and students say their work's not done.

JEANINE WEISBLAY, GALLAUDET JUNIOR: We are going to keep an evil eye to make sure that the board of trustees, the new presidential search process is one that's fair and equitable.

(END VIDEOTAPE)

S. O'BRIEN: The students are also saying they plan to become more active in the selection process.

Miles.

M. O'BRIEN: Well, you've got sale? Time Warner may be shedding AOL to the hands of Yahoo! of all places.

Andy Serwer, good morning. Welcome to Monday. Welcome to the week.

ANDY SERWER, CNN CORRESPONDENT: Good morning, Miles. Thank you very much.

A couple of high-profile companies in the news this morning. Let's start with Yahoo!. What should Yahoo! do? You know this company, once a growth star, now, well, maybe falling a little bit behind you know who, and that would be Google. Trying to catch up with the dominant search company. And, of course, that means Google's garnering all the ad dollars.

A story in "Fortune" this issue about whether or not Yahoo! should be buying or staying pat or where it should be going. And, in fact, there's talk about Yahoo! approaching Time Warner's AOL business. They've done that previously. Now apparently talks may be on again.

Another option for the company would be to sell out to Microsoft, merge with eBay. And, of course, there's always that corporate "stay the course." And, of course, Google, bought YouTube, NewsCorp bought myspace. Facebook is still out there. So a whole lot of mating games going on, if you will.

M. O'BRIEN: There's pressure to do something, in other words?

SERWER: Right. And sometimes when there's pressure to do something, the best thing to do is to do nothing because you can waste a lot of money when the heat is on like that.

Another company we want to talk about this morning is ClearChannel, which, of course, is the nation's biggest radio station company. They apparently are ready to be bought out. And it looks as if the Mays family, they're down in San Antonio, Texas -- Lowry Mays founded the company. His two sons are executives there -- could stand to gain as much as $1.1 billion if this deal goes through. And that certainly is a lot of money. They may be paid to stay on to run the company because, if they leave, where's the expertise? It goes right out the door.

M. O'BRIEN: So who's buying them? A whole lot of private equity firms. Those are big Wall Street companies that are in the business of taking company's private and they're all circling around this company, various groups. So that is in play.

And we want to talk about the markets, of course. Last week, another banner one for investors. You can see here, the Dow is up, that would be about 87 points. The Nasdaq up and the S&P as well. With the Dow set a record every single day last week except Friday when the market came down.

However, it could be a rocky road ahead. The Japanese market down over 2 percent this morning and the futures are off as well. At some point we're going to have a little bit of a pullback here and it could be now.

M. O'BRIEN: It could be today.

SERWER: How about that for a prediction?

S. O'BRIEN: Couching it heavily.

SERWER: Exactly, Soledad.

S. O'BRIEN: Andy, thank you.

M. O'BRIEN: A little Monday here.

S. O'BRIEN: Did you guys see a movie this weekend?

SERWER: Did not.

S. O'BRIEN: Any of the scary Halloween movies? No?

SERWER: No.

M. O'BRIEN: No.

S. O'BRIEN: Well, "Saw III," which I didn't realize that it was the trilogy. You know, the . . .

SERWER: The third one.

S. O'BRIEN: The third part.

SERWER: Yes.

S. O'BRIEN: I missed "Saw I" and "Saw II."

M. O'BRIEN: Because two was not good enough.

SERWER: You can rent them. S. O'BRIEN: Did anybody see "Saw I" and "Saw II"?

SERWER: Oh, yes.

S. O'BRIEN: Anybody? Anybody? No. Nobody here. Anyway, it came in on top.

M. O'BRIEN: Did you see "Saw"?

S. O'BRIEN: Oh, you're funny.

$34 million in its debut weekend.

SERWER: The timing is right.

S. O'BRIEN: It is the best opening for the franchise. That means definitely a "Saw IV" at some point. "The Departed" came in second place, earning just under $10 million. "The Prestige" came in third. "Flags of Our Fathers," "Open Season" round out the fourth and fifth on the list.

M. O'BRIEN: Why does the girl always go alone into the room? Why don't they just stop that and then we wouldn't have to see these movies anymore?

S. O'BRIEN: Don't do it. Don't do it.

SERWER: It would ruin the plot for one thing.

S. O'BRIEN: Don't answer the door.

M. O'BRIEN: OK, thanks.

Top stories we're following for you right now.

That deadly wildfire in southern California is now 85 percent contained.

And Cuban President Fidel Castro says he's recovering well from surgery and that his enemies prematurely declared his demise. We'll have more on that in a moment.

(COMMERCIAL BREAK)

M. O'BRIEN: Relief could be just hours away for firefighters trying to contain that wildfire in southern California.

S. O'BRIEN: And eight days until the midterm elections. We'll take a look at some of the tightest races across the country today.

M. O'BRIEN: And a deadly new milestone in Iraq. A hundred American troops killed there this month alone.

S. O'BRIEN: Welcome back, everybody. It is Monday, October 30th. 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 with that massive wildfire in southern California. It is now 85 percent contained. The toll, though, has been deadly. Four firefighters killed, one in critical condition, 34 homes, 20 other buildings destroyed. And now there is a half million dollar reward out for an arsonist. CNN's Chris Wolfe is live for us in Beaumont, California, this morning.

Chris, good morning.

CHRIS WOLFE, CNN CORRESPONDENT: Good morning, Soledad.

Certainly authorities involved in this investigation hope that that half million dollar reward will help bring in some solid information. We're at the fire command center about 90 miles east of Los Angeles this morning and officials have started to send a lot of crew members home as they're winding down this operation. Authorities say that if all goes as planned, they hope to have the flames fully contained by this evening.

(BEGIN VIDEOTAPE)

WOLFE, (voice over): As of Sunday night, some 2,000 southern California firefighters were winning the battle against the Esperanza wildfire.

ROBIN PRINCE, CALIFORNIA DEPARTMENT OF FORESTRY FIRE PROTECTION: Firefighters have a job to do and they know that protecting the life and property is their most important goal. And they have made good progress.

WOLFE: But not before the wildfire burned through more than 40,000 acres and took the lives of four firefighters and left a fifth in critical condition.

GOV. ARNOLD SCHWARZENEGGER, CALIFORNIA: Each one of these firefighters did the fighting here, these fires, are true heroes. These are true heroes because these are all people that are risking their own lives to save other people's lives.

WOLFE: Officials declared the fire arson. They've said the person or persons who intentionally set it will be charged with murder. A $500,000 reward is being offered for information leading to an arrest and conviction.

Meanwhile, evacuations are still in effect for two communities. Although optimistic the worst is over, people here are nervously eying the wind direction.

ROBIN PRINCE, CALIFORNIA DEPT. OF FORESTRY FIRE PROTECTION: The only thing that might become a problem if we have changes, significant changes in the winds, and they are not predicting any -- any more Santa Ana winds for the near future.

(END VIDEOTAPE) WOLFE: Local, state and federal agencies, including the FBI, are now involved in this arson and murder investigation. Authorities say so far they've received hundreds of tips.

Reporting live in Beaumont, California, I'm Chris Wolfe.

Soledad, back to you.

S. O'BRIEN: All right, Chris. Thanks for the update -- Miles.

M. O'BRIEN: Happening this morning in Iraq, a sad milestone for the U.S. military. One hundred American service members killed in combat there just this month. The death toll reaching triple digits yesterday when a Marine was killed in the Anbar province. It's been more than a year since this many U.S. troops died in a single month there.

In Pakistan, at least 80 are dead after a military raid on a religious school. Government officials say the building was anything but a typical school. They claim it was a training camp for al Qaeda militants and that the people killed were terrorists. Local residents insist many of the victims were innocent civilians.

In New York City, the Board of Health holds its first public hearing today on a plan to ban restaurants from serving food containing artificial trans fats. It would require restaurants to get the artery-clogging substance out of foods like French fries. Such a ban would be the first for a U.S. city.

Brazil's president, Luis Inacio Lula da Silva, brushed aside corruption charges and won re-election in a landslide. The leftist former union leader cruised to a runoff victory with 61 percent of the vote. Mr. Lula draws strong support from the poor millions lifted out of poverty by his social programs. He says they will remain a priority.

S. O'BRIEN: Eight days left before Election Day and after weekend campaign stops President Bush is back on the road today. He's got stops in Georgia and Texas. He's got rallies at Georgia Southern University, and in former House majority leader Tom DeLay's district as well.

Well, you know the old axiom says, "It's the economy, stupid." But polls indicate that it's the war in Iraq that's more important to voters this year -- stupid. And that means that some Democrats could get support from Republican voters.

More now from CNN Senior Correspondent Allan Chernoff.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN SR. CORRESPONDENT (voice over): Money manager Jim Awad is a proud Republican, and there's proof in his wallet, and his office, where he displays a framed letter from Ronald Reagan. But the war in Iraq, Awad says, has him disillusioned with his party, and especially its leader, President Bush. JIM AWAD, AWAD ASSET MANAGEMENT: In many ways, he has embarrassed us as a nation.

CHERNOFF (on camera): Embarrassed us?

AWAD: Embarrassed us as a nation, because we went into a war that did not necessarily need to be fought. My personal opinion is I think he's done the country damage that could take a century to repair.

CHERNOFF (voice over): Awad says he wants the Democrats to rein in the Republican administration. So for the first time, he says, he's voting for a Democrat for Senate -- Hillary Clinton.

AWAD: I want Hillary so that she can stand up to the Republicans. And I would like to see the Democrats control Congress. I like to see what they would do.

CHERNOFF: Awad is voting Democrat, even though his business, managing over a billion dollars in investment funds, has been thriving under the Republicans.

(on camera): Usually when the economy is healthy, as it is now, and stocks are rising, many people vote their pocketbooks for the party in power. But this year, some Republicans like Jim Awad are saying, there's something more important than the economy: the war in Iraq.

(voice over): A CNN poll conducted by Opinion Research Corporation found 42 percent of Republicans said Iraq is extremely important to their vote. Only 29 percent cited the economy. And most interesting, 13 percent of Republicans said they plan to vote for Democrats, which would more than double the crossover vote of 2004. That could make the difference in tight races.

In nearby Connecticut, some registered Republicans say they'll vote against Republican congressman Chris Shays, a supporter of the war, in favor of his antiwar Democratic challenger, Diane Farrell.

UNIDENTIFIED MALE: Well, I'm a registered Republican, but I'm going to be voting Democrat this time around.

CHERNOFF: If the U.S. keeps troops in Iraq, as the president has pledged, the war could also be a decisive issue two years from now, in the next presidential election.

(on camera): Would you vote for Hillary for president?

UNIDENTIFIED MALE: Yes. I think so.

CHERNOFF (voice over): Allan Chernoff, CNN, New York.

(END VIDEOTAPE)

S. O'BRIEN: Much more election coverage ahead this morning. What happens if the Democrats take control of Congress? Bipartisanship or more gridlock? We'll take a closer look this morning.

And that deadly plane crash in Nigeria. Why did that plane go down? That's ahead.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Welcome back. Taking a look at some of the feeds we're tracking for you this morning.

Take a look at incoming 86. That's Montgomery County, Pennsylvania, about 40 miles outside Philadelphia.

That's a two-alarm fire at an assisted living center. No reports of injuries. We're watching that one for you.

Go right next door, incoming 12, that's Baghdad. Live picture. That's what we call the back hall in the business.

We're going to see Arwa Damon there in just a little bit. She's going to tell us about this latest bombing in a marketplace -- 26 killed, 60 injured. A bomb in a plastic bag.

Take a look at Philadelphia this morning. Beautiful morning. That's standard time.

I assume you've set your clocks by now. The sun rising a little bit earlier this morning because of standard time.

The temperature there today, right now a high of 64 degrees. Clear skies, as you can see in the City of Brotherly Love.

Just some of what we're watching for you this morning -- Soledad.

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

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN CORRESPONDENT: I'm Arwa Damon in Baghdad.

The chief defense attorney for Saddam Hussein, Khalil Dulaimi, writing a letter to U.S. President George W. Bush. In it, saying that if Saddam Hussein receives a death sentence in the Dujail trial, violence will only increase across this country. Also, accusing the U.S. administration of deliberately manipulating verdict day for Dujail, now expected to be on November 5th, so that it comes just two days before the U.S. midterm elections.

Meanwhile, the former Iraqi president himself, Saddam Hussein, also drafting a letter. His addressing the chief judge for the Dujail trial, making the same allegations and reiterating that the chief judge should not allow his court to be a pawn in domestic U.S. politics.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

JEFF KOINANGE, CNN AFRICA CORRESPONDENT: Yet another tragic plane crash in Nigeria's notoriously unfriendly skies. But this time, there are survivors, seven of them, out of the 104 passengers aboard the Boeing 737 that crashed one minute after takeoff from Nigeria's capital, Abuja. Among the dead, the man considered the spiritual head of Nigeria's 17 million Muslims, the sultan of Sokoto.

This is the third such tragic incident in Nigeria in the past 12 months alone.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

MORGAN NEILL, CNN CORRESPONDENT: I'm Morgan Neill in Havana, where President Fidel Castro has been seen for the first time in six weeks. New video shows the ailing leader walking on his own and mocking rumors of his death. Even he warns his recovery will be slow and risky.

(END VIDEOTAPE)

S. O'BRIEN: For more on these or any of our top stories, log on to our Web site at CNN.com.

And a quick update on that Nigerian plane crash story. There are nine survivors now in that crash -- Miles.

M. O'BRIEN: It's about 40 minutes past the hour. Heading out the door? Chad Myers has some words for you.

Hello, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Miles.

(WEATHER REPORT)

M. O'BRIEN: Stories we're following for you right now.

Police in Mexico storm the city of Oaxaca. It was seized by anti-government protesters.

And eight days to go until the midterm elections. Would a Democratic Congress mean bipartisanship or more gridlock?

We'll take a look ahead.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: And look at -- look at this. This is the prettiest garden. And nobody had anything to do with planting it. CAROL COSTELLO, CNN CORRESPONDENT: Looking for beautiful scenery, simplicity, solitude and a good sweat? Go hiking. More and more people are getting out of the gym. Fallon Holloway recently got hooked on hiking and says anyone can do it.

FALLON HOLLOWAY, HIKER: Well, I love hiking. It gets my heart going, and I just feel better after I do it. It feels like my blood is flowing right.

COSTELLO: National park ranger Jerry Hightower says being close to nature is healing.

JERRY HIGHTOWER, NATIONAL PARK RANGER: It sort of puts your life in perspective and helps reduce that stress. So it makes you a more productive individual, and that, in turn, helps you be more healthy in terms of your physical health, as well.

COSTELLO: And he says corporations are even building their own trails into parks to help their employees reduce stress.

Carol Costello, CNN.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

M. O'BRIEN: Eight days. Did we tell you eight days until the midterm election? And a lot of people already looking two years hence to the presidential sweepstakes of 2008. And today a surprise candidate appears ready to toss his hat into the ring.

Joining us from Washington, as he does this time each Monday, John Mercurio, who is the senior editor of "The National Journal's Hotline."

John, good to have you back.

JOHN MERCURIO, SR. EDITOR, "HOTLINE": Good morning. I'm not tossing my hat into any ring.

M. O'BRIEN: You know what? There's still time. There is still time.

Duncan Hunter, 26 years in Congress, he's head of the Armed Services Committee, one of the leading members on the Republican side of the aisle in Congress. Apparently, all signs indicate he's going to make a run for the presidency.

What do you think of that one?

MERCURIO: You know, he would really start out as a decided serious underdog. I don't think there's anybody in Washington or around the country clamoring for Congressman Duncan Hunter to get into this race. He doesn't have any real name I.D. around the country. He doesn't have, you know, a national fund-raising network. On the other hand, I think what he's probably doing at this point, he's been a champion. He's been on top of the issue on the war in Iraq. He's a strong supporter of the war, of the Bush administration's policy. He's also been a big supporter of the issue -- he's been a big proponent on the issue of immigration reform, of a bill that the president signed recently building a fence along the southern border, along Mexico.

So I think these are issues that he wants to advance and he wants the country to be talking about during this presidential campaign. I think what he's trying to do is have -- have some sort of impact on that debate.

M. O'BRIEN: I guess the question is, if he runs will he let CNN cover it?

MERCURIO: That's a very good question.

M. O'BRIEN: He's got some issues with some of the stories we've done.

MERCURIO: That's exactly right.

M. O'BRIEN: All right, let's talk about the president. The president doing some old-fashioned campaigning. It seems like he's starting this a little late in the game.

What's going on with that?

MERCURIO: Well, no. I mean, he's been campaigning for several months. He's been appearing, you know, privately at a lot of fund- raisers around the country for -- for...

M. O'BRIEN: But more traditional -- more of the traditional kind of campaigning is what I'm talking about.

MERCURIO: More of the stump kind of campaigning.

M. O'BRIEN: Yes.

MERCURIO: Yes. No, I think -- look, this both helps -- this both helps and hurts Republican candidates this year. He's not popular around the country, even in traditionally red states like Georgia and Texas, which is where he's traveling today.

He has to be very careful about where he travels and where he campaigns, because it's a double-edged sword. He motivates his Republican conservative base. He helps his candidates raise money. But he also motivates the liberal Democratic base and a lot of Independents.

And I think he helps Democrats remind the voters in those districts and states that the candidate that they're running against, the Republican, is tied to the president. And that's not a good thing this year.

M. O'BRIEN: It cuts both ways again.

So let's talk about New Jersey now. Interesting Senate race there. And this one kind of goes against the grain of this year, doesn't it, a little bit?

MERCURIO: A little bit. You know, Bob Menendez has never been elected senator. He was just appointed by Jon Corzine after Corzine won the governor's race last year.

It's historically very, very difficult for appointed senators to then go on and win re-election. We saw Jean Carnahan in 2002 lose her seat, the seat of her -- of her late husband.

Look, in any other year, I think Tom Kean, the Republican candidate in this race, would probably win. He's a very, very good candidate. The Republicans last week dumped about $3.5 million into this -- into this race. It's a very, very expensive media market. You need money like that that Kean didn't have.

But ultimately, I think New Jersey tends to break Democratic. The voters there tend to remain undecided until the very end, and then go and vote for the Democrat. They did in the 2000 presidential, the 2004 presidential, both recent gubernatorial races, '01 and '05.

I ultimately think you see those trends already starting to happen in favor of Menendez. I think he's ultimately able to pull it out.

M. O'BRIEN: All right.

MERCURIO: But we'll see.

M. O'BRIEN: All right.

I got a lot of e-mails over the weekend from the grassy knoll set, and they're saying essentially that somehow the White House is going to try to engineer it so that the verdict on the Saddam Hussein trial will occur on the eve of the election, or the Sunday before, and perhaps tilt the election one way or another.

Taking aside the conspiracy theory component of this...

MERCURIO: Right.

M. O'BRIEN: ... if there was that kind of news a couple of days before the election, would it change the numbers, you think?

MERCURIO: Oh, I think it could have a significant impact on the election, on the American election, absolutely. Look, this would help -- this would lend relatively credible and concrete evidence to the Bush administration and to the Republican argument that there is progress in Iraq.

I think around the country it's sort of a unanimous -- there's a unanimous -- or unanimous decision on the part of the American voters that Saddam Hussein deserves to be convicted and found guilty. So I think if he is on the eve of the election, Republicans will be able to say, look, we're making progress, stay with us -- not stay the course, but stay with us in Iraq, and we'll see further progress in the years ahead.

On the other hand, there will be an uptick in violence. But I think Americans at this point are a little bit inured to the violence, unfortunately, going on in Iraq.

M. O'BRIEN: John Mercurio, we'll stay the course with you every Monday at this time.

MERCURIO: Thank you, Miles.

M. O'BRIEN: Appreciate it.

M. O'BRIEN: Soledad.

S. O'BRIEN: Stories we're working on for you this morning. "The New York Times" reporting that that U.S. soldier missing in Iraq may have been secretly married to an Iraqi woman, breaking U.S. military rules.

And Wal-Mart cuts ties with the man behind a controversial political ad in Tennessee.

Andy Serwer is "Minding Your Business" straight ahead.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back. Some of the stories we're following for you this morning.

One hundred U.S. troops have now been killed in Iraq this month alone. That's the largest number in a month since January 2005.

And a new report shows big-time mismanagement by the U.S. military in Iraq. Thousands of weapons bought for Iraqi security forces have just gone missing -- Miles.

M. O'BRIEN: Well, that -- you know that critical ad that we've been showing you so much about that took aim at Harold Ford in Tennessee.

S. O'BRIEN: A Bob Corker ad.

M. O'BRIEN: Yes, the Bob Corker ad. And it has a Wal-Mart link.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Right.

M. O'BRIEN: And the Wal-Mart person now maybe thinks that wasn't such a great idea.

Andy Serwer is here to explain the tangled web. SERWER: Yes. Right. And we were covering the story all last week, and we told you that there was a connection between Wal-Mart and the Republican strategist who helped create the ad.

Wal-Mart had hired the strategist, Terry Nelson (ph), along with a Democratic strategist, to help get out the vote amongst its employees. They had a bipartisan effort.

However, once they found out that Terry Nelson (ph) was the person responsible for this ad that mocked Harold Ford, well, some storm clouds started to gather, and Reverend Jesse Jackson and union leaders said that Wal-Mart needed to get rid of this guy. And at first Wal-Mart said, well, it's really...

S. O'BRIEN: Apples and oranges.

SERWER: Yes. It has nothing to do with us. There's no connection, was actually the wordage.

M. O'BRIEN: Right.

SERWER: But after thinking about it over the weekend, Wal-Mart changed its mind, and has dismissed this gentleman from any business with the company.

And actually, you know, besides the Jesse Jackson and people being concerned about the ad, in that sense, there was also a concern from the Canadians. Did you know about that?

The ad mocked Canada, because it said, "We don't have to take care of North Korea. Let the Canadians do that."

M. O'BRIEN: They've got time.

SERWER: They have plenty of time on their hands.

M. O'BRIEN: Yes, they've got time -- yes.

SERWER: Well, it turns out that the Canadian ambassador to the United States called the White House and said, you know, thank you very much for that, because, you know, we do have troops in Afghanistan.

M. O'BRIEN: Right.

SERWER: So we don't like that ad, either.

S. O'BRIEN: Well, Bob Corker himself said it's not a very senatorial ad, and he didn't particularly like it.

M. O'BRIEN: He disavowed it.

(CROSSTALK)

M. O'BRIEN: But it still runs. And pretty soon we'll be hearing from the Playboy bunnies. You know, the "call me" girl. They're upset about it.

SERWER: Right.

Another story we want to tell you about, companies that will do well if Democrats win, or if the Republicans win. And it's interesting. Wall Street strategists are sort of lining their ducks up here.

Some names that may fare well if the Democrats take the election, Fannie Mae and Freddie Mac -- these are the home mortgage companies -- because Democrats oppose stricter regulations. Generic drug makers, because the Democrats might lower the boom on prescription drug makers. Ethanol companies, and strangely enough even perhaps defense contractors, because the Democrats want to show that they're strong on defense.

You can see you can go kind of counterintuitive there.

M. O'BRIEN: So people are buying right now on this supposition?

SERWER: They are maybe on the margin. And then there's a couple companies that would do well perhaps if Republicans maintain control of the House. Wal-Mart, because Democrats have threatened to raise the minimum wage, and ExxonMobil because they threatened to go after the company because of its high profits.

So just interesting grist there on Wall Street.

S. O'BRIEN: Eight days and counting. We'll know soon, won't we?

SERWER: That's right.

M. O'BRIEN: What's next?

SERWER: Next we're going to be talking about a much more serious topic, Miles, sexy Halloween costumes.

Because that's coming, too, Soledad, right? Before the election.

M. O'BRIEN: There is no story.

S. O'BRIEN: Thank goodness for covering it right here.

M. O'BRIEN: That doesn't come under the Andy Serwer business tent.

SERWER: Business...

S. O'BRIEN: Right here on AMERICAN MORNING for you.

SERWER: Yes.

S. O'BRIEN: Thank you, Andy.

SERWER: Thanks, Soledad.

S. O'BRIEN: Here's a quick look at some of the stories -- the top stories on CNN.com this morning.

(BEGIN VIDEOTAPE)

S. O'BRIEN (voice over): From Maryland to Maine, thousands without power this morning because of strong winds. Two deaths so far because of more than 50-mile-an-hour gusts.

UNIDENTIFIED MALE: It's a huge crash.

S. O'BRIEN: A crane was tossed on its side in Portland, Maine. The wrecking ball barely missed a car.

UNIDENTIFIED MALE: We had no injuries. The crane did strike three buildings, but everyone was safe.

S. O'BRIEN: (INAUDIBLE) Halloween costume parties this year. You're also not allowed to put up Halloween decorations that might attract children. Violators will go back to jail. New York is issuing similar restrictions.

And it's clear from this weekend's box office that America is in the mood for Halloween. "Saw III" was the big money maker, earning $34.3 million in its debut weekend. "The Departed" came in second. "The Prestige" was third.

For more on these stories, log on to our Web site at CNN.com.

The next hour of AMERICAN MORNING begins right now.

(END VIDEOTAPE)

M. O'BRIEN: The cost of war in Iraq. We learned overnight 100 sailors, soldiers and Marines have died this month. It's the fourth deadliest month since the war began.

S. O'BRIEN: Eight days and counting until the midterm elections. Today President Bush is hoping to get Republicans to the polls by talking about taxes and terrorism.

M. O'BRIEN: And another plane crash in Nigeria. Ninety-six die, nine survive. Moments ago the aviation minister blasted the pilot for flying straight into a storm.

S. O'BRIEN: Good morning. Welcome back, everybody. It is Monday, October 30th.

I'm Soledad O'Brien.

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