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CNN Live At Daybreak

Candidates Set to face-off in Third and Final Debate Tonight

Aired October 13, 2004 - 05:00   ET

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


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


CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, setting up the arena at Arizona State University in Tempe. It's the site of tonight's third and final presidential debate. George Bush says he'll point out major differences with John Kerry. Kerry's aides say he won the previous debates and they expect an encore.

In Iraq, another deadly attack on U.S. soldiers. A military statement says three soldiers are dead after a roadside bomb went off in eastern Baghdad.

Is it cruel to put teenaged killers to death? That's the question the Supreme Court will start weighing today. Nineteen states allow the death penalty for 16 and 17 year olds.

Time to switch the crews on the international space station. A NASA astronaut and a Russian cosmonaut are set to blast off in a Russian rocket tonight. They'll relieve the current space station crew after a week long hand over.

To the forecast center now and Chad.

CHAD MYERS, CNN METEOROLOGIST: Carol.

COSTELLO: Did you see the game?

MYERS: I did not, actually. But all the Yankee fans up herein the office are yelling "Sweep! Sweep! Sweep! Sweep!"

COSTELLO: That's so sad.

MYERS: I think they were smoking something early this morning, actually, though. I think Boston Red Sox fans will have something to say about that.

Good morning.

(WEATHER REPORT)

COSTELLO: Less than three weeks to go until the election. With 20 days left, George Bush and John Kerry are gearing up for their showdown tonight. Kerry's camp says he has the edge going into the final presidential debate. The Democratic challenger has been taking a low profile ahead of the match, but his running mate has not. Here's our senior political correspondent Candy Crowley.

(BEGIN VIDEO TAPE)

CANDY CROWLEY, CNN CORRESPONDENT: (voice-over): John Kerry opted for another laid back, pre-debate down day in New Mexico amid great expectations inside the campaign.

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: One of the reasons he's going to win is because George Bush is out of touch.

CROWLEY: Kerry's strategists believe they occupy the cat bird seat, moving up in the polls, about to face the president in a forum the president does not excel in, discussing issues the senator believes favor him.

SEN. JOHN KERRY (D-MA) PRESIDENTIAL CANDIDATE: For the last four years, one man has stood between America and lower cost prescription drugs -- George Bush. As president, I'll fight to allow Americans to import lower cost prescription drugs from Canada.

CROWLEY: In advance of Wednesday's debate on domestic issues, the Kerry campaign has been softening up the competition, taking practice swings on prescription drugs, energy costs and stem cell research. The issue was re-elevated into the headlines with Sunday's death of Christopher Reeve, a personal tragedy mixing uneasily with national politics.

EDWARDS: If we do the work that we can do in this country, the work that we will do when John Kerry is president, people like Christopher Reeve are going to walk, get up out of that wheelchair and walk again.

CROWLEY: Kerry's strategists say only the far right would find anything offensive about Edwards' words. But some Democrats outside the campaign say Kerry and Company need to be careful how they use the Reeve name.

Kerry was scheduled to spend the debate eve in the Phoenix area, but when the sun came out in New Mexico, he changed his plans.

(on camera): Political junkies might assume the senator opted to stay in New Mexico because he has a better chance there than he does here in Arizona and wanted some more free TV time. On the other hand, maybe it's simpler than that. His staff said the senator simply doesn't want to be in the air when the Red Sox are playing.

Candy Crowley, CNN, Scottsdale, Arizona.

(END VIDEO TAPE)

COSTELLO: Tax and spend liberal -- that's how George Bush has been painting John Kerry ahead of tonight's debate.

Our senior White House correspondent John King is with the president. (BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: The president!

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): In Colorado Springs, three weeks to election day, testing themes for a final debate dedicated to domestic issues.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Much as he's tried to obscure it, on issue after issue, my opponent has showed why he earned his ranking as the most liberal member of the United States Senate.

KING: Hours later, in Arizona, Mr. Bush said he is eager to use the last giant audience of the campaign to draw sharp philosophical contrasts and paint Senator Kerry as a big spender who would have to raise taxes to pay for all his promises.

G. BUSH: You're not going to have fiscal sanity if John Kerry is the president.

KING: Mr. Bush mocked Senator Kerry's claim in the last debate that his health care plan would not give the government more control.

G. BUSH: I could barely contain myself. Of course the government has something to do with his plan. It's the cornerstone of his plan. It's the crux of his health care policy, to expand the federal government.

KING: In the latest CNN-"USA Today"-Gallup poll, Senator Kerry has a giant edge on health care. The economy is more of a tossup, and the president has a slight edge on taxes.

JAMES THURBER, POLITICAL ANALYST: Bush is especially vulnerable in the battleground states on the economy. The economy is the number one issue in the polls, not Iraq, not homeland security. The states that are in play are states that have high unemployment.

KING: Polls judged Senator Kerry the winner of the first two debates. Republicans say a closer look at the electoral map still suggests a slight Bush advantage, but concede the president needs a strong showing Wednesday night.

JON MCHENRY, REPUBLICAN STRATEGIST: Does he have some work to do to sort of seal the deal and win on November 2? Sure. The same could be said for Senator Kerry. All things considered, I don't know that you'd say either one has much of an advantage at this point.

KING (on camera): It may seem a bit odd after some 45 months in office, but one reason the Bush team says Senator Kerry enjoys an advantage on health care and some other domestic issues is that because of all the focus on war and terrorism, voters don't know much about the president's proposals and that. In that regard, these aides say, the debate can only help.

John King, CNN, Scottsdale, Arizona. (END VIDEO TAPE)

COSTELLO: Bush and Kerry certainly have been talking. But are you listening? That takes us to our DAYBREAK E-Mail Question of the Morning. What do you want to hear from the candidates tonight? Drop us a line at daybreak@cnn.com. That's daybreak@cnn.com.

And, of course, CNN will bring you the third and final presidential debate live from Tempe, Arizona. Our coverage begins tonight at 7:00 p.m. Eastern.

As both campaigns sharpen their attacks, First Lady Laura Bush is taking a more diplomatic view. She tells our Larry King that negative campaigning is just part of the job.

(BEGIN VIDEO CLIP)

LARRY KING, HOST: ... had campaigns in Texas.

LAURA BUSH, FIRST LADY OF THE UNITED STATES: I think we think every campaign is very negative. You know, the -- I mean I think that's just a fact of life in politics. And you know it is when you get -- when you throw your hat in the ring, that that's what it's going to be like, especially for this big job, president of the United States. But really for any political race. I mean ask anybody who runs for school board or, you know, there's a part of a political race, the competitive part, that is always a little bit nasty. And that's just the way it is. That's just the competition.

(END VIDEO CLIP)

COSTELLO: The first lady also has some plans if her husband wins a second term. She says she would like to spend it helping teenagers who have drug and alcohol problems.

The race for the White House has at least one U.S. senator deeply concerned about security in the nation's capital. Democrat Mark Dayton of Minnesota closed his Capitol Hill office, saying he fears a possible terrorist attack.

(BEGIN VIDEO CLIP)

SEN. MARK DAYTON (D), MINNESOTA: Recently, the Senate majority leader, Bill Frist, presented us with a top secret intelligence report on our national security. Obviously, that document's top secret classification prevents me from discussing its contents. However, based upon that information, I've decided to close my office in the Russell Senate Office Building until after the upcoming election.

(END VIDEO CLIP)

COSTELLO: A Department of Homeland Security spokesman says there are no recommendations that members of Congress close their offices and there is no specific threat to the capital.

Turning now to another closely watched political race, this one in Illinois. At stake, a U.S. Senate seat. Democrat Barrack Obama and Republican Alan Keyes have had their first face-to-face debate. The two butted heads over America's military presence in the world.

(BEGIN VIDEO CLIP)

BARACK OBAMA, (D), U.S. SENATE CANDIDATE: I think that this administration has not been very good at what's been called the exercise of soft power. You know, all of us recognize and reserve the right of the United States to exercise its military power in the national interests and for our national security. But we also have to recognize that a lot of our power comes from our ideals.

ALAN KEYES (R), U.S. SENATE CANDIDATE: You cannot give a soft response to a hard threat. It would be kind of like trying to meet a bayonet with a spaghetti noodle. And it's not going to help the people of this country to survive. After 9/11, we were faced with a hard threat. We had lost thousands of people and we had to move aggressively.

(END VIDEO CLIP)

COSTELLO: Obama and Keyes plan to debate two more times.

New information this morning on U.S. casualties coming out of Iraq. That tops our "Situation Report." Three American soldiers have been killed in a roadside bombing in Baghdad. The military says an explosive device went off as their convoy passed. That brings the total number of troops killed in Iraq to 1,083.

In the northern part of the country, investigators have uncovered more than 100 bodies in a mass grave. The victims are believed to be Kurds killed during Saddam Hussein's crackdown in 1987 and '88. As many as 2,000 to 3,000 people are believed to be buried at that site.

An Iraq Shiite cleric is urging his people -- the top Shiite cleric, I should say -- he's urging his people to register to vote in the January elections. The Grand Ayatollah al-Sistani has been demanding elections since the start of the U.S. occupation.

Iraq's interim government is pleading for money at an international donors conference. The 55 nation gathering opened today in Tokyo.

So let's head their live now with Atika Shubert.

She's in Japan this morning -- good morning.

ATIKA SHUBERT, CNN CORRESPONDENT: Good morning, Carol.

I'm at the conference venue where a press conference will be held shortly. But this morning, the conference began with an appeal by Iraq's deputy prime minister for international donors to honor their pledges. You probably know that money has only been trickling in to Baghdad recently.

Now, U.S. Deputy Secretary of State Richard Armitage was also there at the conference today. In his speech, he explained why the U.S. government wants to shift $3.4 billion from reconstruction toward security and oil production.

Here's what he said.

(BEGIN VIDEO CLIP)

RICHARD ARMITAGE, DEPUTY SECRETARY OF STATE: The first priority of the Iraqi interim government is to secure the country so that other reconstruction efforts can succeed. Ultimately, though, the security situation will only see lasting improvement when Iraq assumes responsibility for self-defense. That is the primary reason why the United States is shifting our focus to the training and equipping of Iraqi security forces at this time.

(END VIDEO CLIP)

SHUBERT: Now, that leaves a gap in money designated for reconstruction efforts. Both Armitage and Iraq's deputy prime minister called for international donors to commit more money to make up for that gap. We'll have to see if donors are convinced during this conference.

COSTELLO: Atika Shubert live from Tokyo, Japan this morning.

Thank you.

In News Across America this Wednesday morning, the first lawsuit has now been filed over a fatal tour bus crash in al Qaeda. The $50,000 lawsuit was filed by the husband of one of the victims. The suit alleges negligence. Fourteen people, including the bus driver, were killed in Saturday's crash. The cause of the accident still under investigation.

The Scott Peterson trial is on hold until Monday. It's believed that prosecutors asked for the delay after seeing the defense's witness list. In the meantime, the judge told jurors to plan on beginning their deliberations on November 3. We'll have more on the Peterson trial a little later.

Three inmates who escaped from a Georgia prison have been captured in Oklahoma after three days on the run. One of the three was being held for manslaughter. A fourth inmate was picked up Monday during a robbery attempt in Alabama. The four escaped after cutting a hole in a security fence.

Lava has begun to creep into the crater of Mount Saint Helens. The 1,000 degree molten rock had been building up just below the surface. Scientists say the lava flow could last weeks, months or even years. They also say an eruption is still a distinct possibility.

More election news coming up for you, including the overseas vote. How might President Bush's relationship with Israel impact his reelection bid? We'll tell you what Israeli-Americans and Palestinian-Americans have to say about that in a live report. That comes your way at the bottom of the hour.

Plus, seniors living up -- lining up, I should say, for hours for a shot at getting a flu shot. In about 30 minutes from now, we'll tell you what the government is doing to get those -- to get the vaccine to those who need it most.

And a contest that really stirs things up. It pits Laura Bush against Teresa Heinz Kerry. We'll tell you how the cookie crumbles at 55 minutes past.

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It's 5:16 Eastern.

Here's what's all new this morning.

The Supreme Court will hear arguments today on the death penalty for juveniles. The justices must decide if putting minors to death is unconstitutionally cruel. More than 70 juveniles or teenagers are on death row in the United States right now.

Mel Gibson's number one fan is under arrest. The man was arrested just a day after a judge ordered him to stay at least 100 yards away from the actor and his family. He's now in jail facing a felony stalking charge.

In money news, the CEO of Starbucks has decided to step down and that has some investors feeling a bit jittery. Stock prices dipped after Orin Smith announced he would retire next year to devote his time to philanthropy.

In culture, the Berlin Wall is being built again, but this time it's part of a temporary exhibit at the Checkpoint Charlie Museum in Germany's capital. Some former East Germans are unhappy with the reminder of their time behind the barrier. It's scheduled to be torn down again before Christmas.

In sports, the New York Yankees held on to beat the Boston Red Sox in game one of the American League championship series. The Yanks jumped out to an 8-0 lead, but they had to settle for a 10-7 victory. Game two is tonight. Mariano Rivera came back from a funeral, Chad, to...

MYERS: Yes, right.

COSTELLO: ... to pitch, to save -- what am I trying to say here? He came in to save the game, I should say, after a very emotional time, burying two members of his family. MYERS: To save the game, right. Yes, two of his family members, right. Yes, electrocution down there, so it was kind of crazy. And the word in New York is that Schilling got a shelling.

COSTELLO: Oh, he did. Six runs.

MYERS: Ooh, it was ugly.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Democratic vice presidential candidate John Edwards was on Jay Leno last night and you can bet Edwards took some jabs at President Bush.

So, let's take a look at this late night laugh, in case you missed it.

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)

JAY LENO, HOST: I know President Bush, he also runs.

EDWARDS: Yes.

LENO: Now, he says he runs five or six miles every day.

EDWARDS: Yes.

LENO: A 5K race, who would win?

EDWARDS: Well, you know, I run and I played a little football back in, when I was in school.

LENO: Sure. OK.

EDWARDS: And the president, I think, was there on those -- at those football games, too. He was, I think, on the side maybe with his pompoms.

LENO: Oh, good.

EDWARDS: You know, I don't know, can you run fast with those cheerleading outfits on?

(END VIDEO CLIP)

COSTELLO: What's out on the Web straight ahead.

Plus, a grandmother goes head to head with a killer croc. We'll tell you who came out on top.

And our e-mail Question of the Morning -- what do you want to hear from the candidates tonight? E-mail us at daybreak@cnn.com. That's daybreak@cnn.com. And you are watching DAYBREAK for a Wednesday.

(COMMERCIAL BREAK)

COSTELLO: It's time to check out our Web clicks this morning, what stories you're clicking onto on cnn.com. Pretty interesting.

MYERS: Yes. There's a help wanted sign up in Delaware.

COSTELLO: At a printing company there, in Dover, Delaware. Some employees got together, 33 of them.

MYERS: Yes?

COSTELLO: And they went in to buy a Power Ball lottery ticket and guess what?

MYERS: They won.

COSTELLO: Oh, they did, what, $214.7 million.

MYERS: That's only $2.2 million after taxes each, but I know the help wanted sign is posted.

COSTELLO: Yes, because I'd be taking a long vacation. Good for them.

MYERS: Yes, exactly. Yes.

COSTELLO: They bought $165 worth of tickets. I don't know how many...

MYERS: Nice. So that's five bucks apiece, right?

COSTELLO: Yes. Cool for them.

MYERS: Cool.

COSTELLO: The next story you're clicking onto this morning, Michael Jackson is very angry by the way he's being mocked in rapper Eminem's recently released video, "Just Lose It." And maybe you can see Eminem dressed up as Michael Jackson here. At one point, there is a group of little boys jumping behind him and he's inviting one of the little boys to come sit on his lap. And that made Michael Jackson angry.

MYERS: Yes, BET has already pulled that because the Jackson crew has asked everyone to pull that in a little bit of respect to what he's going through. And BET Entertainment has pulled it, but no one else has yet.

COSTELLO: That means MTV and VH1 still running the ad. So there you go.

And finally, you'd think this would have happened in Las Vegas, but it didn't. It happened in Crystal, Minnesota. MYERS: This is just the weirdest story. The guy calls in, someone calls in says a guy's having convulsions. The police show up. The guy jumps up and says -- he starts singing Elvis.

COSTELLO: He's dressed as Elvis...

MYERS: Viva Las Vegas!

COSTELLO: He jumps up and says viva Las Vegas and then begins singing Elvis tunes.

MYERS: To the police. In the meantime, something else was going on across town, trying to drag the police away from that. A car was being stolen by two...

COSTELLO: The blues brothers.

MYERS: Two women dressed up as the blues brothers.

COSTELLO: They're under arrest and in jail this morning.

MYERS: Yes. The -- they were drinking at the VFW, they said, and blood tests will be showing how much alcohol they had. The police said, "I would venture to say, quite a bit."

COSTELLO: Wow. A pretty good assessment by those police officers.

MYERS: The tests aren't in yet. It's all alleged.

COSTELLO: Time for our DAYBREAK "Eye-Openers" now.

Some Australian campers are lucky to be alive after a late night attack by a 14-foot crocodile. The croc dragged one man out of his tent. But listen to this, a 60-year-old grandmother came to the rescue. She actually jumped on the crocodile's back...

MYERS: What?

COSTELLO: She did, Chad. The croc let go of the man and then another camper shot it. So way to go, granny! She's going to be OK, by the way.

MYERS: Yes.

COSTELLO: She's just a little roughed up by that giant 14-foot croc.

Remember your high school yearbook picture? You hated it, right? Well, one New Hampshire student is suing over his. Blake Douglass is upset that the school board backed a decision to ban the picture he chose for the book. The picture shows Douglass with a target rifle. The school says their no tolerance policy wouldn't allow its inclusion. The boy's attorney says the NRA has agreed to help pay for the lawsuit.

That's a new one.

An early snowfall in India has some tourists pretty darned excited. The snow came down two months ahead of schedule in the hillside resort area around the Himalayas. Hotel owners say the early snow should lead to a good tourism season. Look at the fun they're having, Chad.

MYERS: Some of those skiers needed a couple of lessons, it looked like there. So maybe that early snow will help them get some lessons earlier.

COSTELLO: Hopefully so.

MYERS: My.

COSTELLO: It's hard to believe this little koala was causing his mother too much stress. The little poori (ph) had to be removed from his mother's pouch.

MYERS: Oh.

COSTELLO: Oh. The six-month-old koala cub was hand fed until he overcame dehydration and infection. But now he has become the star attraction at the Toronto Zoo in Sydney, Australia.

MYERS: Thank you for not calling him a koala bear, because he's a marsupial.

COSTELLO: That's right. I didn't even think of that, but I'm glad I didn't.

MYERS: Yes.

COSTELLO: Thanks, Chad.

MYERS: You're welcome.

COSTELLO: Here's what's all new in the next half hour of DAYBREAK.

You know the old saying, vote early and often? But in more than half the states, voters are casting ballots weeks before the election. How will that affect the outcome?

And, of course, to remind you, CNN is live in Tempe, Arizona for the final face-off between President Bush and Senator John Kerry. Wolf Blitzer and our entire election team will have our debate coverage -- Anderson Cooper, Paula Zahn, they kick off our prime time coverage tonight at 7:00 p.m. Eastern.

(COMMERCIAL BREAK)

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Aired October 13, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you.
From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, setting up the arena at Arizona State University in Tempe. It's the site of tonight's third and final presidential debate. George Bush says he'll point out major differences with John Kerry. Kerry's aides say he won the previous debates and they expect an encore.

In Iraq, another deadly attack on U.S. soldiers. A military statement says three soldiers are dead after a roadside bomb went off in eastern Baghdad.

Is it cruel to put teenaged killers to death? That's the question the Supreme Court will start weighing today. Nineteen states allow the death penalty for 16 and 17 year olds.

Time to switch the crews on the international space station. A NASA astronaut and a Russian cosmonaut are set to blast off in a Russian rocket tonight. They'll relieve the current space station crew after a week long hand over.

To the forecast center now and Chad.

CHAD MYERS, CNN METEOROLOGIST: Carol.

COSTELLO: Did you see the game?

MYERS: I did not, actually. But all the Yankee fans up herein the office are yelling "Sweep! Sweep! Sweep! Sweep!"

COSTELLO: That's so sad.

MYERS: I think they were smoking something early this morning, actually, though. I think Boston Red Sox fans will have something to say about that.

Good morning.

(WEATHER REPORT)

COSTELLO: Less than three weeks to go until the election. With 20 days left, George Bush and John Kerry are gearing up for their showdown tonight. Kerry's camp says he has the edge going into the final presidential debate. The Democratic challenger has been taking a low profile ahead of the match, but his running mate has not. Here's our senior political correspondent Candy Crowley.

(BEGIN VIDEO TAPE)

CANDY CROWLEY, CNN CORRESPONDENT: (voice-over): John Kerry opted for another laid back, pre-debate down day in New Mexico amid great expectations inside the campaign.

SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: One of the reasons he's going to win is because George Bush is out of touch.

CROWLEY: Kerry's strategists believe they occupy the cat bird seat, moving up in the polls, about to face the president in a forum the president does not excel in, discussing issues the senator believes favor him.

SEN. JOHN KERRY (D-MA) PRESIDENTIAL CANDIDATE: For the last four years, one man has stood between America and lower cost prescription drugs -- George Bush. As president, I'll fight to allow Americans to import lower cost prescription drugs from Canada.

CROWLEY: In advance of Wednesday's debate on domestic issues, the Kerry campaign has been softening up the competition, taking practice swings on prescription drugs, energy costs and stem cell research. The issue was re-elevated into the headlines with Sunday's death of Christopher Reeve, a personal tragedy mixing uneasily with national politics.

EDWARDS: If we do the work that we can do in this country, the work that we will do when John Kerry is president, people like Christopher Reeve are going to walk, get up out of that wheelchair and walk again.

CROWLEY: Kerry's strategists say only the far right would find anything offensive about Edwards' words. But some Democrats outside the campaign say Kerry and Company need to be careful how they use the Reeve name.

Kerry was scheduled to spend the debate eve in the Phoenix area, but when the sun came out in New Mexico, he changed his plans.

(on camera): Political junkies might assume the senator opted to stay in New Mexico because he has a better chance there than he does here in Arizona and wanted some more free TV time. On the other hand, maybe it's simpler than that. His staff said the senator simply doesn't want to be in the air when the Red Sox are playing.

Candy Crowley, CNN, Scottsdale, Arizona.

(END VIDEO TAPE)

COSTELLO: Tax and spend liberal -- that's how George Bush has been painting John Kerry ahead of tonight's debate.

Our senior White House correspondent John King is with the president. (BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: The president!

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): In Colorado Springs, three weeks to election day, testing themes for a final debate dedicated to domestic issues.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Much as he's tried to obscure it, on issue after issue, my opponent has showed why he earned his ranking as the most liberal member of the United States Senate.

KING: Hours later, in Arizona, Mr. Bush said he is eager to use the last giant audience of the campaign to draw sharp philosophical contrasts and paint Senator Kerry as a big spender who would have to raise taxes to pay for all his promises.

G. BUSH: You're not going to have fiscal sanity if John Kerry is the president.

KING: Mr. Bush mocked Senator Kerry's claim in the last debate that his health care plan would not give the government more control.

G. BUSH: I could barely contain myself. Of course the government has something to do with his plan. It's the cornerstone of his plan. It's the crux of his health care policy, to expand the federal government.

KING: In the latest CNN-"USA Today"-Gallup poll, Senator Kerry has a giant edge on health care. The economy is more of a tossup, and the president has a slight edge on taxes.

JAMES THURBER, POLITICAL ANALYST: Bush is especially vulnerable in the battleground states on the economy. The economy is the number one issue in the polls, not Iraq, not homeland security. The states that are in play are states that have high unemployment.

KING: Polls judged Senator Kerry the winner of the first two debates. Republicans say a closer look at the electoral map still suggests a slight Bush advantage, but concede the president needs a strong showing Wednesday night.

JON MCHENRY, REPUBLICAN STRATEGIST: Does he have some work to do to sort of seal the deal and win on November 2? Sure. The same could be said for Senator Kerry. All things considered, I don't know that you'd say either one has much of an advantage at this point.

KING (on camera): It may seem a bit odd after some 45 months in office, but one reason the Bush team says Senator Kerry enjoys an advantage on health care and some other domestic issues is that because of all the focus on war and terrorism, voters don't know much about the president's proposals and that. In that regard, these aides say, the debate can only help.

John King, CNN, Scottsdale, Arizona. (END VIDEO TAPE)

COSTELLO: Bush and Kerry certainly have been talking. But are you listening? That takes us to our DAYBREAK E-Mail Question of the Morning. What do you want to hear from the candidates tonight? Drop us a line at daybreak@cnn.com. That's daybreak@cnn.com.

And, of course, CNN will bring you the third and final presidential debate live from Tempe, Arizona. Our coverage begins tonight at 7:00 p.m. Eastern.

As both campaigns sharpen their attacks, First Lady Laura Bush is taking a more diplomatic view. She tells our Larry King that negative campaigning is just part of the job.

(BEGIN VIDEO CLIP)

LARRY KING, HOST: ... had campaigns in Texas.

LAURA BUSH, FIRST LADY OF THE UNITED STATES: I think we think every campaign is very negative. You know, the -- I mean I think that's just a fact of life in politics. And you know it is when you get -- when you throw your hat in the ring, that that's what it's going to be like, especially for this big job, president of the United States. But really for any political race. I mean ask anybody who runs for school board or, you know, there's a part of a political race, the competitive part, that is always a little bit nasty. And that's just the way it is. That's just the competition.

(END VIDEO CLIP)

COSTELLO: The first lady also has some plans if her husband wins a second term. She says she would like to spend it helping teenagers who have drug and alcohol problems.

The race for the White House has at least one U.S. senator deeply concerned about security in the nation's capital. Democrat Mark Dayton of Minnesota closed his Capitol Hill office, saying he fears a possible terrorist attack.

(BEGIN VIDEO CLIP)

SEN. MARK DAYTON (D), MINNESOTA: Recently, the Senate majority leader, Bill Frist, presented us with a top secret intelligence report on our national security. Obviously, that document's top secret classification prevents me from discussing its contents. However, based upon that information, I've decided to close my office in the Russell Senate Office Building until after the upcoming election.

(END VIDEO CLIP)

COSTELLO: A Department of Homeland Security spokesman says there are no recommendations that members of Congress close their offices and there is no specific threat to the capital.

Turning now to another closely watched political race, this one in Illinois. At stake, a U.S. Senate seat. Democrat Barrack Obama and Republican Alan Keyes have had their first face-to-face debate. The two butted heads over America's military presence in the world.

(BEGIN VIDEO CLIP)

BARACK OBAMA, (D), U.S. SENATE CANDIDATE: I think that this administration has not been very good at what's been called the exercise of soft power. You know, all of us recognize and reserve the right of the United States to exercise its military power in the national interests and for our national security. But we also have to recognize that a lot of our power comes from our ideals.

ALAN KEYES (R), U.S. SENATE CANDIDATE: You cannot give a soft response to a hard threat. It would be kind of like trying to meet a bayonet with a spaghetti noodle. And it's not going to help the people of this country to survive. After 9/11, we were faced with a hard threat. We had lost thousands of people and we had to move aggressively.

(END VIDEO CLIP)

COSTELLO: Obama and Keyes plan to debate two more times.

New information this morning on U.S. casualties coming out of Iraq. That tops our "Situation Report." Three American soldiers have been killed in a roadside bombing in Baghdad. The military says an explosive device went off as their convoy passed. That brings the total number of troops killed in Iraq to 1,083.

In the northern part of the country, investigators have uncovered more than 100 bodies in a mass grave. The victims are believed to be Kurds killed during Saddam Hussein's crackdown in 1987 and '88. As many as 2,000 to 3,000 people are believed to be buried at that site.

An Iraq Shiite cleric is urging his people -- the top Shiite cleric, I should say -- he's urging his people to register to vote in the January elections. The Grand Ayatollah al-Sistani has been demanding elections since the start of the U.S. occupation.

Iraq's interim government is pleading for money at an international donors conference. The 55 nation gathering opened today in Tokyo.

So let's head their live now with Atika Shubert.

She's in Japan this morning -- good morning.

ATIKA SHUBERT, CNN CORRESPONDENT: Good morning, Carol.

I'm at the conference venue where a press conference will be held shortly. But this morning, the conference began with an appeal by Iraq's deputy prime minister for international donors to honor their pledges. You probably know that money has only been trickling in to Baghdad recently.

Now, U.S. Deputy Secretary of State Richard Armitage was also there at the conference today. In his speech, he explained why the U.S. government wants to shift $3.4 billion from reconstruction toward security and oil production.

Here's what he said.

(BEGIN VIDEO CLIP)

RICHARD ARMITAGE, DEPUTY SECRETARY OF STATE: The first priority of the Iraqi interim government is to secure the country so that other reconstruction efforts can succeed. Ultimately, though, the security situation will only see lasting improvement when Iraq assumes responsibility for self-defense. That is the primary reason why the United States is shifting our focus to the training and equipping of Iraqi security forces at this time.

(END VIDEO CLIP)

SHUBERT: Now, that leaves a gap in money designated for reconstruction efforts. Both Armitage and Iraq's deputy prime minister called for international donors to commit more money to make up for that gap. We'll have to see if donors are convinced during this conference.

COSTELLO: Atika Shubert live from Tokyo, Japan this morning.

Thank you.

In News Across America this Wednesday morning, the first lawsuit has now been filed over a fatal tour bus crash in al Qaeda. The $50,000 lawsuit was filed by the husband of one of the victims. The suit alleges negligence. Fourteen people, including the bus driver, were killed in Saturday's crash. The cause of the accident still under investigation.

The Scott Peterson trial is on hold until Monday. It's believed that prosecutors asked for the delay after seeing the defense's witness list. In the meantime, the judge told jurors to plan on beginning their deliberations on November 3. We'll have more on the Peterson trial a little later.

Three inmates who escaped from a Georgia prison have been captured in Oklahoma after three days on the run. One of the three was being held for manslaughter. A fourth inmate was picked up Monday during a robbery attempt in Alabama. The four escaped after cutting a hole in a security fence.

Lava has begun to creep into the crater of Mount Saint Helens. The 1,000 degree molten rock had been building up just below the surface. Scientists say the lava flow could last weeks, months or even years. They also say an eruption is still a distinct possibility.

More election news coming up for you, including the overseas vote. How might President Bush's relationship with Israel impact his reelection bid? We'll tell you what Israeli-Americans and Palestinian-Americans have to say about that in a live report. That comes your way at the bottom of the hour.

Plus, seniors living up -- lining up, I should say, for hours for a shot at getting a flu shot. In about 30 minutes from now, we'll tell you what the government is doing to get those -- to get the vaccine to those who need it most.

And a contest that really stirs things up. It pits Laura Bush against Teresa Heinz Kerry. We'll tell you how the cookie crumbles at 55 minutes past.

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It's 5:16 Eastern.

Here's what's all new this morning.

The Supreme Court will hear arguments today on the death penalty for juveniles. The justices must decide if putting minors to death is unconstitutionally cruel. More than 70 juveniles or teenagers are on death row in the United States right now.

Mel Gibson's number one fan is under arrest. The man was arrested just a day after a judge ordered him to stay at least 100 yards away from the actor and his family. He's now in jail facing a felony stalking charge.

In money news, the CEO of Starbucks has decided to step down and that has some investors feeling a bit jittery. Stock prices dipped after Orin Smith announced he would retire next year to devote his time to philanthropy.

In culture, the Berlin Wall is being built again, but this time it's part of a temporary exhibit at the Checkpoint Charlie Museum in Germany's capital. Some former East Germans are unhappy with the reminder of their time behind the barrier. It's scheduled to be torn down again before Christmas.

In sports, the New York Yankees held on to beat the Boston Red Sox in game one of the American League championship series. The Yanks jumped out to an 8-0 lead, but they had to settle for a 10-7 victory. Game two is tonight. Mariano Rivera came back from a funeral, Chad, to...

MYERS: Yes, right.

COSTELLO: ... to pitch, to save -- what am I trying to say here? He came in to save the game, I should say, after a very emotional time, burying two members of his family. MYERS: To save the game, right. Yes, two of his family members, right. Yes, electrocution down there, so it was kind of crazy. And the word in New York is that Schilling got a shelling.

COSTELLO: Oh, he did. Six runs.

MYERS: Ooh, it was ugly.

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COSTELLO: Those are the latest headlines for you this morning.

Democratic vice presidential candidate John Edwards was on Jay Leno last night and you can bet Edwards took some jabs at President Bush.

So, let's take a look at this late night laugh, in case you missed it.

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)

JAY LENO, HOST: I know President Bush, he also runs.

EDWARDS: Yes.

LENO: Now, he says he runs five or six miles every day.

EDWARDS: Yes.

LENO: A 5K race, who would win?

EDWARDS: Well, you know, I run and I played a little football back in, when I was in school.

LENO: Sure. OK.

EDWARDS: And the president, I think, was there on those -- at those football games, too. He was, I think, on the side maybe with his pompoms.

LENO: Oh, good.

EDWARDS: You know, I don't know, can you run fast with those cheerleading outfits on?

(END VIDEO CLIP)

COSTELLO: What's out on the Web straight ahead.

Plus, a grandmother goes head to head with a killer croc. We'll tell you who came out on top.

And our e-mail Question of the Morning -- what do you want to hear from the candidates tonight? E-mail us at daybreak@cnn.com. That's daybreak@cnn.com. And you are watching DAYBREAK for a Wednesday.

(COMMERCIAL BREAK)

COSTELLO: It's time to check out our Web clicks this morning, what stories you're clicking onto on cnn.com. Pretty interesting.

MYERS: Yes. There's a help wanted sign up in Delaware.

COSTELLO: At a printing company there, in Dover, Delaware. Some employees got together, 33 of them.

MYERS: Yes?

COSTELLO: And they went in to buy a Power Ball lottery ticket and guess what?

MYERS: They won.

COSTELLO: Oh, they did, what, $214.7 million.

MYERS: That's only $2.2 million after taxes each, but I know the help wanted sign is posted.

COSTELLO: Yes, because I'd be taking a long vacation. Good for them.

MYERS: Yes, exactly. Yes.

COSTELLO: They bought $165 worth of tickets. I don't know how many...

MYERS: Nice. So that's five bucks apiece, right?

COSTELLO: Yes. Cool for them.

MYERS: Cool.

COSTELLO: The next story you're clicking onto this morning, Michael Jackson is very angry by the way he's being mocked in rapper Eminem's recently released video, "Just Lose It." And maybe you can see Eminem dressed up as Michael Jackson here. At one point, there is a group of little boys jumping behind him and he's inviting one of the little boys to come sit on his lap. And that made Michael Jackson angry.

MYERS: Yes, BET has already pulled that because the Jackson crew has asked everyone to pull that in a little bit of respect to what he's going through. And BET Entertainment has pulled it, but no one else has yet.

COSTELLO: That means MTV and VH1 still running the ad. So there you go.

And finally, you'd think this would have happened in Las Vegas, but it didn't. It happened in Crystal, Minnesota. MYERS: This is just the weirdest story. The guy calls in, someone calls in says a guy's having convulsions. The police show up. The guy jumps up and says -- he starts singing Elvis.

COSTELLO: He's dressed as Elvis...

MYERS: Viva Las Vegas!

COSTELLO: He jumps up and says viva Las Vegas and then begins singing Elvis tunes.

MYERS: To the police. In the meantime, something else was going on across town, trying to drag the police away from that. A car was being stolen by two...

COSTELLO: The blues brothers.

MYERS: Two women dressed up as the blues brothers.

COSTELLO: They're under arrest and in jail this morning.

MYERS: Yes. The -- they were drinking at the VFW, they said, and blood tests will be showing how much alcohol they had. The police said, "I would venture to say, quite a bit."

COSTELLO: Wow. A pretty good assessment by those police officers.

MYERS: The tests aren't in yet. It's all alleged.

COSTELLO: Time for our DAYBREAK "Eye-Openers" now.

Some Australian campers are lucky to be alive after a late night attack by a 14-foot crocodile. The croc dragged one man out of his tent. But listen to this, a 60-year-old grandmother came to the rescue. She actually jumped on the crocodile's back...

MYERS: What?

COSTELLO: She did, Chad. The croc let go of the man and then another camper shot it. So way to go, granny! She's going to be OK, by the way.

MYERS: Yes.

COSTELLO: She's just a little roughed up by that giant 14-foot croc.

Remember your high school yearbook picture? You hated it, right? Well, one New Hampshire student is suing over his. Blake Douglass is upset that the school board backed a decision to ban the picture he chose for the book. The picture shows Douglass with a target rifle. The school says their no tolerance policy wouldn't allow its inclusion. The boy's attorney says the NRA has agreed to help pay for the lawsuit.

That's a new one.

An early snowfall in India has some tourists pretty darned excited. The snow came down two months ahead of schedule in the hillside resort area around the Himalayas. Hotel owners say the early snow should lead to a good tourism season. Look at the fun they're having, Chad.

MYERS: Some of those skiers needed a couple of lessons, it looked like there. So maybe that early snow will help them get some lessons earlier.

COSTELLO: Hopefully so.

MYERS: My.

COSTELLO: It's hard to believe this little koala was causing his mother too much stress. The little poori (ph) had to be removed from his mother's pouch.

MYERS: Oh.

COSTELLO: Oh. The six-month-old koala cub was hand fed until he overcame dehydration and infection. But now he has become the star attraction at the Toronto Zoo in Sydney, Australia.

MYERS: Thank you for not calling him a koala bear, because he's a marsupial.

COSTELLO: That's right. I didn't even think of that, but I'm glad I didn't.

MYERS: Yes.

COSTELLO: Thanks, Chad.

MYERS: You're welcome.

COSTELLO: Here's what's all new in the next half hour of DAYBREAK.

You know the old saying, vote early and often? But in more than half the states, voters are casting ballots weeks before the election. How will that affect the outcome?

And, of course, to remind you, CNN is live in Tempe, Arizona for the final face-off between President Bush and Senator John Kerry. Wolf Blitzer and our entire election team will have our debate coverage -- Anderson Cooper, Paula Zahn, they kick off our prime time coverage tonight at 7:00 p.m. Eastern.

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