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Fighting Continues in Najaf; Kerry Blames Bush Administration for Soft Money Ad; Louisiana Fights Obesity; Hurricane Charley's Aftermath

Aired August 19, 2004 - 15:00   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.


FREDRICKA WHITFIELD, CNN ANCHOR: Now in the news, showdown in Najaf. CNN confirms that several explosions have been reported in Najaf, meantime we also have these exclusive pictures shot from inside the compound of the Imam Ali Mosque. High spirits are reported inside. Fighting rages outside. And we'll explore where it may all lead coming up.
There are also reports of intense fighting in Baghdad's Sadr City. The poor Shiite neighborhood is an al-Sadr stronghold, and his forces are battling U.S. troops. Iraq's Health Ministry reports eight people have been killed, 64 wounded.

Boston Mayor Thomas Menino is in the hospital with what his doctors are now saying is a mild case of Crohn's disease. It is a chronic condition that can cause periodic bouts of intense abdominal pain. The 61-year-old Menino was admitted last night and is said to be resting comfortably.

KYRA PHILLIPS, CNN ANCHOR: Chanting inside, fighting outside, threats and fears and utter devastation all around. So goes Najaf. A day after that city's fire-brand Shiite cleric seemingly changed his mind about disarming his militia and going into mainstream politics. That's if Muqtada al-Sadr ever really accepted Baghdad's demands in the first place. His message today: Martyrdom or victory.

We get the story from CNN's Matthew Chance.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): Fierce fighting continues in the streets of Najaf in clashes between the Mehdi Army, loyal to the Shiite cleric Muqtada al-Sadr and U.S. forces on the ground in the holy city. We have exclusive pictures now, as well, from a CNN producer who's managed to get inside the mosque compound, the mosque of Imam Ali, one of the holiest shrines in Shia Islam, and where hundreds of Mehdi Army supporters are holed up in resistance to the U.S. army there.

They're chanting pro-Muqtada al-Sadr slogans, vowing never to leave this, one of the holiest shrines in Shia Islam. There's also indications from inside the mosque that it's been damage to small extent.

At least two of the minarets seem have been damaged in the two weeks or so of extremely intensive fighting, that despite the efforts of the U.S. military to limit the damage and to not return fire to this sacred site for fear of sparking some kind of ferocious backlash among Iraq's majority Shia community.

The Iraqi interim government, though, seems to be losing patience at this stage with Muqtada al-Sadr.

(on camera): They've issued him an ultimatum to come out and publicly declare that he'll leave the mosque and he'll disband the Mehdi Army militia and join the mainstream political process. The fact on the ground, though, is that that, to date, has not yet happened.

And so, all sides are examining the military options available to them, the interim Iraqi government saying that they will storm the mosque, if they say it's necessary. But they say that if that order is given, it will be Iraqi troops that do that work, not U.S. forces, who will play a more backing-up kind of role.

Matthew Chance, CNN, Najaf.

(END VIDEOTAPE)

WHITFIELD: The Bush administration says the world needs to be more patient and less critical of Iraq's attempts to build a multi- ethnic democracy. In a speech today to a D.C. think tank, National Security Advisor Condoleezza Rice noted some divisions, ethnic, political, religious, go back longer than others.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, U.S. NATIONAL SECURITY ADVISOR: Some of the mistrust and suspicion felt toward the West by many in the Middle East and in the Muslim world, in fact, has some basis in reality. Relations between the Islamic world and the West began in conflict.

And for many centuries, bitter and bloody conflict, wars of religion, and then colonial wars, defined the contact that each side had with each other. And for the last six decades, America and our allies excused and accommodated the lack of freedom in the Middle East hoping, as President Bush said, to purchase stability at the price of liberty.

(END VIDEO CLIP)

WHITFIELD: Rice says the Bush administration can and must do more to encourage, in her words, moderation and tolerance in the Middle East.

A broadside in Boston today over courage in question in Vietnam. The Democratic candidate for president accused the incumbent of quietly endorsing attack ads that claimed some of John Kerry's medals were awarded under false pretenses.

CNN's Sean Callebs is following the attack then the counter- attack coming from Washington -- Sean? SEAN CALLEBS, CNN CORRESPONDENT: Indeed. Democratic presidential candidate John Kerry today saying -- blaming the Bush administration for a soft money ad that attacks his Vietnam service record.

Now speaking to a group of firefighters in Boston, Kerry denounced the ad that basically says he's lying about his military record. The ads are running under the name Swift Boat Veterans for Truth and funded, in part, by Texas Republicans and not the Bush campaign. Kerry has unveiled his own commercial which will start running in Wisconsin, Ohio and West Virginia tomorrow.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm John Kerry and I approve this message.

ANNOUNCER: The people attacking John Kerry's war record are funded by Bush's big money supporters. Listen to someone who was there, the man whose life John Kerry saved.

JIM RASSMANN, VETERAN: They blew me off the boat.

(END VIDEO CLIP)

CALLEBS: Well, today, the White House issued a statement saying the president has called Kerry's Vietnam service noble. Still, Kerry is blaming President Bush for the ads.

(BEGIN VIDEO CLIP)

KERRY: The president keeps telling people he would never question my service to our country. Instead, he watches as a Republican-funded attack group does just that. Well, if he wants to have a debate about our service in Vietnam, here is my answer: Bring it on.

(END VIDEO CLIP)

CALLEBS: Among the sailors accusing Kerry of lying about events, Larry Thurlow. Thurlow, who also received a Bronze Star that day, says Kerry's citation is totally fabricated and Thurlow says he never heard a shot.

Now, Kerry has maintained his boat came under fire after a mine explosion. Records from back of March of 1969 show Thurlow said he and other boats that day came under constant small-arms fire.

Well, today, Thurlow told CNN he didn't even know he won a Bronze Star until he was out of the Navy. And he contends it was Kerry who wrote that after-action report -- Fred?

WHITFIELD: Well, Sean, for a long time, John Kerry refrained from criticizing these ads. They've been out for a while. Now, with Thurlow's record being discredited, why did Kerry camp feel like now is a time to respond and try to associate these attacks with the Bush administration?

CALLEBS: Well, a couple of things. One, the Kerry camp had indicated that they were not going to respond until September, October, until closer to the election, in part for financial reasons, in terms of fundraising.

But now, apparently, several leading Democrats have been telling Kerry that he needed to step up to the plate, he needed to address these charges, they were very serious.

And of course, Kerry and his camp continued to point back to Senator McCain who said that this is the same kind of attack that McCain saw when he was up against Bush back in 2000.

And the White House has come out and said they would like to see none of these soft money ads run, but this is an ad that appears to be out there, a tit-for-tat. And we'll keep following, Fredricka.

WHITFIELD: And ads getting a whole lot of airtime, too. Sean Callebs, thanks very much from Washington -- Kyra?

PHILLIPS: In another news across America, Google this. The Internet giant, Google, makes its debut on the Nasdaq stock market. Shares of Google began trading at $100, higher than its initial offering price of 85 bucks. That stock is trading under the symbol GOOG.

Dry bush and grass fields is raging, or feeds are raging -- helping the wildfire to get raging in Washington State. That blaze near Dryden has grown to nearly 13,000 acres and has forced hundreds of people from their homes. One home has been destroyed, another damaged.

Oprah Winfrey gets a reality check in court. The talk show host was on a Chicago jury that convicted a man of murder yesterday. Winfrey says that the trial was a reality check and eye opener. She plans to talk about the experience on her show next week.

In the court case of a pop star, the stepfather of Michael Jackson's accuser takes the stand today in the child molestation case. His testimony concerns whether authorities violated Jackson's attorney-client privilege when they broke into the office of a private investigator hired by Jackson.

WHITFIELD: In Florida, 22 people dead, $7 billion-plus in insured property damage, a fifth of Florida's citrus crop ruined. The numbers grow more staggering everyday, making the recovery from Hurricane Charley seem even more daunting.

CNN's Sara Dorsey joins us from Lake Wales, east of Tampa -- Sara?

SARA DORSEY, CNN CORRESPONDENT: Well, Lake Wales has been lucky in the past. The sheriff's office tells us it's been about 40 years since they were hit by a hurricane, that is, until Charley showed up. This storm came in packing quite a punch across the area. You can see trees down, power lines in some places, homes in some areas are very badly damaged. And where we're located is on the outskirt of town.

The sheriff's office says some people down here don't have insurance, and for that reason, they brought in inmates from the local jails to help aid them in the cleanup. And this cleanup is going to take a while. Many people actually stayed in their homes when this happened.

Joining me is Mary Castro (ph) with her three children. And you weathered out this storm right here in your house. Tell me how that was for you all and what you were thinking when it happened?

MARY CASTRO (ph): It was scary. We watched, me and my husband, watched the trees. And when it got real bad, I threw the kids in the closet and I told them to stay there, don't move. And then we stayed in our back room until it was over with.

DORSEY: And tell me, how long did you have to even the kids in there and how are they taking everything?

CASTRO (ph): They were scared. They were screaming and crying. And we sit in there for about like, I don't know, I think it was about two hours.

DORSEY: And I know, from judging just the area around your home, there is a lot of debris down. Was your home damaged? What types of things are you experiencing now?

CASTRO (ph): Just a bunch of trees down. There's a lot of cleanup. No lights, no water.

DORSEY: It has to be awfully scary for you and your family, naturally. But at some point, you have to pick up. What is it that you all are doing now to try to move past all of this?

CASTRO (ph): Just taking it day-by-day, staying together.

DORSEY: Have you felt a lot of people coming together?

CASTRO (ph): Yes. Yes. A lot of people that a lot of don't know, the Red Cross has come and left food, water, bottles of water, ice, stuff that we need.

DORSEY: Well, thank you very much Mary Castro (ph). The best to you and your children. Mary is not alone. The power is out. Still, in many parts of Polk County, there's about 21,000 people, according to Florida Progress, who still don't have their power back on, and they say it could take until Sunday for them to restore that.

And that also means no air conditioning, and it is very hot out here, 90-plus temperatures, which makes it slow-going for the cleanup crews.

WHITFIELD: A tough road ahead for everyone. Thanks so much, Sara Dorsey -- Kyra?

PHILLIPS: An eye-opening survey for parents and grandparents about teenagers and risky behaviors.

And a fat fight, an experimental approach to treating an American epidemic. Details ahead.

All right, Fred. Hey, Boo Boo.

WHITFIELD: Hey, Boo Boo.

PHILLIPS: This bear finds a little...

WHITFIELD: ... a little picnic basket.

PHILLIPS: There you go. Thirty-six bottles of beer on the wall. Oh, yes. The rest of the story live right here on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: Explosions and gunfire in Najaf, Iraq. These pictures just in. Let's listen for a moment.

Just more evidence that the fighting rages on outside the Imam Ali Mosque there in Najaf. The defense is taking, still a violent standoff between U.S. forces and supporters of Muqtada al-Sadr. Both U.S. forces believe that the rebel cleric is holed up inside that mosque.

We've shown you the picture of a number of supporters also within the mosque area. Once again, we're continuing to follow this story as Iraqi officials have threatened, actually, at this point, to enter that mosque. U.S. forces standing strong on saying that they will not do it, due to the holy site.

Already, you've seen the destruction outside that area, but right now we're reporting multiple explosions, not sure if it's from U.S. military air strikes or not. We're continuing to work the story. But as you can see, the fighting rages on, as supporters of Muqtada al- Sadr continue go up against U.S. forces and Iraqi troops.

WHITFIELD: Well, on now to results of a stunning report, it's not just cliche anymore, sex and drugs do often go together. A survey of 1,000 teens find that friends do influence behavior. Teenage girls who associate with older boys are likely to have tried alcohol or drugs. They're also more likely to have tried marijuana or cigarettes. The survey was carried out by Columbia University.

President Bush said he's looking closely at whether to back lower price prescription from Canada and elsewhere. Mr. Bush says pressure is building on Congress to allow such imports. And he told a crowd in Wisconsin, if it is safe, it makes sense.

But he says so far, it's still unclear if such drugs are safe. On Tuesday, Illinois Governor Rod Blagojevich said he would allow residents in his state to buy prescriptions drugs from Canada, Ireland and the United Kingdom.

PHILLIPS: Twenty-six percent of Americans are considered obese. We all know obesity can lead to numerous and costly health cost problems. Now, the State of Louisiana trying an unconventional method to help a few of its overweight residents. Elizabeth Cohen reports.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN CORRESPONDENT: Jimmie Sanders is morbidly obese. On that everyone agrees.

JIMMIE SANDERS, GASTRIC BYPASS PATIENT: I hate the sight of me. I hate that I let myself get where I'm at today.

COHEN: But here's the debate: Should Sanders try to lose weight by diet and exercise, something she's failed at so far, or should she go ahead and have gastric bypass surgery, which would cost about $30,000.

So, Sanders's employer, the state of Louisiana, is trying an experiment. They're giving free gastric bypass surgery to 40 employees, including Sanders. After five years, the state will figure out which costs more, the surgery or the medical costs of being obese, the illnesses, the disability, the lost days of work.

DR. LOUIS MARTIN, LSU HEALTH SCIENCES CENTER: Our whole goal here is to, you know, have the number of medicines go down dramatically. So most of the time, 50 percent of the pills you've taken in the past, you won't take anymore.

COHEN: For Sanders, who needs to lose about a hundred pounds, the decision was pretty easy, even though the surgery can be risky. One study has found that two percent of the patients die within 30 days of surgery.

SANDERS: You could probably look in the dictionary under "diet," and my picture would be in there somewheres, I assume.

COHEN: She takes medicine for high blood pressure and high cholesterol, and her doctor told her if she doesn't lose weight, he'll have to put her on medicine for diabetes. And even though she's seen four relatives die of the disease, she still can't lose the weight.

SANDERS: I always thought I could get in control of it. And after so long and so many years, I can't. I can't do it.

COHEN: That is, of course, the point of the surgery, to force her to lose weight by making her stomach smaller. Gastric bypass has a good track record for helping people lose weight and keep it off. Whether it helps the state in the midst of an obesity epidemic save money is something they hope to figure out.

Elizabeth Cohen, CNN, Atlanta.

(END VIDEOTAPE)

WHITFIELD: Well, he has conquered the business world, television and now, Donald Trump, the Donald, is ready to play a new game with you. Details on his new venture straight ahead. PHILLIPS: And a new twist on an old question, does a party or does a bear -- I screwed it up. Does a bear party in the woods? We have the beer cans to prove it.

I was afraid of saying the bad word.

(COMMERCIAL BREAK)

WHITFIELD: Beautiful, huh? Well, can you name that tune? It's the theme from "The Magnificent Seven," just one of the many famous movie songs composed by Elmer Bernstein. Bernstein scored so many films we could never name them all. He earned an Oscar for 1967's "Thoroughly Modern Millie" and more than a dozen other Academy Award nominations. Bernstein, who was no relation to famed conductor Leonard Bernstein, by the way, died yesterday at the age of 82 in California.

PHILLIPS: Checking other entertainment headlines this Thursday, Oprah and her fellow jurors have spoken and the verdict, guilty. Oprah said afterwards the three day murder trial was the saddest experience of her life. The 27-year-old defendant faces possible life in prison when he's sentenced next month. Oprah plans to devote a show to the trial next week.

Another city, another courtroom, and a TKO for the producers of "The Contender." A judge has refused to grant the NBC reality show a temporary restraining order against Fox network's rival show, "The Next Great Champ." But there will be a rematch. In a dispute, the judge has scheduled a December 8th hearing in the ongoing scuffle over fighting rights.

Continuing his full-frontal assault on American pop culture, Donald Trump moves from the board room to the board game. Amazingly, it features his name, "Trump: The Game." It allows four players to briefly inhabit the heady world of the Donald, hairstyle not included. That's the big money maker, the hairstyle.

WHITFIELD: Well, oil prices are bubbling over and they're sending stocks lower on Wall Street.

PHILLIPS: Rhonda Schaffler keeping an eye on all the action. She's live from the New York Stock Exchange -- Rhonda?

RHONDA SCHAFFLER, CNN SR. FINANCIAL CORRESPONDENT: Hi, ladies. We have seen this pattern time and time again, a record close for oil prices and a retreat for stocks. The September contract for crude settled up nearly $1.50 at $48.70 a barrel, another new record.

Prices have been climbing recently on continued worries about strong demand and possible supply shortages. Oil surge putting pressure on the stock market this afternoon. Dow Industrials off 57 points, Nasdaq losing three quarters of 1 percent.

As oil prices rise, airline stocks getting hard hit. Shares of Delta, Continental, Southwest, AMR all lower. And today, even more turbulence in the skies. Delta is slashing jobs. The company's CEO says more layoffs are in the works as it struggled to avoid bankruptcy.

At the same time, fewer flights will soon be going out in Chicago's crowded O'Hare airport. In an effort to ease congestion, United and American, the hub's two biggest, have agreed to cut back flights during peak hours. Those cuts are expected to reduce O'Hare delays by 20 percent. And that is the very latest news from Wall Street -- Kyra, Fredricka, back to you.

PHILLIPS: All right, Rhonda, thanks a lot.

Black bear with beer buzz seeks (ph) hair of the dog. Today's edition of "What the?" puts the wild in wildlife in Washington State.

WHITFIELD: Well, it seems that Fish and Wildlife agents at Baker Lake resort found a passed out bear at the campsite, and it just happened the other day, in staggering distance, apparently, of 36 ripped, punctured and thoroughly drained beer cans. You heard right: Three dozen bears.

The agents tried to roust the beer, but it just hobbled up the tree to continue it's nap and returned the following morning, looking for more, I guess.

PHILLIPS: Or a bloody Mary, I don't know.

The episode reminded all of us here at LIVE FROM of another black bear, about a year ago, who climbed up a tree in Montana. Well, this one was also under the influence, not of three dozen beers, but of a tranquilizer dart fired by animal control in Missoula.

Now, luckily, we think...

WHITFIELD: Ow. Gosh.

PHILLIPS: ... there was a trampoline under the tree, and almost a year later, we still can't enough of that video. I know. We hasten to add that the bear was not hurt and returned to the wild the next day, possibly to Washington State.

WHITFIELD: Yes, lucky for us to say it wasn't hurt. I'm sure it had a few bruises.

PHILLIPS: He was a little sore.

WHITFIELD: Ow. Well, all right. Well, that's going do it for us here at LIVE FROM.

PHILLIPS: INSIDE POLITICS up next. Candy Crowley is in for Judy Woodruff. Hi, Candy.

CANDY CROWLEY, CNN ANCHOR: Hi. Thanks, you all. Well, we here on INSIDE POLITICS have been focusing on the race for the White House. Battles are raging in key congressional districts across the country. We'll check in with the heads of the two house campaign committees.

Plus, the president's wife has been on the trail more and more lately, and she seems to be liked by both Republicans and Democrats. We'll be taking a closer look at first lady Laura Bush when INSIDE POLITICS begins in just a moment.

(COMMERCIAL BREAK)

PHILLIPS: There are reports U.S.-led forces are attack insurgent positions in Najaf. Explosions have rocked that city, where followers loyal to Shiite leader Muqtada al-Sadr are holed up in a reversed mosque -- revered mosque, rather.

Iraq's prime minister warned al-Sadr of an attack if he does not disarm his militia and withdraw from the mosque. Earlier today, a CNN producer went inside the building and reported persistent sounds of mortars, gunfire and a number of explosions.

Google stock owners are watching Nasdaq today. The Internet company made its debut this morning, opening just more than $100 a share, this after an initial public offering at $85 a share brought in $1.6 billion.

The stepfather of a boy who says Michael Jackson molested him is on the witness stand today. The hearing will determine whether some evidence gathered by the prosecution could be used at trial. Jackson has pled not guilty to those charges. Now, Judy Woodruff's INSIDE POLITICS.

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


Aired August 19, 2004 - 15:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Now in the news, showdown in Najaf. CNN confirms that several explosions have been reported in Najaf, meantime we also have these exclusive pictures shot from inside the compound of the Imam Ali Mosque. High spirits are reported inside. Fighting rages outside. And we'll explore where it may all lead coming up.
There are also reports of intense fighting in Baghdad's Sadr City. The poor Shiite neighborhood is an al-Sadr stronghold, and his forces are battling U.S. troops. Iraq's Health Ministry reports eight people have been killed, 64 wounded.

Boston Mayor Thomas Menino is in the hospital with what his doctors are now saying is a mild case of Crohn's disease. It is a chronic condition that can cause periodic bouts of intense abdominal pain. The 61-year-old Menino was admitted last night and is said to be resting comfortably.

KYRA PHILLIPS, CNN ANCHOR: Chanting inside, fighting outside, threats and fears and utter devastation all around. So goes Najaf. A day after that city's fire-brand Shiite cleric seemingly changed his mind about disarming his militia and going into mainstream politics. That's if Muqtada al-Sadr ever really accepted Baghdad's demands in the first place. His message today: Martyrdom or victory.

We get the story from CNN's Matthew Chance.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): Fierce fighting continues in the streets of Najaf in clashes between the Mehdi Army, loyal to the Shiite cleric Muqtada al-Sadr and U.S. forces on the ground in the holy city. We have exclusive pictures now, as well, from a CNN producer who's managed to get inside the mosque compound, the mosque of Imam Ali, one of the holiest shrines in Shia Islam, and where hundreds of Mehdi Army supporters are holed up in resistance to the U.S. army there.

They're chanting pro-Muqtada al-Sadr slogans, vowing never to leave this, one of the holiest shrines in Shia Islam. There's also indications from inside the mosque that it's been damage to small extent.

At least two of the minarets seem have been damaged in the two weeks or so of extremely intensive fighting, that despite the efforts of the U.S. military to limit the damage and to not return fire to this sacred site for fear of sparking some kind of ferocious backlash among Iraq's majority Shia community.

The Iraqi interim government, though, seems to be losing patience at this stage with Muqtada al-Sadr.

(on camera): They've issued him an ultimatum to come out and publicly declare that he'll leave the mosque and he'll disband the Mehdi Army militia and join the mainstream political process. The fact on the ground, though, is that that, to date, has not yet happened.

And so, all sides are examining the military options available to them, the interim Iraqi government saying that they will storm the mosque, if they say it's necessary. But they say that if that order is given, it will be Iraqi troops that do that work, not U.S. forces, who will play a more backing-up kind of role.

Matthew Chance, CNN, Najaf.

(END VIDEOTAPE)

WHITFIELD: The Bush administration says the world needs to be more patient and less critical of Iraq's attempts to build a multi- ethnic democracy. In a speech today to a D.C. think tank, National Security Advisor Condoleezza Rice noted some divisions, ethnic, political, religious, go back longer than others.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, U.S. NATIONAL SECURITY ADVISOR: Some of the mistrust and suspicion felt toward the West by many in the Middle East and in the Muslim world, in fact, has some basis in reality. Relations between the Islamic world and the West began in conflict.

And for many centuries, bitter and bloody conflict, wars of religion, and then colonial wars, defined the contact that each side had with each other. And for the last six decades, America and our allies excused and accommodated the lack of freedom in the Middle East hoping, as President Bush said, to purchase stability at the price of liberty.

(END VIDEO CLIP)

WHITFIELD: Rice says the Bush administration can and must do more to encourage, in her words, moderation and tolerance in the Middle East.

A broadside in Boston today over courage in question in Vietnam. The Democratic candidate for president accused the incumbent of quietly endorsing attack ads that claimed some of John Kerry's medals were awarded under false pretenses.

CNN's Sean Callebs is following the attack then the counter- attack coming from Washington -- Sean? SEAN CALLEBS, CNN CORRESPONDENT: Indeed. Democratic presidential candidate John Kerry today saying -- blaming the Bush administration for a soft money ad that attacks his Vietnam service record.

Now speaking to a group of firefighters in Boston, Kerry denounced the ad that basically says he's lying about his military record. The ads are running under the name Swift Boat Veterans for Truth and funded, in part, by Texas Republicans and not the Bush campaign. Kerry has unveiled his own commercial which will start running in Wisconsin, Ohio and West Virginia tomorrow.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm John Kerry and I approve this message.

ANNOUNCER: The people attacking John Kerry's war record are funded by Bush's big money supporters. Listen to someone who was there, the man whose life John Kerry saved.

JIM RASSMANN, VETERAN: They blew me off the boat.

(END VIDEO CLIP)

CALLEBS: Well, today, the White House issued a statement saying the president has called Kerry's Vietnam service noble. Still, Kerry is blaming President Bush for the ads.

(BEGIN VIDEO CLIP)

KERRY: The president keeps telling people he would never question my service to our country. Instead, he watches as a Republican-funded attack group does just that. Well, if he wants to have a debate about our service in Vietnam, here is my answer: Bring it on.

(END VIDEO CLIP)

CALLEBS: Among the sailors accusing Kerry of lying about events, Larry Thurlow. Thurlow, who also received a Bronze Star that day, says Kerry's citation is totally fabricated and Thurlow says he never heard a shot.

Now, Kerry has maintained his boat came under fire after a mine explosion. Records from back of March of 1969 show Thurlow said he and other boats that day came under constant small-arms fire.

Well, today, Thurlow told CNN he didn't even know he won a Bronze Star until he was out of the Navy. And he contends it was Kerry who wrote that after-action report -- Fred?

WHITFIELD: Well, Sean, for a long time, John Kerry refrained from criticizing these ads. They've been out for a while. Now, with Thurlow's record being discredited, why did Kerry camp feel like now is a time to respond and try to associate these attacks with the Bush administration?

CALLEBS: Well, a couple of things. One, the Kerry camp had indicated that they were not going to respond until September, October, until closer to the election, in part for financial reasons, in terms of fundraising.

But now, apparently, several leading Democrats have been telling Kerry that he needed to step up to the plate, he needed to address these charges, they were very serious.

And of course, Kerry and his camp continued to point back to Senator McCain who said that this is the same kind of attack that McCain saw when he was up against Bush back in 2000.

And the White House has come out and said they would like to see none of these soft money ads run, but this is an ad that appears to be out there, a tit-for-tat. And we'll keep following, Fredricka.

WHITFIELD: And ads getting a whole lot of airtime, too. Sean Callebs, thanks very much from Washington -- Kyra?

PHILLIPS: In another news across America, Google this. The Internet giant, Google, makes its debut on the Nasdaq stock market. Shares of Google began trading at $100, higher than its initial offering price of 85 bucks. That stock is trading under the symbol GOOG.

Dry bush and grass fields is raging, or feeds are raging -- helping the wildfire to get raging in Washington State. That blaze near Dryden has grown to nearly 13,000 acres and has forced hundreds of people from their homes. One home has been destroyed, another damaged.

Oprah Winfrey gets a reality check in court. The talk show host was on a Chicago jury that convicted a man of murder yesterday. Winfrey says that the trial was a reality check and eye opener. She plans to talk about the experience on her show next week.

In the court case of a pop star, the stepfather of Michael Jackson's accuser takes the stand today in the child molestation case. His testimony concerns whether authorities violated Jackson's attorney-client privilege when they broke into the office of a private investigator hired by Jackson.

WHITFIELD: In Florida, 22 people dead, $7 billion-plus in insured property damage, a fifth of Florida's citrus crop ruined. The numbers grow more staggering everyday, making the recovery from Hurricane Charley seem even more daunting.

CNN's Sara Dorsey joins us from Lake Wales, east of Tampa -- Sara?

SARA DORSEY, CNN CORRESPONDENT: Well, Lake Wales has been lucky in the past. The sheriff's office tells us it's been about 40 years since they were hit by a hurricane, that is, until Charley showed up. This storm came in packing quite a punch across the area. You can see trees down, power lines in some places, homes in some areas are very badly damaged. And where we're located is on the outskirt of town.

The sheriff's office says some people down here don't have insurance, and for that reason, they brought in inmates from the local jails to help aid them in the cleanup. And this cleanup is going to take a while. Many people actually stayed in their homes when this happened.

Joining me is Mary Castro (ph) with her three children. And you weathered out this storm right here in your house. Tell me how that was for you all and what you were thinking when it happened?

MARY CASTRO (ph): It was scary. We watched, me and my husband, watched the trees. And when it got real bad, I threw the kids in the closet and I told them to stay there, don't move. And then we stayed in our back room until it was over with.

DORSEY: And tell me, how long did you have to even the kids in there and how are they taking everything?

CASTRO (ph): They were scared. They were screaming and crying. And we sit in there for about like, I don't know, I think it was about two hours.

DORSEY: And I know, from judging just the area around your home, there is a lot of debris down. Was your home damaged? What types of things are you experiencing now?

CASTRO (ph): Just a bunch of trees down. There's a lot of cleanup. No lights, no water.

DORSEY: It has to be awfully scary for you and your family, naturally. But at some point, you have to pick up. What is it that you all are doing now to try to move past all of this?

CASTRO (ph): Just taking it day-by-day, staying together.

DORSEY: Have you felt a lot of people coming together?

CASTRO (ph): Yes. Yes. A lot of people that a lot of don't know, the Red Cross has come and left food, water, bottles of water, ice, stuff that we need.

DORSEY: Well, thank you very much Mary Castro (ph). The best to you and your children. Mary is not alone. The power is out. Still, in many parts of Polk County, there's about 21,000 people, according to Florida Progress, who still don't have their power back on, and they say it could take until Sunday for them to restore that.

And that also means no air conditioning, and it is very hot out here, 90-plus temperatures, which makes it slow-going for the cleanup crews.

WHITFIELD: A tough road ahead for everyone. Thanks so much, Sara Dorsey -- Kyra?

PHILLIPS: An eye-opening survey for parents and grandparents about teenagers and risky behaviors.

And a fat fight, an experimental approach to treating an American epidemic. Details ahead.

All right, Fred. Hey, Boo Boo.

WHITFIELD: Hey, Boo Boo.

PHILLIPS: This bear finds a little...

WHITFIELD: ... a little picnic basket.

PHILLIPS: There you go. Thirty-six bottles of beer on the wall. Oh, yes. The rest of the story live right here on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: Explosions and gunfire in Najaf, Iraq. These pictures just in. Let's listen for a moment.

Just more evidence that the fighting rages on outside the Imam Ali Mosque there in Najaf. The defense is taking, still a violent standoff between U.S. forces and supporters of Muqtada al-Sadr. Both U.S. forces believe that the rebel cleric is holed up inside that mosque.

We've shown you the picture of a number of supporters also within the mosque area. Once again, we're continuing to follow this story as Iraqi officials have threatened, actually, at this point, to enter that mosque. U.S. forces standing strong on saying that they will not do it, due to the holy site.

Already, you've seen the destruction outside that area, but right now we're reporting multiple explosions, not sure if it's from U.S. military air strikes or not. We're continuing to work the story. But as you can see, the fighting rages on, as supporters of Muqtada al- Sadr continue go up against U.S. forces and Iraqi troops.

WHITFIELD: Well, on now to results of a stunning report, it's not just cliche anymore, sex and drugs do often go together. A survey of 1,000 teens find that friends do influence behavior. Teenage girls who associate with older boys are likely to have tried alcohol or drugs. They're also more likely to have tried marijuana or cigarettes. The survey was carried out by Columbia University.

President Bush said he's looking closely at whether to back lower price prescription from Canada and elsewhere. Mr. Bush says pressure is building on Congress to allow such imports. And he told a crowd in Wisconsin, if it is safe, it makes sense.

But he says so far, it's still unclear if such drugs are safe. On Tuesday, Illinois Governor Rod Blagojevich said he would allow residents in his state to buy prescriptions drugs from Canada, Ireland and the United Kingdom.

PHILLIPS: Twenty-six percent of Americans are considered obese. We all know obesity can lead to numerous and costly health cost problems. Now, the State of Louisiana trying an unconventional method to help a few of its overweight residents. Elizabeth Cohen reports.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN CORRESPONDENT: Jimmie Sanders is morbidly obese. On that everyone agrees.

JIMMIE SANDERS, GASTRIC BYPASS PATIENT: I hate the sight of me. I hate that I let myself get where I'm at today.

COHEN: But here's the debate: Should Sanders try to lose weight by diet and exercise, something she's failed at so far, or should she go ahead and have gastric bypass surgery, which would cost about $30,000.

So, Sanders's employer, the state of Louisiana, is trying an experiment. They're giving free gastric bypass surgery to 40 employees, including Sanders. After five years, the state will figure out which costs more, the surgery or the medical costs of being obese, the illnesses, the disability, the lost days of work.

DR. LOUIS MARTIN, LSU HEALTH SCIENCES CENTER: Our whole goal here is to, you know, have the number of medicines go down dramatically. So most of the time, 50 percent of the pills you've taken in the past, you won't take anymore.

COHEN: For Sanders, who needs to lose about a hundred pounds, the decision was pretty easy, even though the surgery can be risky. One study has found that two percent of the patients die within 30 days of surgery.

SANDERS: You could probably look in the dictionary under "diet," and my picture would be in there somewheres, I assume.

COHEN: She takes medicine for high blood pressure and high cholesterol, and her doctor told her if she doesn't lose weight, he'll have to put her on medicine for diabetes. And even though she's seen four relatives die of the disease, she still can't lose the weight.

SANDERS: I always thought I could get in control of it. And after so long and so many years, I can't. I can't do it.

COHEN: That is, of course, the point of the surgery, to force her to lose weight by making her stomach smaller. Gastric bypass has a good track record for helping people lose weight and keep it off. Whether it helps the state in the midst of an obesity epidemic save money is something they hope to figure out.

Elizabeth Cohen, CNN, Atlanta.

(END VIDEOTAPE)

WHITFIELD: Well, he has conquered the business world, television and now, Donald Trump, the Donald, is ready to play a new game with you. Details on his new venture straight ahead. PHILLIPS: And a new twist on an old question, does a party or does a bear -- I screwed it up. Does a bear party in the woods? We have the beer cans to prove it.

I was afraid of saying the bad word.

(COMMERCIAL BREAK)

WHITFIELD: Beautiful, huh? Well, can you name that tune? It's the theme from "The Magnificent Seven," just one of the many famous movie songs composed by Elmer Bernstein. Bernstein scored so many films we could never name them all. He earned an Oscar for 1967's "Thoroughly Modern Millie" and more than a dozen other Academy Award nominations. Bernstein, who was no relation to famed conductor Leonard Bernstein, by the way, died yesterday at the age of 82 in California.

PHILLIPS: Checking other entertainment headlines this Thursday, Oprah and her fellow jurors have spoken and the verdict, guilty. Oprah said afterwards the three day murder trial was the saddest experience of her life. The 27-year-old defendant faces possible life in prison when he's sentenced next month. Oprah plans to devote a show to the trial next week.

Another city, another courtroom, and a TKO for the producers of "The Contender." A judge has refused to grant the NBC reality show a temporary restraining order against Fox network's rival show, "The Next Great Champ." But there will be a rematch. In a dispute, the judge has scheduled a December 8th hearing in the ongoing scuffle over fighting rights.

Continuing his full-frontal assault on American pop culture, Donald Trump moves from the board room to the board game. Amazingly, it features his name, "Trump: The Game." It allows four players to briefly inhabit the heady world of the Donald, hairstyle not included. That's the big money maker, the hairstyle.

WHITFIELD: Well, oil prices are bubbling over and they're sending stocks lower on Wall Street.

PHILLIPS: Rhonda Schaffler keeping an eye on all the action. She's live from the New York Stock Exchange -- Rhonda?

RHONDA SCHAFFLER, CNN SR. FINANCIAL CORRESPONDENT: Hi, ladies. We have seen this pattern time and time again, a record close for oil prices and a retreat for stocks. The September contract for crude settled up nearly $1.50 at $48.70 a barrel, another new record.

Prices have been climbing recently on continued worries about strong demand and possible supply shortages. Oil surge putting pressure on the stock market this afternoon. Dow Industrials off 57 points, Nasdaq losing three quarters of 1 percent.

As oil prices rise, airline stocks getting hard hit. Shares of Delta, Continental, Southwest, AMR all lower. And today, even more turbulence in the skies. Delta is slashing jobs. The company's CEO says more layoffs are in the works as it struggled to avoid bankruptcy.

At the same time, fewer flights will soon be going out in Chicago's crowded O'Hare airport. In an effort to ease congestion, United and American, the hub's two biggest, have agreed to cut back flights during peak hours. Those cuts are expected to reduce O'Hare delays by 20 percent. And that is the very latest news from Wall Street -- Kyra, Fredricka, back to you.

PHILLIPS: All right, Rhonda, thanks a lot.

Black bear with beer buzz seeks (ph) hair of the dog. Today's edition of "What the?" puts the wild in wildlife in Washington State.

WHITFIELD: Well, it seems that Fish and Wildlife agents at Baker Lake resort found a passed out bear at the campsite, and it just happened the other day, in staggering distance, apparently, of 36 ripped, punctured and thoroughly drained beer cans. You heard right: Three dozen bears.

The agents tried to roust the beer, but it just hobbled up the tree to continue it's nap and returned the following morning, looking for more, I guess.

PHILLIPS: Or a bloody Mary, I don't know.

The episode reminded all of us here at LIVE FROM of another black bear, about a year ago, who climbed up a tree in Montana. Well, this one was also under the influence, not of three dozen beers, but of a tranquilizer dart fired by animal control in Missoula.

Now, luckily, we think...

WHITFIELD: Ow. Gosh.

PHILLIPS: ... there was a trampoline under the tree, and almost a year later, we still can't enough of that video. I know. We hasten to add that the bear was not hurt and returned to the wild the next day, possibly to Washington State.

WHITFIELD: Yes, lucky for us to say it wasn't hurt. I'm sure it had a few bruises.

PHILLIPS: He was a little sore.

WHITFIELD: Ow. Well, all right. Well, that's going do it for us here at LIVE FROM.

PHILLIPS: INSIDE POLITICS up next. Candy Crowley is in for Judy Woodruff. Hi, Candy.

CANDY CROWLEY, CNN ANCHOR: Hi. Thanks, you all. Well, we here on INSIDE POLITICS have been focusing on the race for the White House. Battles are raging in key congressional districts across the country. We'll check in with the heads of the two house campaign committees.

Plus, the president's wife has been on the trail more and more lately, and she seems to be liked by both Republicans and Democrats. We'll be taking a closer look at first lady Laura Bush when INSIDE POLITICS begins in just a moment.

(COMMERCIAL BREAK)

PHILLIPS: There are reports U.S.-led forces are attack insurgent positions in Najaf. Explosions have rocked that city, where followers loyal to Shiite leader Muqtada al-Sadr are holed up in a reversed mosque -- revered mosque, rather.

Iraq's prime minister warned al-Sadr of an attack if he does not disarm his militia and withdraw from the mosque. Earlier today, a CNN producer went inside the building and reported persistent sounds of mortars, gunfire and a number of explosions.

Google stock owners are watching Nasdaq today. The Internet company made its debut this morning, opening just more than $100 a share, this after an initial public offering at $85 a share brought in $1.6 billion.

The stepfather of a boy who says Michael Jackson molested him is on the witness stand today. The hearing will determine whether some evidence gathered by the prosecution could be used at trial. Jackson has pled not guilty to those charges. Now, Judy Woodruff's INSIDE POLITICS.

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