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Florida Braces for Hurricane Frances; Tragic End to Russian School Standoff; Gloria Estefan Talks About New C.D.

Aired September 03, 2004 - 14:30   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.


KYRA PHILLIPS, CO-ANCHOR: We're keeping you informed. Miles can keep you informed on that. I can promise you that.
CNN and Miles, the most trusted names in news.

Well, as Frances approaches, Florida officials are ordering the largest evacuation in state history, some 2.5 million people are being told to head inland, and the mass exodus is turning one necessary item, gasoline, into quite a precious commodity.

Sean Callebs reports from West Palm Beach -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: This is a picture that is playing out throughout south Florida: gas stations that are virtually vacant.

A number of service stations, gas stations, convenience stores that provide gas simply running out. A big problem, because there are so many evacuations throughout the state, 2.5 million, the largest evacuations ever.

We arrived at this Cumberland Farms stations awhile ago, and they had gas in virtually all the pumps. One by one, all 12 pumps running dry. For a while, they were simply left with supreme unleaded, the most expensive. A lot of people weren't happy, but they said it was a lot better than nothing.

Let's walk over this way to show you a pretty good microcosm of what this entire state is having to deal with. Frustrated people showing up at the pumps: this individual trying to squeeze the last bit out, getting 59 cents' worth of gas.

And this is really the story. It says, "Sorry, pump out of order."

We asked the operators of this service station how long they thought they'd be able to stay open. We simply got a shrug, as long as possible.

But a network to a degree has developed throughout this area of south Florida, people going on talk radio shows saying where gas is still available.

And the reason this is so important, there will be no more supplies coming into service stations throughout south Florida until after Frances. Authorities are worried about the possibility of a spill, and the damage it could do to the environment.

Sean Callebs, CNN, in Palm Beach County, Florida.

PHILLIPS: And for more hurricane information, you can log onto CNN.com/hurricanes. There you're going to find the storm's projected path, links to emergency information and resources and tips on what you should do during a hurricane.

MILES O'BRIEN, CO-ANCHOR: Within the past half hour, the National Hurricane Center updated its warning on Hurricane Frances. Ed Rappaport is one of the folks there that is paying extra close attention to Frances as she bears down on the coast of Florida.

Ed, good to have you back with us.

The storm is slowing down. A lot of people might say that's great but it isn't necessarily the case, is it?

ED RAPPAPORT, NATIONAL HURRICANE CENTER: Well, there's good news/bad news when the storm slows down. One, the good news is it gives us a little more time to prepare. The bad news is it's nerve wracking, because it takes longer to get here.

And the really bad news is once it gets here it prolongs the impact over the state of Florida.

O'BRIEN: So when it slows down, it does -- obviously can batter the coast for longer. Can it increase the storm surge, as well?

RAPPAPORT: The forward speed slowing isn't necessarily going to increase the storm surge unless that extra time allows the hurricane to restrengthen.

We haven't seen that. There's some mixed messages in what we are getting out of the data. The satellite picture suggests it's strengthening a little, but the aircraft hunter's aircraft reports say that that hasn't happened yet.

O'BRIEN: All right. So far the storm has kind of been knocked down by some shearing winds, as it's called, which dropped it from Category Four to Category Three.

The concern, as I understand it, is as the storm moves toward the Gulf Stream, that warm water in the Gulf Stream could actually kick it up a notch. Is that something that is still a concern?

RAPPAPORT: Yes, there are competing factors here, influences on the hurricane's intensity. One is the wind shear out of the west and the southwest, which would weaken the storm. And the other is the warmer waters it's moving into, which would strengthen it.

Our concern is that the wind shear would go away at the same time that we have those warmer waters. And there's somewhat of an indication of that if you can see on the satellite picture, an expansion of the clouds. That really only happens if the shear is decreasing. So we'll see whether that continues for the next several hours.

O'BRIEN: Ed Rappaport is at the National Hurricane Center. Thank you very much. We'll check in with you later.

The confetti has barely been cleaned from the floor of the Madison Square Garden, but the newly appointed Republican nominee is already burning up the campaign trail.

During a stop last hour in Wisconsin, President Bush quoted new, lower unemployment figures as proof that his economic recovery plan is working. Earlier, Mr. Bush visited the battleground state of Pennsylvania. Later, he goes to Iowa. Bush lost all three of these states in the last election.

Dick Cheney on the move, as well. The vice presidential nominee is in Oregon today. From there, he moves on to Nevada and New Mexico.

In his acceptance speech, Mr. Bush recalled images of the September 11 attacks, told delegates he's learned firsthand that sending Americans into battle is the hardest decision, even when it's the right one.

One Democratic speechwriter says the message was a good one but not that good.

(BEGIN VIDEO CLIP)

MICHAEL WALDMAN, FORMER WHITE HOUSE SPEECHWRITER: I do think that he showed, again, that he believes what he says, at least gives the sense that when he says something, he really means it.

What I thought he needed to do and didn't do, frankly, was lay out a very compelling agenda for a second term. As -- as a Democrat, I was quite relieved by that. I thought he had an opportunity there. The speech was kind of a laundry list of policies, like a State of the Union address, but it didn't cohere.

(END VIDEO CLIP)

O'BRIEN: That's pretty high praise, compared to what a former Bush speechwriter had to say about John Kerry's acceptance comments at his party's convention.

(BEGIN VIDEO CLIP)

DAVID FRUM, FORMER BUSH SPEECHWRITER: It was a strategic disaster of the first order. It was -- because what he did was he introduced himself to America as this war fighting war hero, to an America that had no idea that he'd also been a Vietnam protester.

They found out not from him about his Vietnam protest career. They found out later from other people, and that made everyone think, "He lied to us. He deceived us."

(END VIDEO CLIP) PHILLIPS: Well, the convention ended just a few weeks ago, but the Democratic nominees for the White House aren't exactly resting on their laurels, either.

On the road in Ohio, presidential hopeful John Kerry took a different view of the new unemployment figures, blasting Bush for what the call -- for what he calls, rather, the president's record of failure.

And Kerry says voters should vote for Bush if they think lost jobs mean America is headed in the right direction.

Now Kerry's running mate, John Edwards, is in Green Bay, Wisconsin, today, as part of his two-day campaign swing right through the state.

PHILLIPS: We're going to switch gears and talk about another one of our top stories.

The tragic standoff outside a school in southern Russia continues. A Russia intelligence official says that some of the hostage takers are from Arab countries with possible links to international terrorism or even al Qaeda.

Here to talk about the Chechen rebels and the so-called Arab connection, CNN correspondent Mike Brooks.

I guess -- let's start -- We saw it come over the wires, in effect saying they're Arab mercenaries. Explain the connection here to possibly al Qaeda and training that they might have had.

MIKE BROOKS, CNN CORRESPONDENT: Well, they said there have been 20 militants killed and 10 of those Arab.

We know that there have been foreign fighters in Chechnya for years, but we've never seen -- and possibly trained by al Qaeda and some links to al Qaeda. But we've never seen them involved in any of the operations. They've been in -- they've had a number, undertook a number of hostage situations since 1995, but we've never seen any Arabs actively involved in the situations themselves.

PHILLIPS: All right. So that's still developing.

BROOKS: Yes.

PHILLIPS: Now we've had reports that possibly some of the police officers were killed trying to save a couple of the children. We know it got a little chaotic with regard to command and control.

What happened with the shootout?

BROOKS: Very chaotic. Apparently the negotiations were ongoing. They had negotiated to remove the bodies of about 20 people who were killed during the initial assault from in front of the school.

While they were in the process, they -- they had removed about four of the bodies from in front of the school. We see the graphic here. And during that time it's unsure of whether or not rounds were fired from inside.

And then the children started running out or the children started running out and then they were actually shooting the children, and the troops were shooting back at them, trying to provide cover fire for the children.

At that time the Russians decided to do an emergency assault. They blew some holes in the walls, and then all hell broke loose. And they are still right now, there have been over 600 people injured, 150 of them, at least 150 of them children.

It's just been just a chaotic scene. Command and control just totally broke down. We've seen some of the people from -- the local people from the neighborhood actually grab guns and go in with the troops, room to room search for the rebels that are left inside the school. Just totally chaotic, total chaos.

PHILLIPS: Now in a way, could chaos work in -- for -- to the advantage of those trying to rescue those still inside? Because distraction could be a good thing, right? If they know the building -- we've seen, actually, how they've plotted out so they know where the buildings are and where the hostages are.

Could it work to their advantage being able to distract the hostage takers?

BROOKS: Well, not really, because again, if you have people who are not part of your team that are -- that are going in with you, you don't know who the bad guys are and who the good guys are.

And having been a former operator, I can tell you that when you go in and it's total chaos with smoke and hollering and screaming and then total chaos, when you go in, you want your own team members with you. You don't want some outside people that you don't know their capabilities going in with you, too.

PHILLIPS: So do we know -- You told me the FBI has actually trained the FSB there, the ones that are trying to negotiate with these hostage takers.

Is it working at all? Is it continuing? Are they able -- Do we know by the minute if more women and children are being out, or now is it just closed off?

BROOKS: I seriously doubt if there are any ongoing negotiations right now. When they have to made that emergency assault, the negotiations broke down.

They are -- they were saying they were in a mop up phase. Well, they're more than in a mop up phase. They're still in -- you know, in a crisis situation, because we are still hearing that there are still children hostages in the school, that they have gone out throughout the school. Most of the children were held in a gymnasium, and there had been explosive devices and other things, and the roof of the gymnasium caved in after a bomb apparently went off. We saw a fire earlier.

And what we see here are some of the improvised explosive devices, improvised explosive devices, that they have brought out that they rendered safe.

What it looks to me, Kyra, as you see these...

PHILLIPS: Were they booby traps?

BROOKS: They could have been, yes. And what you see is it looks like plastic explosives with B.B.s and nails. These are made for nothing more than to either kill or maim people who are inside that school. Very -- and the blasting caps there; they've done a good job.

They were concerned that there were booby traps and that's another concern of the entry team when they go in and they're doing a room-to-room search for these insurgents, booby traps, other improvised explosive devices that are there at the school.

PHILLIPS: All right. We'll follow the standoff. Mike Brooks, thank you so much.

BROOKS: Thank you, Kyra.

PHILLIPS: Going to take a quick break. More LIVE FROM right after this.

(COMMERCIAL BREAK)

O'BRIEN: All right. Lots of big stories to cover today, and one of the biggest, of course, comes from Beslan in Russia, where as a result of that hostage siege -- Russian paramilitary forces, military forces moved in on that school where excess of 1,000 children and their parents have been held hostage by Chechen rebels.

The ensuing bloodshed led to several casualties.

ITV correspondent Julian Manyon was on the scene and not only that, he got inside the school in the middle of that fracas. And he spoke just a few moments ago to CNN's Jim Clancy.

Let's listen.

(BEGIN VIDEOTAPE)

JULIAN MANYON, ITV CORRESPONDENT: Well, the situation is this is turning into a greater tragedy than had been initially imagined. Because obviously, when we saw those first pictures of the first children coming out and indeed, in my case, physically saw the children and some of the parents and some of the teachers being rescued.

What -- what you're hearing there is what we believe and hope is mine clearing operations, tremendous explosions taking place from the vicinity of the school.

But when we saw those -- when we saw those events, there was obviously a great deal of hope as the majority of -- the overwhelming majority of the hostages would be released unharmed.

The figures now being given for casualties, I'm afraid, are pretty horrific. These figures are not coming from the government, and they're still unofficial figures.

The two Russian television channels have put the -- the dead among the hostages -- dead among the hostages in the hundreds. One channel has actually said that 500 hostages were killed in these terrible events.

The president of North Ossetia has said that there were just 400 survivors, and we currently believe that there were at least 1,000 hostages in the first place.

So this is really turning, I'm afraid -- yes, we got to the school while the fighting was still going on, and at the moment we managed to get there, the Russians had actually dislodged -- dislodged the hostage takers, the Chechens, from the main school building.

But there still seems to be a number of them just on the other side of the school building, and there was a most extraordinary spectacle. Russia is an extraordinary place in this regard.

That people go forward. They do try to help emergency workers and others, really do try to get stuff in (ph). And there was this extraordinary spectacle of emergency workers trying to put out the fires in the room, the gymnasium, for example, looking for more people to rescue and most of all, rescue the living hostages.

And they were doing these things under fire. The -- the Chechens were still on the other side of the buildings and bullets whistling over our -- their heads.

And indeed, a Russian soldier was hit a few yards way from us. He was hit by a flash -- bullet in the side. And we can't (UNINTELLIGIBLE). And was then helped away by his friends.

It was the most extraordinary scene which unfolded over a period of about an hour or an hour and a half. We'll continue with the firing from this very, very determined, tragic (UNINTELLIGIBLE), one has to say, who were putting up ferocious resistance against Russian Faha (ph), Faha (ph) which includes the use of armored vehicles, one of which had actually charged in the initial assault straight into the courtyard of the school and ended up rammed against the wall of the school.

Others which got around the back and while we were there, were taking on the Chechen rebels with machine guns.

(END VIDEOTAPE)

O'BRIEN: An amazing account: Julian Manyon of ITV talking to CNN's Jim Clancy a little while ago.

Just to bring you up to date, about 400 people that were held hostage did flee to safety as a result of all this.

And our latest report from Ryan Chilcote at the scene indicated there was no more indication of any fighting activity. And some indication, according to Chilcote, that they were de-mining the school, perhaps indicating the siege might be over, but we cannot say that for certain.

It's possible there still may be some Chechen rebels and possibly some hostages inside that school. Unclear whether it's over. We're watching it very closely for you.

Back with more in a moment.

(COMMERCIAL BREAK)

(MUSIC)

PHILLIPS: Well, in every language Gloria Estefan means heart, rhythm and soul, and for the past 20 years her blend of pop and Latin music has translated into tremendous success.

On her new C.D., she gets unwrapped and teams up with music legends like Stevie Wonder, Chrissie Hind for a raw and spiritual musical journey. Her Spanish language C.D., "Amor Y Suerte," is also coming out this month.

It's "Amor Y Suerte," right?

GLORIA ESTEFAN, MUSICIAN: Yes.

PHILLIPS: All right, great.

She's here with me on set in Atlanta.

Wow! What a pleasure.

ESTEFAN: It's a pleasure to be here. Thank you so much.

PHILLIPS: I know we've got a lot of breaking news going on...

ESTEFAN: Yes.

PHILLIPS: And I know you live in Miami. I'm just curious: are you concerned at all? Are you getting the family out of there?

ESTEFAN: Of course I'm concerned. Well, my daughter's with me. My son is in Miami and my mother and my sister.

So I've been on the phone every two seconds, following it very closely, because sometimes the national news is a little behind what the actual local forecasts are giving.

So I'm hoping for the best. I mean, obviously it's a big storm. You have to be ready. We're impacted all the way up the coast, because we have businesses in the treasure coast, in Orlando as well as Miami. But we've got things under control, and hopefully everyone's going to evacuate.

PHILLIPS: Well, if you want to stick -- stick around, we can keep you up to date. All right? You'll have all the latest news here.

ESTEFAN: I have been watching.

PHILLIPS: OK, good.

I want to ask you about your new C.D. in a time of war and there's just, you know, so much hatred going on, and all of this talk about different cultures not getting along.

Then there's you and your music and you have broken down so many barriers. This is your mission in life, isn't it?

ESTEFAN: It is to me. I see myself more of a communicator, really, even than a singer, and I've had the unique opportunity to be able to communicate those thoughts and feelings throughout my life.

This album is very important for that reason, because I do share a lot of the things that I've learned. And I really don't think that we have a problem between the cultures, per se.

It's always the radicals, the extremists in everything, in the religions and the cultures that push that envelope and make us face these things and try to deal with them in a good way. And music has always been a wonderful bridge. And I'm glad to be a part of it in my life.

PHILLIPS: Speaking of music, let's get folks -- let's take a little bit of "Unwrapped," a very spiritual song, I think, very emotional. Let's listen to a little bit and then I want to ask you about it.

ESTEFAN: OK.

PHILLIPS: OK.

(BEGIN AUDIO CLIP)

(MUSIC)

(END AUDIO CLIP)

PHILLIPS: Oh, boy, it just makes you, you've got the whole feel in there. But in this, it is very spiritual. And I'm wanting to know, after your accident, that was really tough. You didn't know what was going to happen.

Did that sort of -- was that life changing for you and sort of inspire this -- this C.D.? ESTEFAN: Most definitely life changing. It was 14 years ago, but I'll tell you, even though I wouldn't want to go through it again, I wouldn't change it. It really gave me a very unique way of living my life. And I don't waste a moment.

And yes, of course, I've always looked at the spiritual side of things. I mean, even though "Come on baby, shake your body, do the conga" was a big hit.

PHILLIPS: Hey, that's spiritual. I guess that could be spiritual.

ESTEFAN: I'll tell you one thing: the most beautiful and euphoric thing is to celebrate with people and dance and, you know, get everything out. So that's fun, too.

But yes, "Unwrapped" in -- this whole album really talks about enjoying your life, really touching the things that unite us all as human beings.

And fortunately, that's what I've been able to do. I think music really does cross boundaries. You don't have to understand the language. Music is a vibration of frequency that can soothe and it can make people, you know, feel great and celebrate together. So all that has become a bigger part of my music as time has gone on.

PHILLIPS: Another song. Let's take a little bit of "One Name." And I want to ask you about Edgar.

ESTEFAN: Oh, yes, of course.

PHILLIPS: OK.

(BEGIN AUDIO CLIP)

(MUSIC)

(END AUDIO CLIP)

PHILLIPS: Tell us about Edgar and one name in the story you tell in this song.

ESTEFAN: Of course. Well, songs are stories, and hopefully they come from something that's real in your life.

And every morning when we'd take Emily to school under the bridge that I crossed to get back to the mainland, because we live on the beach, I would see a man that lived under the bridge, every day.

And I would see him washing his clothes and hanging it and trying to have, you know, a decent existence there. And I would see all of these converging points, people that almost would run him over one day, and so this is really happening.

And it really is kind of symbolic of how in life in one little moment so many different lives can be converging, can be affecting each other without knowing.

And so that's how -- the song talks about being one name, we're all of one name, because really it doesn't matter who you are, what your experience is. We're all here, really, to share this experience, which is the Earth.

And we make an impact on each other, sometimes without even knowing. And I think people, if we paid attention more to that, we really could affect each other in a really positive way.

PHILLIPS: That now that affects your family. Talk about the ultimate love story with your husband. I know you're celebrating your anniversary.

ESTEFAN: Twenty-six years.

PHILLIPS: And your birthday.

ESTEFAN: That's right.

PHILLIPS: You've got Emily, your daughter, and your son -- tell me, if it Nayib.

ESTEFAN: Nayib, yes.

PHILLIPS: Nayib. Where does that name come from?

ESTEFAN: Emilio's father is Lebanese, and it means good person. And it was his great-grandfather's name. And I hoped for that for him, and he certainly has lived up to that till now.

I wanted him to have a bit of his ethnicity. Our kids are quite a mix: they're Spanish; they're Lebanese; Cuban, of course. And I want them to understand. I think it makes you stronger when you know where you come from and all these elements become a part of who you are. And his name was a big part of it.

For a long time he tell people, "My name's Joey," because he couldn't pronounce it. But now he has reclaimed his name, I'm happy to say.

Yes, it was his birthday yesterday, our 26th anniversary. And a lot of special days together.

PHILLIPS: Well, congratulations. "Unwrapped" is the C.D. Look for "Amor Y Suerte."

ESTEFAN: That's right.

PHILLIPS: That's coming out at the end of the month.

ESTEFAN: Yes. And we're on tour, actually. We're playing here in Atlanta tomorrow, and we'll be in the northeast in the next few days, Washington, Philly. So we're all around the country. We've already gone on for a month. It's been great. Really great crowds...

PHILLIPS: Mucho gracias.

ESTEFAN: Very nice.

PHILLIPS: I've been practicing for you.

ESTEFAN: Thank you. That was lovely.

PHILLIPS: I want to go salsa dancing with you sometime, all right?

ESTEFAN: All right.

PHILLIPS: OK, good.

ESTEFAN: I'll teach you some moves.

PHILLIPS: All right.

ESTEFAN: I heard you have some moves.

PHILLIPS: Miles does have some moves, let me tell you.

O'BRIEN: Come on, shake your body, baby, do that conga. You can't control yourself.

ESTEFAN: I know, but I like the dance you were doing before you were on the air.

PHILLIPS: We've got to take a break now. We'll be right back.

(COMMERCIAL BREAK)

O'BRIEN: Well, let's check in with Fred Katayama. We haven't seen much of him today on a busy day. It doesn't mean we don't like him, though.

PHILLIPS: Well, no doubt what's happening in Florida will affect the markets. Right, Fred?

(STOCK REPORT)

O'BRIEN: All right, Fred, enjoy your time off. We appreciate it.

PHILLIPS: What do you think? Should we wrap the show up?

O'BRIEN: I don't know, is that what we're doing? Are we wrapping? Trying -- OK, why don't we read what's in the screen there.

Trying to make sense of a chaotic and tragic situation, a pretty serious story. We'll have the latest on a hostage standoff at a Russian school. Hundreds have been freed now. The real question we have now, is it over? We're not certain.

PHILLIPS: We've got Ryan Chilcote and Mike Brooks working that story. Plus another serious story, bracing for Frances. That hurricane is moving over the Bahamas and heading for Florida. We're going to tell you where it's expected to make landfall. We've got it for you, straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: We are being told now the hostage situation in Russia may be coming to an end. We will have more for you coming up in the next hour. Meanwhile, we can tell you that several hundred hostages got out. Twenty hostage takers have been killed when the Russian commandos stormed that school. Russian officials report now at least 150 people, including children, have died.

Former President Bill Clinton is undergoing heart bypass surgery. The 58-year-old went to the hospital yesterday after complaining of chest pains. Sources say that his surgery will probably take place tomorrow.

Now that the Bahamas have taken a beating from Hurricane Frances, it's Florida's turn to hunker down for an onslaught from the Category Three storm. Hurricane warnings are in effect for almost the entire coastline of Florida. The next hurricane...

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Aired September 3, 2004 - 14:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CO-ANCHOR: We're keeping you informed. Miles can keep you informed on that. I can promise you that.
CNN and Miles, the most trusted names in news.

Well, as Frances approaches, Florida officials are ordering the largest evacuation in state history, some 2.5 million people are being told to head inland, and the mass exodus is turning one necessary item, gasoline, into quite a precious commodity.

Sean Callebs reports from West Palm Beach -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: This is a picture that is playing out throughout south Florida: gas stations that are virtually vacant.

A number of service stations, gas stations, convenience stores that provide gas simply running out. A big problem, because there are so many evacuations throughout the state, 2.5 million, the largest evacuations ever.

We arrived at this Cumberland Farms stations awhile ago, and they had gas in virtually all the pumps. One by one, all 12 pumps running dry. For a while, they were simply left with supreme unleaded, the most expensive. A lot of people weren't happy, but they said it was a lot better than nothing.

Let's walk over this way to show you a pretty good microcosm of what this entire state is having to deal with. Frustrated people showing up at the pumps: this individual trying to squeeze the last bit out, getting 59 cents' worth of gas.

And this is really the story. It says, "Sorry, pump out of order."

We asked the operators of this service station how long they thought they'd be able to stay open. We simply got a shrug, as long as possible.

But a network to a degree has developed throughout this area of south Florida, people going on talk radio shows saying where gas is still available.

And the reason this is so important, there will be no more supplies coming into service stations throughout south Florida until after Frances. Authorities are worried about the possibility of a spill, and the damage it could do to the environment.

Sean Callebs, CNN, in Palm Beach County, Florida.

PHILLIPS: And for more hurricane information, you can log onto CNN.com/hurricanes. There you're going to find the storm's projected path, links to emergency information and resources and tips on what you should do during a hurricane.

MILES O'BRIEN, CO-ANCHOR: Within the past half hour, the National Hurricane Center updated its warning on Hurricane Frances. Ed Rappaport is one of the folks there that is paying extra close attention to Frances as she bears down on the coast of Florida.

Ed, good to have you back with us.

The storm is slowing down. A lot of people might say that's great but it isn't necessarily the case, is it?

ED RAPPAPORT, NATIONAL HURRICANE CENTER: Well, there's good news/bad news when the storm slows down. One, the good news is it gives us a little more time to prepare. The bad news is it's nerve wracking, because it takes longer to get here.

And the really bad news is once it gets here it prolongs the impact over the state of Florida.

O'BRIEN: So when it slows down, it does -- obviously can batter the coast for longer. Can it increase the storm surge, as well?

RAPPAPORT: The forward speed slowing isn't necessarily going to increase the storm surge unless that extra time allows the hurricane to restrengthen.

We haven't seen that. There's some mixed messages in what we are getting out of the data. The satellite picture suggests it's strengthening a little, but the aircraft hunter's aircraft reports say that that hasn't happened yet.

O'BRIEN: All right. So far the storm has kind of been knocked down by some shearing winds, as it's called, which dropped it from Category Four to Category Three.

The concern, as I understand it, is as the storm moves toward the Gulf Stream, that warm water in the Gulf Stream could actually kick it up a notch. Is that something that is still a concern?

RAPPAPORT: Yes, there are competing factors here, influences on the hurricane's intensity. One is the wind shear out of the west and the southwest, which would weaken the storm. And the other is the warmer waters it's moving into, which would strengthen it.

Our concern is that the wind shear would go away at the same time that we have those warmer waters. And there's somewhat of an indication of that if you can see on the satellite picture, an expansion of the clouds. That really only happens if the shear is decreasing. So we'll see whether that continues for the next several hours.

O'BRIEN: Ed Rappaport is at the National Hurricane Center. Thank you very much. We'll check in with you later.

The confetti has barely been cleaned from the floor of the Madison Square Garden, but the newly appointed Republican nominee is already burning up the campaign trail.

During a stop last hour in Wisconsin, President Bush quoted new, lower unemployment figures as proof that his economic recovery plan is working. Earlier, Mr. Bush visited the battleground state of Pennsylvania. Later, he goes to Iowa. Bush lost all three of these states in the last election.

Dick Cheney on the move, as well. The vice presidential nominee is in Oregon today. From there, he moves on to Nevada and New Mexico.

In his acceptance speech, Mr. Bush recalled images of the September 11 attacks, told delegates he's learned firsthand that sending Americans into battle is the hardest decision, even when it's the right one.

One Democratic speechwriter says the message was a good one but not that good.

(BEGIN VIDEO CLIP)

MICHAEL WALDMAN, FORMER WHITE HOUSE SPEECHWRITER: I do think that he showed, again, that he believes what he says, at least gives the sense that when he says something, he really means it.

What I thought he needed to do and didn't do, frankly, was lay out a very compelling agenda for a second term. As -- as a Democrat, I was quite relieved by that. I thought he had an opportunity there. The speech was kind of a laundry list of policies, like a State of the Union address, but it didn't cohere.

(END VIDEO CLIP)

O'BRIEN: That's pretty high praise, compared to what a former Bush speechwriter had to say about John Kerry's acceptance comments at his party's convention.

(BEGIN VIDEO CLIP)

DAVID FRUM, FORMER BUSH SPEECHWRITER: It was a strategic disaster of the first order. It was -- because what he did was he introduced himself to America as this war fighting war hero, to an America that had no idea that he'd also been a Vietnam protester.

They found out not from him about his Vietnam protest career. They found out later from other people, and that made everyone think, "He lied to us. He deceived us."

(END VIDEO CLIP) PHILLIPS: Well, the convention ended just a few weeks ago, but the Democratic nominees for the White House aren't exactly resting on their laurels, either.

On the road in Ohio, presidential hopeful John Kerry took a different view of the new unemployment figures, blasting Bush for what the call -- for what he calls, rather, the president's record of failure.

And Kerry says voters should vote for Bush if they think lost jobs mean America is headed in the right direction.

Now Kerry's running mate, John Edwards, is in Green Bay, Wisconsin, today, as part of his two-day campaign swing right through the state.

PHILLIPS: We're going to switch gears and talk about another one of our top stories.

The tragic standoff outside a school in southern Russia continues. A Russia intelligence official says that some of the hostage takers are from Arab countries with possible links to international terrorism or even al Qaeda.

Here to talk about the Chechen rebels and the so-called Arab connection, CNN correspondent Mike Brooks.

I guess -- let's start -- We saw it come over the wires, in effect saying they're Arab mercenaries. Explain the connection here to possibly al Qaeda and training that they might have had.

MIKE BROOKS, CNN CORRESPONDENT: Well, they said there have been 20 militants killed and 10 of those Arab.

We know that there have been foreign fighters in Chechnya for years, but we've never seen -- and possibly trained by al Qaeda and some links to al Qaeda. But we've never seen them involved in any of the operations. They've been in -- they've had a number, undertook a number of hostage situations since 1995, but we've never seen any Arabs actively involved in the situations themselves.

PHILLIPS: All right. So that's still developing.

BROOKS: Yes.

PHILLIPS: Now we've had reports that possibly some of the police officers were killed trying to save a couple of the children. We know it got a little chaotic with regard to command and control.

What happened with the shootout?

BROOKS: Very chaotic. Apparently the negotiations were ongoing. They had negotiated to remove the bodies of about 20 people who were killed during the initial assault from in front of the school.

While they were in the process, they -- they had removed about four of the bodies from in front of the school. We see the graphic here. And during that time it's unsure of whether or not rounds were fired from inside.

And then the children started running out or the children started running out and then they were actually shooting the children, and the troops were shooting back at them, trying to provide cover fire for the children.

At that time the Russians decided to do an emergency assault. They blew some holes in the walls, and then all hell broke loose. And they are still right now, there have been over 600 people injured, 150 of them, at least 150 of them children.

It's just been just a chaotic scene. Command and control just totally broke down. We've seen some of the people from -- the local people from the neighborhood actually grab guns and go in with the troops, room to room search for the rebels that are left inside the school. Just totally chaotic, total chaos.

PHILLIPS: Now in a way, could chaos work in -- for -- to the advantage of those trying to rescue those still inside? Because distraction could be a good thing, right? If they know the building -- we've seen, actually, how they've plotted out so they know where the buildings are and where the hostages are.

Could it work to their advantage being able to distract the hostage takers?

BROOKS: Well, not really, because again, if you have people who are not part of your team that are -- that are going in with you, you don't know who the bad guys are and who the good guys are.

And having been a former operator, I can tell you that when you go in and it's total chaos with smoke and hollering and screaming and then total chaos, when you go in, you want your own team members with you. You don't want some outside people that you don't know their capabilities going in with you, too.

PHILLIPS: So do we know -- You told me the FBI has actually trained the FSB there, the ones that are trying to negotiate with these hostage takers.

Is it working at all? Is it continuing? Are they able -- Do we know by the minute if more women and children are being out, or now is it just closed off?

BROOKS: I seriously doubt if there are any ongoing negotiations right now. When they have to made that emergency assault, the negotiations broke down.

They are -- they were saying they were in a mop up phase. Well, they're more than in a mop up phase. They're still in -- you know, in a crisis situation, because we are still hearing that there are still children hostages in the school, that they have gone out throughout the school. Most of the children were held in a gymnasium, and there had been explosive devices and other things, and the roof of the gymnasium caved in after a bomb apparently went off. We saw a fire earlier.

And what we see here are some of the improvised explosive devices, improvised explosive devices, that they have brought out that they rendered safe.

What it looks to me, Kyra, as you see these...

PHILLIPS: Were they booby traps?

BROOKS: They could have been, yes. And what you see is it looks like plastic explosives with B.B.s and nails. These are made for nothing more than to either kill or maim people who are inside that school. Very -- and the blasting caps there; they've done a good job.

They were concerned that there were booby traps and that's another concern of the entry team when they go in and they're doing a room-to-room search for these insurgents, booby traps, other improvised explosive devices that are there at the school.

PHILLIPS: All right. We'll follow the standoff. Mike Brooks, thank you so much.

BROOKS: Thank you, Kyra.

PHILLIPS: Going to take a quick break. More LIVE FROM right after this.

(COMMERCIAL BREAK)

O'BRIEN: All right. Lots of big stories to cover today, and one of the biggest, of course, comes from Beslan in Russia, where as a result of that hostage siege -- Russian paramilitary forces, military forces moved in on that school where excess of 1,000 children and their parents have been held hostage by Chechen rebels.

The ensuing bloodshed led to several casualties.

ITV correspondent Julian Manyon was on the scene and not only that, he got inside the school in the middle of that fracas. And he spoke just a few moments ago to CNN's Jim Clancy.

Let's listen.

(BEGIN VIDEOTAPE)

JULIAN MANYON, ITV CORRESPONDENT: Well, the situation is this is turning into a greater tragedy than had been initially imagined. Because obviously, when we saw those first pictures of the first children coming out and indeed, in my case, physically saw the children and some of the parents and some of the teachers being rescued.

What -- what you're hearing there is what we believe and hope is mine clearing operations, tremendous explosions taking place from the vicinity of the school.

But when we saw those -- when we saw those events, there was obviously a great deal of hope as the majority of -- the overwhelming majority of the hostages would be released unharmed.

The figures now being given for casualties, I'm afraid, are pretty horrific. These figures are not coming from the government, and they're still unofficial figures.

The two Russian television channels have put the -- the dead among the hostages -- dead among the hostages in the hundreds. One channel has actually said that 500 hostages were killed in these terrible events.

The president of North Ossetia has said that there were just 400 survivors, and we currently believe that there were at least 1,000 hostages in the first place.

So this is really turning, I'm afraid -- yes, we got to the school while the fighting was still going on, and at the moment we managed to get there, the Russians had actually dislodged -- dislodged the hostage takers, the Chechens, from the main school building.

But there still seems to be a number of them just on the other side of the school building, and there was a most extraordinary spectacle. Russia is an extraordinary place in this regard.

That people go forward. They do try to help emergency workers and others, really do try to get stuff in (ph). And there was this extraordinary spectacle of emergency workers trying to put out the fires in the room, the gymnasium, for example, looking for more people to rescue and most of all, rescue the living hostages.

And they were doing these things under fire. The -- the Chechens were still on the other side of the buildings and bullets whistling over our -- their heads.

And indeed, a Russian soldier was hit a few yards way from us. He was hit by a flash -- bullet in the side. And we can't (UNINTELLIGIBLE). And was then helped away by his friends.

It was the most extraordinary scene which unfolded over a period of about an hour or an hour and a half. We'll continue with the firing from this very, very determined, tragic (UNINTELLIGIBLE), one has to say, who were putting up ferocious resistance against Russian Faha (ph), Faha (ph) which includes the use of armored vehicles, one of which had actually charged in the initial assault straight into the courtyard of the school and ended up rammed against the wall of the school.

Others which got around the back and while we were there, were taking on the Chechen rebels with machine guns.

(END VIDEOTAPE)

O'BRIEN: An amazing account: Julian Manyon of ITV talking to CNN's Jim Clancy a little while ago.

Just to bring you up to date, about 400 people that were held hostage did flee to safety as a result of all this.

And our latest report from Ryan Chilcote at the scene indicated there was no more indication of any fighting activity. And some indication, according to Chilcote, that they were de-mining the school, perhaps indicating the siege might be over, but we cannot say that for certain.

It's possible there still may be some Chechen rebels and possibly some hostages inside that school. Unclear whether it's over. We're watching it very closely for you.

Back with more in a moment.

(COMMERCIAL BREAK)

(MUSIC)

PHILLIPS: Well, in every language Gloria Estefan means heart, rhythm and soul, and for the past 20 years her blend of pop and Latin music has translated into tremendous success.

On her new C.D., she gets unwrapped and teams up with music legends like Stevie Wonder, Chrissie Hind for a raw and spiritual musical journey. Her Spanish language C.D., "Amor Y Suerte," is also coming out this month.

It's "Amor Y Suerte," right?

GLORIA ESTEFAN, MUSICIAN: Yes.

PHILLIPS: All right, great.

She's here with me on set in Atlanta.

Wow! What a pleasure.

ESTEFAN: It's a pleasure to be here. Thank you so much.

PHILLIPS: I know we've got a lot of breaking news going on...

ESTEFAN: Yes.

PHILLIPS: And I know you live in Miami. I'm just curious: are you concerned at all? Are you getting the family out of there?

ESTEFAN: Of course I'm concerned. Well, my daughter's with me. My son is in Miami and my mother and my sister.

So I've been on the phone every two seconds, following it very closely, because sometimes the national news is a little behind what the actual local forecasts are giving.

So I'm hoping for the best. I mean, obviously it's a big storm. You have to be ready. We're impacted all the way up the coast, because we have businesses in the treasure coast, in Orlando as well as Miami. But we've got things under control, and hopefully everyone's going to evacuate.

PHILLIPS: Well, if you want to stick -- stick around, we can keep you up to date. All right? You'll have all the latest news here.

ESTEFAN: I have been watching.

PHILLIPS: OK, good.

I want to ask you about your new C.D. in a time of war and there's just, you know, so much hatred going on, and all of this talk about different cultures not getting along.

Then there's you and your music and you have broken down so many barriers. This is your mission in life, isn't it?

ESTEFAN: It is to me. I see myself more of a communicator, really, even than a singer, and I've had the unique opportunity to be able to communicate those thoughts and feelings throughout my life.

This album is very important for that reason, because I do share a lot of the things that I've learned. And I really don't think that we have a problem between the cultures, per se.

It's always the radicals, the extremists in everything, in the religions and the cultures that push that envelope and make us face these things and try to deal with them in a good way. And music has always been a wonderful bridge. And I'm glad to be a part of it in my life.

PHILLIPS: Speaking of music, let's get folks -- let's take a little bit of "Unwrapped," a very spiritual song, I think, very emotional. Let's listen to a little bit and then I want to ask you about it.

ESTEFAN: OK.

PHILLIPS: OK.

(BEGIN AUDIO CLIP)

(MUSIC)

(END AUDIO CLIP)

PHILLIPS: Oh, boy, it just makes you, you've got the whole feel in there. But in this, it is very spiritual. And I'm wanting to know, after your accident, that was really tough. You didn't know what was going to happen.

Did that sort of -- was that life changing for you and sort of inspire this -- this C.D.? ESTEFAN: Most definitely life changing. It was 14 years ago, but I'll tell you, even though I wouldn't want to go through it again, I wouldn't change it. It really gave me a very unique way of living my life. And I don't waste a moment.

And yes, of course, I've always looked at the spiritual side of things. I mean, even though "Come on baby, shake your body, do the conga" was a big hit.

PHILLIPS: Hey, that's spiritual. I guess that could be spiritual.

ESTEFAN: I'll tell you one thing: the most beautiful and euphoric thing is to celebrate with people and dance and, you know, get everything out. So that's fun, too.

But yes, "Unwrapped" in -- this whole album really talks about enjoying your life, really touching the things that unite us all as human beings.

And fortunately, that's what I've been able to do. I think music really does cross boundaries. You don't have to understand the language. Music is a vibration of frequency that can soothe and it can make people, you know, feel great and celebrate together. So all that has become a bigger part of my music as time has gone on.

PHILLIPS: Another song. Let's take a little bit of "One Name." And I want to ask you about Edgar.

ESTEFAN: Oh, yes, of course.

PHILLIPS: OK.

(BEGIN AUDIO CLIP)

(MUSIC)

(END AUDIO CLIP)

PHILLIPS: Tell us about Edgar and one name in the story you tell in this song.

ESTEFAN: Of course. Well, songs are stories, and hopefully they come from something that's real in your life.

And every morning when we'd take Emily to school under the bridge that I crossed to get back to the mainland, because we live on the beach, I would see a man that lived under the bridge, every day.

And I would see him washing his clothes and hanging it and trying to have, you know, a decent existence there. And I would see all of these converging points, people that almost would run him over one day, and so this is really happening.

And it really is kind of symbolic of how in life in one little moment so many different lives can be converging, can be affecting each other without knowing.

And so that's how -- the song talks about being one name, we're all of one name, because really it doesn't matter who you are, what your experience is. We're all here, really, to share this experience, which is the Earth.

And we make an impact on each other, sometimes without even knowing. And I think people, if we paid attention more to that, we really could affect each other in a really positive way.

PHILLIPS: That now that affects your family. Talk about the ultimate love story with your husband. I know you're celebrating your anniversary.

ESTEFAN: Twenty-six years.

PHILLIPS: And your birthday.

ESTEFAN: That's right.

PHILLIPS: You've got Emily, your daughter, and your son -- tell me, if it Nayib.

ESTEFAN: Nayib, yes.

PHILLIPS: Nayib. Where does that name come from?

ESTEFAN: Emilio's father is Lebanese, and it means good person. And it was his great-grandfather's name. And I hoped for that for him, and he certainly has lived up to that till now.

I wanted him to have a bit of his ethnicity. Our kids are quite a mix: they're Spanish; they're Lebanese; Cuban, of course. And I want them to understand. I think it makes you stronger when you know where you come from and all these elements become a part of who you are. And his name was a big part of it.

For a long time he tell people, "My name's Joey," because he couldn't pronounce it. But now he has reclaimed his name, I'm happy to say.

Yes, it was his birthday yesterday, our 26th anniversary. And a lot of special days together.

PHILLIPS: Well, congratulations. "Unwrapped" is the C.D. Look for "Amor Y Suerte."

ESTEFAN: That's right.

PHILLIPS: That's coming out at the end of the month.

ESTEFAN: Yes. And we're on tour, actually. We're playing here in Atlanta tomorrow, and we'll be in the northeast in the next few days, Washington, Philly. So we're all around the country. We've already gone on for a month. It's been great. Really great crowds...

PHILLIPS: Mucho gracias.

ESTEFAN: Very nice.

PHILLIPS: I've been practicing for you.

ESTEFAN: Thank you. That was lovely.

PHILLIPS: I want to go salsa dancing with you sometime, all right?

ESTEFAN: All right.

PHILLIPS: OK, good.

ESTEFAN: I'll teach you some moves.

PHILLIPS: All right.

ESTEFAN: I heard you have some moves.

PHILLIPS: Miles does have some moves, let me tell you.

O'BRIEN: Come on, shake your body, baby, do that conga. You can't control yourself.

ESTEFAN: I know, but I like the dance you were doing before you were on the air.

PHILLIPS: We've got to take a break now. We'll be right back.

(COMMERCIAL BREAK)

O'BRIEN: Well, let's check in with Fred Katayama. We haven't seen much of him today on a busy day. It doesn't mean we don't like him, though.

PHILLIPS: Well, no doubt what's happening in Florida will affect the markets. Right, Fred?

(STOCK REPORT)

O'BRIEN: All right, Fred, enjoy your time off. We appreciate it.

PHILLIPS: What do you think? Should we wrap the show up?

O'BRIEN: I don't know, is that what we're doing? Are we wrapping? Trying -- OK, why don't we read what's in the screen there.

Trying to make sense of a chaotic and tragic situation, a pretty serious story. We'll have the latest on a hostage standoff at a Russian school. Hundreds have been freed now. The real question we have now, is it over? We're not certain.

PHILLIPS: We've got Ryan Chilcote and Mike Brooks working that story. Plus another serious story, bracing for Frances. That hurricane is moving over the Bahamas and heading for Florida. We're going to tell you where it's expected to make landfall. We've got it for you, straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: We are being told now the hostage situation in Russia may be coming to an end. We will have more for you coming up in the next hour. Meanwhile, we can tell you that several hundred hostages got out. Twenty hostage takers have been killed when the Russian commandos stormed that school. Russian officials report now at least 150 people, including children, have died.

Former President Bill Clinton is undergoing heart bypass surgery. The 58-year-old went to the hospital yesterday after complaining of chest pains. Sources say that his surgery will probably take place tomorrow.

Now that the Bahamas have taken a beating from Hurricane Frances, it's Florida's turn to hunker down for an onslaught from the Category Three storm. Hurricane warnings are in effect for almost the entire coastline of Florida. The next hurricane...

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