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McCain, Lieberman Expected to Unveil 9/11 Commission Proposals; U.S. Army Fighting Mehdi Army in Sadr City; Bush Campaigns in Missouri

Aired September 07, 2004 - 12:59   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, CNN ANCHOR: Live this hour, the next move in the war on terror, a new push to implement the 9/11 Commission's recommendations. We're there on Capitol Hill.
MILES O'BRIEN, CNN ANCHOR: Taking it to the streets -- thousands gather in Moscow to vent their anger over the massacre at a Russian school.

PHILLIPS: Close call -- President Clinton could have been weeks away from a heart attack. Are you walking around undiagnosed? What to look for.

O'BRIEN: And a very special delivery -- NASA hires some fancy flyers to catch some rays. We'll shed some light on the mission and the maneuver.

From the CNN Center in Atlanta, I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. It's Tuesday, September 7th. CNN's LIVE FROM starts right now.

Up first this hour, recess is over, such as it was. Now, Congress is back at work for at least three weeks. Next year's budget, hurricane relief, and intel reforms await resolution by lawmakers, who really want to wrap things up so they can get back to campaigning.

CNN's Joe Johns is following all the day's business on Capitol Hill. He joins us with the latest. Hi, Joe.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Hi, Kyra. With election day approaching, Congress is certainly under pressure to do something. The key issue today, the 9/11 Commission's recommendations. Senators John McCain and Joe Lieberman expecting to unveil their proposal, a legislative proposal that essentially would implement many, if not all, of the key recommendations of the 9/11 Commission.

Those include intelligence reform, border and transportation security, information security. There is a real sense of urgency here on Capitol Hill. They say -- many in Congress say something has to be done, among them, the Democratic leader of the United States Senate, Tom Daschle, who took to the floor and talked about it just a little while ago.

(BEGIN VIDEO CLIP)

SEN. TOM DASCHLE (D-SD), MINORITY LEADER: I don't think the Senate should be allowed to leave town until we have acted on all 41 of the recommendations. Certainly, there will be disagreement on some. I know that others have suggested different approaches and different reforms entirely. All of these things deserve debate and discussion, but debate and discussion are meaningless if the 9/11 Commission's recommendations don't receive action.

So, time is of the essence. Every day the Congress spends not doing the 9/11 recommendations is a day we ignore the threat and neglect our most solemn duty as leaders.

(END VIDEO CLIP)

JOHNS: The question, of course: How quickly can all of this get done? Many in Congress say they'd like to see something done by the time the Congress recesses in October.

Of course, there is a rub here on Capitol Hill. The question is: How many people think they can realistically get through a prada (ph) that the United States Senate and the House of Representatives can be satisfied with?

There are some who suggest they may have to take a little bit longer than October. Kyra, back to you.

PHILLIPS: Joe, we know each party definitely has a distinct political agenda. When you start thinking about the 9/11 recommendations, how big of an issue is this going to play as we reach November?

JOHNS: Well, certainly, it's a critical issue, because it's a critical issue for the American public. The issue of safety and security, national security, and intelligence reform we've heard so much about for months, and months, and months, really since September 11, 2001. There is concern, of course, that it will be a major issue in the election, particularly if the Congress does nothing, Kyra.

PHILLIPS: Joe Johns on Capitol Hill, thanks.

O'BRIEN: The economy is one thing, terrorism something else again. That's the implication of a CNN/"USA Today"/ Gallup poll that asked a thousand Americans, most of them registered voters, who would do a better job on various issues: George W. Bush or John Kerry? On terror, 61 percent give the nod to Bush, only 34 percent say Kerry. On Iraq, 54 percent say Bush, 41 percent say Kerry.

The Democrat gets higher marks on domestic issues. Fifty three percent say Kerry would do a better job on healthcare, 49 percent trust him more on the economy, though that's essentially a tie, since the difference is in within the poll's margin of error. Now, this is the second and final day of the incumbent's bus tour of Missouri, a state whose 11 electoral votes he walked away with in 2000.

This morning, Mr. Bush stood amid a sea of waving flags in the Kansas City suburb of Lee Summit. Up next, another "Ask President Bush" even in Sedalia, followed by one more rally in Columbia. Senator Kerry, meanwhile, back in his running mate's home state of North Carolina, reliability Republican territory he's determined to make competitive in 2004. We'll hear more from both camps later this hour.

PHILLIPS: The death today of a U.S. soldier in Baghdad brings 999 -- that's the number of U.S. forces killed in Iraq since the war began. Since this time yesterday, two more foreigners have been taken hostage, and 33 Iraqis, maybe more, have died in clashes in the Baghdad cauldron of Sadr City.

We get the latest now from CNN's Walter Rodgers in Baghdad -- Walter.

WALTER RODGERS, CNN CORRESPONDENT: Hello, Kyra. For the last 24 hours, soldiers of the U.S. Army's First Armored Cavalry have been doing savage battle against Muqtada al-Sadr's Shia rebels in the northeast Baghdad suburb of Sadr City. The Mehdi Army was the same group that was fighting the Americans in Najaf two weeks ago. They were not defeated there. They apparently just disbanded, and they're now attacking the Americans in Sadr City.

As of last night, the fighting was said to be ferocious. It tends to intensify again in the evenings. The Mehdi Army claims that the Iraqi government, the Iraqi interim government reneged on promises for a ceasefire. We're told that at least 25 Iraqis were killed in this fighting -- at least one American soldier.

The general tactics are that the Iraqis run from building to building in this large slum-like area. They fire shoulder-fired rocket-propelled grenades at the American armored vehicles, tanks, and Bradley fighting vehicles, and then they run and duck somewhere else.

So, they are fighting on foot against the Americans, who are in tanks and other armored vehicles. The latest statistics, the latest casualties and fatalities in the war in Iraq, as we went to air, 999 U.S. soldiers killed since this fighting began a year and a half ago. Fifty-two Americans were killed, combat casualties in August alone, 39 in July, 36 in June, and 56 last May.

And as if events don't have a way of spinning out of control when the news is bad here, today we learned that two Italian aid workers, 29-year-old women, have been grabbed and taken hostage, kidnapped. They were working in a hospital in the Baghdad area, when some men walked in wearing Iraqi national guard uniforms. Presumably, they looked legitimate.

And suddenly, these two Italian women, 29-year-old, were snatched and taken. No one knows their whereabouts or their well being at this point -- Kyra.

PHILLIPS: I know you want to talk about the fighting in Fallujah, if you could talk about that. But in addition, with regard to the al-Sadr militia and the fighting that's taking place, is it possible that Grand Ayatollah al-Sistani could be brought in once again to broker a peace deal, like he did in Najaf?

RODGERS: Certainly, that is possible, Kyra. But again, he would have to broker the ceasefire with Prime Minister Ayad Allawi, which is what happened in Najaf two weeks ago. But remember, this fighting is taking place in the Baghdad suburbs, where the Grand Ayatollah Ali al- Sistani is down in Najaf, about 60 or 70 miles south of where we are.

And as you mentioned, Fallujah, we heard just a short while ago that the fighting has intensified in Fallujah. Fallujah is west of Baghdad in the so-called Sunni Triangle. It is a hotbed of hatred for the Americans, so bad, the Americans have not been in that city since last May, but rather, have encircled it.

We were told by military sources that there was firing coming from the insurgent positions inside the city. The Marines launched counter-battery fire, which is to say they fired artillery in the direction from which the Iraqi insurgents were firing, and there were Marine aircraft and other aircraft overhead, again, pouring down fire tonight on that section of Fallujah, from which the Marines had earlier been taking fire -- Kyra.

PHILLIPS: Walter Rodgers, live from Baghdad, thank you.

And we expect Iraq will come up again at a news briefing next hour by Defense Secretary Donald Rumsfeld and Joint Chiefs Chair Richard Myers. That's at 2:00 p.m. Eastern, 11:00 a.m. Pacific. You'll see it live right here on CNN.

O'BRIEN: Well, down but not out. Frances flees Florida and releases its fury across the Southeast. Frances is now a tropical depression. It is pounding Georgia with punishing winds and rain, after leaving Florida in a shambles. Schools are closed in dozens of counties. Half a million are without power in Georgia, a majority right here in the Atlanta area.

Frances is blamed for at least 11 deaths now, eight in Florida, one in Georgia, two in the Bahamas. Floridians reeling from the storm are getting a better sense of the damage now. The latest estimate from Risk Management Solutions puts insured losses in Florida anywhere from $3 billion to $6 billion. Here's how one FEMA official put the damage.

(BEGIN VIDEO CLIP)

ERIC TOLBERT, FEMA RESPONSE DIRECTOR: We're seeing the level of destruction is actually a little bit less than what we saw with Hurricane Charley. It was a lower grade storm. And fortunately for Florida, a lot of the heavy precipitation stayed offshore when the storm stalled near the East Coast.

So, in many ways, it's less than Charley, but it is much more widespread, even into the panhandle of Florida.

(END VIDEO CLIP)

O'BRIEN: All right, let's get the very latest on Frances, such as she is now, as a tropical depression -- Orelon Sidney in the weather center...

(WEATHER REPORT)

O'BRIEN: Thank you very much, Orelon Sidney. Thousands take to the streets in Moscow. Russia's deadly hostage standoff sparked today's massive demonstration. We'll tell you what protesters had to say to Russian leader Vladimir Putin.

Plus, did Bill Clinton's sudden heart surgery make you wonder a little bit about your health? Well, actually, that's a story on genesis -- there we go, there's the heart model. We'll find out what tests you need to have to make sure your heart is not a ticking time bomb.

And then, referring back to that previous video -- there you go -- catching the sun. How scientists are going to try to rope a piece of solar wind, and how it might help us understand the universe.

(COMMERCIAL BREAK)

PHILLIPS: Russia's president is lashing out at Washington in the wake of his country's school massacre. Vladimir Putin says that some U.S. officials are undermining Russia's war on terrorism by holding meetings with Chechen rebel representatives, whom he compares to al Qaeda leader Osama bin Laden.

Now, Russia blames Chechen militants for storming a school in Beslan last week and taking more than a thousand people hostage. At least 338 people were killed, many of them children.

Anger over the school massacre spills into the streets of Moscow today. Thousands upon thousands of Russians are gathering outside the Kremlin in protest, and the government's handling of the crisis that happened.

Joining us from Beslan, CNN's Matthew Chance. What can you tell us about this demonstration, Matthew, and is it, indeed, one of the largest this country has ever seen?

MATTHEW CHANCE, CNN CORRESPONDENT: Well, certainly, across Russia, there have been hundreds of thousands of people, it seems, demonstrating against acts of terrorism in the country. The biggest of those demonstrations took place in Moscow, responding to a call by Vladimir Putin, and also many of them out there protesting against the way it has been handled by the Russian authorities.

Here in Beslan, as well, there's a good deal of anger at the scene of the hostage siege against the Russian government, particularly the local authorities, because there's a sense here that the local people have been misled and lied to even by the local authorities from the outset. For instance, the local authorities were saying just 130 people were involved in this hostage siege when it first began.

It's since emerged that the figure was closer, in fact, to 1,200 people. So, people very angry that they feel that the crisis has been somewhat underplayed by the Russian government. Now, there's also a great deal of grief still being felt here in Beslan.

I just want to step out of the way of the camera for a moment, because even though it's dark here, the local residents of Beslan are still coming out to this school, number one, where the hostage siege was taking place, laying their memorials, paying their respects to the hundreds of dead, many, of course, of whom were children.

They're there now lighting candles at one of the makeshift memorials that have been setup with the sort of everyday items of schoolchildren -- spectacles, shoes, school books, and things like that. They're lighting those candles -- also, interestingly, putting down bottles of water.

Now, they're doing that because one of the things that emerged, one of the terrible cruelties that was suffered by the children inside this school is that for days on end, 50 hours of this hostage siege, they were deprived of any water at all.

And so, they're placing bottles of water at that makeshift shrine, along with all the other shrines here in the school as a mark of respect for those children, many of whom, of course, died in this terrible hostage siege, Kyra.

PHILLIPS: CNN's Matthew Chance live from Beslan. Thanks, Matthew.

O'BRIEN: Bill Clinton is doing fine following a heart surgery, but the former president may have just missed suffering a massive heart attack. Details on his condition prior to the operation are next.

Plus, how's the health of your heart? I bet you thought about that this morning. I sure did. We'll tell you what questions you need to ask, what tests you might call for the next time you visit your doctor's office. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Well, so far, so good -- the word on former President Bill Clinton a day after quadruple bypass surgery. Doctors call the operation successful, and say he should completely recover. He's expected to be moved out of intensive care today. He could be out of the hospital altogether by week's end.

(BEGIN VIDEO CLIP)

DR. CRAIG SMITH, CLINTON'S SURGEON: He's doing just fine this morning. He extamated (ph) yesterday -- got him off the breathing machine yesterday. He's sitting up, talking. He's having a normal amount of discomfort, but he's actually doing just fine.

(END VIDEO CLIP)

O'BRIEN: Doctors say the blockage was so extensive, some arteries over 90 percent clogged, Clinton was perhaps just weeks away from a major heart attack. If you're like me, as you were driving to work today, you were thinking, gee, I wonder if that twinge in my chest is something to worry about. Should I call my doctor? Should I get tested?

We're putting those questions now to our in-house expect, Dr. Sanjay Gupta, who's been working all ends of the clock on this story. Sanjay, good to have you with us.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Thank you.

O'BRIEN: First of all, I know a lot of people saw Larry King on the eve of President Clinton's operation. The president called in, and he had some suggestions for folks out there. Let's listen to a brief excerpt.

(BEGIN VIDEO CLIP)

BILL CLINTON (D), FMR. PRESIDENT OF THE UNITED STATES: I think if people have a family history there and high cholesterol and high blood pressure, they ought to consider the angiogram, even if they don't have the symptoms I had. There is some chance of damage there, but it's like one in a thousand, and I really think it probably saved my life.

(END VIDEO CLIP)

O'BRIEN: All right, the former president's no doctor. Is that good advice, though? Should people be suggesting and requesting angiograms?

GUPTA: Well, I think the president may be onto something there in terms of people certainly getting checked out. The problem with everyone getting angiograms is that the test itself does carry a certain amount of risk to it. You're actually putting an amount of dye into the heart vessels and taking pictures of it, and that can carry some risks.

So, up until this point, Miles, there hasn't been a real indication, if you will, for patients who haven't had any chest pain or any symptoms at all to go ahead and get this test. Having said that, a lot of people have tried to fuel the whole idea of getting tests that are less invasive -- quick CAT scans of the heart, for example -- so that you can get a sense of what your coronary arteries, your heart arteries look like without getting the angiogram itself, Miles.

O'BRIEN: All right, now, there's a test, and you went through this one. I think, what, EBT -- why don't you explain what that one's all about. And is that something that people such as myself should call up my doctor and say, "Sign me up?"

GUPTA: Well, let me say first of all that there is some controversy around this test, and I'll explain that in a second. But what this test basically is, think of it as like a super fast CAT scan. What they're trying to do is look at your heart vessels and see if you have any blockages, or any calcium, or anything that suggests that the heart vessels are diseases in some way. It's really targeted at 30 or 40-somethings who haven't had any symptoms. The controversy, Miles, is that while it's a pretty interesting test and sophisticated technologically, a lot of doctors say it may give you a false sense of security. It may not be sensitive enough.

So, it may give you that false sense of security, and then you may start blowing off your medications, start eating well or not exercising because you think you've got a clean bill of health from the CAT scan. Doctors urge you not to do that either, Miles.

O'BRIEN: It sounds like the same argument you hear on the full body scan, of course. It's an analogous kind of thing. Let's run some numbers by folks for just a moment. If you've had a physical, or if you just, you know, you can stop by and put a quarter in those machines at the drug store and get your blood pressure, for example -- let's talk about blood pressure and what numbers should make you worried enough to call a doctor and seek some assistance.

GUPTA: Yeah, and people do like to focus on numbers. Blood pressure, for example, first of all, 140 for the top number, 90 for the bottom number. If your numbers are that or higher, then you have high blood pressure, and you need to get it checked out. Either treat it with diet or with medication.

Also, I should point out, Miles, an important point, that if you're between 120 and 140 for the top number, or between 80 and 90 for the lower number, they now have a new category called pre-high blood pressure, pre-hypertensive. And that also warrants a trip to the doctor's office. You're most likely not going to be given a medication, but you need to make some lifestyle changes.

Cholesterol, we talk a lot about that. The president's cholesterol was 233 when he left the presidency. Over 200 is considered high cholesterol. That's your total cholesterol. They also have something known as your LDL, your so-called bad cholesterol. You want to keep that one down, below 130, below 129, Miles, specifically.

O'BRIEN: All right, those are things we should all remember, and keep that all in mind as we think about, you know, checking things out. I always have the sense when something like this happens that somewhere -- hard to document -- somebody's life gets saved because of these kinds of things, these very public surgeries.

GUPTA: Yeah, you know, that's a big point. And heart disease is the number one killer of men and women. The thing that strikes doctors -- we talk about this all the time -- that a lot of it is preventable. A lot of it is your genes, no question about that. But a lot of it is preventable. Get your numbers checked. Think about your heart.

If you have chest pain and you're at high risk, go see your doctor, absolutely, Miles.

O'BRIEN: All right, you don't want to feel Bill Clinton's pain, in this case. Sanjay Gupta in New York, thank you very much -- Kyra.

PHILLIPS: Straight ahead, trading accusations on the campaign trail. President Bush stops in Missouri and responds to John Kerry's criticism of his administration's handling of the Iraq war. We're going to tell you what the president said in a live report.

Plus, the government's finances -- find out if the federal deficit will hit yet another record.

(COMMERCIAL BREAK)

O'BRIEN: Record red ink and lost jobs, fodder for the Kerry campaign today, in a state that voted for Bush in a big way in 2000. In Greensboro, North Carolina, the Democratic presidential hopeful said there's a word for budget deficits topping $400 billion, and policies that allegedly encourage outsourcing, and it starts with "W."

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: As the president likes to say, there's nothing complicated about this. I think this whole thing does come down to one letter -- George W. Bush. "W" stands for "wrong" -- wrong directions, wrong choices, and it's time to put it right.

(END VIDEO CLIP)

O'BRIEN: The Bush camp is barnstorming in Missouri today. CNN's Suzanne Malveaux is along for the ride -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Miles, of course, President Bush carried this state by just three percentage points back in 2000. They're not taking any chances on this. They are really trying to rally the party faithful. The president's just southeast of Kansas City in Sedalia. That's where the president trounced Gore by 20 percentage points.

Now, today, the president's message very clear. He's talking about his economic plan. He's talking about the need for medical liability reform. But also, the president clearly responding to some of Kerry's remarks regarding Iraq.

Now, as Kerry had said before, that Iraq is the wrong war, in a wrong place, at the wrong time. Now, today, President Bush reminded voters where that line originated from -- that being the antiwar candidate Howard Dean.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: He woke up yesterday morning with yet another new position. And this one is not even his own. It is that of his one-time rival, Howard Dean. He even used the same words Howard Dean did, back when he supposedly disagreed with him. No matter how many times Senator Kerry flip-flops, we were right to make America safer by removing Saddam Hussein from power.

(END VIDEO CLIP)

MALVEAUX: Now, some see this as the Bush campaign trying to recast Kerry into the man that they had hoped President Bush would run against, that being Howard Dean. Others see this as a genuine change of position in Senator Kerry's choice of his camp.

But rather, either way, the Bush campaign sees this as clearly an opening to make the case they believe President Bush is more consistent when it comes to the war in Iraq, the war on terrorism.

We should also let you know, Miles, that the economy is a very big topic here, a big challenge for the president. You're looking at a state only second to Michigan that had the largest job losses between June and July -- some 23,000 jobs. That is the number that keeps fluctuating, but right now is not looking very good for the Bush administration.

Should also let you know finally that, on our way to this particular city, it is a -- we made a little stop along the way to a company where they were having a picnic, shaking some hands, picked up a hamburger, squirted some mustard on it.

He -- there was a bottle of Heinz ketchup that was also on the table. One of the reporters shouted to him, "Mr. Bush, do you want any ketchup on that hamburger?" to which he said, "I have mustard, thank you." The president making it very clear that he is -- has a bit of a sense of humor, but also sticking very much to his campaign slogan as we head on to Boone County. That is where he lost by less than 400 votes, and that is where he going to try to seal the deal -- Miles?

O'BRIEN: All right, Suzanne Malveaux, why don't you get some fresh cut ribbon fries, and you can have some ketchup, if you like. Thanks very much.

He didn't have to sweat them in the primaries, but today, Dick Cheney is hard at work in Iowa and New Hampshire, telling John Kerry to stick to windsurfing. John Edwards is stumping in Ohio and Illinois -- the latter hosting a fundraising bash for the DNC.

PHILLIPS: New estimates on the nation's budget deficit are out, and they paint a pretty bleak picture. Rhonda Schaffler joins us live from the New York Stock Exchange with all the details -- Rhonda?

RHONDA SCHAFFLER, CNN SR. FINANCIAL CORRESPONDENT: Hi there, Kyra.

Let me throw this figure out: $422 billion. That will be the size of the federal budget deficit by the end of this fiscal year. This is according to a new forecast from the nonpartisan Congressional Budget Office. If correct, that means it would be the biggest shortfall ever.

There is some good news here, though -- $422 billion is $56 billion less than the analysts were predicting earlier this year. Still, over the next decade, the CBO says the deficit will reach $2.3 trillion -- that is trillion with a T -- and it's worse than the $2 trillion forecast in March.

Democrats say the deep deficit is proof that President Bush's economic and tax policies have failed, while Republicans argue that things are improving. When looked at as a percentage of the economy, the deficit is smaller than there were shortfalls under President Reagan -- Kyra?

PHILLIPS: All right, got to check those numbers on Wall Street quickly, Rhonda.

SCHAFFLER: Looking pretty good for investors. Strong gains as investors get back in the market after that long weekend. Easing oil prices helping things out here; crude oil sliding more than $1, below $43 a barrel right now.

Here's what stocks are doing. The Dow Industrial Average is surging, flirting with a triple-digit advance, up 91 points at the moment. Nasdaq is adding one percent. Tech sector getting a boost from Cisco. Its shares are up after a brokerage upgrade of the stock. And Seagate Technology is six percent higher after raising its earning forecast.

That's a quick check on stocks. Still ahead, a new survey paints a mixed picture on the jobs front. I'll tell you who's hiring and who's firing, right after the break. CNN's LIVE FROM coming right back.

(COMMERCIAL BREAK)

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Aired September 7, 2004 - 12:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Live this hour, the next move in the war on terror, a new push to implement the 9/11 Commission's recommendations. We're there on Capitol Hill.
MILES O'BRIEN, CNN ANCHOR: Taking it to the streets -- thousands gather in Moscow to vent their anger over the massacre at a Russian school.

PHILLIPS: Close call -- President Clinton could have been weeks away from a heart attack. Are you walking around undiagnosed? What to look for.

O'BRIEN: And a very special delivery -- NASA hires some fancy flyers to catch some rays. We'll shed some light on the mission and the maneuver.

From the CNN Center in Atlanta, I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. It's Tuesday, September 7th. CNN's LIVE FROM starts right now.

Up first this hour, recess is over, such as it was. Now, Congress is back at work for at least three weeks. Next year's budget, hurricane relief, and intel reforms await resolution by lawmakers, who really want to wrap things up so they can get back to campaigning.

CNN's Joe Johns is following all the day's business on Capitol Hill. He joins us with the latest. Hi, Joe.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Hi, Kyra. With election day approaching, Congress is certainly under pressure to do something. The key issue today, the 9/11 Commission's recommendations. Senators John McCain and Joe Lieberman expecting to unveil their proposal, a legislative proposal that essentially would implement many, if not all, of the key recommendations of the 9/11 Commission.

Those include intelligence reform, border and transportation security, information security. There is a real sense of urgency here on Capitol Hill. They say -- many in Congress say something has to be done, among them, the Democratic leader of the United States Senate, Tom Daschle, who took to the floor and talked about it just a little while ago.

(BEGIN VIDEO CLIP)

SEN. TOM DASCHLE (D-SD), MINORITY LEADER: I don't think the Senate should be allowed to leave town until we have acted on all 41 of the recommendations. Certainly, there will be disagreement on some. I know that others have suggested different approaches and different reforms entirely. All of these things deserve debate and discussion, but debate and discussion are meaningless if the 9/11 Commission's recommendations don't receive action.

So, time is of the essence. Every day the Congress spends not doing the 9/11 recommendations is a day we ignore the threat and neglect our most solemn duty as leaders.

(END VIDEO CLIP)

JOHNS: The question, of course: How quickly can all of this get done? Many in Congress say they'd like to see something done by the time the Congress recesses in October.

Of course, there is a rub here on Capitol Hill. The question is: How many people think they can realistically get through a prada (ph) that the United States Senate and the House of Representatives can be satisfied with?

There are some who suggest they may have to take a little bit longer than October. Kyra, back to you.

PHILLIPS: Joe, we know each party definitely has a distinct political agenda. When you start thinking about the 9/11 recommendations, how big of an issue is this going to play as we reach November?

JOHNS: Well, certainly, it's a critical issue, because it's a critical issue for the American public. The issue of safety and security, national security, and intelligence reform we've heard so much about for months, and months, and months, really since September 11, 2001. There is concern, of course, that it will be a major issue in the election, particularly if the Congress does nothing, Kyra.

PHILLIPS: Joe Johns on Capitol Hill, thanks.

O'BRIEN: The economy is one thing, terrorism something else again. That's the implication of a CNN/"USA Today"/ Gallup poll that asked a thousand Americans, most of them registered voters, who would do a better job on various issues: George W. Bush or John Kerry? On terror, 61 percent give the nod to Bush, only 34 percent say Kerry. On Iraq, 54 percent say Bush, 41 percent say Kerry.

The Democrat gets higher marks on domestic issues. Fifty three percent say Kerry would do a better job on healthcare, 49 percent trust him more on the economy, though that's essentially a tie, since the difference is in within the poll's margin of error. Now, this is the second and final day of the incumbent's bus tour of Missouri, a state whose 11 electoral votes he walked away with in 2000.

This morning, Mr. Bush stood amid a sea of waving flags in the Kansas City suburb of Lee Summit. Up next, another "Ask President Bush" even in Sedalia, followed by one more rally in Columbia. Senator Kerry, meanwhile, back in his running mate's home state of North Carolina, reliability Republican territory he's determined to make competitive in 2004. We'll hear more from both camps later this hour.

PHILLIPS: The death today of a U.S. soldier in Baghdad brings 999 -- that's the number of U.S. forces killed in Iraq since the war began. Since this time yesterday, two more foreigners have been taken hostage, and 33 Iraqis, maybe more, have died in clashes in the Baghdad cauldron of Sadr City.

We get the latest now from CNN's Walter Rodgers in Baghdad -- Walter.

WALTER RODGERS, CNN CORRESPONDENT: Hello, Kyra. For the last 24 hours, soldiers of the U.S. Army's First Armored Cavalry have been doing savage battle against Muqtada al-Sadr's Shia rebels in the northeast Baghdad suburb of Sadr City. The Mehdi Army was the same group that was fighting the Americans in Najaf two weeks ago. They were not defeated there. They apparently just disbanded, and they're now attacking the Americans in Sadr City.

As of last night, the fighting was said to be ferocious. It tends to intensify again in the evenings. The Mehdi Army claims that the Iraqi government, the Iraqi interim government reneged on promises for a ceasefire. We're told that at least 25 Iraqis were killed in this fighting -- at least one American soldier.

The general tactics are that the Iraqis run from building to building in this large slum-like area. They fire shoulder-fired rocket-propelled grenades at the American armored vehicles, tanks, and Bradley fighting vehicles, and then they run and duck somewhere else.

So, they are fighting on foot against the Americans, who are in tanks and other armored vehicles. The latest statistics, the latest casualties and fatalities in the war in Iraq, as we went to air, 999 U.S. soldiers killed since this fighting began a year and a half ago. Fifty-two Americans were killed, combat casualties in August alone, 39 in July, 36 in June, and 56 last May.

And as if events don't have a way of spinning out of control when the news is bad here, today we learned that two Italian aid workers, 29-year-old women, have been grabbed and taken hostage, kidnapped. They were working in a hospital in the Baghdad area, when some men walked in wearing Iraqi national guard uniforms. Presumably, they looked legitimate.

And suddenly, these two Italian women, 29-year-old, were snatched and taken. No one knows their whereabouts or their well being at this point -- Kyra.

PHILLIPS: I know you want to talk about the fighting in Fallujah, if you could talk about that. But in addition, with regard to the al-Sadr militia and the fighting that's taking place, is it possible that Grand Ayatollah al-Sistani could be brought in once again to broker a peace deal, like he did in Najaf?

RODGERS: Certainly, that is possible, Kyra. But again, he would have to broker the ceasefire with Prime Minister Ayad Allawi, which is what happened in Najaf two weeks ago. But remember, this fighting is taking place in the Baghdad suburbs, where the Grand Ayatollah Ali al- Sistani is down in Najaf, about 60 or 70 miles south of where we are.

And as you mentioned, Fallujah, we heard just a short while ago that the fighting has intensified in Fallujah. Fallujah is west of Baghdad in the so-called Sunni Triangle. It is a hotbed of hatred for the Americans, so bad, the Americans have not been in that city since last May, but rather, have encircled it.

We were told by military sources that there was firing coming from the insurgent positions inside the city. The Marines launched counter-battery fire, which is to say they fired artillery in the direction from which the Iraqi insurgents were firing, and there were Marine aircraft and other aircraft overhead, again, pouring down fire tonight on that section of Fallujah, from which the Marines had earlier been taking fire -- Kyra.

PHILLIPS: Walter Rodgers, live from Baghdad, thank you.

And we expect Iraq will come up again at a news briefing next hour by Defense Secretary Donald Rumsfeld and Joint Chiefs Chair Richard Myers. That's at 2:00 p.m. Eastern, 11:00 a.m. Pacific. You'll see it live right here on CNN.

O'BRIEN: Well, down but not out. Frances flees Florida and releases its fury across the Southeast. Frances is now a tropical depression. It is pounding Georgia with punishing winds and rain, after leaving Florida in a shambles. Schools are closed in dozens of counties. Half a million are without power in Georgia, a majority right here in the Atlanta area.

Frances is blamed for at least 11 deaths now, eight in Florida, one in Georgia, two in the Bahamas. Floridians reeling from the storm are getting a better sense of the damage now. The latest estimate from Risk Management Solutions puts insured losses in Florida anywhere from $3 billion to $6 billion. Here's how one FEMA official put the damage.

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ERIC TOLBERT, FEMA RESPONSE DIRECTOR: We're seeing the level of destruction is actually a little bit less than what we saw with Hurricane Charley. It was a lower grade storm. And fortunately for Florida, a lot of the heavy precipitation stayed offshore when the storm stalled near the East Coast.

So, in many ways, it's less than Charley, but it is much more widespread, even into the panhandle of Florida.

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O'BRIEN: All right, let's get the very latest on Frances, such as she is now, as a tropical depression -- Orelon Sidney in the weather center...

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O'BRIEN: Thank you very much, Orelon Sidney. Thousands take to the streets in Moscow. Russia's deadly hostage standoff sparked today's massive demonstration. We'll tell you what protesters had to say to Russian leader Vladimir Putin.

Plus, did Bill Clinton's sudden heart surgery make you wonder a little bit about your health? Well, actually, that's a story on genesis -- there we go, there's the heart model. We'll find out what tests you need to have to make sure your heart is not a ticking time bomb.

And then, referring back to that previous video -- there you go -- catching the sun. How scientists are going to try to rope a piece of solar wind, and how it might help us understand the universe.

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PHILLIPS: Russia's president is lashing out at Washington in the wake of his country's school massacre. Vladimir Putin says that some U.S. officials are undermining Russia's war on terrorism by holding meetings with Chechen rebel representatives, whom he compares to al Qaeda leader Osama bin Laden.

Now, Russia blames Chechen militants for storming a school in Beslan last week and taking more than a thousand people hostage. At least 338 people were killed, many of them children.

Anger over the school massacre spills into the streets of Moscow today. Thousands upon thousands of Russians are gathering outside the Kremlin in protest, and the government's handling of the crisis that happened.

Joining us from Beslan, CNN's Matthew Chance. What can you tell us about this demonstration, Matthew, and is it, indeed, one of the largest this country has ever seen?

MATTHEW CHANCE, CNN CORRESPONDENT: Well, certainly, across Russia, there have been hundreds of thousands of people, it seems, demonstrating against acts of terrorism in the country. The biggest of those demonstrations took place in Moscow, responding to a call by Vladimir Putin, and also many of them out there protesting against the way it has been handled by the Russian authorities.

Here in Beslan, as well, there's a good deal of anger at the scene of the hostage siege against the Russian government, particularly the local authorities, because there's a sense here that the local people have been misled and lied to even by the local authorities from the outset. For instance, the local authorities were saying just 130 people were involved in this hostage siege when it first began.

It's since emerged that the figure was closer, in fact, to 1,200 people. So, people very angry that they feel that the crisis has been somewhat underplayed by the Russian government. Now, there's also a great deal of grief still being felt here in Beslan.

I just want to step out of the way of the camera for a moment, because even though it's dark here, the local residents of Beslan are still coming out to this school, number one, where the hostage siege was taking place, laying their memorials, paying their respects to the hundreds of dead, many, of course, of whom were children.

They're there now lighting candles at one of the makeshift memorials that have been setup with the sort of everyday items of schoolchildren -- spectacles, shoes, school books, and things like that. They're lighting those candles -- also, interestingly, putting down bottles of water.

Now, they're doing that because one of the things that emerged, one of the terrible cruelties that was suffered by the children inside this school is that for days on end, 50 hours of this hostage siege, they were deprived of any water at all.

And so, they're placing bottles of water at that makeshift shrine, along with all the other shrines here in the school as a mark of respect for those children, many of whom, of course, died in this terrible hostage siege, Kyra.

PHILLIPS: CNN's Matthew Chance live from Beslan. Thanks, Matthew.

O'BRIEN: Bill Clinton is doing fine following a heart surgery, but the former president may have just missed suffering a massive heart attack. Details on his condition prior to the operation are next.

Plus, how's the health of your heart? I bet you thought about that this morning. I sure did. We'll tell you what questions you need to ask, what tests you might call for the next time you visit your doctor's office. Stay with us.

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O'BRIEN: Well, so far, so good -- the word on former President Bill Clinton a day after quadruple bypass surgery. Doctors call the operation successful, and say he should completely recover. He's expected to be moved out of intensive care today. He could be out of the hospital altogether by week's end.

(BEGIN VIDEO CLIP)

DR. CRAIG SMITH, CLINTON'S SURGEON: He's doing just fine this morning. He extamated (ph) yesterday -- got him off the breathing machine yesterday. He's sitting up, talking. He's having a normal amount of discomfort, but he's actually doing just fine.

(END VIDEO CLIP)

O'BRIEN: Doctors say the blockage was so extensive, some arteries over 90 percent clogged, Clinton was perhaps just weeks away from a major heart attack. If you're like me, as you were driving to work today, you were thinking, gee, I wonder if that twinge in my chest is something to worry about. Should I call my doctor? Should I get tested?

We're putting those questions now to our in-house expect, Dr. Sanjay Gupta, who's been working all ends of the clock on this story. Sanjay, good to have you with us.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Thank you.

O'BRIEN: First of all, I know a lot of people saw Larry King on the eve of President Clinton's operation. The president called in, and he had some suggestions for folks out there. Let's listen to a brief excerpt.

(BEGIN VIDEO CLIP)

BILL CLINTON (D), FMR. PRESIDENT OF THE UNITED STATES: I think if people have a family history there and high cholesterol and high blood pressure, they ought to consider the angiogram, even if they don't have the symptoms I had. There is some chance of damage there, but it's like one in a thousand, and I really think it probably saved my life.

(END VIDEO CLIP)

O'BRIEN: All right, the former president's no doctor. Is that good advice, though? Should people be suggesting and requesting angiograms?

GUPTA: Well, I think the president may be onto something there in terms of people certainly getting checked out. The problem with everyone getting angiograms is that the test itself does carry a certain amount of risk to it. You're actually putting an amount of dye into the heart vessels and taking pictures of it, and that can carry some risks.

So, up until this point, Miles, there hasn't been a real indication, if you will, for patients who haven't had any chest pain or any symptoms at all to go ahead and get this test. Having said that, a lot of people have tried to fuel the whole idea of getting tests that are less invasive -- quick CAT scans of the heart, for example -- so that you can get a sense of what your coronary arteries, your heart arteries look like without getting the angiogram itself, Miles.

O'BRIEN: All right, now, there's a test, and you went through this one. I think, what, EBT -- why don't you explain what that one's all about. And is that something that people such as myself should call up my doctor and say, "Sign me up?"

GUPTA: Well, let me say first of all that there is some controversy around this test, and I'll explain that in a second. But what this test basically is, think of it as like a super fast CAT scan. What they're trying to do is look at your heart vessels and see if you have any blockages, or any calcium, or anything that suggests that the heart vessels are diseases in some way. It's really targeted at 30 or 40-somethings who haven't had any symptoms. The controversy, Miles, is that while it's a pretty interesting test and sophisticated technologically, a lot of doctors say it may give you a false sense of security. It may not be sensitive enough.

So, it may give you that false sense of security, and then you may start blowing off your medications, start eating well or not exercising because you think you've got a clean bill of health from the CAT scan. Doctors urge you not to do that either, Miles.

O'BRIEN: It sounds like the same argument you hear on the full body scan, of course. It's an analogous kind of thing. Let's run some numbers by folks for just a moment. If you've had a physical, or if you just, you know, you can stop by and put a quarter in those machines at the drug store and get your blood pressure, for example -- let's talk about blood pressure and what numbers should make you worried enough to call a doctor and seek some assistance.

GUPTA: Yeah, and people do like to focus on numbers. Blood pressure, for example, first of all, 140 for the top number, 90 for the bottom number. If your numbers are that or higher, then you have high blood pressure, and you need to get it checked out. Either treat it with diet or with medication.

Also, I should point out, Miles, an important point, that if you're between 120 and 140 for the top number, or between 80 and 90 for the lower number, they now have a new category called pre-high blood pressure, pre-hypertensive. And that also warrants a trip to the doctor's office. You're most likely not going to be given a medication, but you need to make some lifestyle changes.

Cholesterol, we talk a lot about that. The president's cholesterol was 233 when he left the presidency. Over 200 is considered high cholesterol. That's your total cholesterol. They also have something known as your LDL, your so-called bad cholesterol. You want to keep that one down, below 130, below 129, Miles, specifically.

O'BRIEN: All right, those are things we should all remember, and keep that all in mind as we think about, you know, checking things out. I always have the sense when something like this happens that somewhere -- hard to document -- somebody's life gets saved because of these kinds of things, these very public surgeries.

GUPTA: Yeah, you know, that's a big point. And heart disease is the number one killer of men and women. The thing that strikes doctors -- we talk about this all the time -- that a lot of it is preventable. A lot of it is your genes, no question about that. But a lot of it is preventable. Get your numbers checked. Think about your heart.

If you have chest pain and you're at high risk, go see your doctor, absolutely, Miles.

O'BRIEN: All right, you don't want to feel Bill Clinton's pain, in this case. Sanjay Gupta in New York, thank you very much -- Kyra.

PHILLIPS: Straight ahead, trading accusations on the campaign trail. President Bush stops in Missouri and responds to John Kerry's criticism of his administration's handling of the Iraq war. We're going to tell you what the president said in a live report.

Plus, the government's finances -- find out if the federal deficit will hit yet another record.

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O'BRIEN: Record red ink and lost jobs, fodder for the Kerry campaign today, in a state that voted for Bush in a big way in 2000. In Greensboro, North Carolina, the Democratic presidential hopeful said there's a word for budget deficits topping $400 billion, and policies that allegedly encourage outsourcing, and it starts with "W."

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: As the president likes to say, there's nothing complicated about this. I think this whole thing does come down to one letter -- George W. Bush. "W" stands for "wrong" -- wrong directions, wrong choices, and it's time to put it right.

(END VIDEO CLIP)

O'BRIEN: The Bush camp is barnstorming in Missouri today. CNN's Suzanne Malveaux is along for the ride -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Miles, of course, President Bush carried this state by just three percentage points back in 2000. They're not taking any chances on this. They are really trying to rally the party faithful. The president's just southeast of Kansas City in Sedalia. That's where the president trounced Gore by 20 percentage points.

Now, today, the president's message very clear. He's talking about his economic plan. He's talking about the need for medical liability reform. But also, the president clearly responding to some of Kerry's remarks regarding Iraq.

Now, as Kerry had said before, that Iraq is the wrong war, in a wrong place, at the wrong time. Now, today, President Bush reminded voters where that line originated from -- that being the antiwar candidate Howard Dean.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: He woke up yesterday morning with yet another new position. And this one is not even his own. It is that of his one-time rival, Howard Dean. He even used the same words Howard Dean did, back when he supposedly disagreed with him. No matter how many times Senator Kerry flip-flops, we were right to make America safer by removing Saddam Hussein from power.

(END VIDEO CLIP)

MALVEAUX: Now, some see this as the Bush campaign trying to recast Kerry into the man that they had hoped President Bush would run against, that being Howard Dean. Others see this as a genuine change of position in Senator Kerry's choice of his camp.

But rather, either way, the Bush campaign sees this as clearly an opening to make the case they believe President Bush is more consistent when it comes to the war in Iraq, the war on terrorism.

We should also let you know, Miles, that the economy is a very big topic here, a big challenge for the president. You're looking at a state only second to Michigan that had the largest job losses between June and July -- some 23,000 jobs. That is the number that keeps fluctuating, but right now is not looking very good for the Bush administration.

Should also let you know finally that, on our way to this particular city, it is a -- we made a little stop along the way to a company where they were having a picnic, shaking some hands, picked up a hamburger, squirted some mustard on it.

He -- there was a bottle of Heinz ketchup that was also on the table. One of the reporters shouted to him, "Mr. Bush, do you want any ketchup on that hamburger?" to which he said, "I have mustard, thank you." The president making it very clear that he is -- has a bit of a sense of humor, but also sticking very much to his campaign slogan as we head on to Boone County. That is where he lost by less than 400 votes, and that is where he going to try to seal the deal -- Miles?

O'BRIEN: All right, Suzanne Malveaux, why don't you get some fresh cut ribbon fries, and you can have some ketchup, if you like. Thanks very much.

He didn't have to sweat them in the primaries, but today, Dick Cheney is hard at work in Iowa and New Hampshire, telling John Kerry to stick to windsurfing. John Edwards is stumping in Ohio and Illinois -- the latter hosting a fundraising bash for the DNC.

PHILLIPS: New estimates on the nation's budget deficit are out, and they paint a pretty bleak picture. Rhonda Schaffler joins us live from the New York Stock Exchange with all the details -- Rhonda?

RHONDA SCHAFFLER, CNN SR. FINANCIAL CORRESPONDENT: Hi there, Kyra.

Let me throw this figure out: $422 billion. That will be the size of the federal budget deficit by the end of this fiscal year. This is according to a new forecast from the nonpartisan Congressional Budget Office. If correct, that means it would be the biggest shortfall ever.

There is some good news here, though -- $422 billion is $56 billion less than the analysts were predicting earlier this year. Still, over the next decade, the CBO says the deficit will reach $2.3 trillion -- that is trillion with a T -- and it's worse than the $2 trillion forecast in March.

Democrats say the deep deficit is proof that President Bush's economic and tax policies have failed, while Republicans argue that things are improving. When looked at as a percentage of the economy, the deficit is smaller than there were shortfalls under President Reagan -- Kyra?

PHILLIPS: All right, got to check those numbers on Wall Street quickly, Rhonda.

SCHAFFLER: Looking pretty good for investors. Strong gains as investors get back in the market after that long weekend. Easing oil prices helping things out here; crude oil sliding more than $1, below $43 a barrel right now.

Here's what stocks are doing. The Dow Industrial Average is surging, flirting with a triple-digit advance, up 91 points at the moment. Nasdaq is adding one percent. Tech sector getting a boost from Cisco. Its shares are up after a brokerage upgrade of the stock. And Seagate Technology is six percent higher after raising its earning forecast.

That's a quick check on stocks. Still ahead, a new survey paints a mixed picture on the jobs front. I'll tell you who's hiring and who's firing, right after the break. CNN's LIVE FROM coming right back.

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