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Italian Female Hostages Released; Captured CNN Producer Released; Bush, Kerry Prepare for Debate; Floridians in the Dark After Jeanne; SpaceShipOne to Compete for X Prize Tomorrow

Aired September 28, 2004 - 13:00   ET

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


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


KYRA PHILLIPS, CNN ANCHOR: The countdown to the showdown: Find out how each contender is preparing for Thursday's debate and how they're doing in the latest polls.
Hostage release in Iraq: Two Italian women are safe and sound. We're live from Rome.

ED LAVANDERA, CNN CORRESPONDENT: I'm Ed Lavandera live in Melbourne, Florida, where the sun is out, it's hot, and people are learning the value of having good friends.

MILES O'BRIEN, CNN ANCHOR: I'm Miles O'Brien live in Mojave, California. A civilian team flying a civilian rocket is trying to make it to space tomorrow, hoping they're on their way to winning a $10 million prize -- Kyra?

PHILLIPS: All right. We'll see if Miles is in that seat.

From the CNN Center in Atlanta, I'm Kyra Phillips. It's Tuesday, September 28th. CNN's LIVE FROM starts right now.

We begin this hour with a moment of joy -- that's the Italian prime minister's take on the release of two Italian aid workers taken hostage three weeks ago in Iraq.

We get the details from CNN's Alessio Vinci now in Rome. What's the latest, Alessio?

ALESSIO VINCI, CNN ROME BUREAU CHIEF: Hello, Kyra.

Well, first of all, in addition to the two Italian aid workers, Italian Prime Minister Berlusconi also confirmed the fact that two additional aid workers, Iraqi nationals, have been released, as well, this afternoon in Iraq.

The four were abducted in Iraq, on September the 7th. Italian prime minister confirmed -- they've released a brief statement earlier today saying, quote, "Finally, a moment of joy. The two girls are well and will be able to return to their loved ones tonight."

And indeed, we understand from Italian government officials here that they are making -- they are preparing themselves for welcoming the two Italian aid workers here in Rome at some point later tonight. Simona Pari and Simona Torretta have been working in Iraq for quite some time -- one of them already in the early 1990s. And there was quite some shock here in Italy when they were abducted on September the 7th, because people here couldn't believe the fact that these two women, who not only were women but also were working there for the good of the Iraqi people, had been -- had been kidnapped.

The Italian prime minister later addressed the Italian parliament, giving sketchy details about how the release came about. He said that he wanted to thank the intelligence agencies here in Italy. They were at least 16 different negotiations going on throughout these past three weeks to try to secure the release of these two aid workers.

But he also thanked the intelligence agencies of Iraq's neighboring countries, including Jordan, he said, who had play a special role. Indeed, the Jordan King Abdullah was in Rome here today.

It was the king who yesterday, in an interview with an Italian leading newspaper, "Corriere della Sera," had mentioned that the two Italian aid workers were alive.

That interview was followed by reports coming from Kuwait, another leading newspaper there reporting that indeed not only they were alive but a ransom of about $1 million had been paid, and therefore the two hostages -- former hostages would going to be released at some point in the coming days.

We do not have any confirmation that any ransom has been paid. But we do know, however, is that the Italian Red Cross has been involved. Because the prime minister said that the four former hostages had been handed over to the Italian Red Cross, leading us to believe that there was no military or no kind of military raid involved in securing the release of the four people.

Back to you, Kyra.

PHILLIPS: Well, Alessio, have these women made any mention of returning back to work and continuing on as aid workers?

VINCI: Well, we do know that they had only a brief chance to speak with the Italian prime minister.

I was watching Italian television, reporting live, most of the Italian channels, of course, broke into the programming to give the news that they had been released. Again, we understand even the families have spoken to the former hostages, so we don't really know what they have said.

We know that Italian Prime Minister Berlusconi has spoken briefly with them, congratulating them for their relief. And of course, we're waiting for them to return back tonight here in Rome, to hear more what they say about their captivity, of course, but also what their future plans are.

PHILLIPS: Alessio Vinci, live from Rome, thanks so much. Britain loses two of its troops in the fight for Iraq. Two soldiers from were killed in an ambush near Basra. Their military convoy was attacked. One of the nearly 1,200 total coalition military fatalities since the Iraq war began. Sixty-eight are from Britain.

Still, the head of the U.S. Central Command says that negative reports on the war effort in Iraq aren't telling the whole story about the progress that's been made.

(BEGIN VIDEO CLIP)

GEN. JOHN ABIZAID, COMMANDER, U.S. CENTRAL COMMAND: I do think that there is a general lack of understanding in the United States of how things are going. The images that are on the screens are almost always of negative images, as opposed to the important and positive steps that are taken.

(END VIDEO CLIP)

PHILLIPS: Prime Minister Tony Blair defended Britain's role in the Iraq war today. His remarks came during what was seen as a crucial speech to his Labor Party at a conference that's likely to be the last such gathering before general election expected next spring.

The address had barely begun when Blair was interrupted by anti- war protesters shouting, "You've got blood on your hands."

Blair refused to apologize for backing the U.S.-led war, as many had urged him to do. But conceded some of the intelligence that led to the war was wrong. He added that he could not apologize for removing Saddam Hussein from power.

Meanwhile, words of warning from Jordan's King Abdullah, considered a U.S. ally in the Mideast. The king, who was visiting Europe, told the French newspaper "Le Figaro" that he believes only extremists will win if Iraqi elections are held as planned in January. He's quoted as saying it appears impossible to organize elections that will be seen as undisputed amid the current chaos in Iraq.

King Abdullah also expressed concern that excluding certain dangerous areas could result in even deeper division.

I must say, we are all relieved and grateful today. Our newsroom cheered when we got word that our CNN producer, Riad Ali, was released by his captors in Gaza City.

You may recall it was yesterday that Riad was abducted while traveling with CNN correspondent Ben Wedeman and photographer Mary Rogers in a taxicab through city streets.

We have the latest update now from CNN's Guy Raz. He's in Jerusalem.

Guy, what can you tell us about the release?

GUY RAZ, CNN CORRESPONDENT: Well, Kyra, as you mentioned, after a very tense 24-hour period, our colleague, Riad Ali, was finally released from captivity.

Now just a few minutes ago, Kyra, Riad spoke on the steps of the Palestinian Authority's main police headquarters in Gaza City, where he was handed over by his captors. He made a brief statement, where he thanked those involved with winning his release.

(BEGIN VIDEO CLIP)

RIAD ALI, CNN PRODUCER: All I would like to say is to thank all of those people who were involved in my release. I would like to thank President Arafat, the Palestinian prime minister, many Israeli Arab figures, of course, CNN. CNN had made a lot of efforts to ensure my release. I would like to thank all of these people.

The only thing that I am waiting for now is to see my family, to see my kids, to see my wife. They are waiting for me up in the north in my village. So thanks to all of you.

(END VIDEO CLIP)

RAZ: Kyra, now, in that statement, shortly after Riad also said that his abductors had initially told him they were members of the Al Aqsa Martyrs Brigades. Now, that is a militant wing of Palestinian President Yasser Arafat's Fatah movement.

And we have spoken to representatives from Fatah, who deny that any of their members were involved with this at all. And as you heard Riad say, Palestinian President Yasser Arafat was very much involved in trying to win Riad's release.

Now, he also said he was interrogated by his abductors. They asked him about his background. Riad is an Arab -- a member of an Arabic-speaking minority, the Druze community, a non-Jewish community inside Israel. It's a community that is very much involved in the civic and a civil society here, a community that serves in the Israeli army, as well.

But he was released, he said, after his captors realized that there wasn't much information that he could give to them.

Now, he also said that he will immediately return to his family. They live in the north of Israel. He is -- after quite a harrowing 24-hour period, we are all sure that Riad Ali will be quite happy to see members of his family -- Kyra.

PHILLIPS: Guy, real quickly, remember yesterday that the captors had asked for him by name. Do we know if he was taken by these men because of a story he was working on, some phone calls that he had made? Do we know why it happened initially?

RAZ: Well, Kyra, that's a question that has confounded all of us for the past 24 hours. Not just here in our bureau in Jerusalem, but obviously in our headquarters in Atlanta and all over this region.

Various Palestinian factions were very deeply involved in trying to win Riad's release. It is unclear, and it still is unclear, who actually abducted him, why they abducted him, what they wanted from him.

So at this point, it's impossible to know, really, what was behind that abduction, until we can talk to Riad personally and find out exactly what was behind it -- Kyra.

PHILLIPS: We look forward to that. CNN's Guy Raz in Jerusalem, thanks.

It's five weeks until election day. Do you know where your candidates are? President Bush is at his Texas ranch. John Kerry at a Wisconsin resort. And you won't see much of either one until Thursday night. That's when they share a stage in Coral Gables, Florida, for the first of three Q&A events in the next two weeks.

Two days out, Bush is still riding high in the polls, including this one, showing 54 percent of Americans approve his performance in office. That's his highest job approval number since January.

Almost one in five registered voters say the debates will be a factor in how they cast their ballot. It only adds to pressure on both camps, of course, and we're going to hear from both, starting with CNN's Elaine Quijano. She's in Crawford -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Kyra.

A lot at stake in this first debate. President Bush here in Crawford, Texas, at his ranch, continuing with his debate preparations. Now over the weekend, he had a chance to do some more formal sessions, really, practice sessions where he had the help of Republican Senator Judd Gregg from New Hampshire, who was playing the role of Senator Kerry.

But the president yesterday actually took some time away from debate preparations to hit the campaign trail briefly. He traveled to Ohio, made a couple of campaign stops there, first in Springfield, then in West Chester.

And while in the trail, he mocked his opponent, Senator John Kerry, saying the Senator could probably debate himself for 90 minutes because of what the president says is his shifting position on Iraq.

As for the debates themselves, the expectations game is already on. Bush advisers are playing up Senator Kerry's experience, saying the president will hold his own.

(BEGIN VIDEO CLIP)

KAREN HUGHES, BUSH CAMPAIGN ADVISOR: He spent 20 years in the United States Senate. He doesn't have much of a record of achievement there. But he's had lots of debates there. That's what senators do; they stand on the floor of the senate and they debate. He had famous debates against Governor Weld in his campaign for Senate in Massachusetts.

President Bush -- presidents don't really debate. They listen; they make decisions. But they don't -- aren't engaged on debates on a regular basis.

That said, I believe at the end of Thursday night, we'll have a full debate of the issue, including the critical issue of the war against terrorism. And I believe the American people will, at the end of the debate, know where President Bush stands.

(END VIDEO CLIP)

QUIJANO: Now, aides say the president is comfortable with the pace of his debate preparations. They're saying they don't feel rushed at this point. They also say there won't be any more of formal sessions now. It will just be sort informal conversations. They say now, Kyra, it is just a matter of fine-tuning -- Kyra.

PHILLIPS: Elaine Quijano, thanks so much.

Now to Wisconsin, where the Kerry camp faces one undebatable fact, the face-to-face match-ups with President Bush will be Kerry's last, best chance to win over disaffected voters.

Here's CNN's Frank Buckley.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN CORRESPONDENT (voice-over): As Senator John Kerry campaigned for votes in Wisconsin...

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: America needs a real conversation about our future.

BUCKLEY: ... a new CNN/"USA Today"/Gallup poll was indicating President Bush has an eight-point lead now among likely voters, an 11- point lead among registered voters.

Kerry, who was at a rural Wisconsin resort primarily to prepare for Thursday's debate, used his one campaign stop to continue his criticism of President Bush on Iraq.

KERRY: The mission was not accomplished when he said it. He didn't know it and didn't understand it. It's not accomplished today, and he's still trying to hide from the American people.

BUCKLEY: But the new poll suggests criticism of the war in Iraq may not be working. More Americans believe President Bush can better handle Iraq. On terrorism, 61 percent believe in Bush to 34 percent for Kerry.

Kerry aides say the criticism on Iraq will continue, believing it helps Kerry make the case that President Bush can't fix problems if he won't acknowledge them, an argument they can also apply to domestic issues, like the economy.

KERRY: Income's going down, and he just doesn't care. He's out of touch with the average American's problems, because he keeps fighting for Halliburton and Enron and all those big companies. And we need a president who fights for the average person. BUCKLEY (on camera): Kerry campaign officials are dismissive of the poll numbers, saying they are out of sync with other recent national polling.

Meanwhile, Senator Kerry himself is hunkered down with adviser, continuing to prepare for the debate. No public events are scheduled.

Frank Buckley, CNN, Dodgeville, Wisconsin.

(END VIDEOTAPE)

PHILLIPS: Sometimes the number 50 is just half of 100. Sometimes it's a mental milestone that freaks out the markets, consumers and even the Saudis. Oil price sticker shock and you, coming up.

Also, it's a different world now: no school, no power, no water. The latest on Florida efforts to get back to normal after Hurricane Jeanne.

(BEGIN VIDEO CLIP)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): A veil of secrecy has often shrouded the Oval Office. And when it comes to Kennedy's medical history, there was something lurking beneath the surface.

UNIDENTIFIED MALE: There's only one word for it, it's weird.

(END VIDEO CLIP)

PHILLIPS: Peak inside JFK's briefcase, full of blues, reds, and other drugs, from the official staff to "Dr. Feelgood." Get the straight dope on the medical secrets of Camelot.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Well, the storm formerly known as Jeanne is still dumping rain on the mid-Atlantic seaboard and still being cursed from West Virginia to West Palm Beach.

CNN meteorologist Jacqui Jeras has the latest from the Weather Center -- Jacqui.

(WEATHER REPORT)

PHILLIPS: Jacqui, thank you.

And the water's still high, and the power's still out in parts of Georgia this hour, as Tropical Storm Jeanne came in like a lion and went out like a lion while dumping three to five inches of rain and toppling trees with wind gusts of 50 Miles an hour. You can see the effects. In the South Georgia town of Folkston, torrents watched caskets out the ground and also made scores of roads undriveable.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The water was an inch deep, then two inches deep. Than the next thing I know, it's a foot deep, a foot and a half, two feet, and my car just started floating. The engine went dead.

(END VIDEO CLIP)

PHILLIPS: Jeanne spawned tornadoes in the Carolinas, in which at least one person was killed. Many more were terrified.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: At first it sounded hike a real loud whistle. Like they say a train, but it's like a train that would fall off. So when I heard it, I got up, and I was like, "Well, what's going on?"

And I glanced out the window. And I saw everything, debris going, and I just knew what was happening.

(END VIDEO CLIP)

PHILLIPS: Jeanne was the sixth former tropical storm or former tropical storm to hit the Carolinas this year.

More than a million Floridians are waiting for the lights to come back on still and hoping another hurricane doesn't blow through in the meantime.

CNN's Ed Lavandera is in Melbourne. What's the latest, Ed?

LAVANDERA: Well, Kyra, the sun is out. It's hot. There are long lines for ice and water, lines at gas stations. There's a lot of traffic -- not all of the traffic lights are back. It's a slow process moving around this area.

And many people around here are just learning the value of having a good friend.

(BEGIN VIDEOTAPE)

PATRICIA GREELEY (ph), HURRICANE VICTIM: This is the worst room. Everything was destroyed in here.

LAVANDERA (voice-over): Patricia Greeley (ph) was forced out of her home in Micco, Florida, about three weeks ago, after Hurricane Frances tore apart the roof and mold started infesting the walls. She looked for a motel to live in, when her best friend decided that was a bad idea.

GREELEY (ph): Thank God I have her. I mean, she let me stay with her.

LAVANDERA: So, Patricia moved in with Beverly Peza (ph), who lives just a few blocks away. But then, Hurricane Jeanne struck.

BEVERLY PEZA (ph), HURRICANE VICTIM: This was the garage.

LAVANDERA: This time, it was Beverly's home that took the destructive lashing.

PEZA (ph): It's all water damaged all the way through.

LAVANDERA: These women met two years ago while walking their dogs. At the time, their husbands had just passed away. A friendship is what they desperately needed in life, just like they need now.

GREELEY (ph): The problem is here with these storms people are getting very, very depressed. Very depressed. I know I am. I'm depressed. I mean, even though I know we're -- our lives are here. But it's just getting everything together is the worst part.

LAVANDERA: After two hurricanes and two destroyed homes, they couldn't imagine getting though this ordeal alone.

PEZA (ph): We made it.

GREELEY (ph): We made it!

PEZA (ph): ... two years.

GREELEY (ph): We made it.

PEZA (ph): It just goes to show you, old broads make it.

GREELEY (ph): Speak for yourself.

PEZA (ph): Old broads make it!

(END VIDEOTAPE)

LAVANDERA (on camera): Well, at least they have something to laugh about at this point in time. There are hundreds of thousands people who aren't really laughing.

As we understand there are still almost a million people without power across the state of Florida. And officials say it could take up to three weeks before all of that power is turned back on -- Kyra.

PHILLIPS: Ed Lavandera, live from Melbourne, Florida, thank you.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, our old buddy Miles O'Brien out in the Mojave Desert, hanging out with the guys who want to take the $10 million X Prize.

D.C. cops say a pregnant woman was causing a disturbance on a cell phone and then resisted arrest. Did what happened next cross the line?

What to watch for in the big debate. The last-minute preps and plans from both camps, tomorrow on LIVE FROM.

We'll be right back.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (voice-over): Your next surgeon may have a rather cold exterior, because it's a robot. Gary Guthart is one of the pioneers of telerobotics, a doctor using robotic arms to perform an operation by remote control.

GARY GUTHART, INTUITION SURGEON INC.: In this case, all of the intelligence and decision-making is coming from the surgeon, if possible.

UNIDENTIFIED MALE: Telerobots were first designed for handling hazardous materials. Now they offer people in rural areas access to surgeons in big cities.

Perhaps the best example of what telerobots can do is removing a cancerous prostate. Guthart says one day telerobots could help patients have the kind of bypass surgery President Bill Clinton had. It's very precise, and because the robot's hands are smaller than a human's, minimally invasive. As long as people can get past the weirdness factor.

GUTHART: Given the choice of a long incision and a lengthy recovery time, or small incisions and rapid recovery, most people choose rapid recovery, when they ask what the risks are and what the benefits are.

(END VIDEOTAPE)

PHILLIPS: The race to send people to space heats up tomorrow. That's when the designer of the spacecraft SpaceShipOne sets off for his first of two flights needed to win the $10 million X Prize.

It begins in Mojave, California. And of course being that's where Miles is.

All week?

O'BRIEN: Wouldn't miss it for the world. Now I'm going to come home for a little while.

But the second attempt, if all goes well tomorrow, will be on October 4, which happens to be the anniversary -- I know you know this, Kyra -- of the launch of Sputnik in 1957.

Nevertheless, this particular attempt tomorrow is the first time somebody will engage in an official flight in the Ansari X Prize competition. A $10 million purse will go to the first team to fly a spacecraft to the threshold of space -- that's 100 kilometers, 62 miles -- and back, in a vehicle that can carry three people.

Now you may recall back in June, Burt Rutan's team -- here are scaled compositions in Mojave -- flew SpaceShipOne to space, becoming the first civilian craft to do just that, Mike Melville becoming the first civilian astronaut.

That was a flight test. That had nothing to do with the Ansari X Prize. They've since then been working out a few bugs that occurred in that flight. And say now they're quite ready to make this attempt and fly those two flights, well within the two lots allotted by the $10 million prize rules.

Now, the man behind all of this, the founder of the X Prize, is Peter Diamandis, a man who has been pushing for entrepreneurs in space, civilian access to space, since he can remember, really, since he was about 9 years old.

This has got to be kind of a tense moment and an exciting moment for you, after all these years, to finally get to the point where you have an official attempt.

PETER DIAMANDIS, PRESIDENT, X PRIZE FOUNDATION: It's actually not tense. We have a fantastic team of people here really working to put on this event.

And folks in the listening audience can actually come to our Web site, xprize.org, and see it live tomorrow from about 6:00 a.m. to 9:00 or come out to Mojave for $20 a car and see the flight.

O'BRIEN: All right. You can start at the X Prize site, drift over to CNN if you like. Stay on the X Prize site.

But you might want to participate in this. This is just one of several teams out there that are vying for this prize. You see behind us some mockups of some of the attempts.

This one comes from a group called Suborbital Corporation. How far along are they?

DIAMANDIS: We've got 26 teams from seven countries. This is, actually, our Russian team. They have a full-scale vehicle under construction right outside of Moscow. They're teamed with a company called Space Adventures. And they're looking at making flights in the next year or two.

O'BRIEN: And then over here, this one, this was an attempt -- a team from Canada, the Da Vinci Project. They were going to fly right around this time frame but have had a delay.

DIAMANDIS: They have -- this is a vehicle that's lofted to 80,000 feet with a helium balloon, and then it drops it and lights its engines. And they're looking to fly by the end of this month. And if they do, if Rutan's team has won, then they'll be the first Canadian team to make it.

O'BRIEN: All right. Let's go over this way, and we can take a look at this one. The people behind this, the people that brought you the game "Doom."

DIAMANDIS: Absolutely.

O'BRIEN: They've actually had a couple doomed attempts, right? Didn't they, in trying to do this?

DIAMANDIS: Well, John Carmack, who runs the Armadillo Team, has done an amazing job, actually. They -- this is a vertical takeoff. It takes off on a stream of fire and goes up and then comes back down and lands vertically.

And John is a talented software guy. He wrote the code, and they've got it working.

O'BRIEN: All right. And down here you see some of the other projects that don't necessarily have mockups here. How far along are all these? Obviously, the Rutan project -- we'll see the attempt tomorrow -- is ahead of the pack. Is anybody else going to try?

DIAMANDIS: We have 26 teams. About a third of them, I think, are going to actually take it through to an operational vehicle and be part of our X Prize Cup, which is our follow-on event. So we should have a half a dozen or so viable spaceships coming out of the X Prize.

O'BRIEN: And just a final thought here: the fact that you've gotten this far and have created this much interest and excitement, in a sense, have you already met your goal?

DIAMANDIS: We have. I mean, as well with the announcement by Richard Branson that he's going to putting up to $100 million dollars. We have a new generation of private spaceships. We're on the verge of the personal space flight revolution.

O'BRIEN: The personal space flight revolution. You heard it here first. Thank you very much, Peter Diamandis.

Kyra Phillips, for a little shy of $200,000...

PHILLIPS: That's nothing.

O'BRIEN: ... the next couple of years or so you can book a ticket with Sir Richard Branson. As a matter of fact, I was thinking maybe the two of us could go.

PHILLIPS: Really?

O'BRIEN: How would that be for a live shot?

PHILLIPS: OK, wait a minute. Are you being serious? I know that Branson came out yesterday and said you're going to be the one getting first seat. Are you going to actually include me?

O'BRIEN: Well, just to be accurate, it was Burt Rutan who said that I was first in line.

PHILLIPS: Oh, it was Burt. OK.

O'BRIEN: We'll see about that.

PHILLIPS: All right. Now...

O'BRIEN: Nevertheless, why don't you just come along?

PHILLIPS: Well, you know I always like to get even with you, so now this is my chance. You know, every time I fly in an F-18 or an F- 14, you always ask me the stereotypical question, "Did you puke, Kyra?"

And I always say, "No, Miles, I didn't."

So now I see this video of you in the vomit comet doing your little training. And I want to know, did you puke, Miles?

O'BRIEN: Of course not, Kyra. Of course not. Never do, never do.

PHILLIPS: That's not what I heard.

O'BRIEN: If we go on that spacecraft together, just pack your parachute, OK?

PHILLIPS: If I'm with you, I won't ever need to eject. Thank you so much, Miles.

All right. We'll see you at 2:00 p.m. We'll talk Mount St. Helen's. We're going to switch gears completely, right?

O'BRIEN: Yes.

PHILLIPS: OK.

O'BRIEN: Yes, went out there a few years ago. It's quite -- quite a sight. All right.

PHILLIPS: All right, we'll talk about it. Thanks, Miles.

Well, a new study says that take-home pay has been shrinking all over the country. Rhonda Schaffler at the New York Stock Exchange with the reasons why.

Rhonda, all these stories about our paychecks shrinking, losing jobs. I'm not going to say anything today that's going to get us in trouble. I promise.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

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Aired September 28, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: The countdown to the showdown: Find out how each contender is preparing for Thursday's debate and how they're doing in the latest polls.
Hostage release in Iraq: Two Italian women are safe and sound. We're live from Rome.

ED LAVANDERA, CNN CORRESPONDENT: I'm Ed Lavandera live in Melbourne, Florida, where the sun is out, it's hot, and people are learning the value of having good friends.

MILES O'BRIEN, CNN ANCHOR: I'm Miles O'Brien live in Mojave, California. A civilian team flying a civilian rocket is trying to make it to space tomorrow, hoping they're on their way to winning a $10 million prize -- Kyra?

PHILLIPS: All right. We'll see if Miles is in that seat.

From the CNN Center in Atlanta, I'm Kyra Phillips. It's Tuesday, September 28th. CNN's LIVE FROM starts right now.

We begin this hour with a moment of joy -- that's the Italian prime minister's take on the release of two Italian aid workers taken hostage three weeks ago in Iraq.

We get the details from CNN's Alessio Vinci now in Rome. What's the latest, Alessio?

ALESSIO VINCI, CNN ROME BUREAU CHIEF: Hello, Kyra.

Well, first of all, in addition to the two Italian aid workers, Italian Prime Minister Berlusconi also confirmed the fact that two additional aid workers, Iraqi nationals, have been released, as well, this afternoon in Iraq.

The four were abducted in Iraq, on September the 7th. Italian prime minister confirmed -- they've released a brief statement earlier today saying, quote, "Finally, a moment of joy. The two girls are well and will be able to return to their loved ones tonight."

And indeed, we understand from Italian government officials here that they are making -- they are preparing themselves for welcoming the two Italian aid workers here in Rome at some point later tonight. Simona Pari and Simona Torretta have been working in Iraq for quite some time -- one of them already in the early 1990s. And there was quite some shock here in Italy when they were abducted on September the 7th, because people here couldn't believe the fact that these two women, who not only were women but also were working there for the good of the Iraqi people, had been -- had been kidnapped.

The Italian prime minister later addressed the Italian parliament, giving sketchy details about how the release came about. He said that he wanted to thank the intelligence agencies here in Italy. They were at least 16 different negotiations going on throughout these past three weeks to try to secure the release of these two aid workers.

But he also thanked the intelligence agencies of Iraq's neighboring countries, including Jordan, he said, who had play a special role. Indeed, the Jordan King Abdullah was in Rome here today.

It was the king who yesterday, in an interview with an Italian leading newspaper, "Corriere della Sera," had mentioned that the two Italian aid workers were alive.

That interview was followed by reports coming from Kuwait, another leading newspaper there reporting that indeed not only they were alive but a ransom of about $1 million had been paid, and therefore the two hostages -- former hostages would going to be released at some point in the coming days.

We do not have any confirmation that any ransom has been paid. But we do know, however, is that the Italian Red Cross has been involved. Because the prime minister said that the four former hostages had been handed over to the Italian Red Cross, leading us to believe that there was no military or no kind of military raid involved in securing the release of the four people.

Back to you, Kyra.

PHILLIPS: Well, Alessio, have these women made any mention of returning back to work and continuing on as aid workers?

VINCI: Well, we do know that they had only a brief chance to speak with the Italian prime minister.

I was watching Italian television, reporting live, most of the Italian channels, of course, broke into the programming to give the news that they had been released. Again, we understand even the families have spoken to the former hostages, so we don't really know what they have said.

We know that Italian Prime Minister Berlusconi has spoken briefly with them, congratulating them for their relief. And of course, we're waiting for them to return back tonight here in Rome, to hear more what they say about their captivity, of course, but also what their future plans are.

PHILLIPS: Alessio Vinci, live from Rome, thanks so much. Britain loses two of its troops in the fight for Iraq. Two soldiers from were killed in an ambush near Basra. Their military convoy was attacked. One of the nearly 1,200 total coalition military fatalities since the Iraq war began. Sixty-eight are from Britain.

Still, the head of the U.S. Central Command says that negative reports on the war effort in Iraq aren't telling the whole story about the progress that's been made.

(BEGIN VIDEO CLIP)

GEN. JOHN ABIZAID, COMMANDER, U.S. CENTRAL COMMAND: I do think that there is a general lack of understanding in the United States of how things are going. The images that are on the screens are almost always of negative images, as opposed to the important and positive steps that are taken.

(END VIDEO CLIP)

PHILLIPS: Prime Minister Tony Blair defended Britain's role in the Iraq war today. His remarks came during what was seen as a crucial speech to his Labor Party at a conference that's likely to be the last such gathering before general election expected next spring.

The address had barely begun when Blair was interrupted by anti- war protesters shouting, "You've got blood on your hands."

Blair refused to apologize for backing the U.S.-led war, as many had urged him to do. But conceded some of the intelligence that led to the war was wrong. He added that he could not apologize for removing Saddam Hussein from power.

Meanwhile, words of warning from Jordan's King Abdullah, considered a U.S. ally in the Mideast. The king, who was visiting Europe, told the French newspaper "Le Figaro" that he believes only extremists will win if Iraqi elections are held as planned in January. He's quoted as saying it appears impossible to organize elections that will be seen as undisputed amid the current chaos in Iraq.

King Abdullah also expressed concern that excluding certain dangerous areas could result in even deeper division.

I must say, we are all relieved and grateful today. Our newsroom cheered when we got word that our CNN producer, Riad Ali, was released by his captors in Gaza City.

You may recall it was yesterday that Riad was abducted while traveling with CNN correspondent Ben Wedeman and photographer Mary Rogers in a taxicab through city streets.

We have the latest update now from CNN's Guy Raz. He's in Jerusalem.

Guy, what can you tell us about the release?

GUY RAZ, CNN CORRESPONDENT: Well, Kyra, as you mentioned, after a very tense 24-hour period, our colleague, Riad Ali, was finally released from captivity.

Now just a few minutes ago, Kyra, Riad spoke on the steps of the Palestinian Authority's main police headquarters in Gaza City, where he was handed over by his captors. He made a brief statement, where he thanked those involved with winning his release.

(BEGIN VIDEO CLIP)

RIAD ALI, CNN PRODUCER: All I would like to say is to thank all of those people who were involved in my release. I would like to thank President Arafat, the Palestinian prime minister, many Israeli Arab figures, of course, CNN. CNN had made a lot of efforts to ensure my release. I would like to thank all of these people.

The only thing that I am waiting for now is to see my family, to see my kids, to see my wife. They are waiting for me up in the north in my village. So thanks to all of you.

(END VIDEO CLIP)

RAZ: Kyra, now, in that statement, shortly after Riad also said that his abductors had initially told him they were members of the Al Aqsa Martyrs Brigades. Now, that is a militant wing of Palestinian President Yasser Arafat's Fatah movement.

And we have spoken to representatives from Fatah, who deny that any of their members were involved with this at all. And as you heard Riad say, Palestinian President Yasser Arafat was very much involved in trying to win Riad's release.

Now, he also said he was interrogated by his abductors. They asked him about his background. Riad is an Arab -- a member of an Arabic-speaking minority, the Druze community, a non-Jewish community inside Israel. It's a community that is very much involved in the civic and a civil society here, a community that serves in the Israeli army, as well.

But he was released, he said, after his captors realized that there wasn't much information that he could give to them.

Now, he also said that he will immediately return to his family. They live in the north of Israel. He is -- after quite a harrowing 24-hour period, we are all sure that Riad Ali will be quite happy to see members of his family -- Kyra.

PHILLIPS: Guy, real quickly, remember yesterday that the captors had asked for him by name. Do we know if he was taken by these men because of a story he was working on, some phone calls that he had made? Do we know why it happened initially?

RAZ: Well, Kyra, that's a question that has confounded all of us for the past 24 hours. Not just here in our bureau in Jerusalem, but obviously in our headquarters in Atlanta and all over this region.

Various Palestinian factions were very deeply involved in trying to win Riad's release. It is unclear, and it still is unclear, who actually abducted him, why they abducted him, what they wanted from him.

So at this point, it's impossible to know, really, what was behind that abduction, until we can talk to Riad personally and find out exactly what was behind it -- Kyra.

PHILLIPS: We look forward to that. CNN's Guy Raz in Jerusalem, thanks.

It's five weeks until election day. Do you know where your candidates are? President Bush is at his Texas ranch. John Kerry at a Wisconsin resort. And you won't see much of either one until Thursday night. That's when they share a stage in Coral Gables, Florida, for the first of three Q&A events in the next two weeks.

Two days out, Bush is still riding high in the polls, including this one, showing 54 percent of Americans approve his performance in office. That's his highest job approval number since January.

Almost one in five registered voters say the debates will be a factor in how they cast their ballot. It only adds to pressure on both camps, of course, and we're going to hear from both, starting with CNN's Elaine Quijano. She's in Crawford -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Kyra.

A lot at stake in this first debate. President Bush here in Crawford, Texas, at his ranch, continuing with his debate preparations. Now over the weekend, he had a chance to do some more formal sessions, really, practice sessions where he had the help of Republican Senator Judd Gregg from New Hampshire, who was playing the role of Senator Kerry.

But the president yesterday actually took some time away from debate preparations to hit the campaign trail briefly. He traveled to Ohio, made a couple of campaign stops there, first in Springfield, then in West Chester.

And while in the trail, he mocked his opponent, Senator John Kerry, saying the Senator could probably debate himself for 90 minutes because of what the president says is his shifting position on Iraq.

As for the debates themselves, the expectations game is already on. Bush advisers are playing up Senator Kerry's experience, saying the president will hold his own.

(BEGIN VIDEO CLIP)

KAREN HUGHES, BUSH CAMPAIGN ADVISOR: He spent 20 years in the United States Senate. He doesn't have much of a record of achievement there. But he's had lots of debates there. That's what senators do; they stand on the floor of the senate and they debate. He had famous debates against Governor Weld in his campaign for Senate in Massachusetts.

President Bush -- presidents don't really debate. They listen; they make decisions. But they don't -- aren't engaged on debates on a regular basis.

That said, I believe at the end of Thursday night, we'll have a full debate of the issue, including the critical issue of the war against terrorism. And I believe the American people will, at the end of the debate, know where President Bush stands.

(END VIDEO CLIP)

QUIJANO: Now, aides say the president is comfortable with the pace of his debate preparations. They're saying they don't feel rushed at this point. They also say there won't be any more of formal sessions now. It will just be sort informal conversations. They say now, Kyra, it is just a matter of fine-tuning -- Kyra.

PHILLIPS: Elaine Quijano, thanks so much.

Now to Wisconsin, where the Kerry camp faces one undebatable fact, the face-to-face match-ups with President Bush will be Kerry's last, best chance to win over disaffected voters.

Here's CNN's Frank Buckley.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN CORRESPONDENT (voice-over): As Senator John Kerry campaigned for votes in Wisconsin...

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: America needs a real conversation about our future.

BUCKLEY: ... a new CNN/"USA Today"/Gallup poll was indicating President Bush has an eight-point lead now among likely voters, an 11- point lead among registered voters.

Kerry, who was at a rural Wisconsin resort primarily to prepare for Thursday's debate, used his one campaign stop to continue his criticism of President Bush on Iraq.

KERRY: The mission was not accomplished when he said it. He didn't know it and didn't understand it. It's not accomplished today, and he's still trying to hide from the American people.

BUCKLEY: But the new poll suggests criticism of the war in Iraq may not be working. More Americans believe President Bush can better handle Iraq. On terrorism, 61 percent believe in Bush to 34 percent for Kerry.

Kerry aides say the criticism on Iraq will continue, believing it helps Kerry make the case that President Bush can't fix problems if he won't acknowledge them, an argument they can also apply to domestic issues, like the economy.

KERRY: Income's going down, and he just doesn't care. He's out of touch with the average American's problems, because he keeps fighting for Halliburton and Enron and all those big companies. And we need a president who fights for the average person. BUCKLEY (on camera): Kerry campaign officials are dismissive of the poll numbers, saying they are out of sync with other recent national polling.

Meanwhile, Senator Kerry himself is hunkered down with adviser, continuing to prepare for the debate. No public events are scheduled.

Frank Buckley, CNN, Dodgeville, Wisconsin.

(END VIDEOTAPE)

PHILLIPS: Sometimes the number 50 is just half of 100. Sometimes it's a mental milestone that freaks out the markets, consumers and even the Saudis. Oil price sticker shock and you, coming up.

Also, it's a different world now: no school, no power, no water. The latest on Florida efforts to get back to normal after Hurricane Jeanne.

(BEGIN VIDEO CLIP)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): A veil of secrecy has often shrouded the Oval Office. And when it comes to Kennedy's medical history, there was something lurking beneath the surface.

UNIDENTIFIED MALE: There's only one word for it, it's weird.

(END VIDEO CLIP)

PHILLIPS: Peak inside JFK's briefcase, full of blues, reds, and other drugs, from the official staff to "Dr. Feelgood." Get the straight dope on the medical secrets of Camelot.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Well, the storm formerly known as Jeanne is still dumping rain on the mid-Atlantic seaboard and still being cursed from West Virginia to West Palm Beach.

CNN meteorologist Jacqui Jeras has the latest from the Weather Center -- Jacqui.

(WEATHER REPORT)

PHILLIPS: Jacqui, thank you.

And the water's still high, and the power's still out in parts of Georgia this hour, as Tropical Storm Jeanne came in like a lion and went out like a lion while dumping three to five inches of rain and toppling trees with wind gusts of 50 Miles an hour. You can see the effects. In the South Georgia town of Folkston, torrents watched caskets out the ground and also made scores of roads undriveable.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The water was an inch deep, then two inches deep. Than the next thing I know, it's a foot deep, a foot and a half, two feet, and my car just started floating. The engine went dead.

(END VIDEO CLIP)

PHILLIPS: Jeanne spawned tornadoes in the Carolinas, in which at least one person was killed. Many more were terrified.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: At first it sounded hike a real loud whistle. Like they say a train, but it's like a train that would fall off. So when I heard it, I got up, and I was like, "Well, what's going on?"

And I glanced out the window. And I saw everything, debris going, and I just knew what was happening.

(END VIDEO CLIP)

PHILLIPS: Jeanne was the sixth former tropical storm or former tropical storm to hit the Carolinas this year.

More than a million Floridians are waiting for the lights to come back on still and hoping another hurricane doesn't blow through in the meantime.

CNN's Ed Lavandera is in Melbourne. What's the latest, Ed?

LAVANDERA: Well, Kyra, the sun is out. It's hot. There are long lines for ice and water, lines at gas stations. There's a lot of traffic -- not all of the traffic lights are back. It's a slow process moving around this area.

And many people around here are just learning the value of having a good friend.

(BEGIN VIDEOTAPE)

PATRICIA GREELEY (ph), HURRICANE VICTIM: This is the worst room. Everything was destroyed in here.

LAVANDERA (voice-over): Patricia Greeley (ph) was forced out of her home in Micco, Florida, about three weeks ago, after Hurricane Frances tore apart the roof and mold started infesting the walls. She looked for a motel to live in, when her best friend decided that was a bad idea.

GREELEY (ph): Thank God I have her. I mean, she let me stay with her.

LAVANDERA: So, Patricia moved in with Beverly Peza (ph), who lives just a few blocks away. But then, Hurricane Jeanne struck.

BEVERLY PEZA (ph), HURRICANE VICTIM: This was the garage.

LAVANDERA: This time, it was Beverly's home that took the destructive lashing.

PEZA (ph): It's all water damaged all the way through.

LAVANDERA: These women met two years ago while walking their dogs. At the time, their husbands had just passed away. A friendship is what they desperately needed in life, just like they need now.

GREELEY (ph): The problem is here with these storms people are getting very, very depressed. Very depressed. I know I am. I'm depressed. I mean, even though I know we're -- our lives are here. But it's just getting everything together is the worst part.

LAVANDERA: After two hurricanes and two destroyed homes, they couldn't imagine getting though this ordeal alone.

PEZA (ph): We made it.

GREELEY (ph): We made it!

PEZA (ph): ... two years.

GREELEY (ph): We made it.

PEZA (ph): It just goes to show you, old broads make it.

GREELEY (ph): Speak for yourself.

PEZA (ph): Old broads make it!

(END VIDEOTAPE)

LAVANDERA (on camera): Well, at least they have something to laugh about at this point in time. There are hundreds of thousands people who aren't really laughing.

As we understand there are still almost a million people without power across the state of Florida. And officials say it could take up to three weeks before all of that power is turned back on -- Kyra.

PHILLIPS: Ed Lavandera, live from Melbourne, Florida, thank you.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, our old buddy Miles O'Brien out in the Mojave Desert, hanging out with the guys who want to take the $10 million X Prize.

D.C. cops say a pregnant woman was causing a disturbance on a cell phone and then resisted arrest. Did what happened next cross the line?

What to watch for in the big debate. The last-minute preps and plans from both camps, tomorrow on LIVE FROM.

We'll be right back.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (voice-over): Your next surgeon may have a rather cold exterior, because it's a robot. Gary Guthart is one of the pioneers of telerobotics, a doctor using robotic arms to perform an operation by remote control.

GARY GUTHART, INTUITION SURGEON INC.: In this case, all of the intelligence and decision-making is coming from the surgeon, if possible.

UNIDENTIFIED MALE: Telerobots were first designed for handling hazardous materials. Now they offer people in rural areas access to surgeons in big cities.

Perhaps the best example of what telerobots can do is removing a cancerous prostate. Guthart says one day telerobots could help patients have the kind of bypass surgery President Bill Clinton had. It's very precise, and because the robot's hands are smaller than a human's, minimally invasive. As long as people can get past the weirdness factor.

GUTHART: Given the choice of a long incision and a lengthy recovery time, or small incisions and rapid recovery, most people choose rapid recovery, when they ask what the risks are and what the benefits are.

(END VIDEOTAPE)

PHILLIPS: The race to send people to space heats up tomorrow. That's when the designer of the spacecraft SpaceShipOne sets off for his first of two flights needed to win the $10 million X Prize.

It begins in Mojave, California. And of course being that's where Miles is.

All week?

O'BRIEN: Wouldn't miss it for the world. Now I'm going to come home for a little while.

But the second attempt, if all goes well tomorrow, will be on October 4, which happens to be the anniversary -- I know you know this, Kyra -- of the launch of Sputnik in 1957.

Nevertheless, this particular attempt tomorrow is the first time somebody will engage in an official flight in the Ansari X Prize competition. A $10 million purse will go to the first team to fly a spacecraft to the threshold of space -- that's 100 kilometers, 62 miles -- and back, in a vehicle that can carry three people.

Now you may recall back in June, Burt Rutan's team -- here are scaled compositions in Mojave -- flew SpaceShipOne to space, becoming the first civilian craft to do just that, Mike Melville becoming the first civilian astronaut.

That was a flight test. That had nothing to do with the Ansari X Prize. They've since then been working out a few bugs that occurred in that flight. And say now they're quite ready to make this attempt and fly those two flights, well within the two lots allotted by the $10 million prize rules.

Now, the man behind all of this, the founder of the X Prize, is Peter Diamandis, a man who has been pushing for entrepreneurs in space, civilian access to space, since he can remember, really, since he was about 9 years old.

This has got to be kind of a tense moment and an exciting moment for you, after all these years, to finally get to the point where you have an official attempt.

PETER DIAMANDIS, PRESIDENT, X PRIZE FOUNDATION: It's actually not tense. We have a fantastic team of people here really working to put on this event.

And folks in the listening audience can actually come to our Web site, xprize.org, and see it live tomorrow from about 6:00 a.m. to 9:00 or come out to Mojave for $20 a car and see the flight.

O'BRIEN: All right. You can start at the X Prize site, drift over to CNN if you like. Stay on the X Prize site.

But you might want to participate in this. This is just one of several teams out there that are vying for this prize. You see behind us some mockups of some of the attempts.

This one comes from a group called Suborbital Corporation. How far along are they?

DIAMANDIS: We've got 26 teams from seven countries. This is, actually, our Russian team. They have a full-scale vehicle under construction right outside of Moscow. They're teamed with a company called Space Adventures. And they're looking at making flights in the next year or two.

O'BRIEN: And then over here, this one, this was an attempt -- a team from Canada, the Da Vinci Project. They were going to fly right around this time frame but have had a delay.

DIAMANDIS: They have -- this is a vehicle that's lofted to 80,000 feet with a helium balloon, and then it drops it and lights its engines. And they're looking to fly by the end of this month. And if they do, if Rutan's team has won, then they'll be the first Canadian team to make it.

O'BRIEN: All right. Let's go over this way, and we can take a look at this one. The people behind this, the people that brought you the game "Doom."

DIAMANDIS: Absolutely.

O'BRIEN: They've actually had a couple doomed attempts, right? Didn't they, in trying to do this?

DIAMANDIS: Well, John Carmack, who runs the Armadillo Team, has done an amazing job, actually. They -- this is a vertical takeoff. It takes off on a stream of fire and goes up and then comes back down and lands vertically.

And John is a talented software guy. He wrote the code, and they've got it working.

O'BRIEN: All right. And down here you see some of the other projects that don't necessarily have mockups here. How far along are all these? Obviously, the Rutan project -- we'll see the attempt tomorrow -- is ahead of the pack. Is anybody else going to try?

DIAMANDIS: We have 26 teams. About a third of them, I think, are going to actually take it through to an operational vehicle and be part of our X Prize Cup, which is our follow-on event. So we should have a half a dozen or so viable spaceships coming out of the X Prize.

O'BRIEN: And just a final thought here: the fact that you've gotten this far and have created this much interest and excitement, in a sense, have you already met your goal?

DIAMANDIS: We have. I mean, as well with the announcement by Richard Branson that he's going to putting up to $100 million dollars. We have a new generation of private spaceships. We're on the verge of the personal space flight revolution.

O'BRIEN: The personal space flight revolution. You heard it here first. Thank you very much, Peter Diamandis.

Kyra Phillips, for a little shy of $200,000...

PHILLIPS: That's nothing.

O'BRIEN: ... the next couple of years or so you can book a ticket with Sir Richard Branson. As a matter of fact, I was thinking maybe the two of us could go.

PHILLIPS: Really?

O'BRIEN: How would that be for a live shot?

PHILLIPS: OK, wait a minute. Are you being serious? I know that Branson came out yesterday and said you're going to be the one getting first seat. Are you going to actually include me?

O'BRIEN: Well, just to be accurate, it was Burt Rutan who said that I was first in line.

PHILLIPS: Oh, it was Burt. OK.

O'BRIEN: We'll see about that.

PHILLIPS: All right. Now...

O'BRIEN: Nevertheless, why don't you just come along?

PHILLIPS: Well, you know I always like to get even with you, so now this is my chance. You know, every time I fly in an F-18 or an F- 14, you always ask me the stereotypical question, "Did you puke, Kyra?"

And I always say, "No, Miles, I didn't."

So now I see this video of you in the vomit comet doing your little training. And I want to know, did you puke, Miles?

O'BRIEN: Of course not, Kyra. Of course not. Never do, never do.

PHILLIPS: That's not what I heard.

O'BRIEN: If we go on that spacecraft together, just pack your parachute, OK?

PHILLIPS: If I'm with you, I won't ever need to eject. Thank you so much, Miles.

All right. We'll see you at 2:00 p.m. We'll talk Mount St. Helen's. We're going to switch gears completely, right?

O'BRIEN: Yes.

PHILLIPS: OK.

O'BRIEN: Yes, went out there a few years ago. It's quite -- quite a sight. All right.

PHILLIPS: All right, we'll talk about it. Thanks, Miles.

Well, a new study says that take-home pay has been shrinking all over the country. Rhonda Schaffler at the New York Stock Exchange with the reasons why.

Rhonda, all these stories about our paychecks shrinking, losing jobs. I'm not going to say anything today that's going to get us in trouble. I promise.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

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