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Arafat's Condition Worsens; Bush Lays out Second Term Agenda; Elizabeth Edwards Diagnoses with Breast Cancer; Ashcroft to Step Down

Aired November 04, 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.


(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This week, the voters of America set the direction of our nation for the next four years.

(END VIDEO CLIP)

MILES O'BRIEN, CO-HOST: Setting the agenda. President Bush says he'll reach out in his second term. We're live from the White House.

KYRA PHILLIPS, CO-HOST: In critical condition. New developments in the Palestinian leader Yasser Arafat's health. We're live from Paris.

RUSTY DORNIN, CNN CORRESPONDENT: I'm Rusty Dornin in Redwood City, California, where the jury is in the second day of deliberations in the Scott Peterson trial. More coming up.

O'BRIEN: Another miracle in the lions' den? Kids, do not try this at your local zoo.

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

PHILLIPS: And I'm Kyra Phillips. CNN's LIVE FROM starts right now.

O'BRIEN: Intensive care in Paris, intense concern in the Middle East and far beyond.

Almost a week after illness forced 75-year-old Yasser Arafat to leave the West Bank for the first time in year, aide, colleagues, and a hospital spokesman denying reports that he has passed away.

There are also reports and corresponding denials the Palestinian leader is brain-dead, or merely comatose.

We do know he was visited earlier today by French president, Jacques Chirac, and CNN's Fionnuala Sweeney is watching the comings and goings -- Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Indeed, Miles.

About an hour or so ago, we heard a very short statement from a French military hospital official here at the Percy Hospital behind me, in which he did very little to end the speculation that there has been about Yasser Arafat's health.

He said that he was still alive, but his situation had become, as he put it, more complicated. He has been transferred to a specialized unit here in the hospital. And his last words, before he left journalists, without taking any question, was, "Yasser Arafat is not dead."

It's very difficult to get anybody here to go on the record and say that Yasser Arafat is not expected to survive. But I think it is fair to say that his situation is deteriorating and has been over the past 24 hours, when he fell ill, having undergone some more medical tests that he was here for in Paris, with specialized specialist French doctors.

He apparently felt ill after some tests were carried out yesterday. He was then moved to the specialized unit and his condition has since continued to deteriorate. His condition tonight, Miles, is critical.

O'BRIEN: CNN's Fionnuala Sweeney in Paris, thank you very much -- Kyra.

PHILLIPS: Well, the very day that her husband conceded his race for vice president of the United States, Elizabeth Edwards was diagnosed with breast cancer. That bombshell announcement came just minutes ago.

Invasive ductal cancer, confirmed via needle biopsy. We're told that's the most common form of that very common disease. And more tests are pending, to see just how far along it is.

In a written statement, John Edwards says, quote, "Together, our family will beat this." More later from our Ed Henry.

O'BRIEN: Two days after almost 120 million Americans voted for president, one day after we all learned the name of the winner, more Americans than not are OK with what transpired.

A bare majority, 51 percent, described themselves as pleased in a CNN/"USA Today"/Gallup poll. Almost four in ten say they're upset. Almost one in ten say it doesn't matter.

A large majority, 80 percent, agree with John Kerry's decision to concede before the last vote was counted. Sixteen percent disagree.

PHILLIPS: Now let's take a look ahead. Americans are divided over whether a re-elected George W. Bush will be a uniter or a divider. Most expect the former, but four in ten see the latter. To that end, only three in ten say Bush shows an advanced Republican agenda in his second term. Six in ten want him to emphasize a bipartisan program.

O'BRIEN: You might call today the first day of the rest of the Bush presidency. A cabinet meeting in the morning, the president's first since August. Followed by a full-fledged, all-out, policy-heavy news conference. CNN's Suzanne Malveaux is at a newly re-energized White House -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, hello, Miles.

It was about a 45-minute press conference, the president laying out a very ambitious second term agenda. He says, "I have earned capital in this election and I am going to spend it."

And he went on to describe how he's going to spend that capital, on his domestic agenda. He talked about reforming Social Security, allowing young people to invest at least part of their withholdings in the stock market. He also talked about overhauling the intelligence community, as well as reforming the tax code.

Also, high on his agenda, of course, foreign policy. He said he wanted to prove that democracy in Iraq could be achieved, to convince that every civilized country has a stake in the war on terror, whatever the disagreement in the past, that there's a common enemy, that enemy being terrorism, of course.

Mr. Bush was also asked about reaction to those unconfirmed reports of Yasser Arafat dying. The president saying, "My first reaction is God bless his soul; my second reaction is that we will continue to work for a free Palestinian state that is at peace with Israel."

Now, White House officials say they have no idea whether or not Arafat is dead or alive. But the president did answer the question, saying that he agreed with what British Prime Minister Tony Blair said yesterday, that this needs to be a central part of the agenda, that is, Middle East peace.

(BEGIN VIDEO CLIP)

BUSH: The Middle East peace is a very important part of a peaceful world. I have been working on Middle Eastern peace ever since I've been the president. I laid down some -- a very hopeful strategy in June of 2002. And my hope is that we'll make good progress.

I think it's very important for our friends, the Israelis, to have a peaceful Palestinian state living on their border. It's very important for the Palestinian people to have a peaceful, hopeful future. That's why I articulated a two-state vision in that Rose Garden speech. I meant it when I said it, and I mean it now.

(END VIDEO CLIP)

MALVEAUX: Now, Miles, Kyra, of course, the White House has largely rejected Yasser Arafat over the last couple of years. They do not have a relationship with him, saying they believe that he has basically blocked that process on Middle East peace.

They want Palestinian leadership to emerge that can work with the Israelis, as well as this administration. That is their hope. Now the president is going to be heading to Camp David later today for a long weekend. He refused to speculate on what some of the new positions, cabinet positions, those who may be making changes for his next administration.

But CNN has learned earlier today from sources close to Attorney General Ashcroft that he will be at least one of the people that is likely to submit his resignation in the next couple of weeks -- Kyra, Miles.

O'BRIEN: Suzanne Malveaux at the White House, thank you very much.

Interim no longer. Afghan President Hamid Karzai today officially accepted his U.N.-sanctioned election and promptly promised there will not be private militias in Afghanistan and definitely, definitely not any drug-related corruption in his government. But first things first.

(BEGIN VIDEO CLIP)

HAMID KARZAI, PRESIDENT, AFGHANISTAN: The Afghan people have voted for a government based on laws, based on institutions. And that is what we are going to provide to them.

(END VIDEO CLIP)

O'BRIEN: Karzai's victory was affirmed just yesterday by a U.N./Afghan commission. He claimed 55 percent of the ballots cast almost a month ago, by 70 percent of Afghanistan's registered voters.

PHILLIPS: Ready to resign. Attorney General John Ashcroft apparently leaving sooner rather than later. We'll take a look at the impact and who might replace him.

And want your teeth to be their whitest? You may be doing more harm than good without even knowing it.

Speaking of teeth, a zoo visitor gets too close for comfort. That's right, it's a grabber.

We'll also have more on the fate of Elizabeth Edwards as she finds out she has breast cancer.

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

(COMMERCIAL BREAK)

PHILLIPS: Well, just one day after her husband and John Kerry conceded the Democratic race for the White House, we're finding out now that Elizabeth Edwards has been diagnosed with breast cancer.

We have more now from our congressional correspondent, Ed Henry.

What do you know, Ed? What can you tell us? ED HENRY, CNN CORRESPONDENT: Good afternoon, Kyra.

That's right. CNN has confirmed that Elizabeth Edwards was diagnosed with breast cancer yesterday afternoon, after her husband, Senator John Edwards, and Senator John Kerry offered their concession speeches in Boston.

Campaign spokesman David Ginsburg is telling CNN that Mrs. Edwards discovered a lump last week on the campaign trail. That lump was in her right breast.

Mrs. Edwards visited a doctor in Raleigh, North Carolina, on Friday to get it checked out. The doctor at that time suspected that it was cancerous, told her to go back to another doctor. She did that yesterday, and as I mentioned, she found out that it, in fact, was breast cancer.

But spokesman David Ginsburg is saying that both Mr. and Mrs. Edwards are in, quote, "good spirits." He also told me that they both feel good, quote, "that they're going to beat this."

And so, that coming from David Ginsburg, a spokesman for the Kerry/Edwards campaign. Said obviously, this is very difficult news for the Edwards family to deal with right now, especially so quickly after this difficult presidential battle, this loss.

This is something, obviously, that they have to take care of immediately. But they feel like they're in good spirits, and they feel like they're going to beat it -- Kyra.

PHILLIPS: Ed, obviously, there's a number of treatments that can take place for this. Are more tests being done to find out what treatment Elizabeth Edwards will deal with?

HENRY: I do not have information yet on exactly what treatment she is going to go through. But I can tell you that they are obviously saying that they're going to deal with it aggressively. They're dealing with it at once, and they certainly do feel good, though, about the prospects, in terms of how quickly they caught it. They feel like they are going to beat this -- Kyra.

PHILLIPS: All right, congressional correspondent Ed Henry, thank you so much. We'll have more from our medical correspondent, Elizabeth Cohen, coming up in just a few minutes -- Miles.

O'BRIEN: President Bush says there's some changes coming to his cabinet. And no names have been officially announced. Speculation is running rampant. One of the first to go will be Attorney General John Ashcroft.

Joining us from inside the beltway, someone who knows the ins and outs of D.C., as well as Atlanta, Georgia, former Georgia congressman, CNN special contributor, Bob Barr.

Bob, good to have you back with us.

BOB BARR, FORMER GEORGIA CONGRESSMAN: Thank you, Miles, always a pleasure.

O'BRIEN: all right. John Ashcroft, that, I guess, has always been widely rumored as a departure for the second term. First of all, how would you assess the Ashcroft's -- Ashcroft legacy? I know in particular, you have some problems with the Patriot Act, which he has championed.

BARR: Well, it's been very controversial. Of course, the attorney general, as all cabinet members in the Bush administration, were thrust headlong into an absolutely unprecedented situation on September 11. And it certainly takes its toll on any cabinet member.

But particularly for the attorney general, since virtually every aspect domestically, fighting the war on terror, has something to do with the attorney general.

But in particular, with regard to many of the measures that the administration has instituted since 9/11, such as the Patriot Act, such as the -- the data mining program, such as the TIPS (ph) and T.I. and the whole alphabet soup, these have upset an awful lot of conservatives and liberals alike, because they seem to go too far in law enforcement, and without enough regard for civil liberties and privacy rights in this country.

And a lot of us, including myself, have been urging the administration, including the attorney general, to get a little bit more balance. And maybe this will now be an opportunity to do that.

O'BRIEN: Do you think that is likely though, or will it be more likely that Mr. Bush will chose someone who will toe that same very conservative line?

BAR: Well, we don't know, of course. A number of us, including you all, have heard names, names such as former deputy attorney general Larry Thompson from Georgia, who would be an outstanding individual as the nation's top law enforcement and constitutional officer.

And I simply hope that whoever takes over for General Ashcroft will be a little bit better about listening to the concerns of right and the left on the substance of some of these programs and not have simply sort of a knee-jerk reaction that anybody who dares raise any questions about these programs and policies is somehow unpatriotic.

O'BRIEN: And is that the impression you got from John Ashcroft?

BARR: That certainly seemed to be part of the message that was being received. And those of us who have been in law enforcement such as myself, who have worked in the Congress on these issue, it's not at all that we're saying the government shouldn't have the necessary tools, including many aspects of the Patriot Act, with which to fight terrorism.

But, simply that there has to be more concern paid to the long- term effects on our civil liberties and the Bill of Rights in this country if we go too far. O'BRIEN: All right. Now some of the other names that are listed here, Marc Racicot, Bush campaign operative, Alberto Gonzalez, who is the White House general counsel, which would be a very notable Hispanic appointment. One of the names we thought of here, what about Rudy Giuliani?

BARR: Well, Mr. Giuliani certainly would be well qualified for that position, having served as a high official in the Department of Justice during the Reagan administration and then as the U.S. attorney in New York City for a number of years, including the time that I served as the U.S. attorney in Atlanta.

He needs -- simply needs to make a political decision, I think, as to what places him in the best position to run for president, as he seems very much inclined to do in four years. But he would certainly be among the most well qualified as an attorney general nominee.

O'BRIEN: It's kind of hard to do both, to be attorney general and run for president, for sure. Bob Barr, thank you very much, appreciate your time -- Kyra.

BARR: OK, Miles, thank you.

PHILLIPS: A story that's been developing within the past couple of days, that is the fate of Palestinian leader Yasser Arafat. A hospital spokesperson in Paris saying that Arafat is not dead, but has been moved within the hospital to an area more appropriate for his condition.

What exactly is that condition? We're still working that.

Now on the phone, Christiane Amanpour, also working this story.

Christiane, what's the new information you have?

CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Well, consistent with what a hospital spokesman said, as of the last couple of hours, according to my source with close ties to Palestinian leadership, Yasser Arafat is not dead, nor is he clinically dead.

However, he is, quote, "out of it." He is unable to recognize people. He is unable to talk. He's unable to react or make any kind of sensory movement at all. People still are not -- either we're not being told or they don't know the precise nature of his condition. But suffice to say, he's physically very, very critical, according to our source, and he is mentally also very critical.

And as we have been reporting, as my sources have been telling me over this last week, his mental faculties have steadily deteriorated over the last several days.

Now this does differ with the upbeat messages coming from Palestinian officials in Paris, but I'm being told that that is essentially, quote, "spin." They have been saying that he's gradually been improving. They've been saying that he's been giving orders and being kept abreast of political developments back in the territories and in the United States and around the world. And commenting on them and reading letters.

I'm being told that that is, in fact, not the case, that he has not been able to do that. And right now, he is in a state, I'm told, where he is not reacting at all, although he's still alive.

PHILLIPS: Christiane, you're staying away from the word coma. Is that still a word that we cannot use?

AMANPOUR: Well, I specifically asked that. I'm told that he was unconscious last night, but I was just simply told today that he was visited by certain people and he was unable to react or unable to -- to open his eyes, unable to make any comment at all.

So I think -- I think, to be honest with you, there is a discrepancy over whether he's in a coma or not. I personally have stayed away from the word "coma." Although last night I was told that he was unconscious when he was moved to the ICU unit in the hospital there, in Paris.

And at the same time, of course, there is a political -- political power struggle under way in that they're trying to determine how to continue functioning in terms of the Palestinian Authority and other security situations, out in the territories.

PHILLIPS: Christiane Amanpour, thank you so much.

We'll continue to follow the condition there of Yasser Arafat. Christiane Amanpour telling us right now his condition is, quote, "that he is out of it." Still staying away from the word coma. I guess a bit of a mystery still continues. We'll follow that story.

More LIVE FROM right after this.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, four more years. What's on the Bush agenda? Who's in, who's out? We'll go in depth.

Later on LIVE FROM, 25 years ago today, the revolution that led to an American hostage crisis. Iran's past and present relationship with the United States.

Tomorrow on LIVE FROM, who looks great in '08? Senator Hillary Clinton, former Mayor Rudy Giuliani, or will other political stars shine brighter?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

PHILLIPS: It's been a tough 24 hours for the Edwards family. First, Senator John Edwards conceding to -- the Democratic race for the White House now just a day later, we find out that Elizabeth Edwards has been diagnosed with breast cancer. She actually found out yesterday the results of the tests that took place.

Elizabeth Cohen, our medical correspondent in New York, today she's working this story.

What more can you tell us, Elizabeth?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Well, Kyra, I can't tell you much more about Elizabeth Edwards' specific situation, because we don't have any more details.

But I can tell you that people used to talk about cancer as "the c word." They didn't want to say the entire word. But more and more people are talking about living with cancer. In fact, two million American women are living with breast cancer.

And in fact, the survival rates, when you look at them, when it's caught early enough, a 98 percent survival rate.

Now, the first thing that will happen, and I'm talking generically here, since I'm not -- we don't know much about Elizabeth Edwards' specific situation, is that doctors want to stage the cancer. They want to get a sample of the tumor. They want to see if it's fast growing or not. And they want to see if it has spread to the adjacent limp nodes, has it spread to other organs in the body. And once they do that, they can stage it on a scale from one to four.

Stage one is a 98 percent survival rate. Stage four is a 16 percent survival rate. But most breast cancers are diagnosed before stage four. Most breast cancers are diagnosed when doctors can actually do something about it -- Kyra.

PHILLIPS: Elizabeth, Mrs. Edwards has come forward talking about being on the South Beach Diet, talking about her weight. Can we talk about weight and age and how that plays a part in breast cancer?

COHEN: Age definitely plays a part in breast cancer, Kyra. As a matter of fact, eight out of ten breast cancer diagnoses in this country are made in women over the age of 50. So -- so age, there's no question, plays a role.

It's a little bit more questionable how much diet plays a role. There have been various kinds of studies done to see if different kinds of diets...

(AUDIO/VIDEO GAP)

PHILLIPS: Elizabeth Cohen, thank you.

O'BRIEN: While most of the country was caught up in post- election drama yesterday, jurors in the Scott Peterson double murder trial began deliberations.

CNN's Rusty Dornin joining us from Redwood City, California. Day two of that getting under way -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Miles, if you remember, jury selection for this trial began last March, the trial in June. It's now November. They spent five months hearing from nearly 200 witnesses in this case. Finally, it is decision time. It was a sober moment in the -- somber moment in the courtroom as the judge gave them instructions and guidelines for their decision. They are going to be able to choose guilty or not guilty for first degree or second-degree murder of Laci Peterson and her unborn son Connor.

Now, if they choose first degree, there's also a decision to be made about special circumstances, which is multiple murders. That would trigger a penalty phase, the death penalty phase of this trial.

They deliberated for about four hours yesterday. And for about two hours so far this morning. They won't be going home until they have a decision -- Miles.

O'BRIEN: Rusty, we weren't paying very close attention as they wrapped this one up. And for Mark Geragos, who obviously took this case to get a little bit of TV time and some attention, that probably made him a little bit upset.

Why don't you just tell us how really he and the prosecution closed this thing out?

DORNIN: Well, the prosecution surprised a lot of legal experts. They were criticize for having sort of a -- presenting a weak case in the beginning. But they did a very concise close.

They talked about the fact that, because Scott Peterson -- their strongest argument was he went fishing the same place that his wife and unborn son, their remains washed ashore.

They called Scott Peterson a liar, a cheat, a man with a motive to murder his wife. And that was that he did not really want to be a father, and also he was having his affair, of course with Amber Frey.

For the defense, Mark Geragos says, look, you -- don't convict Scott Peterson because you hate him. There is no motive here. There is no financial motive. There was no murder weapon. There was no crime scene. You know, there was no cause of death and no reason for Scott Peterson to have killed his wife.

In the rebuttal yesterday morning before the instructions, though, there was really sort of a dramatic moment. Because Mark Geragos had said perhaps she was abducted by homeless people or transients in the area.

Well, the prosecutor stood up and said, "Look, homeless people in Modesto are getting a bad rap," which brought a laugh from the jury. He also gave a very dramatic portrayal of how they believe she died, actually showing them how they believe that she was strangled by Scott Peterson. And they urged them to convict him.

So we'll just have to see what happens -- Miles.

O'BRIEN: All right. Rusty Dornin, we'll be watching it closely. Thank you very much -- Kyra. PHILLIPS: The economy was one of several hot button issues during the campaign. Now that President Bush has been re-elected what's on his economic agenda?

Rhonda Schaffler joins us live from the New York Stock Exchange to sort it all out.

Hi, Rhonda.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

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Aired November 4, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This week, the voters of America set the direction of our nation for the next four years.

(END VIDEO CLIP)

MILES O'BRIEN, CO-HOST: Setting the agenda. President Bush says he'll reach out in his second term. We're live from the White House.

KYRA PHILLIPS, CO-HOST: In critical condition. New developments in the Palestinian leader Yasser Arafat's health. We're live from Paris.

RUSTY DORNIN, CNN CORRESPONDENT: I'm Rusty Dornin in Redwood City, California, where the jury is in the second day of deliberations in the Scott Peterson trial. More coming up.

O'BRIEN: Another miracle in the lions' den? Kids, do not try this at your local zoo.

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

PHILLIPS: And I'm Kyra Phillips. CNN's LIVE FROM starts right now.

O'BRIEN: Intensive care in Paris, intense concern in the Middle East and far beyond.

Almost a week after illness forced 75-year-old Yasser Arafat to leave the West Bank for the first time in year, aide, colleagues, and a hospital spokesman denying reports that he has passed away.

There are also reports and corresponding denials the Palestinian leader is brain-dead, or merely comatose.

We do know he was visited earlier today by French president, Jacques Chirac, and CNN's Fionnuala Sweeney is watching the comings and goings -- Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Indeed, Miles.

About an hour or so ago, we heard a very short statement from a French military hospital official here at the Percy Hospital behind me, in which he did very little to end the speculation that there has been about Yasser Arafat's health.

He said that he was still alive, but his situation had become, as he put it, more complicated. He has been transferred to a specialized unit here in the hospital. And his last words, before he left journalists, without taking any question, was, "Yasser Arafat is not dead."

It's very difficult to get anybody here to go on the record and say that Yasser Arafat is not expected to survive. But I think it is fair to say that his situation is deteriorating and has been over the past 24 hours, when he fell ill, having undergone some more medical tests that he was here for in Paris, with specialized specialist French doctors.

He apparently felt ill after some tests were carried out yesterday. He was then moved to the specialized unit and his condition has since continued to deteriorate. His condition tonight, Miles, is critical.

O'BRIEN: CNN's Fionnuala Sweeney in Paris, thank you very much -- Kyra.

PHILLIPS: Well, the very day that her husband conceded his race for vice president of the United States, Elizabeth Edwards was diagnosed with breast cancer. That bombshell announcement came just minutes ago.

Invasive ductal cancer, confirmed via needle biopsy. We're told that's the most common form of that very common disease. And more tests are pending, to see just how far along it is.

In a written statement, John Edwards says, quote, "Together, our family will beat this." More later from our Ed Henry.

O'BRIEN: Two days after almost 120 million Americans voted for president, one day after we all learned the name of the winner, more Americans than not are OK with what transpired.

A bare majority, 51 percent, described themselves as pleased in a CNN/"USA Today"/Gallup poll. Almost four in ten say they're upset. Almost one in ten say it doesn't matter.

A large majority, 80 percent, agree with John Kerry's decision to concede before the last vote was counted. Sixteen percent disagree.

PHILLIPS: Now let's take a look ahead. Americans are divided over whether a re-elected George W. Bush will be a uniter or a divider. Most expect the former, but four in ten see the latter. To that end, only three in ten say Bush shows an advanced Republican agenda in his second term. Six in ten want him to emphasize a bipartisan program.

O'BRIEN: You might call today the first day of the rest of the Bush presidency. A cabinet meeting in the morning, the president's first since August. Followed by a full-fledged, all-out, policy-heavy news conference. CNN's Suzanne Malveaux is at a newly re-energized White House -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, hello, Miles.

It was about a 45-minute press conference, the president laying out a very ambitious second term agenda. He says, "I have earned capital in this election and I am going to spend it."

And he went on to describe how he's going to spend that capital, on his domestic agenda. He talked about reforming Social Security, allowing young people to invest at least part of their withholdings in the stock market. He also talked about overhauling the intelligence community, as well as reforming the tax code.

Also, high on his agenda, of course, foreign policy. He said he wanted to prove that democracy in Iraq could be achieved, to convince that every civilized country has a stake in the war on terror, whatever the disagreement in the past, that there's a common enemy, that enemy being terrorism, of course.

Mr. Bush was also asked about reaction to those unconfirmed reports of Yasser Arafat dying. The president saying, "My first reaction is God bless his soul; my second reaction is that we will continue to work for a free Palestinian state that is at peace with Israel."

Now, White House officials say they have no idea whether or not Arafat is dead or alive. But the president did answer the question, saying that he agreed with what British Prime Minister Tony Blair said yesterday, that this needs to be a central part of the agenda, that is, Middle East peace.

(BEGIN VIDEO CLIP)

BUSH: The Middle East peace is a very important part of a peaceful world. I have been working on Middle Eastern peace ever since I've been the president. I laid down some -- a very hopeful strategy in June of 2002. And my hope is that we'll make good progress.

I think it's very important for our friends, the Israelis, to have a peaceful Palestinian state living on their border. It's very important for the Palestinian people to have a peaceful, hopeful future. That's why I articulated a two-state vision in that Rose Garden speech. I meant it when I said it, and I mean it now.

(END VIDEO CLIP)

MALVEAUX: Now, Miles, Kyra, of course, the White House has largely rejected Yasser Arafat over the last couple of years. They do not have a relationship with him, saying they believe that he has basically blocked that process on Middle East peace.

They want Palestinian leadership to emerge that can work with the Israelis, as well as this administration. That is their hope. Now the president is going to be heading to Camp David later today for a long weekend. He refused to speculate on what some of the new positions, cabinet positions, those who may be making changes for his next administration.

But CNN has learned earlier today from sources close to Attorney General Ashcroft that he will be at least one of the people that is likely to submit his resignation in the next couple of weeks -- Kyra, Miles.

O'BRIEN: Suzanne Malveaux at the White House, thank you very much.

Interim no longer. Afghan President Hamid Karzai today officially accepted his U.N.-sanctioned election and promptly promised there will not be private militias in Afghanistan and definitely, definitely not any drug-related corruption in his government. But first things first.

(BEGIN VIDEO CLIP)

HAMID KARZAI, PRESIDENT, AFGHANISTAN: The Afghan people have voted for a government based on laws, based on institutions. And that is what we are going to provide to them.

(END VIDEO CLIP)

O'BRIEN: Karzai's victory was affirmed just yesterday by a U.N./Afghan commission. He claimed 55 percent of the ballots cast almost a month ago, by 70 percent of Afghanistan's registered voters.

PHILLIPS: Ready to resign. Attorney General John Ashcroft apparently leaving sooner rather than later. We'll take a look at the impact and who might replace him.

And want your teeth to be their whitest? You may be doing more harm than good without even knowing it.

Speaking of teeth, a zoo visitor gets too close for comfort. That's right, it's a grabber.

We'll also have more on the fate of Elizabeth Edwards as she finds out she has breast cancer.

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

(COMMERCIAL BREAK)

PHILLIPS: Well, just one day after her husband and John Kerry conceded the Democratic race for the White House, we're finding out now that Elizabeth Edwards has been diagnosed with breast cancer.

We have more now from our congressional correspondent, Ed Henry.

What do you know, Ed? What can you tell us? ED HENRY, CNN CORRESPONDENT: Good afternoon, Kyra.

That's right. CNN has confirmed that Elizabeth Edwards was diagnosed with breast cancer yesterday afternoon, after her husband, Senator John Edwards, and Senator John Kerry offered their concession speeches in Boston.

Campaign spokesman David Ginsburg is telling CNN that Mrs. Edwards discovered a lump last week on the campaign trail. That lump was in her right breast.

Mrs. Edwards visited a doctor in Raleigh, North Carolina, on Friday to get it checked out. The doctor at that time suspected that it was cancerous, told her to go back to another doctor. She did that yesterday, and as I mentioned, she found out that it, in fact, was breast cancer.

But spokesman David Ginsburg is saying that both Mr. and Mrs. Edwards are in, quote, "good spirits." He also told me that they both feel good, quote, "that they're going to beat this."

And so, that coming from David Ginsburg, a spokesman for the Kerry/Edwards campaign. Said obviously, this is very difficult news for the Edwards family to deal with right now, especially so quickly after this difficult presidential battle, this loss.

This is something, obviously, that they have to take care of immediately. But they feel like they're in good spirits, and they feel like they're going to beat it -- Kyra.

PHILLIPS: Ed, obviously, there's a number of treatments that can take place for this. Are more tests being done to find out what treatment Elizabeth Edwards will deal with?

HENRY: I do not have information yet on exactly what treatment she is going to go through. But I can tell you that they are obviously saying that they're going to deal with it aggressively. They're dealing with it at once, and they certainly do feel good, though, about the prospects, in terms of how quickly they caught it. They feel like they are going to beat this -- Kyra.

PHILLIPS: All right, congressional correspondent Ed Henry, thank you so much. We'll have more from our medical correspondent, Elizabeth Cohen, coming up in just a few minutes -- Miles.

O'BRIEN: President Bush says there's some changes coming to his cabinet. And no names have been officially announced. Speculation is running rampant. One of the first to go will be Attorney General John Ashcroft.

Joining us from inside the beltway, someone who knows the ins and outs of D.C., as well as Atlanta, Georgia, former Georgia congressman, CNN special contributor, Bob Barr.

Bob, good to have you back with us.

BOB BARR, FORMER GEORGIA CONGRESSMAN: Thank you, Miles, always a pleasure.

O'BRIEN: all right. John Ashcroft, that, I guess, has always been widely rumored as a departure for the second term. First of all, how would you assess the Ashcroft's -- Ashcroft legacy? I know in particular, you have some problems with the Patriot Act, which he has championed.

BARR: Well, it's been very controversial. Of course, the attorney general, as all cabinet members in the Bush administration, were thrust headlong into an absolutely unprecedented situation on September 11. And it certainly takes its toll on any cabinet member.

But particularly for the attorney general, since virtually every aspect domestically, fighting the war on terror, has something to do with the attorney general.

But in particular, with regard to many of the measures that the administration has instituted since 9/11, such as the Patriot Act, such as the -- the data mining program, such as the TIPS (ph) and T.I. and the whole alphabet soup, these have upset an awful lot of conservatives and liberals alike, because they seem to go too far in law enforcement, and without enough regard for civil liberties and privacy rights in this country.

And a lot of us, including myself, have been urging the administration, including the attorney general, to get a little bit more balance. And maybe this will now be an opportunity to do that.

O'BRIEN: Do you think that is likely though, or will it be more likely that Mr. Bush will chose someone who will toe that same very conservative line?

BAR: Well, we don't know, of course. A number of us, including you all, have heard names, names such as former deputy attorney general Larry Thompson from Georgia, who would be an outstanding individual as the nation's top law enforcement and constitutional officer.

And I simply hope that whoever takes over for General Ashcroft will be a little bit better about listening to the concerns of right and the left on the substance of some of these programs and not have simply sort of a knee-jerk reaction that anybody who dares raise any questions about these programs and policies is somehow unpatriotic.

O'BRIEN: And is that the impression you got from John Ashcroft?

BARR: That certainly seemed to be part of the message that was being received. And those of us who have been in law enforcement such as myself, who have worked in the Congress on these issue, it's not at all that we're saying the government shouldn't have the necessary tools, including many aspects of the Patriot Act, with which to fight terrorism.

But, simply that there has to be more concern paid to the long- term effects on our civil liberties and the Bill of Rights in this country if we go too far. O'BRIEN: All right. Now some of the other names that are listed here, Marc Racicot, Bush campaign operative, Alberto Gonzalez, who is the White House general counsel, which would be a very notable Hispanic appointment. One of the names we thought of here, what about Rudy Giuliani?

BARR: Well, Mr. Giuliani certainly would be well qualified for that position, having served as a high official in the Department of Justice during the Reagan administration and then as the U.S. attorney in New York City for a number of years, including the time that I served as the U.S. attorney in Atlanta.

He needs -- simply needs to make a political decision, I think, as to what places him in the best position to run for president, as he seems very much inclined to do in four years. But he would certainly be among the most well qualified as an attorney general nominee.

O'BRIEN: It's kind of hard to do both, to be attorney general and run for president, for sure. Bob Barr, thank you very much, appreciate your time -- Kyra.

BARR: OK, Miles, thank you.

PHILLIPS: A story that's been developing within the past couple of days, that is the fate of Palestinian leader Yasser Arafat. A hospital spokesperson in Paris saying that Arafat is not dead, but has been moved within the hospital to an area more appropriate for his condition.

What exactly is that condition? We're still working that.

Now on the phone, Christiane Amanpour, also working this story.

Christiane, what's the new information you have?

CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Well, consistent with what a hospital spokesman said, as of the last couple of hours, according to my source with close ties to Palestinian leadership, Yasser Arafat is not dead, nor is he clinically dead.

However, he is, quote, "out of it." He is unable to recognize people. He is unable to talk. He's unable to react or make any kind of sensory movement at all. People still are not -- either we're not being told or they don't know the precise nature of his condition. But suffice to say, he's physically very, very critical, according to our source, and he is mentally also very critical.

And as we have been reporting, as my sources have been telling me over this last week, his mental faculties have steadily deteriorated over the last several days.

Now this does differ with the upbeat messages coming from Palestinian officials in Paris, but I'm being told that that is essentially, quote, "spin." They have been saying that he's gradually been improving. They've been saying that he's been giving orders and being kept abreast of political developments back in the territories and in the United States and around the world. And commenting on them and reading letters.

I'm being told that that is, in fact, not the case, that he has not been able to do that. And right now, he is in a state, I'm told, where he is not reacting at all, although he's still alive.

PHILLIPS: Christiane, you're staying away from the word coma. Is that still a word that we cannot use?

AMANPOUR: Well, I specifically asked that. I'm told that he was unconscious last night, but I was just simply told today that he was visited by certain people and he was unable to react or unable to -- to open his eyes, unable to make any comment at all.

So I think -- I think, to be honest with you, there is a discrepancy over whether he's in a coma or not. I personally have stayed away from the word "coma." Although last night I was told that he was unconscious when he was moved to the ICU unit in the hospital there, in Paris.

And at the same time, of course, there is a political -- political power struggle under way in that they're trying to determine how to continue functioning in terms of the Palestinian Authority and other security situations, out in the territories.

PHILLIPS: Christiane Amanpour, thank you so much.

We'll continue to follow the condition there of Yasser Arafat. Christiane Amanpour telling us right now his condition is, quote, "that he is out of it." Still staying away from the word coma. I guess a bit of a mystery still continues. We'll follow that story.

More LIVE FROM right after this.

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PHILLIPS (voice-over): Next on LIVE FROM, four more years. What's on the Bush agenda? Who's in, who's out? We'll go in depth.

Later on LIVE FROM, 25 years ago today, the revolution that led to an American hostage crisis. Iran's past and present relationship with the United States.

Tomorrow on LIVE FROM, who looks great in '08? Senator Hillary Clinton, former Mayor Rudy Giuliani, or will other political stars shine brighter?

(END VIDEO CLIP)

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PHILLIPS: It's been a tough 24 hours for the Edwards family. First, Senator John Edwards conceding to -- the Democratic race for the White House now just a day later, we find out that Elizabeth Edwards has been diagnosed with breast cancer. She actually found out yesterday the results of the tests that took place.

Elizabeth Cohen, our medical correspondent in New York, today she's working this story.

What more can you tell us, Elizabeth?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Well, Kyra, I can't tell you much more about Elizabeth Edwards' specific situation, because we don't have any more details.

But I can tell you that people used to talk about cancer as "the c word." They didn't want to say the entire word. But more and more people are talking about living with cancer. In fact, two million American women are living with breast cancer.

And in fact, the survival rates, when you look at them, when it's caught early enough, a 98 percent survival rate.

Now, the first thing that will happen, and I'm talking generically here, since I'm not -- we don't know much about Elizabeth Edwards' specific situation, is that doctors want to stage the cancer. They want to get a sample of the tumor. They want to see if it's fast growing or not. And they want to see if it has spread to the adjacent limp nodes, has it spread to other organs in the body. And once they do that, they can stage it on a scale from one to four.

Stage one is a 98 percent survival rate. Stage four is a 16 percent survival rate. But most breast cancers are diagnosed before stage four. Most breast cancers are diagnosed when doctors can actually do something about it -- Kyra.

PHILLIPS: Elizabeth, Mrs. Edwards has come forward talking about being on the South Beach Diet, talking about her weight. Can we talk about weight and age and how that plays a part in breast cancer?

COHEN: Age definitely plays a part in breast cancer, Kyra. As a matter of fact, eight out of ten breast cancer diagnoses in this country are made in women over the age of 50. So -- so age, there's no question, plays a role.

It's a little bit more questionable how much diet plays a role. There have been various kinds of studies done to see if different kinds of diets...

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PHILLIPS: Elizabeth Cohen, thank you.

O'BRIEN: While most of the country was caught up in post- election drama yesterday, jurors in the Scott Peterson double murder trial began deliberations.

CNN's Rusty Dornin joining us from Redwood City, California. Day two of that getting under way -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Miles, if you remember, jury selection for this trial began last March, the trial in June. It's now November. They spent five months hearing from nearly 200 witnesses in this case. Finally, it is decision time. It was a sober moment in the -- somber moment in the courtroom as the judge gave them instructions and guidelines for their decision. They are going to be able to choose guilty or not guilty for first degree or second-degree murder of Laci Peterson and her unborn son Connor.

Now, if they choose first degree, there's also a decision to be made about special circumstances, which is multiple murders. That would trigger a penalty phase, the death penalty phase of this trial.

They deliberated for about four hours yesterday. And for about two hours so far this morning. They won't be going home until they have a decision -- Miles.

O'BRIEN: Rusty, we weren't paying very close attention as they wrapped this one up. And for Mark Geragos, who obviously took this case to get a little bit of TV time and some attention, that probably made him a little bit upset.

Why don't you just tell us how really he and the prosecution closed this thing out?

DORNIN: Well, the prosecution surprised a lot of legal experts. They were criticize for having sort of a -- presenting a weak case in the beginning. But they did a very concise close.

They talked about the fact that, because Scott Peterson -- their strongest argument was he went fishing the same place that his wife and unborn son, their remains washed ashore.

They called Scott Peterson a liar, a cheat, a man with a motive to murder his wife. And that was that he did not really want to be a father, and also he was having his affair, of course with Amber Frey.

For the defense, Mark Geragos says, look, you -- don't convict Scott Peterson because you hate him. There is no motive here. There is no financial motive. There was no murder weapon. There was no crime scene. You know, there was no cause of death and no reason for Scott Peterson to have killed his wife.

In the rebuttal yesterday morning before the instructions, though, there was really sort of a dramatic moment. Because Mark Geragos had said perhaps she was abducted by homeless people or transients in the area.

Well, the prosecutor stood up and said, "Look, homeless people in Modesto are getting a bad rap," which brought a laugh from the jury. He also gave a very dramatic portrayal of how they believe she died, actually showing them how they believe that she was strangled by Scott Peterson. And they urged them to convict him.

So we'll just have to see what happens -- Miles.

O'BRIEN: All right. Rusty Dornin, we'll be watching it closely. Thank you very much -- Kyra. PHILLIPS: The economy was one of several hot button issues during the campaign. Now that President Bush has been re-elected what's on his economic agenda?

Rhonda Schaffler joins us live from the New York Stock Exchange to sort it all out.

Hi, Rhonda.

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