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CNN Live Today

Palestinian PM Resignation Still Stands; Hillary Clinton Not Democratic Heir Apparent?; New Anti-viral Kleenex; Fashion Designers In Hotel Business

Aired July 19, 2004 - 11:29 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.

DARYN KAGAN, CNN ANCHOR: I'm Daryn Kagan at CNN Center in Atlanta. Let's take a look at what is happening now in the news.
First in the Middle East, and explosion ripped through a house in refugee camp in Gaza. Two people are hurt. Thought the cause of the blast isn't clear, some believe explosives inside the house may have detonated -- a live report just ahead.

President Bush is meeting with the president of Chile today. Mr. Bush and President Ricardo Lagos are expected to discuss the importance of democracy, free trade and economic opportunity in South America.

Meanwhile, the Democrats presumptive challenger for the oval office taking a day off from the campaign trail. John Kerry has no public appearances today. And

His running mate is also staying close to home. John Edwards will focus on his home state of North Carolina. He has a fundraiser planned this afternoon in Durham.

Wildfires have forced thousands of people to flee their homes in Santa Clarita just north of Los Angeles. Dry conditions and strong winds are hampering efforts to fight the flames. This is just one of several wildfires firefighters are battling in and around California.

And speaking of fires in California, watch this. Dale Earnhardt, Jr. engulfed in flames yesterday. A crash during a practice run in northern California left the stock car racer with second degree burns on his chin and the inside of both of his legs. He crawled out of the car on his own. He should, believe it or not, be back in the driver's seat when NASCAR moves on to north -- to New Hampshire this weekend.

We focus now on the Middle East. Yasser Arafat's leadership is in question and Gaza is in turmoil today. The Palestinian prime minister describes the situation as chaos. Our Alessio Vinci is in Jerusalem with more on the Palestinian crisis -- Alessio.

ALESSIO VINCI, CNN CORRESPONDENT: Good morning, Daryn. The Palestinian Prime Minister Ahmed Qorei telling reporters that his resignation letter that he gave Chairman Arafat on Saturday still stands. That he's waiting for a written response by Chairman Arafat who, in the last few days, has already verbally told the Prime Minister Qorei that he does not want the prime minister to resign, that he wants him to stay there. However, the prime minister said he wants to resign because of what he described as cowardly (ph) and violent situation in Gaza. He said, however, that his fellow cabinet members are also asking him to stay on and not give up at this crucial moment.

At the end of the cabinet session, Prime Minister Qorei addressed reporters. He appealed for calm, saying that the fighting in the streets of Gaza is not the way to resolve the issues of corruption. He said that the cabinet has formed a committee with the specific tasks to meet with Chairman Arafat and to convey to him the concerns of the cabinet over the lack of security in Gaza and the resulting violence.

(BEGIN VIDEO CLIP)

AHMED QOREI, PALESTINIAN PRIME MINISTER (through translator): This is also a demand, an appeal to President Yasser Arafat, who is a part of consensus for everybody not in the Gaza strip -- it's a consensus for everybody in the Gaza Strip, and in the West Bank and everywhere.

There could be difference with him, but not over him or about him. That's why we say -- that (UNINTELLIGIBLE) we say time has come for you to activate our apparatuses on -- based on right steps. It is about time to appoint a suitable person in the suitable position. This is an appeal that is being sent from this cabinet to President Arafat.

(END VIDEO CLIP)

VINCI: Violence erupted in Gaza after Arafat announced a series of new appointments of key security officials on Saturday. Among them, his own nephew as head of national security -- a move that sparked violent protests in Gaza with militants, as well as members of Arafat's own Fatah movement, attacking some of the symbols of the Palestinian authority, burning to the ground a police station and attacking the headquarters of the Palestinian Authority Intelligence in Rafah in southern Gaza with hand grenades and fire bombs.

Ten people have been wounded as a result of those latest incidents. Prime Minister Qorei has said the issues of corruptions will be addressed. However, he said, that fighting in the streets of Gaza is not the right way to do it.

Back to you, Daryn.

KAGAN: Alessio, meanwhile, a different situation today: An explosion at a militant's home, but it's unclear as to the cause.

VINCI: That is correct. There was a large explosion in the refugee camp of Shati in Gaza. The house of a known Palestinian militant leader, apparently the target of an Israeli assassination attempt.

Sources within the Palestinian Popular Resistance are telling -- which is an umbrella organization, representing a number of militant groups -- says that the leader had left the house shortly before the explosion and was unhurt. However, three people have been injured as a result of this explosion, and one of them seriously.

Some witnesses are saying that they saw an Israeli drone in the sky just before the blast. But -- speculating the explosion may have been, indeed, the targeting assassination of this leader. However, others are saying that those injured weren't dealing with explosives at the time of the blast. Back to you, Daryn.

KAGAN: Alessio Vinci with the latest in the Middle East. Thank you.

Back here in the U.S., the report from the commission investigating the September 11th attacks is due out later this week. It already, though, has set off debate over the future of U.S. intelligence agencies.

Our White House correspondent Suzanne Malveaux has details on that.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN CORRESPONDENT (voice-over): Abraham Scott lost his beloved wife Janice (ph) at the Pentagon September 11th. The one thing he wants to hear from the commission investigating the attacks is...

ABRAHAM SCOTT, LOST WIFE ON 9/11: What's being done and what needs to be done in order to prevent this from happening again.

MALVEAUX: Thursday, the commission will release its final report, and sources familiar with it say it will call for a new national director of intelligence, a cabinet-level official to report directly to the president and oversee all 15 intelligence agencies. The goal: better prepare for terrorist attack by consolidating information.

But the proposal is already drawing fire from the Pentagon and CIA, who stand to lose authority over the estimated $40 billion in the annual intelligence budget. The CIA's acting director argues it's his job to overhaul the agency.

JOHN MCLAUGHLIN, ACTING CIA DIRECTOR: I see the director of central intelligence as someone who is able to do that and empowered to do so under the National Security Act of 1947.

MALVEAUX: Members of the Senate Intelligence Committee are divided.

SEN. DICK DURBIN (D), ILLINOIS: I'm open to suggestions for reform for one basic reason: Intelligence is our first line of defense in any war on terrorism. Our intelligence failed us before the invasion of Iraq.

SEN. SAXBY CHAMBLISS (R), GEORGIA: Now, if you just add another level of bureaucracy -- and that's exactly what Dick's talking about here, that we need to look at -- if you just add that, we're not going to do anything.

MALVEAUX: Abraham Scott, who lost so much on September 11th, wants more.

SCOTT: We need to bring in new blood that will get the job done.

MALVEAUX (on camera): Privately sources familiar with the interagency talks on creating an intelligence czar say there is such fierce opposition that the Bush administration is nowhere near reaching a consensus on intelligence reform.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

KAGAN: Well, some former CIA directors say they support the appointment of a new national intelligence chief. Stansfield Turner, head of the spy agency under President Carter, he was a guest earlier today on CNN.

(BEGIN VIDEO CLIP)

STANSFIELD TURNER, FMR. CIA DIRECTOR: It's a very important step. The administration thus far has done very little to change our intelligence apparatus to make it more efficient since 9/11. This is a big step that should be taken. Every commission that's looked at this since 9/11 has come up with this kind of a recommendation.

(END VIDEO CLIP)

KAGAN: Former CIA director James Woolsey also spoke out in favor of the idea in a television interview earlier this morning.

This year's presidential election is still months away, and yet there is already speculation in who will lead the Democratic ticket years to come. New York Senator Hillary Clinton may be a favorite, but our senior political analyst Bill Schneider says she is not the heir apparent.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER (voice-over): John Edwards now becomes the alternative to Hillary Clinton as the future Democratic standard- bearer. After all, they've both been certified for the job. She by a Democratic president...

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: Two for the price of one.

SCHNEIDER: ... and he by a Democratic would-be president.

JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: John Edwards is ready for this job.

SCHNEIDER: Watch Democrats who are nervous about having Hillary at the top of the ticket begin to gravitate towards Edwards, particularly in the south.

Does Hillary have higher ambitions? She made a pledge to New Yorkers in her Senate campaign.

SEN. HILLARY CLINTON (D), NEW YORK: I am going to serve my six- year term as senator. I owe it to the people of New York...

SCHNEIDER: Her term ends in 2006. If Kerry loses this year, the showdown between Edwards and Clinton could come in 2008. As the vice presidential candidate on a losing ticket, however, Edwards' stature may be diminished. Suppose Kerry gets elected for two terms, then Edwards becomes the instant favorite to head the ticket in 2012.

Elected vice presidents have a claim on party loyalty and nearly always get their party's nomination: Nixon in 1960; Humphrey in 1968; Mondale in 1984; Bush in 1988; Gore in 2000. If Kerry wins this year and then loses in 2008, it sets up a wide open contest in 2012.

Hillary's supporters are ready. They were outraged to hear that she would not have a speaking role at the Democratic convention in Boston. The former chairwoman of the New York Democratic party called it "a slap in the face -- for every woman in the Democratic party." Party leaders did not want a floor demonstration with signs saying "Let Hillary Speak."

TERRY MCAULIFFE, DNC NATIONAL CHAIRMAN: She is going to be on stage on Monday night. She and other senators collectively agreed which woman senator they wanted to speak.

SCHNEIDER (on camera): Listen carefully to what Senator Clinton says next Monday night and what John Edwards says on Wednesday night. You could hear the beginning of the next Democratic debate.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

KAGAN: Millions of overweight Americans could be affected by a new Medicare policy change. The agency is dropping language that says obesity is not an illness. That could make treatments like stomach surgery and diet programs eligible for Medicare coverage.

(BEGIN VIDEO CLIP)

TOMMY THOMPSON, HHS SECRETARY: You're going to see an impact very quickly, because we're changing the coverage right now.

It's going to be based upon individual cases. It's going to be for the first time, doctors will be able to analyze an individual and find out what sort of treatment he needs -- he or she needs. And then, they can apply for reimbursement through Medicare.

And Medicare will analyze each one of these cases on an individual basis based upon the medical and scientific evidence. We're also going to empanel a group of experts this fall to take a look at the whole subject to see how we might be able to combat it more effectively than we have in the past.

(END VIDEO CLIP)

KAGAN: Thompson says that obesity is a critical public health problem here in the U.S.

In our daily dose of health news, the makers of a new anti-viral tissue say the idea is really nothing to sneeze at, but does it really work? Our senior medical correspondent, Dr. Sanjay Gupta, reports on the new weapon in germ warfare.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CORRESPONDENT: Well, it is called the anti-viral Kleenex, but no one is saying that it's going to cure or even shorten the duration of the common cold. Kimberly Clark making the product. I have, actually, one of them here. This is the product.

You're going to find a Kleenex, and you're actually going to find a middle layer in the middle of this Kleenex that's going to have a couple of chemicals, which are actually going to trap and kill virus. And that's why it gets its name: the anti-viral Kleenex.

About 99.9% of viruses are actually going to be killed or actually trapped by this particular Kleenex. Again, no one is saying it's going to cure or fix the common cold, but it probably is going to help slow down the transmission of the common cold or the flu.

People blow their nose into this, the virus gets killed, and subsequently they don't transmit it either to their families or co- workers or wherever.

Now, a lot of the products have become quite popular, the antibacterial products for hand soaps, things like that. You'll see a lot of the images there. Those are really catching on. The question is: Do they really work any better? The answer: probably not. It drives more people to actually use the soaps, like this Kleenex will use more people to use the Kleenex. But it probably doesn't work any better than just soap and water.

Also, there is concern on the flip side that it might actually increase antibiotic resistance by increasing antibiotics and anti- virals into the community. It might cause a secondary problem. That was actually studied by Tufts University. They found really no superbug increase -- no increase in the levels of superbugs. Those are antibiotic resistant bugs. And no bacterial-level difference either. So, you have the same number of bacteria.

Your best bet, if you're concerned about the cold or flu, is probably going to be what your mother told you -- same age old wisdom: cover with a tissue when you blow your nose or sneeze; discard those used tissues; and frequent hand washing.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

KAGAN: To get your daily does of health news online, log on to our Web site. You'll find the latest medical news, a health library, and information on diet and fitness. The address is cnn.com/health.

Paisley comforters, beige wallpaper, oil paintings of small woodland creatures? Well, it's really not your thing? Get ready for a new way to stay. It's going to cost you, though. But we can give you a free peek. A look at designer hotels is next. It's out getaways segment

(COMMERCIAL BREAK)

KAGAN: If you like to travel in style, a designer hotel may be just the ticket for your next getaway. "Travel + Leisure" magazine looks at how top fashion designers are venturing into the hotel business -- as if they don't already have enough going on.

Nilou Motamed of "Travel + Leisure" joins us once again from New York. Nilou, great to see you.

NILOU MOTAMED, "TRAVEL + LEISURE" MAGAZINE: Great to see you, too, Daryn. You're right. They're very busy already.

KAGAN: Send you clothes, furniture, socks, now hotels.

MOTAMED: Now hotels.

KAGAN: Let's look at some of them. Giorgio Armani -- what is he up to? He has fantastic style.

MOTAMED: He has fantastic style, and this is really making the trend become to fruition. Giorgio Armani has said that he's going to have 14 new hotels. And he's joined up with a real estate developer from Dubai. And he said his first stop will be Dubai, and 14 new hotels will be opening; eight of which will be in the next five years.

And that really says something. People are in love with Giorgio Armani style. He's very elegant. He's done a home line recently. And this is really the way for him to take his brand to the next level.

KAGAN: What about Bulgari?

MOTAMED: Bulgari has teamed up with Ritz-Carlton. This is a very smart move on their part. They realize that they're not hoteliers, so they need to have the hotel know-how -- in case you order room service, you don't get a logo purse show up, you need your breakfast.

KAGAN: Although, you know...

MOTAMED: That's not a bad -- I like your style, Daryn. I like the way you're thinking.

KAGAN: Not good for breakfast, but you know, a girl can use an extra purse.

MOTAMED: Good for walking around with.

KAGAN: Yes.

MOTAMED: So, they actually have done a really detailed beautiful hotel in Milan, 52 rooms. And there are details like free-standing tarratine (ph) tubs and marble from Zimbabwe. They have spared no cost, and you will not be sparing any cost either.

KAGAN: Good. This is (ph) Brioni already set up -- Brioni is already set up in Milan.

MOTAMED: Brioni is set up, but -- as well as -- as well as Bulgari.

KAGAN: Oh, they're both in Milan?

MOTAMED: Yes, but -- of course, it's Italy. It makes all the sense in the world.

Brioni is on Via Gesu, and they only have one suite at the Four Seasons. And what's interesting about Brioni is what they've done is they haven't tried to brand different hotel products -- like, they don't have a Brioni mattress. What they have is -- what they're trying to present is the style of Brioni. And the consumer that loves Brioni is going to love this room.

So, there isn't anything that's a Brioni product in the room, but it's the essence of Brioni...

KAGAN: The essence...

MOTAMED: ... brought to a hotel.

KAGAN: Love it. And we're talking some -- a lot of lira here.

MOTAMED: Oh, yes. Absolutely. You're definitely pushing the $700 mark on this one.

KAGAN: A night or a month?

MOTAMED: Yes, a night. A night.

KAGAN: One night.

MOTAMED: One night -- go for the purse.

KAGAN: OK. It better be pretty. That's all I can say.

MOTAMED: It absolutely is. It's absolutely beautiful.

KAGAN: Nilou, thank you so much.

MOTAMED: Thank you so much for having me.

KAGAN: I can smell a girlfriends trip in the works to research this fully. Good to have you with us.

MOTAMED: Thanks.

KAGAN: Of course, if we're having a girlfriends trip, we're going to invite Rhonda Schaffler along. Rhonda, don't you think you would be able to do like the marketing and the business side of these fine hotels?

RHONDA SCHAFFLER, CNN CORRESPONDENT: I would just like to stay in one of those fine hotels, Daryn. So much for the marketing.

KAGAN: $700 a night.

SCHAFFLER: Well, we'd find somebody else to pay for it, I guess. Got to go on the company's dime.

KAGAN: Yes, the corporate card. What about the market?

SCHAFFLER: The market's struggling a bit. You know, it's interesting. It was off to a fairly quiet start, and now stocks have weakened. And one stock that's causing some trouble for the Dow is 3M. It's down about 5% after coming out with a less-than-stellar forecast. That's helping to push the Dow Industrials off 45 points. The Nasdaq, too, is lower.

One stock bucking the downtrend, though, is a company called NitroMed. Shares of the pharmaceutical firm are up 177%, or about $7 a share. NitroMed says it stopped a late-stage clinical trial of a heart medication for African-Americans. But it's not what you think.

The trial was actually stopped because the drug was performing too well. And an independent committee said it would be unethical not to give the drug to people in the control group. NitroMed says that after they get the final data from the trials, that drug should be on the market next year.

And that's the latest from here. Daryn, back to you.

KAGAN: Fascinating. Rhonda, thank you for that.

Well, first Bill Cosby made his opinions very clear. Now, another prominent African-American celebrity is lending his voice to a call for change. That story is just ahead.

(COMMERCIAL BREAK)

KAGAN: Look out, Spidey. "I, Robot" is on the loose. Will Smith's sci-fi thriller bumped "Spider-Man 2" off the top spot, pulling in $52.25 million at the box office this weekend. Even at number two, though, Spidey did OK, looking pretty healthy. The movie has taken in more than $300 million in just 19 days.

Filmmaker Spike Lee is making himself heard again. He is the latest prominent African-American celebrity to take up a controversial criticism for the black community. Over the weekend, Lee received the Innovator Award at the Eighth Annual American Black Film Festival in Miami. The five-day event is dedicated to promoting cultural diversity in filmmaking.

Last night, he talked to our Carol Lin about education in the African-American community.

(BEGIN VIDEO CLIP)

SPIKE LEE, DIRECTOR: I mean, this -- we've got to take off the kid gloves, because -- you have to realize: We're at a point where it's not just a matter that a large segment of African-American kids can't read or write. It's a fact that they don't want to learn how to read and write, because somehow they've been told that education is acting white.

(END VIDEO CLIP)

KAGAN: Lee's comments followed recent statements by Bill Cosby. He says that Cosby is addressing, quote, "serious monumental problems in the African-American community."

Five minutes to the top of the hour. Jacqui Jeras looking at the serious problems that southern California faces in terms of dry weather and the fires -- Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Yes, Daryn. I've been looking for some more information to help put this into perspective of just how bad the situation is this year. And I found these statistics from the National Interagency Fire Center.

The number of acres burned so far this year are more than four million. The number of acres burned as of this point last year, only 1.1 million. And the 10-year average number of acres burned between January and July 19th is 1.9 million. So, we're more than double where we should be or where we usually are. So, pretty impressive numbers there.

And the fire danger does continue across much of the southwest. There are 28 large, active fires burning at this time. And weather? A little bit of a factor here for today.

We've got a southwesterly flow pushing in across much of the west. And that's helping to pull in a little bit of moisture from the Pacific. So, that's some good news -- not enough to bring a lot of rainfall, but enough to bring the humidity up to 40%, 50%. And the minimum humidity across the southwest today, only about 20% to 30%. So, there are no critical fire weather areas outlined for today. So, that's some good news.

But this ridge is in place. And when you get a ridge like this, you don't get a lot of moisture pushing on in. And until that budges out of here, we aren't going to be seeing any dramatic improvements.

The winds will be gusting a little bit today, especially into the canyon. We're looking for some gusts around 20, 25 miles per hour or so.

(WEATHER REPORT) JERAS: But Daryn, more than double the number of acres than we normally see for this time of the year.

KAGAN: Jacqui Jeras. Jacqui, thank you for that information. Hopefully many raindrops headed to southern California. That's going to do it for me, Daryn Kagan. I'll be right back here in the seat tomorrow morning.

For now, though, Wolf Blitzer takes over from Washington, D.C. Wolf?

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Aired July 19, 2004 - 11:29 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: I'm Daryn Kagan at CNN Center in Atlanta. Let's take a look at what is happening now in the news.
First in the Middle East, and explosion ripped through a house in refugee camp in Gaza. Two people are hurt. Thought the cause of the blast isn't clear, some believe explosives inside the house may have detonated -- a live report just ahead.

President Bush is meeting with the president of Chile today. Mr. Bush and President Ricardo Lagos are expected to discuss the importance of democracy, free trade and economic opportunity in South America.

Meanwhile, the Democrats presumptive challenger for the oval office taking a day off from the campaign trail. John Kerry has no public appearances today. And

His running mate is also staying close to home. John Edwards will focus on his home state of North Carolina. He has a fundraiser planned this afternoon in Durham.

Wildfires have forced thousands of people to flee their homes in Santa Clarita just north of Los Angeles. Dry conditions and strong winds are hampering efforts to fight the flames. This is just one of several wildfires firefighters are battling in and around California.

And speaking of fires in California, watch this. Dale Earnhardt, Jr. engulfed in flames yesterday. A crash during a practice run in northern California left the stock car racer with second degree burns on his chin and the inside of both of his legs. He crawled out of the car on his own. He should, believe it or not, be back in the driver's seat when NASCAR moves on to north -- to New Hampshire this weekend.

We focus now on the Middle East. Yasser Arafat's leadership is in question and Gaza is in turmoil today. The Palestinian prime minister describes the situation as chaos. Our Alessio Vinci is in Jerusalem with more on the Palestinian crisis -- Alessio.

ALESSIO VINCI, CNN CORRESPONDENT: Good morning, Daryn. The Palestinian Prime Minister Ahmed Qorei telling reporters that his resignation letter that he gave Chairman Arafat on Saturday still stands. That he's waiting for a written response by Chairman Arafat who, in the last few days, has already verbally told the Prime Minister Qorei that he does not want the prime minister to resign, that he wants him to stay there. However, the prime minister said he wants to resign because of what he described as cowardly (ph) and violent situation in Gaza. He said, however, that his fellow cabinet members are also asking him to stay on and not give up at this crucial moment.

At the end of the cabinet session, Prime Minister Qorei addressed reporters. He appealed for calm, saying that the fighting in the streets of Gaza is not the way to resolve the issues of corruption. He said that the cabinet has formed a committee with the specific tasks to meet with Chairman Arafat and to convey to him the concerns of the cabinet over the lack of security in Gaza and the resulting violence.

(BEGIN VIDEO CLIP)

AHMED QOREI, PALESTINIAN PRIME MINISTER (through translator): This is also a demand, an appeal to President Yasser Arafat, who is a part of consensus for everybody not in the Gaza strip -- it's a consensus for everybody in the Gaza Strip, and in the West Bank and everywhere.

There could be difference with him, but not over him or about him. That's why we say -- that (UNINTELLIGIBLE) we say time has come for you to activate our apparatuses on -- based on right steps. It is about time to appoint a suitable person in the suitable position. This is an appeal that is being sent from this cabinet to President Arafat.

(END VIDEO CLIP)

VINCI: Violence erupted in Gaza after Arafat announced a series of new appointments of key security officials on Saturday. Among them, his own nephew as head of national security -- a move that sparked violent protests in Gaza with militants, as well as members of Arafat's own Fatah movement, attacking some of the symbols of the Palestinian authority, burning to the ground a police station and attacking the headquarters of the Palestinian Authority Intelligence in Rafah in southern Gaza with hand grenades and fire bombs.

Ten people have been wounded as a result of those latest incidents. Prime Minister Qorei has said the issues of corruptions will be addressed. However, he said, that fighting in the streets of Gaza is not the right way to do it.

Back to you, Daryn.

KAGAN: Alessio, meanwhile, a different situation today: An explosion at a militant's home, but it's unclear as to the cause.

VINCI: That is correct. There was a large explosion in the refugee camp of Shati in Gaza. The house of a known Palestinian militant leader, apparently the target of an Israeli assassination attempt.

Sources within the Palestinian Popular Resistance are telling -- which is an umbrella organization, representing a number of militant groups -- says that the leader had left the house shortly before the explosion and was unhurt. However, three people have been injured as a result of this explosion, and one of them seriously.

Some witnesses are saying that they saw an Israeli drone in the sky just before the blast. But -- speculating the explosion may have been, indeed, the targeting assassination of this leader. However, others are saying that those injured weren't dealing with explosives at the time of the blast. Back to you, Daryn.

KAGAN: Alessio Vinci with the latest in the Middle East. Thank you.

Back here in the U.S., the report from the commission investigating the September 11th attacks is due out later this week. It already, though, has set off debate over the future of U.S. intelligence agencies.

Our White House correspondent Suzanne Malveaux has details on that.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN CORRESPONDENT (voice-over): Abraham Scott lost his beloved wife Janice (ph) at the Pentagon September 11th. The one thing he wants to hear from the commission investigating the attacks is...

ABRAHAM SCOTT, LOST WIFE ON 9/11: What's being done and what needs to be done in order to prevent this from happening again.

MALVEAUX: Thursday, the commission will release its final report, and sources familiar with it say it will call for a new national director of intelligence, a cabinet-level official to report directly to the president and oversee all 15 intelligence agencies. The goal: better prepare for terrorist attack by consolidating information.

But the proposal is already drawing fire from the Pentagon and CIA, who stand to lose authority over the estimated $40 billion in the annual intelligence budget. The CIA's acting director argues it's his job to overhaul the agency.

JOHN MCLAUGHLIN, ACTING CIA DIRECTOR: I see the director of central intelligence as someone who is able to do that and empowered to do so under the National Security Act of 1947.

MALVEAUX: Members of the Senate Intelligence Committee are divided.

SEN. DICK DURBIN (D), ILLINOIS: I'm open to suggestions for reform for one basic reason: Intelligence is our first line of defense in any war on terrorism. Our intelligence failed us before the invasion of Iraq.

SEN. SAXBY CHAMBLISS (R), GEORGIA: Now, if you just add another level of bureaucracy -- and that's exactly what Dick's talking about here, that we need to look at -- if you just add that, we're not going to do anything.

MALVEAUX: Abraham Scott, who lost so much on September 11th, wants more.

SCOTT: We need to bring in new blood that will get the job done.

MALVEAUX (on camera): Privately sources familiar with the interagency talks on creating an intelligence czar say there is such fierce opposition that the Bush administration is nowhere near reaching a consensus on intelligence reform.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

KAGAN: Well, some former CIA directors say they support the appointment of a new national intelligence chief. Stansfield Turner, head of the spy agency under President Carter, he was a guest earlier today on CNN.

(BEGIN VIDEO CLIP)

STANSFIELD TURNER, FMR. CIA DIRECTOR: It's a very important step. The administration thus far has done very little to change our intelligence apparatus to make it more efficient since 9/11. This is a big step that should be taken. Every commission that's looked at this since 9/11 has come up with this kind of a recommendation.

(END VIDEO CLIP)

KAGAN: Former CIA director James Woolsey also spoke out in favor of the idea in a television interview earlier this morning.

This year's presidential election is still months away, and yet there is already speculation in who will lead the Democratic ticket years to come. New York Senator Hillary Clinton may be a favorite, but our senior political analyst Bill Schneider says she is not the heir apparent.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER (voice-over): John Edwards now becomes the alternative to Hillary Clinton as the future Democratic standard- bearer. After all, they've both been certified for the job. She by a Democratic president...

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES: Two for the price of one.

SCHNEIDER: ... and he by a Democratic would-be president.

JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: John Edwards is ready for this job.

SCHNEIDER: Watch Democrats who are nervous about having Hillary at the top of the ticket begin to gravitate towards Edwards, particularly in the south.

Does Hillary have higher ambitions? She made a pledge to New Yorkers in her Senate campaign.

SEN. HILLARY CLINTON (D), NEW YORK: I am going to serve my six- year term as senator. I owe it to the people of New York...

SCHNEIDER: Her term ends in 2006. If Kerry loses this year, the showdown between Edwards and Clinton could come in 2008. As the vice presidential candidate on a losing ticket, however, Edwards' stature may be diminished. Suppose Kerry gets elected for two terms, then Edwards becomes the instant favorite to head the ticket in 2012.

Elected vice presidents have a claim on party loyalty and nearly always get their party's nomination: Nixon in 1960; Humphrey in 1968; Mondale in 1984; Bush in 1988; Gore in 2000. If Kerry wins this year and then loses in 2008, it sets up a wide open contest in 2012.

Hillary's supporters are ready. They were outraged to hear that she would not have a speaking role at the Democratic convention in Boston. The former chairwoman of the New York Democratic party called it "a slap in the face -- for every woman in the Democratic party." Party leaders did not want a floor demonstration with signs saying "Let Hillary Speak."

TERRY MCAULIFFE, DNC NATIONAL CHAIRMAN: She is going to be on stage on Monday night. She and other senators collectively agreed which woman senator they wanted to speak.

SCHNEIDER (on camera): Listen carefully to what Senator Clinton says next Monday night and what John Edwards says on Wednesday night. You could hear the beginning of the next Democratic debate.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

KAGAN: Millions of overweight Americans could be affected by a new Medicare policy change. The agency is dropping language that says obesity is not an illness. That could make treatments like stomach surgery and diet programs eligible for Medicare coverage.

(BEGIN VIDEO CLIP)

TOMMY THOMPSON, HHS SECRETARY: You're going to see an impact very quickly, because we're changing the coverage right now.

It's going to be based upon individual cases. It's going to be for the first time, doctors will be able to analyze an individual and find out what sort of treatment he needs -- he or she needs. And then, they can apply for reimbursement through Medicare.

And Medicare will analyze each one of these cases on an individual basis based upon the medical and scientific evidence. We're also going to empanel a group of experts this fall to take a look at the whole subject to see how we might be able to combat it more effectively than we have in the past.

(END VIDEO CLIP)

KAGAN: Thompson says that obesity is a critical public health problem here in the U.S.

In our daily dose of health news, the makers of a new anti-viral tissue say the idea is really nothing to sneeze at, but does it really work? Our senior medical correspondent, Dr. Sanjay Gupta, reports on the new weapon in germ warfare.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CORRESPONDENT: Well, it is called the anti-viral Kleenex, but no one is saying that it's going to cure or even shorten the duration of the common cold. Kimberly Clark making the product. I have, actually, one of them here. This is the product.

You're going to find a Kleenex, and you're actually going to find a middle layer in the middle of this Kleenex that's going to have a couple of chemicals, which are actually going to trap and kill virus. And that's why it gets its name: the anti-viral Kleenex.

About 99.9% of viruses are actually going to be killed or actually trapped by this particular Kleenex. Again, no one is saying it's going to cure or fix the common cold, but it probably is going to help slow down the transmission of the common cold or the flu.

People blow their nose into this, the virus gets killed, and subsequently they don't transmit it either to their families or co- workers or wherever.

Now, a lot of the products have become quite popular, the antibacterial products for hand soaps, things like that. You'll see a lot of the images there. Those are really catching on. The question is: Do they really work any better? The answer: probably not. It drives more people to actually use the soaps, like this Kleenex will use more people to use the Kleenex. But it probably doesn't work any better than just soap and water.

Also, there is concern on the flip side that it might actually increase antibiotic resistance by increasing antibiotics and anti- virals into the community. It might cause a secondary problem. That was actually studied by Tufts University. They found really no superbug increase -- no increase in the levels of superbugs. Those are antibiotic resistant bugs. And no bacterial-level difference either. So, you have the same number of bacteria.

Your best bet, if you're concerned about the cold or flu, is probably going to be what your mother told you -- same age old wisdom: cover with a tissue when you blow your nose or sneeze; discard those used tissues; and frequent hand washing.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

KAGAN: To get your daily does of health news online, log on to our Web site. You'll find the latest medical news, a health library, and information on diet and fitness. The address is cnn.com/health.

Paisley comforters, beige wallpaper, oil paintings of small woodland creatures? Well, it's really not your thing? Get ready for a new way to stay. It's going to cost you, though. But we can give you a free peek. A look at designer hotels is next. It's out getaways segment

(COMMERCIAL BREAK)

KAGAN: If you like to travel in style, a designer hotel may be just the ticket for your next getaway. "Travel + Leisure" magazine looks at how top fashion designers are venturing into the hotel business -- as if they don't already have enough going on.

Nilou Motamed of "Travel + Leisure" joins us once again from New York. Nilou, great to see you.

NILOU MOTAMED, "TRAVEL + LEISURE" MAGAZINE: Great to see you, too, Daryn. You're right. They're very busy already.

KAGAN: Send you clothes, furniture, socks, now hotels.

MOTAMED: Now hotels.

KAGAN: Let's look at some of them. Giorgio Armani -- what is he up to? He has fantastic style.

MOTAMED: He has fantastic style, and this is really making the trend become to fruition. Giorgio Armani has said that he's going to have 14 new hotels. And he's joined up with a real estate developer from Dubai. And he said his first stop will be Dubai, and 14 new hotels will be opening; eight of which will be in the next five years.

And that really says something. People are in love with Giorgio Armani style. He's very elegant. He's done a home line recently. And this is really the way for him to take his brand to the next level.

KAGAN: What about Bulgari?

MOTAMED: Bulgari has teamed up with Ritz-Carlton. This is a very smart move on their part. They realize that they're not hoteliers, so they need to have the hotel know-how -- in case you order room service, you don't get a logo purse show up, you need your breakfast.

KAGAN: Although, you know...

MOTAMED: That's not a bad -- I like your style, Daryn. I like the way you're thinking.

KAGAN: Not good for breakfast, but you know, a girl can use an extra purse.

MOTAMED: Good for walking around with.

KAGAN: Yes.

MOTAMED: So, they actually have done a really detailed beautiful hotel in Milan, 52 rooms. And there are details like free-standing tarratine (ph) tubs and marble from Zimbabwe. They have spared no cost, and you will not be sparing any cost either.

KAGAN: Good. This is (ph) Brioni already set up -- Brioni is already set up in Milan.

MOTAMED: Brioni is set up, but -- as well as -- as well as Bulgari.

KAGAN: Oh, they're both in Milan?

MOTAMED: Yes, but -- of course, it's Italy. It makes all the sense in the world.

Brioni is on Via Gesu, and they only have one suite at the Four Seasons. And what's interesting about Brioni is what they've done is they haven't tried to brand different hotel products -- like, they don't have a Brioni mattress. What they have is -- what they're trying to present is the style of Brioni. And the consumer that loves Brioni is going to love this room.

So, there isn't anything that's a Brioni product in the room, but it's the essence of Brioni...

KAGAN: The essence...

MOTAMED: ... brought to a hotel.

KAGAN: Love it. And we're talking some -- a lot of lira here.

MOTAMED: Oh, yes. Absolutely. You're definitely pushing the $700 mark on this one.

KAGAN: A night or a month?

MOTAMED: Yes, a night. A night.

KAGAN: One night.

MOTAMED: One night -- go for the purse.

KAGAN: OK. It better be pretty. That's all I can say.

MOTAMED: It absolutely is. It's absolutely beautiful.

KAGAN: Nilou, thank you so much.

MOTAMED: Thank you so much for having me.

KAGAN: I can smell a girlfriends trip in the works to research this fully. Good to have you with us.

MOTAMED: Thanks.

KAGAN: Of course, if we're having a girlfriends trip, we're going to invite Rhonda Schaffler along. Rhonda, don't you think you would be able to do like the marketing and the business side of these fine hotels?

RHONDA SCHAFFLER, CNN CORRESPONDENT: I would just like to stay in one of those fine hotels, Daryn. So much for the marketing.

KAGAN: $700 a night.

SCHAFFLER: Well, we'd find somebody else to pay for it, I guess. Got to go on the company's dime.

KAGAN: Yes, the corporate card. What about the market?

SCHAFFLER: The market's struggling a bit. You know, it's interesting. It was off to a fairly quiet start, and now stocks have weakened. And one stock that's causing some trouble for the Dow is 3M. It's down about 5% after coming out with a less-than-stellar forecast. That's helping to push the Dow Industrials off 45 points. The Nasdaq, too, is lower.

One stock bucking the downtrend, though, is a company called NitroMed. Shares of the pharmaceutical firm are up 177%, or about $7 a share. NitroMed says it stopped a late-stage clinical trial of a heart medication for African-Americans. But it's not what you think.

The trial was actually stopped because the drug was performing too well. And an independent committee said it would be unethical not to give the drug to people in the control group. NitroMed says that after they get the final data from the trials, that drug should be on the market next year.

And that's the latest from here. Daryn, back to you.

KAGAN: Fascinating. Rhonda, thank you for that.

Well, first Bill Cosby made his opinions very clear. Now, another prominent African-American celebrity is lending his voice to a call for change. That story is just ahead.

(COMMERCIAL BREAK)

KAGAN: Look out, Spidey. "I, Robot" is on the loose. Will Smith's sci-fi thriller bumped "Spider-Man 2" off the top spot, pulling in $52.25 million at the box office this weekend. Even at number two, though, Spidey did OK, looking pretty healthy. The movie has taken in more than $300 million in just 19 days.

Filmmaker Spike Lee is making himself heard again. He is the latest prominent African-American celebrity to take up a controversial criticism for the black community. Over the weekend, Lee received the Innovator Award at the Eighth Annual American Black Film Festival in Miami. The five-day event is dedicated to promoting cultural diversity in filmmaking.

Last night, he talked to our Carol Lin about education in the African-American community.

(BEGIN VIDEO CLIP)

SPIKE LEE, DIRECTOR: I mean, this -- we've got to take off the kid gloves, because -- you have to realize: We're at a point where it's not just a matter that a large segment of African-American kids can't read or write. It's a fact that they don't want to learn how to read and write, because somehow they've been told that education is acting white.

(END VIDEO CLIP)

KAGAN: Lee's comments followed recent statements by Bill Cosby. He says that Cosby is addressing, quote, "serious monumental problems in the African-American community."

Five minutes to the top of the hour. Jacqui Jeras looking at the serious problems that southern California faces in terms of dry weather and the fires -- Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Yes, Daryn. I've been looking for some more information to help put this into perspective of just how bad the situation is this year. And I found these statistics from the National Interagency Fire Center.

The number of acres burned so far this year are more than four million. The number of acres burned as of this point last year, only 1.1 million. And the 10-year average number of acres burned between January and July 19th is 1.9 million. So, we're more than double where we should be or where we usually are. So, pretty impressive numbers there.

And the fire danger does continue across much of the southwest. There are 28 large, active fires burning at this time. And weather? A little bit of a factor here for today.

We've got a southwesterly flow pushing in across much of the west. And that's helping to pull in a little bit of moisture from the Pacific. So, that's some good news -- not enough to bring a lot of rainfall, but enough to bring the humidity up to 40%, 50%. And the minimum humidity across the southwest today, only about 20% to 30%. So, there are no critical fire weather areas outlined for today. So, that's some good news.

But this ridge is in place. And when you get a ridge like this, you don't get a lot of moisture pushing on in. And until that budges out of here, we aren't going to be seeing any dramatic improvements.

The winds will be gusting a little bit today, especially into the canyon. We're looking for some gusts around 20, 25 miles per hour or so.

(WEATHER REPORT) JERAS: But Daryn, more than double the number of acres than we normally see for this time of the year.

KAGAN: Jacqui Jeras. Jacqui, thank you for that information. Hopefully many raindrops headed to southern California. That's going to do it for me, Daryn Kagan. I'll be right back here in the seat tomorrow morning.

For now, though, Wolf Blitzer takes over from Washington, D.C. Wolf?

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