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CNN Live Today

Bush Launches 2nd-Term Agenda; Arafat's Health Falters; Deliberation Continues in the Scott Peterson Trial

Aired November 04, 2004 - 10:00   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.


RICK SANCHEZ, CNN ANCHOR: Boy, we're watching a lot for you this morning. Is there a possibility that John Ashcroft may step down sooner than later? The condition of Yasser Arafat. The Peterson decision could come down. And we'll learning now that George Bush is going to be speaking during our hours.
DARYN KAGAN, CNN ANCHOR: And so with a lot to do, let's get right to it; first start taking a look at what is happening now in the news.

One day after formally winning re-election, President Bush is just now convening a meeting of his cabinet members. They'll look ahead to the next four years. At the top of the hour, Mr. Bush will hold a news conference. Later, he departs the White House for some post campaign downtime at Camp David.

We are closely following reports on the condition of ailing Palestinian leader Yasser Arafat. Senior Palestinian officials tell CNN that he is in critical condition after drifting in and out of consciousness throughout the night. A news conference had been scheduled next hour at the Paris hospital where Arafat is being cared for, but tight-lipped medical officials have now canceled that news conference.

About 30 miles south of Baghdad, at least three people died in a roadside bombing. The attack in the insurgent hotspot apparently targeted an Iraqi National Guard patrol. Hospital officials say at least 15 people were wounded.

The Afghan kidnappers holding three United Nations workers, say the hostages are hungry and cold. And they're warning both the U.N. and Afghan government to stop stalling. Among the demands issued by the group called The Army of Muslims: the withdrawal of U.S. troops, the end to U.N. operations and the release of all Taliban prisoners.

And good morning. As Rick said off the top, we have a very busy one, lot of news. I'm Daryn Kagan.

And I'm Rick Sanchez. And here we go.

Fresh off the election victory, Present Bush is laying the groundwork for his second term. Mr. Bush meets with his cabinet this morning to discuss his domestic agenda. And word that the attorney general may be submitting his resignation in the near future. Just how near?

CNN's Suzanne Malveaux is at the White House. She's following this story for us. What do we know -- Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Rick, already there are indications of big changes with the president's second-term cabinet. Sources close to Attorney General John Ashcroft tells CNN that it is likely he will submit his resignation to the president. We are talking about perhaps in the next couple of weeks. There has been -- the attorney general has had some health problems earlier in the year. There has been quite a bit of talk that he would step down after one term.

Now, how this would work, he would submit his letter of resignation to the president. It would be then up to the White House to decide when they would make that official announcement. But sources close to the attorney general telling CNN that they believe that that is very likely to happen in the next couple of weeks.

As you know, of course, Attorney General John Ashcroft has been one to come to symbolize the far right, perhaps a lightening rod for some criticism. Also, someone who many people have looked at in terms of legislation, the -- many issues that have been somewhat controversial. But we have gotten word that perhaps that is -- he will step down in a couple of weeks -- Rick.

SANCHEZ: I'm also wondering, and I ask you this -- we're going to be covering this throughout this newscast in-depth, what the reaction may be from the White House on another issue. This certainly an international story that's being talked about in papers all over the world. And that is the condition of Yasser Arafat.

MALVEAUX: Well, as a matter of fact, we've just spoken with the White House press secretary Scott McClellan in a gaggle. They are not going to go beyond simply saying that it is important that he gets the medical care that he needs. They do not believe that it's appropriate to really speculate what his condition is. They say, of course, they're monitoring his condition.

As you know, of course, that this is an administration however, that has largely ignored Arafat. President Bush just last year saying that he felt he was an impediment, that he was sabotaging the peace process. But this is an administration that has come under a lot of criticism.

Just yesterday, Prime Minister Tony Blair saying that this administration needed to revitalize its effort in the Middle East peace process, that this is something this administration has not been attendant to -- Rick.

SANCHEZ: Suzanne Malveaux, it's going to be a busy day for you. We'll be getting back to you in the next couple of hours.

Daryn, over to you.

KAGAN: Another big issue for the Bush second, the possibility that the Supreme Court could undergo dramatic changes. There is, of course, the concern about Chief Justice William Rehnquist's health. Ruth Bader Ginsberg has also had health problems. And there are rumors others may retire. A different makeup on the bench could affect several issues.

(BEGIN VIDEO CLIP)

THOMAS GOLDSTEIN, APPELLATE ATTY., SUPREME COURT: There's likely to be more restriction on abortion. There's likely to be less affirmative action. There's likely to be more involvement with the government in religion.

(END VIDEO CLIP)

KAGAN: Liberal groups are gearing up for any Senate confirmation fight. Opposition could drag a nomination process out for months.

Well, John Kerry, he'll be heading back to Washington, but just not for the job that he was trying to get. Kerry will resume work in the Senate, pledging to do his part to bring the nation together. He gave his concession speech yesterday. And Kerry also spoke emotionally of his experience on the campaign trail.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), FMR. PRESIDENTIAL CANDIDATE: It was a privilege and a gift to spend two years traveling this country, coming to know so many of you. I wish that I could just wrap you up in my arms, and embrace each and every one of you individually all across this nation. I thank you from the bottom of my heart.

(CHEERING AND APPLAUSE)

KAGAN: Despite Kerry's defeat, there is some relief in his Beacon Hill neighborhood. Bostonians have had to deal with ID checks and blocked roads when the candidate was in town.

The election has been decided, but the vote count goes on in the state of Ohio. The final numbers on the provisional votes there are not expected for a while.

Our Deborah Feyerick looks at why John Kerry fell short in Ohio.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (on camera): The battleground predictions were true. In the end, it all came down to Ohio. The Democrats had really seen a big opening here because of the loss of jobs and manufacturing over the last four years. The Democrats fought hard for this state. The Republicans fought even harder.

(voice-over): In Ohio, it wasn't for lack of trying.

SEN. JOHN EDWARDS (D-NC), FMR. VICE PRESIDENTIAL CANDIDATE: You did a great job. Great job.

FEYERICK: John Kerry received 2.6 million votes, more than any Democrat in the state's history. More than Al Gore, who was narrowly defeated here. More than Bill Clinton who carried the state twice. Even more than native son, astronaut turned Senator John Glenn. Yet, Democrats say they met their goal, but Republicans trumped it. President Bush growing his base here, appealing to Christian evangelicals, turning out sky-high numbers in the west and southwest parts of the state.

KERRY: It is now clear that even when all the provisional ballots are counted, which they will be, there won't be enough outstanding votes for us to be able to win Ohio.

FEYERICK: Not enough, by nearly 137,000 votes. A margin of victory too great for Kerry to overcome.

KENNETH BLACKWELL, SECRETARY OF STATE, OHIO: Everybody should just take a deep breath and relax.

FEYERICK: As in most states, the chief election official here won't know the exact tally for several weeks. Provisional ballots must first be verified, then counted.

(on camera): One CNN analyst called Ohio Kerry's Heartbreak Hill. Hope ran high among the Democrats after Kerry won a key county, one that historically has picked the presidential winner. This time, history didn't apply. Conventional wisdom was defied.

Deborah Feyerick, CNN, Ohio.

(END VIDEOTAPE)

SANCHEZ: Now let's get to some numbers -- some new numbers, we should say, on the presidential election. There's a CNN/"USA Today"/Gallup poll that we want to share with you. It shows that 51 percent of respondents say they're pleased with the outcome. Thirty- eight percent say they're upset, 9 percent say it doesn't matter.

But the polling also shows a large majority, 80 percent, agreed with Senator Kerry's decision to concede the election and not challenge this close vote in Ohio.

Now to the Arafat story that we've been following all morning long. Concerns today about Yasser Arafat's health, the Palestinian leader is in intensive care. We've been getting conflicting stories out of there all morning long.

Here to try and clear it up is CNN's Fionnuala Sweeney. She's outside Arafat's hospital in Paris.

Fionnuala, over to you.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Rick, a sense of heightened expectation here outside the Percy Military Hospital in Paris, as we await long promised news conference on the state of Yasser Arafat's health. Within the last hour, a motorcade containing Jacques Chirac, the president of France, swept into the hospital behind me. He stayed about 30 minutes or so before leaving without speaking to waiting press. What aides are telling us here in Paris is that Yasser Arafat, the 75-year-old Palestinian leader and Authority president, is critically ill. He took a setback yesterday following medical tests to diagnose his condition. He has been apparently in and out of consciousness all night and throughout the day. And is by all accounts, not in a well state at all.

However, there are various sources, and conflicting reports about this. In Ramallah in the West Bank, we understand that he is merely being sedated to allow the medical tests to establish his condition. But at the same time here, aides around Yasser Arafat, aides who are here with the Palestinian delegation are saying he is critically ill.

But as I say it all depends on what the doctors say. And we are still waiting here for the doctors to say something -- Rick.

SANCHEZ: And when they do, we'll be checking back with you. Fionnuala Sweeney, following that story for us from just outside of hospital in Paris.

KAGAN: You're all choked up there.

SANCHEZ: Yes, all of a sudden.

KAGAN: You OK?

SANCHEZ: Yes. I'm all right.

KAGAN: All right. We'll get you some water.

SANCHEZ: A little more coffee, actually.

KAGAN: We'll take care of you.

A newspaper in Europe poses a question to Americans today. KAGAN: Still to come, cast your eyes on this headline.

SANCHEZ: Hmm.

KAGAN: No holds barred on European opinions on the U.S. election. We will go live to London.

SANCHEZ: Yes, and that's just one of them.

Also, Scott Peterson, guilty or not guilty? It's all now in the hands of a jury.

KAGAN: And is it a question of animosity in the Michael Jackson case? Still to come, a request by the King of Pop goes before the court.

(COMMERCIAL BREAK)

KAGAN: There was actually a little room for non-election news on Tuesday and much of yesterday. So here's an update on a story that we have been following for a long time. Jurors have begun deliberating in the case of Scott Peterson, the California man charged with murdering his wife Laci and their unborn son Conner.

CNN's Chris Lawrence has that story.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): They've listened to nearly 200 witnesses over 23 weeks. But now the only voices that matter to this jury are their own.

JUDGE ALFRED DELUCCHI, SAN MATEO COUNTY: The only time you can discuss this case is when you're back in the jury room.

LAWRENCE: There is no murder weapon or cause of death. So the jury will decide based on circumstantial evidence.

UNIDENTIFIED MALE: Jurors don't like to leave a jury room with questions unanswered. And there are questions they will never know in this case.

LAWRENCE: Such as when, where and even how Laci died. But some legal experts say the biggest question is one the defense failed to answer.

How could it be that these two bodies washed up within a stone's throw of where Scott Peterson was fishing?

LAWRENCE: The defense argues that Peterson showed no physical signs that could be consistent with a struggle. But prosecutor Rick Distaso said Peterson's own words, as he explained a fishing accident, contradicted that.

UNIDENTIFIED MALE: And then he played the tape of Scott Peterson himself going, look at the scratches and scars on my hands. I cut my hands that day.

LAWRENCE: In his closing arguments, defense attorney Mark Geragos told jurors they can't convict Peterson just because they don't like him. And said the case comes down to evidence versus emotion.

(on camera): Peterson is charged with two counts of murder, one for his wife who was eight months pregnant and another for his unborn son. The jury will decide whether to acquit him. Or if guilty, whether it's in the first or second degree.

Chris Lawrence, CNN, Redwood City, California.

(END VIDEOTAPE)

KAGAN: And now for some more "Legal Briefs."

SANCHEZ: Yes. Attorneys for Michael Jackson are going to be asking at a hearing next hour that the prosecutor be removed from his upcoming child molestation trial.

KAGAN: Jackson says that District Attorney Tom Sneddon is exercising a personal vendetta and that a conflict of interest prevents a fair trail.

SANCHEZ: Here's another one. An elderly California motorist is going to face a manslaughter trial for last summer's deadly crash at a Santa Monica farmer's market. Eighty-seven year old George Russell Weller plowed into dozens of people, killing 10, injuring 63 others. He's pleaded guilty. But if convicted, could face up to 18 years in prison.

KAGAN: In Portland, Oregon about 200 protesters launched a demonstration against the Iraq War and called for a closer scrutiny of President Bush-reelection. Police in riot gear and on horseback met the protesters but there were only a few arrests and no injuries were reported.

SANCHEZ: With all the other news that we're following on this day, there's this. You occasionally hear about dumb criminals, but some stories are sometimes truly unbelievable.

KAGAN: Still to come, a rape victim spots the man that she says attacked her. And you'll never guess where she says she saw him.

SANCHEZ: But first, it was a bad day for the Democrats. Losers across the board. So now what next? We take a look at the future of the party on CNN LIVE TODAY rolls on.

(COMMERCIAL BREAK)

SANCHEZ: Now, the budget. Some or at least one looming question is will anything be done to reduce the record budget deficit.

KAGAN: Our Allan Chernoff reports it's going to take a little luck and a lot of hard choices.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNNFN CORRESPONDENT (voice-over): President Bush's plan is to cut the deficit in half during his second term. If the economy were to accelerate, higher tax revenues would help. But many economists say the president has little chance of achieving his goal.

UNIDENTIFIED MALE: The trouble is, cutting it in half requires some very hard choices. And this administration hasn't shown any interest in making those hard choices.

CHERNOFF: President Bush inherited a budget surplus, $127 billion in fiscal 2001. The fiscal year that just ended in September had the largest annual deficit in history, $413 billion.

The turn-around was the result of increased spending on Defense, Homeland Security, Medicare, Medicaid, as well as the cost of the Treasury of tax cuts. During his second term, President Bush plans to make the cuts permanent. And boost spending for Defense, Homeland Security, aid to farmers, and the Medicare prescription drug benefit.

When we get to 2006, '07 and '08, particularly '07 and '08, an aging population and retiring baby boomers are going to make very big demands on the federal budget. And that's when the structural deficit is likely to move much higher.

CHERNOFF: Worries about the budget deficit are partly responsible for the dollar losing one-fifth of its value during the Bush presidency. The drop reduces the purchasing power of Americans. Imported goods are more costly. And it's more expensive to travel overseas. Higher deficits also can boost long-term interest rates and create a burden for future generations to pay off.

Allan Chernoff, CNN Financial News, New York.

(END VIDEOTAPE)

KAGAN: Entertainers, comedians and athletes alike tried to entice them.

SANCHEZ: Yes. And so did young Americans deliver at the polls? We're going to take a look at the efforts, and perhaps more importantly, the results.

KAGAN: And then, Europeans' react to President Bush's second term. Up next, we'll take you live to London.

(COMMERCIAL BREAK)

KAGAN: We're getting somewhat close to the half hour. Let's start things again. I'm Daryn Kagan.

SANCHEZ: And I'm Rick Sanchez. And here's what's happening right now in the news.

President Bush is meeting with his cabinet this morning as he plans his second term agenda. Some of the domestic issues Mr. Bush wants to focus on include: simplifying the tax codes, making tax cuts permanent and revamping Social Security. The president is expected to hold a news conference at the top of the hour. CNN is going to bring it to you live right here when it happens.

Justice Department sources say Attorney General John Ashcroft will likely resign in the near future. For some months, sources have suggested that Ashcroft had no plans to serve a second term. Health is believed to be a factor in the attorney general's plans. We are all over that story. And we'll bring you many of the details.

Also, U.S. forces soon to be moving closer to a major offensive in Falluja. Military officials say overnight air strikes destroyed several barricaded fights positions. The Air Force attacks were supported by a Marine Corps element. Iraqi government officials say a peace initiative in Falluja is in its final stages.

And the jury in the Scott Peterson double murder trial resumes deliberations one hour from now. The judge has sequestered the jury throughout the verdict process, which began yesterday, as you may know. Should they decide to convict, jurors have a choice of first- degree or second-degree murder. And we will certainly bring it to you if and when it happens.

KAGAN: An aide to Yasser Arafat says the Palestinian leader is in critical condition, and has been drifting in and out of consciousness. But no official at the Paris military hospital where Arafat is staying have confirmed that condition. Doctors have been conducting tests on Arafat since he arrived on Friday. Palestinian officials have said Arafat is suffering from a blood disorder.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired November 4, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CNN ANCHOR: Boy, we're watching a lot for you this morning. Is there a possibility that John Ashcroft may step down sooner than later? The condition of Yasser Arafat. The Peterson decision could come down. And we'll learning now that George Bush is going to be speaking during our hours.
DARYN KAGAN, CNN ANCHOR: And so with a lot to do, let's get right to it; first start taking a look at what is happening now in the news.

One day after formally winning re-election, President Bush is just now convening a meeting of his cabinet members. They'll look ahead to the next four years. At the top of the hour, Mr. Bush will hold a news conference. Later, he departs the White House for some post campaign downtime at Camp David.

We are closely following reports on the condition of ailing Palestinian leader Yasser Arafat. Senior Palestinian officials tell CNN that he is in critical condition after drifting in and out of consciousness throughout the night. A news conference had been scheduled next hour at the Paris hospital where Arafat is being cared for, but tight-lipped medical officials have now canceled that news conference.

About 30 miles south of Baghdad, at least three people died in a roadside bombing. The attack in the insurgent hotspot apparently targeted an Iraqi National Guard patrol. Hospital officials say at least 15 people were wounded.

The Afghan kidnappers holding three United Nations workers, say the hostages are hungry and cold. And they're warning both the U.N. and Afghan government to stop stalling. Among the demands issued by the group called The Army of Muslims: the withdrawal of U.S. troops, the end to U.N. operations and the release of all Taliban prisoners.

And good morning. As Rick said off the top, we have a very busy one, lot of news. I'm Daryn Kagan.

And I'm Rick Sanchez. And here we go.

Fresh off the election victory, Present Bush is laying the groundwork for his second term. Mr. Bush meets with his cabinet this morning to discuss his domestic agenda. And word that the attorney general may be submitting his resignation in the near future. Just how near?

CNN's Suzanne Malveaux is at the White House. She's following this story for us. What do we know -- Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Rick, already there are indications of big changes with the president's second-term cabinet. Sources close to Attorney General John Ashcroft tells CNN that it is likely he will submit his resignation to the president. We are talking about perhaps in the next couple of weeks. There has been -- the attorney general has had some health problems earlier in the year. There has been quite a bit of talk that he would step down after one term.

Now, how this would work, he would submit his letter of resignation to the president. It would be then up to the White House to decide when they would make that official announcement. But sources close to the attorney general telling CNN that they believe that that is very likely to happen in the next couple of weeks.

As you know, of course, Attorney General John Ashcroft has been one to come to symbolize the far right, perhaps a lightening rod for some criticism. Also, someone who many people have looked at in terms of legislation, the -- many issues that have been somewhat controversial. But we have gotten word that perhaps that is -- he will step down in a couple of weeks -- Rick.

SANCHEZ: I'm also wondering, and I ask you this -- we're going to be covering this throughout this newscast in-depth, what the reaction may be from the White House on another issue. This certainly an international story that's being talked about in papers all over the world. And that is the condition of Yasser Arafat.

MALVEAUX: Well, as a matter of fact, we've just spoken with the White House press secretary Scott McClellan in a gaggle. They are not going to go beyond simply saying that it is important that he gets the medical care that he needs. They do not believe that it's appropriate to really speculate what his condition is. They say, of course, they're monitoring his condition.

As you know, of course, that this is an administration however, that has largely ignored Arafat. President Bush just last year saying that he felt he was an impediment, that he was sabotaging the peace process. But this is an administration that has come under a lot of criticism.

Just yesterday, Prime Minister Tony Blair saying that this administration needed to revitalize its effort in the Middle East peace process, that this is something this administration has not been attendant to -- Rick.

SANCHEZ: Suzanne Malveaux, it's going to be a busy day for you. We'll be getting back to you in the next couple of hours.

Daryn, over to you.

KAGAN: Another big issue for the Bush second, the possibility that the Supreme Court could undergo dramatic changes. There is, of course, the concern about Chief Justice William Rehnquist's health. Ruth Bader Ginsberg has also had health problems. And there are rumors others may retire. A different makeup on the bench could affect several issues.

(BEGIN VIDEO CLIP)

THOMAS GOLDSTEIN, APPELLATE ATTY., SUPREME COURT: There's likely to be more restriction on abortion. There's likely to be less affirmative action. There's likely to be more involvement with the government in religion.

(END VIDEO CLIP)

KAGAN: Liberal groups are gearing up for any Senate confirmation fight. Opposition could drag a nomination process out for months.

Well, John Kerry, he'll be heading back to Washington, but just not for the job that he was trying to get. Kerry will resume work in the Senate, pledging to do his part to bring the nation together. He gave his concession speech yesterday. And Kerry also spoke emotionally of his experience on the campaign trail.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), FMR. PRESIDENTIAL CANDIDATE: It was a privilege and a gift to spend two years traveling this country, coming to know so many of you. I wish that I could just wrap you up in my arms, and embrace each and every one of you individually all across this nation. I thank you from the bottom of my heart.

(CHEERING AND APPLAUSE)

KAGAN: Despite Kerry's defeat, there is some relief in his Beacon Hill neighborhood. Bostonians have had to deal with ID checks and blocked roads when the candidate was in town.

The election has been decided, but the vote count goes on in the state of Ohio. The final numbers on the provisional votes there are not expected for a while.

Our Deborah Feyerick looks at why John Kerry fell short in Ohio.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (on camera): The battleground predictions were true. In the end, it all came down to Ohio. The Democrats had really seen a big opening here because of the loss of jobs and manufacturing over the last four years. The Democrats fought hard for this state. The Republicans fought even harder.

(voice-over): In Ohio, it wasn't for lack of trying.

SEN. JOHN EDWARDS (D-NC), FMR. VICE PRESIDENTIAL CANDIDATE: You did a great job. Great job.

FEYERICK: John Kerry received 2.6 million votes, more than any Democrat in the state's history. More than Al Gore, who was narrowly defeated here. More than Bill Clinton who carried the state twice. Even more than native son, astronaut turned Senator John Glenn. Yet, Democrats say they met their goal, but Republicans trumped it. President Bush growing his base here, appealing to Christian evangelicals, turning out sky-high numbers in the west and southwest parts of the state.

KERRY: It is now clear that even when all the provisional ballots are counted, which they will be, there won't be enough outstanding votes for us to be able to win Ohio.

FEYERICK: Not enough, by nearly 137,000 votes. A margin of victory too great for Kerry to overcome.

KENNETH BLACKWELL, SECRETARY OF STATE, OHIO: Everybody should just take a deep breath and relax.

FEYERICK: As in most states, the chief election official here won't know the exact tally for several weeks. Provisional ballots must first be verified, then counted.

(on camera): One CNN analyst called Ohio Kerry's Heartbreak Hill. Hope ran high among the Democrats after Kerry won a key county, one that historically has picked the presidential winner. This time, history didn't apply. Conventional wisdom was defied.

Deborah Feyerick, CNN, Ohio.

(END VIDEOTAPE)

SANCHEZ: Now let's get to some numbers -- some new numbers, we should say, on the presidential election. There's a CNN/"USA Today"/Gallup poll that we want to share with you. It shows that 51 percent of respondents say they're pleased with the outcome. Thirty- eight percent say they're upset, 9 percent say it doesn't matter.

But the polling also shows a large majority, 80 percent, agreed with Senator Kerry's decision to concede the election and not challenge this close vote in Ohio.

Now to the Arafat story that we've been following all morning long. Concerns today about Yasser Arafat's health, the Palestinian leader is in intensive care. We've been getting conflicting stories out of there all morning long.

Here to try and clear it up is CNN's Fionnuala Sweeney. She's outside Arafat's hospital in Paris.

Fionnuala, over to you.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Rick, a sense of heightened expectation here outside the Percy Military Hospital in Paris, as we await long promised news conference on the state of Yasser Arafat's health. Within the last hour, a motorcade containing Jacques Chirac, the president of France, swept into the hospital behind me. He stayed about 30 minutes or so before leaving without speaking to waiting press. What aides are telling us here in Paris is that Yasser Arafat, the 75-year-old Palestinian leader and Authority president, is critically ill. He took a setback yesterday following medical tests to diagnose his condition. He has been apparently in and out of consciousness all night and throughout the day. And is by all accounts, not in a well state at all.

However, there are various sources, and conflicting reports about this. In Ramallah in the West Bank, we understand that he is merely being sedated to allow the medical tests to establish his condition. But at the same time here, aides around Yasser Arafat, aides who are here with the Palestinian delegation are saying he is critically ill.

But as I say it all depends on what the doctors say. And we are still waiting here for the doctors to say something -- Rick.

SANCHEZ: And when they do, we'll be checking back with you. Fionnuala Sweeney, following that story for us from just outside of hospital in Paris.

KAGAN: You're all choked up there.

SANCHEZ: Yes, all of a sudden.

KAGAN: You OK?

SANCHEZ: Yes. I'm all right.

KAGAN: All right. We'll get you some water.

SANCHEZ: A little more coffee, actually.

KAGAN: We'll take care of you.

A newspaper in Europe poses a question to Americans today. KAGAN: Still to come, cast your eyes on this headline.

SANCHEZ: Hmm.

KAGAN: No holds barred on European opinions on the U.S. election. We will go live to London.

SANCHEZ: Yes, and that's just one of them.

Also, Scott Peterson, guilty or not guilty? It's all now in the hands of a jury.

KAGAN: And is it a question of animosity in the Michael Jackson case? Still to come, a request by the King of Pop goes before the court.

(COMMERCIAL BREAK)

KAGAN: There was actually a little room for non-election news on Tuesday and much of yesterday. So here's an update on a story that we have been following for a long time. Jurors have begun deliberating in the case of Scott Peterson, the California man charged with murdering his wife Laci and their unborn son Conner.

CNN's Chris Lawrence has that story.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): They've listened to nearly 200 witnesses over 23 weeks. But now the only voices that matter to this jury are their own.

JUDGE ALFRED DELUCCHI, SAN MATEO COUNTY: The only time you can discuss this case is when you're back in the jury room.

LAWRENCE: There is no murder weapon or cause of death. So the jury will decide based on circumstantial evidence.

UNIDENTIFIED MALE: Jurors don't like to leave a jury room with questions unanswered. And there are questions they will never know in this case.

LAWRENCE: Such as when, where and even how Laci died. But some legal experts say the biggest question is one the defense failed to answer.

How could it be that these two bodies washed up within a stone's throw of where Scott Peterson was fishing?

LAWRENCE: The defense argues that Peterson showed no physical signs that could be consistent with a struggle. But prosecutor Rick Distaso said Peterson's own words, as he explained a fishing accident, contradicted that.

UNIDENTIFIED MALE: And then he played the tape of Scott Peterson himself going, look at the scratches and scars on my hands. I cut my hands that day.

LAWRENCE: In his closing arguments, defense attorney Mark Geragos told jurors they can't convict Peterson just because they don't like him. And said the case comes down to evidence versus emotion.

(on camera): Peterson is charged with two counts of murder, one for his wife who was eight months pregnant and another for his unborn son. The jury will decide whether to acquit him. Or if guilty, whether it's in the first or second degree.

Chris Lawrence, CNN, Redwood City, California.

(END VIDEOTAPE)

KAGAN: And now for some more "Legal Briefs."

SANCHEZ: Yes. Attorneys for Michael Jackson are going to be asking at a hearing next hour that the prosecutor be removed from his upcoming child molestation trial.

KAGAN: Jackson says that District Attorney Tom Sneddon is exercising a personal vendetta and that a conflict of interest prevents a fair trail.

SANCHEZ: Here's another one. An elderly California motorist is going to face a manslaughter trial for last summer's deadly crash at a Santa Monica farmer's market. Eighty-seven year old George Russell Weller plowed into dozens of people, killing 10, injuring 63 others. He's pleaded guilty. But if convicted, could face up to 18 years in prison.

KAGAN: In Portland, Oregon about 200 protesters launched a demonstration against the Iraq War and called for a closer scrutiny of President Bush-reelection. Police in riot gear and on horseback met the protesters but there were only a few arrests and no injuries were reported.

SANCHEZ: With all the other news that we're following on this day, there's this. You occasionally hear about dumb criminals, but some stories are sometimes truly unbelievable.

KAGAN: Still to come, a rape victim spots the man that she says attacked her. And you'll never guess where she says she saw him.

SANCHEZ: But first, it was a bad day for the Democrats. Losers across the board. So now what next? We take a look at the future of the party on CNN LIVE TODAY rolls on.

(COMMERCIAL BREAK)

SANCHEZ: Now, the budget. Some or at least one looming question is will anything be done to reduce the record budget deficit.

KAGAN: Our Allan Chernoff reports it's going to take a little luck and a lot of hard choices.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNNFN CORRESPONDENT (voice-over): President Bush's plan is to cut the deficit in half during his second term. If the economy were to accelerate, higher tax revenues would help. But many economists say the president has little chance of achieving his goal.

UNIDENTIFIED MALE: The trouble is, cutting it in half requires some very hard choices. And this administration hasn't shown any interest in making those hard choices.

CHERNOFF: President Bush inherited a budget surplus, $127 billion in fiscal 2001. The fiscal year that just ended in September had the largest annual deficit in history, $413 billion.

The turn-around was the result of increased spending on Defense, Homeland Security, Medicare, Medicaid, as well as the cost of the Treasury of tax cuts. During his second term, President Bush plans to make the cuts permanent. And boost spending for Defense, Homeland Security, aid to farmers, and the Medicare prescription drug benefit.

When we get to 2006, '07 and '08, particularly '07 and '08, an aging population and retiring baby boomers are going to make very big demands on the federal budget. And that's when the structural deficit is likely to move much higher.

CHERNOFF: Worries about the budget deficit are partly responsible for the dollar losing one-fifth of its value during the Bush presidency. The drop reduces the purchasing power of Americans. Imported goods are more costly. And it's more expensive to travel overseas. Higher deficits also can boost long-term interest rates and create a burden for future generations to pay off.

Allan Chernoff, CNN Financial News, New York.

(END VIDEOTAPE)

KAGAN: Entertainers, comedians and athletes alike tried to entice them.

SANCHEZ: Yes. And so did young Americans deliver at the polls? We're going to take a look at the efforts, and perhaps more importantly, the results.

KAGAN: And then, Europeans' react to President Bush's second term. Up next, we'll take you live to London.

(COMMERCIAL BREAK)

KAGAN: We're getting somewhat close to the half hour. Let's start things again. I'm Daryn Kagan.

SANCHEZ: And I'm Rick Sanchez. And here's what's happening right now in the news.

President Bush is meeting with his cabinet this morning as he plans his second term agenda. Some of the domestic issues Mr. Bush wants to focus on include: simplifying the tax codes, making tax cuts permanent and revamping Social Security. The president is expected to hold a news conference at the top of the hour. CNN is going to bring it to you live right here when it happens.

Justice Department sources say Attorney General John Ashcroft will likely resign in the near future. For some months, sources have suggested that Ashcroft had no plans to serve a second term. Health is believed to be a factor in the attorney general's plans. We are all over that story. And we'll bring you many of the details.

Also, U.S. forces soon to be moving closer to a major offensive in Falluja. Military officials say overnight air strikes destroyed several barricaded fights positions. The Air Force attacks were supported by a Marine Corps element. Iraqi government officials say a peace initiative in Falluja is in its final stages.

And the jury in the Scott Peterson double murder trial resumes deliberations one hour from now. The judge has sequestered the jury throughout the verdict process, which began yesterday, as you may know. Should they decide to convict, jurors have a choice of first- degree or second-degree murder. And we will certainly bring it to you if and when it happens.

KAGAN: An aide to Yasser Arafat says the Palestinian leader is in critical condition, and has been drifting in and out of consciousness. But no official at the Paris military hospital where Arafat is staying have confirmed that condition. Doctors have been conducting tests on Arafat since he arrived on Friday. Palestinian officials have said Arafat is suffering from a blood disorder.

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