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Bargain Shoppers Get Early Post-Holiday Start; Four Killed in Baghdad's Green Zone; Man Wielding Knife Kills 8 High School Students in China

Aired November 26, 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.


TONY HARRIS, CNN CO-ANCHOR: All right. We're going to get started here in Atlanta with a check of what's happening now in the news.
Four people were killed and at least a dozen were injured in an attack in Baghdad's Green Zone. Those killed were employees of Global Risk Strategies, a British security firm. U.S. officials say Wednesday's attack was from either a rocket or mortar.

Retailers are hoping Black Friday is green for them. The day after Thanksgiving is traditionally when merchants look to move out of the red and into the black, turning a profit. As usual, the stores are crowded this morning.

More demonstrations today in the Ukraine. For a fifth straight today opposition protesters mobbed the streets of the nation's capital, Kiev. The Ukraine Supreme Court has blocked the results of the disputed presidential election from being published until the court can review the case on Monday.

And are you thinking about taking a holiday trip to Europe? You may want to change your destination. The dollar dropped to a record low against the euro this morning. That means you'll get less for your money if you're traveling anywhere in Europe. The fall of the dollar is being attributed to U.S. trade and budget deficit concerns.

And good morning once again, everyone. I'm Tony Harris sitting in for Rick Sanchez.

CAROL LIN, CNN CO-ANCHOR: And I'm Carol Lin. Daryn got the holiday off as well.

Retailers this Thanksgiving.

HARRIS: My.

LIN: Yes. Ching-ching this morning. They call it Black Friday, I'm not really quite sure why, because it really is all about green. The feast is fading into a memory. It's bargain hunting, now that has millions of Americans salivating. Shoppers are packing credit cards and gift ideas, maybe a bit more confident this year in the economy. Both The Consumer Federation of America and The Credit Union National Association say the average consumer will shell out more than $700 for this holiday season. That's an increase of about 4.5 percent over last year. Now, for millions of Americans, the Mecca of all merchandise is Wal-Mart. The nation's No. 1 retail retailers had registers ringing at many of its stores yesterday. But this is considered the day that's truly usher in the make-or-break shopping season.

CNN's David Mattingly finds himself at a Wal-Mart in the Atlanta suburb of Alpharetta.

David, I'm sure those shoppers got up early today.

DAVID MATTINGLY, CNN CORRESPONDENT: Yes, they were. That early- morning rush was indeed a rush, and it was very, very early. People started getting in line as early at 4:00 this morning. At 6:00 a.m., the lines were dropped and people were able to file through the aisles, looking for the specially marked sale items they had come here for throughout the store.

Now, there's a certain strategy that people follow. And they were happy to tell me about it today. You get to one store as early as possible, shop as quickly as possible. And then move on to as many other stores as possible to take advantage of their sales. It's a formula that people say has worked very well for them in the past. That's why they've made it somewhat of a holiday tradition.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Every year I get up and come out to shop. This is the best place to shop, best bargains.

MATTINGLY (on camera): Why?

UNIDENTIFIED FEMALE: Wal-Mart just beats everybody's prices.

(END VIDEO CLIP)

MATTINGLY: And prices is what it's all about, as people go from store to store today. You may look behind me and say hey, where are all the crowds right now? It actually looks like a norm at weekend day at Wal-Mart. Well, that early-morning rush you saw, has rushed to other stores. And managers here now are expecting people from other stores to soon be rushing back here later in the afternoon -- Carol.

LIN: I had no idea there was actually a strategy. You know, that you had to work this out like a war plan -- David.

(LAUGHTER)

MATTINGLY: Me either. That's right. In fact, when they showed up today -- in fact, I want to tell you about this. When they showed up today Wal-Mart managers here were greeting them with special maps, so they didn't waste any time in the store, so they go right to exactly where the sale items were. So everything very well organized today.

(LAUGHTER)

LIN: You bet. All right. Thanks very much, David.

HARRIS: All right. The day after Thanksgiving offers the bargains, yet it's the month after Christmas that brings the reality. So how do you keep your enthusiasm from plunging you into debt?

CNN's Julie Vallese joins us from the Pentagon City Fashion Center in Arlington, Virginia.

All right. Julie, save us from ourselves, please.

JULIE VALLESE, CNN CORRESPONDENT: Hey, Tony. How are you? How about if we offer you a little bit of strategy? Strategy to stay out of debt; 130 million Americans are going to go shopping this weekend, all of them with one goal in mind. And that is, to buy the perfect gift. Here's or goal, to help you stay out of debt.

(BEGIN VIDEOTAPE)

VALLESE (voice-over): More Americans plan on saying debit it, rather than charge it, for holiday gift purchases this year. And that's a good way, experts say, to avoid running up holiday debt.

ANNE SCHELLER, CONSUMER CREDIT COUNSELING: Just make sure that you're tracking and recording your spending. So as you, you know, swipe your card, you go ahead and take out your note card along with it and write down how much money you've spent.

VALLESE: And that's important, just because its debit doesn't mean you can't get into debt.

STEVEN BROWBECK, CONSUMER FED. OF AMERICA: The problem is that some debit cards now have taken on the characteristic of credit cards. That is, you can overdraw your balance. And essentially you're taking out a loan that is very expensive.

VALLESE: According to the National Retail Federation, Americans will spend about $220 billion for the holiday season, up about 4.5 percent over last year. Statistics show holiday spending usually takes about five to six months to pay off. By that time, you're sitting by the pool, not thinking at all about sugarplums.

ELLEN TOLLEY, NATIONAL RETAIL FED.: Consumers will do a better job spending and will be able to stretch their money farther, if they shop throughout the holiday season, and take advantage of sales along the way.

VALLESE: To avoid that and other mistakes, experts say, start the season off with a list. And yes, check it twice. Including who you are shopping for, what you plan to buy and how much you'd like to spend. Also know your overall budget and make adjustments on individual purchases along the way.

(END VIDEOTAPE)

VALLESE: Now, about 30 percent of Americans still do plan on using credit. And if you are one who are planning on charging it, keep in mind that research shows people spend more with a credit card than they do with a check, and more with a check than they do with cash -- Tony.

HARRIS: Julie, we have to be realistic. We have to have a budget in mind these are the parameters, and not work outside of the parameters. But it's so difficult, because we want to give to people that we care about and love. It's tough.

VALLESE: Well, sometimes you do just have to throw it out the window and say it is the holiday spirit. If you don't mind paying for a little while, go right ahead. But if you do have to keep your budget in check, make sure you have that list, because it will help you every step of the way -- Tony.

HARRIS: And check it twice. Julie Vallese, good to see you. Thank you.

LIN: All right. Well, how many people actually turn out at the shopping centers really depends on the weather. So let's see how it's going across the country.

(WEATHER REPORT)

LIN: For more on the holiday shopping season, all you have to do is go to our website. And there you're going to find shopping strategies and tips, and interactive gift-giving guide, and even some give-wrapping ideas. That address as always, cnn.com.

HARRIS: News out of Iraq now. Two Marines were killed while on patrol in Falluja. In Baghdad, four people with a British security firm were killed in the city's Green Zone. Officials also say toxins and chemicals were found in a chemical lab in Falluja, along with instructions for producing explosives and anthrax.

For more, we go to CNN's Karl Penhaul in Baghdad.

Hi, Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Tony. In the last few hours, U.S. military sources have told us of that attack on the Green Zone, the area where the U.S. and Iraq administrations are housed here. That attack took place yesterday and four men were killed and 12 others were wounded. We understand the cause was a rocket or mortar attack.

All the dead and wounded were members of a private security firm called Global Risk Strategies, that's based in London. But the dead men were all of Nepalese origin; the company often employs former members of British Gurkha Guards Regiments. That has its with roots in Nepal.

Also yesterday, we're told in Falluja two U.S. Marines were killed. They died when an insurgent lobbed a grenade inside a house that they were clearing. There was a firefight then between insurgents and Marines, and we understand that three insurgents were also killed in that. Also in Falluja, but today a humanitarian aid supplies have been reaching that city. The Iraqi Red Crescent has been there, but officials there say that there is very few civilians there. Those that are there are still pretty frightened and don't dare to come out of their houses en masse. They've only seen a few coming out to receive humanitarian supplies as yet. Those who have come out have asked for ways to leave the city altogether. They say in light of the massive destruction, that they really see no future staying there -- Tony.

HARRIS: Karl, if you would, give us a sense of when we might see civilians allowed back into Falluja to take a look at their homes and what's left of their homes.

PENHAUL: Well, the U.S. military has been telling us is it could be weeks before that happens, because electricity and water supplies have to be reconnected. Also, a lot of the rubble from the destroyed homes and buildings has to be cleared. But in the course of the week, the U.S. and Iraqi interim government has set up what they're calling the Civilian Military Administration in Falluja.

This is the first step in putting back a local council together, and that will then plan out the reconstruction projects. And after that then presumably the civilians will be allowed to filter back into the city -- Tony.

HARRIS: And Karl, the second attack that I can remember recently in the Green Zone, is it becoming more and more clear that it's difficult to say with any kind of certainty, that any area in Baghdad, in Iraq, in Falluja, is secure?

PENHAUL: It certainly is very difficult to say that, Tony. Very difficult to think of a place that is 100 percent secure. It must be said, though, that this latest attack in which these four Nepalese security guard members died was as a result of a rocket or mortar attack. And those really are very common on the Green Zone. On any given day, the Green Zone will receive a number of mortars. Although, as you suggest, there have you been other attacks in which suicide bombers have even penetrated the Green Zone's defenses.

HARRIS: OK. Karl Penhaul for us, live in Baghdad. Karl, thank you.

LIN: While we're thinking about this holiday and we remember last Thanksgiving, President Bush made a surprise visit to the combat troops. This year, it was the Central Command chief who's in charge of all U.S. forces in the Middle East; General John Abizaid visited U.S. troops serving in Afghanistan. And later, the general sat down with newly elected Afghan President Hamid Karzai. Now, there are still about 18,000 troops in Afghanistan.

HARRIS: And on a day when two Marines are killed, one Marine hopes to return to duty.

(BEGIN VIDEO CLIP)

I'm missing a lot of bones, some of it's just gone, a lot of dead bone.

(END VIDEO CLIP)

HARRIS: And coming up later, the remarkable story of survival and this man's determination to fight back.

LIN: Plus, marijuana to stay alive. How a decision Monday could mean life or death for one California woman.

And things take a turn for the worst on what seems like a regular delivery day for one deliveryman.

(COMMERCIAL BREAK)

HARRIS: A terrifying night in a high school dormitory, an attacker wielding a knife breaks in on sleeping students, killing eight of them. It happened in central China.

Our Beijing bureau chief Jaime Florcruz has the story.

(BEGIN VIDEOTAPE)

JAIME FLORCURZ, CNN BEIJING BUREAU CHIEF (on camera): A cold- blooded crime that has shocked central China. A man armed with a knife marched into a high school dormitory early Friday morning, killing eight students and wounding four others. The students apparently were killed while they were sleeping. Chinese police are still searching for the attacker and are investigating the motive.

But meantime, it's already sent off alarm bells in China. China traditionally enjoying a relatively low crime rates, but in recent months, it has shown a series of knife attacks in schools and their daycare centers. Just last July, a man wielding a bomb -- homemade bombs and a knife attacked more than 20 kindergarten students. Although no one was killed, it made big headlines, because just a month before that, a man -- a janitor in a Beijing kindergarten stabbed 15 students and three teachers, killing one child.

Government officials have since ordered tightening of security in schools. They have called for hiring of security guards and upgrading surveillance devices in these schools.

Jaime Florcruz, CNN, Beijing.

(END VIDEOTAPE)

LIN: Wow, that's crazy.

All right. We move on now to the Ukraine, where the Supreme Court in has put the election results on hold. Supporters of opposition presidential candidate Viktor Yushenko poured into the streets for a fifth straight day. Protestors claim the election was rigged to give Kremlin-backed candidate, Viktor Yanukovich the presidency. European Union Foreign Policy Chief Javier Solano is in the Ukraine for urgent talks on the election crisis.

Now, the World Health Organization warns a global influenza outbreak is inevitable. The group says the epidemic will likely be triggered by the bird flu virus that hit Asia earlier this year. The WHO is calling for a global plan to deal with the likely outbreak. Governments in Asia have already destroyed millions of poultry in an attempt to stop the spread of the virus.

HARRIS: Wow.

LIN: Take care of yourselves out there.

HARRIS: Absolutely.

All right. Having problems finding a gift that's good enough for that special child on your Christmas list? Still to come, how about a $50,000 Ferrari, or a $200 Barbie?

LIN: Yes, dream on.

HARRIS: Sure.

LIN: And hang on tight to your Spongebob Squarepants. We're going to tell you why, a hot commodity. The story is straight ahead.

(COMMERCIAL BREAK)

LIN: And pretty funny picture down there on Wall Street. One day after making its debut in the Macy's Thanksgiving Day Parade, Spongebob Squarepants is again making news in New York. What a loveable guy. And now a movie star, he rang the opening bell at the New York Stock Exchange this morning.

Flapping those hands. But you know what? It's good we had a public sighting because we were kind of worried there's a Spongebob crime scene right there at that fast-food restaurant. You see him now, but oversized Spongebob Squarepants balloons have been swiped from Burger King Restaurants in at least four states. Wisconsin joins Michigan, Minnesota and Utah, all reporting Spongebob nappings.

In Minnesota, a ransom note left by Spongebob nemesis, Plankton, demands 10 crabby patties, and warns Patrick is next. We'll keep you updated. No word on whether the FBI is planning on taking on this case.

HARRIS: Department of Homeland Security involved in this? What are they going to do with those things?

LIN: Act of terror, Spongebob disappears.

HARRIS: And if you're going for those holiday bargains, there's one place you won't find them. FAO Schwartz, the ritzy New York City toy store is coming back from bankruptcy.

But as our Mary Snow reports, its prices still aren't child's play.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): There was fanfare and fans, and the way the lines looked, you'd think something was being given out for free. But you'd be hard-pressed to find anything for free, or cheap for that matter at FAO Schwartz. One of its attractions, a gas-powered child-sized Ferrari that can go up to 15 miles per hour. The price tag, $50,000.

UNIDENTIFIED MALE: I don't think this year. Maybe next year.

SNOW: Maybe he didn't buy one, but FAO Schwartz says Colin Farrell did. The story toy store reopened after filing for bankruptcy last year. Touted as the oldest toy store in America, FAO Schwartz succumbed to the fierce competition sparked by the likes of Wal-Mart. It's now back with a new look.

And it's not worried about capturing crowds looking for cheap. Like this $150,000 dancing piano, similar to the one Tom Hanks made famous in the movie "Big." Or $30000,000 for this motion simulator. It cost five bucks just to try it at the store. In a world where discount stores are king, you won't find any bargains here, but for some that's the attraction.

UNIDENTIFIED FEMALE: I hate Wal-Mart.

UNIDENTIFIED FEMALE: It's not really so much over the top, as it is that you just walk through the store and see so many amazing things.

UNIDENTIFIED FEMALE: We create your new best friend and make her look just like you.

SNOW: Madam Alexander dolls for $40 a pop to look like you.

UNIDENTIFIED FEMALE: There's some really cool toys.

SNOW: And a cool $135 will get you not just any Barbie, but one decked out in designer duds from Versace and Kate Spade.

UNIDENTIFIED FEMALE: I think it's a neat store with all the Barbies around.

SNOW: But if you're interested in babies, not Barbies, there's a nursery complete with nurses for these newborn dolls for 80 bucks. Snacks cost a pretty penny, too. This California family splurge splurged on a $100 ice cream sundae, complete mining hats, a hammer and pick to eat them.

UNIDENTIFIED FEMALE: It's $100, but worth every penny.

SNOW (on camera): And if you don't know what to get that special, little someone and a $3,600 stuffed polar bear won't do, you can always go the gift certificate route. They have them for $50,000. If you really want to splurge, they have them for 100 grand. Mary Snow, CNN, New York.

(END VIDEOTAPE)

(LAUGHTER)

LIN: You see, I think that's great. Because you can take your kids, walk through that store and say too expensive, honey. Too expensive honey.

HARRIS: Absolutely. I think we know why they were in bankruptcy.

(LAUGHTER)

LIN: They're getting it back now. There are people out there spending it.

HARRIS: You're right.

LIN: Also, millions of people got up at the crack of dawn to get the best deals this morning. Good shoppers.

And others got up early too. However, they didn't leave the house. How they shopped and saved money while still in their PJs.

HARRIS: Real nice.

ALLAN CHERNOFF, CNN-FN CORRESPONDENT: Shoppers are out in force in midtown Manhattan. The holiday shopping season officially under way. I'm Allan Chernoff. I'll have that story for you in a minute.

(COMMERCIAL BREAK)

HARRIS: And coming up on the half hour, good morning, everyone. I'm Tony Harris.

LIN: And I'm Carol Lin. Here's what's happening right now in the news.

We do have another deadly attack to report from Iraq. Coalition officials say four employees of a British security firm were killed, and more than a dozen others wounded in a mortar or rocket strike on their compound. The slain employees of Global Risk Strategies are described as being of Nepalese origin. The compound is located in Baghdad's Green Zone, which also houses U.S. and Iraqi leadership.

And later today, Ukraine's outgoing president will meet with the opposition candidate, who's been declared the loser in the bitterly, disputed presidential election. European envoys will also take part in that meeting, as will as the Russian-backed president, who's been declared the victor. The U.S. has cited strong evidence of fraud. And today Moscow said it has -- well, it has some concern that the West was trying to meddle.

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Aired November 26, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN CO-ANCHOR: All right. We're going to get started here in Atlanta with a check of what's happening now in the news.
Four people were killed and at least a dozen were injured in an attack in Baghdad's Green Zone. Those killed were employees of Global Risk Strategies, a British security firm. U.S. officials say Wednesday's attack was from either a rocket or mortar.

Retailers are hoping Black Friday is green for them. The day after Thanksgiving is traditionally when merchants look to move out of the red and into the black, turning a profit. As usual, the stores are crowded this morning.

More demonstrations today in the Ukraine. For a fifth straight today opposition protesters mobbed the streets of the nation's capital, Kiev. The Ukraine Supreme Court has blocked the results of the disputed presidential election from being published until the court can review the case on Monday.

And are you thinking about taking a holiday trip to Europe? You may want to change your destination. The dollar dropped to a record low against the euro this morning. That means you'll get less for your money if you're traveling anywhere in Europe. The fall of the dollar is being attributed to U.S. trade and budget deficit concerns.

And good morning once again, everyone. I'm Tony Harris sitting in for Rick Sanchez.

CAROL LIN, CNN CO-ANCHOR: And I'm Carol Lin. Daryn got the holiday off as well.

Retailers this Thanksgiving.

HARRIS: My.

LIN: Yes. Ching-ching this morning. They call it Black Friday, I'm not really quite sure why, because it really is all about green. The feast is fading into a memory. It's bargain hunting, now that has millions of Americans salivating. Shoppers are packing credit cards and gift ideas, maybe a bit more confident this year in the economy. Both The Consumer Federation of America and The Credit Union National Association say the average consumer will shell out more than $700 for this holiday season. That's an increase of about 4.5 percent over last year. Now, for millions of Americans, the Mecca of all merchandise is Wal-Mart. The nation's No. 1 retail retailers had registers ringing at many of its stores yesterday. But this is considered the day that's truly usher in the make-or-break shopping season.

CNN's David Mattingly finds himself at a Wal-Mart in the Atlanta suburb of Alpharetta.

David, I'm sure those shoppers got up early today.

DAVID MATTINGLY, CNN CORRESPONDENT: Yes, they were. That early- morning rush was indeed a rush, and it was very, very early. People started getting in line as early at 4:00 this morning. At 6:00 a.m., the lines were dropped and people were able to file through the aisles, looking for the specially marked sale items they had come here for throughout the store.

Now, there's a certain strategy that people follow. And they were happy to tell me about it today. You get to one store as early as possible, shop as quickly as possible. And then move on to as many other stores as possible to take advantage of their sales. It's a formula that people say has worked very well for them in the past. That's why they've made it somewhat of a holiday tradition.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Every year I get up and come out to shop. This is the best place to shop, best bargains.

MATTINGLY (on camera): Why?

UNIDENTIFIED FEMALE: Wal-Mart just beats everybody's prices.

(END VIDEO CLIP)

MATTINGLY: And prices is what it's all about, as people go from store to store today. You may look behind me and say hey, where are all the crowds right now? It actually looks like a norm at weekend day at Wal-Mart. Well, that early-morning rush you saw, has rushed to other stores. And managers here now are expecting people from other stores to soon be rushing back here later in the afternoon -- Carol.

LIN: I had no idea there was actually a strategy. You know, that you had to work this out like a war plan -- David.

(LAUGHTER)

MATTINGLY: Me either. That's right. In fact, when they showed up today -- in fact, I want to tell you about this. When they showed up today Wal-Mart managers here were greeting them with special maps, so they didn't waste any time in the store, so they go right to exactly where the sale items were. So everything very well organized today.

(LAUGHTER)

LIN: You bet. All right. Thanks very much, David.

HARRIS: All right. The day after Thanksgiving offers the bargains, yet it's the month after Christmas that brings the reality. So how do you keep your enthusiasm from plunging you into debt?

CNN's Julie Vallese joins us from the Pentagon City Fashion Center in Arlington, Virginia.

All right. Julie, save us from ourselves, please.

JULIE VALLESE, CNN CORRESPONDENT: Hey, Tony. How are you? How about if we offer you a little bit of strategy? Strategy to stay out of debt; 130 million Americans are going to go shopping this weekend, all of them with one goal in mind. And that is, to buy the perfect gift. Here's or goal, to help you stay out of debt.

(BEGIN VIDEOTAPE)

VALLESE (voice-over): More Americans plan on saying debit it, rather than charge it, for holiday gift purchases this year. And that's a good way, experts say, to avoid running up holiday debt.

ANNE SCHELLER, CONSUMER CREDIT COUNSELING: Just make sure that you're tracking and recording your spending. So as you, you know, swipe your card, you go ahead and take out your note card along with it and write down how much money you've spent.

VALLESE: And that's important, just because its debit doesn't mean you can't get into debt.

STEVEN BROWBECK, CONSUMER FED. OF AMERICA: The problem is that some debit cards now have taken on the characteristic of credit cards. That is, you can overdraw your balance. And essentially you're taking out a loan that is very expensive.

VALLESE: According to the National Retail Federation, Americans will spend about $220 billion for the holiday season, up about 4.5 percent over last year. Statistics show holiday spending usually takes about five to six months to pay off. By that time, you're sitting by the pool, not thinking at all about sugarplums.

ELLEN TOLLEY, NATIONAL RETAIL FED.: Consumers will do a better job spending and will be able to stretch their money farther, if they shop throughout the holiday season, and take advantage of sales along the way.

VALLESE: To avoid that and other mistakes, experts say, start the season off with a list. And yes, check it twice. Including who you are shopping for, what you plan to buy and how much you'd like to spend. Also know your overall budget and make adjustments on individual purchases along the way.

(END VIDEOTAPE)

VALLESE: Now, about 30 percent of Americans still do plan on using credit. And if you are one who are planning on charging it, keep in mind that research shows people spend more with a credit card than they do with a check, and more with a check than they do with cash -- Tony.

HARRIS: Julie, we have to be realistic. We have to have a budget in mind these are the parameters, and not work outside of the parameters. But it's so difficult, because we want to give to people that we care about and love. It's tough.

VALLESE: Well, sometimes you do just have to throw it out the window and say it is the holiday spirit. If you don't mind paying for a little while, go right ahead. But if you do have to keep your budget in check, make sure you have that list, because it will help you every step of the way -- Tony.

HARRIS: And check it twice. Julie Vallese, good to see you. Thank you.

LIN: All right. Well, how many people actually turn out at the shopping centers really depends on the weather. So let's see how it's going across the country.

(WEATHER REPORT)

LIN: For more on the holiday shopping season, all you have to do is go to our website. And there you're going to find shopping strategies and tips, and interactive gift-giving guide, and even some give-wrapping ideas. That address as always, cnn.com.

HARRIS: News out of Iraq now. Two Marines were killed while on patrol in Falluja. In Baghdad, four people with a British security firm were killed in the city's Green Zone. Officials also say toxins and chemicals were found in a chemical lab in Falluja, along with instructions for producing explosives and anthrax.

For more, we go to CNN's Karl Penhaul in Baghdad.

Hi, Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Tony. In the last few hours, U.S. military sources have told us of that attack on the Green Zone, the area where the U.S. and Iraq administrations are housed here. That attack took place yesterday and four men were killed and 12 others were wounded. We understand the cause was a rocket or mortar attack.

All the dead and wounded were members of a private security firm called Global Risk Strategies, that's based in London. But the dead men were all of Nepalese origin; the company often employs former members of British Gurkha Guards Regiments. That has its with roots in Nepal.

Also yesterday, we're told in Falluja two U.S. Marines were killed. They died when an insurgent lobbed a grenade inside a house that they were clearing. There was a firefight then between insurgents and Marines, and we understand that three insurgents were also killed in that. Also in Falluja, but today a humanitarian aid supplies have been reaching that city. The Iraqi Red Crescent has been there, but officials there say that there is very few civilians there. Those that are there are still pretty frightened and don't dare to come out of their houses en masse. They've only seen a few coming out to receive humanitarian supplies as yet. Those who have come out have asked for ways to leave the city altogether. They say in light of the massive destruction, that they really see no future staying there -- Tony.

HARRIS: Karl, if you would, give us a sense of when we might see civilians allowed back into Falluja to take a look at their homes and what's left of their homes.

PENHAUL: Well, the U.S. military has been telling us is it could be weeks before that happens, because electricity and water supplies have to be reconnected. Also, a lot of the rubble from the destroyed homes and buildings has to be cleared. But in the course of the week, the U.S. and Iraqi interim government has set up what they're calling the Civilian Military Administration in Falluja.

This is the first step in putting back a local council together, and that will then plan out the reconstruction projects. And after that then presumably the civilians will be allowed to filter back into the city -- Tony.

HARRIS: And Karl, the second attack that I can remember recently in the Green Zone, is it becoming more and more clear that it's difficult to say with any kind of certainty, that any area in Baghdad, in Iraq, in Falluja, is secure?

PENHAUL: It certainly is very difficult to say that, Tony. Very difficult to think of a place that is 100 percent secure. It must be said, though, that this latest attack in which these four Nepalese security guard members died was as a result of a rocket or mortar attack. And those really are very common on the Green Zone. On any given day, the Green Zone will receive a number of mortars. Although, as you suggest, there have you been other attacks in which suicide bombers have even penetrated the Green Zone's defenses.

HARRIS: OK. Karl Penhaul for us, live in Baghdad. Karl, thank you.

LIN: While we're thinking about this holiday and we remember last Thanksgiving, President Bush made a surprise visit to the combat troops. This year, it was the Central Command chief who's in charge of all U.S. forces in the Middle East; General John Abizaid visited U.S. troops serving in Afghanistan. And later, the general sat down with newly elected Afghan President Hamid Karzai. Now, there are still about 18,000 troops in Afghanistan.

HARRIS: And on a day when two Marines are killed, one Marine hopes to return to duty.

(BEGIN VIDEO CLIP)

I'm missing a lot of bones, some of it's just gone, a lot of dead bone.

(END VIDEO CLIP)

HARRIS: And coming up later, the remarkable story of survival and this man's determination to fight back.

LIN: Plus, marijuana to stay alive. How a decision Monday could mean life or death for one California woman.

And things take a turn for the worst on what seems like a regular delivery day for one deliveryman.

(COMMERCIAL BREAK)

HARRIS: A terrifying night in a high school dormitory, an attacker wielding a knife breaks in on sleeping students, killing eight of them. It happened in central China.

Our Beijing bureau chief Jaime Florcruz has the story.

(BEGIN VIDEOTAPE)

JAIME FLORCURZ, CNN BEIJING BUREAU CHIEF (on camera): A cold- blooded crime that has shocked central China. A man armed with a knife marched into a high school dormitory early Friday morning, killing eight students and wounding four others. The students apparently were killed while they were sleeping. Chinese police are still searching for the attacker and are investigating the motive.

But meantime, it's already sent off alarm bells in China. China traditionally enjoying a relatively low crime rates, but in recent months, it has shown a series of knife attacks in schools and their daycare centers. Just last July, a man wielding a bomb -- homemade bombs and a knife attacked more than 20 kindergarten students. Although no one was killed, it made big headlines, because just a month before that, a man -- a janitor in a Beijing kindergarten stabbed 15 students and three teachers, killing one child.

Government officials have since ordered tightening of security in schools. They have called for hiring of security guards and upgrading surveillance devices in these schools.

Jaime Florcruz, CNN, Beijing.

(END VIDEOTAPE)

LIN: Wow, that's crazy.

All right. We move on now to the Ukraine, where the Supreme Court in has put the election results on hold. Supporters of opposition presidential candidate Viktor Yushenko poured into the streets for a fifth straight day. Protestors claim the election was rigged to give Kremlin-backed candidate, Viktor Yanukovich the presidency. European Union Foreign Policy Chief Javier Solano is in the Ukraine for urgent talks on the election crisis.

Now, the World Health Organization warns a global influenza outbreak is inevitable. The group says the epidemic will likely be triggered by the bird flu virus that hit Asia earlier this year. The WHO is calling for a global plan to deal with the likely outbreak. Governments in Asia have already destroyed millions of poultry in an attempt to stop the spread of the virus.

HARRIS: Wow.

LIN: Take care of yourselves out there.

HARRIS: Absolutely.

All right. Having problems finding a gift that's good enough for that special child on your Christmas list? Still to come, how about a $50,000 Ferrari, or a $200 Barbie?

LIN: Yes, dream on.

HARRIS: Sure.

LIN: And hang on tight to your Spongebob Squarepants. We're going to tell you why, a hot commodity. The story is straight ahead.

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LIN: And pretty funny picture down there on Wall Street. One day after making its debut in the Macy's Thanksgiving Day Parade, Spongebob Squarepants is again making news in New York. What a loveable guy. And now a movie star, he rang the opening bell at the New York Stock Exchange this morning.

Flapping those hands. But you know what? It's good we had a public sighting because we were kind of worried there's a Spongebob crime scene right there at that fast-food restaurant. You see him now, but oversized Spongebob Squarepants balloons have been swiped from Burger King Restaurants in at least four states. Wisconsin joins Michigan, Minnesota and Utah, all reporting Spongebob nappings.

In Minnesota, a ransom note left by Spongebob nemesis, Plankton, demands 10 crabby patties, and warns Patrick is next. We'll keep you updated. No word on whether the FBI is planning on taking on this case.

HARRIS: Department of Homeland Security involved in this? What are they going to do with those things?

LIN: Act of terror, Spongebob disappears.

HARRIS: And if you're going for those holiday bargains, there's one place you won't find them. FAO Schwartz, the ritzy New York City toy store is coming back from bankruptcy.

But as our Mary Snow reports, its prices still aren't child's play.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): There was fanfare and fans, and the way the lines looked, you'd think something was being given out for free. But you'd be hard-pressed to find anything for free, or cheap for that matter at FAO Schwartz. One of its attractions, a gas-powered child-sized Ferrari that can go up to 15 miles per hour. The price tag, $50,000.

UNIDENTIFIED MALE: I don't think this year. Maybe next year.

SNOW: Maybe he didn't buy one, but FAO Schwartz says Colin Farrell did. The story toy store reopened after filing for bankruptcy last year. Touted as the oldest toy store in America, FAO Schwartz succumbed to the fierce competition sparked by the likes of Wal-Mart. It's now back with a new look.

And it's not worried about capturing crowds looking for cheap. Like this $150,000 dancing piano, similar to the one Tom Hanks made famous in the movie "Big." Or $30000,000 for this motion simulator. It cost five bucks just to try it at the store. In a world where discount stores are king, you won't find any bargains here, but for some that's the attraction.

UNIDENTIFIED FEMALE: I hate Wal-Mart.

UNIDENTIFIED FEMALE: It's not really so much over the top, as it is that you just walk through the store and see so many amazing things.

UNIDENTIFIED FEMALE: We create your new best friend and make her look just like you.

SNOW: Madam Alexander dolls for $40 a pop to look like you.

UNIDENTIFIED FEMALE: There's some really cool toys.

SNOW: And a cool $135 will get you not just any Barbie, but one decked out in designer duds from Versace and Kate Spade.

UNIDENTIFIED FEMALE: I think it's a neat store with all the Barbies around.

SNOW: But if you're interested in babies, not Barbies, there's a nursery complete with nurses for these newborn dolls for 80 bucks. Snacks cost a pretty penny, too. This California family splurge splurged on a $100 ice cream sundae, complete mining hats, a hammer and pick to eat them.

UNIDENTIFIED FEMALE: It's $100, but worth every penny.

SNOW (on camera): And if you don't know what to get that special, little someone and a $3,600 stuffed polar bear won't do, you can always go the gift certificate route. They have them for $50,000. If you really want to splurge, they have them for 100 grand. Mary Snow, CNN, New York.

(END VIDEOTAPE)

(LAUGHTER)

LIN: You see, I think that's great. Because you can take your kids, walk through that store and say too expensive, honey. Too expensive honey.

HARRIS: Absolutely. I think we know why they were in bankruptcy.

(LAUGHTER)

LIN: They're getting it back now. There are people out there spending it.

HARRIS: You're right.

LIN: Also, millions of people got up at the crack of dawn to get the best deals this morning. Good shoppers.

And others got up early too. However, they didn't leave the house. How they shopped and saved money while still in their PJs.

HARRIS: Real nice.

ALLAN CHERNOFF, CNN-FN CORRESPONDENT: Shoppers are out in force in midtown Manhattan. The holiday shopping season officially under way. I'm Allan Chernoff. I'll have that story for you in a minute.

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HARRIS: And coming up on the half hour, good morning, everyone. I'm Tony Harris.

LIN: And I'm Carol Lin. Here's what's happening right now in the news.

We do have another deadly attack to report from Iraq. Coalition officials say four employees of a British security firm were killed, and more than a dozen others wounded in a mortar or rocket strike on their compound. The slain employees of Global Risk Strategies are described as being of Nepalese origin. The compound is located in Baghdad's Green Zone, which also houses U.S. and Iraqi leadership.

And later today, Ukraine's outgoing president will meet with the opposition candidate, who's been declared the loser in the bitterly, disputed presidential election. European envoys will also take part in that meeting, as will as the Russian-backed president, who's been declared the victor. The U.S. has cited strong evidence of fraud. And today Moscow said it has -- well, it has some concern that the West was trying to meddle.

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