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American Morning

George Bush, John Kerry Storming States That Could Swing Election; U.S. Now Leading Assault on Falluja

Aired October 15, 2004 - 07:00   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.


BILL HEMMER, CNN ANCHOR: Good morning. Eighteen days and not one to spare. George Bush and John Kerry storming the states that could swing this election.
The U.S. now leading an assault on Falluja. The military says this has been a, quote, "long time coming."

Americans turned away for flu shots while millions of doses in Canada cannot enter the country.

And from their dad's story in the film "Goodfellas" to life in witness protection, what's it like to grow up Mafia? On this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING, with Bill Hemmer and Soledad O'Brien.

HEMMER: Wow. Is it really Friday?

HEIDI COLLINS, CNN ANCHOR: It sure is.

HEMMER: Thank goodness.

Good morning, everyone. I'm Bill Hemmer. Good to have you with us today.

COLLINS: And I'm Heidi Collins in for Soledad.

Politics starts us off once again this morning, no surprise there. The candidates back on trail with a packed schedule of events. We'll talk to Tad Devine with the Kerry camp and Mary Matalin, an adviser to the president. So we're going to talk about the controversy over John Kerry's comments about the Cheney's daughter and whether or not that will be an issue.

HEMMER: It caught fire yesterday. We'll see if it goes anywhere today.

COLLINS: Also, Jeff Toobin stops by, looking at whether or not lawyers will inherit this year's election. The problem is provisional balloting. There are already lawsuits in five different states. Jeff looks at which side stands to lose the most, essentially provisional balloting, was put in two years ago by the Supreme Court, trying to give people a better shake at getting their vote counted.

HEMMER: Try. COLLINS: Well, we will see if that works out this year. So we'll get to that with Jack.

Right now, we see Jack Cafferty.

Good morning.

JACK CAFFERTY, CNN ANCHOR: Did we mention we're going to be in Chicago next week?

COLLINS: I think we have.

CAFFERTY: I think National Lampoon's vacation with Chevy Chase.

COLLINS: We're taking the family truck and everything.

HEMMER: Big Ben.

CAFFERTY: We just got to find a dog to drag behind the station wagon on the way out there.

We're going to look at what might be a new low in presidential campaigns, discussing the sexuality of candidates' daughters. We'll get the viewers to weigh in on what they think about all that. It's pretty ugly.

HEMMER: Thank you, Jack, for that.

I want to start with Iraq this morning, to Kelly Wallace, the top of the news this hour.

Kelly, good morning to you on a Friday.

KELLY WALLACE, CNN CORRESPONDENT: Good morning, to you. Good morning, everyone.

A number of developments this morning in Baghdad. We begin with an Iraq -- an attack on Iraqi police in Baghdad. Officials say at least one person was killed, nine others are wounded. Meanwhile, U.S. troops are looking into how two suicide bombers were able to get into the secure green zone area. At least five people were killed there yesterday, including three Americans.

And in another development, U.S. troops are launching a major operation in the city of Falluja.

CNN's Brent Sadler has the latest, coming up.

BRENT SADLER, CNN CORRESPONDENT: In the Middle East, tight security this morning on the first day of the Muslim holy month of Ramadan. Hundreds of Israeli police are hoping to prevent an outbreak of violence during today's prayers at the Al Aqsa mosque in Jerusalem. More than 100,000 Muslims are expected to attend.

U.S. and European officials are giving Iran one last chance to abandon its nuclear program. The Group of Eight, as they're called, are meeting at the State Department this morning. They're discussing ways to keep Iran from converting its nuclear energy program into a weapons program. The session is considered a last-ditch effort before the issue is sent to the U.N. Security Council.

And in sports, a pair of home runs saved St. Louis from extra innings on a rainy playoff night. The cardinals Albert Pujols and Scott Rolen hit back-to-back homers in the eight to beat the Astros 6- 4. The Astros are down two games as the series heads to Houston. And of course, game three, Red Sox/Yankees, Fenway Park, tonight.

COLLINS: Who? Which teams?

WALLACE: Yankees? Red Sox?

COLLINS: Oh, yes. That's right.

HEMMER: Can Boston win a game in this series?

WALLACE: Oh yes.

HEMMER: Did I just say that?

WALLACE: Yes, you did!

HEMMER: Thank you, Kelly.

WALLACE: Thanks, Kelly. We'll check back a little bit later on.

Well, as you probably know by now, only 18 days until the election, and the final push is on. Yesterday President Bush campaigned in Las Vegas, and took on John Kerry over domestic issues.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: On issue after issue, from Medicare without choices, to schools with less accountability to higher taxes, he takes the side of more centralized control, and more bureaucracy. There is a word for that attitude -- it's called liberalism.

(END VIDEO CLIP)

COLLINS: John Kerry also campaigned in Las Vegas. Yesterday, before the AARP he took his own jabs at Bush.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Do we want four more years of a president who gives more to those who already have the most and tells the struggling middle class that everything is just fine?

Or do you want a president who is going to honor middle-class values and fight for middle class opportunities in America?

(END VIDEO CLIP) COLLINS: Kerry begins today in Iowa, then heads to Wisconsin, before wrapping up his day late tonight in Dayton, Ohio.

President Bush starts off in Oregon, then on to battleground states in Iowa and Wisconsin before returning to Washington.

HEMMER: We want to check in right now at the top of the hour with both campaigns now. First from the Kerry camp, Tad Divine back with us, senior adviser to the Kerry campaign, in D.C.

Tad, good morning and welcome.

TED DEVINE, KERRY CAMPAIGN SENIOR ADVISER: Good morning, Bill.

HEMMER: You just heard President Bush label John Kerry again with that word, "liberal." Is Senator Kerry embracing that word or running from it?

(LAUGHTER)

DEVINE: Neither. Listen, the label doesn't fit.

John Kerry has got a record. He broke with his own party in the '80s to support a balanced budget. He supported welfare reform in the '90s. He has sensible moderate policies to lead this nation in a new direction.

The president is going to try to stick that label on John Kerry because George Bush has presided over four years of failure: massive job loss, five million Americans have lost their health insurance, gas prices skyrocketing. You can't even get a flu shot in this country.

OK, that's what George Bush's leadership has done to America. And I think that's why the American people are going to go in a new direction.

HEMMER: Kick the spin to the curb here for a second here. What is your honest sense about where...

DEVINE: I don't know, Bill, there's 18 days left.

(LAUGHTER)

HEMMER: Well, we're going to try and cut through it.

What is your honest sense about where this race is headed?

DEVINE: Yes, my honest sense is it's a very close race. I've been saying that for months. I think it will be close down to the wire.

I think the president is in trouble now because if you're the incumbent president and you haven't got a horse race in the 50s in the middle of October, you're in trouble.

HEMMER: OK, I understand your position there. I want to move to this other issue of Mary Cheney. Her sister was on with Paula Zahn last night talking about the issue that was raised at the debate. Listen to how Liz Cheney addressed that.

(BEGIN VIDEO CLIP)

LIZ CHENEY, DAUGHTER OF VICE PRESIDENT CHENEY: ... for Senator Kerry to exploit the child of his opponent to make a political point on his own, for his own political gain.

And I have to say, think that I, like many Americans all across this country today, are wondering what kind of a man would do that.

(END VIDEO CLIP)

HEMMER: Why did Senator Kerry feel obligated to mention Mary Cheney's name in that debate?

DEVINE: Well, because he was asked a question directly and he was trying to make a positive statement about the way strong families deal with the issue of having a gay child.

Bill, I think what's unfortunate is John Edwards in the vice presidential debate said almost the same thing and Dick Cheney turned and thanked him for the statement. And now after the president, George Bush, loses three debates, we see this kind of reaction.

I think it's unfortunate. John Kerry made his intentions very clear.

But we're going to have this for 18 days. When you have a record like George Bush has for the last four years, you're going to have very heated reactions from the other side. They're going to be jumping on every word John Kerry says because they don't want to debate what's happened for the last four years and they have no plan for the next four years.

HEMMER: All right, that was from Liz Cheney last night.

Elizabeth Edwards, in a radio interview, addressed it too yesterday. Listen to her answer.

(BEGIN AUDIO CLIP)

ELIZABETH EDWARDS, WIFE OF SENATOR EDWARDS: It makes me really sad that that's Lynne's response. I think that it indicates a certain degree of shame with respect to her daughter's sexual preferences.

(END AUDIO CLIP)

HEMMER: "A certain degree of shame." What is she saying there, Tad?

DEVINE: Well, I think she's given an honest response to a direct question. Listen, these are very heated times, I think, in this campaign. I think she was responding not only to, you know, that question, but also the assertions about John Kerry not being a good man.

And I think Elizabeth Edwards who knows John Kerry, and knows what a good man he is and a decent man he is, stood up and defended him on that basis.

So, you know, listen, Bill, we've got some real issues in this campaign. We're happy to talk about them. I think the other side would rather talk about things like this because that means they're not talking about job loss, they're not talking about health care loss, they're not talking about why you can't get a flu shot in America today.

HEMMER: Tad, thanks for your time.

Tad Devine with the Kerry campaign.

HEMMER: The other side now, Mary Matalin, senior adviser to the Bush folks.

(BEGIN VIDEOTAPE)

HEMMER: What do you believe is the strategy behind mentioning Mary Cheney's name in that debate?

MARY MATALIN, BUSH-CHENEY CAMPAIGN SENIOR ADVISER: I don't have any idea, Bill. But there clearly was a strategy since Senator Edwards mentioned it at our debate, then Senator Kerry brought it up gratuitously, outrageously, then Mrs. Edwards accused Mrs. Cheney of being ashamed of Mary, and then Senator Kerry put out a statement which his campaign said was distinctly non-apology.

I don't know what their strategy is, but it's gratuitous, outrageous.

HEMMER: You say you have no idea, and I heard your comments yesterday, they were strong -- here on CNN in fact -- but, is it true that you believe you have no idea? I mean, don't you have a working theory at all on this?

MATALIN: Yes, my theory was initially they're trying to rattle the vice president who is unflappable and has respond graciously to the smarmy reference that the Senator did in our thing.

But, I think they're trying to -- I don't know what their motivation is. I just think it's out of place for this campaign.

HEMMER: Here is what Senator Kerry said. He said it yesterday in a statement: "I love my daughters. They love their daughter. I was trying to say something positive about the way strong families deal with this issue."

I know you don't like that statement -- you already are shaking your head in disagreement -- what's wrong with that statement though? MATALIN: Because it doesn't speak to the issue. Bringing up Mary who has made it clear that she's a private person; she's not a poster child for gay issues, as Chrissy Gephardt put herself out there to be.

She disrupted her life to come to help her father re-elect George Bush, and she shouldn't be used as a political football. We don't talk about any of the kids. It's been a long-standing unwritten rule in politics that the kids are off-line in these campaigns.

It had nothing to do with the issue at hand. And it was gratuitous; it was outlandish. I think it was more designed -- a tactic to rattle the candidates in the debates and he should apologize for it. I'm not speaking on behalf of the Cheneys, but he should apologize.

HEMMER: One thing I'm hearing from Democrats, they're saying Republicans are being overly sensitive on this. Is there a sense of that?

MATALIN: You know, do we bring up their kids? I think it's outrageous for Elizabeth Edwards to say that Mrs. Cheney is ashamed of her daughter.

I think it's outrageous for both the candidates in all of the debates to bring up a kid of the vice president. And I think it's even more outrageous to then put out a statement and say it's a non- apology.

Just -- let's move on. There are a lot of big things to debate here.

One of the things that bothers the vice president, in addition to being an angry father, is there is so much at stake in this election, it's such a big choice. We want to talk about the senator's 20-year liberal record. We want to talk about what the president wants to do in the second term. And this is a really ugly distraction. And I think the voters will perceive it as such.

(END VIDEOTAPE)

HEMMER: Mary Matalin, senior adviser for the Bush campaign.

COLLINS: This morning, U.S. forces continue an air and ground operation in Falluja. Their effort, aimed at dismantling the insurgent strong holds in the volatile city.

Brent Sadler is live in Baghdad now with the overnight developments.

Brent, good morning to you.

BRENT SADLER, CNN CORRESPONDENT: Thanks, Heidi. Good morning.

It is amid failed Iraqi negotiations and ultimatums to disarm and expel foreign fighters that Falluja's insurgents find themselves under renewed attack this day, with strikes day and night.

(BEGIN VIDEOTAPE)

SADLER: The U.S. artillery and warplanes blast suspected insurgent targets in Falluja, lighting the night sky with heavy explosions. The push is aimed at breaking a hold over the city by insurgent forces ahead of a possible full-scale ground and air assault.

The new military action follows weeks of sustained American airstrikes, targeting the network of top terror suspect Abu Musab Al Zarqawi. On the ground, it's U.S. troops who are doing most of the fighting, setting up vehicle checkpoints in and around the volatile city. It involves two American infantry battalions, one from the Marines and one from the Army, combined with Iraqi special forces, supported by U.S. strikejets and helicopter gunships, taking the fight to the heart of the rebel stronghold.

The U.S. military says targets hit include terrorist-planning centers, weapons storage sites, safehouses, and illegal checkpoints. It follows an Iraqi interim warning that military action is being prepared to smash Falluja's deeply entrenched insurgency.

Hours earlier, bombers infiltrated Baghdad's top-security green zone, targeting a souvenir market and cafe, killing at least three Americans in two explosions, wounding a score of other people, damaging the fortress-like reputation of the zone.

Some of the casualties flown by helicopter to a U.S. airbase at Balad (ph), north of the capital, victims it seems of smuggled explosives and rigged to detonate, possibly by at least one suicide bomber.

(END VIDEOTAPE)

SADLER: Not since April have U.S. Marines entered Falluja, now trying to establish their presence on the ground in a serious attempt, it seems, to now break the stranglehold of insurgents over that rebel- held area -- Heidi.

COLLINS: Brent Sadler, thanks for the update, again, live from Baghdad this morning.

HEMMER: Heidi, 14 minutes past the hour.

(WEATHER REPORT)

COLLINS: Still to come this morning, children of the Mafia. Their father's life was the basis of a hit movie, but they'll tell us how reality was so much darker than anything you might have seen on the big screen.

HEMMER: Also, some say this election could be decided in the courts yet again. This year's problem though may be a lot bigger than hanging chad. We'll get to that.

COLLINS: And could there be a short-term solution to the flu vaccine shortage? We'll talk to a specialist from NYU.

HEMMER: Also, don't forget, another reminder for you, don't forget, another reminder, AMERICAN MORNING on the move all week next week, starting Monday in Chicago.

Back after this.

(COMMERCIAL BREAK)

COLLINS: With the serious shortage of flu vaccine here in the United States, can Canada give Americans a shot in the arm. President Bush raised the possibility during this week's debate, but his health and human services secretary says any vaccine available in Canada is not licensed for sale in this country.

Joining us to talk about the situation, Dr. Charles Gonzalez, from New York University Medical Center.

Doctor, thanks for being with us today.

DR. CHARLES GONZALEZ, NEW YORK UNIV. MEDICAL CENTER: Thanks for having me.

COLLINS: I want to look at this big picture right off the top. How serious is this shortage of the flu vaccine?

GONZALEZ: It's incredibly serious. We have half as much vaccine as we should have. Normally, the CDC actually tries to have 185 million people covered. We usually only order about 90 million doses. So even that is covered in half. And the folks we usually tried to vaccinate, those over 65, we barely cover 65 percent of those folks. So the new priority system will come into effect, but a lot of folks are going to miss out on this vaccine.

COLLINS: Well, when you hear those numbers -- and we've been talking about this for days now -- is there a short-term solution, or is this prioritization the only thing?

GONZALEZ: That is the short-term solution, OK. You can't make new vaccine. It's just a four-month time lag.

COLLINS: Four months?

GONZALEZ: Yes, it's about that time. So anything that's being around is stockpiled or has been set up. You're not going to make new vaccine for this flu season. You're going to try to contain it, and the shortfall will be covered simply by changing the priority system, which is the eight groups that the CDC has now recommended for priority.

COLLINS: In the introduction to the segment, we talked about Canada and the fact that the vaccine if it were to come in from Canada is not licensed in this country. Does that present a problem. How much would that really change the situation if it were allowed to come across that border? GONZALEZ: It would be another added source. The fact that it's not licensed, it's the same manufacturer. The vaccine that didn't come into the states was from Britain, you know, and It's licensed in the states. I don't think that's a big deal if it's allowed. It's little hypocritical that we can't import certain drugs, but we can sort of...

COLLINS: How much would it change the situation?

GONZALEZ: Not terribly much. The Canadians can't have that much of a stockpile. It's a small country. It might help in certain areas, might actually help the border states to move things around, but not that much more. It's an idea. It's nice, but it's not going to cover everything.

COLLINS: Well, we saw in the debate when Bob Schieffer asked President Bush about the flu vaccine -- actually of course asked both candidates, President Bush said, well, you know, I'm not going to get a flu shot. That's the recommendation from the CDC for healthy Americans, to not receive the vaccine. How rare is it for a president not to get this inoculation?

GONZALEZ: Well, this is contrary to policy. If you remember the Ford administration, you actually had presidents trying to encourage folks to get the vaccine. You have old tape of Ford rolling up his sleeve and having his wife and his kids try to get the vaccine. You know, maybe for national security reasons, it would probably be better to have Dick Cheney get the flu vaccine, and he's actually eligible.

COLLINS: We appreciate your time here this morning so much. Dr. Charles Gonzalez, thanks again -- Bill.

HEMMER: About 21 minutes past the hour now. The pioneer in online movie rentals did a great business last quarter. Question, why is the stock going down? Andy is "Minding Your Business," ahead here in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back. Netflix facing some new competition, affecting its stock apparently too. Andy Serwer is "Minding Your Business." Netflix is the deal where you don't have to leave home, right?

ANDY SERWER, "FORTUNE" MAGAZINE: That's right.

HEMMER: They bring the movies to you?

SERWER: Yep. They send them in the mail.

And lot of stock stories yesterday, bill. Markets taking it on the chin a little bit. Dow down over 100 points. Some weak economic data affecting the market. You can see -- well, we'll talk about it.

Also what's going on is GM, they had some earnings that were weaker than anticipated. And then a big insurance scandal, New York State attorney general Eliot Spitzer going after Marshall McClellan (ph), AIG. Those stocks are way down. AIG is a Dow component.

Let's talk about Netflix, the CEO coming out and saying, yes, business was pretty good, but we're facing new competition from Amazon so we're going to drop prices. That's good for consumers, bad for investors. After hours, the stock is down 35 percent.

Also in tech land, an interesting story, Steve Jobs, CEO of Apple Computer, making his first public appearance yesterday. He was recovering from surgery from pancreatic cancer back in July.

And it's good to see Mr. Jobs back at it.

HEMMER: Rumor has it that he came back to work because Jack got the iPod.

SERWER: Yes, I was just going to go there. And you know, he was just so thrilled that Jack got his iPod.

You been playing with that thing yet?

CAFFERTY: Excuse me?

SERWER: It's a little early to go there, isn't it?

CAFFERTY: I didn't get an iPod; Whoopi Goldberg sent me an iPod.

HEMMER: Gave you one.

CAFFERTY: Gave me one.

SERWER: This happens all the time.

HEMMER: I'm just happy that she took -- we don't have to give you anything for Christmas.

(CROSSTALK)

CAFFERTY: Like you guys were going on a shopping trip for me for Christmas, I mean, I'm sure that was going to happen.

(CROSSTALK)

SERWER: Nevermind, that has to do the bags.

COLLINS: Hey, how about the "Cafferty File" and the Question of the Day?

CAFFERTY: Thank you, Heidi, for getting us away from that. It was getting ugly.

Speaking of ugly, how about this campaign? There is a huge firestorm over John Kerry's reference to Dick Cheney's daughter during Wednesday's final debate, not the first time Mary Cheney's sexuality was brought into the campaign by the Democrats. John Edwards brought it up unilaterally during the vice presidential debate. Dick Cheney called himself a pretty angry father yesterday, saying John Kerry is not a man of strong character, echoing his wife's sentiment, that, quote, "John Kerry is clearly not a good man," unquote. Kerry said the remark was meant to be positive, about families with gay children. But Edwards' wife, Elizabeth, yesterday suggested Lynne Cheney is ashamed of their daughter. Republicans are furious that Mary Cheney was dragged into the political debate.

Here's the question: Is it appropriate for Kerry and Edwards to be discussing the sexuality of Dick Cheney's daughter? Am@CNN.com. And we've got an ton of mail since posting this on the Web site before we even posed the question on the air here.

SERWER: I don't think people care about this.

CAFFERTY: Well, we're getting an awful lot of e-mails.

SERWER: They're saying people don't care.

CAFFERTY: They are?

SERWER: I don't know.

CAFFERTY: Are you reading my e-mail, huh?

SERWER: Yes. Yes. Yes.

CAFFERTY: You stay out of my e-mails.

COLLINS: The truth comes out.

SERWER: Yes, I am.

COLLINS: All right, Jack, we'll check them out in just a little bit.

Still to come, though, this morning, the Friday edition of "90- Second Pop."

Her sister lives the simple live on TV, but Nikki Hilton's marriage proves to be a little more complicated.

Plus, want to know what's happening to Martha Stewart behind bars? The domestic diva may tell all, ahead on AMERICAN MORNING.

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 October 15, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. Eighteen days and not one to spare. George Bush and John Kerry storming the states that could swing this election.
The U.S. now leading an assault on Falluja. The military says this has been a, quote, "long time coming."

Americans turned away for flu shots while millions of doses in Canada cannot enter the country.

And from their dad's story in the film "Goodfellas" to life in witness protection, what's it like to grow up Mafia? On this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING, with Bill Hemmer and Soledad O'Brien.

HEMMER: Wow. Is it really Friday?

HEIDI COLLINS, CNN ANCHOR: It sure is.

HEMMER: Thank goodness.

Good morning, everyone. I'm Bill Hemmer. Good to have you with us today.

COLLINS: And I'm Heidi Collins in for Soledad.

Politics starts us off once again this morning, no surprise there. The candidates back on trail with a packed schedule of events. We'll talk to Tad Devine with the Kerry camp and Mary Matalin, an adviser to the president. So we're going to talk about the controversy over John Kerry's comments about the Cheney's daughter and whether or not that will be an issue.

HEMMER: It caught fire yesterday. We'll see if it goes anywhere today.

COLLINS: Also, Jeff Toobin stops by, looking at whether or not lawyers will inherit this year's election. The problem is provisional balloting. There are already lawsuits in five different states. Jeff looks at which side stands to lose the most, essentially provisional balloting, was put in two years ago by the Supreme Court, trying to give people a better shake at getting their vote counted.

HEMMER: Try. COLLINS: Well, we will see if that works out this year. So we'll get to that with Jack.

Right now, we see Jack Cafferty.

Good morning.

JACK CAFFERTY, CNN ANCHOR: Did we mention we're going to be in Chicago next week?

COLLINS: I think we have.

CAFFERTY: I think National Lampoon's vacation with Chevy Chase.

COLLINS: We're taking the family truck and everything.

HEMMER: Big Ben.

CAFFERTY: We just got to find a dog to drag behind the station wagon on the way out there.

We're going to look at what might be a new low in presidential campaigns, discussing the sexuality of candidates' daughters. We'll get the viewers to weigh in on what they think about all that. It's pretty ugly.

HEMMER: Thank you, Jack, for that.

I want to start with Iraq this morning, to Kelly Wallace, the top of the news this hour.

Kelly, good morning to you on a Friday.

KELLY WALLACE, CNN CORRESPONDENT: Good morning, to you. Good morning, everyone.

A number of developments this morning in Baghdad. We begin with an Iraq -- an attack on Iraqi police in Baghdad. Officials say at least one person was killed, nine others are wounded. Meanwhile, U.S. troops are looking into how two suicide bombers were able to get into the secure green zone area. At least five people were killed there yesterday, including three Americans.

And in another development, U.S. troops are launching a major operation in the city of Falluja.

CNN's Brent Sadler has the latest, coming up.

BRENT SADLER, CNN CORRESPONDENT: In the Middle East, tight security this morning on the first day of the Muslim holy month of Ramadan. Hundreds of Israeli police are hoping to prevent an outbreak of violence during today's prayers at the Al Aqsa mosque in Jerusalem. More than 100,000 Muslims are expected to attend.

U.S. and European officials are giving Iran one last chance to abandon its nuclear program. The Group of Eight, as they're called, are meeting at the State Department this morning. They're discussing ways to keep Iran from converting its nuclear energy program into a weapons program. The session is considered a last-ditch effort before the issue is sent to the U.N. Security Council.

And in sports, a pair of home runs saved St. Louis from extra innings on a rainy playoff night. The cardinals Albert Pujols and Scott Rolen hit back-to-back homers in the eight to beat the Astros 6- 4. The Astros are down two games as the series heads to Houston. And of course, game three, Red Sox/Yankees, Fenway Park, tonight.

COLLINS: Who? Which teams?

WALLACE: Yankees? Red Sox?

COLLINS: Oh, yes. That's right.

HEMMER: Can Boston win a game in this series?

WALLACE: Oh yes.

HEMMER: Did I just say that?

WALLACE: Yes, you did!

HEMMER: Thank you, Kelly.

WALLACE: Thanks, Kelly. We'll check back a little bit later on.

Well, as you probably know by now, only 18 days until the election, and the final push is on. Yesterday President Bush campaigned in Las Vegas, and took on John Kerry over domestic issues.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: On issue after issue, from Medicare without choices, to schools with less accountability to higher taxes, he takes the side of more centralized control, and more bureaucracy. There is a word for that attitude -- it's called liberalism.

(END VIDEO CLIP)

COLLINS: John Kerry also campaigned in Las Vegas. Yesterday, before the AARP he took his own jabs at Bush.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Do we want four more years of a president who gives more to those who already have the most and tells the struggling middle class that everything is just fine?

Or do you want a president who is going to honor middle-class values and fight for middle class opportunities in America?

(END VIDEO CLIP) COLLINS: Kerry begins today in Iowa, then heads to Wisconsin, before wrapping up his day late tonight in Dayton, Ohio.

President Bush starts off in Oregon, then on to battleground states in Iowa and Wisconsin before returning to Washington.

HEMMER: We want to check in right now at the top of the hour with both campaigns now. First from the Kerry camp, Tad Divine back with us, senior adviser to the Kerry campaign, in D.C.

Tad, good morning and welcome.

TED DEVINE, KERRY CAMPAIGN SENIOR ADVISER: Good morning, Bill.

HEMMER: You just heard President Bush label John Kerry again with that word, "liberal." Is Senator Kerry embracing that word or running from it?

(LAUGHTER)

DEVINE: Neither. Listen, the label doesn't fit.

John Kerry has got a record. He broke with his own party in the '80s to support a balanced budget. He supported welfare reform in the '90s. He has sensible moderate policies to lead this nation in a new direction.

The president is going to try to stick that label on John Kerry because George Bush has presided over four years of failure: massive job loss, five million Americans have lost their health insurance, gas prices skyrocketing. You can't even get a flu shot in this country.

OK, that's what George Bush's leadership has done to America. And I think that's why the American people are going to go in a new direction.

HEMMER: Kick the spin to the curb here for a second here. What is your honest sense about where...

DEVINE: I don't know, Bill, there's 18 days left.

(LAUGHTER)

HEMMER: Well, we're going to try and cut through it.

What is your honest sense about where this race is headed?

DEVINE: Yes, my honest sense is it's a very close race. I've been saying that for months. I think it will be close down to the wire.

I think the president is in trouble now because if you're the incumbent president and you haven't got a horse race in the 50s in the middle of October, you're in trouble.

HEMMER: OK, I understand your position there. I want to move to this other issue of Mary Cheney. Her sister was on with Paula Zahn last night talking about the issue that was raised at the debate. Listen to how Liz Cheney addressed that.

(BEGIN VIDEO CLIP)

LIZ CHENEY, DAUGHTER OF VICE PRESIDENT CHENEY: ... for Senator Kerry to exploit the child of his opponent to make a political point on his own, for his own political gain.

And I have to say, think that I, like many Americans all across this country today, are wondering what kind of a man would do that.

(END VIDEO CLIP)

HEMMER: Why did Senator Kerry feel obligated to mention Mary Cheney's name in that debate?

DEVINE: Well, because he was asked a question directly and he was trying to make a positive statement about the way strong families deal with the issue of having a gay child.

Bill, I think what's unfortunate is John Edwards in the vice presidential debate said almost the same thing and Dick Cheney turned and thanked him for the statement. And now after the president, George Bush, loses three debates, we see this kind of reaction.

I think it's unfortunate. John Kerry made his intentions very clear.

But we're going to have this for 18 days. When you have a record like George Bush has for the last four years, you're going to have very heated reactions from the other side. They're going to be jumping on every word John Kerry says because they don't want to debate what's happened for the last four years and they have no plan for the next four years.

HEMMER: All right, that was from Liz Cheney last night.

Elizabeth Edwards, in a radio interview, addressed it too yesterday. Listen to her answer.

(BEGIN AUDIO CLIP)

ELIZABETH EDWARDS, WIFE OF SENATOR EDWARDS: It makes me really sad that that's Lynne's response. I think that it indicates a certain degree of shame with respect to her daughter's sexual preferences.

(END AUDIO CLIP)

HEMMER: "A certain degree of shame." What is she saying there, Tad?

DEVINE: Well, I think she's given an honest response to a direct question. Listen, these are very heated times, I think, in this campaign. I think she was responding not only to, you know, that question, but also the assertions about John Kerry not being a good man.

And I think Elizabeth Edwards who knows John Kerry, and knows what a good man he is and a decent man he is, stood up and defended him on that basis.

So, you know, listen, Bill, we've got some real issues in this campaign. We're happy to talk about them. I think the other side would rather talk about things like this because that means they're not talking about job loss, they're not talking about health care loss, they're not talking about why you can't get a flu shot in America today.

HEMMER: Tad, thanks for your time.

Tad Devine with the Kerry campaign.

HEMMER: The other side now, Mary Matalin, senior adviser to the Bush folks.

(BEGIN VIDEOTAPE)

HEMMER: What do you believe is the strategy behind mentioning Mary Cheney's name in that debate?

MARY MATALIN, BUSH-CHENEY CAMPAIGN SENIOR ADVISER: I don't have any idea, Bill. But there clearly was a strategy since Senator Edwards mentioned it at our debate, then Senator Kerry brought it up gratuitously, outrageously, then Mrs. Edwards accused Mrs. Cheney of being ashamed of Mary, and then Senator Kerry put out a statement which his campaign said was distinctly non-apology.

I don't know what their strategy is, but it's gratuitous, outrageous.

HEMMER: You say you have no idea, and I heard your comments yesterday, they were strong -- here on CNN in fact -- but, is it true that you believe you have no idea? I mean, don't you have a working theory at all on this?

MATALIN: Yes, my theory was initially they're trying to rattle the vice president who is unflappable and has respond graciously to the smarmy reference that the Senator did in our thing.

But, I think they're trying to -- I don't know what their motivation is. I just think it's out of place for this campaign.

HEMMER: Here is what Senator Kerry said. He said it yesterday in a statement: "I love my daughters. They love their daughter. I was trying to say something positive about the way strong families deal with this issue."

I know you don't like that statement -- you already are shaking your head in disagreement -- what's wrong with that statement though? MATALIN: Because it doesn't speak to the issue. Bringing up Mary who has made it clear that she's a private person; she's not a poster child for gay issues, as Chrissy Gephardt put herself out there to be.

She disrupted her life to come to help her father re-elect George Bush, and she shouldn't be used as a political football. We don't talk about any of the kids. It's been a long-standing unwritten rule in politics that the kids are off-line in these campaigns.

It had nothing to do with the issue at hand. And it was gratuitous; it was outlandish. I think it was more designed -- a tactic to rattle the candidates in the debates and he should apologize for it. I'm not speaking on behalf of the Cheneys, but he should apologize.

HEMMER: One thing I'm hearing from Democrats, they're saying Republicans are being overly sensitive on this. Is there a sense of that?

MATALIN: You know, do we bring up their kids? I think it's outrageous for Elizabeth Edwards to say that Mrs. Cheney is ashamed of her daughter.

I think it's outrageous for both the candidates in all of the debates to bring up a kid of the vice president. And I think it's even more outrageous to then put out a statement and say it's a non- apology.

Just -- let's move on. There are a lot of big things to debate here.

One of the things that bothers the vice president, in addition to being an angry father, is there is so much at stake in this election, it's such a big choice. We want to talk about the senator's 20-year liberal record. We want to talk about what the president wants to do in the second term. And this is a really ugly distraction. And I think the voters will perceive it as such.

(END VIDEOTAPE)

HEMMER: Mary Matalin, senior adviser for the Bush campaign.

COLLINS: This morning, U.S. forces continue an air and ground operation in Falluja. Their effort, aimed at dismantling the insurgent strong holds in the volatile city.

Brent Sadler is live in Baghdad now with the overnight developments.

Brent, good morning to you.

BRENT SADLER, CNN CORRESPONDENT: Thanks, Heidi. Good morning.

It is amid failed Iraqi negotiations and ultimatums to disarm and expel foreign fighters that Falluja's insurgents find themselves under renewed attack this day, with strikes day and night.

(BEGIN VIDEOTAPE)

SADLER: The U.S. artillery and warplanes blast suspected insurgent targets in Falluja, lighting the night sky with heavy explosions. The push is aimed at breaking a hold over the city by insurgent forces ahead of a possible full-scale ground and air assault.

The new military action follows weeks of sustained American airstrikes, targeting the network of top terror suspect Abu Musab Al Zarqawi. On the ground, it's U.S. troops who are doing most of the fighting, setting up vehicle checkpoints in and around the volatile city. It involves two American infantry battalions, one from the Marines and one from the Army, combined with Iraqi special forces, supported by U.S. strikejets and helicopter gunships, taking the fight to the heart of the rebel stronghold.

The U.S. military says targets hit include terrorist-planning centers, weapons storage sites, safehouses, and illegal checkpoints. It follows an Iraqi interim warning that military action is being prepared to smash Falluja's deeply entrenched insurgency.

Hours earlier, bombers infiltrated Baghdad's top-security green zone, targeting a souvenir market and cafe, killing at least three Americans in two explosions, wounding a score of other people, damaging the fortress-like reputation of the zone.

Some of the casualties flown by helicopter to a U.S. airbase at Balad (ph), north of the capital, victims it seems of smuggled explosives and rigged to detonate, possibly by at least one suicide bomber.

(END VIDEOTAPE)

SADLER: Not since April have U.S. Marines entered Falluja, now trying to establish their presence on the ground in a serious attempt, it seems, to now break the stranglehold of insurgents over that rebel- held area -- Heidi.

COLLINS: Brent Sadler, thanks for the update, again, live from Baghdad this morning.

HEMMER: Heidi, 14 minutes past the hour.

(WEATHER REPORT)

COLLINS: Still to come this morning, children of the Mafia. Their father's life was the basis of a hit movie, but they'll tell us how reality was so much darker than anything you might have seen on the big screen.

HEMMER: Also, some say this election could be decided in the courts yet again. This year's problem though may be a lot bigger than hanging chad. We'll get to that.

COLLINS: And could there be a short-term solution to the flu vaccine shortage? We'll talk to a specialist from NYU.

HEMMER: Also, don't forget, another reminder for you, don't forget, another reminder, AMERICAN MORNING on the move all week next week, starting Monday in Chicago.

Back after this.

(COMMERCIAL BREAK)

COLLINS: With the serious shortage of flu vaccine here in the United States, can Canada give Americans a shot in the arm. President Bush raised the possibility during this week's debate, but his health and human services secretary says any vaccine available in Canada is not licensed for sale in this country.

Joining us to talk about the situation, Dr. Charles Gonzalez, from New York University Medical Center.

Doctor, thanks for being with us today.

DR. CHARLES GONZALEZ, NEW YORK UNIV. MEDICAL CENTER: Thanks for having me.

COLLINS: I want to look at this big picture right off the top. How serious is this shortage of the flu vaccine?

GONZALEZ: It's incredibly serious. We have half as much vaccine as we should have. Normally, the CDC actually tries to have 185 million people covered. We usually only order about 90 million doses. So even that is covered in half. And the folks we usually tried to vaccinate, those over 65, we barely cover 65 percent of those folks. So the new priority system will come into effect, but a lot of folks are going to miss out on this vaccine.

COLLINS: Well, when you hear those numbers -- and we've been talking about this for days now -- is there a short-term solution, or is this prioritization the only thing?

GONZALEZ: That is the short-term solution, OK. You can't make new vaccine. It's just a four-month time lag.

COLLINS: Four months?

GONZALEZ: Yes, it's about that time. So anything that's being around is stockpiled or has been set up. You're not going to make new vaccine for this flu season. You're going to try to contain it, and the shortfall will be covered simply by changing the priority system, which is the eight groups that the CDC has now recommended for priority.

COLLINS: In the introduction to the segment, we talked about Canada and the fact that the vaccine if it were to come in from Canada is not licensed in this country. Does that present a problem. How much would that really change the situation if it were allowed to come across that border? GONZALEZ: It would be another added source. The fact that it's not licensed, it's the same manufacturer. The vaccine that didn't come into the states was from Britain, you know, and It's licensed in the states. I don't think that's a big deal if it's allowed. It's little hypocritical that we can't import certain drugs, but we can sort of...

COLLINS: How much would it change the situation?

GONZALEZ: Not terribly much. The Canadians can't have that much of a stockpile. It's a small country. It might help in certain areas, might actually help the border states to move things around, but not that much more. It's an idea. It's nice, but it's not going to cover everything.

COLLINS: Well, we saw in the debate when Bob Schieffer asked President Bush about the flu vaccine -- actually of course asked both candidates, President Bush said, well, you know, I'm not going to get a flu shot. That's the recommendation from the CDC for healthy Americans, to not receive the vaccine. How rare is it for a president not to get this inoculation?

GONZALEZ: Well, this is contrary to policy. If you remember the Ford administration, you actually had presidents trying to encourage folks to get the vaccine. You have old tape of Ford rolling up his sleeve and having his wife and his kids try to get the vaccine. You know, maybe for national security reasons, it would probably be better to have Dick Cheney get the flu vaccine, and he's actually eligible.

COLLINS: We appreciate your time here this morning so much. Dr. Charles Gonzalez, thanks again -- Bill.

HEMMER: About 21 minutes past the hour now. The pioneer in online movie rentals did a great business last quarter. Question, why is the stock going down? Andy is "Minding Your Business," ahead here in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back. Netflix facing some new competition, affecting its stock apparently too. Andy Serwer is "Minding Your Business." Netflix is the deal where you don't have to leave home, right?

ANDY SERWER, "FORTUNE" MAGAZINE: That's right.

HEMMER: They bring the movies to you?

SERWER: Yep. They send them in the mail.

And lot of stock stories yesterday, bill. Markets taking it on the chin a little bit. Dow down over 100 points. Some weak economic data affecting the market. You can see -- well, we'll talk about it.

Also what's going on is GM, they had some earnings that were weaker than anticipated. And then a big insurance scandal, New York State attorney general Eliot Spitzer going after Marshall McClellan (ph), AIG. Those stocks are way down. AIG is a Dow component.

Let's talk about Netflix, the CEO coming out and saying, yes, business was pretty good, but we're facing new competition from Amazon so we're going to drop prices. That's good for consumers, bad for investors. After hours, the stock is down 35 percent.

Also in tech land, an interesting story, Steve Jobs, CEO of Apple Computer, making his first public appearance yesterday. He was recovering from surgery from pancreatic cancer back in July.

And it's good to see Mr. Jobs back at it.

HEMMER: Rumor has it that he came back to work because Jack got the iPod.

SERWER: Yes, I was just going to go there. And you know, he was just so thrilled that Jack got his iPod.

You been playing with that thing yet?

CAFFERTY: Excuse me?

SERWER: It's a little early to go there, isn't it?

CAFFERTY: I didn't get an iPod; Whoopi Goldberg sent me an iPod.

HEMMER: Gave you one.

CAFFERTY: Gave me one.

SERWER: This happens all the time.

HEMMER: I'm just happy that she took -- we don't have to give you anything for Christmas.

(CROSSTALK)

CAFFERTY: Like you guys were going on a shopping trip for me for Christmas, I mean, I'm sure that was going to happen.

(CROSSTALK)

SERWER: Nevermind, that has to do the bags.

COLLINS: Hey, how about the "Cafferty File" and the Question of the Day?

CAFFERTY: Thank you, Heidi, for getting us away from that. It was getting ugly.

Speaking of ugly, how about this campaign? There is a huge firestorm over John Kerry's reference to Dick Cheney's daughter during Wednesday's final debate, not the first time Mary Cheney's sexuality was brought into the campaign by the Democrats. John Edwards brought it up unilaterally during the vice presidential debate. Dick Cheney called himself a pretty angry father yesterday, saying John Kerry is not a man of strong character, echoing his wife's sentiment, that, quote, "John Kerry is clearly not a good man," unquote. Kerry said the remark was meant to be positive, about families with gay children. But Edwards' wife, Elizabeth, yesterday suggested Lynne Cheney is ashamed of their daughter. Republicans are furious that Mary Cheney was dragged into the political debate.

Here's the question: Is it appropriate for Kerry and Edwards to be discussing the sexuality of Dick Cheney's daughter? Am@CNN.com. And we've got an ton of mail since posting this on the Web site before we even posed the question on the air here.

SERWER: I don't think people care about this.

CAFFERTY: Well, we're getting an awful lot of e-mails.

SERWER: They're saying people don't care.

CAFFERTY: They are?

SERWER: I don't know.

CAFFERTY: Are you reading my e-mail, huh?

SERWER: Yes. Yes. Yes.

CAFFERTY: You stay out of my e-mails.

COLLINS: The truth comes out.

SERWER: Yes, I am.

COLLINS: All right, Jack, we'll check them out in just a little bit.

Still to come, though, this morning, the Friday edition of "90- Second Pop."

Her sister lives the simple live on TV, but Nikki Hilton's marriage proves to be a little more complicated.

Plus, want to know what's happening to Martha Stewart behind bars? The domestic diva may tell all, ahead on AMERICAN MORNING.

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