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American Morning

Fallujah Offensive; Interview With Chief Palestinian Spokesman Saeb Erekat

Aired November 05, 2004 - 07:30   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: Sunrise in Manhattan. It's 7:30 here in New York. Welcome back, everybody. Soledad is out today. Pleased to have Kelly Wallace with us today.
KELLY WALLACE, CNN ANCHOR: Pleased to be here.

HEMMER: You have been busy body, haven't you?

WALLACE: Oh, we all have been.

HEMMER: What was it like up in Boston come Wednesday when the news came in for the Kerry folks?

WALLACE: It is amazing how quickly everyone just disappeared. I mean, you could feel it on Tuesday night about 10:00 in the area of the file center where all of the reporters were, Joe Lockhart and other aides walking around. You could see it on their faces. Monday night was long night for everybody. But in the morning it was just sort of pretty amazing. All of a sudden everyone just leaves.

HEMMER: On Tuesday...

WALLACE: Supporters, reporters, everyone was just gone.

HEMMER: Did they get the same exit polling that everybody else was getting, which gave them hope and optimism and confidence that it was going to be a good night?

WALLACE: They sure did. And that -- they were incredibly confident going into Tuesday. Then they saw exit polling, which had Senator Kerry up by a couple of points in most of the key battlegrounds. So when Senator Kerry landed in Boston, there was a real sense that they were going to win this over the hours. They felt like they were going to win it. And then it turned. So I think it made it doubly difficult for them.

HEMMER: I'm going to pick your brain this morning, OK?

WALLACE: Oh, we can't stop talking about it.

HEMMER: Coming up in a couple of minutes, too, back to the Pentagon this morning, Barbara Starr, new information. We'll find out what she is hearing about plans for a major assault on Fallujah. What else would U.S. forces do and face if they try and take the city now said to be teeming with insurgents? So we'll get to Barbara in a moment on that. WALLACE: Also, as Yasser Arafat clings to life, burial plans and the makeup of the Palestinian leadership are some of the immediate issues that have to be worked out. We will talk to the Palestinian's chief negotiator, Saeb Erekat, about those questions and about Arafat's condition coming up.

HEMMER: They are hanging on pins and needles today.

WALLACE: Absolutely. A lot of implications there.

HEMMER: Yes, correct.

Back to Carol Costello at the CNN center watching the other news.

Good to have you this morning. Carol -- good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning, Bill. Good morning, Kelly. Good morning to all of you.

"Now in the News."

In just about three hours, the jury in the Scott Peterson trial is set to resume deliberations. A judge in the double-murder case has ruled against allowing live TV coverage of the verdict out of concern for the families on both sides. It's still not clear when that verdict will be reached.

President Bush is now relaxing at Camp David after a grueling campaign. Before heading there, the president held a news conference yesterday, laying out plans for his second term. President Bush said he's earned capital during the campaign, and he intends to spend it. He promised to work with Democrats to carry out his agenda, which includes fighting the war in Iraq, revamping social security and overhauling the tax system.

The U.N. Security Council is preparing to meet next week in Kenya to discuss the grave situation in Sudan. The U.N. envoy to Sudan is warning things there could spiral into anarchy, that the Security Council must be ready to offer concessions as well as threaten force to influence peace talks in the region.

And the world's largest retailer is giving a 2,000-year-old city a run for its money. Hundreds of shoppers flooded a Wal-Mart north of Mexico City. The store's opening comes after months of protests. That's because it's less than a mile from the ruins of the ancient city of Teotihuacan. I apologize so much for my terrible Spanish -- Bill.

HEMMER: For (UNINTELLIGIBLE).

COSTELLO: I know.

HEMMER: Well done, Carol. Talk to you later.

U.S. and Iraqi forces appear to be making these final preparations now for this major offensive on the town of Fallujah west of Baghdad. Barbara Starr is at the Pentagon, watching this story very closely from there.

What do you have? Barbara -- good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Bill.

Well, U.S. and Iraqi forces appear ready to launch that all-out assault in Fallujah, if and when the order comes.

(BEGIN VIDEOTAPE)

STARR (voice over): As U.S. troops prepare for a ground attack, Marines know that once inside Fallujah, snipers may lie in wait, booby traps may already be laid.

UNIDENTIFIED MALE: This is antiaircraft ammunition. These are some of the copper wires they use for the side where road bombs are, as people call them, we call them IEDs.

STARR: Intelligence indicates thousands of insurgents remain in the Fallujah area. Troops are now searching cars for fighters trying to escape.

Defeating the insurgency in Fallujah is now seen as a vital step towards controlling the country.

MAJ. JIM WEST, MARINE INTELLIGENCE OFFICER: It is not, though, the panacea. Just by taking it out does not mean the rest of the insurgency will fall. But it will be a big chip in that block out there.

STARR: It is called the tipping point, the point at which insurgents believe they have no hope of winning. That is the fundamental challenge across Iraq.

One senior U.S. military officer told CNN, we may be at an operational stalemate. We are nowhere near the tipping point.

Insurgents number between 8,000 to 12,000 strong, conducting about 80 attacks a day nationwide. But intelligence experts say they still don't have a good handle on what is motivating many.

One assessment: Sunni and Baath loyalists, trying to regain power, won't stop their fight, raising the prospect of violence for years to come. But on this day, U.S. troops near Fallujah are focused on their mission.

UNIDENTIFIED MALE: Do you know what you're writing?

UNIDENTIFIED MALE: Stay away or we'll kill you in Arabic.

(END VIDEOTAPE)

STARR: And what about Abu Musab al-Zarqawi, that terrorist leader who has claimed responsibility for so many violent attacks? Well, sources say he may no longer even be in Fallujah. They don't really know where he is. If they do find him there, it will be a combat bonus -- Bill.

HEMMER: Barbara, back to this quote, "operational stalemate." What does that mean? How do we interpret that?

STARR: Operational stalemate is something that military officials are beginning to refer to in Iraq, because what they're not able to do so far is get to that tipping point, break the insurgency, make it appear to the insurgency that they have no hope of winning, so that they need to give up, if you will. There is no indication that the insurgents are about to do that. The fact is, attacks are continuing, and they are continuing at a higher and higher level across the country. That is what has the coalition deeply worried -- Bill.

HEMMER: All right, Barbara, thanks. Barbara Starr at the Pentagon this morning -- Kelly.

WALLACE: Thanks, Bill.

The Monday morning quarterbacking from both sides of the aisle will likely continue for some time over the results of this week's presidential election. Republican Senator John McCain stopped by "The Tonight Show With Jay Leno" with his thoughts on the outcome.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: The president got, I think, a mandate, a 3.5 million vote plurality, the first time a president has gotten over 50 percent of the vote in 16 years. And is it an overwhelming mandate? No. But it certainly is a strong signal of approval. And again, the issue on the war on terror. I think Osama bin Laden's tape focused our attention again on this incarnate -- evil incarnate that threatens everything we stand for and believe in.

(END VIDEO CLIP)

WALLACE: And as you know, probably, Senator McCain is among the many likely candidates rumored to be in the running for the 2008 presidential race.

HEMMER: We talked about that tape yesterday with "TIME" magazine. They make it a pivotal point, they say, in this election. I just wonder how many people already had their mind made up. It was Friday afternoon when that tape came out.

WALLACE: The sense is, I sensed this from both sides, that people had already made their decision, that it was not likely to have as big an impact. And that could have potentially, at least over the weekend the polling, could have helped Senator Kerry. But clearly that polling was wrong.

HEMMER: Welcome to inside politics.

(WEATHER REPORT)

HEMMER: In the meantime, an all-pro in the NFL, controversial in his own right, huh, used to catching passes, pitching his own line of peanuts and salsa. In a moment here, Andy has got that story.

WALLACE: Plus, Pixar flexes its muscle with "The Incredibles." But is it another winner for the studio? The "90-Second Poppers" chime in. That's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

WALLACE: And time now to check in with Toure and the "Question of the Day." I love...

TOURE, CNN POPULAR CULTURE CORRESPONDENT: You love to rhyme that out.

WALLACE: I love to rhyme it out!

TOURE: You're funny. Hey, listen. Two days after the outcome of the election became clear, and many Americans are still struggling to wrap their heads around where we are as a country. The year of the values voters showed us to be more sharply divided, more conservative, more religious and more concerned with moral values than many had realized.

And now millions of Americans are looking at America and saying, I don't even know who you are anymore!

But what do you think? Here is the question: Did the election change your view of America? Some interesting answers. Lots of interesting answers.

John from Oxford, Connecticut, says: "Nothing has changed my view of my country. But I'm greatly saddened and frightened by the ferocity and hatred of the Republicans toward anyone who is not a Republican. The arrogance of Bush and the Republican Party makes me fear that our reputation in the world will be so damaged it may never recover."

Mel from Cornwall on the Hudson: "It hasn't changed my view, but it has provided me with one more example to confirm the old saw, "nobody ever went broke underestimating the taste of the great American public."

Eddie says: "Yes, my view of this country has changed. I am sad and sickened to see the blurring of God and government. It's becoming increasingly more difficult to tell where one ends and the other begins. Canada is looking better and better."

Lots of my friends are saying that.

And anonymous, interesting: "I totally don't understand this country anymore. While the rest of the world progresses, we seem to be going backwards. You want to talk shock and awe? That was how I felt after the election."

Raw feelings.

WALLACE: No one happy though. We didn't get too many happy about the election results.

ANDY SERWER, "FORTUNE" MAGAZINE: The stock market is going up.

HEMMER: Hey, now, oil is going down.

SERWER: The price of oil is going down.

HEMMER: Down, down, down, down, down.

SERWER: Yes.

HEMMER: Thank you, Toure.

He may be best wide receiver in football. They call him T.O. Terrell Owens branching out.

SERWER: He is.

HEMMER: Andy Serwer's favorite story of the day, back "Minding Your Business."

SERWER: Yes.

HEMMER: What's he doing?

SERWER: Well, it involves food. T.O. has gone nuts. Terrell Owens, the outrageous, outlandish wide receiver for the Philadelphia Eagles and one heck of a football player, is getting into the food business. He says his model is Paul Newman. He's got a line of nuts here. Hot nuts.

HEMMER: His model is Paul Newman.

SERWER: Paul Newman. You know how Paul Newman got out of acting and branched into food and salad dressing...

WALLACE: Salad dressing.

SERWER: And all of that? That's what -- and Terrell, by the way, I know you're watching because I hear you get up early and watch CNN. I don't know, guy. I mean, you're taking your eye off the football. I don't know if you're really going to be ready for this big game against Pittsburgh. You want to call me out...

HEMMER: Give it to him, Andy!

SERWER: You want to call out CNN...

HEMMER: Give it to him.

SERWER: ... in the end zone, because remember, this is a guy who likes to call people out. He took the Sharpie out and autographed his ball.

TOURE: Are you taking the Eagles on Sunday or what?

WALLACE: What about multi-tasking?

SERWER: I'm taking the Steelers.

TOURE: Ooh!

(CROSSTALK)

SERWER: These, by the way -- one thing. These are very good.

HEMMER: What are they?

(CROSSTALK)

SERWER: Here we go. Here are the anchors. This is based on percents, ranked by percent. Soledad, No. 1.

HEMMER: She's cheating.

SERWER: Bill Hemmer...

WALLACE: Go, Soledad!

SERWER: ... No. 2. Me, that's why they call me the man in the middle. Jack is not here. So we've got his (UNINTELLIGIBLE).

TOURE: Dude, it's only fair, I crush you guys when I play. And they don't let me get in!

(CROSSTALK)

SERWER: Let's talk about some of the games here. I'm taking the Pittsburgh Steelers over T.O.'s Eagles. OK?

HEMMER: That's a great game.

SERWER: It's a great -- this is the game of the week, by far.

TOURE: A great game.

SERWER: Next, the Browns versus the Ravens. The old Browns versus the new Browns. Jamal Lewis back from a suspension. I'm going with the Ravens.

HEMMER: Ravens.

SERWER: And these nuts are so good, T.O. The Vikings versus the Colts. Randy Mann's Moss is still out. And you know what's interesting about that Eagles-Pittsburgh game is that, of course, Pennsylvania is the battleground state. It's not over. The battle for Pennsylvania continues. And we're going to see that on Sunday.

HEMMER: I like Peyton Manning, too, by the way. These are good.

SERWER: What do you think? Hey, you guys haven't tried any. Come on.

WALLACE: They're good.

TOURE: No, we were having these. The Colts are in a little bit of disarray, though, right now, huh? It might be a rough week.

SERWER: But with Randy Moss not there.

TOURE: It's a whole different team.

SERWER: That's right.

HEMMER: Thanks for the snacks.

SERWER: Thanks to T.O.

(CROSSTALK)

WALLACE: Andy Serwer, football business, food, renaissance man.

Still to come, the cloud of mystery over Yasser Arafat's health. The Palestinian leader is reportedly in a coma and on life support. We'll try to get some answers from Palestinian spokesman Saeb Erekat. That's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

WALLACE: Palestinian leader Yasser Arafat remains in a coma this morning, being kept alive only by life-support machines until a decision on where he will be buried is sorted out. However, some Palestinian officials say the coma is reversible.

Saeb Erekat is the chief Palestinian spokesman. He joins us live now from Ramallah.

Saeb Erekat, good to see you. Thanks for being with us.

SAEB EREKAT, CHIEF PALESTINIAN SPOKESMAN: Hi, Kelly. It's good to see you.

WALLACE: Saeb, first, tell us what's the latest on Palestinian leader Yasser Arafat's condition?

EREKAT: I was five minutes ago on the phone with the Dr. Masser Goodway (ph) and the chief of his cabinet, Dr. Ahmed Qorei, and his doctor, Armon Duka (ph). The situation is the same. President Arafat is not clinically dead. President Arafat brain's function, his organs function. The situation is difficult.

President Arafat is in Paris not for (UNINTELLIGIBLE), but for treatment. But I think all that what I heard this morning about the support systems and not being buried before we decide, it's absolutely baseless.

I hope that everybody will just wait to hear the French doctors, what they say. The president's situation is the same, and it's a difficult situation. And I was told that the doctors are continuing to exert every possible effort. WALLACE: It's a difficult situation, Saeb. But is there a chance that President Arafat will walk away from this? Or is that very unlikely at this point in time?

EREKAT: I cannot tell you, Kelly. I cannot tell you. I don't know. I'm not with the doctors. The doctors haven't told us. But our thoughts and prayer is that he maybe do that.

WALLACE: Right now, of course, negotiations over if Arafat does pass away, what the situation would be in terms of a burial. You know the Israeli leaders say absolutely no way to a burial in Jerusalem. What is the latest on negotiations on where he could possibly be buried?

EREKAT: There is no negotiations going on, Kelly, at this stage. And we hope we don't need to engage in such negotiations over this issue. But I hope that the Israeli public will show sensitivities. I've seen some Israelis dancing in the streets and hugging each other yesterday. I think it's alien even -- it's -- I cannot describe my feeling. It's heartbreaking to see Israelis hugging and kissing under such circumstances.

And also they have to show some sensitivities about these issues. And I think it's premature to talk about it at this stage, about burying or not burying. But I hope the Israeli government will show sensitivities. They have target President Arafat for a long time. I believe if Mother Teresa, Kelly, were to be the prime minister of Palestine or the president of Palestine one day, the group that rules Israel today, the prime minister, would find a way to accuse her of terrorism, and she will echo this in the United States.

I believe it's time for the Israelis to show respect to their neighbors, the Palestinians, to respect our sensitivities, our feelings. And I hope that the Israelis will understand that one day there will be peace between us, there will be better relations between us, and they have to be sensitive at this critical time of the Palestinians' feelings and emotions towards their president.

WALLACE: Saeb Erekat, chief Palestinian negotiator, we have to leave it there. Thanks for talking with us. We certainly will be staying in touch with you throughout the day and days -- Bill.

HEMMER: All right, Kelly, about eight minutes now before the hour. It's a Friday. We're going to lighten things up in a moment here. Jude Law must have a new movie out, right? Six films in one year. Who is going to go watch "Alfie?" We'll talk about it in "90- Second Pop" right after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody, on a Friday. "90-Second Pop" time for that now. The pop players, Sarah Bernard back with us, contributing editor for "New York" magazine.

Sarah, how are you?

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Good.

HEMMER: The weekend is almost here.

B.J. Sigesmund, staff editor for "US Weekly."

Good morning, B.J.

B.J. SIGESMUND, STAFF EDITOR, "US WEEKLY": Good morning, Bill.

HEMMER: And Jessica Shaw for "Entertainment Weekly."

Nice to see you, Jessica, as well.

JESSICA SHAW, "ENTERTAINMENT WEEKLY": You too.

HEMMER: Here we go. "The OF COURSE," started a new season last night.

BERNARD: Thank god!

HEMMER: No. 1 on my DVR list, by the way.

BERNARD: That's right.

HEMMER: How was it?

BERNARD: It was really good, I've got to say. I think they crammed too much into one hour, but that's fine, because I will watch no matter what they do.

Now, this is the show that is kind of like the "90210" of 2004. It is so successful, partially -- well, I think, you know, the casting and the bikini scenes don't hurt, but really the writing. Josh Schwartz, who is the creator of this show, was only about 26 when he pitched it. And he really -- the thing that's so good about it is the dialogue sounds like the way real teenagers talk. And that is so hard to come by on TV.

SIGESMUND: And it also moves so quickly, right? In the first two episodes, there is something like six big breakups. You know, people are constantly splitting up, getting back together, screaming at each other, blackmailing each other.

SHAW: It's basically a reality show.

HEMMER: It's like "Melrose's Place."

BERNARD: It is. It is a lot like "Melrose's Place."

SHAW: And there are some truly great soap moments. In the scene that we were just showing, Marissa, who is one of the main characters, has a complete meltdown with pool furniture and just throws all of the stuff into the pool, which I truly think will go down in the books as one of great soap moments of all time.

HEMMER: Must-see TV, right? SHAW: Absolutely must-see.

HEMMER: Box office this weekend, what's out? There is an animated movie out called "The Incredibles."

SIGESMUND: Yes.

HEMMER: Disney did it?

SIGESMUND: Right, yes. This is a Disney movie. Disney is about to hit the jackpot with this movie, "The Incredibles."

HEMMER: Really?

SIGESMUND: This is the next "Finding Nemo." It's opening on almost 4,000 screens. This is easily going to make $60 million or $70 million this weekend. Everyone loves it, kids, adults. We gave it three and a half stars in "US Weekly."

HEMMER: No kidding?

SIGESMUND: It's about a story of a family of superheroes that have to go into the equivalent of the Witness Protection Program and fit into suburbia, even though they look like superheroes. Craig T. Nelson and Holly Hunter are the voices of the mother and father, and it's going to be huge.

BERNARD: And Samuel L. Jackson is one of the voices, right?

HEMMER: You say it's the next "Nemo."

(CROSSTALK)

SIGESMUND: Yes. Well, this is Pixar, and they totally delivered with "Nemo" and with "Toy Story." And this is the next one.

HEMMER: Is it breaking new ground animation-wise, technology- wise?

SIGESMUND: I don't know that it's new. I don't know that it's breaking new ground like the "Polar Express" is next week, but it just is clever and its PG...

HEMMER: All right.

SIGESMUND: ... as Sarah pointed out.

BERNARD: Yes, that's the other thing that's great about it. It's not the G-rated movie. So if you want to go and you don't have kids, you don't have to feel...

SIGESMUND: Yes.

SHAW: And we were all talking, we were all really excited to see this.

BERNARD: Oh it really is.

SIGESMUND: Yes.

SHAW: I mean, I'm 7, but...

SIGESMUND: But conversely, there is another new movie this weekend, "Alfie." Now, for all of the movies that Jude Law has been in, he's never really headlined his own until now. And unfortunately, this movie, "Alfie," is going to tank.

HEMMER: Really?

SIGESMUND: I'm not expecting it to even make $10 million. Jude Law is really charming in it. I thought he was great. But the script is awful! So boring, dull, obvious.

HEMMER: And they've put an awful lot of promotion in that, too.

BERNARD: I think a lot of people are going to see it just because his real-life girlfriend, __ Miller, is in this. And this is kind of her introductory role.

HEMMER: Really?

BERNARD: So I think a lot of people will actually want to see them together.

SIGESMUND: Yes.

SHAW: Well, I wonder, I mean, six movies.

HEMMER: Kind of like...

SHAW: That is a lot. That's over exposure time.

HEMMER: Six in five months.

SHAW: Yes.

HEMMER: It's kind of like Ben and J. Lo, huh?

BERNARD: A little bit.

HEMMER: Yes, a little bit.

BERNARD: Yes.

HEMMER: "Dallas" is back this weekend.

SHAW: Yes!

HEMMER: Are you getting sentimental?

SHAW: I am a little sentimental. I love this show. I loved it. My Friday night, my whole childhood. But the reunion is not so great. I mean, you know, J.R., Bobby, Pam, Sue Ellen, they all come back, but it's really just the actors sitting around and reminiscing. And, you know, they show some home movies, they show some (UNINTELLIGIBLE). But it's so very geriatric and very, like, oh, the good old times.

SIGESMUND: Yes, I was always more of a "Dynasty" person than a "Dallas" person. But I think it's been interesting what with we've learned this week about "Dallas" with all of them doing interviews. Like, Larry Hagman was saying the "Who Shot J.R." time, that was when he decided to ask for more money. He's like if I'm going to be staying in this...

HEMMER: Come on!

SIGESMUND: ... I may as well as be rich and famous. And you know what? He hasn't watched TV in 20 years since he went off the air.

BERNARD: My favorite comment was that Linda Gray said that she was the original desperate housewife.

HEMMER: Perfect.

BERNARD: So all of these shows really owe a lot to "Dallas."

SIGESMUND: Yes. And then her favorite season was the one where she was drunk the entire time -- on the show, that is.

HEMMER: J.R. has got a good agent.

SHAW: Right.

HEMMER: Thanks, guys. You guys have a good weekend, OK?

Back to Kelly now.

WALLACE: Bill, thanks so much. Still to come, President Bush says he's earned political capital and he's ready to spend it. But he could be in a bin for a big fight with the people who hold the purse strings. A look at that ahead on AMERICAN MORNING.

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Aired November 5, 2004 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Sunrise in Manhattan. It's 7:30 here in New York. Welcome back, everybody. Soledad is out today. Pleased to have Kelly Wallace with us today.
KELLY WALLACE, CNN ANCHOR: Pleased to be here.

HEMMER: You have been busy body, haven't you?

WALLACE: Oh, we all have been.

HEMMER: What was it like up in Boston come Wednesday when the news came in for the Kerry folks?

WALLACE: It is amazing how quickly everyone just disappeared. I mean, you could feel it on Tuesday night about 10:00 in the area of the file center where all of the reporters were, Joe Lockhart and other aides walking around. You could see it on their faces. Monday night was long night for everybody. But in the morning it was just sort of pretty amazing. All of a sudden everyone just leaves.

HEMMER: On Tuesday...

WALLACE: Supporters, reporters, everyone was just gone.

HEMMER: Did they get the same exit polling that everybody else was getting, which gave them hope and optimism and confidence that it was going to be a good night?

WALLACE: They sure did. And that -- they were incredibly confident going into Tuesday. Then they saw exit polling, which had Senator Kerry up by a couple of points in most of the key battlegrounds. So when Senator Kerry landed in Boston, there was a real sense that they were going to win this over the hours. They felt like they were going to win it. And then it turned. So I think it made it doubly difficult for them.

HEMMER: I'm going to pick your brain this morning, OK?

WALLACE: Oh, we can't stop talking about it.

HEMMER: Coming up in a couple of minutes, too, back to the Pentagon this morning, Barbara Starr, new information. We'll find out what she is hearing about plans for a major assault on Fallujah. What else would U.S. forces do and face if they try and take the city now said to be teeming with insurgents? So we'll get to Barbara in a moment on that. WALLACE: Also, as Yasser Arafat clings to life, burial plans and the makeup of the Palestinian leadership are some of the immediate issues that have to be worked out. We will talk to the Palestinian's chief negotiator, Saeb Erekat, about those questions and about Arafat's condition coming up.

HEMMER: They are hanging on pins and needles today.

WALLACE: Absolutely. A lot of implications there.

HEMMER: Yes, correct.

Back to Carol Costello at the CNN center watching the other news.

Good to have you this morning. Carol -- good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning, Bill. Good morning, Kelly. Good morning to all of you.

"Now in the News."

In just about three hours, the jury in the Scott Peterson trial is set to resume deliberations. A judge in the double-murder case has ruled against allowing live TV coverage of the verdict out of concern for the families on both sides. It's still not clear when that verdict will be reached.

President Bush is now relaxing at Camp David after a grueling campaign. Before heading there, the president held a news conference yesterday, laying out plans for his second term. President Bush said he's earned capital during the campaign, and he intends to spend it. He promised to work with Democrats to carry out his agenda, which includes fighting the war in Iraq, revamping social security and overhauling the tax system.

The U.N. Security Council is preparing to meet next week in Kenya to discuss the grave situation in Sudan. The U.N. envoy to Sudan is warning things there could spiral into anarchy, that the Security Council must be ready to offer concessions as well as threaten force to influence peace talks in the region.

And the world's largest retailer is giving a 2,000-year-old city a run for its money. Hundreds of shoppers flooded a Wal-Mart north of Mexico City. The store's opening comes after months of protests. That's because it's less than a mile from the ruins of the ancient city of Teotihuacan. I apologize so much for my terrible Spanish -- Bill.

HEMMER: For (UNINTELLIGIBLE).

COSTELLO: I know.

HEMMER: Well done, Carol. Talk to you later.

U.S. and Iraqi forces appear to be making these final preparations now for this major offensive on the town of Fallujah west of Baghdad. Barbara Starr is at the Pentagon, watching this story very closely from there.

What do you have? Barbara -- good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Bill.

Well, U.S. and Iraqi forces appear ready to launch that all-out assault in Fallujah, if and when the order comes.

(BEGIN VIDEOTAPE)

STARR (voice over): As U.S. troops prepare for a ground attack, Marines know that once inside Fallujah, snipers may lie in wait, booby traps may already be laid.

UNIDENTIFIED MALE: This is antiaircraft ammunition. These are some of the copper wires they use for the side where road bombs are, as people call them, we call them IEDs.

STARR: Intelligence indicates thousands of insurgents remain in the Fallujah area. Troops are now searching cars for fighters trying to escape.

Defeating the insurgency in Fallujah is now seen as a vital step towards controlling the country.

MAJ. JIM WEST, MARINE INTELLIGENCE OFFICER: It is not, though, the panacea. Just by taking it out does not mean the rest of the insurgency will fall. But it will be a big chip in that block out there.

STARR: It is called the tipping point, the point at which insurgents believe they have no hope of winning. That is the fundamental challenge across Iraq.

One senior U.S. military officer told CNN, we may be at an operational stalemate. We are nowhere near the tipping point.

Insurgents number between 8,000 to 12,000 strong, conducting about 80 attacks a day nationwide. But intelligence experts say they still don't have a good handle on what is motivating many.

One assessment: Sunni and Baath loyalists, trying to regain power, won't stop their fight, raising the prospect of violence for years to come. But on this day, U.S. troops near Fallujah are focused on their mission.

UNIDENTIFIED MALE: Do you know what you're writing?

UNIDENTIFIED MALE: Stay away or we'll kill you in Arabic.

(END VIDEOTAPE)

STARR: And what about Abu Musab al-Zarqawi, that terrorist leader who has claimed responsibility for so many violent attacks? Well, sources say he may no longer even be in Fallujah. They don't really know where he is. If they do find him there, it will be a combat bonus -- Bill.

HEMMER: Barbara, back to this quote, "operational stalemate." What does that mean? How do we interpret that?

STARR: Operational stalemate is something that military officials are beginning to refer to in Iraq, because what they're not able to do so far is get to that tipping point, break the insurgency, make it appear to the insurgency that they have no hope of winning, so that they need to give up, if you will. There is no indication that the insurgents are about to do that. The fact is, attacks are continuing, and they are continuing at a higher and higher level across the country. That is what has the coalition deeply worried -- Bill.

HEMMER: All right, Barbara, thanks. Barbara Starr at the Pentagon this morning -- Kelly.

WALLACE: Thanks, Bill.

The Monday morning quarterbacking from both sides of the aisle will likely continue for some time over the results of this week's presidential election. Republican Senator John McCain stopped by "The Tonight Show With Jay Leno" with his thoughts on the outcome.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: The president got, I think, a mandate, a 3.5 million vote plurality, the first time a president has gotten over 50 percent of the vote in 16 years. And is it an overwhelming mandate? No. But it certainly is a strong signal of approval. And again, the issue on the war on terror. I think Osama bin Laden's tape focused our attention again on this incarnate -- evil incarnate that threatens everything we stand for and believe in.

(END VIDEO CLIP)

WALLACE: And as you know, probably, Senator McCain is among the many likely candidates rumored to be in the running for the 2008 presidential race.

HEMMER: We talked about that tape yesterday with "TIME" magazine. They make it a pivotal point, they say, in this election. I just wonder how many people already had their mind made up. It was Friday afternoon when that tape came out.

WALLACE: The sense is, I sensed this from both sides, that people had already made their decision, that it was not likely to have as big an impact. And that could have potentially, at least over the weekend the polling, could have helped Senator Kerry. But clearly that polling was wrong.

HEMMER: Welcome to inside politics.

(WEATHER REPORT)

HEMMER: In the meantime, an all-pro in the NFL, controversial in his own right, huh, used to catching passes, pitching his own line of peanuts and salsa. In a moment here, Andy has got that story.

WALLACE: Plus, Pixar flexes its muscle with "The Incredibles." But is it another winner for the studio? The "90-Second Poppers" chime in. That's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

WALLACE: And time now to check in with Toure and the "Question of the Day." I love...

TOURE, CNN POPULAR CULTURE CORRESPONDENT: You love to rhyme that out.

WALLACE: I love to rhyme it out!

TOURE: You're funny. Hey, listen. Two days after the outcome of the election became clear, and many Americans are still struggling to wrap their heads around where we are as a country. The year of the values voters showed us to be more sharply divided, more conservative, more religious and more concerned with moral values than many had realized.

And now millions of Americans are looking at America and saying, I don't even know who you are anymore!

But what do you think? Here is the question: Did the election change your view of America? Some interesting answers. Lots of interesting answers.

John from Oxford, Connecticut, says: "Nothing has changed my view of my country. But I'm greatly saddened and frightened by the ferocity and hatred of the Republicans toward anyone who is not a Republican. The arrogance of Bush and the Republican Party makes me fear that our reputation in the world will be so damaged it may never recover."

Mel from Cornwall on the Hudson: "It hasn't changed my view, but it has provided me with one more example to confirm the old saw, "nobody ever went broke underestimating the taste of the great American public."

Eddie says: "Yes, my view of this country has changed. I am sad and sickened to see the blurring of God and government. It's becoming increasingly more difficult to tell where one ends and the other begins. Canada is looking better and better."

Lots of my friends are saying that.

And anonymous, interesting: "I totally don't understand this country anymore. While the rest of the world progresses, we seem to be going backwards. You want to talk shock and awe? That was how I felt after the election."

Raw feelings.

WALLACE: No one happy though. We didn't get too many happy about the election results.

ANDY SERWER, "FORTUNE" MAGAZINE: The stock market is going up.

HEMMER: Hey, now, oil is going down.

SERWER: The price of oil is going down.

HEMMER: Down, down, down, down, down.

SERWER: Yes.

HEMMER: Thank you, Toure.

He may be best wide receiver in football. They call him T.O. Terrell Owens branching out.

SERWER: He is.

HEMMER: Andy Serwer's favorite story of the day, back "Minding Your Business."

SERWER: Yes.

HEMMER: What's he doing?

SERWER: Well, it involves food. T.O. has gone nuts. Terrell Owens, the outrageous, outlandish wide receiver for the Philadelphia Eagles and one heck of a football player, is getting into the food business. He says his model is Paul Newman. He's got a line of nuts here. Hot nuts.

HEMMER: His model is Paul Newman.

SERWER: Paul Newman. You know how Paul Newman got out of acting and branched into food and salad dressing...

WALLACE: Salad dressing.

SERWER: And all of that? That's what -- and Terrell, by the way, I know you're watching because I hear you get up early and watch CNN. I don't know, guy. I mean, you're taking your eye off the football. I don't know if you're really going to be ready for this big game against Pittsburgh. You want to call me out...

HEMMER: Give it to him, Andy!

SERWER: You want to call out CNN...

HEMMER: Give it to him.

SERWER: ... in the end zone, because remember, this is a guy who likes to call people out. He took the Sharpie out and autographed his ball.

TOURE: Are you taking the Eagles on Sunday or what?

WALLACE: What about multi-tasking?

SERWER: I'm taking the Steelers.

TOURE: Ooh!

(CROSSTALK)

SERWER: These, by the way -- one thing. These are very good.

HEMMER: What are they?

(CROSSTALK)

SERWER: Here we go. Here are the anchors. This is based on percents, ranked by percent. Soledad, No. 1.

HEMMER: She's cheating.

SERWER: Bill Hemmer...

WALLACE: Go, Soledad!

SERWER: ... No. 2. Me, that's why they call me the man in the middle. Jack is not here. So we've got his (UNINTELLIGIBLE).

TOURE: Dude, it's only fair, I crush you guys when I play. And they don't let me get in!

(CROSSTALK)

SERWER: Let's talk about some of the games here. I'm taking the Pittsburgh Steelers over T.O.'s Eagles. OK?

HEMMER: That's a great game.

SERWER: It's a great -- this is the game of the week, by far.

TOURE: A great game.

SERWER: Next, the Browns versus the Ravens. The old Browns versus the new Browns. Jamal Lewis back from a suspension. I'm going with the Ravens.

HEMMER: Ravens.

SERWER: And these nuts are so good, T.O. The Vikings versus the Colts. Randy Mann's Moss is still out. And you know what's interesting about that Eagles-Pittsburgh game is that, of course, Pennsylvania is the battleground state. It's not over. The battle for Pennsylvania continues. And we're going to see that on Sunday.

HEMMER: I like Peyton Manning, too, by the way. These are good.

SERWER: What do you think? Hey, you guys haven't tried any. Come on.

WALLACE: They're good.

TOURE: No, we were having these. The Colts are in a little bit of disarray, though, right now, huh? It might be a rough week.

SERWER: But with Randy Moss not there.

TOURE: It's a whole different team.

SERWER: That's right.

HEMMER: Thanks for the snacks.

SERWER: Thanks to T.O.

(CROSSTALK)

WALLACE: Andy Serwer, football business, food, renaissance man.

Still to come, the cloud of mystery over Yasser Arafat's health. The Palestinian leader is reportedly in a coma and on life support. We'll try to get some answers from Palestinian spokesman Saeb Erekat. That's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

WALLACE: Palestinian leader Yasser Arafat remains in a coma this morning, being kept alive only by life-support machines until a decision on where he will be buried is sorted out. However, some Palestinian officials say the coma is reversible.

Saeb Erekat is the chief Palestinian spokesman. He joins us live now from Ramallah.

Saeb Erekat, good to see you. Thanks for being with us.

SAEB EREKAT, CHIEF PALESTINIAN SPOKESMAN: Hi, Kelly. It's good to see you.

WALLACE: Saeb, first, tell us what's the latest on Palestinian leader Yasser Arafat's condition?

EREKAT: I was five minutes ago on the phone with the Dr. Masser Goodway (ph) and the chief of his cabinet, Dr. Ahmed Qorei, and his doctor, Armon Duka (ph). The situation is the same. President Arafat is not clinically dead. President Arafat brain's function, his organs function. The situation is difficult.

President Arafat is in Paris not for (UNINTELLIGIBLE), but for treatment. But I think all that what I heard this morning about the support systems and not being buried before we decide, it's absolutely baseless.

I hope that everybody will just wait to hear the French doctors, what they say. The president's situation is the same, and it's a difficult situation. And I was told that the doctors are continuing to exert every possible effort. WALLACE: It's a difficult situation, Saeb. But is there a chance that President Arafat will walk away from this? Or is that very unlikely at this point in time?

EREKAT: I cannot tell you, Kelly. I cannot tell you. I don't know. I'm not with the doctors. The doctors haven't told us. But our thoughts and prayer is that he maybe do that.

WALLACE: Right now, of course, negotiations over if Arafat does pass away, what the situation would be in terms of a burial. You know the Israeli leaders say absolutely no way to a burial in Jerusalem. What is the latest on negotiations on where he could possibly be buried?

EREKAT: There is no negotiations going on, Kelly, at this stage. And we hope we don't need to engage in such negotiations over this issue. But I hope that the Israeli public will show sensitivities. I've seen some Israelis dancing in the streets and hugging each other yesterday. I think it's alien even -- it's -- I cannot describe my feeling. It's heartbreaking to see Israelis hugging and kissing under such circumstances.

And also they have to show some sensitivities about these issues. And I think it's premature to talk about it at this stage, about burying or not burying. But I hope the Israeli government will show sensitivities. They have target President Arafat for a long time. I believe if Mother Teresa, Kelly, were to be the prime minister of Palestine or the president of Palestine one day, the group that rules Israel today, the prime minister, would find a way to accuse her of terrorism, and she will echo this in the United States.

I believe it's time for the Israelis to show respect to their neighbors, the Palestinians, to respect our sensitivities, our feelings. And I hope that the Israelis will understand that one day there will be peace between us, there will be better relations between us, and they have to be sensitive at this critical time of the Palestinians' feelings and emotions towards their president.

WALLACE: Saeb Erekat, chief Palestinian negotiator, we have to leave it there. Thanks for talking with us. We certainly will be staying in touch with you throughout the day and days -- Bill.

HEMMER: All right, Kelly, about eight minutes now before the hour. It's a Friday. We're going to lighten things up in a moment here. Jude Law must have a new movie out, right? Six films in one year. Who is going to go watch "Alfie?" We'll talk about it in "90- Second Pop" right after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody, on a Friday. "90-Second Pop" time for that now. The pop players, Sarah Bernard back with us, contributing editor for "New York" magazine.

Sarah, how are you?

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Good.

HEMMER: The weekend is almost here.

B.J. Sigesmund, staff editor for "US Weekly."

Good morning, B.J.

B.J. SIGESMUND, STAFF EDITOR, "US WEEKLY": Good morning, Bill.

HEMMER: And Jessica Shaw for "Entertainment Weekly."

Nice to see you, Jessica, as well.

JESSICA SHAW, "ENTERTAINMENT WEEKLY": You too.

HEMMER: Here we go. "The OF COURSE," started a new season last night.

BERNARD: Thank god!

HEMMER: No. 1 on my DVR list, by the way.

BERNARD: That's right.

HEMMER: How was it?

BERNARD: It was really good, I've got to say. I think they crammed too much into one hour, but that's fine, because I will watch no matter what they do.

Now, this is the show that is kind of like the "90210" of 2004. It is so successful, partially -- well, I think, you know, the casting and the bikini scenes don't hurt, but really the writing. Josh Schwartz, who is the creator of this show, was only about 26 when he pitched it. And he really -- the thing that's so good about it is the dialogue sounds like the way real teenagers talk. And that is so hard to come by on TV.

SIGESMUND: And it also moves so quickly, right? In the first two episodes, there is something like six big breakups. You know, people are constantly splitting up, getting back together, screaming at each other, blackmailing each other.

SHAW: It's basically a reality show.

HEMMER: It's like "Melrose's Place."

BERNARD: It is. It is a lot like "Melrose's Place."

SHAW: And there are some truly great soap moments. In the scene that we were just showing, Marissa, who is one of the main characters, has a complete meltdown with pool furniture and just throws all of the stuff into the pool, which I truly think will go down in the books as one of great soap moments of all time.

HEMMER: Must-see TV, right? SHAW: Absolutely must-see.

HEMMER: Box office this weekend, what's out? There is an animated movie out called "The Incredibles."

SIGESMUND: Yes.

HEMMER: Disney did it?

SIGESMUND: Right, yes. This is a Disney movie. Disney is about to hit the jackpot with this movie, "The Incredibles."

HEMMER: Really?

SIGESMUND: This is the next "Finding Nemo." It's opening on almost 4,000 screens. This is easily going to make $60 million or $70 million this weekend. Everyone loves it, kids, adults. We gave it three and a half stars in "US Weekly."

HEMMER: No kidding?

SIGESMUND: It's about a story of a family of superheroes that have to go into the equivalent of the Witness Protection Program and fit into suburbia, even though they look like superheroes. Craig T. Nelson and Holly Hunter are the voices of the mother and father, and it's going to be huge.

BERNARD: And Samuel L. Jackson is one of the voices, right?

HEMMER: You say it's the next "Nemo."

(CROSSTALK)

SIGESMUND: Yes. Well, this is Pixar, and they totally delivered with "Nemo" and with "Toy Story." And this is the next one.

HEMMER: Is it breaking new ground animation-wise, technology- wise?

SIGESMUND: I don't know that it's new. I don't know that it's breaking new ground like the "Polar Express" is next week, but it just is clever and its PG...

HEMMER: All right.

SIGESMUND: ... as Sarah pointed out.

BERNARD: Yes, that's the other thing that's great about it. It's not the G-rated movie. So if you want to go and you don't have kids, you don't have to feel...

SIGESMUND: Yes.

SHAW: And we were all talking, we were all really excited to see this.

BERNARD: Oh it really is.

SIGESMUND: Yes.

SHAW: I mean, I'm 7, but...

SIGESMUND: But conversely, there is another new movie this weekend, "Alfie." Now, for all of the movies that Jude Law has been in, he's never really headlined his own until now. And unfortunately, this movie, "Alfie," is going to tank.

HEMMER: Really?

SIGESMUND: I'm not expecting it to even make $10 million. Jude Law is really charming in it. I thought he was great. But the script is awful! So boring, dull, obvious.

HEMMER: And they've put an awful lot of promotion in that, too.

BERNARD: I think a lot of people are going to see it just because his real-life girlfriend, __ Miller, is in this. And this is kind of her introductory role.

HEMMER: Really?

BERNARD: So I think a lot of people will actually want to see them together.

SIGESMUND: Yes.

SHAW: Well, I wonder, I mean, six movies.

HEMMER: Kind of like...

SHAW: That is a lot. That's over exposure time.

HEMMER: Six in five months.

SHAW: Yes.

HEMMER: It's kind of like Ben and J. Lo, huh?

BERNARD: A little bit.

HEMMER: Yes, a little bit.

BERNARD: Yes.

HEMMER: "Dallas" is back this weekend.

SHAW: Yes!

HEMMER: Are you getting sentimental?

SHAW: I am a little sentimental. I love this show. I loved it. My Friday night, my whole childhood. But the reunion is not so great. I mean, you know, J.R., Bobby, Pam, Sue Ellen, they all come back, but it's really just the actors sitting around and reminiscing. And, you know, they show some home movies, they show some (UNINTELLIGIBLE). But it's so very geriatric and very, like, oh, the good old times.

SIGESMUND: Yes, I was always more of a "Dynasty" person than a "Dallas" person. But I think it's been interesting what with we've learned this week about "Dallas" with all of them doing interviews. Like, Larry Hagman was saying the "Who Shot J.R." time, that was when he decided to ask for more money. He's like if I'm going to be staying in this...

HEMMER: Come on!

SIGESMUND: ... I may as well as be rich and famous. And you know what? He hasn't watched TV in 20 years since he went off the air.

BERNARD: My favorite comment was that Linda Gray said that she was the original desperate housewife.

HEMMER: Perfect.

BERNARD: So all of these shows really owe a lot to "Dallas."

SIGESMUND: Yes. And then her favorite season was the one where she was drunk the entire time -- on the show, that is.

HEMMER: J.R. has got a good agent.

SHAW: Right.

HEMMER: Thanks, guys. You guys have a good weekend, OK?

Back to Kelly now.

WALLACE: Bill, thanks so much. Still to come, President Bush says he's earned political capital and he's ready to spend it. But he could be in a bin for a big fight with the people who hold the purse strings. A look at that ahead on AMERICAN MORNING.

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