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Newsroom/World View

NEWSROOM for February 2, 2000

Aired February 2, 2000 - 4:30 a.m. ET


ANNOUNCER: Seen in classrooms the world over, this is CNN NEWSROOM.

SHELLEY WALCOTT, CO-HOST: This is Wednesday's edition of NEWSROOM. Glad you're here. I'm Shelley Walcott.

ANDY JORDAN, CO-HOST: I'm Andy Jordan.

We start with politics in the United States.

WALCOTT: In today's top story, the New Hampshire primary is over, which one of the presidential hopefuls is leading in the race to the White House?

JORDAN: The Internet revolution heads to Wall Street, in "Business Desk." We'll spell out the success story for IPOs.


DAVID LIU, CEO, THE KNOT, INC.: We started off with about seven people in a tiny little subletted office, and we're now over 120 people in four different locations around the country.


WALCOTT: In "Worldview," a call for Catholics to celebrate the millennium through spiritual journeys.


ARIE SOMMER, ISRAELI TOURISM COMMISSIONER: I think any tour that will connect the visitor to the history to the places where Jesus ministered and lived, that will connect them to the New Testament, and the Old Testament.


JORDAN: We continue our "Democracy in America" series in "Chronicle." With the first caucus and primary behind them, where do the U.S. presidential candidates go from here?

In today's top story, the New Hampshire primary, an early and crucial test in the U.S. presidential campaign. The primary gives voters a chance to express their preferences for presidential candidates. In turn, White House contenders believe a victory in the Granite State could help them snag their party's nomination for president.

The New Hampshire primary has historically led to dramatic duels between candidates and yesterday was no exception. On the Democratic side, it was a closer than expected battle between Vice President Al Gore and former Senator Bill Bradley of New Jersey. In the end, the vice president beat back Bradley's challenge to come out on top in a race which had been too close to call for much of the evening.

In the Republican race, Senator John McCain of Arizona scored a landslide victory over the candidate considered the front-runner, Texas Governor George W. Bush.

Because of its high profile primary, New Hampshire voters have played both kingmaker and giant-killer in presidential campaigns over the years.

Bruce Morton has more On the first-in-the-nation contest.


BRUCE MORTON, CNN CORRESPONDENT (voice-over): New Hampshire, snow, scenery, and the first primary going back to 1952, when Dwight Eisenhower defeated conservative Robert Taft and went onto the White House.

Drama? How about 1964, when William Lobe, angry publisher of the angry "Manchester Union Leader," blasted Nelson Rockefeller as a wife swapper. Rockefeller had remarried.

TOM RATH, NEW HAMPSHIRE GOP ACTIVIST: They really blasted him all the way through and by the end the voters got so tired with both he and Goldwater that they wrote in Henry Cabot Lodge, who was the ambassador of South Vietnam and never gotten closer than about 6,000 miles away.

MORTON: Democratic front-runner Ed Muskie in 1972 responding to a William Lobe attack on Muskie's wife, Jane. Did he cry? Hard to tell in the snow.




DAVID NYHAN, "BOSTON GLOBE": It became the symbol of Muskie's indecisiveness and would he be tough enough. The Nixon people used that very effectively.

MORTON: George McGovern became the nominee and carried one state against Nixon.

In 1980, George Bush won Iowa. The Nashua newspaper sponsored and the Reagan campaign paid for a Reagan-Bush debate. The other candidates showed up and wanted to play, too. The moderator tried to cut off Reagan's microphone.

NYHAN: George Bush sitting there like an errant schoolboy caught sneaking a smoke in the gym and the Gipper saying...


RONALD REAGAN, PRESIDENT OF THE UNITED STATES: I am paying for this microphone.


MORTON: Vintage, got the man's name wrong and the line is from an old Spencer Tracey movie, but it worked.

NYHAN: The day of the primary Reagan fired his entire upper campaign echelon.

MORTON: A penalty for losing him Iowa. 1984, when Gary Hart, a distant second in Iowa, beat Walter Mondale here as other campaigns collapsed. 1988, when Bob Dole asked a TV interviewer to tell George Bush to stop lying about my record. And Bush launched negative ads.

RATH: What was a 6-point lead Saturday morning turned into a 9- point win for George Bush on Tuesday night.

MORTON: New Hampshire is, no doubt about it, a special place with a special purpose.

NYHAN: New Hampshire really is a place where the underdog can sort of get his hands on the lapels of the front-runner and just shake him up a bit.

RATH: This is a place where you get a chance to try it out. We're like the -- we're like New Haven to Broadway, we're a place that lets you come in early and try out the act.

MORTON: Whatever it does, it isn't like anyplace else.

Bruce Morton, CNN, Manchester, New Hampshire.


WALCOTT: Before we break down the New Hampshire numbers, it's perhaps important to note a win here doesn't always mean a win for the party nomination. Ed Muskie, Gary Hart, Pat Buchanan, all people who won New Hampshire. By the same token, losing doesn't mean you will not win the nomination. President Bush did not win in 1992. and neither did President Clinton.

Well, having said that, here's a look at yesterday's results. The Republican race put John McCain on top by virtually 20 percent over George W. Bush. McCain campaigned in the state more than any other Republican contender. Steve Forbes came in third, followed by Alan Keyes and Gary Bauer.

(BEGIN VIDEO CLIP) SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: And it is the beginning of the end, because today the Republican Party has recovered its heritage of reform, and this is a good thing, and it is the beginning of the end for the truth-twisting politics of Bill Clinton and Al Gore.

GOV. GEORGE W. BUSH (R-TX), PRESIDENTIAL CANDIDATE: The road to the Republican nomination and the White House is a long road. Mine will go through all 50 states, and I intend it to end at 1600 Pennsylvania Avenue.


WALCOTT: On the Democratic side, it was more of a squeaker. In the end, Vice President Al Gore came out on top, but only by several percentage points.


VICE PRESIDENT AL GORE (D), PRESIDENTIAL CANDIDATE: For months, we were the underdogs here. We were behind in the polls for 14 weeks. We were outspent. But because of you, we were never outworked, and I thank you for that.

BILL BRADLEY (D), PRESIDENTIAL CANDIDATE: New Hampshire is a state of frank talk, independent thinking and town meetings, and I loved every day. We have made a remarkable turnaround, but there is still a tough fight ahead.


WALCOTT: With the first day of primary voting said and done, Frank Sesno puts it all into perspective.


FRANK SESNO, CNN CORRESPONDENT (voice-over): The night belonged to John McCain.

MCCAIN: And I think we finally have a poll without a margin of error.

SESNO: With a double digit win over George W. Bush, the Arizona senator upset the Republican applecart.

MCCAIN; I asked you to help me break the Washington iron triangle of big money, lobbyists and legislation that for too long has put special interests above the national interests.

Thanks to you, my dear friends, today we made room, we made room and we have sent a powerful message to Washington that change is coming.

SESNO: McCain won big among independents. But, more worrisome for Bush, McCain also won handily among registered Republicans. Now the hard part: translating his longshot insurgency into a full-fledged campaign.

MCCAIN: A wonderful New Hampshire campaign has come to an end, but a great national crusade has just begun.

SESNO: Bush was supposed to be the establishment favorite. He maintains he still is.

BUSH: New Hampshire has long been known as a bump in the road for frontrunners, and this year is no exception.

SESNO: The Bush campaign says it's got a strong 50-state strategy, but it was clearly stung by this loss. Conceded one top official: "It's not happy stuff ... Mccain's margin here is much bigger than we thought."

The other Republican candidates: Steve Forbes, Alan Keyes, Gary Bauer finished far back. Forbes vows to fight on. Bauer is taking stock.

For the Democrats, Al Gore's stock has risen somewhat.

GORE: This Tennessean is in the end zone, and it feels great.

SESNO: But Gore's victory was a very narrow one after a bitter campaign, and Bill Bradley says he's looking forward to the contests ahead.

BRADLEY: But it's a fight about more than Al Gore or me. It's a fight about the kind of America we know we can become.

UNIDENTIFIED MALE: Well, the exit polls show that Al Gore won among people who are satisfied with the economy, while Bradley did well among Independents and, not surprisingly, among people who were critical of Bill Clinton.

SESNO: There's little chance this feud will fizzle. Bradley and Gore are now sparring over whether they'll have weekly debates leading up to the critical March 7 primaries. And the Republicans: South Carolina is their next stop in a little over two weeks. Latest polls show Bush up by 20 points or so. McCain hopes his momentum out of New Hampshire will change that, and the aura of inevitability that has surrounded the Republican race for months.

Frank Sesno, CNN, Manchester, New Hampshire.


JORDAN: How did New Hampshire's future voters cast their ballots in yesterday's first primary of the 2000 presidential election? And what's the next big step in the road to the White House? It's all ahead as our "Democracy in America" coverage continues in "Chronicle."

WALCOTT: Today we trace the drama as the founders of a Web site become millionaires in a day. It's the diary of an IPO. An IPO is an initial public offering. That's when a company sells stock to the public for the first time. Fifty-seven percent of all IPOs last year were founded less than five years ago. And last year was the best year ever for IPOs, in terms of performance.

Greg Clarkin has the story of one, The Knot, backed by America Online, a company planning a merger with CNN's parent company, Time Warner.


GREG CLARKIN, CNN CORRESPONDENT (voice-over): They came dressed for the occasion, gowns and tuxedos.

UNIDENTIFIED FEMALE: It's very, very exciting. There's no doubt about it. There's been a lot of excitement around the office.

CLARKIN: But this was no wedding of a popular employee, it was the company's big day. The Knot, a Web site devoted to weddings, was tying the knot with Wall Street by launching an initial public stock offering, what every young Internet company dreams about; three years of work, a lifetime in the Internet world, expected to pay off.

The founders, paid less than $200,000 a year in salary, will become multimillionaires. Employees, paid tens of thousands, will be worth hundreds of thousands, some worth millions.

UNIDENTIFIED MALE: It's really great for morale. We've all been working so incredibly hard, and this is like the payoff.

CLARKIN: Only a few could concentrate on work. The Knot's CEO tried his best, battling an ill-fitting tux while employees took calls from family and friends.

Finally, CEO David Liu, his wife, Carley, and the other co- founders are ready to make the trip from Silicon Alley in lower Manhattan to their bankers uptown. From there, they'll watch the stock start trading.

DAVID LIU, CEO, THE KNOT, INC.: Well, we started off with about seven people in a tiny little subletted office, and we're now over 120 people in four different locations around the country.

CLARKIN: Back at The Knot, anticipation builds. Many have been with the company since the first year, working 18-hour days to build the Web site.

UNIDENTIFIED FEMALE: I think everybody's worked really hard to be at this point. We've been waiting for it and so it's nice to have it be here.

CLARKIN: Now investors will weigh in. It's a scene played out in hundreds of Internet offices in recent years.

UNIDENTIFIED MALE: We're also waiting to hear from The Knot.

CLARKIN: The stock was priced at 10. It opens at 13 and change -- respectable, but not eye-popping. But then it climbs and tacks on a few more dollars. But what's this? A plea for help from a band of notorious investors. Someone somewhere hears the plea. UNIDENTIFIED FEMALE: I'm calling to tell you it got to 20.

CLARKIN: Uptown, The Knot's executives breathe a little easier.

LIU: Breathtaking.


LIU: You don't know what is going to happen.

SANDRA STILES, COO, THE KNOT: Absolutely exciting, nerve- wracking, amazing, terrifying.

LIU: It certainly exceeded our expectations, I think.

STILES: Amazingly, yes it's great.

LIU: It was great. You know, we opened up 33 percent above our offering price, and then it actually went up over 100 percent, so...

STILES: We lucked out. It was climbing.

UNIDENTIFIED MALE: We've already hit that 100 percent rate, and that's, you know, everything.

CLARKIN: David Liu, CEO, salary: $180,000. His stake in The Knot now worth millions. The same for the three other founders. And what would a wedding be without a reception? Later, employees dined and chatted about their suddenly heightened interest in the stock market.


UNIDENTIFIED FEMALE: Very, very exciting.

CLARKIN: And, yes, there was a wedding cake and a toast.

LIU: To everybody who is in this room, I mean, we are absolutely indebted to the hard work and the hours that everyone's put in to make this happen. I mean, when -- we have so much work ahead of us, but this is just the most amazing day. And thank you all.

CLARKIN: With this creation of wealth comes the needs for a thick skin.

UNIDENTIFIED MALE: We were there for the first time, and watching the stock go buy, sell, buy, sell, you're wondering, wait a minute, someone's going to sell our shares? But then you realize, this is what they do all day long.

CLARKIN: The Knot does have its work cut out for it.

(on camera): The company's market value rose to more than $200 million on its first day of trading, but it's been sliding since. And with deep-pocketed backers such as America Online and QVC, The Knot's challenge now is to continue to build its Web site while warding off competitors.

(voice-over): But no matter where these Internet builders wind up, and no matter what rivals do, The Knot's employees will forever be joined by that one moment in time in late 1999 when they truly joined the Internet revolution.

Greg Clarkin, CNN Financial News, New York.


JORDAN: Well, it's time for globe-hopping in "Worldview." We'll crisscross the Earth to discover destinations that are at the top of many travel lists this year. For many people, the focus is less on tourism and more on pilgrimages in this year 2000.

RUDI BAKHTIAR, CO-HOST: The new millennium is already one month underway. How are you doing on your New Year's resolutions? If you made any, are you keeping them? Well, the new year is about more than trying to eat right or getting more exercise or keeping up with chores. For some, the changing of the calendar from the year 1999 to 2000 marks a deeply sacred time of religious reflection, and possibly deliverance.

But spiritual journeys are defined in many different ways, as Stephanie Oswald reports.


ROBERT MINOTTI, DIR. OF MUSIC, FORDHAM UNIVERSITY: I thought, well, what would be the best way for the choir to celebrate the millennium? What kind of event could we do? And I thought the most appropriate thing for a choir at a Catholic university would be to go to Rome and to perform at the center of our faith.

STEPHANIE OSWALD, CNN CORRESPONDENT (voice-over): So, in may, the 55-member choir will bring its melody to St. Peter's Basilica. Then the real prize: They will be one of more than 50 U.S. choirs to perform for an audience with the pope in Rome during the year 2000.

MARY KATE BLAINE, PRES., FORDHAM UNIVERSITY CHORUS: I think that, more than anything, people realize it's really a once-in-a- lifetime opportunity. It's the year 2000. What better way to bring in the millennium than by going to Rome, by celebrating such a special experience.

OSWALD: When Pope John Paul II opened these symbolic doors on Christmas Eve, he lifted the curtain on the Jubilee year, marking what biblical faith says is a time to celebrate, and a 12-month period the pope has designated as a time to travel.

The pope has urged the world's one billion Catholics to mark the 2,000th year of Christ's birth by taking a spiritual trip. Millions are expected to answer the call, inspiring officials at sacred sites around the world to scramble in preparation.

MAYOR GEORGIO BARTOLINI, ASSISI, ITALY (through translator): We believe that we will be sufficiently ready at that point. However, we are expecting as many as 13 million visitors between December 1999 and January of 2001, and anywhere from 13,000 to 15,000 visitors a day.

OSWALD: In Assisi, Italy, the push has been to restore the famous frescoes depicted on the ceiling of the Basilica of St. Francis. Two years ago, an earthquake shattered the upper church, sending frescoes to the floor in bits and pieces. Since then, workers have been laboring around the clock to put the paintings back together. Though the work is expected to take two to three more years to complete, the upper church, closed for two years, reopened in November.

Rome also has been in the midst of a renovation. Parts of the Vatican received a face lift, and museums and monuments long closed will once again welcome tourists.

Though the Eternal City is expected to host millions of millennium pilgrims, tour operators such as Peter Bahou say Israel will be the real winner for tourism 2000.

PETER BAHOU, PRES., PETER'S WAY INTL. LTD.: Matter of fact, the best buy, if you're looking for your money, is the Holy Land. The Holy Land, I have not seen increase in the Holy Land for the last three to four years. The prices are stable and people can get good rates, good packages, and the airlines -- it's surprising the airlines have not increased the prices. The prices are dropping down.

OSWALD: Billing itself as the official destination of the millennium, Israel is hoping to capitalize on what many call the cradle of Christianity.

ARIE SOMMER, ISRAELI TOURISM COMMISSIONER: We were waiting for this moment for at least 1,000 years, and the country is ready. We invested a lot of budget in infrastructure. For instance, we spent a lot of money in the city of Nazareth. We spent a lot of effort in adding hotel rooms all over the country, in Jerusalem and Tel Aviv and in the northern part of Israel.

OSWALD: Still, several sites may be overshadowed by controversy. In November, Christian churches shut down for two days in protest over Israel's decision to allow Muslims to build a mosque nearby the Basilica of the Annunciation in Nazareth. The church, a huge tourist attraction for Christians, is said to be built over the site where the angel Gabriel told Mary she was with child.

In Jerusalem's Old City, authorities may limit tourist access to the Church of the Holy Sepulcher for safety reasons. The church, believed to be the place of Christ's crucifixion and resurrection, has only one exit. Millennium crowds have already begun to multiply, with some days as many as 10,000 tourists, shoulder to shoulder, packing the church.

Roughly 60 percent of tourists to Israel are Christian. Most come for one reason.

SOMMER: I think any tour that will connect the visitor to the history, to the places where Jesus ministered and lived, that will connect them to the New Testament and Old Testament, this will be a special tour.

OSWALD: However, spiritual travel is not only about Christianity. Capturing a sense of the sacred can be found around the world. Take a look Down Under.

UNIDENTIFIED FEMALE: I said, I've got to go and see this magnificent rock. And, honestly, I feel like I've never felt closer to the Creator than I do now.

OSWALD: This remarkable natural formation is Ayers Rock, also known by its Aboriginal name, Uluru. Located in Central Australia, this 600-million-year-old piece of sandstone is one of the country's best known landmarks. Rising from the Australian desert higher than 1,100 feet, or about 348 meters, it attracts more than half a million visitors every year.

(on camera): More than simply a tourist attraction, this is the physical and spiritual heart of Australia. Uluru represents the delicate balance between ancient traditions, modern society and Mother Nature. The year 2000 marks an even greater significance for this sacred site. The Olympic torch will leave from Uluru in June.

(voice-over): For the Aborigines, this is a holy site. At sunset, the rock takes on various hues of fiery red, much like another new age favorite, Sedona, Arizona. For millennium freethinkers, these red rocks are expected to act as magnets for tourists hungry for spiritual solace in nature's raw beauty.

The pilgrims of the new millennium are headed for these uplifting destinations seeking a connection deeper than the average vacation offers, whether it's the power of nature or the spirit of religion guiding them along their way.

Stephanie Oswald, CNN.


ANNOUNCER: You're watching CNN NEWSROOM, seen in schools around the world, because learning never stops, and neither does the news.

TOM HAYNES, CO-HOST: Who says you need to be 18 years old to vote in the United States? About 6,000 students from elementary to high school voiced their opinions Tuesday in the New Hampshire primary. They took part in Kids Voting USA, a program that gets kids and their parents involved in the political process. Of course, the kids' votes didn't have an impact on the real primary results, but they sure had plenty to say.


UNIDENTIFIED CHILD: I voted for John McCain.


UNIDENTIFIED CHILD: Because I thought he'd be a good leader for the 21st century.

UNIDENTIFIED CHILD: I voted for George W. Bush.


UNIDENTIFIED CHILD: Because I just had to pick someone. I had no clue who he is.

UNIDENTIFIED REPORTER: Who did you vote for?



UNIDENTIFIED CHILD: Because I think he has more experience than everybody else because he was the vice president.

UNIDENTIFIED REPORTER: Who did you vote for?

UNIDENTIFIED CHILD: Secret ballot. I can't tell you, man. Sorry.


HAYNES: On the Republican side, it was a close race between George W. Bush and John McCain, with McCain ahead of Bush by only a handful of votes.

For the Democrats, Vice President Al Gore was in front of his challenger, Bill Bradley.

WALCOTT: The New Hampshire primary is over. And now that the votes are in, what's next on the agenda for the U.S. presidential hopefuls? Who will be focusing on which state?

Our Wolf Blitzer maps out the long and arduous road to the White House.


WOLF BLITZER, CNN CORRESPONDENT (voice-over): For the Republicans, it continues in one week with the February 8 Delaware primary. But that's largely a two-man contest, Bush versus Forbes. McCain is not campaigning there. For the maverick senator, the real challenge will be on February 19 in South Carolina where he's invested a great deal of time and money.

LEE BANDY, POLITICAL WRITER, "THE STATE": He has a two-state strategy. And if you have only a two-state strategy, you have to win both states. And right now here in South Carolina, history is on Bush's side.

BLITZER: Three days later on February 22, McCain will be on home turf in Arizona, but polls show a close contest there. Governor Jane Hull has endorsed Bush. Also that day, the Michigan primary. Governor John Engler has assured Bush a big win there. On February 29, it's on to Washington State, North Dakota and Virginia.

The next big test is March 7, with the Republican and Democratic primaries in California, Missouri, Ohio, Georgia, Maryland, New York and the rest of New England, as well as a handful of caucus states.

It's the single largest delegate selection day of the season for the Republicans, nearly 30 percent at stake. After a five-week hiatus in voting among Democrats, 30 percent of the Democratic delegates will be at stake on that first Tuesday in March.

BILL BRADLEY (D), PRESIDENTIAL CANDIDATE: After Iowa and New Hampshire, we have the first national primary, which is a totally different terrain and requires a totally different kind of campaigning.

BLITZER: Al Gore has a big advantage in organization, while the key for Bill Bradley will be California where he's raised big sums of money, especially in Silicon Valley, and in New York where he starred as an NBA basketball player.

LEE MIRINGOFF, MARIST INSTITUTE FOR PUBLIC OPINION: New York provides for Bradley a little bit of a home-court advantage. Clearly he's better known there, but Bradley needs to break the pattern that we've seen in Iowa, we see in New Hampshire, where the thing starts, it's fairly close, and then as the primary or caucus approaches, things don't seem to be breaking his way enough.

BLITZER: If there's still a race, it almost certainly will be over by March 14 with primaries in Texas, Oklahoma, Louisiana, Mississippi, Tennessee and Florida. The Southern roots of both Bush and Gore give them a strong edge there.


JORDAN: And this quick note before we go: The launch of the space shuttle Endeavour has been delayed yet again, at least until February 9.

WALCOTT: And that's it for us here on NEWSROOM. Have a great day.

JORDAN: I'll see you.


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