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American Morning

Tropical Storm Ernesto; Hurricane John; Iraq: Treating People

Aired September 01, 2006 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, it is Friday, September 1. I'm Soledad O'Brien.
MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien.

Here's a look at what's happening this morning.

A state of emergency in North Carolina, Tropical Storm Ernesto made landfall there overnight and strong wind and heavy rains continue to pummel the state. Forecasters say the storm could produce some tornadoes.

Meanwhile, in the Pacific, Hurricane John, now a Category 3 storm, taking aim on Baja, California today. Fifteen thousand out of their homes as the storm moves up Mexico's Pacific coast.

S. O'BRIEN: In Lexington, Kentucky, the only survivor of Sunday's deadly Comair crash has been upgraded to serious condition. Co-pilot James Polehinke had his third surgery yesterday. He was at the helm when Flight 5191 crashed shortly after takeoff. All 49 others on board died in the crash.

And a day after a series of deadly bank bombings, officials have closed all 17 banks in southern Thailand. In all, 10 banks were bombed yesterday. Authorities are blaming Islamic militants.

M. O'BRIEN: U.N. Secretary-General Kofi Annan still shuttling through the Middle East trying to keep the lid on that cease-fire between Israel and Hezbollah. He met today with Syrian President Bashar Assad in Damascus. Annan says Assad has committed to help stop the flow of arms into neighboring Lebanon.

S. O'BRIEN: And New Orleans Mayor Ray Nagin in New York City today. He's trying to bring business to the Crescent City. The visit comes after the mayor criticized the rebuilding place in lower Manhattan after 9/11, referring to Ground Zero as a hole in the ground. I'm sure he'll be discussing that today.

M. O'BRIEN: A little bit of explaining to do, I'd say, today.

A very busy morning for our severe weather expert Chad Myers, he's watching. It's a two-front war for him today.

Hello, -- Chad.

CHAD MYERS, CNN METEOROLOGIST: It really is. I mean we have Ernesto on one side, John on the other side, and actually the third front is a major high pressure to the north. And you're thinking well high pressure is good, right, that brings blue skies. Yes, but not when it's butted up against a low pressure here. And that's going to funnel a gale all the way from Baltimore through D.C. into Richmond, Virginia, all along the Delmarva and into Hampton Roads as well.

And that big red box there, that is a tornado watch box. Typically small tornadoes, but, yes, they still happen in hurricanes as they come on shore. Each individual big cell can make a tornado as it runs on shore. I've heard of some hurricanes making over 200 tornadoes and making more damage with the tornadoes than actually with the wind. The problem with this storm is actually going to be the damage with the flooding.

It is going to be a slow mover all the way up into Pennsylvania by Saturday, Saturday afternoon. So that's going to take a good long time for that storm to get here.

And that funneling effect I was talking about, a synoptic high up here, the low right here, and that funneling is going to push a lot of water into the Chesapeake. And I'm worried about that. I'm worried about how much water the Chesapeake can handle. We're -- look at the amount of rain coming down here for southeastern Virginia, northern North Carolina and the wind is blowing all of this ocean water back up into the Chesapeake.

Now the Chesapeake is a drainage system and the water is supposed to drain out. Well if you push the water back in, it has no where to go but up. And so anywhere up here, including Annapolis and D.C., I mean you're talking about the Potomac. The Potomac could be coming up significantly, a couple three feet, maybe four. And you've seen pictures of Alexandria (ph) when that happens, it just gets under water at times as the water comes up the Potomac. So watch that if you live in that area there.

A couple of other things to worry about, we will probably have flight delays. Here is the hurricane here, very few planes flying around it, so they all have to go one side or the other and that may affect any flights from New York down into Miami. Either have to fly way out into the ocean or the new path will actually be way back out here and across Atlanta and that's a longer distance. And that longer distance will of course take some more time for you to get to your destination.

Now we'll talk about the rainfall totals. Everywhere that you see white, that's three inches of rain or more. Now all of this rain is going to have to go somewhere. It's all going to have to try to get down in these creeks and streams and rivers and there's going to be flooding.

And we'll talk about John rather quickly. There's Cabo San Lucas. It will be a Category 3. In fact, we can use the Mexican radar out of Los Cabos. There is the eye of the storm. There is Los Cabos. There is the San Jose del Cabo. The whole area here going to be inundated by winds over 115 to 125. And we have reporters down there to show it to you.

Back to you.

M. O'BRIEN: A matter of fact, let's get right to them.

Thank you very much, Chad.

Harris Whitbeck is watching John from Cabo San Lucas and Kathleen Koch is in the middle of Ernesto in Raleigh, North Carolina. Let's begin with Kathleen.

Kathleen, what are you seeing there?

KATHLEEN KOCH, CNN CORRESPONDENT: Well, Miles, actually we are not quite in the middle of Ernesto to be precise. The storm right now is moving to our east. And so the Raleigh-Durham area is very fortunate, it has been spared the heavy flooding, drenching rains that we have seen in areas of the state to the south and east.

Right now we've had about an inch and a half of rain in this region, but some pretty strong gusting winds over 30 miles an hour, and that has brought down a lot of trees, a lot of power lines. So we're being told by the local power companies some 48,000 residents in the state of North Carolina without power right now. And crews are working, worked through the night, and are still working to try to restore the power.

But again, the brunt of the storm was felt on the coast where Ernesto came in, right around Long Beach, North Carolina. Pequins (ph) there. Sustained winds about 60, 65 miles an hour. In the area of Wilmington, right on the coast, they had a record eight inches of rain. The Coast Guard went up and down closing the ports as a precaution. Also in Buford County, down on the coast, they went door to door, officials, warning residents in low-lying areas, flood-prone areas, to get out and to seek shelter. Numerous shelters opened in the state.

Again, in this area, though, they are still not taking any chances. There is a flash flood watch that's in effect. There are some 25 swift water rescue teams that are on standby just in case. Additional members of the National Guard, state troopers have been put on standby. As a precaution, they have closed a lot of schools in the state. In this area, many schools on a two-hour delay, not wanting to take any chances.

But overall, Miles, this area has really dodged a bullet. We're seeing the flooding even less than it was when Alberto came through the area at the start of the season.

Back to you.

M. O'BRIEN: Kathleen Koch in Raleigh, thank you very much.

Let's shift now to the Pacific and Hurricane John and Harris Whitbeck who is joining us now from Cabo San Lucas -- Harris.

HARRIS WHITBECK, CNN CORRESPONDENT: Hello, Miles. Hurricane John intensified in the last few hours, now a Category 3 storm. It's barreling straight towards the southern tip of the Baja, California peninsula. About 15,000 local residents are now supposed to be in shelters.

Local government set up about 160 schools in higher ground in the Cabo area for those residents. The Mexican Army is in charge of those shelters and is in power to force people into them if necessary. There are between 7,000 and 8,000 tourists in the area. Most of those tourists have stayed in their resort hotels which have set up, in many cases, ballrooms as temporary shelters.

We expect Hurricane John to make landfall around here at around 11:00 in the morning, just a few hours from now. We have seen a bit more wind, a bit more rain, but nothing compared to what we can expect over the next few hours -- Miles.

M. O'BRIEN: Harris Whitbeck in Cabo San Lucas, thank you very much -- Soledad.

S. O'BRIEN: Well a massive manhunt is under way right now in western New York. Authorities are looking for a suspect in the shooting of two state troopers. Police say the troopers were ambushed last night with a high-powered rifle and shot. Both are said to be in critical condition this morning. The suspect, Ralph Phillips, is a convict who escaped prison in April, shot another state trooper, they believe, in June.

Polygamist leader Warren Jeffs could be transferred to Utah as early as today. Jeffs did not fight extradition during a court appearance in Las Vegas yesterday. Charges against him include two counts of rape as an accomplice for allegedly setting up marriages between underage girls and older men.

A large wildfire in Montana could be slowing down. It's burned 156,000 acres so far. It's still dangerous. People in Stillwater and Sweet Grass are still out of their homes this morning. About 35 structures have been destroyed by the fire.

And New Yorkers, need a lift? As of this hour, the tram, remember that the Roosevelt Island tram became stuck last spring, stranded dozens of people over the East River. Well that tram is now back. Service has been restored. Some new additions, too, including emergency kits and toilets. A lot of controversy over that you'll remember.

And for the folks in Eastford, Connecticut, for the first time in 130 years, you can kick off the holiday weekend with a little glass of wine. More than a decade of prohibition ended there last night. Voters approved the change. It was a little bit of a close vote, though. Think about it, 330 to 287.

MTV is showing its age. The network that just celebrated its 25th anniversary is getting kind of so-so reviews for last night's Video Music Awards. They say it was kind of a yawn. Critics say it didn't have the shock value that it's usually known for. Justin Timberlake opened with his hit "Sexy Back." There were no wardrobe malfunctions. The very funny comedian Jack Black hosted.

There was only one unscripted moment. Take a look at this, somebody crashed the acceptance speech. Did you see any of this? They crashed the acceptance speech of Panic! At the Disco. They were winning video of the year for "I Write Sins Not Tragedies." And they were sort of interrupted. But that was it. The VMAs.

M. O'BRIEN: How did they get up there, though? How the -- all the security for this thing, I mean and they...

S. O'BRIEN: They probably blended in with the guys.

M. O'BRIEN: Yes, well, you're right, they kind of look like they're with the band.

S. O'BRIEN: And they're with the band.

M. O'BRIEN: Yes.

S. O'BRIEN: Yes, kind of a yawner was...

M. O'BRIEN: Yes.

S. O'BRIEN: ... what the reviews are saying.

M. O'BRIEN: I didn't stay up for it.

S. O'BRIEN: Back in the day, that wouldn't have happened.

M. O'BRIEN: Yes.

Still to come in the program, amid the unrelenting violence in Iraq, a patch of peace, a story of success in the battle for Baghdad.

S. O'BRIEN: And rare disease danger in Massachusetts. Spraying for infected mosquitoes there failed to save one little boy's life. We'll tell you that story just ahead.

Andy Serwer with a TGIF business report.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning you guys.

Why are state and federal officials going after Exxon again 17 years after the Exxon Valdez accident? We'll tell you about that coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Happening this morning.

A state of emergency in North Carolina, Tropical Storm Ernesto made landfall there overnight. Strong wind, heavy rains continue to pummel.

Meanwhile, in the Pacific, Hurricane John, now a Category 3 storm, could hit Baja, California today. Fifteen thousand out of their homes as the storm moves up Mexico's Pacific coast.

Let's check back in with Chad Myers in the Severe Weather Center.

Hello, -- Chad.

MYERS: Good morning, Miles.

Everywhere you see dark green, that's a flood warning. Everywhere you see light green, that's a flood watch waiting to be a flood warning. And the big red box, that's actually a tornado watch box, because we are going to have, as storms come on shore this morning, the potential for some of these storms to be spinning.

Elizabeth City right up to Virginia Beach, all of the Hampton Roads area, very, very heavy rainfall, and now heavy rain almost into Virginia this morning. There were heavy rains right up into Williamsburg, up into the James and also into the Potomac later on this afternoon.

And the wind will be blowing in to the James and the Potomac as well, maybe making some of this area flood prone, because a two-to- three-foot, maybe even five-foot storm surge, a salt storm surge, as you push the water into the Chesapeake Bay today.

Here's the storm surge now for you for today. The storm came right up very, very close to Long Beach. It is now very close between about Kinston and Goldsboro in North Carolina, and it will eventually roll right over Williamsburg and right over Washington, D.C. And that's when I'm most concerned that that water could be very well on up into the Potomac and flooding parts of Alexandria and also into D.C.

Looks like most of the heavy rainfall though is south of let's say Front Royal, into the Shenandoah Valley, all the way back down into Roanoke, Richmond. And of course Raleigh-Durham, you could pick up six more inches of rainfall.

Look at some of these numbers. Surf City, North Carolina, a foot of rain. This is literally only 24 hours worth. Myrtle Beach, about 6.5 inches or so. And one more spot for you here, I think this one is Wilmington. Yes, Wilmington, a new record there, 9.64 inches of rain in 24 hours.

Now we pick up the wind blowing in from the east, gale warnings all the way from Baltimore down into Richmond, Virginia. Ernesto will be a significant storm.

Now this is John. I want you to see John. The past of couple of hours, and this is kind of a long loop, this is from yesterday. But notice, did you notice John kind of making a little left-hand turn? That could be really good news for Cabo San Lucas. If it just wobbles, just wobbles a little bit to the left and the eye misses Cabo, most of the damage will also miss Cabo. Let's cross our fingers for those folks there.

Back to you guys. S. O'BRIEN: All right, Chad, thanks.

MYERS: Sure.

S. O'BRIEN: Let's go to Iraq now. For the first time in several months, people in a once violent Baghdad suburb are lining up for medical treatment. A massive influx of troops in recent weeks is driving out the death squads there and finally helping residents heal.

CNN's Michael Holmes is live for us in Baghdad this morning.

Hey, Michael, good morning.

MICHAEL HOLMES, CNN CORRESPONDENT: Hi, good morning to you, Soledad.

That's right, those troops trying to bring down the death rate here. Three hundred Iraqis have been killed this week alone, many times that number wounded. Yet we've traveled with a U.S. Army unit trying to build trust in one of Baghdad's most violent neighborhoods, all part of Operation Together Forward.

(BEGIN VIDEOTAPE)

HOLMES (voice-over): Hamid (ph) is treated for a burn to his arm, a burn that's been untreated until now. Outside this makeshift clinic, for the first time in several months, locals in the usually violent Baghdad suburb of Gazalia (ph) line up for medical treatment, courtesy of the Iraqi and U.S. military. Until a couple of weeks ago, such a gathering in this Sunni neighborhood would likely have attracted death squads bent on killing these people and the troops who stand guard this day.

UNIDENTIFIED MALE (through translator): It's better now. Before we couldn't sleep, we were scared of the death squads that attacked us.

DR. HUY LUU, U.S. ARMY: The issue is having to feel safe to be able to travel that short distance to go to the clinic.

HOLMES: It's all part of the security crackdown known as the "Battle for Baghdad," a massive influx of troops here in recent weeks driving out death squads and uncovering arms caches like this one.

LT. COL. VANN SMILEY, U.S. ARMY: We found a variety of different weapons, ammunition, explosive devices and different tools and things used to inflict injury on both coalition forces and Iraqi security forces.

HOLMES: For now, the operation is about maintaining a presence and building trust. What officers call protect and hold.

(on camera): It's also very much about winning hearts and minds. Convincing locals like these people that it's in their own interest to reclaim their cities and resist the return of insurgents. (voice-over): The soldiers who brought us here are friendly but wary. Incidents of violence here are down 50 percent, but far from over. The day before, a kidnapping and a bomb went off. Twenty-four hours after we came here with this unit of the 123 Striker Brigade, a massive bomb hit one of their vehicles on the very road we drove along. Two soldiers were killed, others hurt.

Soon, U.S. troops will pull back, Iraqi troops will patrol. But much of the peacekeeping will be in the hands of Iraqi police and that is problematic. In this staunchly Sunni area, the predominately Shia police are feared and hated.

UNIDENTIFIED MALE (through translator): It's the police who kill us. We don't trust them.

HOLMES: Gazalia locals still live in fear and filth. Garbage- strewn streets, most shops still shattered. Here we patrol through a pool of raw sewage.

But it's the return of those death squads they fear most of all. Bringing some measure of quiet to these streets is one thing, keeping it is another.

(on camera): Do you think it will stay this way, quieter?

UNIDENTIFIED MALE: I hope so. I don't think, but I hope so.

(END VIDEOTAPE)

HOLMES: Soledad, that man is a local doctor. Trying to make people like him more hopeful about the future is the aim of that operation. A lot of work being done by that Striker Brigade who so tragically lost two of their men the day after we were there.

S. O'BRIEN: I've got to imagine that the only way to make people more optimistic is to really have good results on the ground. That's kind of the big important thing.

Michael Holmes for us this morning.

Michael, thanks for that report -- Miles.

M. O'BRIEN: Still to come, Houston has a problem.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I want to know what you all are going to do about it or do we have to take it into our own hands?

(END VIDEO CLIP)

M. O'BRIEN: A year ago the welcome mat was out, not any more. We'll tell you why so many Houston residents are upset about Katrina evacuees.

Plus, listen up, parents, a mosquito bite kills a 9-year-old boy in Massachusetts. We'll tell you how you can protect your children from the threat of what is called EEE.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back.

A look now at some of the most popular stories on CNN.com.

Tropical Storm Ernesto keeps pummeling eastern North Carolina this morning. Ernesto came on shore last night just below hurricane status but with heavy winds and rain. The storm is expected to lose strength as it heads toward Virginia.

A bartender in Hutchinson, Kansas can hardly believe her luck today. A regular customer left the employee who works at Applebee's a $10,000 tip. Yes, you did not mishear me, a $10,000 tip on a tab that was 26 bucks. The restaurant says they need to verify the charges before they confirm it.

There's Andre Agassi there. Not over for him yet, he made it into the third round of the U.S. Open. He beat Marcos Baghdatis in a five set thriller last night. The 36-year-old Agassi says he's going to retire when the Open is over. But he's still in there.

M. O'BRIEN: He is. He's a big tipper too, I think, isn't he?

S. O'BRIEN: I have never heard of him giving a $10,000. That's quite a tip.

M. O'BRIEN: What's so -- what percentage is that?

S. O'BRIEN: Get on that, Andy.

M. O'BRIEN: Andy.

SERWER: It's over 100, well over. Over 1,000.

M. O'BRIEN: All right. Yes.

It's hard to believe 17 years later they're still cleaning up the Valdez mess, but that's what we're talking about, -- Andy Serwer.

SERWER: That's what we're talking about, Miles O'Brien. And, actually, of course this is extremely controversial. Alaska and federal officials now demanding $92 million more from Exxon because of what they say is lingering oil in the Prince William Sound going back to the spill that took place from the Exxon Valdez in 1989.

1991, you may remember, there was a $900 million settlement, but in that settlement there was what was called a re-opener clause which would allow the feds and the state to come back and ask for up to $100 million more.

Now, as you might imagine, there are competing studies which show whether or not there is, one, still oil up there on the ground and, two, whether it's harmful. Exxon says of course there is no oil to speak of and it's not harmful. The state and the feds and environmentalists say well it's still there. So guess what, this one is going to court.

And, hey, did you guys notice August is over, it's September 1? I hate to break it to you.

M. O'BRIEN: We were just talking about that, it's September Fool's Day.

SERWER: Yes.

M. O'BRIEN: Somebody said it before.

SERWER: That's -- yes, that's pretty good.

So, because of that, we have some economic numbers for you for the month of August.

M. O'BRIEN: Excellent.

SERWER: Starting with autos, the auto sales numbers coming out for the month of August today. Preview seems to suggest that sales were basically flat for automakers, but Toyota gained more market share. Of course they're the new number two supplanting Ford. GM, though, some bright spots there for them, they appear to be up a bit while Ford and Chrysler lagged.

Now, what about the stock market? Well, it was a pretty good month for investors. You can see here the Dow was up 1.8 percent, and that's the best showing since April. So all we need to do is do that the rest of the year, month after month, and we'll all be happy and rich and we can call it a day.

S. O'BRIEN: If only the market listened to you, Andy.

M. O'BRIEN: Let it be.

SERWER: Yes.

M. O'BRIEN: All right, what's next?

SERWER: Coming up, someone's bought J.Lo's house and it's another very high-profile young lady with blonde hair. That's all I can say now. You're going to have to stay tuned to figure this one out.

M. O'BRIEN: It's a promiscuous girl, right?

S. O'BRIEN: High profile.

SERWER: No.

M. O'BRIEN: Not that one?

SERWER: No, not that one. M. O'BRIEN: OK. All right.

S. O'BRIEN: What did you say?

M. O'BRIEN: Promiscuous girl.

SERWER: He was talking about Nelly Furtado, I believe.

M. O'BRIEN: I was getting confused.

SERWER: You were getting -- and she does not have blonde hair.

M. O'BRIEN: I had it completely wrong.

S. O'BRIEN: Did you say promiscuous?

M. O'BRIEN: Yes, but that's a song. It's her song.

SERWER: It is a song.

S. O'BRIEN: I was like, whoa, hi.

SERWER: And it was played a lot last night on the MTV Awards.

M. O'BRIEN: I bet it was, yes.

S. O'BRIEN: OK.

M. O'BRIEN: See, that's how you knew that.

SERWER: Right.

S. O'BRIEN: Was wondering where you were going with that.

M. O'BRIEN: All right.

SERWER: Yes.

S. O'BRIEN: Trying to keep it all together here.

SERWER: Thank you, -- Soledad.

S. O'BRIEN: Thanks, Andy.

Take a look at the morning's top stories straight ahead, including rolling through North Carolina. We're talking about Ernesto making a big impact with rain and wind. We'll have live reports from two cities in North Carolina, plus the forecast for this tropical storm.

And also off Mexico's Baja, California, Hurricane John is taking aim. The Category 3, 2 storm, something like that, a live report coming up.

Stay with us, you're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Get the latest news every morning in your e-mail. Sign up for AMERICAN MORNING Quick News at CNN.com/am.

Still to come this morning, hard rain, strong winds, Ernesto is barreling along. We'll tell you what it's doing in North Carolina and where Ernesto is headed next. Chad's forecast is just ahead on this AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Happening this morning.

In western New York State, a manhunt under way for a fugitive accused of shooting state troopers. The troopers were hunting for escaped inmate Ralph "Bucky" Phillips last night. They were ambushed as they pursued him. The troopers are in critical condition.

In Lexington, Kentucky, the only survivor of Sunday's deadly Comair crash upgraded now to serious condition. The co-pilot, James Polehinke, had his third surgery yesterday. All 49 others on board the airplane died.

And firefighters in Montana are battling a huge wildfire. So far it has burned 20 homes and scorched 156,000 acres.

Good morning to you, I'm Miles O'Brien.

S. O'BRIEN: And I'm Soledad O'Brien.

Got those two big storms to tell you about this morning, Tropical Storm Ernesto on the East Coast, Hurricane John out west. Correspondents are standing by from Mexico to North Carolina. Let's begin with severe weather expert Chad Myers. He's at the CNN Center for us.

Hey, Chad. What's going on?

CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.

(WEATHER REPORT)

MYERS: Back to you guys.

S. O'BRIEN: All right, Chad. Thank you very much.

Let's take a look at what the things -- what's going on right now in North Carolina.

Gilbert Baez is with our affiliate WTVD. He's in Fayetteville this morning.

Hey, Gilbert. Good morning.

GILBERT BAEZ, REPORTER, WTVD: Hey, Soledad. We're here in Fayetteville, which is the home of the airborne, just south of Fort Bragg here. We are about an hour from where the storm -- maybe about 90 minutes. It came ashore near Wilmington, North Carolina, this morning.

This is Cross Creek. And behind me, this is normally a pretty tranquil creek. And I'm going to move back a little bit so photographer Jeff Hinkel (ph) can push in a little bit.

And you can see, we could take a kayak down this thing right now. This is one of the main tributaries that runs through Fayetteville, and it feeds into the Cape Fear river here.

We've got some video that we shot a little bit earlier that we want to show you right now. The wind and rain that did come down here overnight was pretty good, but not a Category 1 hurricane by any means. It was a tropical storm, and we were able to get the wind through here without too much damage.

We did have some power lines down. We did have a little bit of wind damage. Not much in the way of flooding.

So, for the most part, we seem to have dodged the bullet. So that's the main thing for us here in Fayetteville, North Carolina. We were able to get through the storm without too much of a problem -- Soledad.

S. O'BRIEN: Well, and tell me a little about what's -- what's behind you there.

BAEZ: Yes, this is Cross Creek. And, again, it's moving pretty good right now.

Normally, this thing is a pretty tranquil creek, but because of all the rain that we had for not only this storm, for Ernesto, but other rain that we had for the past couple of days, it's flowing pretty good right now.

Got a kayak? Come join me. We'll take you down stream and head into the Cape Fear River.

S. O'BRIEN: Yes, no interest in that. In fact, you're making me nervous on that little overhang, is what I was going to tell you.

BAEZ: I just -- I just had a little opossum come run by me here, so let's wrap this up. I'm going to be under attack soon, I know.

S. O'BRIEN: It's a deal. It's a deal.

Gilbert Baez this morning. He's with our affiliate WTVD.

Thanks, Gilbert.

CNN's Kathleen Koch is live for us in Raleigh, North Carolina. Let's take look at what's happening there.

Hey, Kathleen. Good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Soledad.

You know, they do take inland flooding from hurricanes here in the Raleigh-Durham area very seriously. It was just back in 1999 that they got 22 inches of rain in less than eight hours. That was during Hurricane Floyd. Luckily, nothing like that today here.

We have had roughly an inch and a half of rain, have had some wind gusts of 30 miles an hour and higher. And those have brought down a lot of trees, a lot of power lines.

Still some 48,000 residents in North Carolina without power. Power crews working as fast as they can to try to restore power.

A lot of flashflood watches and warnings out around the area. Officials very concerned that as day breaks people will get out there on the roads, become trapped. So there are some 25 swift water rescue teams that are standing by at ready just incase. The governor has also put on additional members of the National Guard, additional state troopers to join in any rescues.

Lots of schools, though, have shut down in the state just to keep more buses, more vehicles off the road. A lot of delays as well, two two-hour delays. But they have been in a bit of a drought here in the Raleigh-Durham area. So perhaps what this will give them right now is just simply some much needed rain.

Back to you.

S. O'BRIEN: Kathleen Koch for us this morning.

Thanks, Kathleen -- Miles.

M. O'BRIEN: Let's move to the Pacific now. Hurricane John up to Category 3 status. Sustained winds of about 115 miles an hour. For thousands of tourists along the Mexican coast, the Baja Peninsula, not the vacation they bargained for at all.

CNN's Harris Whitbeck live now from Cabo San Lucas -- Harris.

HARRIS WHITBECK, CNN CORRESPONDENT: Hello, Miles.

Between 7,000 and 8,000 tourists in the area of Los Cabos, Cabos San Lucas, and San Jose del Cabo. Most of them holed up in big resort hotels which have contingency plans for this type situation.

The hotel where we're working out of, for example, has started to evacuate its guests to a ballroom which they believe is the safest place to be. Again, the big concern here is the possibility of lots of rain.

Hurricane John might bring up to 18 inches of rain to the area around here. This area is low-lying. It's a desert area. Lots of washes that fill up with water quite quickly and basically would cut off a lot of the roads that connect the different towns around here. In terms of local residents, 15,000 local residents in the area have been ordered to evacuate to schools, public schools located on higher ground. The Mexican army is in charge of those evacuations and running those shelters, and the Mexican army has the right to force people into those shelters if they refuse to leave their homes -- Miles.

M. O'BRIEN: Harris Whitbeck in Cabo San Lucas.

Thank you very much.

Happening "In America," in Georgia, a big crystal meth bust. Take a look at this.

It's about 340 pounds of methamphetamines. Police found it in Gainesville. That's northeast Georgia. They say it is a record seizure. Two men now in custody, two others on the run.

A little less frustration in store for Big Dig motorists. Massachusetts Governor Mitt Romney expected to announce some progress today. The news, temporary support structures added. And that means an eastbound tunnel connecting motorist to Logan Airport can reopen, possibly this weekend. You'll recall a woman was crushed by ceiling panels in the Big Dig tunnel last month.

In Ohio, a voting rights issue heating up. Activists have filed a civil rights lawsuit against the Ohio secretary of state, Ken Blackwell. Also a Republican candidate for governor.

It claims Blackwell deprived blacks of their voting rights during the 2004 presidential election. Activists don't want him overseeing November's election. Blackwell calls the lawsuit frivolous and political.

New Yorkers need a lift? Well, as of this hour, the tram that became stuck last spring and stranded dozens over the East River is back. Service restored. Some new additions, including some emergency kits, and even some toilets.

Just incase, I guess.

What's the biggest tip you ever left on a $26 tab? Quickly. Quickly.

S. O'BRIEN: I would say $10 max because the kids make a mess.

M. O'BRIEN: Yes, $10, $5 -- I would do $5. But then $5 for the kids.

S. O'BRIEN: Cheap. Cheap.

M. O'BRIEN: Yes. I'm a tight wad.

In Hutchinson, Kansas, listen to this, $10,000 -- that's 10 large (ph) -- $10,000 tip. A 35-year-old Applebee's bartender says a man known for leaving generous tips left her the big one. Cindy Kienow says she has no idea what she did to deserve it other than providing top-notch service.

And we're going to talk to her in our 8:00 hour and see what she's going to do with all the cash.

S. O'BRIEN: Coming up next, Kofi Annan's been busy of late. He's now getting ready to go to Tehran. Iran's defiance of the Security Council's nuclear deadline, though, may not be his most pressing concern.

We'll explain ahead.

M. O'BRIEN: And a rare disease that strikes horses and can be transmitted via mosquitoes, now responsible for the death of a Massachusetts boy. We're going to give you some tips for parents here on how you can keep your kids safe.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Here's a look now at stories that CNN correspondents around the world are covering today.

(BEGIN VIDEOTAPE)

ANTHONY MILLS, CNN INTERNATIONAL CORRESPONDENT: I'm Anthony Mills in Damascus, where United Nations Secretary-General Kofi Annan is meeting Syrian President Bashar al-Assad to strengthen Lebanon's fragile peace. Among the topics being discussed, the flow of weapons from Syria to Hezbollah.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: I'm Michael Holmes in Baghdad.

Violence continues here. Three hundred civilians killed this week so far.

Yesterday, Thursday, rockets and explosions hit five Shia neighborhoods in Baghdad during the president's speech. Forty-four killed, 255 wounded. All of those targets residential buildings.

(END VIDEOTAPE)

S. O'BRIEN: In Beslan, Russia, memorial services today on this, the second anniversary of that terrible terror attack -- it was the worst terror attack, actually, in Russian history. Three hundred and thirty-three people died when Islamic militants took a school, and the children who were in the school, and their parents who were there, as well, took them all hostage. Most of the victims, in fact, were children, and most of them died during that horribly chaotic rescue effort.

Oh, gosh, that was one of the most heartbreaking stories to talk about.

If you want more information on this story or of any of our top stories, you can go right to our Web site, CNN.com -- Miles.

M. O'BRIEN: Still to come on AMERICAN MORNING, you want to buy a house? Well, the market is cooling. That means the prices are low. And get this, mortgage rates are going down. And have been steadily. So now is the time to buy.

Want to buy mine?

S. O'BRIEN: Maybe it's not cooling off. Another story this morning, a big superstar buys the house of another big superstar. Fifteen million dollars changes hands.

We'll give you all the details just ahead.

(COMMERCIAL BREAK)

S. O'BRIEN: A 9-year-old boy in southeastern Massachusetts has died from Eastern Equine Encephalitis, or Triple-E, as it's also known. Hundreds of people attended a prayer service in Middleborough, Massachusetts, last night for little John Fontaine. The service included dozens of his football teammates. All these little kids were there.

Reporter Linda Ergas from our affiliate WHDH in Boston has more.

(BEGIN VIDEOTAPE)

LINDA ERGAS, REPORTER, WHDH (voice over): Little Johnny Fontaine started feeling sick on August 18th after football practice. That was a Friday, and by Sunday he was in the hospital.

UNIDENTIFIED FEMALE: It was awful. Just awful. I couldn't even imagine. Can't even imagine what the parents are going through.

ERGAS: This was Johnny's second year playing football with the Mitchell Memorial Club (ph). He was a Cougar, and parents and teammates are speechless. They were told at the 4:00 practice.

UNIDENTIFIED MALE: It's unbelievable that -- that a mosquito could take somebody down like that. And just a few weeks ago, he's running around the field like the rest of the kids.

ERGAS: The co-chair of the football club saying the fields in Middleborough are sprayed constantly. On top of that, the state has sprayed twice over the area. No question, Johnny's death has parents feeling very uneasy.

UNIDENTIFIED FEMALE: It's pretty sad. Your kids can't play outside, and you've got to worry about them being stung by a mosquito and winding up in a coma in Boston. ERGAS: For those who knew him, Johnny was an unforgettable little boy.

UNIDENTIFIED MALE: If you look at him, his freckles -- his freckles, looking out from that helmet with the dirt on the face. I mean, those types of things you don't forget.

(END VIDEOTAPE)

S. O'BRIEN: Oh, what a sad story. That was Linda Ergas, our -- from our affiliate, WHDH, reporting.

Middleborough was among the communities in southeast Massachusetts that, as they said, had two rounds of spraying to try to kill mosquitoes. And encephalitis is spread to humans through a mosquito bite.

You know, some symptoms include a high fever, headache, stiff neck, fatigue, all the things that you might think you're just coming down with a flu or some kind of cold. It could appear two to 10 days after you are infected.

And then, of course, as apparently happened in this case, this little boy had brain swelling, and then you could have a coma and brain damage as well. Of course, children and the elderly, as always, are, in these kinds, are most at risk. And three out of every 10 cases is fatal. I mean, 30 percent.

That's just horrible.

M. O'BRIEN: It would be easy to overlook those symptoms and dismiss it.

S. O'BRIEN: Well, you just think, you know, because you sort of wait it out for two days. I mean, it's -- you know, apparently the little boy just had a high fever, 104. The mom brought him the next day to the doctor. And by Sunday, he had died.

It's horrible.

Anyway, the CDC says no human vaccine is currently licensed. And it's unlikely that there's going to be one in the foreseeable future. So it's really terrifying, I think, for parents.

M. O'BRIEN: Up next on the program, Andy "Minding Your Business."

Hello, Andy.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Hello, Miles.

There's no doubt about it, Gwen Stefani has gone house shopping. How much money did she plunk down for this Beverly Hills mansion? We'll tell you about it coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK) S. O'BRIEN: Here's a look at some of the stories we're working on for you this morning.

Iran is not budging on its nuclear program. Now on the verge of possible economic sanctions.

What do people there think? We're live in Tehran this morning.

A possible new weapon in the fight against cancer.

Another twist in one of the most shocking stories following Hurricane Katrina. Medical workers killing patients is what's alleged.

Also, one of the biggest drug busts in U.S. history. Two fugitives are still on the run.

And a return of the automat. For just a few quarters, that burger could be yours. Yummy or ew?

M. O'BRIEN: Oh, yes.

S. O'BRIEN: We'll talk about it ahead on AMERICAN MORNING.

M. O'BRIEN: You get what you pay for.

S. O'BRIEN: Yes, you do.

It's time to get right to the forecast. Chad's got that at the CNN Center.

Chad, burger from a vending machine? Mmm or ick?

MYERS: Sure. Why not? Sure. It's probably half soy anyway. I mea, what can go wrong?

M. O'BRIEN: Lots.

MYERS: Lots.

Good morning, everybody.

(WEATHER REPORT)

MYERS: The next hour of Andy Serwer starts right now -- Miles.

S. O'BRIEN: A whole hour devoted to Andy.

M. O'BRIEN: An hour of Andy Serwer.

SERWER: Yes. It's about time.

M. O'BRIEN: Now, that's some television. That's some fine programming.

You paid him to say that, didn't you? SERWER: I did.

M. O'BRIEN: Gwen Stefani, rich girl.

SERWER: Yes, no doubt. Yes, no doubt about it, she's a rich girl and she's got some money to buy a house.

In fact, we're going to be talking about housing here for just a second or two.

The sound you hear is more air being let out of the housing bubble. Mortgage rates down for the sixth week in a row, 30-year fixed at 6.44 percent.

M. O'BRIEN: Wait a minute. Wait a minute. That could be -- that could pump up the bubble if mortgage rates go down.

SERWER: No.

M. O'BRIEN: Why not? That would make people want to buy, right?

SERWER: It's a sign there's less demand for money because interest rates are (ph) the cost of money, and so they're going down. But really, Miles, you can see they're still up from a year ago.

So this may just be a short-term correction and the housing market may perk right back up again. I know there's a little self- interest there.

Now, someone who doesn't care about mortgage rates at all because she probably paid cash, Gwen Stefani bought a new home, according to "The Wall Street Journal," in Beverly Hills for $15.5 million. And she bought a home that was previously owned by J. Lo.

It's just a small world, isn't it? At that altitude, I guess.

M. O'BRIEN: I guess so.

SERWER: What does $15.5 -- that's a nice hat -- $15.5 million buy in Beverly Hills? Ten thousand square feet, only four bedrooms.

Can you imagine paying $15...

S. O'BRIEN: That's a big living room.

SERWER: Right. Now, it does have your tennis court, your pool, your basketball court, Soledad.

S. O'BRIEN: Oh, yes. Yes.

M. O'BRIEN: Screening room, all that stuff.

SERWER: Screening room, exactly.

M. O'BRIEN: Workout room, all that stuff, yes. SERWER: So I don't think she's really going to be able to sing "If I Were a Rich Girl" anymore because the word is out. I mean, you're paying $15.5 million, you is a rich girl.

M. O'BRIEN: Yes.

SERWER: You are a rich girl. There's a grammatical situation going on there.

M. O'BRIEN: Yes, there is. There was.

SERWER: And it's my problem. Yes.

Next hour we're going to be talking about a new controversy surrounding alcohol and cigarette companies.

And, in fact, the next hour of AMERICAN MORNING begins right now.

S. O'BRIEN: Thank you, Andy.

Ernesto's what we're talking about. Overnight, it dumps lots of rain on North Carolina. Washington, D.C., too, could see major flooding.

What else could be hit? We'll have critical flood warnings just ahead.

M. O'BRIEN: And Hurricane John now Category 3, threatening the Pacific coast. Baja, California, in its sights.

We'll check in with our severe weather expert, Chad Myers.

S. O'BRIEN: And deadly melanoma skin cancer kills thousands of Americans each year. This morning there's a new study that's bringing some hope.

M. O'BRIEN: Hungry? What's old is new again. The automat is back in style, or so they say. It's kind of a low-tech comeback.

S. O'BRIEN: And some people said last night's MTV Music Video Awards kind of a snooze. You know, usually they're known for high drama. Not this year.

We'll show you what happened. That's ahead this morning on this AMERICAN MORNING.

And welcome back, everybody. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien.

Thanks for being with us.

From Atlantic to Pacific, a swirl of high winds and high water. Tropical Storm Ernesto made landfall in North Carolina overnight.

CNN's Kathleen Koch live in Raleigh. Harris Whitbeck in Cabo San Lucas, Mexico, where big John is headed. That's a hurricane that is now Category 3.

And, of course, our severe weather expert, Chad Myers, at the CNN hurricane headquarters in Atlanta.

Let's begin with Kathleen.

Kathleen, how are things going there?

KOCH: Miles, actually, when you look around here right now in Raleigh, Durham, we are still feeling the bands, the outer bands of Ernesto whipping through this area. We haven't had the drenching, flooding rains that they've had down to the south. Gotten about an inch and a half of rain here since the storm came in.

But we have had some gusting winds. And we've been still feeling those in the last few minutes, 30 miles an hour and higher. And those have brought down a lot of trees, a lot of power lines.

The number of residents in the state now without power nearly 70,000. So crews are working really hard in the morning hours to try to restore that.

But, again, as I mentioned, when the storm came in down on the coast, an area of Long Beach, right around midnight, much higher winds, sustained 65-mile-per-hour winds, causing a good bit of flooding.

A lot of rain also in Wilmington, North Carolina. A record eight inches there.

The Coast Guard shut down ports up and down the coast of North Carolina as a precaution. Obviously not wanting to take and chances. And also, in some of the counties along the coast, they went door to door, warning residents in low-lying flood-prone areas to get out, to head to shelters.

Now the flash flood watch that we had here in the Raleigh-Durham area early this morning has been canceled. They're moving it sort of further north, further to the east, following Ernesto. But again, they still have 25 swift water rescue teams on standby because they are worried that as people get up, get out on the roads this morning, that they could get onto some flood prone roads, some flooded areas and they could get into some sticky situations.

The governor's put extra members of the National Guard on standby. Also extra state troopers. And the schools, many of them throughout the state, have canceled classes for the entire day or delayed them just to keep, again, more vehicles off the roads and more people safe in their homes.

Miles.

MILES O'BRIEN, CNN ANCHOR: Kathleen Koch in Raleigh, thank you very much. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com