Return to Transcripts main page

American Morning

Peru Earthquake; Stocks Plunge; Erin Drenches Texas; Homegrown Terror Threat?; Remembering The King

Aired August 16, 2007 - 06:00   ET

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

KIRAN CHETRY, CNN ANCHOR: Breaking news. Shock wave. The number of dead jumps in Peru from a powerful earthquake, shaking for two whole minutes.
Plus, Asian markets rock to a dramatic, new low overnight.

And your hurricane headquarters. Tropical Storm Dean whips up to hurricane strength in the last hour, while Erin closes in on Texas.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We've had an unusually large amount of rain. We don't need any more.

(END VIDEO CLIP)

CHETRY: Live from the Gulf Coast with extreme weather hitting right now, on this AMERICAN MORNING.

And welcome. Glad you're with us. It's Thursday, August 16th. I'm Kiran Chetry.

ROB MARCIANO, CNN ANCHOR: John Roberts is off again. I'm Rob Marciano.

We are watching a bunch of breaking news from all over the world. We now have a hurricane in the Atlantic, the markets are down again and that devastating earthquake in Peru.

CHETRY: And we just got confirmation seconds before we went to air that there is a new number of dead. A death toll that is much higher than they originally thought. It's 6:00 a.m. on the East Coast and 5:00 a.m. in Peru. A 7.9 magnitude earthquake hit there last night. It happened about 90 miles from the capital city of Lima. We've seen aftershocks rippling all throughout the night. Cities to the south of Lima also reporting devastating numbers. Peru's civil defense agency now saying at least 330 people were killed. And as I said, we just got confirmation of that number, up to 337 now, with more than 1,000 others hurt. The quake knocked down buildings, crushed homes. It also generated a minor tsunami. Terry Wade is with Reuters in Peru and he joins us on the phone from Lima.

Terry, tell us what the scene is like there.

TERRY WADE, REUTERS: In outlying districts of the city, people are, you know, on the streets. Many of them are unwilling to go back to their homes. And then south of the city, the damage was quite a bit worse. A major highway that runs along the coast was damaged and traffic is backed up in both directions. And rescuers are having difficulty getting to the hardest hit areas.

CHETRY: Terry, it seems like we're having a little bit of trouble with your audio. We're going to try to check back with you in a moment to get more from the scene.

But, meanwhile, let's go to our Alina Cho. She's been following the latest developments on the Peru earthquake from our news room.

Hi, Alina.

ALINA CHO, CNN CORRESPONDENT: Hi there, Kiran.

You know part of the reason why it's still unclear how many people actually died in this massive earthquake is that it happened in a coastal areas. Rescuers are having a really tough time getting access. Roads have been blocked by fallen boulders in some cases. You heard just a moment ago that a major highway was damaged, and that is making the search for survivors extremely difficult.

The situation very fluid. But as it stands now, we're just getting word from civil defense officials in Peru, reporting that 337 people are dead at the very least and more than 1,000, 1,350 to be exact, injured in this 7.9 magnitude quake.

It happened at 6:40 p.m. local time. The quake was followed by several strong aftershocks. And it also triggered a brief tsunami warning for much of the coast of South America and as far north as Mexico. That warning, we should mention, is no longer in effect.

The earthquake lasted two minutes, which felt like an eternity for the people who felt it.

(BEGIN VIDEO CLIP)

FERNANDO CALDERON, AMERICAN VISITING PERU: For two consecutive minutes, the ground was just shaking and finally this big shake came and everybody -- it was chaos. Everybody started crying. Kids -- everybody started crying. Everybody started running like towards like an empty space. Everybody was afraid that the buildings were going to collapse.

(END VIDEO CLIP)

CHO: Geographically, the Andes Mountains cut right through Peru and there are many fault lines. They've had several earthquakes in the last several years, including in last massive earthquake in September of 2005 which killed at least four people.

Now just to put this into perspective. The 1994 Northridge quake near Los Angeles killed more than 50 people, did more than $12 billion in damage. That was a 6.7 magnitude quake.

And in Peru this morning, there is a state of emergency, Kiran, and the search for survivors, of course, continues. We will be updating you throughout the morning.

Kiran.

CHETRY: Alina, thank you so much.

Also coming up in just a few minutes, we're going to be talking with Dave Applegate of the U.S. geological survey for more on the earthquake.

MARCIANO: Now to breaking news in the markets. Asian stocks are having their worst day since the attacks of September 11th. It follows another triple digit plunge on Wall Street. That sent the Dow below the 13,000 mark, wiping out all the gains this year. Ali Velshi is watching all of this and what it means for the Dow later on today.

Good morning, Ali.

ALI VELSHI, CNN CORRESPONDENT: Good morning, Rob.

I'm actually having trouble keeping up with the speed of what's going on in European markets right now. So I'm just making notes on them as I'm going along.

Another rough night in Asian markets. The Nikkei down another 2 percent. Hong Kong down 3.3 percent. Other Asian markets down more than 6 or 7 percent.

And that, of course, has tracked right into Europe. And right now we're looking at FTSE in London, the FTSE 100, down 2.8 percent. The Zetra (ph) in Frankfort down 2.5 percent. Paris is down almost 3 percent.

So this is a rough night and a rough morning. We're expecting that to trigger more selling in the morning. Dow futures are indicating another steep loss. At this point, it's like looking triple digits right at the opening bell.

We're going to be tracking this all morning. But that is what your Dow looks like year-to-date. It is up 3.2 percent after 170 point loss again yesterday. The Nasdaq had its biggest loss in a while. Both the Dow and the Nasdaq are at their lowest levels in four months.

But look at that S&P 500. For all of those of you who have had diversified portfolios in your 401(k), you are now down on the year from the beginning of the year. The S&P has wiped out all its gains from January 1st.

We'll continue to follow this as the morning progresses and tell you how your markets and your investments are expected to do today.

Rob.

MARCIANO: Money managers and traders will be busy, no doubt.

Thanks, Ali. VELSHI: Yes.

MARCIANO: Kiran.

CHETRY: Well, CNN is your hurricane headquarters and we're watching two big storms right now. Within the last hour, Tropical Storm Dean grew to hurricane strength in the Atlantic. Also Tropical Storm Erin bearing down on Texas. This morning, heavy rain coming down exactly where they don't need it, swamping areas that have already suffered all summer long.

Sean Callebs is in Corpus Christi, Texas, and Bonnie Schneider is in the Severe Weather Center in Atlanta with the latest.

And we begin with Sean who's seeing some of the worst of this tropical storm.

Hi, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Kiran. Well, we expect the worst of this storm to really begin smacking this section of the Texas coast in about three or so hours. If you look right now, the rain is only spitting very slightly. We're getting a very light breeze blowing through here, as well. But it has been worse this morning. And we certainly know that it's going to get worse as the hours move on.

And you're exactly right when you say, there are a lot of places in the country that need this significant rainfall. Texas is not one of them. This is a state that has been saturated since March and they could get as much as three to five inches of rain here on the coast.

It could go up to six to eight inches as it moves further inland. It has got the attention of the state's governor. He has already mobilized emergency crews and National Guard troops to be down in this area. They certainly expect flash flooding.

If there is a hint of good news in all this, the people on the coast, used to this kind of weather. And, Kiran, a lot of people are kind of taking this in stride. They simply hope the this storm moves through quickly and doesn't dump the kind of significant rainfall that people expect it will.

Kiran.

CHETRY: All right, Sean Callebs, we'll check in with you throughout the morning. Thanks so much.

Also to Bonnie Schneider now, who's watching both Erin and now Hurricane Dean.

And, Bonnie, even with Erin, even if it's a tropical storm, I mean it's the rainfall that's really going to do the damage for those parts of coastal Texas.

(WEATHER REPORT) MARCIANO: Kiran, other headlines new this morning.

The first hint of hope for the six trapped miners in Utah. Rescuers with sophisticated listening equipment say they heard noise. One report says it lasted five minutes. And a mine executive says new video shows an undamaged shaft and curtain where the miners could have taken cover.

(BEGIN VIDEO CLIP)

BOB MURRAY, PRES./CEO, MURRAY ENERGY CORP.: The sounds lasted about five minutes. And they were at a frequency of about a second and a half. It could be wrapping, but, sir, we really don't know. And I wouldn't read too much into it yet. But it is hope. It is hope.

(END VIDEO CLIP)

MARCIANO: It wasn't much, but it was enough to convince crews to drill a fourth hole in a different location.

And new information this morning in the case of missing Madeleine McCann. British scientists say traces of blood found in the hotel room where the four-year-old was taken from was not hers. According to the test, the blood belongs to a white European male. Portuguese police say they believe Madeleine was murdered the night she disappeared in May.

And we could learn within hours if NASA will order a risky space walk to repair the shuttle Endeavour. Right now engineers are wrapping up tests to determine if the crew can return home without fixing a gouge in the shuttle's tiles. NASA says the problem is not as bad as what caused the Columbia disaster.

CHETRY: A reverse decision topping your "Quick Hits" now. A pedestrian bridge near the site of the I-35W bridge collapse in Minneapolis will now remain closed. It was briefly reopened yesterday but recovery workers complained that the public view was disrespectful for the victims' families.

Opening statements today in the St. Rita's nursing home case. The owners are charged with 35 counts of negligent homicide and 24 counts of cruelty to the elderly and infirmed for ignoring warnings to evacuate their patients before Hurricane Katrina.

Well, we spend a lot of time looking overseas for threats to America, but could the biggest threat be right here at home? There is a new report on the potential for homegrown terror next on AMERICAN MORNING.

We're also tracking the latest news out of Peru. The death toll now at 337 after a devastating quake hits that country.

(COMMERCIAL BREAK)

CHETRY: Welcome back to AMERICAN MORNING. Here are some of the best shots of the morning. Your "Quick Hits" now.

A sink hole nearly swallowing a minister's car. He was parked in a garage that gave way in Tyler, Texas. Despite the way that that car looks, he got out unhurt.

A fireball on Interstate 70 near Grand Junction, Colorado. An 18 wheeler crashed into an overpass. The driver was killed. There are worries this morning that the bridge may collapse.

And thick black smoke and flames rising over the forest in southern Turkey. A local leader says that the wildfires are growing and moving closer to nearby villages.

MARCIANO: The threat of a homegrown terrorist attack could now be greater than an attack from a terrorist organization overseas. That is the conclusion of a new report by the New York City Police Department. Kelli Arena is in our Washington bureau with more on this morning's security watch.

Hi, Kelli.

KELLI ARENA, CNN CORRESPONDENT: Hi there, Rob.

You know, homegrown terror is especially worrisome. That's because, in most cases, the terrorists go unnoticed. They're part of the community they live in. They share the customs. And it's also very hard to get any intelligence on a homegrown plot.

Now we've seen a few cases of it here already. There was the alleged plot against Ft. Dix. Another in Los Angeles in which some men were allegedly going to blow up a military recruiting center, some synagogues. And, luckily, those cases have been far and few between. And many experts say that Muslims here are less prone to becoming radicalized than in London, for example, where they have some problems integrating into the society.

Still, the FBI and other law enforcement agencies know that the U.S. is not immune. They're doing what they can to try to get ahead of the threat. There's been a real concerted effort to reach out to Muslim in Arab communities. In fact, just yesterday, Rob, a group of young Muslims visited the FBI academy at Quantico. It was all part of an outreach program toward Muslim youth.

MARCIANO: Well, you talk about youth. When it comes to the young or the youth being radicalized, what are officials more concerned about?

ARENA: The Internet, you know, over and above. It's a great tool for spreading radical propaganda. The FBI is very concerned about that.

But, you know, Rob, there's also some concern about something that's harder to measure. Just living in the post 9/11 world, they say it could breed some resentment. You know, we've seen Muslims get a lot more attention from law enforcement. There have been hate crimes against young people who wear religious head dresses, for example. Now that doesn't mean, of course, that anyone subjected to that becomes violent. But officials are aware of it, say that it could eventually become a problem.

MARCIANO: And the potential for racism, racial profiling also could be an issue, as well. I think we're going to have a guest next hour to talk more about that.

Kelli Arena live from Washington, D.C. Thanks, Kelli.

ARENA: You're welcome.

CHETRY: Venezuelan President Hugo Chavez topping our "Quick Hits" now. He's asked the national assembly to end term limits and to extend by one year the time that a president can serve in office. Chavez says it's not a step to becoming a dictator.

The passport gridlock now has a price tag, nearly a billion dollars. New rules requiring passports for flights to Canada, Mexico and the Caribbean caused a surge in passport applications. There's extra staff working overtime to try to clear it up. A major backlog that we've been talking about for months. And a costs three times what the State Department estimated.

A major earthquake rocks Peru. The latest number is 337 people killed and more than 1,000 injured. We're going to have the latest on that story coming up.

And a quest to find the spirit of Elvis in America. On the 30th anniversary of his death, devoted still come. Is our Richard Quest one of them? Live from Graceland this morning.

RICHARD QUEST, CNN CORRESPONDENT: Good morning to you.

You do not need to look very far to see and find the spirit. They are behind me. The thousands of people who are waiting in turn to pay their respects at the grave site. The 30th anniversary of Elvis' death. AMERICAN MORNING live at Graceland in just a moment.

(COMMERCIAL BREAK)

MARCIANO: We are following breaking news this morning out of Peru. A 7.9 magnitude earthquake hit last night about 90 miles from the capital city of Lima. At least 337 people were killed and more than 1,300 others were injured.

And we're also following Tropical Storm Erin. It's drenching the Texas Gulf Coast right now, bringing more rain to a part of the country that's seen extensive flooding all summer long.

And it first Atlantic hurricane of the season. Hurricane Dean is building strength. Hurricane warnings and watches are up in the Caribbean right now as the storm heads to the islands, currently on a path towards Central America.

CHETRY: Well, it was 30 years ago today Elvis Presley died. But for the past 24-hours, thousands of his fans have made it known that their devotion never will. They're braving nearly 100 degree heat to wait outside Graceland in Memphis, all so that they can file past Elvis' grave and pay their respects. Last night, CNN's Larry King took you inside of Graceland with Elvis' widow, Priscilla Presley. She gave him a guided tour.

(BEGIN VIDEO CLIP)

LARRY KING, "LARRY KING LIVE": Why is this part of Graceland private, up those stairs?

PRISCILLA PRESLEY: This is Elvis' private quarters going up the staircase to his room and his private office. Lisa's bedroom. And his -- what used to be a bedroom but it turned into his own personal walk-in closet and that's . . .

KING: And that's never open to . . .

PRESLEY: No. Never open to the public. No. We're keeping it very private because that was his private . . .

KING: And he died over here, right? And the bathroom was above this part of the . . .

PRESLEY: That's right. That's right. So it will remain very private because that was his private sanctuary. This is where he wanted to go to be left alone.

KING: Does Lisa ever have a desire to go up?

PRESLEY: Oh, Lisa goes up every once in a while.

KING: Oh, she goes up.

PRESLEY: We -- yes, oh, yes, the family, you know, we go up. But it's really not open at all to the public. And it's just sacred and that's how we want to keep it.

(END VIDEO CLIP)

CHETRY: Well, the faithful at Graceland all week long despite the intense heat.

Rob, you were among them at one point.

MARCIANO: Yes, I've been there a couple of times. It's something every, you know, American should do just to pass through that part of Tennessee, Memphis, a beautiful spot. And a lot of history there for sure.

CHETRY: Something every American should do. But it is something every Brit should do? Well, CNN's own Richard Quest gets a view of Elvis mania as well.

Hi, Richard.

QUEST: Good morning. Rob's already managed to put his big size 12s in it and it's not even 20 past 6:00 in the morning. Good morning to you, Rob.

Never mind your every American. I can tell you something. That in this crowd behind me, there are people from just about every corner of the world. I've talked to people who have made the journey from Australia and not for the first time. From Spain, from France, from Germany, from the U.K. and, of course, from Japan. And the reason, of course, is the 30th anniversary.

They normally get tens of thousands of people here at Graceland to remember the day that Elvis died, but this year there were 75,000 people it's estimated who were waiting. And they stretch way back into the streets beyond. As the night has worn on, that crowd has gotten much, much smaller. There's now probably only a few thousand people waiting to file in.

I can tell you, because I've asked, it's taking roughly four to six hours from the moment they get into the huddle area just outside the gates, to when they can come in, file up, and make their way up to the grave site. For the few short seconds that they're allowed to walk past the grave and then leave.

And, interestingly, you know that phrase, Rob, that wonderful phrase, it's always darkest before the dawn? That is certainly also true here this morning because last night it was a mood of celebration perhaps because these people are exhausted, there is now much more a feeling of tiredness, somber, as people wait to pay their final respects.

MARCIANO: It's also a lot cool before dawn. It's been really hot there, Richard. And, by the way, I'm a 13. Good guess on the 12.

What's been your reaction as a Brit to Graceland? What have you seen? What's your feeling on it?

QUEST: Well, I mean, I think the thing that surprises you when you see Graceland is it's not very big. The actual mansion itself is relatively small. It's going something like 23 or 30 odd rooms in it. But it's very low some (ph). It is not your atypical (ph) rock star mansion with, you know, (INAUDIBLE) towers and wings and this, that and the other. It's very quiet. It's very modest.

And also listening to what Priscilla was saying on Larry King a few moments ago. They have this constant battle between the half a million visitors a year who come here. And, frankly, they come to see the grave site, but they want to get as close as is possible to something that was Elvis. Anything. Whatever it is, they want to be in the room where Elvis was. And the family, of course, has to keep a large element of that private.

But ultimately, what I think you're seeing from these people here today, guys, is just a feeling of wanting to be here. These were the fans who loved Elvis more than just about everything else. And they will go to the ends of the earth to be part of it today.

CHETRY: All right, Richard, full disclosure here, Elvis fan yourself, is "Love Me Tender" on your iPod?

QUEST: Love me tender, love me true, if you're really unlucky, I'll sing more song for you.

MARCIANO: Well done on the fly. That's why they pay you the big bucks. I'm not sure you're going to make it as an impersonator or an Elvis artist, but we appreciate it.

CHETRY: But "American Idol" could call some day for Richard.

MARCIANO: Good stuff, as always, Richard. Thank you very much.

CHETRY: Here's a look at another story coming up later in our show that you can't miss. Sometimes you wish the video cameras were not rolling. That was certainly the case for this flight attendant drunk on the job and the entire thing was caught on tape. Let's listen to a little bit.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Do you require immediate medical assistance?

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED FEMALE: What for?

UNIDENTIFIED FEMALE: Because I'm thinking about punching (ph) people.

(END VIDEO CLIP)

MARCIANO: Well, that's not exactly what the big airlines are looking for when they profile people to be flight attendants -- they want to punch people. But apparently this young lady had a few to drink. But shockingly enough, her blood alcohol content was, well, it's not what you think. So we'll talk more about that and other stories when AMERICAN MORNING returns.

(COMMERCIAL BREAK)

MARCIANO: Good morning, Orlando. Up and adam. News 13, our affiliate out there. You'll see temperatures, I'm sure, that will get at least into the 90s. It's Thursday, August 16th. Good morning. John Roberts is off. I'm Rob Marciano.

CHETRY: And I'm Kiran Chetry.

We are following lots of breaking news this morning, including a massive earthquake in Peru. It measured 7.9 magnitude. Three hundred thirty-seven people now confirmed killed. That quake hit the coastal area the hardest, about 90 miles from the capital city of Lima. Several strong after shocks were also felt after the quake. Alina Cho has been following the latest for us on this earthquake and she joins us now with more.

Hi, Alina.

CHO: Hi there, Kiran.

You know the situation is very fluid right now, but the latest information we have is that civil defense officials in Peru are reporting at least 337 dead and more than 1,300 injured in last night's 7.9 magnitude quake. It happened in a coastal area making the search for survivors difficult very difficult. Part of the reason for that is because a major highway was damaged and some roads have been blocked by fallen boulders. Rescuers have not been able to gain access to some of the hardest hit areas.

It happened about 6:40 p.m. local time. The quake was followed by several after-shocks and it triggered a tsunami warning for Peru, Chili, Ecuador and Columbia. Felt as far north as Mexico. That warning is no longer in effect. The earthquake lasted just longer than two minutes, but felt like an eternity for the people who experienced it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED QUAKE SURVIVOR (through translator): There was an intense long earthquake. I felt it even though I was in a taxi. The car was vibrating and you could see all the buildings and the glass here vibrating. People were running. All the passers-by were grabbing their mobile phones. They wanted to call home, but they could not.

(END VIDEO CLIP)

CHO: Many witnesses reported people running into the streets. Geographical, we should tell you that the Andes Mountains cut right through Peru and along several fault lines. There have been many earthquakes there in recent years. The most recent back in September of 2005. In Peru this morning, Kiran, there is a state of emergency in effect. Of course the search for survivors continues and we'll be updating you throughout the morning.

CHETRY: Alina Cho, thank you.

ROB MARCIANO, CNN NEWS GUEST ANCHOR: She mentioned that it was near the coast which is a concern for tsunamis. The quake in Peru did prompt a tsunami warning for parts of South America, it was later canceled. A buoy about 440 miles off the coast of Chili meant to detect tsunamis did record a small wave surge of about a foot after the quake. But it wasn't large enough to cause any damage.

Dave Applegate is a senior science advisor for the U.S. Geological Survey. He joins us this morning with some insights on tsunamis and on earth quakes.

Good morning, Dave, we'll start off with this tsunami. This was a big quake. Why didn't it generate a large tsunami?

DAVE APPLEGATE, SENIOR SCIENCE ADVISOR, U.S. GEOLOGICAL SURVEY: It was a large earthquake and did have the potential to generate a local tsunami. We generally expect that it takes an even larger quake to be able to generate one that will -- undersea quake that will travel across the Pacific Ocean.

MARCIANO: There were reports of big waves, big surf. That's not a tsunami, is it? Just the ground under the sea quaking?

APPLEGATE: When you have an undersea earthquake like this close to coast, you can generate a small set of waves. As I said, it may not travel across the entire pacific or be felt as a damaging earthquake, but it can be sensed locally. So there may well have been some local inundation. There were reports of about, I guess, a half hour after the quake, which is when that would be expected.

MARCIANO: 7.9 magnitude. That's a big one. Put this into perspective. How does it rank? Does the depth have anything to do with the amount of damage we're seeing?

APPLEGATE: Absolutely. Depth is very important part of this. Magnitude 7.9 quake. This was much bigger than the North Ridge earthquake that did significant damage in the Los Angeles area or the earthquake that struck just before the World Series back in '89.

This part of Peru has had these sorts of quakes in the past. There have been four during the past 100 years that were around magnitude 8 like this one. If it's a very deep earthquake, then the nearest population is that far away. If it's shallow, that means populations on the surface are very close to the event and you're going to have more people exposed to shaking. In this case, we estimated probably over a quarter million people were subject to severe shaking.

MARCIANO: There are reports of at least some people believe that the large earthquakes coincide with a new moon or a full moon, so that pull of gravity may shift the earth's crust. Is there any scientific backing to that?

APPLEGATE: There have been a lot of different ideas put forward in terms of earthquake prediction, including that gravitational possibility. But no, there really isn't any scientific evidence that points to that. There certainly have been coincidences where there have been -- you know, where the moon might have been at a different phase. Earthquake prediction, particularly short-term prediction is still extremely difficult. We focus on trying to understand the long- term probabilities for severe shaking that can then feed into building codes so that the buildings are constructed in a resilient manner.

MARCIANO: David Applegate, from the U.S. Geological Survey. Great insight. Thank you.

APPLEGATE: Thank you.

MARCIANO: Kiran?

CHETRY: As we said, we've been following extreme weather. CNN is your hurricane headquarters. We're watching two big storms right now. We have Dean within the last couple of hours, Tropical Storm Dean grew to hurricane strength now. It is in the Atlantic. Also Tropical Storm Erin, this may not have hurricane force winds but it's the rain that is the concern as it bears down on Texas, swamping areas that have suffered from flooding all morning long. Word is just in about a tornado warning.

Bonnie Schneider is in the Severe Weather Center in Atlanta following this for you.

Hi, Bonnie.

BONNIE SCHNEIDER, CNN METEOROLOGIST: We had a tornado warning that just expired but then a new came out for the entire county. I'm talking about Refugio County in south Texas. This goes until 6:00 local time. We are seeing not only the heavy downpours, but some very strong winds. When those winds come in different directions, at different levels of the atmosphere, sometimes we get tornadoes.

Looking at the rain coming in from Erin that's sweeping on shore, heavy and hard. These are rainfall totals over the past 12 hours. You can see we're looking at very heavy rain further to the north, just to the east of Victoria, Texas. Right now we have almost 4 inches on the ground and more is to come as we take a look at this. In fact, tropical storm warnings are well in place all the way from St. Louis down to Port Mansfield in Texas. This should continue for today.

So we're watching this tornado warning and tracking a hurricane out in the Atlantic and we'll be monitor all of this as we work our way through much of the morning here on "AMERICAN MORNING." -- Kiran?

CHETRY: Bonnie Schneider, thank you.

MARCIANO: Other breaking news we're watching this morning. A dramatic drop in overseas markets. Asian markets are down sharply after the Dow's future is also down, Ali tells us. The Dow closed below the 13,000 mark for the first time since spring.

Reports this morning that the U.S. is reportedly looking for a new way to keep Pakistan stable. The "New York Times" reports the Bush administration may back a power-sharing system splitting leadership duties between the current President Perez Musharraf and the former prime minister. The U.S. believes al Qaeda is regrouping and planning attacks from Pakistan's tribal areas.

And the suicide bombings in northern Iraq are now the worst attack on civilians since the war began. An American general is calling this an act of ethnic cleansing. Four truck bombs killed at least 500 people in Yuzidi (ph) neighborhoods in northern Iraq Tuesday. The Yuzidis (ph) are a small Muslim sect. General Benjamin Mixon says this is an ethnic attack that is also timed to influence Americans.

(BEGIN VIDEO CLIP)

GEN. BENJAMIN MIXON, COMMANDER, MULTINATIONAL DIVISION-NORTH: These are Islamic fundamentalists that are linked to al Qaeda. We know this because they distributed letters in the villages, we are told, telling the Yuzidi (ph) population to leave because they are infidels. That's an Islamic terrorist. They are linked to al Qaeda. It is a desperate act by this enemy to get international media attention and, of course, they're getting it because that's the reason we're talking about it.

(END VIDEO CLIP)

MARCIANO: The destruction is enormous. Entire neighborhoods are flattened. One crater is more than 23 feet deep and 300 yards wide.

CHETRY: Sounds of hope from inside the mine of Utah. Rescuers with sophisticated listening equipment say they heard a noise. The mine CEO says that noise lasted for five minutes. Now they're drilling a hole in a different location hoping to find the miners alive.

Our John Zarrella is live in Huntington, Utah.

Has this turned things around in terms of the mood and the hope that they'll be able to find some signs of life, John?

JOHN ZARRELLA, CNN NEWS CORRESPONDENT: Kiran, no question about it. Certainly renewed hope. But at the same time they're saying, listen, this may mean nothing. What they did was they used six geophones, listening devices placed on top of the mountain in various locations. Two of those six listening devices picked up something. They register spikes on a graph. So you don't actually hear anything.

Bob Murray, the president and CEO of the mining company described for us exactly what they think they heard.

(BEGIN VIDEO CLIP)

BOB MURRAY, CEO & OWNER, CRANDALL CANYON MINE: The sounds lasted about five minutes and they were at a frequency of about a second and a half. It could be rapping, but sir, we really don't know and I wouldn't read too much into it yet, but it is hope. It is hope.

ZARRELLA: Based on exactly which of these geophones picked those sounds up, they've determined where they want to start drilling that fourth hole. They're moving as quickly as possible to get that fourth hole drilled. They say they should start that sometime this morning. At the same time, we're waiting waiting for pictures from the third hole which was drilled yesterday which apparently show an area inside this cavity that they say, quote, "was undisturbed," meaning it's clean, it wasn't touched or affected by the incident that caused the initial collapse -- Kiran?

CHETRY: Do they have these ventilation curtains up in every day work in the mine or do they only put them up when something happens?

ZARRELLA: No. They do have them up. And that's the problem. They don't know whether this ventilation curtain was put up earlier before the accident or if, in fact, these miners may have tried to go behind there or get behind this curtain for protection and safety. They don't know the answer to that -- Kiran?

CHETRY: John Zarrella, thank you.

MARCIANO: Now a violent base-brawl. Using a bat as a weapon. Former Major Leaguer Jose Offerman now playing in the independent Atlanta League charged the mound after being hit by a pitch. A swung the bat, breaking the finger of the pitcher and hitting the catcher giving him a concussion. Offerman was arrested and charged with two counts of assault.

A flight attendant accused of serving herself on the plane. Atlantic Southeast Airlines says Sarah Mills was pulled off a flight in Kentucky on Sunday because she was allegedly drunk and threatened the pilot. She didn't go without a fight.

(BEGIN VIDEO CLIP)

SARAH MILLS, FLIGHT ATTENDANT: Excuse me. That is my [bleep] I.D.

(END VIDEO CLIP)

MARCIANO: Thank goodness for beeps. Court records show she admitted to drinking whiskey but she was below Kentucky's legal limit. She did plead not guilty to the charges.

CHETRY: A whacky aquarium attack now topping your "Quick Hits". A deranged man police say was arrested after tossing chemicals into a whale tank. He threw a mixture of iodine, a substance used with baking soda, into a 750,000 gallon tank. Three whales lived in that tank. He claimed I wanted to protect the whales from Agent Orange. The whales were not hurt. The tests showed the water was fine.

Reggie the alligator is back in custody. He disappeared before the L.A. Zoo was scheduled to open yesterday apparently scaling a wall to freedom, or so he thought. They found him at a loading dock and now he's back in the zoo.

Danger before you take off. Planes are getting way too close to for comfort on crowded runways. What the feds are doing to keep you safe is next. That's next on "AMERICAN MORNING."

(COMMERCIAL BREAK)

MARCIANO: We continue to follow breaking news out of Peru this morning. A 7.9 magnitude earthquake hit last night about 90 miles from the capital city of Lima. At least 337 people were killed and at least 1,300 others were injured.

We're also watching Tropical Storm Erin, drenching the Texas Gulf Coast right now, bringing more rain to a part of the country that's seen extensive flooding all morning long.

And the first extensive hurricane of the season, Hurricane Dean. There it is. Building strength and hurricane warnings have been posted as are watches for the Caribbean as the storm heads on a path towards Central America.

CHETRY: The risk of air travel starts before you leave the ground. Now the FAA is announcing new ways to prevent planes from crashing on the runways.

CNN's Jessica Yellin is live at Reagan National Airport right now with more on that.

Hi, Jessica.

JESSICA YELLIN, CNN NEWS CORRESPONDENT: Good morning, Kiran. Recently we've been hearing about near collisions at the nation's airports, planes that comes minutes or seconds from crashing into one another on takeoff or landing. Now the FAA or industry leaders have developed new giant guidelines to help unsure near misses don't turn into disasters.

(BEGIN VIDEOTAPE)

YELLIN (voice-over): In this near collision, a new knighted airlines was cleared for takeoff and came within 300 feet from another plane that had just landed. The FAA blamed an air traffic controller.

Last year, 49 people died in this crash at a Kentucky airport after pilots took off on the wrong runway.

According to the FAA, this year commercial planes have been involved in eight serious collisions. In the last few weeks, planes have nearly crashed on runways in Philadelphia, New York and Fort Lauderdale.

Now the FAA intends to do something about it.

ROBERT STURGELL, FAA: Even though we have made things safer, we want to do more and we want to do it quickly.

YELLIN: Among the improvements they need to make, add brighter paint to the runways so pilots can see their taxi and landing paths better. Update taxiing guidelines so air traffic controllers can give pilots more precise directions. And begin safety reviews of signs and procedures at the airports with the most near misses.

But is this enough? Air traffic controllers say they don't have nearly enough staff to handle the 62 million takeoffs and landings through the year. At times they're asked to work ten-hour days, six days a week, leaving them fatigued and more likely to make mistakes.

(END VIDEOTAPE)

YELLIN: Some of these changes could lead to more delays at the nation's airports, but the FAA is confident that the 750 million air travelers a year agree that safety has to be their first concern -- Kiran?

CHETRY: What about updating technology, any discussion about improving the tools available to pilots during their takeoff and landing?

YELLIN: Yeah. The FAA did talk about new technologies, but they're more focused first on the short-term fixes and then when they get to the new technology, they're going to look at the new technology that helps air traffic controllers determine whether the planes are in their taxiing and landing patterns. So really for the air traffic controllers, that's where they'll update the technology.

CHETRY: A lot of the air traffic controllers are complaining about aging equipment making it harder for them to do their jobs. Jessica Yellin at Reagan National for us. Thanks.

A crack down now on so-called female cigarettes topping your "Quick Hits". Women's health groups are calling on RJ Reynolds to remove Camel Number Nines from the market. The nines come in shiny black boxes with fuschia and teal accents. The ads say now available in stiletto, a longer, thinner cigarette. Critics say they're aimed at getting fashionable women to start smoking.

New York City lawmakers proposing a tough new crackdown on smokers today. They want to make it image to light up in cars when kids and teens under 18 are inside. Smokers who ignore the rule could face $200 to $1,000.

And bracing for another major sell off in Wall Street. Whether you own stocks, have a mortgage or a stack of bills to pay, what the down trends, means for you, next on "AMERICAN MORNING."

(COMMERCIAL BREAK)

MARCIANO: Welcome back to the most news in the morning. "Quick Hits" now. A driver crashes into the front window of a 7-eleven in Portland, Oregon. Police say he put his car in drive instead of reverse.

CHETRY: Doesn't that happen a lot?

MARCIANO: Apparently so. Need something to change in carmakers. He was cited with driving with a suspended license, so maybe that had something to do with it.

Police in Spokane, Washington, busted five people from going on a late-night car smashing spree. They say the suspects were armed with baseball bats. They're accused of vandalism of who cars 40 cars and are now facing criminal mischief charges.

This is 65 cents a gallon, a whacky radio pro motion that paid off for listeners who listened and went in Philadelphia. It lasted about an hour. That's a pretty good deal, Ali Velshi, 65 cents a gallon.

ALI VELSHI, CNN FINANCIAL ANALYST: What happened? What's the end result in that? I don't know that people are loyal to gas stations.

MARCIANO: I'm sure the radio station cut the deal and they may be sucked up the losses and hopefully gained a few listeners at the same time.

VELSHI: We need good ideas in tough times. Here is one, actually.

A lot of toymakers are figuring that since people are concerned about these toys that are on the shelves that keep getting recalled, there seems to be an emphasis on buying toys that are made in America. There aren't a lot of them, but they're changing displays in stores to focus on the fact that these are made in America. A number of toys that are made in America, you can't see that they are but you'll see stamps on the toys.

Check this web site for Whittle Shortline Railroad. It's woodentrain.com. See in the top left corner, there's a yellow bubble that says 100 percent kid-safety with lead-free paint.

When you talk about anybody who makes toys in America flaunting that over the next few months because we are getting into toy-buying season particularly as we reach into fall and the holiday shopping season. You're going to see a lot more.

MARCIANO: Mattel is an American company, but they import so you have to watch the labels, I guess.

VELSHI: Most American companies buy things -- most people, look at everything you're wearing and carrying in a day, probably 80 to 85 percent of that is made in China, at least. Because it's cheaper to make things in China.

MARCIANO: Find me an all-American toy company to I can invest in that stock.

VELSHI: There are a few of them. It might be worth looking at. I'll be back to talk about the stock market. It's looking like it will be another steep loss on the Dow at the hope open.

CHETRY: So all gains for the year have been erased?

VELSHI: Particularly on the S&P 500. The Dow is still up a smidge, but we'll see how long that lasts.

CHETRY: Some practical advice for the everyday investor, Ali?

VELSHI: What you should be doing, yes.

CHETRY: Thank you.

Your "Quick Hits" now, in a just-released statement, former Defense Secretary Donald Rumsfeld resignation letter to the president, it holds more mystery than meaning. Rumsfeld never uses the words Iraq or Afghanistan and never says why he decided to leave. He only wrote in the November 2006 letter, quote, "It's time to conclude my service."

Breaking news out of Peru this morning, a major earthquake kills hundreds. More than 1,000 others under and the damage is still being calculated. More on that story coming up.

(COMMERCIAL BREAK)

MARCIANO: Here is a look at what you can't miss later on. Video of some dude named David Beckham.

CHETRY: Just some guy.

MARCIANO: I never heard of him. He did something last night. Several things he could have done.

CHETRY: Makes $6.5 million a year. He better have done something.

MARCIANO: We know he made some money. He may have scored, gotten hurt or did he take his shirt off? These are other questions you and other females may want to know.

CHETRY: I think he does that after every game, guaranteed.

MARCIANO: That's part of his contract.

CHETRY: There's a lot more women in the stands now for some reason.

The next hour of "AMERICAN MORNING" starts right now.

(voice-over): Breaking news. A devastating earthquake rocks South America. More than 300 killed.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We estimated that probably over a quarter of a million people were subject to severe shaking.

(END VIDEO CLIP)

CHETRY: New pictures and a new threat for after-shocks.

It's now Hurricane Dean and it's growing in the Atlantic. Tropical Storm Erin surges towards the Texas Gulf Coast.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We will ride it out. I'd kind of like to see what it looks like.

(END VIDEO CLIP)

CHETRY: And global slide. Markets around the world plunge to new lows overnight. Fears of another wild ride on Wall Street on this "AMERICAN MORNING."

Welcome. It's Thursday, August 16th. I'm Kiran Chetry.

MARCIANO: John Roberts is off. I'm Rob Marciano. Lots of stuff going on today.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxant.com