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American Morning
Hurricane Noel; Oil Prices Surge; California Wildfires; The Gap & Child Labor
Aired October 29, 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: Beach house inferno.
(BEGIN VIDEO CLIP)
BETTY SMITH, NEIGHBOR: I'll always remember that house burning.
(END VIDEO CLIP)
CHETRY: At least seven college students killed.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: This is a very sad day for the University of South Carolina.
(END VIDEO CLIP)
CHETRY: Dramatic home video and incredible stories of survival. How did anyone make it out alive?
The Gap under fire.
(BEGIN VIDEO CLIP)
MARKA HANSEN, PRESIDENT, GAP NORTH AMERICA: I take personal responsibility.
(END VIDEO CLIP)
CHETRY: Child labor charges and the clothes you wear. Its president speaking out this morning.
Plus, swept away. Boston brings home another World Series title. High times for Red Sox nation on this AMERICAN MORNING.
Well, we had to cover those Yankee's fans eyes for that one. Sorry about that, Rob.
ROB MARCIANO, CNN ANCHOR: That's fine. (INAUDIBLE). They look good.
CHETRY: They did.
Well, welcome. It's Monday. Hope you had a great weekend. October 29th. I'm Kiran Chetry.
MARCIANO: John Roberts has the day off. I'm Rob Marciano.
Last week, you know, the fires from southern California still fresh in our mind. They're still reeling, they're still burning and now we've got this fire in North Carolina.
CHETRY: Yes, just a tragic story this morning. Two college campuses are reeling from grief after seven students died in a beach house inferno. The video we're showing your right was shot -- it was a fireball that swallowed up the home on Ocean Isle Beach. This is in North Carolina. More than a dozen college kids lived there. Six students from the University of South Carolina died, along with one from Clemson. Witnesses say that there were people on the ground screaming. One of the six survivors escaped by leaping out of a window and into the water.
(BEGIN VIDEO CLIP)
BETTY SMITH, NEIGHBOR: I opened the door, on the T-canal (ph), on the end, I could see this house just engulfed in flames. When we got out there, we could start hearing things exploding, windows were like -- you could hear breaking.
(END VIDEO CLIP)
CHETRY: All that was left was the charred frame -- there you see it -- and the stilts on which that home stood. Both universities are open today, but there are grief counselor on hand to deal with people that need to talk to them. Federal investigators are also on the scene, but there is still no word on how that fire started.
Rob.
MARCIANO: Kiran, hurricane season is not over yet. Tropical Storm Noel bringing lots of rain as it passes over Haiti early this morning. There you see it on the satellite picture. It's in the Atlantic basin. It could dump close to a foot of rain in the Dominican Republic, Cuba, Haiti and Jamaica, potentially triggering killer flash floods and mudslides. We're getting i-Reports in from all sorts of spots. And, of course, if you're in that area, we welcome that. There's some flooding issues there as well.
CNN is your hurricane headquarters. Jacqui Jeras is tracking Noel for us.
Jacqui, what's the storm doing?
JACQUI JERAS, CNN METEOROLOGIST: Well, it's just about to make landfall actually, Rob. It's very close to the Haiti coast at this time and moving on a north-northwesterly track. It's packing winds at 50 miles per hour. That's maximum sustained winds. And the center of circulation is right about here. So it's just south of Port-au- Prince. And flooding is going to be the greatest concern. We could see anywhere between 10 and 20 inches of rainfall. Even heavier amounts possible into the higher elevations. So flash flooding, along with mudslides and landslides, will be a very grave concern. It will be weakening throughout the day as it makes its way over land as it's very rugged terrain here and then it could do some additional strengthening. Right now the official forecast, you can see, keeps it at tropical storm strength and eventually steers it around away from the United States.
Now that said, that area of low pressure, with a very tight gradient between that and high pressure across northern parts of the United States, is bringing in some very strong winds across the state of Florida, along with some heavy rains. We'll talk about that threat coming up in just a little bit.
Rob.
MARCIANO: It was quiet there for quite awhile. We often forget that hurricane season goes right through November.
JERAS: I know. It was almost a month where we had really nearly nothing, Rob.
MARCIANO: Look like this storm may very well pack a punch. Thank you very much, Jacqui Jeras, in the severe weather center.
Kiran, back over to you.
CHETRY: All right. Well, oil prices surged past a new record in overnight trading. Stephanie Elam is in for Ali Velshi. She's at the business update desk this morning.
OK. Lay it on us. How about the numbers this morning, Stephanie?
STEPHANIE ELAM, CNN CORRESPONDENT: I know, Kiran.
Well, on Friday we saw $91.86. That was the record that we have here on Friday settle. That's up $1.40, as you see there. New record. But now, overnight, we're seeing crude oil above $93 a barrel for the first time that we've seen this.
Obviously there's a few things that we're looking at here. Over the past month, crude is up 30 percent here. The price of it is. And also the fact that Mexico shut down production because of a storm. Also those tensions between Turkey and Iraq over Kurdish militants. That's adding into the price spike here.
Also, Iran's nuclear program factoring in. People are also worried that we're going to have enough oil to help heat us throughout the winter. So that shortage worry is also adding into it. So now, remember when $100 a barrel was out of the question? Not so any more. And that could mean gasoline could be as much as $3. Some even say $4 by the end of this year.
Kiran.
CHETRY: All right, Stephanie, we'll check in with you throughout the morning for the impact about all of this. Thanks. Also new this morning, the young man at the center of a teen sex case that sparked national outrage spoke to CNN since getting released from prison. Genarlow Wilson sat down with Rick Sanchez over the weekend. He says his felt his 10-year prison sentence for consensual sex with another teen was absurd but that he is not bitter about it.
(BEGIN VIDEO CLIP)
GENARLOW WILSON: What happened that night, I don't think any of us made very wise decisions, you know, but I don't think that any of us can go back then and change what happened. You know, for the most part, all I think we can do is mature from it. You know, make sure it doesn't happen again, you know, and someone get caught up in the same thing. But, you know, yes, I was young then. I, you know, I've done some idiotic things in my teen years, but, you know, every average teen does.
(END VIDEO CLIP)
CHETRY: Wilson also said he's been studying for the S.A.T. and that he's ready to pursue a college degree in sociology or business. We're going to be talking with Rick Sanchez a little later and hear more from Genarlow Wilson in the next hour of AMERICAN MORNING.
Well, it's a reason that's largely avoided the carnage of one war, but now troops in Iraq's Kurdish north are preparing to take on Turkey. Some towns just miles from the border are now deserted. Turkish attack choppers reportedly killed 15 Kurdish guerrillas in southern Turkey yesterday. Turkey's prime minister says he ordered the incursion after diplomatic talks with Iraq failed. The U.S. has urged its NATO ally to reconsider a full scale invasion despite attacks by Kurdish rebels that killed 30 Turkish soldiers in the past month.
Making history in Argentina. The current first lady of Argentina will be named the country's first female elected president. Several exit polls show Cristina Fernandez de Kirchner won the election by a large enough margin to avoid any runoff. A lawyer turned senator has been called the Latin Hillary. She'll take on the economy and rising crime. Her two major campaign issues when she assumes office in December.
Israeli Prime Minister Ehud Olmert is expected to announce today that he is batting prostate cancer. There's a live look at a press conference taking place there now. An Israeli government official says the disease is not life threatening. Olmert is 62 years old. Israeli radio said he will not be stepping down. He came into power early last year when his predecessor, Ariel Sharon, suffered a stroke.
Well, it seems French President Nicolas Sarkozy does not like talking about his personal life. He walked out of an interview that aired last night on "60 Minutes" when the questions turned to his soon-to-be ex-wife.
(BEGIN VIDEO CLIP) LESLIE STAHL, "60 MINUTES" CORRESPONDENT: Since we've been here, it seems that every day we're hearing another story about your wife. What's going on?
PRES. NICOLAS SARKOZY, FRANCE, (through translator): If I had something to say about Cecilia, I would certainly not do so here.
STAHL: But there's a great mystery. Everybody is asking. And even your press secretary was asked at the briefing today. No comment?
SARKOZY: He was quite right no make no comment and no comment. Thank you.
(END VIDEO CLIP)
CHETRY: All right. There you see him. He pulls his ear piece out. Starts to undo that. Looks like he's talking to his press secretary from the side. Takes his microphone off. He does shake Leslie Stahl's hand. It was correspondent Leslie Stahl, appearing a little bit confused. You see him touch her shoulder as well. The interview was conducted a few weeks ago when there was a lot of speculation in the French news media that Sarkozy and his wife were splitting up. And since then the couple announced they are divorcing.
And a clash of American presidential front-runners. Republican presidential hopeful Rudy Giuliani blasted Hillary Clinton for her diplomatic plan, saying that it undermines President Bush.
(BEGIN VIDEO CLIP)
RUDY GIULIANI, (D) PRESIDENTIAL CANDIDATE: Hillary's not even the nominee of the party. So, I mean, this is very, very premature to be talking about sending ambassadors all around the world even before she becomes president to, in essence, interfere in the foreign policy of the United States.
(END VIDEO CLIP)
CHETRY: Clinton has said that if she wins the election, she will send representatives out the next day to say "the era of cowboy diplomacy is over." Giuliani says Clinton is being arrogant and may hurt the United States' long-term interest in the Middle East.
And Hillary Clinton's also feeling the heat from her own party. Senator Barack Obama accused the Democratic front-runner of playing politics and not taking a tough stance on the issues.
(BEGIN VIDEO CLIP)
SEN BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: I hear some of the other candidates say, well, elect me because I know how to play the game better. The problem is now, we need somebody who knows how to play the game better, we need somebody who's going to bring an end to the game playing.
(END VIDEO CLIP)
CHETRY: Well, in the interview for Sunday's edition of "The New York Times," Obama accused Clinton of "trying to sound or vote like Republicans." The Clinton campaign fired back by saying Obama has abandoned the "politics of hope."
Iowa Democrats and Republican will caucus on the same day next year. It will be January 3rd. Late last night, Democrats bumped up their caucus date. Republicans did the same thing a few weeks ago. New Hampshire is expected to move its primary date up to January 8th. Iowa and New Hampshire have traditionally been the first states to cast votes for the Democratic and Republican presidential nominees and they're fighting hard to keep that status this election.
Rob.
MARCIANO: Kiran, the winds are picking up again and the devastating toll is mounting as southern California residents survey the damage done by the wildfires. Twenty-eight hundred buildings have been destroyed so far. At least seven people have been killed. And officials say at least two of these fires were intentionally set. Over the weekend, Governor Arnold Schwarzenegger came out with a warning for the arsonists.
(BEGIN VIDEO CLIP)
GOV. ARNOLD SCHWARZENEGGER, (R) CALIFORNIA: If I were one of those people who started the fires, I would not sleep sounding right now, I'll tell you, because we are right behind you. As a matter of fact, if I would be you, turn yourself in.
(END VIDEO CLIP)
MARCIANO: Jeanne Meserve is live in Santiago Canyon, California, at one of the sites officials believe that the Santiago Fire was started.
Are police any closer, Jeanne, to finding their suspect today?
JEANNE MESERVE, CNN CORRESPONDENT: Rob, there are no signs of concrete progress in this investigation. There are no search warrants, no suspects, no arrests.
We are on Santiago Canyon Road. This is, right here, one of the two spots where investigators believe this fire started. They theorize that someone may have driven along this road and thrown something from their vehicle to start the fires.
If you look down this very steep slope, you might be able to make out some orange evidence flags that are down there. That is where investigators have picked up samples. While those are being analyzed, they are sifting through about 1,000 tips that have come into the hotline. Some of them have been discounted pretty quickly as efforts to get part of the $250,000 reward that's being offered in this case. But others are being looked at quite seriously and have led to some interviews we're told. Also, it led the police to call for public information about a white Ford pickup truck, an F-150, that was seen in this area around the time these fires were started. They've asked the public to call in with any information. They call this a very good lead. They are looking for the driver or the owner, but they haven't found them yet.
Rob.
MARCIANO: And you say something was thrown from the car. Police are looking at samples. What kind of evidence did they collect from the scene?
MESERVE: Well, we don't know specifically what they gathered here, but in an arson case of this kind, they'd be expected, for instance, to pick up soil samples and analyze them for any traces of accelerants. They would be looking for, for instance, some remnants of an incendiary device that might have been thrown. They also might be picking up things like cigarette butts or bottles, looking for traces of DNA that might give them a lead on the individual who might have been here.
Rob.
MARCIANO: Fair enough. We'll look for progress in that investigation.
Jeanne Meserve for us in Santiago Canyon, California.
Thanks, Jeanne.
Well, QUALCOMM Stadium is back in business this morning -- or over the weekend at least. The San Diego Chargers crushed the Houston Texans 35-10 yesterday in their first home game since the devastating fires. QUALCOMM was used as a major evacuation center. A special ceremony was held before the game to honor police, firefighters and national guardsmen. They got a standing ovation from the crowd. Governor Arnold Schwarzenegger was also at the game.
And sticking with sports, the Red Sox complete their sweep and win their second World Series since 2004. It was another celebration on the road after a one-run win over the Colorado Rockies at Coors Field. Pitcher Jon Lester got the win after coming back from cancer earlier this season. Third basemen Mike Lowell was named most valuable player. Eighty-six years, (INAUDIBLE), just as sweet for the Red Sox nation. Fans in Fenway were crazy. There was a frenzy there for sure. And riot police were out to keep things civil. Sort of a pre-game for the parade expected later this week
And now on to more sports. First, their manager. Now it looks like the Yankees have lost their biggest star. Alex Rodriguez has opted out of his 10 year, $252 million deal with the Bronx Bombers. He made his decision before the Yankees announced a replacement for manager Joe Torre. That's expected maybe this week.
Kiran.
CHETRY: You guys saw that one coming though, right?
MARCIANO: Um-hum.
CHETRY: All right. What did he want, $30 million a year?
MARCIANO: Well, he's got an option for three more years and he opted out. So now he's going to go on the free market and we'll see who the highest bidder is going to be. The Yankees have said that they're not going to bid after him now that he's opted out. So it looks like he's no longer going to be in pin stripes.
CHETRY: Wouldn't that just kill you if it turned out to be the Red Sox?
MARCIANO: You know, I'm just -- I'm emotionally distraught this morning. Don't ask me those kind of questions. Thanks, Kiran.
CHETRY: We'll try to help you get over it as we move on throughout the day.
All right, Rob, thanks.
MARCIANO: All right. See ya.
CHETRY: Two New York City firefighters arrested. That tops your "Quick Hits" now. They're accused of setting a fire at a fire house in Manhattan over the weekend. It's not the fire station where they worked. It was also quickly put out. No one was hurt, but they're in some serious trouble. Both facing felony charges of arson, reckless endangerment and criminal mischief.
A thermos full of water causing a terrorist scare on a flight from New Mexico to Phoenix. U.S. Airways' plane had to turn around. The thermos rolled into the aisle and no one claimed it. That set off fears. The plane returned to Albuquerque where hazmat crews determined the thermos only had water in it.
Well, still ahead, The Gap on the defense this morning after video comes to light appearing to show children as young as 10 years old being forced to work in a sweat shop overseas. Our own Alina Cho sits down with Gap's president coming up on AMERICAN MORNING.
(COMMERCIAL BREAK)
MARCIANO: Some of the shots you've just got to see now in "Quick Hits." Why take the stairs? Why? Because the base jumpers marked the 40th anniversary of a TV tower in Moscow by taking a 475-foot leap off the thing. Forty-six jumpers got a view of the Kremlin few will ever see. That's crazy stuff.
Well, nasty Nascar crash. Sparks are flying as drivers Dale Earnhardt Jr. and Jamie McMurray collide in the final laps of Sunday's Pep Boys 500 at Atlanta Motor Speedway. Jr lost a wheel. Both drivers were OK. Jimmie Johnson went on to win his second race in a row. And literally riding out the flood. Motorcycles get people through high water in Ho Chi Minh City, Vietnam. The streets filled after flood tides burst dikes that protected the area. Experts said some high water levels rose higher than they've ever seen in the last half century.
Kiran.
CHETRY: Well, this morning, the biggest clothing retailer in the U.S. is trying to reassure the public that recent child labor charges are only isolated incidents. Last night our own Alina Cho sat down with the president of The Gap over reports that one of their subcontractors in India was using children to make clothes.
(BEGIN VIDEO CLIP)
MARKA HANSEN, PRESIDENT, GAP NORTH AMERICA: That subcontractor is -- their relationship with us is terminated. And as I said, we'll convenient the entire region together to talk again about what our compliance is.
(END VIDEO CLIP)
CHETRY: And Alina Cho joins us this morning with more.
Now, first of all, what were the allegations?
ALINA CHO, CNN CORRESPONDENT: Well, they're heavy ones, Kiran.
You know, Gap's present, Marka Hansen, told me last night that the company takes full responsibility for what happened and has launched a full-scale investigation. Now a London paper, "The Observer," first broke this story. Their investigation found children as young as 10 working without pay as virtual slaves at a factory in India. Now "The Observer" reports that the kids slept on the roof. And when they misbehaved, in some cases they were hit with rubber pipes.
Now the child laborers were doing embroidery for blouses for Gap Kids. Gap's president told me the subcontractor hired for the job actually farmed out the work to a factory that was not properly vetted, which is a violation of Gap's policy.
(BEGIN VIDEO CLIP)
HANSEN: And it's deeply, deeply disturbing to all of us. So I feel violated and I feel very, very upset and angry with our vendor and the subcontractor who made this very, very, very unwise decision.
(END VIDEO CLIP)
CHO: Now according to UNICEF, as many as 80 million children are working in India. It is widely known as the child labor capital of the world. In this case "The Observer" reports poor Indian parents were actually tricked into selling their children with the promise that those kids would be taken care of and that their wages could be sent home. Turns out they're not being paid.
The Gap, for its part, is sending a top executive to meet with Indian suppliers in India by the end of the week. The president could go there as well. The Gap's president, rather. The products, by the way, that were supposed to be shipped out in time for the Christmas season, Kiran, we're told and assured will never hit the stores. Those products, those blouses, have been destroyed.
CHETRY: How do they ensure, though, as you said, India, the child labor capital of the world, that this won't just happen again? That they won't promise to make changes and then keep doing the same thing?
CHO: Well, The Gap says that it has a history of taking action. That they actually fired 23 suppliers just last year for not complying with its code of conduct. And there's several pages, you know, you can read through it, of rules that they have.
They say that they have 90 inspectors for its 2,000 plus stores around the world. That they make unannounced visits to make sure that these suppliers are in compliance.
But listen, this is a very big deal. It is potentially embarrassing for the company. It could affect the bottom line. It is exactly why The Gap farmed out its president last night. Remember, it's the biggest clothing retail in the U.S.. They also own Banana Republic and Old Navy. It's a very big deal.
Now Gap's president, Marka Hansen, told me, this order, where these clothes were being made in India, was just a small order. It was just 700 pieces. But she says it doesn't matter if it's one piece or a million pieces, they're going to take action.
CHETRY: Bad time of year for it to happen, as you said, right when the holidays are going to start.
CHO: Right around the holiday season, that's right.
CHETRY: Alina, thank you.
CHO: You bet.
CHETRY: Well, we ant to know what you think. The holiday shopping season is coming up, as we said, and given this report and Gap's response, would you continue shopping at The Gap? Cast your vote, cnn.com/am. We're going to have the first tally of votes coming up in our next half hour.
MARCIANO: The death penalty debate tops your "Quick Hits" now. The American Bar Association is calling for a halt to executions nationwide. The group says there are serious problems in death penalty systems which have compromised fairness and accuracy. Prosecutors and death penalty supporters say the ABA report was done mostly by death penalty opponents.
A federal grand jury is investigating allegations of rape against David Copperfield. According to "The Seattle Times," the woman says Copperfield selected her to come on stage as part of his act. She told investigators that Copperfield later promised he could help her with a modeling career and invited her to his private estate in the Bahamas. Copperfield's attorney says his client has never forced himself on anyone.
Well, it took 15 laterals and 46 seconds but it ended the game with a winning touchdown. Just might be the craziest football play you've ever seen. That's coming up on AMERICAN MORNING.
Remember when you said if the Red Sox win, the furniture's free? Well, we do. Why one store is now paying big time for something it said in spring training. That also ahead on AMERICAN MORNING.
We'll be right back.
(COMMERCIAL BREAK)
CHETRY: And welcome back to the most news in the morning.
Mechanical trouble in space topping your "Quick Hits" now. Astronauts are going ahead with their work on the International Space Station, but they did discover a problem with one of the joints need to rotate the station's solar power system. Engineers say they don't need to fix it right away, but it does limit the amount of power on the Space Station.
Well, the world's most famous meteorite didn't have much star power in New York last night. The huge chunk of the Willamette meteorite only fetched about $300,000 at the American Museum of Natural History's auction. Sounds like a lot, but the 30-pound piece was expected to sell for well over $1 million.
MARCIANO: Big disappointment in the meteorite community no doubt.
Well, an amazing ending to a college football game this weekend. Take a look and listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: (INAUDIBLE) looking to run. He's looking for a block. He's got a convoy. He's going to throw it to Thompson (ph). Thompson at the 30-yard line. Thompson now lateral's it back to Curry (ph) at the 35. They're running out of spaces. Curry fakes. He's done a lateral it to Thomas (ph).
UNIDENTIFIED MALE: Go! Go! Run!
UNIDENTIFIED MALE: Thomas got a chance go. Thomas got a chance to go. He laterals it. Now it's going to go to . . .
(END VIDEO CLIP)
MARCIANO: Trinity (ph) University was losing to Milsaps (ph) College with time for one play left. Still going. He breaks out! That play lasted about a minute, included 15 laterals and had seven players touch the ball. The last guy to have it was Riley Curry (ph). He ran 34 yards for the game-winning touchdown. And thanks to whoever parents sent in that video for us.
CHETRY: You know the coach said things would have to go absolutely perfectly for something like that to work. There's no way you could practice that. Plus, I doubt they have instant replay, right? So how could you tell if it was a lateral or if it was a forward pass, you know?
MARCIANO: Well, you know, from our vantage point it looked all he was all legit. Anyway, it's good TV and congratulations to Trinity University. That one will go down in the history books.
CHETRY: How about it. Congratulations.
All right. We're going to take a quick break. When we come back, much more on AMERICAN MORNING.
(COMMERCIAL BREAK)
MARCIANO: Welcome back. It's Monday, October 29th. John Roberts is off today and I'm Rob Marciano.
CHETRY: Good to have you with us this morning.
MARCIANO: Thanks.
CHETRY: I'm Kiran Chetry.
And new this morning, right when many people in the Northeast start to crank the heat at home, oil prices are now going up again. And way up this time. There was another new all-time high that's been set in overnight trading in Asia. Oil now passing $93 a barrel. Analysts are blaming a weak U.S. dollar, as well as tensions in the Middle East and supply worries here at home with the long, cold winter ahead.
A surprise on the campaign trail. Presidential candidate Mike Huckabee says maybe Iraq did have weapons of mass destruction before the U.S. invaded.
(BEGIN VIDEO CLIP)
MIKE HUCKABEE, (R) PRESIDENTIAL CANDIDATE: Just because we haven't found them doesn't mean they didn't exist. We haven't found Jimmy Hoffa either, but we know he exists.
(END VIDEO CLIP)
CHETRY: Interesting comparison. The CIA now says there weren't weapons of mass destruction at the time of invasion. And on Iran, Huckabee says that he's prepared to do whatever it takes from preventing Iran from developing nuclear weapons.
There's some concern that tough talk could turn into deadly force in the nuclear standoff with Iran. The U.S. top nuclear watchdog says he's worried that the U.S. won't give diplomacy a chance. Yesterday on CNN's "Late Edition," Mohamed Elbaradei said that Iran is still at least a few years away from being able to build a nuclear bomb. And there is time to head off a military confrontation.
(BEGIN VIDEO CLIP)
MOHAMED ELBARADEI, IAEA DIRECTOR GENERAL: We haven't seen any concrete evidence to that effect, Wolf. We haven't received any information that there is a parallel, ongoing, nuclear weapons program. What we have seen in the past, that certain procurements that have not been reported to us. There are experiments. And that's where we are working now with Iran to clarify the past and the president. But I have not received any information that there is a complete, active nuclear weapon program going on right now.
(END VIDEO CLIP)
CHETRY: Last week the Bush administration made another aggressive move against Iran by announcing new sanctions against the Islamic republic's military and banks.
International mediators, are trying to save the newest round of Darfur peace talks. Two of the main rebel groups are holding out of a conference in Libya and the mediators are trying to make them come to the peace table.
Life in prison for a Russian serial killer. Alexander Pichushkin, dubbed the chess board killer, was sentenced today after being convicted of 48 murders. He says he actually committed more and said his goal was to reach 64. One for each square on a chess board.
A copilot for virgin Atlanta airlines under arrest accused of trying to fly while drunk. He was busted at heath row airport as he was trying to get on the plane he was preparing to leave for Miami. Passengers were delayed for three and a half hours. The pilot has been suspended. He's now out on bail.
ROB MARCIANO, CNN ANCHOR: Grief counselors will be on hand to help students on two college campus this is morning after a tragedy at a beach house in North Carolina. It was packed with students when a fireball erupted. Six students from the University of South Carolina died along with one from Clemson. More than a dozen college students lived there. Still no word on how it started. We'll have a live report from the scene coming up at the top of the hour.
And as victims of the California wildfires are finally returning home to survey the damage, we're hearing some truly amazing stories of survival. One couple barely escaped the deadly fire in Rancho Bernardo by jumping into their pool.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We ducked our head under that overhang.
UNIDENTIFIED MALE: For how long? UNIDENTIFIED FEMALE: Three hours. I think about three hours.
UNIDENTIFIED MALE: About three hours. Actually, it was about an eternity and a half. It's the longest wait I've ever had for a ride, and to -- thank heavens we never filled the pool in. We talked about that. We were going to fill it in, not fill it in, but we need the escape plan, if it ever happened.
(END VIDEO CLIP)
MARCIANO: That same fire killed some close friends of the couple. The winds are back this morning, but some moisture over the weekend helped the situation a bit. Fires have now destroyed 2,800 buildings and killed seven people.
Well, hundreds are running from wildfires in a place you might not expect, Hawaii. Police say someone set nine fires in dry grasses along coastal roads. Right now they're not threatening homes or buildings but a change in the wind could steer them towards residential areas, around 500 people have been ordered to evacuate.
Jacqui Jeras in the severe weather center, the hurricane headquarters. We have the wildfire issue, the Santa Ana's coming back and you got that tropical storm as well.
JACQUI JERAS, CNN METEOROLOGIST: Good morning, Rob. Yes, a lot going on today.
We'll start out in the west. The winds will be offshore again today but really a hiccup in the weather pattern overall. The winds 5 to 15 miles per hour. Could gust as strong as 30 but by this evening I think the onshore flow will return and more moisture in the forecast and believe it or not, we could even see a little drizzle Tuesday and Wednesday.
In the east, high pressure dominating your weather here. We're looking at the winds coming strong on the Florida coast with some high surf, some coastal flooding expected and also very strong threat of some rip currents, so be aware of that problem. And high tide today around 11ish and that's when we'll see the worst of the beech erosion coming in. The rainfall we could see as much as one to two inches today.
The highest centers where we're seeing the cold weather today. It is nippy out there all across parts of the north. We've got frost and freeze advisories in effect and your temperature this is morning, look at Pittsburgh, 31 degrees here. We've got 39 degrees in Philadelphia. It's mostly the outlying areas from the big cities that are going to be seeing that end to the growing season.
Rob.
MARCIANO: Fall here, in full force. Thanks, Jacqui.
CHETRY: Actually feels good to be a little cold for once.
MARCIANO: Yes.
CHETRY: Instead of sweating or the humid wit the hair.
MARCIANO: I know what you mean.
CHETRY: You do? I know you do.
There's new some recommendations about screening for autism, a disorder that experts say affects 1 in 150 U.S. kids. The American Academy of Pediatrics says children should be screened for autism twice before the age of two, once at 18 months and then again at 24 months.
Medical correspondent Elizabeth Cohen is going to show us what they check for at these types of screenings and how to know if your child may have some of those signs. That's coming up at the top of the hour.
Also, Senator Chuck Schumer calling for a nationwide reporting system for the antibiotic resistant staph infection known as MRSA. Schumer's move follows the death of a 12-year-old Brooklyn boy last week.
Well, take a look at this press conference and tell us if you can guess what's wrong with it. Well for one, there are actually no members of the press there. FEMA is now under fire for holding a fake news conference. The head of homeland security says he'll be taking action and the guy responsible, you won't believe where he's headed next.
Also it's a world turned upside down where night is day, black is white and the Red Sox are the symbol of baseball dominance? Well, one furniture store must be living in the past. The pricey promise, it now has to keep, because the Sox won the World Series. We'll explain, coming up on AMERICAN MORNING.
(COMMERCIAL BREAK)
MARCIANO: 25 guys will get a shiny new ring and thousands of Red Sox fans may get a check in the mail very soon. Back in March, 30,000 people took advantage of Jordan's Furniture Store's promotional offer for a full rebate if the Red Sox won the World Series. The company's CEO says some customers spent $100,000. The place forgot I guess that this is the new Red Sox, free of the bambino's curse. But the owner did buy an insurance policy to cover the losses.
CHETRY: It's unbelievable. They bought $20 million insurance policy they say so they're telling investors you don't need to worry.
MARCIANO: I wouldn't want to be that insurance company.
CHETRY: How happy would you be if you were a Red Sox fan who also spent $100,000 worth of furniture to get your entire house top to bottom furnished?
MARCIANO: I'd be very happy. I personally wouldn't have bought any furniture. The Red Sox do look strong, I'll say that. They look very strong.
CHETRY: We'll see what happens next year. If they get A-Rod, they'll be even stronger but come on.
MARCIANO: People will be sleeping in new beds and couches all for free.
CHETRY: Exactly. Not a good day to be a Yankee fan.
MARCIANO: I'm OK.
CHETRY: There's other years.
MARCIANO: Yes there is.
CHETRY: The first lady elected president; that's on your political ticker this morning. Cristina Fernandez de Kirchner declared victory last night and will become Argentina's new president succeeding her husband. She's South America's second female president. Chile elected a woman to the post last year.
Iowa Democrats will soon be joining Republicans in the state to caucus January 3rd. New Hampshire has yet to set a date for its primary. It still wants to maintain its first in the nation status. New Hampshire secretary of state could make an announcement on that by Friday.
So who is South Carolina's favorite son? Comedian Stephen Colbert says he is. He launched his presidential campaign in South Carolina this weekend. Colombia's mayor even gave him a key to the city. But another South Carolina native, John Edwards isn't taking that lying down. His campaign says Edwards will kick Stephen Colbert's New York City butt in South Carolina. Still not exactly sure, is he actually running or is this a very, very intricate gag?
MARCIANO: At this point, I may vote for him.
CHETRY: And finally the interview is over. French president Nicolas Sarkozy walks out of a "60 MINUTES" interview with Leslie Stahl. He got irritated when Leslie Stahl asked him about the marriage. Let's listen.
(BEGIN VIDEO CLIP)
LESLIE STAHL, "60 MINUTES: Even your press secretary was asked at the briefing today. No comment?
PRES. NICOLAS SARKOZY, FRANCE: He was quite right to make no comment and no comment. Thank you.
(END VIDEO CLIP)
CHETRY: As you can see the president then pulls off his mike and walks out. The interview was taped a few weeks ago, days after Sarkozy announced that he was indeed getting a divorce.
We'll find all of the day's political news around the clock at CNN.com/ticker.
MARCIANO: Reports of a teary apology from Oprah Winfrey at her all-girl school in South Africa. Oprah asked parents to forgive her over claims one of the school's matrons fondled a student. Oprah reportedly gave the girls her personal phone number, e-mail and her postal address so they could contact her day or night.
And a member of the British royal family is reportedly being blackmailed this morning with an alleged sex tape. London's "Sunday Times" reporting that two men were picked up last month after allegedly telling the unnamed royal that they wouldn't publicize the video if they were paid $100,000. The unidentified suspects are being held pending a hearing.
It looked like a regular press conference except for one thing, there wasn't actually any press there. The fallout from FEMA's fake news conference intensifies. Hear what America's homeland security chief has to say about that. That's ahead.
Strict new rules, no gifts, no trips, no meals from lobbyists to lawmakers. How are they getting around that? The loopholes ahead on AMERICAN MORNING.
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MARCIANO: It is 43 minutes after the hour. And if you're just joining us, here's a look at what's making headlines this is morning.
Oil prices have shattered another record, $93 a barrel in overnight Asian trading. Analysts blame a weak U.S. dollar, tensions in the Middle East and supply worries here at home with winter on the way.
And Genarlow Wilson is a free man this morning. Wilson was released from prison on Friday, after the Georgia Supreme Court ruled his ten-year sentence was cruel and unusual punishment. Wilson was serving time for having oral sex with another teenager back in 2003. He sat down with Rick Sanchez over the weekend and we'll talk with Rick in the next hour of AMERICAN MORNING.
And a beach house inferno. Seven college students killed from a fire ball on the banks of North Carolina. More than a dozen college students said to have lived there. Officials say six people survived including one who jumped from the burning home and into a waterway. Still no word on how it started. We'll have a live report from the scene coming up at the top of the hour.
And Tropical Storm Noel, that's right. It's still hurricane season, bringing lots of rain as it passed over Haiti early this morning. Noel is the 14th-named storm of the Atlantic season and it could dump close to a foot of rain on the Dominican Republic, Cuba, Haiti and Jamaica, and potentially bringing killer flash floods and mudslides.
The Boston Red Sox have swept their way to their second world series since 2004. They beat the Colorado Rockies 4-3 at Coors Field last night. Pitcher Jon Lester got the win after coming back from cancer and Mike Lowell named most valuable player.
CHETRY: Well, there's some new rules for lobbyists trying to influence lawmakers, this after some politicians are on trial for corruption. Now there's a thick new ethics rule book to play by this year but how much of it will make a difference? Jennifer Eccleston has been looking into this one. She's in our Washington bureau this morning. These rules just put in place and already it seems people are finding ways around them?
JENNIFER ECCLESTON, CNN CORRESPONDENT: At least they're trying. These rules were signed into law last month. They were said to change the way business is done in the nation's capitol. But politicians in watch dog groups called it a watershed moment. Lobbyists and their advisors however say it's pretty much a waste of time. The new law bars lawmakers and aides from accepting any gifts, no matter the dollar amount or meals and trips from lobbyists and imposes stiff penalties and possible prison time on lobbyists who do.
(BEGIN VIDEOTAPE)
LITA MITCHEL (ph): I think there's a lot of smoke and mirrors.
ECCLESTON: Lita Mitchel (ph) is a political law expert.
MITCHEL (ph): People shouldn't have to worry about serving a bowl of chili at a bible study to a senate staffer.
ECCLESTON: Her firm counsels lobbyists about how to deliver political perks legally and hundreds have called on them so far.
UNIDENTIFIED MALE: They have high-priced lawyers who will tell them what the rules say and don't say.
ECCLESTON: One rule stipulates that lobbyists can't buy politician's tickets to events like this, a black tie gala. So tickets are often donated back to event organizers along with the list of lawmakers that lobbyists want seated at their table.
UNIDENTIFIED MALE: That example to me is an outright circumvention and in my view, is illegal.
MITCHEL (ph): That's not new. What's new is now people are having to abide by the rule that's been the rule for a long time.
ECCLESTON: Another new rule says politicians who travel on corporate jets must pay the associated price tag, possibly tens of thousands of dollars. Before they paid the equivalent of a first class ticket, but lawmakers are asking for extra time to comply on that rule, saying they needed to figure out how much it costs to charter a plane.
UNIDENTIFIED MALE: These rules say, end, end of game. You get to deal with life the way the rest of the people that America deal with life. You pay your own way.
(END VIDEOTAPE) ECCLESTON: Now even before these new ethics rules were implemented, lawmakers were barred from accepting expensive freebies but there were few risks for noncompliance and the rules did not govern lobbyists. Now they are enforced by the Department of Justice. If the lobbyists break the rules, they too could face a $200,000 fine and possibly five years in jail.
Kiran.
CHETRY: All right. We'll see if people start applying that rule book and using it in everyday life. Thanks a lot, Jennifer.
Homeland Security Secretary Michael Chertoff says heads may roll in the wake of last week's fake FEMA news conference. Listen to this.
UNIDENTIFIED MALE: Are you happy with FEMA's response so far?
UNIDENTIFIED MALE: I'm very happy with FEMA's response so far.
CHETRY: That was a sample of the press conference. The problem is, there were no reporter there is. The questions that were being lobbed at FEMA Deputy Administrator Harvey Johnson about the wildfires were actually coming from FEMA's own employees. Chertoff isn't mincing words when it comes to what he thinks about the embarrassing debacle.
(BEGIN VIDEO CLIP)
MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: I think it was one of the dumbest and most inappropriate things I've seen since I've been in government. I made it unambiguously clear in Anglo-Saxon prose that it's not to ever happen again and there will be appropriate disciplinary nah action taken against those who exhibited what I regard as extraordinary poor judgment.
(END VIDEO CLIP)
CHERTY: Well, FEMA is apologizing, saying the questions asked were based on reports' own questions and the whole thing was put together at the last minute so that meant real reporters didn't have time to make it to the press conference. John Philbin, FEMA's Director of External Affairs, said it was "absolutely a bad decision." Philbin meanwhile begins a new job today. He's been named as the new head of the public affairs at the office of the director of national intelligence.
MARCIANO: Well, the Gap is on the defense this morning after children as young as ten were found making clothes at a sweat shop in India.
CHETRY: Reports are saying some of the children videotaped working as long as 16 hours a day in terrible conditions. Gap first learned of the allegations last week. Our own Alina Cho talked to its president who says the shop was in direct violation of Gap's policies and that any clothes made children will be destroyed. MARCIANO: So we want to know what you think. The holiday season is coming up, given this report and Gap's response, will you continue shopping at the Gap? Cast your vote at CNN.com/am.
CHETRY: And right now let's take a look at our "QUICK VOTE." Only 16 percent say they will continue to shop at the Gap. 84 percent saying no. We're going to continue to tally those votes throughout the morning.
MARCIANO: More choices on your TV, "QUICK HITS" now, the FCC chairman says it will hand down a huge defeat for cable companies, by avoiding thousands of exclusive contracts with apartment buildings. That could give tenants the opportunity to shop around, maybe go satellite or get cable TV through phone company like Verizon or AT&T.
The movie "Saw 4" cut through the competition at the box office this weekend. The fourth installment of horror flick took in $32 million, nothing like a horror flick around Halloween.
Disney's "Dan in Real Life," starring funny man Steve Carell, came in second earning $12 million.
He was sent to prison for having consensual oral sex with an underaged girl now he's resuming life as a free man. Genarlow Wilson is speaking out for the first time since he got out.
For a condition that could be so devastating it's hard for doctors to spot early on. Coming up, two new reports out today that might help doctors better identify autism. That's coming up in the next hour of AMERICAN MORNING.
(COMMERCIAL BREAK)
MARCIANO: The San Diego fires destroyed almost everything Jim and Carol Wall (ph) had but not their sense of humor. The couple stood in front of what used to be their home with a huge sign that said "finally no termites."
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: At least it's a little humor in the face of something so bad like this.
JIM WALL (ph): Battling termites for years so finally, finally, all 132 million of them are gone.
MARCIANO: The Walls (ph) say they just wanted to lift their neighbor's spirits and show them that life does go on.
(END VIDEO CLIP)
CHETRY: Well, you've got to hand it to them they did keep up their sense of humor and no termites.
53 minutes past the hour. Stephanie Elam is in for Ali Velshi "MINDING YOUR BUSINESS." I've been peppering you can w questions during the break.
STEPHANIE ELAM, CNN CORRESPONDENT: I think we're noticing that, Rob.
CHETRY: There's no good news.
I asked her the weak dollar, oil trading at an all-time high. What is going on?
ELAM: There's a lot going on. That's part of the issue but one of the main things I want to tell you about, we'll talk about oil in six minutes, is the reason that there's been so much about Merrill Lynch. It started on Friday. We're taking a look at the CEO. Reportedly according to "The Wall Street Journal," Stan O'Neal is on his way out. This is news that we started hearing after the write- down came in much larger than expected. They were looking for a write down of $8.4 billion in the third quarter and the vast majority of that was actually related to this revaluation of mortgage-related assets. Obviously this has to do with the credit crunch that we saw this summer. Originally it was supposed to be $4.5 billion, so obviously this was a huge jump.
The other thing that really hurt Mr. O'Neal on this particular story, the fact that he reportedly went to Wachovia and asked if they were interested in buying Merrill Lynch but he did that without going to the board first and that goes against their protocol. So it looks like he's on his way out. The first person being named here to replace him is the Black Rock CEO. His name is Lawrence Fink. He actually, in case you don't know, Merrill Lynch is a 49 percent owner of Black Rock so it's kind of within the company name that we're looking at. Merrill Lynch futures are up on the way he may be out. It is doubling the firm's profit in 2003 and 2006 so he did do a lot there in his five years at the helm but things are changing. Looks like he'll be out today.
MARCIANO: The Merrill Lynch bull is still there?
ELAM: I don't think he gets to take that with him.
CHETRY: You're blaming Merrill Lynch then for the oil?
ELAM: For the oil. No, Kiran said that, I didn't. We will look at oil because obviously a lot of people get freaked out when you hear $90 a barrel.
CHETRY: Because it's getting cold in many parts of the country. All right. Thanks Stephanie.
MARCIANO: Thanks Stephanie.
Well, here's a look at stories you can't miss. What do you think of President Bush, Barack Obama, Princess Diana and Pocahontas have in common?
CHETRY: How about this one? Well they all ancestors in common so I guess technically they're related. This is a hoot. This was from the "New York Post." They actually paid one of those genealogy companies to run the backgrounds of all these people. It turns out President Bush is related not only to Dick Cheney, and Barack Obama and John Kerry but Princess Diana, Pocahontas? Is that Celine Dion in bottom right corner? It's very interesting. The reason we're talking about this thought is there are new ways thanks to DNA advancements and Internet advancements to find out who your ancestors are.
MARCIANO: We truly are all brothers and sisters.
CHETRY: I guess we are. We'll talk more about looking up your own family tree. It's pretty neat. We'll show you how to do it. The next hour of AMERICAN MORNING starts right now.
Deadly inferno, the dramatic home video of a beach house up in flames trapping college kids inside.
UNIDENTIFIED FEMALE: We have suffered a terrible tragedy.
CHETRY: How some managed to get out alive.
A CNN first.
WILSON: Everything that I've endured all made me strong he as a person.
CHETRY: Genarlow Wilson's first interview out of prison after a court finds his sentence for consensual teen sex cruel and unusual.
WILSON: These gentlemen were doing their job. I don't place the blame on any of them.
CHETRY: Plus hidden dangers. Things around the house that could put your child's life in danger on this AMERICAN MORNING. We're going to show you what to look out for and make sure your house is safe for your kids.
Welcome. By the way, it's Monday, October 29th. I'm Kiran Chetry.
MARCIANO: John Roberts taking a well-deserved day off. I'm Rob Marciano. There's a lot of things going on today.
CHETRY: That's right. A tragic situation, two college campuses reeling after seven students were killed in a beach house inferno. This was home video shot of an incredible fireball just swallowing up a home on Ocean Isle Beach in North Carolina. More than a dozen college kids lived there. Six students from the University of South Carolina died a long with one from Clemson University. Witnesses say there were people on the ground screaming. One of the six survivors escaped by leaping out of a window and into the water.
(BEGIN VIDEO CLIP)
BETTY SMITH, NEIGHBOR: I opened the door, on the "T" canal on the end I could see the house engulfed in flames. When we got out there we could hear things exploding, windows were like you could hear breaking.
(END VIDEO CLIP)
CHETRY: And there's what remains now, a charred frame and the stilts on which it stood. Both universities are open today. There are grief counselors on hand to deal with students who need to talk. Federal investigators are on scene. There's no word on how it started.
Rob.
MARCIANO: Well Kiran, hurricane season not over just yet. Tropical storm noel, there it is on the satellite picture bringing lots of rain over Haiti earlier this morning. We're getting I-reports in overnight Noel could dump close to a foot of rain on the Dominican Republic, Cuba, Haiti, Jamaica, triggering killer mudslides. You see the rainfall moving northward toward some of the islands.
CNN is of course your hurricane headquarters. Jacqui Jeras is tracking Tropical Storm noel. Good morning, Jacqui. What is the storm doing?
JERAS: Moving slowly and about to make landfall, just pounding Haiti at this time, Rob, with torrential downpours, very concerned about flooding along with landslides and mudslides. The center of circulation just to the south, right around here, just south of Port- Au-Prince. It will slowly make its way over the island throughout the day today, and it will be weakening a little bit as it does so. It's very rugged terrain here but it will likely intensify again once it makes its way back offshore. So tropical storm warnings have been issued for the southeastern Bahamas and also for the Turks and the Calicos Islands. There you can see the intensity and what it's expected to do overnight and into tomorrow so still holding as a strong tropical storm.
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