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Irene Batters Bahamas; New Cracks in Washington Monument; National Cathedral Damaged by Quake; Steve Jobs Resigns as CEO; What Should Happen if Gadhafi's Captured?; Trapped Journalists Were "Living In Fear"; Bracing For Irene

Aired August 25, 2011 - 06:00   ET

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


ALI VELSHI, CNN ANCHOR: Hurricane Irene barreling through the Bahamas right now. I'm Ali Velshi. Fears of the United States may be next. Officials warning some coastal residents to get out or get ready.

CHRISTINE ROMANS, CNN ANCHOR: Walking free from the hotel. I'm Christine Romans. Thirty three journalists including our very Matthew Chance, they are out this morning and they are talking after a terrifying ordeal held at gunpoint by Gadhafi loyalists who are growing more desperate by the second.

CAROL COSTELLO, CNN ANCHOR: And it is the end of an era at Apple. I'm Carol Costello. Steve Jobs, the creative force behind Apple, resigns. What will this mean for the company? The change the way you live on this AMERICAN MORNING.

VELSHI: Well, good morning to you. It is Thursday, August 25. Welcome to AMERICAN MORNING. Every day, it has been something else, something big happening.

COSTELLO: We want it to stop.

ROMANS: I know. I need a flashlight, batteries.

VELSHI: This hurricane is dodging all over the place, but it is making landfall somewhere.

ROMANS: That's right. Hurricane Irene ripping through the Bahamas right now. In the East coast of the United States trying to figure out where it could land. The Category 3 storm delivering powerful blows to the south eastern and central islands.

It is 115-mile-per-hour winds, heavy rains causing extensive damage and in some cases ripping homes right off of their foundations. Now Irene is making its way towards Nassau.

Our Jim Spellman is there live with the latest. Good morning, tell us obviously you are getting blown around there. Tell us what the latest is on the ground.

JIM SPELLMAN, CNN CORRESPONDENT: Christine. The eye of Irene is about 80 miles away from Nassau. Getting pounded all night with these high winds, easily sustained tropical storm force winds and already some of the streets here have high water on them. Storm surges is one of the big concerns here, very flat island here and really not very much room. We've only got 20 miles wide for people to get out of the way. Unfortunately, on our radar live location this morning, we didn't see any signs of major damage and even the lights are still on here.

So if you can keep your fingers crossed and make it through the next few hours of major damage, maybe they will call this a near miss than a hit. Christine.

ROMANS: All right, Jim Spellman. Thank you so much as that storm heads towards Nassau. Thanks, Jim.

COSTELLO: Well, you heard Jacqui Jeras say the 5:00 a.m. Eastern "WAKEUP CALL," she read those storm watches that were issued for the Carolinas. Jacqui is, of course, still watching the hurricane and where it is going. So I'm just hoping that it won't. I hope it takes the right turn. I'm keeping my fingers crossed.

JACQUI JERAS, AMS METEOROLOGIST: It could do that, but it is looking less likely that's going to happen actually, Carol. The models have been lifted westward back the other way and basically there is a cold front here across the upper Midwest.

This cold front is probably not going to be as strong as what we thought. That's going to, unfortunately, not push it out as far as what we are originally thinking. So that's one of the big players we are talking about.

All right, here are those watches you pensioned. A hurricane watch now has been issued from the Virginia/North Carolina state line down to surf city. Tropical storm watch has been issued from Surf City down to the beach.

This means hurricane and tropical storm conditions are expected in about 48 hours. So we are talking Saturday morning when you start to feel the impact from this storm. Now, Jim Spellman certainly feeling it now and the center right near the island.

So it has not gotten the worst conditions yet up towards Nassau or even into Freeport. This thing is still some 700 miles away, say, from North Carolina. But the U.S. impacts are going to be felt already today. Yes, across the state of Florida.

Rip currents expected, beach erosion here and wind advisories into the interior as the storm stays maybe some 200 to 250 miles offshore. So Florida will feel it, but you are not going to get the worst of the storm for sure. Some changes in intensity can be expected.

This could go back up to a 4 then probably down to a 3. We go through eye wall replacement cycles as we call them. So those changes can be expected. Now, timing for the Carolinas, probably late in the day on Saturday or Saturday night.

After that, we will watch it scrape on up towards the northeast and still a very big cone of uncertainty this far you on. If we get that good case scenario you are talking about, Carol, we still think if it misses landfall in the northeast, it is still going to have a big impact, lots of wind and lots of rain.

Potentially hundreds of thousands of people without power and a lot of river flooding expected, too. Worst case scenario would be two landfalls across the outer banks and then on up here, maybe towards Long Island or towards Providence.

We are just going to have to wait and see. It will be a long ride here on Sunday. We have two days to get ready for this storm. If you haven't done it now you need to do it.

COSTELLO: That's right. Christine is making her list. She's going to get a flashlight.

ROMANS: Now I'm back to the flashlights, batteries, water, whatever -- whatever I have to do.

JERAS: First aid kit, batteries, NOAA weather radio.

ROMANS: Every scenario you give us, it will be wet. There will be flooding and issues with people. Millions of people up and down the coast no matter what. All right, thanks, Jacqui.

VELSHI: People in the northeast are still feeling the effects of the earthquake from this week. A 4.5 magnitude aftershock rattled eastern Virginia overnight centered about five miles from the town of Mineral. The aftershock is the fourth but strongest from the initial earthquake, 5.8 that hit the east coast on Tuesday.

No reports of any damage from the overnight aftershock. While assessing the damage from today, if from Tuesday's quake, engineers discovered three, four significant cracks at the top of the Washington monument.

Park service officials say pieces of mortar fell inside the observation area. The 137-year-old monument is now closed indefinitely until engineers can verify its structural integrity.

Washington national -- Washington national cathedral also sustained significant damage from Tuesday's quake. Church officials say three spires, gargoyles and other decorative features came crashing down to the ground. The cathedral will stay closed at least through Saturday. They're trying to check that out and see what else is damaged there.

COSTELLO: Also developing this morning, Steve Jobs, man who revolutionized the way we use cell phones, computers, listen to music, he resigned as Apple's CEO. Jobs has long struggled with health problems and has been on medical leave since January.

ROMANS: Following last night's announcement shares of Apple started sliding, now down about 5 percent in after-hours trading. Keep in mind those shares are up about 400 percent over the past five years. Poppy Harlow joins us with a look at the man and his legacy and how important he is to Apple. Good morning, Poppy. POPPY HARLOW, CNNMONEY.COM: And let's not forget that he is an integral part of this company. Steve Jobs is going to stay on as chairman, but he said that it has come time for him to step down from the top spot of the company.

There has perhaps never been as visionary a leader in business, not just technology, but across business. He really was the one that led the turnaround of Apple. It is a turnaround of a company that will go down in the history books.

(BEGIN VIDEOTAPE)

HARLOW (voice-over): The impact was immediate. Apple stock fell 5 percent in after-hours trading Wednesday when Steve Jobs announced he is stepping down as CEO. Fans of Jobs were surprised by the news.

UNIDENTIFIED FEMALE: He resigned?

HARLOW: Yes.

UNIDENTIFIED FEMALE: I'm sorry to hear it because he was so great for the company. He's so creative and so innovative.

HARLOW: Jobs, who has been on medical leave since January, released this statement. I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I would be the first to let you know. Unfortunately, that day has come.

UNIDENTIFIED MALE: It is hard to overstate just how important Steve Jobs has been to business, to the economy, what he has done, because he's really revolutionized so many businesses.

HARLOW: Computers, mobile phones, digital music, Jobs' influence has been unparallel. His latest product, the iPad, continues to break records. Analysts say it is the fastest selling technological device ever. Jobs co-founded Apple in 1976 from his family's garage. Nine years later a power struggle led to his exit.

But Jobs returned again in 1996. Soon after becoming CEO and transforming the company into what it is today, one of the biggest corporations in the world worth nearly $350 billion. Earlier this month, Apple briefly passed ExxonMobil as the stock market's most valuable company.

UNIDENTIFIED MALE: iPad, a phone. Are you getting it?

HARLOW: But it is not only because of jobs' innovation. He's also a brilliant marketer.

UNIDENTIFIED MALE: The secrecy in the kind of theater that Apple brings to every product launch, every other company in the world, whether they are in, you know, electronics, consumer electronics, clothing or automobiles, they can learn from Apple and what they do.

HARLOW: In the only commencement address Jobs ever gave in 2005 at Stanford University, he touched upon the secret of his success. STEVE JOBS, FORMER APPLE CEO: The only way to do great work is love what you do. If you haven't found it yet keep looking and don't settle.

(END VIDEOTAPE)

HARLOW: I think it is fair to say that is exactly what Steve Jobs has done and certainly will continue to do at Apple. He also said in the very famous commencement speech at Stanford, your time is limited. So don't waste it living someone else's life.

COSTELLO: When you look at his health condition, it makes you wonder. He had pancreatic cancer, had liver transplant, but he still came back and worked for a time at least. So is it because of his health that he's sort of taking on another role at Apple?

HARLOW: It was a very short statement that we got last night from Steve Jobs to the Apple board and Apple community. He didn't specifically say that, but in the statement he did say if the time came where I could no longer run this company I would let you know and this is the time.

You have to read through the lines did and look at a man that perhaps loves nothing greater than this company that he built from the ground up. There's no reason he would not desire to be at the helm of this company.

At the same time, it is important to know that this is a company with a plan. They knew that this may come and Tim Cook, the former CEO, who will now be the CEO, is someone that's been groomed for this position. So Christine, you said shares sold off. They did. They're up 400.

ROMANS: I always try to put it in perspective because overnight, you know, people are saying should we sell these shares? The stock is -- has just been such a boon for people that owned it for a long time.

The question is in my mind three years, five years out, when the pipeline of products needs to be refreshed, they need a new idea, do they have the infrastructure and the kind of culture at Apple that a lot of people are coming up with great ideas and not just --

HARLOW: They do have, as we were talking about earlier, pretty strong bench of creative designers, innovators, what I have learned. It is a private company, but it is a company that's open enough to allow innovation. We have seen it play out.

At the same time, you have to decide if you are a share holder in this company and if you are interested in buying it. Is it a company bigger than a man? Is it a company the culture has been fostered strong enough to live when this pipeline of products is gone?

That's the question. This is all going to be in the hands of Tim Cook who's now going to take over for Steve Jobs and I want to push you to cnnmoney.com. There's a great piece that talks about who he calls the genius behind Steve Jobs and that is Tim Cook. ROMANS: Awesome.

VELSHI: In fact, great coverage all over CNN Money today. There must be at least eight or 10 articles. Anything you ever wanted to know about Apple is there. I have been reading it for several hours now. Thanks.

COSTELLO: Thank you, Poppy. Fascinating. Just ahead on AMERICAN MORNING, some scary moments for fliers after they landed when a Jetway gave way.

VELSHI: All right, plus, Texas Governor Rick Perry has been in the 2012 race for less than two weeks, but already he has a new and lofty title. We will tell what you it is after the break. It's 12 minutes after the hour.

(COMMERCIAL BREAK)

VELSHI: You know, this isn't even one of those things I worry about given how much I fly, so I just don't think it's going to happen. Two people were hurt at Los Angeles International Airport last night when a Jetway, the bridge between the plane and terminal, collapsed. Wouldn't even occur to me that would happen?

The airport says it happened as people were leaving an American Airlines plane that came in from Chicago. Two people fell about -

ROMANS: Oh, my gosh.

VELSHI: -- 10 feet when part of this thing gave way. They were hospitalized and the fire department came in with a stair cart to get the others out. Wow.

COSTELLO: That's funny because I'm - I always fear that it will disconnect -

VELSHI: That's exactly right. Where as you are getting on the plane, it pulls back or something.

COSTELLO: -- that gap between the two. Yes.

VELSHI: You never thought it would just collapse. That's interesting.

ROMANS: I kind of hurry over that little -

VELSHI: Just jump in and get in. See, I hate it when you are lined up there like totally because being one of those jerky movements and then -

COSTELLO: Yes.

VELSHI: -- you know?

COSTELLO: And it also toppled down.

VELSHI: But hopefully nobody is injured very seriously on this, yes.

COSTELLO: Right.

A Russian cargo rocket on its way to the International Space Station crashes in Siberia. It happened within five minutes after takeoff. The unmanned rocket was carrying more than three tons of food and supplies. Officials say it doesn't threaten the six astronauts aboard the International Space Station. They have more than enough supplies to hold them over. Russia has grounded all of these rockets while they investigate the crash.

VELSHI: Yes. They went out of their way to say they are oversupplied. There's lots and lots of food.

ROMANS: Yes. But if they're looking for a change of sceneries for -

VELSHI: Right.

ROMANS: -- dinner, then they didn't get it.

VELSHI: They're going to eat the same stuff.

ROMANS: And Texas Governor Rick Perry's campaign for the Republican presidential nomination is off to a powerful start. After declaring just 12 days ago, Perry is now the front runner in a brand-new poll.

According to Gallup, 29 percent of Republicans and GOP leaning independents favor Perry. Mitt Romney comes in second with 17 percent. So that's a double-digit lead according to this poll for Perry. Then there's Ron Paul with 13 percent and Michele Bachmann, the winner of the Iowa Straw poll, she comes in with 10 percent.

COSTELLO: Now is your chance to talk back on one of the big stories of the day. The question for you this morning, what should happen if Moammar Gadhafi is captured?

Moammar Gadhafi remains at large. The slippery dictator has evaded capture only to pop up on the radio vowing to fight against the rebels for months or even years. Gadhafi's spokesman has also added we will turn Libya into a volcano of lava and fire under the feet of the invaders and their treacherous agents.

While we all wait important for the hot magma to start flowing, Retired Major General Spider Marks says this kind of rhetoric closes the door to a peaceful surrender by Gadhafi.

(BEGIN VIDEO CLIP)

RET. MAJ. GENERAL JAMES "SPIDER" MARKS, U.S. ARMY (voice-over): -- needs to shoot him in the face or - and I don't know that there is an alternative.

(END VIDEO CLIP)

COSTELLO: Libyan rebels have now put up a $1.4 million bounty to anyone who kills or captures Gadhafi. Still, knowing the eyes of the world are upon them, the rebels have also said they would offer Gadhafi a fair trial if captured alive.

The International Criminal Court at The Hague wants Gadhafi, too. It has warrants out for the arrest of Gadhafi and one of his sons. We know what a criminal trial in The Hague would look like.

If it took place in Libya, would it resemble Hosni Mubarak's trial in Egypt or Saddam Hussein's trial in Iraq? Remember, Hussein was found guilty and then hanged. And a videotape from his execution showed people taunting him and that became an international controversy.

So the "Talkback" today, what should happen if Gadhafi is captured? Facebook.com/AmericanMorning, Facebook.com/AmericanMorning. I'll read your comments later this hour.

ROMANS: All that big talk by - by Moammar Gadhafi and Fouad Ajami, the Middle East scholar, yesterday said, yes, you heard stuff like that from Saddam Hussein when he was captured, I'm Saddam Hussein, the President of France and I would like to negotiate -

VELSHI: The president of Iraq.

ROMANS: -- president of Iraq and I would like to negotiate.

VELSHI: Yes.

COSTELLO: Remember that trial, though.

VELSHI: I wonder how those guys used to communicate. And say, hey, I can say something crazier than you can. Flowery - you have to admit, flowery language.

ROMANS: That's true.

All right. A new twist this morning in the disappearance of an American woman who went missing in Aruba a few weeks ago, CNN has learned that the man who traveled to Aruba with Robyn Gardner is the beneficiary of her $1.5 million accidental death policy. Gary Giordano maintains that Gardner disappeared while snorkeling with him. He is being held in Aruba as a suspect in the case.

VELSHI: Casey Anthony reported for probation in Florida last night. An Appeals Court ruled that she must serve a year after being convicted on bank - on check fraud charges. Her lawyers argued that she completed her probation while in jail. No word yet where in the state she will finish her sentence. Anthony, as you know, was acquitted of murder charges in the 2008 death of her daughter Caylee.

ROMANS: Coming up on AMERICAN MORNING, how many beans for your morning coffee? Coffee prices on the move. You're going to like the direction they are going this time. We're "Minding Your Business" next.

VELSHI: And Hurricane Irene may be targeting the United States next. The Eastern Seaboard on alert. And North Carolina residents, particularly those in the outer banks, warn to get ready or get out. We've got a live report coming up. (COMMERCIAL BREAK)

ROMANS: "Minding Your Business" this morning.

Seeing some volatile trading of stocks futures so far. Right now, futures on the NASDAQ and S&P 500 are trading lower. Dow futures are up slightly. Wall Street still holding out hope that Federal Reserve Chief Ben Bernanke could announce some sort of new measures to help the economy in his big speech on Friday.

Potential market mover today, though, the weekly jobless claims report. That comes out about two hours from now.

Wall Street will be watching Apple stock today. It's down about five percent in after-hours trading since Steve Jobs officially stepped down as CEO yesterday. $52 billion, that's how much has been lost so far in futures trading value of S&P 500 stocks on that news. But keep in mind Apple shares are up almost 400 percent over the past five years, so five percent, put that in perspective.

Gold prices retreating from record highs this morning. There was a steep drop of about five percent as investors felt more confident in the economy after a strong report on new durable goods orders. Those are long-lasting manufactured goods yesterday. Gold futures trading at about $1,700 an ounce right now.

Good news for you caffeine junkies. Kraft is cutting the cost of its Maxwell House Coffee brands six percent. That's about 20 cents less per pound. And J.M. Smucker Company cuts its prices by about that much last week for its Folgers and Millstone brands. Coffee futures have dropped about two percent in the last six months. Thanks to better coffee-growing weather conditions and you're going to feel it in your cup of Joe.

Google has agreed to pay $500 million to settle a Justice Department lawsuit over illegal drug ads. The DOJ says that's one of the largest settlements ever in this country. Online Canadian pharmacies were advertising drugs to U.S. consumers illegally on Google's site. The settlement represents the amount of money Google made from that program.

Wall Street's CEOs, they're fed up with Washington and they're hitting lawmakers where it hurts - in the wallet. A hundred CEOs signing a pledge to stop all political campaign contributions, but major hit with the upcoming election. Starbucks' CEO Howard Schultz leading the pack. He says - he reached his breaking point during the debt ceiling debate. He's cutting off all of these campaign contributions.

AMERICAN MORNING will be back right after this quick break.

(COMMERCIAL BREAK)

COSTELLO: Just about 30 minutes past the hour. That means it's time for this morning's top stories.

Hurricane Irene barreling through the Southeastern and Central Bahamas right now. The Category 3 storm ripping some homes off of their foundations. Hurricane watches have been issued for parts of North Carolina. We'll have a live report from there in just a few minutes.

Wall Street will be watching Apple stock today after Steve Jobs officially steps down as CEO. Jobs, who previously battled pancreatic cancer, has been on medical leave since January. In a letter yesterday, Jobs wrote he's no longer able to fulfill his duties and expectations. He will stay on as Apple's chair. Apple stock fell nearly five percent in the after hours of trading yesterday.

Die hard Gadhafi loyalists doing battle with rebel forces in Tripoli. CNN's Sara Sidner reporting that smoke has been rising from the Bab al-Aziziya compound. Gadhafi still on the run, but now has a $1.4 million bounty on his head. That's the reward being offered for his capture - dead or alive.

ROMANS: Now back to Hurricane Irene ripping through the Bahamas right now.

Our Jim Spellman live in Nassau with the latest.

Good morning, Jim. And tell us what's happening around you now.

JIM SPELLMAN, CNN CORRESPONDENT: Hey, Christine.

Well, winds are just really strong right now. The rain has just become a stinging rain. It's been going on for hours but it really picked up as the eye makes its way here. Last update about an hour or so ago, the eye is like 80 miles away from Nassau before it is going to pass. It's going to be many more hours of this kind of impact here in the Bahamas because the -- winds have been felt 200 miles away from the eye of the storm. So, they are going to have to weather this a good part of the day.

So far, I'm really impressed with how well so many of these build rings doing it, even the electricity still on here. They are clearly used though this sort of thing. All of the tourists pulled out pretty much. Cruise ship long gone, the airport closed down. Any tourists that are left are hunkered down in some of the big hotels here which are really built to withstand strong forces.

My biggest concerns are the Bahamians that live in much more modest homes. There's just no place for them to go. When this thing gets to the Carolinas or up the East Coast, people can get on a highway and drive inland away from it. This island normally is 20 miles long, just nowhere for them to go to try to outrun this storm.

When the sun comes up and officials are able to get out, I think that's going to be the biggest concern -- Christine.

ROMANS: Jim, they are expecting you and the island to continue to be battered for the rest of the day then.

SPELLMAN: Yes. Indeed. And -- they are prepared for it here, in a way that a lot of places are. They get storms here all the time. But everybody really took this seriously. When it became a category 3, there was talk it could be even close to a category 4 storm. Everybody here really took it seriously.

There's not a building that I saw here in downtown Nassau that didn't have metal storm shutters up or plywood over it. People here know how to deal with it and they are taking it very seriously.

But, you know, you can only sustain this kind of wind and rain for so long before there is going to be -- to be some damage. It could be pretty significant. Everyone here is keeping their fingers crossed.

I think, again, it is a really good sign the electricity is still on here. And I'm pretty surprised. It is usually the first thing to go.

ROMANS: All right. Jim Spellman in Nassau -- thanks, Jim. Stay safe this morning. We'll check in with you later.

This morning, hurricane watches are now in effect for parts of the North Carolina coast. Officials are warning residents to get out -- or at least get ready. Coastal areas could see at least six inches of rain and tropical storm force winds on Saturday.

John Zarrella is joining me live from Wrightsville Beach, North Carolina.

So, what our colleague Jim Spellman is going through at this moment. That's coming your way.

JOHN ZARRELLA, CNN CORRESPONDENT: Yes. I guess so. It's certainly going to be very close to where we are here at Wrightsville Beach. We are under tropical storm watch here at Wrightsville Beach. Just up the coast starting at Surf City is where the hurricane watch goes into effect.

And, you know, this was the headline in yesterday's paper here, Christine. "Storm watch." And that's pretty much what everybody up and down the East Coast of the United States, certainly from the Carolinas, northward and into New England where you folks are, that's what everybody is doing right now because no one is quite sure what to expect, how close to the coastline Irene will get, how far offshore it might get, where exactly it will make landfall. So, it's a dicey situation for millions and millions of people.

Now, yesterday a lot of folks took advantage of the waves and the little bit of the wind that is starting to blow in from the storm, got out into the surf along the East Coast of the United States. But that's going to become extremely dangerous with the high winds, the high surf and, of course, undertows and rip currents likely to start affecting Florida, the Carolinas, Georgia, over today and into tomorrow.

So that's a question as well. Now, North Carolina is the outer -- barrier islands, issued evacuation warnings and that took place started into effect today, for tourists on the outer banks. Now, a lot of those folks are saying that they are still going to hang around and wait and see.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Going inland or going up north. You live here, you go right back to it again. So, there's no relief going home. It doesn't help a whole lot.

UNIDENTIFIED MALE: Got the National Hurricane Center on my left, watching the storm as it tracks, seems to be sliding a little to the east. We are hoping it passes by and doesn't hit us.

(END VIDEO CLIP)

ZARRELLA: Now, down in south Florida yesterday, my stomping grounds, the Florida Marlins played a double-header against the Cincinnati Reds. Rather than playing a game today because of concerns of the weather was going to start to deteriorate. And according to Yahoo Sports, they only had 347 people in the stands for that first game. Now, that may be attributed something to weather but probably has also a lot to do to the fact the Marlins are in last place -- may not have everything to do with the hurricane.

Anyway, Christine, everybody up and --

COSTELLO: That has to be --

ZARRELLA: Three hundred forty-seven people.

COSTELLO: You are kidding.

ALI VELSHI: Nobody told them that the double-header was reschedule.

ROMANS: More people that work there than are actually --

(LAUGHTER)

ROMANS: Oh, man! Hey, you know, I got to tell you, this is really important. Beautiful beach behind you. You're seeing some good surf. You show those people on their boogie boards, people get hurt and killed every single time.

VELSHI: Because they go out to do that.

ROMANS: They go out and think they're going to be heroes, right? Give us your best --

ZARRELLA: Absolutely. Do not -- one other point, too, for you folks in the Northeast. One key thing: don't buy candles because what happens? The wind blows, your windows get blown out, the candle tips over, now you got a fire to deal with on top of the hurricane. Don't buy candles, folks. Stay away from that.

VELSHI: Batteries.

(CROSSTALK)

COSTELLO: But it is so romantic when you have the candles. It is.

VELSHI: Before it breaks your windows and throws your patio furniture through, hurricane, those moments before are very -- romantic.

ROMANS: Nothing more romantic than the sound of shattering glass.

VELSHI: After it hits --

ROMANS: All right, John Zarrella.

VELSHI: I have a game Saturday night, Phillies game. What do you think?

ROMANS: No. I don't think you do.

VELSHI: Jacqui Jeras, what do you think?

JACQUI JERAS, AMS METEOROLOGIST: Well, you got a better chance Saturday night than you do on Sunday night.

ROMANS: There you go.

(CROSSTALK)

JERAS: Romantic over there.

(LAUGHTER)

JERAS: Crack me up.

By the way, hurricane preparedness, people in the Southeast much more ready for a storm like this than the people in the Northeast. So, you know, follow me on Facebook or on Twitter and I'm going to have tips and we are also going to have more coming up in the 9:00 newsroom show.

So, stay tuned, if you don't know what you are doing because it is a really important thing. I know Carol is calling me over there. I see you.

All right. Let's talk about the watches in place. These were issued as a 5:00 a.m. If you're just waking up, this is new information for you.

Hurricane watches have now been posted from the North Carolina, Virginia, state line, down to Surf City and then tropical storm watches from Surf City southwards. That means that these conditions are going to be expected or possible within 48 hours. We are talking Saturday morning when you are going to feel the impact of this in the Carolinas. We are already feeling this, though -- and in Florida.

Take a look at this map, guys. Here's s a hurricane down here. Look at how huge this thing is. It almost fills in the entire bay area right here along the Florida coast. Beach erosion today, rip currents today and very strong winds along the Florida coast. We can see gusts around, say, 40 miles per hour at times today.

Here's the latest on Irene in terms of intensity, category 3 storm still, 115-mile-per-hour maximum sustained winds. Some changes in intensity are going to be expected over the next 24 hours. It could get a little stronger, it could get a little bit weaker. And then ramp right back up.

Those water conditions are like bath water out here. And this is going to be causing a lot of damage to the central and northwestern Bahamas throughout the day for today.

Now the track, we have already started to see that pull as of yesterday towards the Northwest. It will be waiting for more of that turn out to the north. When that happens, we'll have a better idea of it if it hits the outer banks or not.

It's a tricky situation when you are talking about going parallel to the coast because just a little bit of a wobble with major hurricanes often do, means all the difference between maybe landfall or maybe not.

All right. So, we are talking Saturday here and heading through the day into Sunday morning. The Northeast, you need to be ready now. But this is going to be an all-day Sunday event for you.

Worst case scenario, we could have two landfalls here. Best case scenario, we are going to pull out of there, but we are still going to be seeing major impacts of flooding, power outages. Best thing I can tell is it goes up the coast, it's going to encountering wind shear.

And also take notice, the water temperatures up here are much cooler. So, it will be a weakening storm. We would be talking about maybe a category one, maybe a two, as it heads into the Northeast, as opposed to a three or four like the Carolinas are going to experience.

VELSHI: That's big.

COSTELLO: That is big.

ROMANS: It's a big storm.

VELSHI: It's big and powerful. Yes. And you are so right about people around here don't think about it the same way that they do in the South or in the coastal areas.

ROMANS: I already heard people talking about --

(CROSSTALK)

COSTELLO: -- Maryland.

VELSHI: They think about tonight Maryland. Up here people sort of pooh-pooh it. Fizzle out before it gets here.

ROMANS: But I heard people on the streets talking about surfing the Jersey shore, you know? And I started thinking, wow, you know, that just makes me so nervous, 17-year-old kids talking about how cool it's going to be to have a big storm coming up the coast. It's dangerous.

JERAS: So dangerous. People will die if they do that. VELSHI: Jacqui, you said people should follow you on Twitter, where do they follow you?

JERAS: Just Jacqui Jeras, @jacquijeras.

VELSHI: OK. Very good. Thanks, Jacqui.

COSTELLO: Thanks, Jacqui.

Just ahead on AMERICAN MORNING: walking free from a Tripoli hotel. That actually was once a prison. Journalists slip out when the men who were holding them at gunpoint realize that Gadhafi is through.

VELSHI: And a police cruiser involved in a head-on crash with a wayward SUV, all of it caught on tape. Oh, there you go. We'll show it to you again when we come back.

Forty minutes after the hour.

(COMMERCIAL BREAK)

ROMANS: Stunning video of a major crash in New Jersey. Sixteen people were hurt after a tractor trailer smashed into a tour bus yesterday. Two passengers with serious injuries.

Officials say the truck jackknifed at some point across the turnpike. But it's unclear what caused him to lose control. The tour bus was headed from New York to Washington.

COSTELLO: Check this out from Oklahoma City. A head-on collision between a police cruiser and an SUV captured by a dashboard camera.

Oh! You can see the police cruiser driving behind that white pickup. Pickup truck swerves out of the way. And moments later, you saw there, he SUV traveling in the wrong direction slammed right into the cruiser.

Remarkably, both the SUV driver and the police deputy, they were able to walk away from the crash. Of course, the SUV driver is in trouble. He has been placed under arrest.

VELSHI: I mean, that's interesting. This truck gets out of the way, obviously, to not hit the thing. But that's always a double jeopardy. You're close behind somebody and get out way and you learn there is a car headed towards you.

COSTELLO: Right. What do you do?

VELSHI: That alone will teach me to drive further behind the car that's in front of me.

COSTELLO: Wow.

VELSHI: Wow.

ROMANS: One and a half car lengths to be safe, Ali. VELSHI: Yes, I don't know if that would have helped them.

ROMANS: I know, you're right.

VELSHI: That's when somebody stops and you don't go into them when somebody is coming towards you. That's an entirely different situation.

ROMANS: That's true. That's absolutely right.

VELSHI: All right. More on the situation in Libya we have been following the last several days. Within the hour, smoke was spotted rising from -- within this last hour, rising from Gadhafi's former compound. There's still no sign however of Moammar Gadhafi.

But, now, there's a price on his head -- $1.4 million reward is being offered by the rebel government for his capture dead or alive.

CNN's Sara Sidner filed this report just a short time ago from near Gadhafi's compound in Tripoli.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT: We are here at Martyr Square, and suddenly, we have been a witness to a huge plume of smoke that we believe are coming from the area around Bab al-Aziziya, if not Bab al- Aziziya itself. There appears to be a firefight still going on in that area.

They did see people coming from one part of Bab al-Aziziya. They're not sure if it was rebels or if it was Gadhafi forces, but they were armed. The situation is still a security threat in and around Bab al- Aziziya. Now, we're seeing very large plumes of smoke from the south of Martyr Square which is in the same area.

The situation is always changing here in Tripoli. One moment, everybody says rebels have control of 90 percent of the city, and next moment, we hear there are some serious problems in sections which they already said they had control of. So, things change very quickly. We do know the city has been relatively quiet until this point in the day, about noontime here.

So, the -- big headline right now at this time is that there is a massive amount of smoke coming from the south of Marty Square near Gadhafi's former compound, Bab al-Aziziya.

Sara Sidner, CNN, Tripoli.

(END VIDEOTAPE)

COSTELLO: After five days of living in fear, 33 international journalists are finally free from the Rixos Hotel in Tripoli, and now, they're telling their stories. They were being held there by pro- Gadhafi forces in one of the last places under his control in the city. One of them was CNN's Matthew Chance who told us in the past few days, they were forced to scrounge around for food. They were in fear for their lives. It was actually his producer, an Arab woman from Jordan, who was critical in negotiating their release. Matthew talked about the five days of terror last night on "AC 360."

(BEGIN VIDEO CLIP)

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: I think the worst time was when we realized quite early on in the situation we found ourselves in, that, you know, we lost control of the situation. That -- you know, all these scenarios started playing out in our heads. We started getting paranoid that, you know, we could be used as human shields if Gadhafi's remnants of his army decided to use the hotel to make their last stand.

Maybe, we were going to be taken prisoner properly. Maybe, we were going to be executed. All these things were ticking through our heads.

(END VIDEO CLIP)

COSTELLO: Of course, Joanna, the producer negotiated this release. She actually talked to these men with guns and said look, it's over.

VELSHI: Yes.

COSTELLO: Moammar Gadhafi is not in control anymore. You don't have to stay here and keep us hostage. Let us go, and it worked.

VELSHI: And Matthew, at one point, I think tweeted that he kind of felt bad for these guys, like they -- they hadn't really -- they sort of missed the fact that this was -- this was done.

COSTELLO: But still, they kept -- they essentially held them hostage in this hotel for five days, so that's very generous of him.

ROMANS: All right. Still to come on AMERICAN MORNING, we asked you what should happen to Libyan leader, Moammar Gadhafi, if he's captured? Boy, you have a lot to say. Your responses are coming up next.

VELSHI: Also, most powerful women in the world. Secretary of State Hillary Clinton is on the list, but there's one woman ranked even higher than she is. It's 48 minutes after the hour.

(COMMERCIAL BREAK)

VELSHI: Fifty minutes after the hour. Here's what you need to know to start your day.

(BEGIN VIDEOTAPE)

VELSHI (voice-over): Hurricane Irene pounds central and southeastern Bahamas leaving behind heavy damage, and hurricane watches have been issued for parts of North Carolina. Evacuations are set to begin this morning.

A $1.4 million reward now being offered in Libya for the capture of Moammar Gadhafi dead or alive. Gadhafi loyalists aren't giving up the fight for Tripoli, however, there are reports of fierce battles with rebels taking place this morning at Gadhafi's former compound.

Steve Jobs, the man behind Apple's iPod, iPhone, and iPad, has stepped down as the CEO from the tech giant that he helped create. Jobs had been on medical leave since January. He's going to stay on as Apple's chairman.

And a pilot and a passenger were hurt at Los Angeles International Airport last night when a jet way collapsed. The two victims fell about ten feet when part of it gave way. The "L.A. Times" reporting that they were taken to the hospital complaining about ankle, back, and neck pain.

Dr. Conrad Murray's attorneys will be in court today. They want the jury to be sequestered when the Michael Jackson trial begins next month. They pointed to the huge media frenzy around Casey Anthony saying this will be even bigger. Murray is charged with involuntary manslaughter in Jackson's death.

"Forbes" presented their annual 100 most powerful women's list. Topping the list is German chancellor, Angela Merkel. Bumping the Secretary of State Hillary Clinton to the number two spot. The list is based on money, rich, and influence.

(END VIDEOTAPE)

VELSHI (on-camera): That's the news you need to start your day. AMERICAN MORNING back right after this break.

(COMMERCIAL BREAK)

COSTELLO: Fifty-two minutes past the hour. We asked you to talk back on one of the big stories of the day. We asked you this question. What should happen if Moammar Gadhafi is captured?

This from Laura, "He should be sent to the Hague. I think it would help give legitimacy to the transitional government and give them enough distance that they could still work with people who supported him if necessary."

This from Brian, "Hopefully, not the way Saddam's death was broadcast. Let him come to trial, but my personal feelings are he will be killed or martyr himself."

And this from Jeff, "They should send him to the international criminal court. To have a viable future, the new regime must be founded on the rule of law. If they just execute him without a trial, how are they any different from the Gadhafi regime?"

Keep the conversation going. Facebook.com/americanmorning, and we'll read some more of your comments a bit later.

ROMANS: In South Africa, they had reconciliation.

VELSHI: One of the best examples ever.

ROMANS: And it was a very -- it was a very interesting model of trying -- people trying to put this all behind them, but that was a much different situation.

VELSHI: Yes, but that's an interesting model. I think they should think about all good options to get this -- to get the new Libya founded as one of your commentators just said on a release --

ROMANS: But all the different ways of moving forward. Moving ahead.

VELSHI: There are some good ways.

ROMANS: All right.

VELSHI: All right. One Vermont boy has a vision. Very interesting. I hadn't thought about it until I first came across this story. Straw-free America. Ten-year-old Milo Cress is on a nationwide tour explaining the impact that straws have on the environment. He says more than 500 million straws go to landfills --

COSTELLO: I love this kid.

VELSHI: Everyday. Every day, 500 million straws. I hadn't thought about it. Weighing only an ounce, they're too small to recycle. So, he is urging restaurant owners to ask patrons if they need a straw instead of automatically giving them one.

(BEGIN VIDEO CLIP)

MILO CRESS, STRAW-FREE CAMPAIGN: Something that I can do something about. This is something that kids can do something about. An average person will use 1.6 straws per day. The most waste management can't take this. They're too small to be recycled.

(END VIDEO CLIP)

VELSHI: He launched his campaign at his website earlier this year. Sound simple, doesn't it? Like, what a neat idea. Stop using so many straws.

ROMANS: And just ask at a restaurant if you need a straw instead of -- common sense problem solver that kid is.

VELSHI: Yes.

(CROSSTALK)

ROMANS: We've stopped using so many plastic bags.

VELSHI: Yes.

ROMANS: You know, we've stopped using so many straws, paper cups at the office. VELSHI: I get asked a lot now. It's becoming more common at a store to say do you need plastic bag?

COSTELLO: That's because you live in New York.

(CROSSTALK)

ROMANS: You don't want a plastic bag, do you?

(LAUGHTER)

VELSHI: I went to buy something the other day and he said, do you want a plastic bag? And I felt like saying like yes.

(LAUGHTER)

VELSHI: They shamed me into not taking one. Some places charge you.

(CROSSTALK)

ROMANS: The east coast quake was the hot topic of the day and all the way into late night. Here's your late night funnies.

(BEGIN VIDEOTAPE)

DAVID LETTERMAN, HOST, THE LATE SHOW WITH DAVID LETTERMAN: Earthquake, it's unusual to get them here in New York. 5.8 on the Richter scale. 5.8. I've had bigger heart attacks than that. Thank you.

(LAUGHTER)

(APPLAUSE)

LETTERMAN: Hillary Clinton suffered some structural damage in her pant suit.

(LAUGHTER)

LETTERMAN: The earthquake was so strong that the Tea Party shifted to the center.

(LAUGHTER)

LETTERMAN: Yes. That's right.

(LAUGHTER)

(APPLAUSE)

(END VIDEOTAPE)

ROMANS: you don't need to stay up late. We're going to give it to you.

(LAUGHTER) ROMANS: There you go.

VELSHI: OK. Coming up in the next hour, Apple, computers, phones, music, and it all happened on this man's watch. Steve Jobs who just resigned as the company's CEO. Stock is already moving on the news. Is the company going to be able to innovate and deliver like it has? What does that mean to your investment? We'll tell you after the break.

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