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American Morning: Wake Up Call
"Super Typhoon" Hits Japan; Lawyer: Iran to Release U.S. Hikers Today; Solyndra Bosses To Plead The Fifth; Clinton Talks GOP Contenders
Aired September 21, 2011 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning to you.
Happening right now: a powerful typhoon makes landfall in Japan. Heavy rain affecting millions. People are stranded. Flights are canceled. And all eyes are on the Fukushima nuclear power plant as the storm heads in that direction.
This might make you feel uncomfortable. OnStar tells its customers: even if you cancel your service, we will continue to track you.
Plus, the feds track down again on a well-known Internet poker company accusing owners of running a global Ponzi scheme.
Good morning to you. It is Wednesday, September 21st. This is your A.M. WAKE-UP CALL. I'm Carol Costello, joining you live from New York this morning.
And we begin with breaking news and good news, I might add, about those two American hikers in jail in Iran. We're getting word now that they're expected to be released today -- sometime around, oh, 3:00 p.m. Eastern Time.
As you know, those hikers have been in prison in Iran since July of 2009. They were in prison. They were hiking along the mountains and supposedly, inadvertently, they stepped into Iran. And they were accused of espionage and of being illegally in the country. They've been in prison in Iran since 2009.
We understand that bail has been paid for both Josh Fattal and Shane Bauer. We understand that bail was up to $500,000 apiece, but the papers are signed now, that bail paid. The two men could be released Wednesday -- at what time? I'm getting a new time.
Six-thirty a.m. Eastern Time. The process will begin. Don't know exactly how long it will take.
But when those men are released, of course, we'll bring that news to you.
In other news this morning, a man on death row in Georgia could have 14 more hours to live. His supporters have that long to get someone to intervene. Troy Davis was convicted of killing a Savannah Police Officer Mark MacPhail back in 1989.
Davis' supporters say there is too much doubt about his guilt, and they're pushing for a judge to cancel the death warrant and are even talking about getting President Obama involved. Prosecutors say the facts don't lie.
(BEGIN VIDEO CLIP)
SPENCER LAWTON, PROSECUTED TROY DAVIS: There are two Troy Davis cases. There is the legal case -- the case in court, and the public relations case. We have consistently won the case as it's been presented in court. We have consistently lost the case as it's been presented in the public realm on TV and elsewhere.
(END VIDEO CLIP)
COSTELLO: Davis supporters across the world are still holding out hope. Amnesty International USA said this, quote, "We're calling on anyone who has any power to stop this grave injustice from occurring."
Davis is scheduled to die by lethal injection at 7:00 p.m. Eastern Time.
Also, Texas plans to execute an inmate today, in a case you might remember. Lawrence Brewer was one of three men convicted of chaining a black man, James Byrd, behind a pickup truck and dragging him to his death 13 years ago.
Also today, President Obama will address the United Nations. The White House says he will talk about the United States' view of the seismic changes over the last few months in the Arab world.
He'll also meet with Palestinian Authority President Mahmoud Abbas. Mr. Obama will try to talk Abbas out of applying for Palestinian statehood. Abbas has said he would make a formal application for statehood on Friday.
A powerful typhoon has made landfall overnight in Japan. Roke is already blamed for at least four deaths, and Japan is facing a potential flooding disaster. The storm could also affect the nuclear plant damaged in the March earthquake.
So, let's check in with CNN's Paula Hancocks. She's in Tokyo. That's about 150 miles from where the storm hit.
Paula, this is being called a super typhoon. It's the equivalent of a major hurricane. Tell us more.
PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, Carol, the residents of Tokyo are starting to feel the effects now of Typhoon Roke. It's not a direct hit on Tokyo. It's going to skirt along the western side. But we are seeing some very significant winds, gusts of winds, and also some heavy rain.
Now, of course, as you say, it did make landfall in the southern part, below Tokyo. Hamimata (ph) is the city close to them. More than 1 million people were told to evacuate. It's unclear how many actually did evacuate. But there are serious concerns of flooding waters up very high in the rivers and in the lakes.
And, of course, there are high concerns of mudslides. We're only a couple of weeks away from typhoon Talas. Now, this was at the start of the month, and was the deadliest typhoon in three decades here in Japan, more than 100 people dead or missing.
Now, there are serious hopes that this isn't going to be as deadly. But, of course, it is 6:00 p.m. at night. It is dark behind me. It may not be until the morning when we actually see how much damage there has been -- Carol.
COSTELLO: Paula Hancocks reporting live for us from Tokyo, thanks so much.
Let's talk more about Roke with meteorologist Rob Marciano. He's also got word about a new tropical storm.
So, want to start with Roke?
ROB MARCIANO, AMS METEOROLOGIST: Yes, we'll start with Roke, not going to affect the U.S., of course, at least for now. It may hit the West Coast at some point.
But Roke, as you mentioned, the equivalent of a major hurricane at one point. This is the NASA satellite which is a close-up visible. You see the well-defined eye there. You know, to get a storm this strong this close to Japan is remarkable.
It's really only about once every decade where you see a direct effect or direct hit from a typhoon, especially one of this strength. All right. There you see it coming on shore a few hours ago between Nagoya and Tokyo. And now still officially a typhoon with winds of 70 knots. So, it will continue to weaken.
But the big story here is not going to be the wind. It's going to be the rain, as mentioned. And these are some of the rainfall totals forecast for the next couple of days here. And the brighter purples indicate over six inches. And some of these areas have already seen six to 10 inches of rain.
And look at Sendai. Now, you know, the nuke issue for the most part contained, but you've got a lot of loose ground up there. You get this sort of rainfall, and you're talking about mudslides and landslides that would happen more readily than an area that has not been affected by a hurricane or by an earthquake.
Let's talk about Ophelia. This storm developed in the Atlantic Basin. And we've been watching it now for a good couple of days. And it's got winds of 45 miles an hour. And the National Hurricane Center named it overnight. So, there you go.
The forecast is for it to continue to spin towards the west. It's got some obstacles to overcome as far as strengthening goes. So, we don't look for it to become a blockbuster at this point. But it is going to traverse across the southern Atlantic, towards the U.S. and may skim the northern islands there.
So that's something we'll have to be concerned about for sure going forward. It's been a quiet couple of weeks here in the Atlantic basin. Obviously, Roke, a historic storm for Japan.
Ophelia not likely to be an historic storm for us, but one that certainly bears watching. We'll talk more in the next half hour -- Carol.
COSTELLO: Busy day for you. Thank you very much -- Rob Marciano live from Atlanta.
Would you ever pay $16 for a muffin or 8 bucks for an eight- ounce cup of coffee? I wouldn't. So why did the U.S. Justice Department do exactly that? A government report shows the department paid those kinds of prices for conference attendees a couple of years ago.
Oh, and it also paid $32 per person for a snack break of CrackerJacks, popcorn and candy bars, makes the bar at the hotel looks like a bargain, doesn't it?
This is priceless, too. Before it happened, the department issued new guidelines on wasteful spending after it served employees $5 Swedish meatballs.
But, of course, the Justice Department does more than wash down fancy baked goods with overpriced coffee. It has shut down a Web site called Full Tilt Poker and declared it a Ponzi scheme that cheated players out of more than $300 million. Several Full Tilt board members have also been charged with crimes.
As you know, it's now -- as you know, it's now legal for gays and lesbians to serve openly in the military, and that has comedian talking or shall we say joking. Here's your punch line.
(BEGIN VIDEO CLIPS)
JAY LENO, COMEDIAN: Now gay couples can enlist, fight overseas, put their lives on the line, all to defend people's right to say they can't get married when they get back home. How about that? Yes.
JON STEWART, COMEDIAN: For more on "don't ask, don't tell," we go to Jason Jones inside Camp Dwyer in Helmand Province, Afghanistan. Jason, what's the situation over there?
Have you noticed any changes at all?
JASOIN JONES: Not really, John. It's like people that work in close quarters and count on protecting each other like family didn't already know the deal. I mean, in fact, you know what they call the repeal of "don't ask, don't tell" around here? No duh Tuesday.
(END VIDEO CLIPS)
COSTELLO: Tornadoes, flooding and fires left behind billions of dollars in damages, but they could also lead to a government shutdown. Really, there are rumblings on Capitol Hill. We'll tell you about those just ahead.
But, first, check out our quote of the day. This is the quote, "Who are the terrorists? Are we the terrorists, or are they the terrorists? Two wrongs don't make a right," end quote.
Find out what Americans say about Americans, coming up. You'll be surprised.
It's nine minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: It is 11 minutes past the hour. This is your "A.M. WAKE-UP CALL. Good morning.
Now back to the quote of the day. The quote is, "Who are the terrorists? Are we the terrorists, as in Americans, or are they the terrorists? Two wrongs don't make a right."
Who said that? Well, it was legendary singer Tony Bennett. He said that when he stopped by Howard Stern's radio show this week. He also went on to say that the war in Iraq was a tremendous mistake.
The two got on the topic of terrorism when Bennett told Stern that back in 2005, President Bush revealed to him that he had made a mistake about the Iraq war. Bennett has since apologized for his comments. He says that they may have been misconstrued.
Time now for your Political Ticker with Tim Farley, host of "Morning Briefing" on Sirius POTUS live from Washington. Good morning, Tim.
TIM FARLEY, SIRIUS XM POTUS: Good morning, Carol.
COSTELLO: Let's talk first about FEMA funds. Congressional leaders are warning about a potential government shutdown over FEMA funding. So, tell us what this is about.
FARLEY: Wow. Where do we start on this?
Well, we have the government funded through September 30th. That's the end of the fiscal year. And as you know, there have been a lot of disasters this year -- tornadoes in Joplin, not to mention the hurricane up and down the East Coast. Craig Fugate, FEMA administrator, has said a while back, we need more money in the disaster relief fund.
Republicans went ahead and passed what they call a continuing resolution, it's something that would take us through part of November. In that is the money for FEMA. But there's also a cut or two in there that Democrats are not too keen on.
The Senate has yet to pass the bill. Although they have a bill that they did pass that goes back to the House that doesn't include the cuts on it. And the House is saying, well, if you're not going to include the cuts, we're not going to pass it.
Now, Republicans are saying, we're going to get this done -- Republicans in the Senate. Senate Majority Leader Harry Reid says I'm not sure we might see a shutdown. This is not going to play very well to people who are looking at flood damage.
And, by the way, to add this, there is a recess next week for the House and Senate. So, they have to get this done or figure out a deal by Friday of this week, Carol.
COSTELLO: There's a recess coming up already?
FARLEY: Yes. We need a break, you know. They've been working hard.
COSTELLO: Yes, they've been working hard at playing politics, haven't they?
On to another topic -- Governor Rick Perry running for the Republican presidential nomination. He is blasting President Obama's stance on Israel. Let's listen.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: The Obama policy of moral equivalency which gives equal standing to the grievances of Israelis and Palestinians, including the orchestrators of terrorism is a very dangerous insult.
(END VIDEO CLIP)
COSTELLO: OK. These comments come as President Obama is negotiating behind the scenes with the Palestinian leader, Mahmoud Abbas, trying to get, you know, trying to make him -- prevent him from asking the Security Council of the United Nations to vote for Palestinian statehood because the United States has to vote no on that, which will put the United States in a tough spot.
So, what do you make of this, Tim?
FARLEY: Well, there's an awful lot of moving parts and pieces to this, as you mentioned, the president speaks today. And we will hear from the Palestinian Authority president on Friday. And next week, the General Assembly takes it up, with or without the Security Council vote and whether the United States vetoes it.
Look, this is a matter of a man running for president. Republicans are not too far apart on their positions. They all pretty much embrace Israel and a rather hard-line stance. Rick Perry's relationship with Israel goes back to the days when he was agriculture secretary in Texas.
Rick Santorum and other candidates, former senator, claims he knows more about Israel.
Also, Mitt Romney was critical of the president's stance. But using words like naivety and appease at a time when the president is getting ready to address the Security Council may not be well advised probably plays well to Republicans. And this is all about the mid- primary.
But I'm wondering how it plays in the world, in general, Carol.
COSTELLO: When some say that the United States should be speaking in one voice when something this important comes up before the United Nations.
FARLEY: Exactly. This is the question of who represents the United States. When the president is at the United Nations, when he's at home, maybe you can say a few things. And I'm wondering if this is going to backfire. But probably not, we've got a long way to go.
COSTELLO: We do. Tim Farley, thanks, as always, for joining us this morning.
A group of Italian scientists on trial for manslaughter. They're accused of failing to predict an earthquake that killed hundreds. We'll get a play-by-play from the trial in 90 seconds.
It's 16 minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: It is 17 minutes past the hour. This is your A.M. WAKE-UP CALL.
We have a bit of breaking news for you right now. And it's actually good news. Two American hikers jailed as spies in Iran are expected to be released today. That's according to their lawyer. So, let's head around the world with Zain Verjee live in London.
Finally, these two guys are going to get out of prison.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: It looks like it. And it could be a big day and a big deal for them here. What happened just a short while ago, we heard that a second judge, and that was crucial, signed the bail paperwork that basically has secured their release. Now, that's according to their lawyer. You'll remember that Shane Bauer and Josh Fattal were convicted in Iran of spying and illegally entering the country.
Carol, they were convicted for something like eight years in jail. Now, they have been there for over two years. What we're understanding from one report, the "Reuters" news agency is saying that in about an hour or so, they will be handed over to the Swiss embassy in Iran.
Why the Swiss? Because the Swiss protect U.S. interests in Iran because the U.S. and the Iranians have no official diplomatic relationship. So, we'll see what happens in an hour. But they look good to go according to these reports.
COSTELLO: We'll keep our fingers crossed. Let's talk about what's happening in Italy. Seven scientists on trial for manslaughter for failing to predict an earthquake?
VERJEE: Yes. Remember in 2009 there was the earthquake in Italy, L'Aquila, that killed about 300 people.
Now, what prosecutors are saying, Carol, is that they're saying that these seven scientists were rough, generic, ineffective and gave a poor assessment of the seismic risk. They say that the whole picture that they presented was inaccurate and incomplete.
And there's this one point that keeps being raised in the media as well. And a lot of people are talking about it, is when the scientists were giving their risk assessment and they were talking to the media, they said toward the end, they were, like, well, anyway, let's all go and get a glass of wine, OK? And then a few days later this massive earthquake happened.
Now, there are a lot of people jumping to their defense saying you can't charge them for not knowing there was going to be this massive earthquake because that's naive and that's unfair. But this is grabbing headlines in Italy.
COSTELLO: So what could happen if they're convicted?
VERJEE: Well, they would face some kind of penalty. It's not clear exactly what they would face or what kind of precedent there is for something like this. They could face jail time, but there's a strong precedent to be made because there are many other countries where earthquakes have happened, and no legal action has necessarily been taken against seismologists and scientists that just didn't read the numbers properly or just didn't know.
COSTELLO: Really, really strange, but we'll see what happens. Zain Verjee live in London -- thanks, as always.
So, what happens if you cancel your OnStar service? Well, there's a hint. Somebody will still be watching you. Details on that in a minute.
But, first, today is, of course, September 21st. It's also world Gratitude Day. It was actually started back in the '70s by the United Nations meditation group. So, happy Gratitude Day. And we're grateful that you're watching.
It's 21 minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: It is 23 minutes past the hour. This is your A.M. WAKE-UP CALL.
We're watching you. Well, OnStar is actually watching you -- even if you cancel your OnStar service. The company says it will start collecting data on the location and speed of OnStar-equipped vehicles and may even sell that information. OnStar says it keeps the connection open in case you want to re-subscribe later. If you want that connection closed, you have to tell them.
It's not often you get to eavesdrop on news this intimate. Just hours after the military's "don't ask, don't tell" policy was repealed, a young soldier picked up the phone to tell his father he's gay. Now that phone call and his father's response to the unexpected news has gone viral.
Here's CNN's Jeanne Moos.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): For months, he was the headless soldier, identity withheld. Then, in one nerve-wracking phone call -- a kind of call that makes you exhale. This gay soldier stationed in Germany --
RANDY PHILLIPS, U.S. AIRMAN: Hey, Daddy.
MOOS: -- came out to his father in Alabama.
PHILLIPS: Can I tell you something?
UNIDENTIFIED MALE (via telephone): Yes.
PHILLIPS: Will you love me, period?
UNIDENTIFIED MALE: Yes.
MOOS: He had waited until the moment that the repeal of "Don't Ask, Don't Tell" officially went into effect.
PHILLIPS: Dad, I'm gay.
UNIDENTIFIED MALE: OK.
PHILLIPS: Like I always have been. I've known since forever. I didn't want you to find out any other way.
UNIDENTIFIED MALE: OK.
MOOS (on camera): After two low-key "OKs," we still didn't know how his father really felt.
PHILLIPS: Do you still love me?
UNIDENTIFIED MALE: I still love you, son.
PHILLIPS: Are you OK, Dad?
UNIDENTIFIED MALE: It doesn't change our relationship.
MOOS (voice-over): What had changed was the 21-year-old soldier's relationship with himself. He started using YouTube as a way to gradually come out.
(on camera): For months, this is how he showed himself in videos, mostly from the neck down, never revealing his face.
(voice-over): In video after video, he documented his coming out process.
PHILLIPS: I told my girlfriend, and hardest -- hardest thing I've ever done.
MOOS: But even on Facebook, he hid his face, even hid behind his beer. When he came out to a soldier friend, he put that on YouTube.
PHILLIPS: I'm gay.
UNIDENTIFIED MALE: It's all good. I couldn't give a rat's ass. Hey, love is love.
MOOS: Love is love -- but tell that to your dad.
PHILLIPS: I thought he was going to be hurt. My dad only has one son. And it's me.
MOOS: Air Force Airman Randy Phillips told us it went better than he'd expected.
UNIDENTIFIED MALE: You're my son, and I'm very proud of you, OK?
PHILLIPS: Yes, sir. Oh, my Lord.
MOOS: Wait a minute, Randy. Not so fast. There is one other matter.
PHILLIPS: Do you want to tell mom for me?
(LAUGHTER)
UNIDENTIFIED MALE: I don't believe so.
MOOS: When Randy called his mother --
PHILLIPS: There was just a lot of silence.
MOOS: But Randy says at least she wasn't angry. His parents didn't ask, but he did tell.
(on camera): It's great to see your head finally.
(voice-over): Finally, the headless soldier has a head, and his dad didn't bite it off.
PHILLIPS: Dad, I'm gay.
MOOS: Jeanne Moos, CNN --
PHILLIPS: Do you still love me?
UNIDENTIFIED MALE: I still love you, son.
MOOS: -- New York.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
COSTELLO: Good morning to you. It is Wednesday, September 21st. This is your A.M. WAKE-UP CALL. I'm Carol Costello joining you live this morning from New York. It's 30 minutes past the hour.
Do not expect the top two bosses at the failed solar panel company, Solyndra, to answer questions about how it went bankrupt after getting a half of billion dollars in federally backed loans. They plan to plead the fifth at a Congressional hearing on Friday, and Republicans are livid. They claim the energy department approved the loan for political reasons pointing to e-mails that show the White House wanted the deal green leaf to job creation.
Solyndra has been a green technology darling in recent years, earning visits from both the president and the vice president. So, even the FBI is trying to figure out how the company went belly up, raiding executives' homes and offices in a criminal inquiry.
Trees crashing into power lines are, apparently, to blame for that big wildfire near Austin that devoured more than 1,600 homes and left two people dead. The Texas Forest Service says gusty winds sent two trees smack into electrical lines, sparked, fell on to dry grass below, and flames erupted. The fire is still burning more than two weeks after it broke out, but it is 95 percent contained now.
We have dramatic new video of that deadly plane crash at a Reno, Nevada air show from a father and his two adult sons who were right there when it happened. But, I'll warn you, it's tough to watch.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: No, no, no, no, no! no!
UNIDENTIFIED MALE: Oh, God.
UNIDENTIFIED MALE: Oh, my God.
COSTELLO (voice-over): Brent Wilson's (ph) son shot that video. Here's what he told Anderson Cooper.
UNIDENTIFIED MALE: To reach out and grab my sons. You know, and that shakes you as a father to your core.
(END VIDEO CLIP)
COSTELLO (on-camera): We learned yesterday that an 11th person has died from injuries sustained from Friday's crash of that vintage World War II-era plane, 70 others were injured.
Jurors could watch a video of Michael Jackson announcing his final tour if Dr. Conrad Murray's defense team has its way. Murray is charged with involuntary manslaughter in the pop star's 2009 death, and his lawyers claim the video shows Jackson's failing health in the weeks leading up to his fatal drug overdose.
Jackson was reportedly furious when the number of concerts was increased from 10 to 50. Opening statements are scheduled for next Tuesday.
Lots of flashing police lights near 1600 Pennsylvania Avenue after a man with a backpack jumped the fence to the White House and took off in full sprint, but it wasn't long before he was caught and arrested. The president and the first lady were not home at the time.
Former President Bill Clinton is weighing in on the GOP field of presidential candidates, and he's praising two of them. Mitt Romney and Jon Huntsman for not denying climate change. Clinton went a step farther in singling out Huntsman for his willingness to compromise. Here's what he told our Wolf Blitzer.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: It appears that Governor Huntsman said he supported the compromise to raise the debt ceiling, because America couldn't afford the economic consequences of debt default.
(END VIDEO CLIP)
COSTELLO: Clinton went on to say that both Romney and Huntsman would lose if anyone thought he was endorsing them.
We heard the warning last week on Capitol Hill how the International Monetary Fund is ringing the warning bell again. This time, we're in a dangerous new phase, but before we get to that, first here's the "Get Smart" question for you this morning. A computer satisfaction report is out this week, so which had a higher rating in 2010? Was it PC or Apple? The answer in 60 seconds. It's 34 minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: Thirty-five minutes past the hour. This is you're A.M. WAKE-UP CALL. Now, back to our "Get Smart" question this morning. A computer satisfaction report is out, so which had the higher rating in 2010? Was it A. PC or B. Apple?
The answer, you probably guessed it, it was B. Apple. But let me tell you, the PC didn't do so badly. It held the same score as it did last year. That's according to the American Customer Satisfaction Index. Apple, of course, was up in the satisfaction department.
The buzz on Wall Street, what will the Federal Reserve decide during its meeting today? But members of the GOP took action last night. Let's go to Christine Romans. She's live here in New York. So, Christine, the GOP sends this letter to Ben Bernanke, the fed chair. This is sort of unprecedented, isn't it?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes, because the fed is an independent institution, right? I mean, it is not influenced by Congress. It's meant to act on monetary policy in its own way from the political winds that could move, right, or could blow.
So, these four Republican Congress members and senators are sending a letter to Ben Bernanke saying we have serious concerns about further intervention by the Federal Reserve that it could exacerbate current problems or further harm the U.S. economy. What they're saying is as the fed meets today and considers new means of stimulus to keep some oxygen flowing in the U.S. economy and keep interest rates very, very low, what they're saying is we don't want you to do that.
World markets, carol, are hoping -- are hoping and betting that the fed will do something called "operation twist," that it will, as its medium-term securities in its portfolio start to mature, they will trade those out, use the proceeds from those to buy shorter term securities and keep interest rates low to keep the oxygen flowing in the economy. Market, global markets want the fed to do stimulus. These Republican senators do not.
COSTELLO: So, does that mean those Republican senators are wrong?
ROMANS: Well, the fed will do what the fed wants to do. I mean, the fed is an independent agency. It's been under criticism, specifically, from the Tea Party on the right for more than a year now, people who are critical of what it's done since the financial crisis using a very big balance sheet to try to manage the impact of a great recession on the U.S. economy.
These Republican senators say, look, we don't know if what you've done so far, so-called QE3 and other things you've done have actually helped grow the economy or lowered the unemployment rate. So, why are we spending more money to do this? But, the fed will do what the fed thinks is the best thing for the U.S. and the global economy.
COSTELLO: Because it is an independent entity, so do you suppose that Ben Bernanke will just ignore those Republicans?
ROMANS: I suppose he will ignore these Republicans, yes.
COSTELLO: All right. Christine Romans, I'll see you in just a bit. Thank you.
ROMANS: Sure.
COSTELLO: Republican presidential hopeful, Michele Bachmann, goes inside a meat packing plant, and she actually participates. Why she says government regulations need to be cut? It's 38 minutes past the hour. (COMMERCIAL BREAK)
COSTELLO: It's 40 minutes past the hour. Welcome back. Time now for our "Political Ticker." Let's bring in CNN political reporter, Shannon Travis. He's in Des Moines, Iowa this morning. Good morning, Shannon.
SHANNON TRAVIS, CNN POLITICAL REPORTER (on the phone): Hey there, Carol.
COSTELLO: Let's start with what the Republican presidential hopefuls.
TRAVIS: So, let's talk about Michele Bachmann.
COSTELLO: Yes.
TRAVIS: So, Bachmann yesterday was like Bachmann the butcher. She came here to Des Moines, Iowa, and sliced up some raw red meat, politically speaking and literally speaking, Carol. OK. So, she came here to Des Moines. She was at this meat packing plant. She donned a smock, and there like this 400-plus-pound hanging carcasses of beef hanging all around her.
Her campaign told me they acknowledged that hey, we knew that this would be a really, visually arresting image for her, but she went there to deliver some red meat for conservatives. She, basically, was slamming government regulations saying that companies like the one that she went to yesterday are drowning in regulation.
That a small business that has only maybe less than a dozen or so employees that one employee may have to solely dedicate themselves to just dealing with the regulations. She, of course, she laid a lot of these problems at the feet of the Obama administration saying that it's enacted a lot of regulations that hurt small businesses and also blasting, of course, the American Jobs Plan that the president is proposing.
She has very little love for that, as we already know. Although, we know that a lot of other small business owners are applauding that it would cut payroll taxes in half and waive some payroll taxes for businesses that hire new workers, what have you. But Michele Bachmann was there clad in her blue smock. It was a little weird because I haven't seen many butchers wear a strand of pearls around their wrist and the neck when they're cutting raw meat, Carol.
COSTELLO: No, that's true. And as a political image, it sure beats shaking hands and kissing babies.
(LAUGHTER)
COSTELLO: Let's talk about something that might make a lot of Americans mad, especially those Americans affected by the natural disasters of late. There could be -- could be -- a government shutdown over FEMA funding. Explain. TRAVIS: Yes. This is going to be disturbing to a lot of our viewers and to a lot of people who are aware of this. OK. So, there's a fight over FEMA funding. You remember, of course, we had that recent showdown over the debt ceiling, and earlier this year a showdown -- near shutdown over the flight of spending (ph) level, but right now, it centers on FEMA, and here's what's at issue, Carol. It's pretty simple.
Democrats and Republicans, basically, disagree on how much money to spend on disaster relief. All right. There's a short-term bill in the House of Representatives. We know the House is best controlled by Republicans. The fund, FEMA and the Army Corps of Engineers through November 18th. Now, the house is going to vote on this bill today.
All right? It includes $3.6 billion to fund FEMA, but a Senate bill that was passed last week funded for $6.9 billion, and that's the issue. How much money to actually fund FEMA and the Army Corps of Engineers? Carol.
COSTELLO: All right. We'll keep an eye on things. Thanks so much, Shannon Travis, reporting live from Des Moines, Iowa.
Let's take a quick look at ports, shall we? Dallas quarterback, Tony Romo, really took one for the team on Sunday. Romo got hurt against the 49ers, but he came back into the game to help the Cowboys win in overtime. It turns out Romo doesn't just have a fractured rib. He has a collapsed lung, too. It is not clear if he will play on Monday night against the Redskins. If he does, he should really wear a cape.
From real injuries to faked ones, did you notice how a couple of New York Giants defenders went down in the St. Louis game even though no one actually touched them? And then, they were miraculously fine a few minutes later. There's talk that they faked the injuries to slow down the Rams' drive to the goal line. The NFL says it would only fine a player for faking injuries if the player actually confessed he did, indeed, fake it.
On this day back in history, in 1970, NFL "Monday Night Football" debuted on ABC. The Cleveland Browns beat the Jets in that very first game. It's 45 minutes past the hour.
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COSTELLO: Good morning to you. It is Wednesday, September 21st. This is your A.M. WAKE-UP CALL. I'm Carol Costello joining you live from New York. It is 47 minutes past the hour.
We are following some breaking news for you this morning. Those two American hikers jailed as spies in Iran expected to be handed over to Swiss embassy officials in less than an hour. That's according to their lawyer. So, let's head around the world with Zain Verjee in London. We're hopeful, Zain, that this is going to happen in just about an hour or so. What are the chances?
VERJEE: Well, the chances are pretty high. I mean, a second judge has signed bail paperwork for this to happen. So, the two Americans are likely to be released and be in Swiss custody in the next hour or so. At which point, they would go to another country before being flown back to the United States. Now, the lawyer has said that the signature of the paperwork has been done.
That was actually the problem, because the second judge needed to sign the paperwork and that got delayed, and then, another judge went on vacation, and then, the Iranian president, Ahmadinejad, is at the United Nations. So, people thought, well, this isn't going to happen while he's there in New York, but it looks like it is going to happen.
Shane Bauer and Josh Fattal who have been there, Carol, for more than two years, they were convicted of spying and entering Iran illegally and was sentenced to eight years in jail. So, this would be really good news for them. The Swiss will be handling this, because it's the Swiss that protect American interests in Iran, because they don't have official diplomatic relations with the U.S.
COSTELLO: We'll keep our fingers crossed. Let's talk about this powerful typhoon. It made landfall in Japan overnight, and there are real concerns there about the nuclear plants again.
VERJEE: There really are. The Fukushima Daiichi Plant was damaged. Now, what experts are saying is that they're playing it down. They're saying yes, this typhoon is bad, but they don't expect anything severe happen to the nuclear facility. In the meantime, just take a look at some of these pictures. You have something like, at least, four people have been killed. One million people have been told to evacuate.
There are also continued -- that there is a lot of rain. It's very difficult for people to move around still. It's a pretty difficult situation all around. It's hit the western coast of Japan, and it's expected to move into Tokyo a little bit later, but the number one fear is about that nuclear plant. And let's see what happens to that, but experts are playing it down in Japan.
COSTELLO: Yes. I'll bet so. Zain Verjee live from London, thanks so much.
Let's talk a little bit more about Roke with meteorologist, Rob Marciano. So, how bad could it get?
MARCIANO: Well, here's the thing is that they've already seen a tremendous amount of rain from previous tropical cyclones the last couple of weeks. The ground is already saturated. I'm not so much worried about the nuke situation with just rainfall, but potentially, you know, the ground, after being shook and moved around in the last six months, is, you know, not very settled.
So, when you add rainfall to that, already saturated area, especially in the more mountainous, rugged terrain, the ground is more likely to move. So, land, mudslides will be a greater concern. Right now, Tokyo's getting pounded with 60, 70-mile-an-hour wind gusts, but the rainfall is going to stretch all the way up into Sendai with potentially another six to 10 inches of rain on top of what they've already seen.
So, that's going to be the deal here is the rain, potentially, making for landslides, and that's going to be watched very, very carefully. Watching this, tropical storm Ophelia. You may remember North Carolina six years ago, it was a hurricane scraped the coastline there with some damage at a slow-moving storm. This one's moving at 13 miles an hour off to the west.
It's got 45-mile-an-hour winds, and it's about 1,000 miles from any sort of land mass at the moment, but the track is to take it towards the Caribbean and towards the Bahamas, and potentially, towards the U.S., but it's got some winds. It's got to kind of bang up against. Now, it will likely limit its intensification at least right now, not expected to become a hurricane.
If you are traveling today, the showers along that slow-moving front along the east coast hang around. New York, Philly, Atlanta will see some delays potentially over an hour. D.C. metros, Charlotte also, and the winds will continue to blow in Chicago. Behind this next front, which is a cool one, it's going to be bringing the next batch of very fall-like air across parts of the east coast.
And so, you know, we're dealing with that. Seventy-six degrees in New York and 56 degrees in Minneapolis. There you go. A little taste of fall. Watching Ophelia and, of course, Roke as well. But, fall, by the way, arrives in two days.
COSTELLO: I know. It's official on Friday.
MARCIANO: Yes.
COSTELLO: Hey, something else we've all been watching, the skies for the small pieces of satellite.
MARCIANO: Yes. I was trying to dig up, you know, a crash map of some sort, but there's still a lot of question marks as to what happens with this. But to give you -- there's the actual live track of the satellite. It's not falling out of the sky, nor is it falling into the Indian Ocean, but it is continuing to traverse the Earth a couple a hundred miles up there, and we do expect it to come crashing down.
You know, they're still saying Friday plus or minus a day, Carol. So, that's not exactly, you know, side for (ph) accuracy, but nonetheless, we'll be watching it. The thing is once it does start coming down, they're going to give us, like, 25 minutes warning, and then, we've got -- or two hours warning, and then, we've got about a 25-minute plus or minus error there.
So, even once it starts coming out of the sky, it's going to be tough to track exactly where this stuff is going to fall. It's going to be an interesting day for sure, but no time in history has any human been killed by falling debris from a satellite. So, we hope to continue that trend.
COSTELLO: Boy, I hope so, because that would be a bummer. Rob Marciano, many thanks to you.
MARCIANO: All right, Carol.
COSTELLO: Would you ever pay $60 for a muffin or $8 for an eight-ounce cup of coffee? I wouldn't. So, why did the U.S. justice department do that very thing? A government report showed the department paid those kinds of prices for conference attendees to have, you know, their breakfast a couple of years ago. Oh, it also paid $32 per person for a snack break of crackerjacks, popcorn and candy bars.
It makes the honor bar at the hotel look like a bargain, doesn't it? Oh, this is priceless. Before this all happened, the department had issued new guidelines on wasteful spending after it served employees $5 Swedish meatballs. But of course, the justice department does more than wash down fancy baked goods with overpriced coffee.
It has shut down a website called Full Tilt Poker and declared it a Ponzi scheme that cheated players out of more than $300 million. Several Full Tilt board members have been charged with crimes.
Let's now take look at the "Word of the Day." The word is chubby. no, it does not have anything to do with being heavy. Find out what it means and why you need to know after a break. It's just about six minutes until the top of the hour.
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COSTELLO: Two minutes until the top of the hour. Almost time to get up. This is your A.M. WAKE-UP CALL.
Now, back to our "Word of the Day." Chubby. This is what it means this morning, anyway. It's a popular mini-beer keg, and come October 1st, stores in Utah can no longer sell these chubbies. That's just one of the changes in the works of the state titans of strict liquor laws. Among the rules already on the books, there's no such thing as a happy hour, and you cannot order a stiff drink.
Now, let's head to the NASDAQ MarketSite and Carter Evans. How are the markets looking this morning, Carter?
CARTER EVANS, CNN CORRESPONDENT: But you can get a near beer, from what I understand.
COSTELLO: Oh, yes!
EVANS: There you go. Hey, you know, things are looking up this morning. Today, we've got a report on existing home sales. It's also the end of that fed meeting. So, we're going to see if the fed has any plans to stimulate the economy. In the meantime, Dow futures up about 46 points right now. NASDAQ up a point and a half. S&P futures up about six points.
COSTELLO: Not bad. What's making headlines on CNN.com?
EVANS: Well, we're learning more about this contract that GM has with the United Autoworkers Union. It's one of the big stories on CNNMoney.com this morning. GM is going to be adding 6,400 jobs under this new deal or adding or retaining 6,400 jobs.
It's also going to make a $2.5 billion investment in its U.S. plants. That's going to create more shifts. And, it's also going to have pay tied to performance, and all workers will be eligible for a $5,000 profit share in bonus every year.
COSTELLO: And this all came out of labor negotiations, right?
EVANS: Yes. This all came out of labor negotiations. The difference this time, after the bailout, workers were not allowed to strike over pay.
COSTELLO: Right. And they accepted lower wages, too, but now it's tied to performance, so I guess, they get, what, a $5,000 signing bonus?
EVANS: Yes. Well, it will be a profit sharing bonus if GM maintains its current profit levels.
COSTELLO: So, unions and companies can actually work together, at least, in some instances, right?
EVANS: Right now, they seem pretty happy with it. Union members still have to ratify this one, though.
COSTELLO: We'll see what happens. Carter Evans, many thanks to you.
EVANS: Sure.
COSTELLO: "AMERICAN MORNING" continues right now.
