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American Morning: Wake Up Call

World Markets Down; Tropical Depression Threatens Gulf States; Storm Zone Tax Payers Get More Time; Mistrial In Gay Teen Killing; Weighing A Breast Implant Database

Aired September 02, 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. Happy Friday. This is September 2nd. This is your A.M. WAKE-UP CALL.

I'm Carol Costello, joining you live from New York.

Let's get on with it with some breaking news from the world markets.

They've taken a beating in Asia. The Hang Seng, Nikkei and Shanghai Composite all down this morning. The major European markets are in the red as well. U.S. futures are down too.

The world is waiting to hear the results of the monthly U.S. jobs reports. That comes out at 8:30 a.m. Eastern.

On the weather front, just a few days after Irene, the weather radar is getting another big workout. A tropical depression is running loose in the Gulf of Mexico, and it's heading for the Gulf Coast, packing lots of rain and lots of wind.

CNN's Jennifer Delgado is keeping watch for us.

Jennifer, this thing popped up pretty fast, didn't it?

JENNIFER DELGADO, AMS METEOROLOGIST: Yes. You know, we've been watching this, really, for the last two days. And you're right, it did develop quickly. Right now, it is still a tropical depression, but we do have tropical storm warnings in place from Pascagoula, Mississippi, all the way towards Sabine, Texas.

You're looking at satellite imagery right now. The winds are sustained at 35 kilometers per hour with some gusts up to 45. You can see some of that outer rain bands actually working into parts of southern Louisiana, as well as into areas including Mississippi.

Now, as I show you the graphic there, you see the winds at 35 kilometers. Well, let's track this for you. You can see it looks like getting close to the coastline of Louisiana on Saturday and then notice, those winds up to about 60 miles per hour. And then it's going to continue to track over towards the east.

I really need to correct myself. It's actually Sunday right around 2:00 a.m. But certainly wind conditions are going to deteriorate Saturday across parts of Louisiana. As I show you the graph there, we're going to be watching that. The good news is it is going to stay a tropical storm.

But look at this graphic right here. The models are showing, or actually, this is actually showing you the warnings. There's the warning area for that area in the blue, as I said, for the area including Texas, over toward areas including Mississippi.

So, we are going to be watching this. I can tell you this, that tropical storm conditions are being reported on an oil rig-off shore.

Now, here's the graphic. Carol, we really like to see something a little more in agreement. You can see right now, the spaghetti models are basically, it's a bowl of spaghetti. No one really has a definite idea of the track of that system. So, we're certainly going to be watching it.

But I can tell you is the rain is going to be incredibly heavy. We're talking 10 to 15 inches of rainfall, some locations, 20. Certainly, this is going to cause some widespread flooding. We're talking flash flooding in some areas. So, everybody needs to be paying close attention to this.

In addition to that, we're also worried about the storm surge. We can see that roughly two to four feet in some areas. We're talking into the southern parts of Louisiana -- Carol.

COSTELLO: All right. Thanks, Jennifer.

Here's a quick look at other news right now:

Authorities in Peru have now charged Joran van der Sloot with killing a young woman in a Lima, Peru hotel. He was arrested more than a year ago. Prosecutors want a 30-year prison sentence and $73,000 in restitution paid to the victim's family.

Van der Sloot was once the prime suspect of the Natalee Holloway case in Aruba. He was never charged in that case.

Texas prison officials say polygamist sect leader Warren Jeffs is out of intensive care. He's now in a regular hospital bed. The convicted child rapist had been in critical condition earlier this week and in a coma after going on a fast. He's currently serving a life sentence for sexually assaulting two under age girls he claims are his spiritual wives.

Crews are gaining ground on the giant wildfire we've been telling you about in north Texas. It's reported to be about 50 percent contained now. The fire is burning about 100 miles west of the Dallas-Ft. Worth area. It has destroyed 40 homes so far. But authorities hope they've made enough progress for some evacuees to go back home today.

(BEGIN VIDEO CLIPS)

SHERIFF IRA MERCER: Crews are actually able to work on some mop-up today. I'm told that containment is estimated at 50 percent at some point.

UNIDENTIFIED MALE: We can do all the work by air as we want. But it's my instructors told me a long time ago it's always boots on the ground that gets it taken care of.

(END VIDEO CLIPS)

COSTELLO: Fire also melted power lines, which means several hundred families and businesses don't have air conditioning. It's 100 degrees out there.

Texas is so hot and dry the Forest Service has responded to more than 200 fires since last week.

We're now learning more about the damage from last week's East Coast earthquake. It turns out it shook 25 spent fuel containers at a nuclear plant in Virginia and moved them anywhere from one to four inches. Those containers or casks weigh 115 tons each.

Dominion Virginia Power says the containers were not damaged and no radiation leaked. CNN's Brian Todd shows us what could have happens, though.

(BEGIN VIDEO CLIP)

BRIAN TODD, CNN CORRESPONDENT: In a worst-case scenario, a very large shake could make the metal casings inside these casks crack or break. The uranium and plutonium atoms inside could come together and fall to the bottom of the cask and radiation could leak out.

(END VIDEO CLIP)

COSTELLO: Again, power company officials say that did not happen. But they do admit the plant might not have been designed to withstand a shake that hard. The reactors are still shut down this morning.

Republicans in Tucson, Arizona, are defending their fund-raising raffle. Ten bucks will buy you a chance to win a new Glock handgun. Democrats are upset because this is happening in Congresswoman Gabby Giffords' home county and it's the same make of gun that Jared Loughner allegedly used to shot the congresswoman. Six other people killed in that shooting.

And that hacking group called Anonymous, it might be losing some of its anonymity. Police in London have arrested two men they think are involved with the Anonymous groups. The suspects are 20 and 24 years old. Several alleged hackers have been arrested in both the United States and United Kingdom for bringing down government and corporate Web sites and then stealing information.

Everyone's talking about a certain someone right now. He's someone you've heard of and he's gotten a lot of flack for everything from his political views to his heart problems. Do you think you know who it is?

The mystery man made an appearance on late-night comedy last night. Well, sort of.

(BEGIN VIDEO CLIPS)

DAVID LETTERMAN, COMEDIAN: This is incredible, ladies and gentlemen. We were just talking about him. Do me a favor. I don't want to embarrass anybody.

But I'm told now, in the front row of the balcony, you've never going to believe who's up there. Put your hands together and make him feel at home. How about a nice Canadian welcome for Vice President Dick Cheney. Dick?

(APPLAUSE)

JAY LENO, COMEDIAN: Cheney has been everywhere promoting his new book. Show some of the shows he's been on. I couldn't believe it.

UNIDENTIFIED FEMALE: Vice President Dick Cheney will be promoting his new book when he visits southern California this week. He's been making the rounds by appears on the usual news shows. He even showed up on some shows you wouldn't expect.

UNIDENTIFIED FEMALE: Listen to me very carefully. It's wrong. Do you understand that? Is there something wrong with you?

UNIDENTIFIED MALE: We're going to put your images up there so you can see it with us. Are you OK?

(END VIDEO CLIPS)

COSTELLO: I must admit I like the Judge Judy one. I think she's the only one who could stand up to Dick Cheney.

Thousands of pilots do it every day, fly on autopilot but some experts warn this could actually be dangerous -- a closer look just ahead.

But, first, check out the quote of the day. Quote, "Be like a bee, sting and fly and fight across Libya," end quote. Find out who said this coming up in 90 seconds.

Seven minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: It is nine minutes past the hour. This is your A.M. WAKE-UP CALL.

Now back to our quote of the day. Quote, "Be like a bee, sting and fly and fight across Libya," end quote. You probably guessed this one. It was ousted leader Moammar Gadhafi purportedly said this on audio address played on Syrian television yesterday. He also said that his people will emerge victorious.

A major recall just in time for the Labor Day weekend and the concern of the so-called "Rusty Pilot."

Let's go to Kristie Lu Stout. She's live in Hong Kong. So, tell us about this recall.

KRISTIE LU STOUT, CNN INTERNATIONAL ANCHOR: Well, Carol, the Consumer Product Safety Commission has announced a massive recall of horrible gel fuel used in outdoor flower pots that you may have out on your patio. And this move, it comes in the wake of some pretty serious injuries. Sixty-five people have been burned, some badly, and two have died. Flash fires and burns were reported when the consumers add the gel to an already burning pot because this alcohol-based fuel can burn blue or clear. Consumers think that the fire is out when it's not.

Consumers are advised to stop using these horrible fuel gels immediately. So, Carol, let's spread the word.

COSTELLO: OK. We're doing that. Thank you, Kristie.

Let's also talk about that because experts are issuing a warning about the flying schools of younger pilots which kind of makes me uneasy.

STOUT: Yes. It makes a lot of us uneasy. It all has to do with too much reliance on technology. Now, a U.S. advisory board found that airline flight crews are simply relying too much on computer controls and auto pilot. These concerns were highlighted by the 2009 crash of Air France flight 447 up in Brazil, and the Colgan Air crash that same year in New York. Investigators said that the Colgan pilot had forgotten some key procedures.

Now, this advisory board recommends more manual flight guidance and more actual flying by pilots.

Carol, back to basics.

COSTELLO: Yes, back to basics.

Kristie Lu Stout, live in Hong Kong -- thanks so much.

Just days before President Obama's major jobs speech, the White House is painting a different picture about the nation's economic forecast when it could make the president's re-election bid even tougher.

But, first, today in history back in 1969, the first ATM was installed in the United States. It was located at a Chemical Bank in New York. Chemical Bank advertised the ATM by saying, "On September 2nd, our bank will open at 9:00 and never close again."

It's 11 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: It's 13 minutes past the hour. 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. How are you?

COSTELLO: I'm great. As we wait for the August unemployment numbers to come out in just a few hours, something that always makes us nervous, the White House has actually downgraded its jobs and economics forecast. We suspect we know what it's about.

But what does it mean for the country and the president?

FARLEY: Well, I think what it means right now is that here is certainly no sense of confidence even in the White House about what's going to happen. We're looking at 9 percent unemployment, perhaps a little bit below that by the end of next year. That's the projection.

In addition to that, we're seeing unemployment tied with growth. Growth is only going to be about 1 percent to 2 percent over the next year, and the historical side of this is that presidents who have seen an unemployment level, those who are incumbent presidents over 7 percent are not in good shape when it comes to elections.

I'm not sure that it's so much what the number is next November, Carol. I think it's more probably going to be the sense of which direction the country is moving in. And certainly, if it's moving the same way as it is now, which is not very much and staying at a high level of unemployment and a low rate of growth, we're going to see a very -- shall we say -- depressed electorate next year and that's not going to bode well for this president. And that's what he's fighting against right now.

COSTELLO: Yes. And that's why his big jobs speech is so very important when it takes place on September 8th. People will be eager to hear what the president says because I think people just want to get some sense of optimism. They want some sliver of hope.

FARLEY: No, I totally agree with you. I'm really a little confused about why this White House chose this particular venue. I've been listening to the White House Press Secretary Jay Carney. I hear what he's saying. But there are going to be more Republicans in the room than Democrats given the majority that the Republicans have in the House.

And you think about who's going to be in the room. How many people are going to be sitting on their hands when the president says whatever he's going to say about jobs next week, regardless of what he proposes?

And then you've gotten the fact that he's probably going to have a difficult time getting anything passed.

So I'm not sure. We're going to wait and see what he does next week, but this -- to me it's going to be -- the expectation's waiting so long for this speech and how much needs to be done right now, I'm not sure how he's going to meet that.

COSTELLO: Although, if you look at it on the flip side, if Republicans do nothing, if they don't pass anything to, you know, to help the economy, even if it's perceived help and not real help, then how are voters going to perceive them? And if the president --

FARLEY: That's a good question.

COSTELLO: -- and he wants the country to draw together to find a solution to this crisis and Republicans don't even clap for that, how will voters think about them?

FARLEY: And that is the important question and you've just asked the question that will determine who's going to win in 2012, who are they going to blame if things go poorly and who are they going to look to if things are a lot better. And that, we'll have to wait and find out what the American people think.

COSTELLO: Speaking about that, there's a new FOX News poll. No surprise that Perry overtakes Mitt Romney in this FOX News poll as well. What did surprise me is Michele Bachmann's dwindling poll numbers.

FARLEY: Yes. I don't think they're different from the same pool of voters.

What surprises me, too, about this, Carol, is that people are making impressions about Rick Perry. He's gone so far up in the polls over the recent weeks, he hasn't even participated in a single debate yet. He will do that next week on Wednesday at the Reagan Library.

But it's always interesting to watch these polls and see where they are at this point in the -- in the cycle. And Rick Perry certainly is going to probably influence Mitt Romney. You and I have been talking about this, about Mitt Romney's campaign strategy moving forward. Mitt Romney is already going to the Tea Party event on Monday, down in South Carolina, which may be an indication he's starting to reach out more to those people that he more previously had sort of shunted aside.

So, that is I think what we're seeing as a result in this poll, a little shift in strategy.

COSTELLO: Tim Farley, many thanks. Thanks as usual. Joining us from POTUS Sirius Radio in Washington, D.C.

Prostitutes, wild parties, the Italian prime minister -- now, allegations of blackmail. See who's accused of trying to extort money from Silvio Berlusconi.

(COMMERCIAL BREAK)

COSTELLO: It is 20 minutes past the hour. This is your A.M. WAKE-UP CALL.

Here are three things to put on your radar today:

At 8:30 Eastern this morning, the jobs report for August will be released. Next Thursday, President Obama is set to introduce a plan for creating jobs and boosting the economy.

Also this morning, a Florida judge will hear arguments over whether Casey Anthony should reimburse investigators for searching for her daughter Caylee. Jurors acquitted Anthony in her daughter's death.

And at 11:00 a.m. Eastern, there's a hearing in D.C. to consider whether former Major League pitcher Roger Clemens should be retired after the judge declared a mistrial in his perjury case.

Ousted Libyan leader Moammar Gadhafi is still in hiding. But a voice that apparently belongs to him is promising no surrender. He says he will fight on, even as his regime crumbles. There are a handful of loyalist strongholds still left. Among them, Sirte and Bani Walid, where some think Gadhafi has holed up.

These are pictures of a NATO airstrike there. They are targeting a pro-Gadhafi military barrack.

Let's head around the world with Max Foster. He's live in London.

Good morning.

MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: Hi, Carol.

Yes, a very defiant message from this man purported to be Colonel Gadhafi, asking his supporters to give up their lives, continuing as this sort of battle continues in Libya, encouraging them to give up their lives for his cause effectively.

Let's listen to the voice claiming to be Gadhafi.

(BEGIN AUDIO CLIP)

MOAMMAR GADHAFI, LIBYAN LEADER (through translator): Libya will never be suppressed, will never be occupied, and we will fight against you, whatever you are. We will sacrifice our lives so that the son of Libya will become -- and the stones of Libya will become fire and fight against you. You'll never have peace of mind inside our land.

(END AUDIO CLIP)

FOSTER: Everyone very keen, of course, to find out where he's at. No clue really about his whereabouts. And he's actually in that conversation, also move the capital of Libya from Tripoli to his home town of Sirte. So, he's continuing to be defiant even though obviously everything is against him.

COSTELLO: OK. This is what I'm wondering. I know this audio is being played on Syrian television, but where is it being broadcast from? Does anyone know? And is it being broadcast in Libya?

FOSTER: Well, it's very difficult to work out where the broadcasts come from or where he's speaking from because it's all done through satellite systems. You can't actually locate even where the network is broadcasting from. So, that's not entirely clear. Everyone is very keen to know where he is. Some suggesting he's in Algeria. Some are saying he would still stay in Libya. We're not clear on that.

Obviously journalists on the ground desperate to find him. And I'm sure we'll locate him at some point. Some have suggested he's underground, of course, as well, in these bunkers that he's created.

COSTELLO: That's fascinating.

Let's talk about Italy because the businessman and his wife were -- have just been arrested on charge of blackmailing Berlusconi.

FOSTER: Absolutely. Berlusconi has admitted to handing over more than $700,000 worth of cash to Giampaolo Tarantini, 36-year-old, and his wife. And they're accused of organizing parties where they paid escorts to come and Berlusconi would also go to the parties as well. They're now accused of blackmailing.

But Berlusconi says he was just handing over this money as charity. This man needed money. So, that's why he handed the money over.

But this is a very murky world all these sorts of claims against Berlusconi and escorts. It goes on and on. He doesn't deny paying money to these people, but he does deny getting involved in an escort service. A blackmail case is a very complicated, but a murky world Italian politics right now, and it plays into that.

COSTELLO: Very sad.

And also before you go, can you tell us about the world markets and why they're taking a hit this morning?

FOSTER: Yes. I have to say when you have a look at the European markets -- they are down quite significantly. Down 2 percent the last time I look. Very concern, Carol, is you'll be aware, there are some jobs numbers coming out in the U.S. a bit later on.

And what you're getting right now is any sort of news coming out is very sensitive for the market. So some good news comes out, and the markets go up. And, right now, everyone is very concerned that these jobs numbers will be poor. So, everyone latching onto that.

But, you know, there aren't that many traders at work right now. So, the volumes are low. So, a bit exaggerated perhaps. But everyone desperate to get those numbers -- 8:30 Eastern Time I think they come out, don't they?

COSTELLO: Yes. Of course, we'll have them live on CNN.

Max Foster, many thanks, live in London this morning.

A soaking wet late summer storm barreling toward the Gulf Coast. New Orleans could see 10 inches of rain and maybe more, and the storm is still gaining strength.

It's 25 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: Good morning to you. Happy Friday. It's September 2nd. This is your A.M. WAKE-UP CALL.

I'm Carol Costello, joining you live this morning from New York. It's just about half past the hour.

The Gulf Coast bracing for a soaked wet weekend storm. This is tropical depression 13. Not the most exotic name, but it's getting stronger, and it could become a tropical storm later today.

So, New Orleans is preparing for a deluge, 10 inches of rain and maybe more. The city's mayor says get ready.

(BEGIN VIDEO CLIP)

MAYOR MITCH LANDRIEU, NEW ORLEANS: What we do know is that there's high wind, there is a lot of rain, and it's going slow. That's not a good prescription for the city of New Orleans.

(END VIDEO CLIP)

COSTELLO: Storm warnings stretch hundreds of miles from Mississippi to Texas. A state of emergency has already been declared in Louisiana and the oil company is shutting of Gulf wells and they're now evacuating workers from those big work platforms.

It's been almost a week since Irene made landfall on the Carolina coast and about a million people and 11 states are still waiting for the lights to come back on. Power or not, some people are just waiting to get back. Evacuees from Hatteras Island can start making their way back on Sunday more than a week after they were told to get out ahead of the storm.

It's probably a safe bet to say tax returns haven't been top of mind for Irene victims, so the tax man is cutting them a break. If you live in a declared disaster area in North Carolina, New Jersey, New York, or Puerto Rico, and you had a tax extension through October 17th, you get a little more time. The deadline to get that paperwork in to the IRS is bump back to October 31st. See? The IRS can be thoughtful.

A California jury says it's hopelessly deadlocked, unable to reach a verdict in the shooting death of a gay teenager, so the judge has declared a mistrial. Brandon McInerney is accused of bringing a gun to his middle school in 2008 and then shooting a gay classmate in the back of the head. Prosecutors call it a calculated murder, but defense attorneys argue McInerney snapped after being sexually harassed by the victim, 15-year-old Larry King. Eight weeks of testimony, nearly 100 witnesses, still no verdict.

You can register your car, maybe you can register your big electronic purchases, but registering breast implants? The FDA says it might be time. The idea is to track the complications of silicone breast implants, pain, scarring, infection and ruptures and more. Silicone implants were allowed back on the market in 2006 on the condition that major manufacturers conduct ten-year studies on side effects, but participation is weak so the FDA is looking to pick up the slack.

Stair at the screen. If you can't help yourself from fawning over these cute animals, blame your brain. A new study says some individual brain cells respond when a person sees an animal, but not when that person sees another person (ph), place, or object. The cells are found in the part of the brain involved in emotions. Cal Tech researchers say they respond to all animals, the cuddly ones and the creepy ones alike.

Internet giant, Amazon, is reportedly trying to cut a deal with California. It's offering thousands of jobs in the hopes of ending another financial fight. Details in 60 seconds. It's 32 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: Thirty-three minutes past the hour. Some breaking news we're following on the world market. They've been taking a beating in Asia. The Hang Seng loss 372 points. The Nikkei and Shanghai Composite are down two. The Major European markets are in the red, and U.S. futures are down, too.

As you know, the world is waiting to hear the results of the monthly U.S. jobs report. That comes out at 8:30 eastern. And, of course, the markets will adjust, you know, to whatever that report says.

Right now, let's go to our business brain, Christine Romans. Good morning.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: The only thing that matters today, Carol, I'm telling you right now is that jobs report. That's why all those markets are down there, worried it's not going to be good. It's the most important economic report in the world, and today, at 8:30, we'll know just how weak the U.S. jobs market is, the political pressure about it. That's why those markets are all down.

COSTELLO: Yes. And you'll be right there to tell us, so, I guess, I can't wait, really.

(LAUGHTER)

COSTELLO: The U.S. is set to sue a dozen big banks over these bad mortgages. I'm just wondering why this took so long.

ROMANS: That's a good condition. We would have liked the government (ph) to have been involved before these bad mortgages were packaged up into securities and sold all around the world and then became toxic, right? But this is from "The New York Times" reporting that the big federal housing authority which monitors and oversees Freddie and Fannie, the big mortgage lenders, mortgage backers, that they are going to go after four different banks in coming days, bank of America, JPMorgan Chase, Goldman Sachs, Deutsche Bank.

This according to "The New York Times" and will be suing them for not doing due diligence when all of those bad mortgages are package together and sold to investors, and then, when the people who actually took out those mortgages who had falsified their documents or their loan officers had falsified documents, when they started, you know, not paying those mortgages, all of those securities decreased very quick in value and that's how this whole thing came unwound.

So the government getting involved there, and, looking for a lawsuit either today or in the next few days, according to "The New York Times."

COSTELLO: Interesting. Also interesting, Amazon is offering thousands jobs in the hopes of winning an internet tax fight? What's this about?

ROMANS: Well, you know, California is trying -- California is in a big hole financially. To raise money, it wants to make sure that all online purchases in California. California sales tax is paid. Amazon is fighting back, obviously. They're saying, well, they're going to dangle 7,000 jobs. We'll add 7,000 jobs in California if you'll just delay that collection of sales tax and, you know, Governor Garry Brown or Jerry Brown, according to the "L.A. Times," not saying no, but saying, look, we really need the money.

We really need that sales tax revenue. This is what it's come to, Carol. You've got companies. Now, the best thing that they can offer, right, to delay something they don't like is a job. I'll create some jobs. So, there you go. Seven thousand jobs in exchange for delaying that sales tax collection of debt. It doesn't look like it's going to happen.

COSTELLO: Well, and it kind of makes you wonder, OK, so, they can afford to offer thousands of people jobs because they don't want something to happen at the state government level, but they can't offered jobs just cost (ph)

ROMANS: Well, yes, unless, they're going to move those jobs from somewhere else in which another state governor is going to get all upset about it. But, you know, this is how much things have changed, Carol. It used to be governments offered incentives to create jobs. Now, companies are offering incentives for governments to not change regulation or change things that they think are going to hurt them. So, it shows you how everything --

COSTELLO: That's extortion.

(LAUGHTER)

ROMANS: Extortion.

COSTELLO: Thank you, Christine.

ROMANS: Bye-bye.

COSTELLO: I'll see you in a bit.

Coming up, we'll tell you about a college place kicker who's a senior this year as in senior citizen. He's 61 years old, and he's playing with kids, one third his age.

But first, in honor of the millions of people taking to the road this weekend for Labor Day, check out our "Get Smart" question. According to the AAA, will the number of Americans traveling this weekend go up or down compared to this time last year? The answer in two minutes. It's 37 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: Thirty-nine minutes past the hour. This is you're A.M. WAKE-UP CALL. Now, back to our "Get Smart" question, according to the AAA, will the number of Americans traveling this weekend go up or down compared to this time last year? The answer is, B, down. The auto club estimates that it will drop by 2.4 percent. The reason, you probably can guess this one. It's unemployment, gas prices, and higher hotel rates.

Let's get to our "Political Ticker" now. We want to bring in CNN contributor, Will Cain. He's live on the phone for us from New York. Good morning, Will.

WILL CAIN, CNN CONTRIBUTOR (on the phone): Good morning. I would say good, Carol, but, dear God, this is early. I'm not even going to pretend like I'm not sitting here in my boxers --

(LAUGHTER)

COSTELLO: Oh, my gosh! You're so honest, and i like that about a man.

(LAUGHTER)

COSTELLO: OK. I wanted to talk Tea Party this morning, because I understand that, you know, the Tea Party is challenging more moderate Republicans across Atlanta in order to like kick them out of office, but the Tea Party is finding it difficult to find candidates.

CAIN: Yes. You know, it's funny to say that considering that a year ago, the Tea Party was probably the most influential voting block in the nation, (INAUDIBLE) midterm elections were pretty much dictated by Tea Party voters.

But you know, you and I talked about this, Carol, and if we see this Tea Party having trouble finding candidates to challenge Republican primaries, I don't think that's necessarily a reflection of lost power for the Tea Party because you can always look and say they absolutely changed the course of debate in this country, and they've moved the line of Republican positions toward the message they were pushing a year ago almost single-handedly.

So, I would say, if you look at the mainstream Republican Party, there is the difference. That's the power the Tea Party has. They've changed the mainstream Republican Party.

COSTELLO: They've certainly changed the dialogue, but getting back to these races throughout the country in Maine, you know, Olympia Snowe. The Tea Party really wants to overthrow her. They can't find a candidate. They did manage to find one in Indiana to compete against the senior senator Dick Lugar.

Of course, as you know, he's facing a Republican primary challenger now from the state treasurer, Richard Mourdock. And I'm going to play you a bit of a campaign ad from Murdock. He's very conservative, and he says Lugar is not conservative enough. So, let's listen.

(BEGIN VIDEO CLIP)

RICHARD MOURDOCK, STATE TREASURER: I have to tell you that Dick Lugar of today is not the Dick Lugar of 35 years ago. If he was the same Dick Lugar who once fought to get (INAUDIBLE) on the Supreme Court, I wouldn't be here today. But the Dick Lugar of today was the First Republican to come out to put Elena Kagan on the Supreme Court and the second to put Sonia Sotomayor on the Supreme Court. Mr. Lugar, as I said, is not a bad person, but he's out of sync with the times.

(END VIDEO CLIP)

COSTELLO: So, this is one of the first campaign ads, but this guy doesn't have much of a chance, does he?

CAIN: You know, I want to answer that very carefully because, again, a year ago, we looked to a lot of people across the country, a lot of incumbent Republicans, long-term incumbent Republicans going up against no-name challengers and we would have been tempted to say they had no chance, and they did. I mean, look, it's not one (ph) thing to say, a year ago, people like -- who is Marco Rubio, Charlie Crist. He's the governor of Florida.

And yet, he easily beat Charlie Crist. You know, I want to say this also, Carol, when I hear that ads for challenging Richard Lugar, there is still sentiment within the Tea Party to exist beyond whether or not you're conservative enough or you're rhino, and that is this -- there's a tension with people who've been in Washington, D.C. for a long time.

It's the Orrin Hatches of the world. You know, it's really hard to say Orrin Hatch is not conservative enough, but you can't say Orrin hatch has been in Washington D.C. for a really long time, and it might be time for someone new. Having said, you and I both know Orrin Hatch won't be challenged, but that's the same kind of sentiment towards the guy like Dick Lugar, as well. I think that's really underlying a lot of the movement as well.

COSTELLO: All right. I could talk forever about this, but, then, you know, I'm a political nerd as you are, but Will Cain, thank you for waking up early for us. We appreciate it.

CAIN: Thanks a lot, Carol.

COSTELLO: Bye, Will.

How about some sports now? Here's a different kind of football fight. Members of a youth football team in Florida attacking a referee. One of them tackles him at full speed. Apparently, some coaches were part of this fight, too. All of the players have been suspended, so that's pretty much the end of the team. That's just unbelievable as it probably should be. This sort of thing is illegal in Florida, by the way.

Here's proof that 61 is the new 18. A 61-year-old man will be the place kicker this fall for Faulkner University. That's a small Christian school in Alabama. Allan Moore (ph) was a kicker for a year in junior college, and then, he went off to Vietnam. Now, he's ready to finish what he started way back in 1968. Yes. He has made the team, and he is a student there, as well.

Ryan Braun of the Milwaukee Brewers got within 75 feet of a homerun. So close to an inside-the-park homerun. Oh, look at that. He got tripped up between third base and home. And it was an easy out after that. Oh, that was even embarrassing, too.

Huge concrete containers holding nuclear material aren't exactly where they were a few weeks ago. They shifted during the east coast earthquake, but don't worry. Everything is safe, but it's enough to get your mind racing, isn't it? We're walking through the worst-case scenario.

But first, on this day in history, back in 1969 -- no, I'm not going to tell you about that first ATM again. The internet was officially born on the same day. It happened at UCLA when two computers passed information through a 15-foot gray cable. Forty-five minutes past the hour.

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COSTELLO: Good morning to you. Happy Friday. It is September 2nd. This is your A.M. WAKE-UP CALL. I'm Carol Costello joining you live this morning from New York. It is 48 minutes past the hour.

Just a few days after Irene, the weather radar is popping again. A tropical depression is running loose in the Gulf of Mexico. CNN's Jennifer Delgado is keeping watch for us. I guess, New Orleans, watch out.

JENNIFER DELGADO, AMS METEOROLOGIST: Yes. Watch out for sure. You know, we're also worried about Katia, but, yes, we're really worried about this tropical depression number 13. Let's go over to the satellite imagery and give you some updated information. Over the last couple of hours, it hasn't moved much. You can still feel it spinning in the Gulf of Mexico. Right now, it's located about 240 miles south of the mouth of Mississippi.

And so, you see right there, you see that rain working into parts of Louisiana. Maximum winds right now, 35 miles per hour, but gusts up to 45. In fact, tropical storm winds are already being reported in some of the oil rigs. Let's go to this video right now. And in fact, BP and ExxonMobil started to evacuate some of their workers yesterday, because they realized they needed to get the workers out there now before weather conditions deteriorate when tropical depression potentially developments into a tropical storm like what we've forecasting later on today.

So, let's go back over to our weather graphics here. I want to give you an idea on the track. Now, notice it's going to be moving very slowly. Sunday morning, approaching that coastline of Louisiana, notice the winds, 60 miles per hour. And still, on Monday, still in that southern part of Louisiana with the winds at 60 miles per hour, and then, it's going to eventually weaken into an area of low pressure, but you can still see.

This is going to be a big problem, because as it moves slowly, it's going to be producing -- we're talking a tremendous amount of rainfall. Right now, that rain working into areas, including New Orleans. Anywhere you're seeing in yellow, that indicates the heavier rainfall that's coming down, but more to come. We're talking 10 to 15 inches of rainfall. Look in parts of New Orleans, areas including central parts of Louisiana and the area in purple.

That's going to be our bull's eye. It's not going to be out of the question to see maybe 20 inches of rainfall. And finally, I want to update you on tropical storm, Katia is still spinning out in the Atlantic. And again, it looks like it's going to develop into a major hurricane as we head into the middle of next week. Right now, we're not worrying about that.

We're really focused on tropical depression number 13, which will become Lee. Just simply Lee. I think I need a better name for that, right? What do you think?

COSTELLO: I know. Lee.

DELGADO: Just plain old Lee.

COSTELLO: Katia is pretty strange, too.

(CROSSTALK)

COSTELLO: And Katrina was retired. That's why we have Katia, right?

DELGADO: Absolutely. Too much --

(CROSSTALK)

COSTELLO: Yes. Jennifer Delgado, many thanks. Ousted leader -- ousted Libyan leader, I should say, Moammar Gadhafi, he's still hiding, but a voice that apparently belong to the Gadhafi is promising no surrender. He says the fight will go on even as his regime crumbles. There are a handful of loyal strongholds left, among them, Sirte and Bani Walid where some think Gadhafi is hold up.

These are pictures of a NATO strike there, targeting a pro- Gadhafi military barrack. Let's head around the world with Max Foster live in London. Another message from Gadhafi, but is anybody listening?

FOSTER: He's now saying -- well, the man reported to be him is saying the capital is new to Sirte. So, it's an interesting one, because Sirte is his hometown. It is a stronghold to Gadhafi's supporters, but the rebels don't want to go in there and be -- seem to be killing civilians who are just Gadhafi supporters. They just want to attack, obviously, the people fighting against the rebels.

And as we understand it, there's no electricity or water in Sirte. So, we don't know whether people living in Sirte are aware even that rebels have take over most of the country. So, it's a sensitive situation, but there's another interesting dynamic here, because one rebel commander has said tomorrow is the deadline for Gadhafi forces to give up their arms in Sirte.

But he's also suggested that there could be an extension of that deadline to September 10th, because of this sensitive situation with the civilians there. But another rebel commander says he's no aware of any extension to the deadline. So, you're starting to see, Carol, a split in the rebel forces here. And Sirte can be a very interesting case in point.

COSTELLO: Yes. It could be a very disturbing point as well. Max Foster live in London. Thanks so much.

Here's the quick look at other news for you. Authorities in Peru have now charged Joran Van Der Sloot with killing a young woman in a Lima hotel. He was arrested more than a year ago. Prosecutors want a 30-year prison sentence and$73,000 in restitution paid to the victim's family. Van Der Sloot was once the prime suspect in the Natalee Holloway case in Aruba. He was never charged.

Texas prison officials say polygamous sect leader, Warren Jeffs, is out of intensive care. He's now in a regular hospital bed. The convicted child rapist had been in critical condition earlier this week and in a coma after he went on a fast. He's currently serving a life sentence for sexually assaulting two under aged girls. He claimed for (ph) spiritual lives.

We're learning more about the damage from last week's east coast earthquake. It turns out it shook 25 spent fuel container at nuclear plant in Virginia and moved them up to four inches, and these things are huge. They weigh 115 tons each. Dominion Virginia Power says the containers were not damaged, and no radiation was leaked. Let's take a look at the word of the day now, shall we? It's a phrase today. Waffle house index. Find out what it means and why you need to know right after the break. It's 53 minutes past the hour.

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COSTELLO: It is just about the top of the hour. This is your A.M. WAKE-UP CALL. Now, back to our word of the day or phrase of the day, shall I say? It would be waffle house index. Here's how it works. When a disaster hits, FEMA actually uses waffle house as a gauge to figure out how rough it is. So, if waffle house is open with a full menu, the damage in the area is limited because they have power.

Yellow means they have a limited, menu and they're running on generator power with low food supplies. Red means the restaurant is closed which is also a sign of severe damage in the area. Now, you know.

That squabble between President Obama and House Speaker John Boehner over next week's jobs speech, of course, it landed smack in the middle of late-night comedy.

(BEGIN VIDEO CLIP)

JIMMY FALLON, HOST, LATE NIGHT WITH JIMMY FALLON: After pressure from Republicans, President Obama moved his big jobs speech from Wednesday to Thursday night. Obama gave in when he realized something important. He could just TiVo "Jersey Shore."

JAY LENO, HOST, THE TONIGHT SHOW WITH JAY LENO: Did you hear about the latest spat between the president and John Boehner? You know, the White House said it will switch the date of President Obama's speech on jobs from next Wednesday to next Thursday., because the Republicans have their big debate scheduled for Wednesday.

So, apparently, a debate nobody's going to watch carries more weight than a speech nobody's going to believe. So, it's interesting. You get all caught up.

(END VIDEO CLIP)

COSTELLO: Ouch. Now, let's go to Carter Evans for a look at your money this morning. He joins us live from the NASDAQ MarketSite in New York. Boy, it's not looking good, so far, is it?

CARTER EVANS, CNN BUSINESS CORRESPONDENT: Well, and that's because it's all about jobs today, Carol. Of course, we get the government's jobs report this morning, and the indications are we could see anywhere from an additional 73,000 jobs, perhaps, as many as 93,000. Neither number is very good. You see a lot of red on the wall behind me from yesterday.

There is red on the CNNMoney.com premarket page as well. Take a look. Dow futures down about 82 points. NASDAQ down about 14.75. S&P futures down about nine points. We need to be adding 250,000 or more jobs every month. So, we are far behind.

COSTELLO: OK. So, what are the headlines on CNNMoney.com? Hopefully, there's something good.

EVANS: Well, this one is not good for Netflix users. Take a look at this. Netflix stock plunging as Starz end contract. You see, Starz is one of those content providers for Netflix, and the thing about Starz is it said it allowed access to streaming customers for relatively new titles. Well, now, Starz wants more money, and it pulled the deal, so far.

So, now, the contract will end at the end of this year, basically, the beginning of next year. You know, licensing for Netflix, Carol, in 2010, cost $180 million and could go up to $2 billion in 2012. It's bad timing for Netflix users because they just saw a price hike from 10 bucks to $16 a month.

COSTELLO: OK. Thanks, Debbie Downer.

(LAUGHTER)

EVANS: Happy Friday.

COSTELLO: Happy Friday. Thanks, Carter. "AMERICAN MORNING" continues right now.