Return to Transcripts main page
American Morning: Wake Up Call
Knox Acquitted; Markets Slide Overnight; Amanda Knox Heads Home
Aired October 04, 2011 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CHRISTINE ROMANS, CNN ANCHOR: Happening just moments ago in Italy, the relatives of murder victim Meredith Kercher speaking out on the acquittal of Amanda Knox. They're saying they feel like they're back to square one. A live report just ahead.
ESPN changing its "Monday Night Football" tune. The network is sending a strong message after country singer Hank Williams, Jr. made an offensive comment.
Ready to talk iPhone? Apple is. We'll talk about what many predict the new device will look like and we'll do.
Good morning. It's Tuesday, October 4th. This is your A.M. WAKE-UP CALL.
I'm Christine Romans, in for Carol Costello. I'm joining you live from New York. Good morning.
Maybe it's all just a bad dream we're going to wake up from soon, but it's a pretty nasty day on the markets already. Asian markets fell overnight. The Hang Seng down more than 3 percent. Japan's Nikkei down more than 1 percent. European markets fell at the open as well. The FTSE down more than 2 percent. The DAX down more than 3 percent.
Right now, no surprise, folks. Dow futures are down this morning. Now to pre-day on Wall Street. Yesterday, the Dow fell 258 points. That's a 2.4 percent loss.
The European debt crisis weighs heavily on investors' minds and, of course, their wallets. The only major Dow component to finish on the up side, Wal-Mart.
Amanda Knox and her family are expected to return to her hometown of Seattle as early as today. Knox broke down in tears after a jury overturned her murder conviction yesterday for the stabbing death of her British roommate Meredith Kercher four years ago. Appearing dazed, Knox had to be helped from the courtroom after this verdict was read. Her Italian co-defendant and former boyfriend also cleared of murder charges.
Knox's sister told reporters that the family is thankful Amanda's nightmare is over.
(BEGIN VIDEO CLIP)
DEANNA KNOX, AMANDA KNOX'S SISTER: We are thankful for the support we have received from all over the world. People who took the time to research the case and could see that Amanda and Raffaele were innocent. And that we are thankful to report for having the courage to look for the truth and to overturn this conviction.
(END VIDEO CLIP)
ROMANS: Meredith Kercher's family spoke out just moments ago about Knox's acquittal. They say Meredith is the forgotten person in this case.
Our senior international correspondent Matthew Chance was there as they address the media. He joins us now on the phone from Italy. What else did they say to reporters?
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT (via telephone): There was another press conference on the part of the Kercher family. They felt that after the acquittal of Amanda Knox and Raffaele Sollecito, the former boyfriend (INAUDIBLE) Meredith Kercher, that they had gone back to square one. They emphasized it's believed it was more than one person that carried out the killing of Meredith Kercher.
So, the question that enters your mind surrounding the Meredith Kercher family, it wasn't Amanda and Raffaele, who was responsible -- (INAUDIBLE) Stephanie Kercher, Meredith's sister, had to say.
(BEGIN VIDEO CLIP)
STEPHANIE KERCHER, MEREDITH KERCHER'S SISTER: We said all along we don't want the wrong people put away for a crime that they didn't commit. Having said that, as Lyle said it may be a case of waiting another year now to get the truth and we can't decide that. We have to leave that up to the police and the forensics and the courts. So, we just have to wait again maybe.
(END VIDEO CLIP)
ROMANS: That's Stephanie Kercher, Meredith Kercher's sister. And, of course, it was difficult to hear Matthew Chance. We're going to check in with him in just a few minutes again on a better connection and we'll continue to follow this story all morning.
Now, new documents leaked to CNN purport to show that Attorney General Eric Holder was aware of the controversial Fast and Furious gun-running operation as far back of July last year. That directly contradicts Holder's testimony to Congress.
Under the Fast and Furious operation, ATF agents, they allegedly allowed thousands of weapons to cross the border and fall into the hands of Mexican drug cartels. A high level Justice Department official tells CNN that Holder never misled lawmakers before -- when appearing before the Senate back in March.
Here in the U.S., CNN has learned New Jersey Governor Chris Christie is on the verge of saying whether he will throw his hat in the race for the Republican presidential nomination.
One source said he could make this decision within the next 48 hours. We're told Christie and his wife spent the weekend going over the pros and cons of running for president.
President Obama is on the campaign trail in Texas today. He's expected to push his jobs bill during a stop in Dallas. Based on a new national poll, the president needs to talk up a storm. According to an ABC/"Washington Post" survey, a majority of those questions believe the Republicans will win the White House next year. A little more than a third expect President Obama to be re-elected.
So with the election more than a year away still, is the president the underdog? Here's what he told ABC News.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Are you the underdog now?
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Absolutely. Given the economy, there's no doubt that whatever happens on your watch, you've got --
UNIDENTIFIED MALE: You embrace that quickly.
OBAMA: You know, I don't mind.
(END VIDEO CLIP)
ROMANS: Mr. Obama cited the anemic economy for what appears to be his uphill battle to win reelection.
Country singer Hank Williams Jr. coming under fire this morning for comments he made about the president. Williams compared Mr. Obama to Hitler in an interview yesterday. In response, ESPN pulled his Williams' classic intro song from its broadcast of Monday night's NFL game.
Williams was making reference to a June golf game between the president and House Speaker John Boehner.
(BEGIN VIDEO CLIP)
HANK WILLIAMS, JR., COUNTRY SINGER: Come on. Come on. It would be like Hitler playing golf with Netanyahu, OK?
(END VIDEO CLIP)
ROMANS: In a statement released after the interview, Williams said, quote, "I was simply trying to explain how stupid it seemed to me, how ludicrous that pairing was. They're polar opposites. And it made no sense. They don't see eye to eye and never will."
Now, let's go to meteorologist Rob Marciano live in Atlanta. We're expecting some flight delays today, Rob.
ROB MARCIANO, AMS METEOROLOGIST: Well, I don't know if it will be as bad as yesterday, Christine. We do have the same system that replaced the last system that was doing the same thing last week and that is cut off low. That's spiraling over the Northeast.
So, unsettled weather continues there. You see it on the radar scope. So, that's going to be the ongoing issue. It will begin and kick out here slowly but surely. You see the showers rotating into the eastern part of New England and also then rotating back down towards the Delmarva.
New York, Boston, you'll see showers that will cause some delays. We don't have any red on the map this morning. We think most of the delays will be under an hour, but it will include some of the big cities in Philly and D.C. Vegas seeing some thunderstorms the past couple of days. Big storm rolling into the West, reinforcing shot comes into northern California tonight, but the rain and snow that came into the sierras yesterday getting into the Salt Lake City and winter storm watches are posed for the Wasatch.
Look at that mess. Look at November and December as opposed to the first week of October, at least out West, and the middle part of the country looking windy and fairly warmer and a bit of fire across Panhandle of Florida. There's your storm driving into the Northwest and the West Coast there.
And five to 10 inches of additional snowfall above the 7,000- foot mark that includes Lake Tahoe. Winds are going to be gusting to 50 miles an hour in some of these spots and over a foot possible above 8,000 feet. Daytime highs, though, in the midsection, 87 in Kansas City. Warming all the way up to 81 degrees in Minneapolis, 75 degrees in Chicago and 63 degrees in New York City.
So, long, short sleep last night with the Tigers and Yankees playing. Is Carol off? She conveniently off, sleeping in.
ROMANS: I was wondering, Rob, if she took the day off because of the game but it was already scheduled. But I don't see you, you know, wearing a Detroit uniform.
MARCIANO: No.
ROMANS: Wasn't that the bet?
MARCIANO: That's why they play five, OK? Two-one right now. We got game four tonight. Yes, game four tonight. So --
ROMANS: What about this pumpkin? Tell me about the pumpkin.
MARCIANO: What? There's a pumpkin?
ROMANS: A big pumpkin. I wonder what they're feeding this pumpkin. What are they feeding this pumpkin?
MARCIANO: My goodness. I didn't see this in the rundown but they're clearly juicing it up with HDH maybe other steroids.
ROMANS: I don't know. I would say main lining Miracle-Gro.
MARCIANO: WUSA, our affiliate, somewhere where they grow big pumpkins. And this one -- I like a nice symmetrical orange pumpkin and whatever they're feeding this gourd is something to be -- where is this?
ROMANS: I'm told that the number one ingredient -- there you go.
MARCIANO: In Virginia.
ROMANS: There you go.
MARCIANO: Thanks for the heads-up.
ROMANS: The number one ingredient cow manure, Rob.
MARCIANO: I prefer chicken.
ROMANS: That's what feeds the pumpkin to get that big. All right.
MARCIANO: You pumpkin growers out there, happy Halloween.
ROMANS: Talk to you soon.
MARCIANO: See you in a bit.
All right. Amanda Knox free from jail. Comedian Jay Leno says he knows why the Italian court let her go. Here's your punch line.
(BEGIN VIDEO CLIP)
JAY LENO, COMEDIAN: You folks might not know the jury. Italian court overturned Amanda Knox's murder conviction. So, she's coming home. That's pretty amazing.
What happened was, after having those "Jersey Shore" kids over there, Amanda Knox didn't seem so bad. Just send her home.
(END VIDEO CLIP)
ROMANS: All right. It's been the talk for weeks. What will the new iPhone look like? The big announcement is later today, but we have a few clues already. We're going to talk about that just ahead.
But, first, check out the "Quote of the Day." Are you ready for this one? What domestic diva's daughter said this about her mother? "Mother always peed with the door open. I remember saying, 'You know, now I have friends over! You can't do that anymore.'" My goodness.
Ten minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: About 12 minutes after the hour. It's your A.M. WAKE- UP CALL.
Our "Quote of the Day": "Mother always peed with the door open. I remember saying, 'You know, now I have friends over! You can't do that anymore!'" That was Alexis Stewart. Martha Stewart's daughter. She's got a new book out.
Coming up in the couple of weeks, doesn't hold back when discussing the famous domestic diva. No comment yet from Martha herself. Interesting. She said the refrigerator was always bare, as well. How about domesticity.
All right. Let's talk iPhone. That's what everyone seems to be talking about today when Apple will unveil its fifth incarnation of the device.
Let's go to Kristie Lu Stout live from Hong Kong.
Good morning, Kristie. What are many expecting to see today?
KRISTIE LU STOUT, CNN INTERNATIONAL ANCHOR: Yes, Apple is set to unveil the long awaited iPhone today at its headquarters in Cupertino, California. And this is what they're hearing. It could be called the iPhone 5 or the iPhone 4S or both. It will likely cost around $200 and it is expected to have an upgraded 8 megapixel camera.
The phone may have a teardrop back -- meaning it's thicker at the top than the bottom and according to the gadget blog Gizmodo, says it will be skinnier, shorter and wider. That's what we're hearing right now. But, Christine, all will be revealed later today.
ROMANS: All right. Tim Cook is expected to host this unveiling. Any word on who else might be there. Clearly, Steve Jobs watchers are wondering if he might make an appearance.
STOUT: That's right. I mean, this will be the first big media event for Apple's new CEO, Tim Cook.
Now, Cook, he took over when he stepped down for health reasons and we all know that Steve Jobs is the showman. But for Cook, this will be his first public step as the head of the company. He is reported to be a private person. So, how he will take to the stage and how he will handle the spotlight will be very interesting to watch.
There are also rumors that Steve Jobs will be there. That he will make an appearance. That said, Tim Cook will likely run the show. And again, all to be revealed at the Apple event later today, 1:00 p.m. in Cupertino.
Back to you.
ROMANS: All right. Kristie Lu Stout -- thank you, Kristie Lu. We'll check in with you again about markets later on in the program, and later on this morning.
It's 14 minutes after the hour.
President Obama stumps for his jobs bill in Texas today. But will it even get to the floor of the House? The new opposition he's facing coming up.
Fourteen minutes after.
(COMMERCIAL BREAK)
ROMANS: You've probably heard about that hunting camp tied to Republican presidential candidate Rick Perry, the one that included a racial slur in its name. So, why are we now just hearing about it. Comedian Jon Stewart offers his answers.
Here's your punch line.
(BEGIN VIDEO CLIPS)
JON STEWART, COMEDIAN: Rick Perry has been governor of Texas for 11 years. How come he didn't have to answer questions about this family ranch stone before? Oh, I'm being told he does address it in his autobiography.
Perry better have a good explanation for this.
UNIDENTIFIED MALE: Perry says his father painted over the sign soon after leasing the property in 1983.
STEWART: Clearly, that area must have a painting company solely tasked with correcting these oversights. Yes. Nice.
(END VIDOE CLIPS)
ROMANS: All right. Time now for your Political Ticker with Tim Farley, host of "Morning Briefing" on Sirius XM POTUS. He's live in Washington.
Good morning, Tim.
TIM FARLEY, SIRIUS XM POTUS: Good morning, Christine.
ROMANS: Let's talk about the GOP primary calendar. South Carolina moving up the primary date after Florida did the same. What's this going to mean for the overall race?
FARLEY: Well, South Carolina is always first in the South and what it's going to do is compress the schedule and we've been talking about this for some time. And interestingly enough, it, one, keeps any candidates who win from basking in the after-glow, if you will. They usually like to translate any victories or strong showings in the fundraising. Iowa being a key state for Rick Perry and for Michele Bachmann whose campaign seems to be surviving on fumes as its been described in a couple of recent reports.
But that said, this is an opportunity perhaps for Rick Perry to rescue himself, his numbers according to the latest ABC/"Washington Post" poll, which is out this morning, are struggling. He's tied with Herman Cain, but Mitt Romney is not exactly running away from the field.
So, what it does is present an opportunity for somebody to get a couple of quick wins and it may be Rick Perry to benefit from that. If he can get something going in Iowa and South Carolina, with New Hampshire pretty much already a given for Mitt Romney and Florida up in the air. But those three first primary caucus dates are going to be key. If Rick Perry can't translate one of those three dates into a strong victory or some strong showings, he could be in serious trouble.
ROMANS: It certainly makes it interesting for the campaign strategists as they're trying to, you know, make their plans for the next few months. Meanwhile, the president is heading to Texas to push his jobs bill. He is calling on Congress to get it passed.
Let's listen, Tim.
(BEGIN VIDEO CLIP)
OBAMA: So my expectation is, is that now that we're in the month of October, that we will schedule a vote before the end of this month. I'll be talking to Senator Reid, McConnell, as well as Speaker Boehner and Nancy Pelosi, and insisting that we have a vote on this bill.
(END VIDEO CLIP)
ROMANS: Tim, what are the chances of a vote on the president's bill in the House?
FARLEY: Snowball -- hell, I mean you can put those together. It's going to get a vote at some point, pieces of it, but not in its entirety -- at least according to what House Majority Leader Eric Cantor said yesterday when he said the president's all or nothing approach is unreasonable. And, frankly, Dick Durbin, the Senate majority whip, said the other day that he didn't think there would be votes in the Senate for this right now.
There will be votes on pieces of it. There will not be a vote on its entirety. But the president is playing the game that he couldn't or seemingly wouldn't play last time around which is to draw that strong line and try to appeal to his base and say, "Look, I'm strong, I'm pushing for this and that darned Congress better do something."
And it looks like they are going to respond in kind and not do what the president wants and we'll see where it goes from there.
ROMANS: All right. Tim Farley, host of "Morning Briefing on Sirius XM POTUS -- nice to see you this morning. Have a great day, sir.
FARLEY: You, too, Christine. Have a good day.
ROMANS: A restaurant chain charging waiters a fee for tips paid by credit card. Is that fair? Details after the break.
But, first, get a treat, put out extra catnip for whiskers this morning because it's World Animal Day. It started in 1931. It celebrates animal life in all of its forms.
Twenty minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: It's almost 23 minutes after the hour. This is your A.M. WAKE-UP CALL.
Good morning.
Here are three things to put on your radar today. Jury selection gets under way in the trial against the so-called underwear bomber. The Nigerian national is accused of trying to blow up a Northwest flight over Detroit nearly two years ago on Christmas Day.
Voters head to the polls in West Virginia to vote for their next governor. Acting Governor Earl Ray Tomblin faces businessmen and Republican nominee Bill Maloney. And at 10 a.m., Federal Reserve Chairman Ben Bernanke, he testifies before the joint economic committee on the nation's economic outlook.
A look at the markets. The fourth quarter looks a lot like the third -- well, at least so far. Asian markets fell sharply overnight. The Hang Seng down more than 3 percent. European markets fell as well.
Right now, Dow futures are down but just slightly. It was not a pretty day on Wall Street yesterday.
The Dow fell 258 points. That's about a 2.4 percent loss. The European debt crisis still weighs heavily on investors' minds and wallets.
The only major Dow component to finish higher: Wal-Mart.
All right. By now, you're all aware that some banks are charging fees to use debit cards -- well, get this -- a Minneapolis restaurant chain plans to take 2 percent of waiters' tips paid by credit card. Parasole owns 12 restaurants in the Twin Cities. The company released a statement saying, quote, "given the increased usage of credit and debit cards, there is a restaurant industry movement to pass all or a portion of the credit fees on tips only to the tipped employee."
As you might imagine, this plan is burning up some social media sites. One comment, quote, "A service worker should not be penalized because of the way a guest chooses to pay for their bill."
Coming up: with the media spotlight on Amanda Knox, the family of murder victim Meredith Kercher says she was forgotten.
And a documents show the president was warned not to visit a solar energy company because it could end up embarrassing him. Guess what? It turns out to be a very unfortunate photo-op. Too bad that advice wasn't heeded. Details just ahead.
(COMMERCIAL BREAK)
ROMANS: Good morning. It's Tuesday, October 4th. This is your A.M. WAKE-UP CALL.
I'm Christine Romans, in for Carol Costello this morning, joining you live from New York. It is 28 minutes after the hour.
All right. We're now learning a Silicon Valley investor and senior administration officials warned the president not to visit a California solar equipment maker. Newly disclosed documents show the president was warned about a visit to a financially unstable Solyndra could eventually prove embarrassing.
The House Energy and Commerce Committee is investigating a half billion dollar government loan to the now bankrupt company alone via stimulus, for a company that is now out of business.
CNN has learned New Jersey Governor Chris Christie will make his 2012 presidential intentions clear this week. For months, Christie had been pressured by some to get into the race. Sources now say he is mulling it over with his wife. Any decision about seeking Republican presidential nomination is expected within the next 48 hours.
Prosecutors in the manslaughter trial of Michael Jackson's doctor are expected to call two of that doctor's girlfriend later today as they try to establish a time line of his death. Monday, two emergency room doctors testified that Murray pressed them to revive Jackson even though he was certain -- they were certain that Michael Jackson was already dead. One of the doctors says Murray left out a crucial detail.
(BEGIN VIDEO CLIP)
DAVID WALGREN, PROSECUTOR: Now, in your discussions with Conrad Murray, did he ever mention any other narcotics to you other than the Ativan or the Lorazepam.
DR. THAO NGUYEN, CARDIAC FELLOW, UCLA MEDICAL CENTER: No, I specifically asked and his reply was negative.
WALGREN: OK. And you never mentioned Propofol to you?
NGUYEN: Absolutely not.
(END VIDEO CLIP)
ROMANS: Prosecutors want to prove Murray acted irresponsibly in administering Propofol.
San Diego police are searching for a man who opened fire while driving on a freeway. Residents near Interstate 805 were warned to watch out for the guy. He is suspected of shooting at vehicles, including an ambulance, shooting at several peopleA 26-year-old man was injured, but it wasn't life threatening, thankfully. Police looking into whether the interstate shooter is tied to an earlier hit and run.
Coming up, the minimum wage set to rise in eight states. One state will be the first to top $9 an hour. Which state? That's next.
(COMMERCIAL BREAK)
ROMANS: New video just in the day after her murder conviction overturned by an Italian court. Amanda Knox and her family are now booked on a flight out of an airport in Rome, freed after four years in an Italian prison. Amanda Knox and her former boyfriend had been convicted of murdering a roommate.
And after that conviction was overturned, Knox burst into tears as she was led from the courtroom for the first time in four years as a free woman. Knox's sister spoke outside the courthouse after the verdict was read.
(BEGIN VIDEO CLIP)
DEANA KNOX, AMANDA KNOX'S SISTER: We're thankful for the support we have received from all over the world. People who took the time to research the case and could see that Amanda and Raffaele were innocent. And last, we are thankful to the court for having the courage to look for the truth and to overturn this conviction.
(END VIDEO CLIP)
ROMANS: Amanda Knox and her family are expected to return to her hometown of Seattle today.
The family of the victim, Meredith Kercher, says they respect the decision of the judges, but they don't understand it. They also feel that with the media spotlight on Amanda Knox, Meredith, their daughter and their sister, was forgotten. Her family held a news conference in Italy just a short time ago. That's where our senior international correspondent, Becky Anderson, is. Beck, good morning. What else did the family say?
BECKY ANDERSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, I mean it's been an interesting day for them. They announced they would hold this press conference late last night. They were exhausted emotionally. I spoke to Lyle just before they went into the court yesterday. I said how are you feeling. He said nervous.
And it was pretty obvious by then that they'd come to the conclusion that it was all over so far as Knox and Sollecito were concerned and probably would be freed. They've said al along that they have faith in the Italian justice system. They are extremely confused as to what has happened. This is what Stephanie said just a little earlier on.
(BEGIN VIDEO CLIP)
LYLE KERCHER, MEREDITH KERCHER'S BROTHER: First of all, it was a very long difficult day yesterday. And, ultimately, while we accept the decision that was handed down yesterday, we respect the court, and obviously, the Italian justice system. We do find that we are now left obviously looking at this again and thinking how a decision that was so certain two years ago has been so emphatically overturned now.
(END VIDEO CLIP)
ANDERSON: Yes, that, of course, was Lyle, apologies for that. And one of the journalists at the press conference also who's very close to the Kercher family also asked whether they thought they might sue like O.J. -- the O.J. victim did and Arline's answer to that and that's the mother, of course, said that she doesn't know.
There are an awful lot of questions left now for the Kercher family. Meantime, of course, a fantastic day for the Knox family. We believe they are leaving Rome just about now, within certainly the next hour or so. There was a flight out at 11, a local if that is, indeed, the flight they got to London where they will change for flight to Seattle.
They would have already left Italy. It's just about a half past 11 now. Perugia, meantime, well, it just tries to get its act together and tries to forget what has been happening over the last four years. There's an awful lot of fury when the decision was handed down last night. A lot of protests here outside the courthouse.
People were furious with the Italian justice system shouting shame on Italy for what had happened. So, a lot of hurt here in Perugia. Some students telling me last night that if it wasn't Knox and Sollecito, then who was it? Of course, Rudy Guede, a drifter from here has been in prison for 16 years for the murder.
But there was always talk there were accessories to that. Many people are slightly frightened about the future here also as a student. Back to you, guys.
ROMANS: Becky, it's interesting. You made a comparison or at least a reference to O.J. You're not the first person I've heard say that trying to draw similarities between what on the surface would seem to be a very different case.
ANDERSON: Yes, absolutely. It was very difficult (ph). I wasn't surprised that question was asked. The family, at this stage, I think, are just trying to take on board what's happened. It is a very, very different case, but when you listen to Meredith's mother and do remember somebody who was brutally, essentially assaulted and murdered in this case, Meredith Kercher, who is a student here, a British student here back in 2007, they are such a dignified fairly simple family.
I think they will get advice going forward as to what happens next. They were asked whether they would support the prosecution if, indeed, the prosecution decide to appeal to the Italian high court and have every right to do so.
We won't know that for about 140 days, and it really will depend on whether prosecution still believe they've got a case on appeal and when asked, the Kercher family said, listen, that state, Italian business, and we'll support anything that happens. They're very simple family at this stage. I think, they just want to move on.
ROMANS: Oh, very just tragic all the way around. All right. Becky Anderson in Italy. Thank you, Becky.
Now to your morning money. It could mean hundreds of dollars a year to some workers. Thanks to automatic annual increases, the minimum wage is expected to rise in eight states, Ohio, Colorado, Montana, Oregon, Arizona, Florida, Vermont, and Washington.
Economists say the euro will survive as a currency without losing any members, not even Greece. CNNMoney surveyed 22 economists. Seventeen predicted that the euro would hold together despite the fact almost all of them believe Greece will default on its debt by the end of next year.
In the first six months of this year, American airlines made $1.3 billion in fees alone. Hey, that's a lot of cash for blankets, food, express baggage charges. That numbers actually twice the company's value on Wall Street. Still, it might not be big enough to stave off bankruptcy? American Airlines' shares fell 33 percent on fears bankruptcy is around the corner. We'll watch to see what American Airlines' shares do again today.
New Jersey governor, Chris Christie, not a candidate yet, but, President Obama says he's sounding like one. What else he has to say about the man who just might be eyeing his job? That's coming up.
But first, check out today's "Get Smart" question. We told you earlier that eight states will increase their minimum wage next year. So, what state will then have the highest minimum wage? Is it A. Washington, B. Indiana, or C. North Carolina. The answer for you in two minutes. It's 38 minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: Forty minutes after the hour. This is your A.M. WAKE-UP CALL.
Now, back to today's "Get Smart" question. Which state will have the highest minimum wage next year? Is it Washington, Indiana, North Carolina? The answer, Washington. The state's minimum wage increases to just above $9 an hour. The federal minimum wage is 7.25.
Now, for our "Political Ticker," let's bring in CNN political reporter, Shannon Travis, live on the phone from my great state of Iowa. He's in Des Moines. Good morning, Shannon.
VOICE OF SHANNON TRAVIS, CNN POLITICAL REPORTER: Good morning, Christine.
ROMANS: All right. It is early in Des Moines. President Obama, of course, the incumbent, but he's also claiming another mantel in the 2012 race.
TRAVIS: That's right. I mean, he may be the powerful incumbent president of the United States and potentially create a billion dollars in this race, but the president of the United States is essentially comparing himself to a long shot in the 2012 race. Take a listen in what he told ABC News/Yahoo News in an interview yesterday.
(BEGIN VIDEO CLIP)
GEORGE STEPHANOPOULOS, ABC NEWS: Are you the underdog now?
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Absolutely, because, you know, given the economy, there's no doubt that, you know, whatever happens on your watch, you've got --
STEPHANOPOULOS: You embrace that pretty quickly.
OBAMA: You know, I don't mind.
(END VIDEO CLIP)
TRAVIS: The president, basically, is saying that the economy makes him the underdog in this contest. He also said that -- he admitted that Americans are not better off today than they were four years ago -- Christine.
ROMANS: Yes. The trick for them will have to be proving that the risk could have been like could have been a lot worse. They're trying to prove a negative, and that message wise gets to be real sticky. You know, Shannon, lots of focus lately on New Jersey governor, Chris Christie, meantime. President Obama also commenting on that, Shannon.
TRAVIS: That's right. I mean, the president doesn't like to give any of his potential opponents more prominence that they need, but you're right, Christine. He did mention New Jersey governor, Chris Christie. Obviously, we're still waiting on whether he will run or won't run, but he was asked about his potential challenger in Christi in that same interview. Take a listen on this.
(BEGIN VIDEO CLIP)
OBAMA: Well, look, you know, if the guy is thinking about running for president, he's going to say a lot of stuff, and I think in the Republican primaries, saying nasty stuff about me is probably -- polls pretty well.
(END VIDEO CLIP)
TRAVIS: Obama, the president, basically is disputing things that Chris Christie said last week in his speech calling President Obama a divisive leader -- Christine. ROMANS: All right. Thanks so much, Shannon. Nice to see you. March yourself over. Get some bacon and eggs over the drake diner and have a great day in Des Moines.
All right. A quick check to your sports headlines this morning. The Indianapolis Colts travel to Tampa Bay for the NFL Monday night game. The Colts took a 17-10 lead, but the Bucs rallied over the last quarter to win 24-17. Highlighted by a go-ahead-35-yard run by Legarrette Blount.
Tampa Bay improves to 3-1. Indy stays winless at 0-4. The city of Indianapolis is hosting the Super Bowl, but for that record, the Colts are not likely to be playing in it, but someone who reportedly will be there, the material girl. Some web reports saying Madonna will be the halftime performer. No public comment yet from the NFL.
And now, the baseball with the playoffs are in full swing. Two games last night in the American League. The Detroit Tigers, Carol's Detroit Tigers, top the New York Yankees in a match anticipated pitching match-up. Justin Verlander vs. CC Sabathia.
Detroit won 5-4 and leads the best of five series 2-1. Texas Rangers also took a two games to one lead. They beat the Tampa Bay Rays 4-3.
Looks like the grandson of Kim Jong-Il certainly isn't lonely. A lot of Facebook friends he has, and a lot of people scratching their heads over some of his pictures. That's next.
But first, this day in history, back in 1957, the launch of Sputnik One. It was the first artificial satellite to orbit the earth. The Soviet Union launched this satellite which is about the size of a beach ball and weighed less than 200 pounds. It marked the start of the space race between the U.S. and the USSR. Forty-five minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: Good morning, everybody. It's Tuesday, October 4th, and this is your A.M. WAKE-UP CALL. I'm Christine Romans in for Carol Costello this morning joining you live from New York. It is 47 minutes after the hour.
In Libya, all eyes are on Moammar Gadhafi's hometown. Let's go around the world now with Zain Verjee live from London. Zain, the battle still being fought in the Libyan city of Sirte. How important is that city to Libya's National Transitional Council?
ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: It is very important and crucial to them. What they're saying is when the fighting in Sirte is over and when Sirte, they say, falls, they're officially going to declare a transition, and that Libya under Moammar Gadhafi is finally over.
So, it's a very symbolic thing because, really, Sirte is one of the last bastions for the stronghold and supporters of Moammar Gadhafi that are still out there fighting. That and this other place called Bani Walid. Now, there were couple of senior members of the National Transitional Council also saying when Sirte falls and Libya is in a transitional phase, after that happens, that they don't even want to stand, but this is so crucial, Sirte, because it is so symbolic -- Christine.
ROMANS: All right. So, around the world now to Kim Jong-Il's grandson. We're hearing a bit of a Facebook celeb he was. What about this? This very closed society and the grandson on Facebook?
VERJEE: Yes. The hermit kingdom. The world's most secretive country. That's how we hear about North Korea, but hey, guess what, there is some kind of a facebook scandal going on whether it's a school Facebook page or his own Facebook page. Kim Jong-Il's grandson, Kim Han-Sol has this Facebook page, and the South Korean media are reporting this and that they've been picking over his blog and picking over these pictures.
Apparently, he is 16 years old. He likes American movies. He also likes photography. He likes travel, it says, and he likes going to spas to, apparently, Christine.
There was also a picture of him there with a young woman that he's posted, and they're having all these exchanges, but one of the things that I found in the reports most interesting is that he posted this poll and asked his friends whether they preferred democracy or communism. And he says, he preferred democracy. I don't know how well that went over with grandpa.
ROMANS: Wow. Well, I suspect grandpa might not be on Facebook. Like many young people, their parents or grandparents have no idea what they're doing on Facebook. All right. Thanks, Zain. Nice to see you this morning. Have a great day.
Here in the U.S., CNN has learned that New Jersey governor, Chris Christie, is on the verge of saying whether he'll throw his hat in the race for the Republican presidential nomination. One source said he could make a decision within the next 48 hours. We're told Christie and his wife spent the weekend going over the pros and cons of running for president.
An important case before the Supreme Court this session. The question, should police be allowed to track you with a GPS device without a warrant? The high court is examining a drug case in the D.C. area, but a California case is included as well in the brief -- as a brief.
The college student, Yasser Afifi claims the FBI secretly attached a GPS device to his car last year. It was discovered by his mechanic. Afifi says the Fbi told him that an anonymous informant had called him a national threat.
(BEGIN VIDEO CLIP)
YASIR AFIFI, COLLEGE STUDENT: I don't feel angry at all. I just feel really confused and anxious to find out how this turns out. (END VIDEO CLIP)
ROMANS: All right. New documents leaked to CNN purport to show that attorney general, Eric Holder, was aware of the controversial "Fast and Furious" gun running operation as far back as July of last year. That directly contradicts Holder's testimony to congress.
Under the "Fast and Furious" operation, ATF agents allegedly allowed thousands of weapons to cross the border and fall into the hands of Mexican drug cartels in the hope of tracking these drugs -- these guns where they were going. A high-level justice department official tells CNN that Holder never misled lawmakers when appearing before the Senate back in March, but "Fast and Furious" still a controversy.
Now, let's go to meteorologist, Rob Marciano, live from Atlanta. Where are we expecting flight delays this morning, Rob?
ROB MARCIANO, AMS METEOROLOGIST: Northeast a little bit, but not as bad as yesterday. We're starting to see a bit of a shift in the weather pattern, Christine. Good morning again.
Showers, yes, unsettled weather continues, but today, may very well be the last day of what you see here as far as the circulation goes, but still, some showers across parts of Jersey, the Delaware Valley, up across parts of New England, Massachusetts, specifically seeing some showers this morning.
And that will begin to wane as we go through the afternoon. As far as what's going on elsewhere, we're looking for delays across the area. In through New York and Boston and Philadelphia, D.C., some thunderstorms potentially in Vegas. We saw some of that this morning and Salt Lake City, some rain and higher elevation snow.
Windy across the midsection of the country, and that will be dangerously windy with temperatures that will be warming up into the 80s. Record-setting temperatures in some spots across parts of the upper Midwest. Eighty-one degrees in Minneapolis. They'll be 83 degrees expected in Denver.
And potentially, some fire danger across this area. Red flag warnings are posted for a good chunk of real estate across the Midwest and Northern Plains. Meanwhile out west, five to 10 inches of new snow expected across the high sierras, above 7,000 feet. Winter storm warnings are posted there.
Winter storm watches are posted for the Wasatch of Utah. So, we are getting off to an early start as what's anticipated to be another active season. All right. Speaking of the west, we'll go a little bit further west to Hawaii. Why not, huh? Now, this is the birthplace of surfing as legend goes, and now, Christine, the Hawaii State Board of Education has decided, they're going to make surfing part of the curriculum.
Part of Phys Ed and eventually make it a competitive sport. You know, as far as the mainland is concerned, that's kind of like saying, we're going to teach you how to ride a bike when you get to high school, isn't it? I mean, everybody surfs in Hawaii does it quite well. So, we'll see where this goes. But now, it's -- it'll be -- you know, they'll have jerseys, I guess, and you know, team buses and go compete against other high cools, eventually.
ROMANS: I love it.
MARCIANO: Doesn't that look good? Doesn't that look inviting?
ROMANS: It does. I don't think they're going to compete against, you know, my old high school in Iowa. We don't do much surfing there. It's mostly football and volleyball.
(LAUGHTER)
MARCIANO: I can't imagine. But, you know, do other things well in Iowa besides --
(LAUGHTER)
ROMANS: Politics. All right, Rob Marciano, yes, see you at 6:00.
OK. Starbucks has come up with a plan to help create jobs, but it all depends on whether people are willing to give.
But first, let's take a look at the word of the day. Today's actually a phrase. Peer benchmarking. Find out what that means and why you need to know it right after this quick break. It's 55 -- 54 minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: It's 57 minutes after the hour. This is your A.M. WAKE- UP CALL. Good morning.
Now, back to the word of the day. Today, it's a phrase, peer benchmarking. It means setting salaries for executives that is equal or above the median for executives at similar companies. It's a strategy that more companies are using to keep talented bosses from leaving. It makes headlines because Amgen, a biotech company, out in California claims peer benchmarking is the reason it's CEO received a $6 million raise despite losing seven percent, seven percent of its investments over the past five years.
Now, let's go to Carter Evans for a look at your morning money. He joins us live from the NASDAQ MarketSite here in New York. Good morning, Carter.
CARTER EVANS, CNN CORRESPONDENT: I'm in a sea of red.
ROMANS: Oh, no.
EVANS: I know. I know. I hate it.
ROMANS: Well, just like the fourth quarter beginning just like the third quarter ended, I guess.
EVANS: Yes. Third quarter, actually, the worst for stocks since the 2008 financial crisis. Now, we move on to the fourth quarter and here's what we got behind me, and it was an ugly day yesterday. Today is not looking a whole lot better. Take a look at our futures right now. Still concerns about the debt crisis in Europe.
Dow futures down 54 points. NASDAQ off about nine. S&P 500 down about five points. We do have a report on factory orders today, but really, nothing down the pike as far as good news that could turn things around. A lot of people are concerned about the possibility that the parent company of American Airlines may have to file for bankruptcy as well. So, we're keeping an eye on that one today.
ROMANS: Factory orders not usually a big market mover, but Bernanke at 10 o'clock, that could be. So, that's what everybody in the markets be watching today.
EVANS: Yes.
ROMANS: Meanwhile, Starbucks wants to step up the jobs challenge. Tell me about it.
EVANS: Yes. So, this is pretty interesting. Basically, they have a new program. It's called let's create jobs for USA. This is Starbucks CEO, Howard Schultz's, idea. And basically, what they're looking for is for you to donate money to help people get work. All of the money donated goes to the opportunity finance network, and this is a nonprofit that helps give small businesses loans/
So, five bucks gets you a red, white, and blue bracelet showing that you donated to help create jobs in America. Also big news today, Rhapsody buying Nabster subscribers. You see Best Buy bought Nabster a couple of years ago for about $121 million. Well, now, Rhapsody is buying the subscribers from Best Buy.
There's no word on exactly how much that deal is, but there's a lot of consolidation in the online music world these days. Back to you.
ROMANS: All right. Carter Evans at the NASDAQ. Have a great morning, Carter.
"AMERICAN MORNING" continues right now.
