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American Morning: Wake Up Call
Protesters Rally for Injured Vet; Romney's Breakthrough; Vigil For Injured "Occupy" Protester; Madoffs Attempted Suicide; BP Set To Resume Drilling In Gulf
Aired October 27, 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: Hundreds of "Occupy" protesters are back on the streets in Oakland, one night after a violent face-off with police that left an Iraq war veteran seriously injured.
And could this be a breakthrough for Mitt Romney? The GOP presidential candidate is ahead of his rivals in four early voting states. We have the results of the latest CNN/"TIME"/ORC poll.
Plus, this is sure to wake you up. BP has gotten the green light to drill in the Gulf of Mexico.
Good morning to you. It's Thursday, October 27th.
This is your A.M. WAKE-UP CALL. I'm Carol Costello, joining you live this morning from New York.
Wall Street investors are waking up to some encouraging news this morning. To the delight of the United States and markets around the globe, European leaders say they've worked out a deal to resolve the region's debt crisis. The agreement came today after 10 hours of tough negotiations in Brussels.
As part of the plan, banks agreed to take a 50 percent loss on Greek bonds. The region's banks also must raise about $150 billion in new capital to protect themselves from potential debt defaults. And the plan calls for expanding the region's emergency bailout funds.
Now this debt deal is full of complicated details which must be finalized in the coming days and weeks.
Joining us now from Hong Kong with his take on the agreement is CNN's Andrew Stevens.
Andrew, good morning.
In layman's terms, give us the nuts and bolts of this deal and what it means for the Eurozone, Greece and the United States.
ANDREW STEVENS, CNN INTERNATIONAL ANCHOR: Well, the vision that the European leaders want to see by signing this deal, Carol, is that a big, thick black line has been drawn under the euro crisis. The confidence will be restored in what European leaders are doing to deal with the crisis. And they can then turn around to getting on with the job of lifting economic growth, getting people back to work and generally increasing prosperity.
The devil, though, is in the details. We got some pretty impressive-looking headline numbers there. The banks have been basically -- they've been forced to take this haircut. So, they're going to lose 50 percent of the value of their holdings of all their Greek bonds. That means that Greece doesn't have such a big debt problem to deal with, so it's more -- it's less likely to actually stop paying its debts as in the default. This is all good.
But one of the key ones here is this rescue fund. What the Europeans have done is said we're going to increase it from around about 250 billion euros to 1 billion euros. That's about 1.4 - sorry -- 1 trillion euros, $1.4 trillion U.S. dollars. And that will be there in the form of a sort of insurance to make sure that if there's any other troubles the Eurozone rescue part, there's enough firepower in there to deal with it.
And what that means, Carol, most importantly is what they want to get across, the message they want to get across here is we're prepared to deal with any future problems, which means that you've got confidence as an investor to invest in us again.
So, Europe is getting back to work. If you like, the debt crisis is behind us.
It's a big one on their point of view. That's what they want us to believe. A lot of people aren't believing it yet.
COSTELLO: Well, I was going to ask you how the markets are faring in light of this agreement.
STEVENS: Well, look at the knee-jerk reaction. As you said, it's waking up -- U.S. investors waking up to some pretty good news. If you look at what's happening in Europe, some of the big markets, Germany, France, up by more than 3 percent. Hong Kong up by more than 3 percent. The futures on Wall Street up 1.5 percent of the moment.
They like what they see knee-jerk reaction because there's been so much uncertainty. There's been so many plans that started and fell. But this one is much bigger.
The Brits and Americans were calling for a big bazooka approach. This is probably a medium size bazooka approach, but it is something concrete that investors are holding on to. Whether this lasts, whether this feel-good lasts, that's still a matter of opinion.
But, certainly, the people I've been speaking to -- I've been speaking to a lot here in Asia and Europe today, Carol. They are expressing reservations, whether this actually is going to be one that can stick and turn things around.
COSTELLO: Yes, we're kind of used to the roller coaster ride. So we'll continue to watch. Andrew Stevens live for us this morning -- thanks so much.
A different kind of protest in show of solidarity for "Occupy" protesters in California. They had a vigil last night for an Iraq war veteran who was seriously injured during a clash with Oakland police on Tuesday. Protesters say Scott Olsen suffered a skull fracture when he was hit by a projectile fired by police. A police spokeswoman says the incident is being investigated.
Olsen is a member of Iraq Veterans Against the War. A member of the group says Olsen is hospitalized. He's in serious but stable condition. In New York, hundreds of "Occupy" protesters marched in support of Olsen. At least 10 people were arrested in clashes with police.
You may remember the story about the $6 billion missing or stolen in Iraq? Well, it turns out it wasn't stolen or missing at all. A new Pentagon audit says most of the money ended up where it was supposed to be, in the central bank of Iraq. The Bush administration delivered the money to Iraq during the early stages of the war.
An audit last year was unable to account for the money, which triggered suspicion that it had been stolen or misplaced. The money, by the way, was not American taxpayer dollars. It came from money withheld from Iraq during economic sanctions under Saddam Hussein.
It's not looking good for the congressional supercommittee charged with forging a deficit reduction deal by a mid-November deadline. Congressional sources from both parties say the Republicans on the 12-member committee rejected the latest Democratic proposal, a $3 trillion plan designed to slash the deficit. A Republican aide dismissed the plan as, quote, "outrageously absurd."
Democratic sources say the plan would include cuts to Medicare and Medicaid and other entitlement programs over 10 years. In return, Republicans were asked to agree to more than a trillion dollars in higher tax revenue.
If the committee fails to reach an agreement by November 23rd, across-the-board trigger cuts would go into effect in 2013.
Republican presidential candidate Mitt Romney has something to smile about this morning. A new CNN/"TIME"/ORC poll shows Romney ahead of his rivals in the first four early voting states. Romney is the overwhelming front-runner in New Hampshire. He holds a lead over rivals in Florida and is basically tied for the top spot with Herman Cain in Iowa and South Carolina.
But only about one-third of all respondents say they have their minds made up.
Now, let's head to Atlanta and check in with Reynolds Wolf.
Any flight delays to worry about this morning?
REYNOLDS WOLF, AMS METEOROLOGIST: Flight delays? Yes, absolutely. We've got a lot of flight delays.
Take a look at them. We've got popping for you in just a few moments, beginning in New York and Philadelphia, where it's going to be rain and wind that may keep you on the tarmac for over an hour.
Also, you're going to see some other backups a little bit farther to the north in Boston, showers and wind. Delays just under an hour.
A little bit farther west into Chicago and Detroit, low clouds and a few rain showers may keep you grounded there. D.C. metro, a few delays. Just under an hour with thunderstorms.
And in Dallas, you've got the combination of those thunderstorms, mainly intensifying into the afternoon. And, of course, that wind might give you a few delays there as well.
Take a look at the national perspective. We've got that long frontal boundary that extends nearly 2,000 miles all the way from parts of the Northeast to the Southern Plains. You've got the combination of rain, the sleet, the snow. Quite of cold air coming in from the Northern Plains.
But that fire threat still remains in effect for parts of the Sierra Nevada, out towards the west. In terms of the rest of your forecast, again, one of the big things you're going to be dealing with this morning, slow and go in terms of just the cold conditions for parts of the Northern Plains. Morning lows, 20s and 30s, wind gusts topping 30 miles per hour.
You want to talk about some big wind? Take a look at what's happening down near the Yucatan Peninsula. We're talking about Hurricane Rina barely holding on as a category 1. Thankfully, we do not expect this really to cause too much of a threat for the United States, expected to actually die out as it surges more to the north.
Hey. And speaking of the Tropics, something we found in the tropical waters. Take a look at this video that we have for you.
Black Beard the Pirate, they found his cannon. That's right - diving crews off of Buford inlet on the Carolina coast recovered the large cannon from Black Beard's pirate is ship called Queen Anne's Revenge that sank back off the inlet in June of 1718, over 280,000 artifacts have been recovered, including an anchor weighing some 2,500 pounds. Amazing stuff.
The farther down you go, a little more of the past you find. And certainly, that is one of the prized possessions there from Queen Anne's Revenge. Hard to believe.
COSTELLO: That is fascinating. Any treasures? I mean, there should be buried treasure on board that ship, right?
WOLF: I would think so. You know, they've been tight lipped about it. They'll let you know about the anchor and here and there, but cannon. But there are some other items that we don't know about yet.
I have a feeling if there's going to be some traveling show that's going to spill the beans and share with the public what exactly they found. But amazing stuff.
COSTELLO: Amazing. I hope they share soon. Thanks, Reynolds.
WOLF: You bet.
COSTELLO: Did you hear? PETA plans on suing SeaWorld. The group says the killer whales are being used as slaves. Well, leave it to comedian Stephen Colbert to have a little fun with this one.
(BEGIN VIDEO CLIPS)
STEPHEN COLBERT, HOST, "THE COLBERT REPORT": I am incensed every time PETA speaks for the animals. They can speak for themselves. And, evidently, all they care about is cereal and insurance.
And now, folks, PETA is speaking for the whales.
UNIDENTIFIED MALE: Saying that animal performers like these orcas are essentially slaves.
COLBERT: Really? How many slaves got to hang out all day at a water park?
It's what legal scholars refer to as the air bud defense. Because, evidently, there is nothing in the rule book that whale can't be a slave. Ooh! "Slave Bud." Disney, call me.
(END VIDEO CLIPS)
COSTELLO: Defense attorneys are hoping key witnesses will help prove Dr. Conrad Murray is not a killer.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: If this man had been greedy, he never would have come to an area or community, of Acreage Home, 75 percent of them poor.
(END VIDEO CLIP)
COSTELLO: Just ahead, what made the doctor actually break down in the courtroom.
But, first, our "Quote of the Day." The quote, "I don't know whose idea it was, but we decided to kill ourselves because it was so horrendous what was happening," end quote. That's the comment of the wife of a notorious criminal. Find out who in 90 seconds.
It's 10 minutes past.
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COSTELLO: It's 12 minutes past the hour. This is your A.M. WAKE-UP CALL.
Now, back to our "Quote of the Day." This is the quote, quote, "I don't know whose idea it was, but we decided to kill ourselves because it was so horrendous what was happening," end quote.
It came from Ruth Madoff, Bernie Madoff's wife. She made those comments in an interview with CBS, saying she and her husband attempted to overdose on drugs because of the outrage over his crime. Of course, you remember Bernie Madoff was convicted of masterminding a $50 billion Ponzi scheme, the largest in U.S. history.
Today is a crucial day for the defense in the Michael Jackson death trial. Dr. Conrad Murray's lawyers plan to call an anesthesiologist to counter disparaging testimony given by one of the prosecution witnesses. Ted Rowlands has more for you from Los Angeles.
(BEGIN VIDEO CLIP)
TED ROWLANDS, CNN CORRESPONDENT: When court resumes at some point, we expect to hear from the defense star witness, Dr. Paul White. He is the Propofol expert that they'll use to combat the state's case that Dr. Conrad Murray overdosed Michael Jackson with Propofol. Yesterday in court, it was a very emotional day, specifically for Dr. Conrad Murray who broke down a few times listening to character witnesses. These were all patients brought in to basically tell the jury that Dr. Murray was an excellent doctor.
GERRY CAUSEY, CONRAD MURRAY'S FORMER PATIENT: I know his love, compassion, his feelings for his patients. He's the best doctor I've ever been to because of the treatment, because of the clarity of what he's doing and the follow-ups. And I just don't think he did what he's been accused of.
ROWLANDS: The defense is using these character witnesses for two basic reasons. First, to build Murray up as a competent physician. The other reason is to dissuade the jurors' notion he was in this for the money. Specifically, they had a few of these character witnesses talk about Murray's practice in an underserved area in Houston, Texas.
RUBY MOSLEY, CONRAD MURRAY'S FORMER PATIENT: If this man had been greedy, he never would have come to an area or community, of Acreage Home, 75 percent of them poor, on welfare and Social Security.
ROWLANDS: But the key to the defense case will be coming up with the testimony of Dr. Paul White. We do expect him at some point too take the stand later today.
Ted Rowlands, CNN, Los Angeles.
(END VIDEOTAPE)
COSTELLO: And you can see that testimony Ted just mentioned by watching live coverage of the trial. It airs throughout the day on our sister network HLN, your place for expert coverage of the Dr. Conrad Murray trial.
Rick Perry, he started out strong, but his poll numbers have plunged after his debate performances. Now, he's debating whether to participate in future debates. We'll talk about that next.
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COSTELLO: Seventeen 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 POTUS: Good morning, Carol.
COSTELLO: Let's start with Mitt Romney, shall we? Because according to new polls by CNN/"TIME"/ORC, Mitt Romney is now leading in four key states. You know, some analysts are saying, he's got it in the bag -- but I don't know.
FARLEY: You know, you look at these numbers. If we take them in order, Mitt Romney has a lead of, what, three points in Iowa, which is statistically tied; 27 points in New Hampshire; South Carolina, again, two points, statistically, pretty much a tie; and then a 12- point lead in Florida which has 50 delegates to give out, more than all the other three contests combined.
I think what's fascinating about this is, number one, he's leading in places where he shouldn't be leading, like Iowa. Number two is that Herman Cain is in second place in all of these polls -- in some cases a distant second. And so, I think that's good news for Mitt Romney, no question about it.
The one caveat to that is that about 50 percent, in some cases even more, of the voters say they could change their mind and vote for somebody else. The question is whether it's that 50 percent that is committed to somebody other than Mitt Romney or if it's people who are committed to Mitt Romney, too.
So, this is not over. It's certainly good news for Mitt Romney but doesn't close the deal for him at all, Carol.
COSTELLO: The other thing that I always think about is if Republican voters aren't really excited about Mitt Romney, even though some of them are supporting them, might they stay home or is their desire to get Barack Obama out of office so strong that they will turn out and vote even if they aren't so enthusiastic about the candidate?
FARLEY: That's the big question, isn't it? And I guess the only answer will be: what are we doing a year from now? Are we still at 9 percent unemployment? Is the economy still having its struggles? Is the United States in some sort of an international embroil?
All of those things could figure into it. The question of getting the vote out, though, is one. The question of voter enthusiasm is going to be key for not just the Republicans but even the Democrats in the next election.
You've got that right. Let's talk about Rick Perry a bit. He's debating whether to keep debating. We know he's had his struggles. And if you need a reminder, here's one.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: I think Americans just don't know sometimes which Mitt Romney they are dealing with. Is it the Mitt Romney that was on the side of against the Second Amendment before he was for the Second Amendment? Was it before he was before the social programs from the standpoint of he was for standing up for Roe versus Wade before he was against Roe versus Wade.
He was for race to the top. He's for Obamacare and now he is against it.
I mean, we'll wait until tomorrow and see which Mitt Romney we're really talking to.
(END VIDEO CLIP)
COSTELLO: OK. So that was just one example of -- that was a really ugly performance.
FARLEY: (INAUDIBLE) was a merciful thing, wasn't it? Out of time, Mr. Perry. Oh, thankfully. Mitt Romney's gears were turning in his head watching him slowly fall apart. Look --
COSTELLO: I know. What must have been going through his head. But the question is, though -- go ahead, Tim.
FARLEY: No, I was going to say, we never had a presidential debate in this country until 1960 and we didn't have another one again until Jimmy Carter debated Ronald Reagan. That said, debates are a part of the landscape now and you have to sell yourself on TV. One can only imagine if Rick Perry is not able to hold his own among those seven or eight candidates who are on the stage or against Mitt Romney, what is it going to be like if he were the candidate against Barack Obama?
And I think that's the question people will ask. I understand what he's saying. But, you know, debates are not always the best way to sell yourself. But, frankly, that's the culture we live in and you have to be able to at least hold your ground.
So, I don't think that not participating is going to help him out at all. I think it's something that is going to be -- is going to be a problem for him if he can't participate in these debates. I don't think it sends a good signal at all, Carol.
COSTELLO: All right. Tim Farley, joining us this morning -- thank you as always. Tim Farley, host of "Morning Briefing" on Sirius POTUS Radio.
As lawmakers in Italy try to get a handle on their massive debt, two decided to get a handle on each other -- you know, as in going at each other's throats. We'll have more on this big brawl just ahead.
(COMMERCIAL BREAK)
COSTELLO: It's 24 minutes past the hour.
Thousands of women in Yemen have set their veils on fire in protest. They are outraged at the crackdown on anti-government demonstrators.
Let's head around the world now with Zain Verjee. She is live in London.
This is a pretty conservative Muslim nation. So, the sight of burning veils is really striking. What was their inspiration?
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: It really is, you know. It's a very rare thing to happen in a conservative Islamic society like this. And this has never happened before. They just threw off their veils that in this country that is used to cover their heads and faces.
Their inspiration for this, Carol, was actually one of the women who won the Nobel Peace Prize, an activist from Yemen. She was one of three.
As you can see from this video, they were out on the streets. They were protesting, showing off their veils and then lighting them up on fire. They are really angry with President Saleh and the harsh, brutal government crackdown on protests there -- Carol.
On another topic, we have to talk about European leaders because they appear to have this deal to try and stem the debt crisis and save, you know -- and save the euro. Part of the deal means Italy has to wrangle its own debt but during debate between lawmakers in Rome, the fists started flying. Tell us about that.
VERJEE: Take a look at this picture, Carol. It really says it all -- two lawmakers literally at each other's throats. Imagine this kind of scene, Carol, on the House floor or the Senate floor. But that's basically what happened here.
One of the things they were discussing and that Italy needs to do is to deal with pension reform. And the proposition is that they need to raise it by two years. So that gets the age up to 67. This is something so controversial.
Yes, and look what happened. Two lawmakers went at each other like that. And they had to get people to pull them off one another. There was a recess for a few minutes. Parliament was actually suspended for a short while.
The Italian economy is in pretty bad shape. Not as bad as Greece but something definitely to be concerned about, and it needs help.
COSTELLO: So did the fight help anything? Maybe they just needed to get their aggression out. And now, they are ready to compromise.
VERJEE: The fight grabbed the headlines but the issue is still controversial, you know? I mean, if people could settle political scores like that, you know, it would be a lot more fun to watch. But I don't know how productive something like that actually is.
There were lawmakers from different side of the political divide. On one side were people from Berlusconi's coalition government and the other was the opposition. So, they couldn't see eye to eye but they'll have to because Italy needs to get it together.
COSTELLO: Yes. So, does the United States. I actually can envision something like that happening on the House or Senate floor here, but I hope it doesn't, of course.
Zain Verjee live in London, thanks.
It's just the news investors have been waiting to hear. Finally, a debt deal in Europe. Now, the markets are reacting. We'll have that reaction just ahead.
And feeling like they were both pushed to the edge, the shocking confession from the wife of Bernie Madoff.
(COMMERCIAL BREAK)
COSTELLO: Good morning to you. It is Thursday, October 27th. This is your A.M. WAKE-UP CALL. I'm carol Costello joining you live from New York this morning. It is 30 minutes past the hour.
U.S. stock futures are in positive territory this morning after European leaders finally struck a deal on the region's debt crisis. Many were worried that without a solution, it could mean another global recession. Here's what negotiators in Brussels have worked out. European banks have agreed to take a 50 percent loss on the face value of their Greek debt.
The banks have also been ordered to raise their capital reserves. And an emergency bailout fund will be fattened up. It could be more than doubled to around $1.4 trillion.
Let's go to Christine Romans. She's live here in New York with me for a quick breakdown on what this deal means for the United States and investors here.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Healthy Europe, Carol, is incredibly important to a healthy United States, and that is the bottom line to all of this. Very complicated banking and debt negotiations that have now concluded in Europe. We want stability in America's number one trading partner.
The United States sends $400 billion worth of goods every year to the EU. We know that right now, European growth is only 0.2 percent. That means its economy is barely growing. if you have a protracted debt crisis, it could tip this economy, Europe's economy, into a deep recession and a deep recession would certainly mean a recession again in the U.S.
Also, there's the global banking system. The nature of banking is global. You want healthy European banks because U.S. banks, U.S. private equity firms, U.S. investors, U.S. taxpayers, and U.S. investors all have exposure to what's happening there. So, you cannot really separate the health of Europe from the health and the recovery of the U.S. right now.
And that's why progress was so carefully followed over the past few weeks and months here in the U.S. because they wanted to see something concrete done. The three points there addressing the Greek debt issue for banks, addressing the recapitalization of European banks and beefing up the firepower of that European stability fund.
All three of those elements are something that had to be hammered out. And so far, investors are pleased with what they see. They think that a crisis has been averted here. Of course, the commitment and the execution of all of that is what's incredibly important. But, at least, for now, they like what they see, Carol.
COSTELLO: OK. We'll keep our fingers crossed. Christine Romans, we'll see you in a little bit.
ROMANS: You're welcome.
COSTELLO: A surprising confession about Bernie Madoff from his wife. More on that when we come back.
(COMMERCIAL BREAK)
COSTELLO: Thirty-four minutes past the hour. Good morning to you.
A different kind of protest in show of solidarity for occupy protesters in California. They held a vigil last night for an Iraq war veteran who was seriously injured during a clash with Oakland police on Tuesday. Protesters say Scott Olsen is hospitalized, but -- he's in serious but stable condition after a police projectile fractured his skull.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I know that many of you are standing for the same things that Scott stands for. So, please, hold him in light, hold some really positive thinking around believing that he is going to fully recover and continue to struggle alongside us.
(END VIDEO CLIP)
The incident is being investigated by Oakland police. In the meantime, in New York, hundreds of protesters from the occupy movement marched in support of Olsen. Bernie Madoff and his wife, Ruth, they tried to kill themselves. That's what Ruth Madoff tells CBS in an interview to air Sunday on "60 Minutes." Ruth Madoff says it happened on Christmas Eve in 2008 amid all the anger that Bernie Madoff had bilked billions from investors in the largest Ponzi scheme in U.S. history.
(BEGIN VIDEO CLIP)
RUTH MADOFF, BERNIE MADOFF'S WIFE: I don't know whose idea it was, but we decided to kill ourselves because it was so horrendous what was happening. We had terrible phone calls, hate mail, just beyond anything. And I said I can't -- I just can't go on anymore.
(END VIDEO CLIP)
COSTELLO: Bernie Madoff is now serving a 150-year sentence in a federal prison in North Carolina.
BP is set to resume drilling in the Gulf of Mexico. The company announced it has earned its first permit to drill for oil in the Gulf since the Deepwater Horizon explosion last year. The government says that BP has met all of the enhanced safety requirements. The explosion on the Deepwater Horizon rig killed 11 workers leading to one of the worst oil spills in U.S. history.
Some campaign watchers are calling this the silly season. How that applies to Rick Perry and Herman Cain right after this.
But first, time for your "Get Smart" question of the day. Halloween is right around the corner, and the National Retail Federation says Americans are expected to spend a record amount on the holiday. So, what is the estimated money spent by each person celebrating Halloween? The total includes decorations, costumes and candy. Is it A. $23.75, B. $72.31, or C $112.19? We'll have the answer in two minutes. It's 36 minutes past.
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COSTELLO: It's 39 minutes past the hour. Welcome back. This is your A.M. WAKE-UP CALL.
Now, back to your "Get Smart" question of the day. The National Retail Federation says Americans are expected to spend a record amount on Halloween this year. So, how much will they spend? How much will each person spend? Keep in mind the total includes decorations, costumes, and candy. So, is it A. $23.75, B. $72.31, or C. $112.19?
The answer is B. $72.31. The total money expected to be spent by each American actually collectively all Americans, get this, almost $6.9 billion on Halloween alone.
Time now for a "Political Ticker." CNN contributor John Avalon calling on the phone. Actually, he's calling this the silly season of the campaign trail, and here's why. Republican presidential candidate, Rick Perry, raising the so-called birther claims about President Obama. The latest and very odd campaign ad from Herman Cain featuring his campaign chief of staff taking a long drag on the cigarette.
And Michele Bachmann's entire New Hampshire campaign staff resigning accusing her national staff of being, quote, "rude, unprofessional, dishonest, and at times, cruel." John Avlon joins us now on the phone. Good morning, John.
JOHN AVLON, CNN CONTRIBUTOR (on the phone): Good morning, Carol.
COSTELLO: So, what's going on with these three candidates? Have they lost it?
AVLON: It's sort of a systemic problem at the moment. Not only is silly season coming, but the side show is in danger of taking over the big tent here. You get the sense that some of these folks are forgetting they're actually running for president of the United States. Instead, the campaign has taken on sort of a reality TV show feel.
At the end of the day, I think not only degrades their campaigns but runs the risk of degrading the country in the process because we're better than this.
COSTELLO: In fairness, it's sort of working for Herman Cain, isn't it?
AVLON: Well, Herman Cain ad, I think, actually, was brilliant in the way that it was able to generate enormous amount of attention for very little money. I don't think Herman Cain ad divided the country in any kind of cynical way, but just watch when the Super Pac ads start airing on our TV. I mean, you know, the genre is going to get a whole lot worse.
The Cain ad, I think, was relatively inspired. It's more -- I mean, Rick Perry stepping on his flat tax message. He's trying to reboot his campaign, re-launch his campaign which is really struggling in the polls. And he distracts himself and the whole campaign by doubling down on this thoroughly discredited birther nonsense.
COSTELLO: Not only that, but --
(CROSSTALK)
COSTELLO: He's now -- I mean, he's backed off his birther claims. He says the president was born in the United States. He's sure about that, but he's urging the president to release, you know, his transcripts from Harvard to see if the president got good grades. I mean, this is --
AVLON: Oh, for God's sakes. He's taking -- talking points from Donald Trump now.
COSTELLO: Well, maybe -- maybe so. The other interesting thing about Rick Perry, though, we know he doesn't do well in debates because we've witnessed it, right? So, his campaign manager said maybe Rick Perry won't participate in the debates. Maybe, he'll just, you know, gather with groups of voters where he's more comfortable and share his ideas. Do you think that will be more effective for Rick Perry?
AVLON: No, I don't. I don't think you get to say that debates are too hard, but I'm ready o be president of the United States in a challenging world. I mean, you got to step up and submit your candidacy, you know, side-by-side with the other folks running for office. You don't get a pass because you don't think you're, you know, particularly good at something.
You know, people run the gauntlet of running for president, and it is demanding, but it's part of the job application for the most important job in the world. And it's a completely legitimate part of the process to submit to debates standing by your fellow competitors and being judged by the American people.
COSTELLO: In the meantime, Mitt Romney just keeps on chugging right along. I mean, in recent polls, he's ahead in virtually every state that's important. And I mean, by -- in a pretty much way ahead. I mean, you can throw Herman Cain in there, but we're still not sure whether Herman Cain has real sticking power.
AVLON: Yes. The new CNN polls have released yesterday of the battleground states do show Romney ahead, but they also show that around 50 percent of voters consistently are still undecided in the Republican primary. They're not wedded to any particular candidate at this point.
Herman Cain seems to be in a relatively solid second place. Ron Paul is not doing badly. Rick Perry, on the other hand, has really plummeted from his heights. But, you know, we are still a long way away from the votes actually being cast. And a lot of voters have not yet made up their mind.
COSTELLO: John Avlon, thanks for joining us this morning. We appreciate it as always.
AVLON: Thank you, Carol.
COSTELLO: Hey, there's one export to China from the United States. American-style television. And now fed up, the Chinese government has finally said enough of that. That's coming up.
But first, on this day in history, in 1891, Philip Downing received a patent for the street mail box. The metal box with four legs protected mail from both intruders and the weather. It remains virtually unchanged to this day. It's 44 minutes past the hour.
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COSTELLO: Good morning to you. It is Thursday, October 27th. This is your A.M. WAKE-UP CALL. I'm Carol Costello joining you live from New York this morning. It is 47 minutes past the hour.
With Western culture and Western-style television creeping into China, the Chinese government finally says enough of that stuff. Let's go around the world with Zain Verjee. She's live in London. So, reality TV plays in china, American reality television, and the Chinese government doesn't approve?
VERJEE: Yes, "Dancing with the Stars," "American Idol"-type shows, dating shows, talent shows. The Chinese government is not happy about this. There's been a crackdown on shows like this. Let me just illustrate one of the programs. It's called "If you are the One." It's a dating show in China, and the Chinese government is saying this isn't good anymore.
They want shows on the air, they say, that promote morality. Now, the problem with putting on shows that promote morality is that you lose viewers. That's one of the thing analysts are saying. Also, too, don't forget that these kinds of shows have a voting system, right? Just like in the U.S.
And china is not really a democratic country, but all of a sudden, you have these TV shows that are promoting a democratic system. So, the Chinese aren't too happy about that. I'll give you an example of one of the shows that was axe. The "Super Girl Singing Contest," and it was replaced with a program focused on housework and public safety -- Carol.
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COSTELLO: You're kidding. Housework and public safety?
VERJEE: Yes.
COSTELLO: I'm sure that will be a big hit for the government- inspired television series. Let's talk about something really good. This is a story out of India. A man making just $150, he becomes a millionaire.
VERJEE: A millionaire. Who wants to be a millionaire, he does an amazing job. And it's a rags to riches story. He answered all the questions incredibly well. He comes from this Indian state called Behar which is actually the poorest state in India. And now, he's a millionaire. He's so excited. He's saying that he's going to build houses.
He wants to buy books. He wants to learn how to read things properly. And it really has changed his life. And the guy on the right-hand side is a famous Indian actor. His name is Amitabh Bachchan, and so, he was saying that even if he didn't earn all this money, he was just happy that he could hug Amitabh Bachchan and touch his feet and things like that.
So, this is kind of like, you know, for Indians to meet this actor is like something equivalent to, I don't know, meeting Rob Lowe for me.
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COSTELLO: Rob Lowe? VERJEE: Yes. Yes. I'm addicted to "Brothers & Sisters." He's looking pretty good there these days.
COSTELLO: You got that right. Thank you, Zain. Enjoyable, as always.
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COSTELLO: Wall Street investors are waking up to some encouraging news this morning. To the delight of the U.S. and markets around the globe, European leaders say they've worked out a deal to resolve the region's debt crisis. The agreement came after ten hours of tough negotiations in Brussels.
As part of the plan, banks agree to take a 50 percent loss on Greek debt. The region's banks also must also raise about $150 billion in new capital to protect themselves from potential debt defaults. And the plan calls for expanding the region's emergency bailout fund. International markets are up right now in response to the news. Here in the United States, Dow futures up as well.
It's not looking good for the Congressional Super Committee charged with forging a deficit reduction deal by a mid-November deadline. Congressional sources from both parties say the Republicans on the 12-member committee rejected the latest Democratic proposal, a $3 trillion plan designed to slash the deficit.
A Republican aide dismissed the plan as, quote, "outrageously absurd." Democratic sources say the plan would include cuts to Medicare and Medicaid and other entitlement programs over ten years. In return, Republicans were asked to agree to more than a trillion dollars in higher tax revenue.
Tax hikes, don't you know it. If the committee fails to reach an agreement by November 23rd, across the board trigger cuts would go into effect in 2013.
Nature threw a curveball to game six of the World Series. The battle between the St. Louis Cardinals and the Texas Rangers was set for last night, but it was postponed because of a rainy forecast in St. Louis. It's been rescheduled for tonight.
The Rangers hold a three games to two lead and can win their first ever World Series with a victory tonight. If they don't, game seven will be held Friday night in St. Louis.
So, let's head to Atlanta to check in with Reynolds Wolf. So, they're going to play the game tonight, right?
REYNOLDS WOLF, AMS METEOROLOGIST: It's going to be one of those iffy kind of things. I think they'll be able to get it going, but I mean, could there be a delay? It certainly is possible. I mean, fall classic, things always get a little bit weird and the game itself. Certainly, weather wise, it does, too.
Hey, if your game is just trying to get to the airport and take off on time, you shouldn't have any problems getting there. Taking off is a whole different situation. Major delays expected over an hour in New York and Philadelphia. A bit far to the north (ph) and Boston, showers and wind could give you delay under an hour.
D.C. metros. Thunder boomers can give you some delays. Dallas, some thunderstorms in the afternoon, coupled with that wind might keep you grounded. And also, Chicago and Detroit, showers and low clouds could be the big problem for you. We're watching this frontal boundary surge its way eastward right on the top half of the system over the eastern half of the Great Lakes.
We might see a little bit of flurry action up towards Buffalo. Certainly nothing too heavy. That's going to come in the next couple of weeks and months, no question about it. Chilly conditions in the central and northern plains. Very breezy for you in parts of north and central Texas.
Plenty of sunshine out to the west and still the fire threat for parts of the San Gabriels and into the Sierra Nevada. Morning lows in the 20s and 30s. We've got that freeze threat warning. The watches and advisories in effect. Also, the wind near Oklahoma City. That's going to be very breezy on these wide open spaces.
And for Friday morning, that situation is going to push its way a bit more to the northeast, in fact, towards Washington, D.C. into the keystone of Pennsylvania back along parts of the eastern seaboard. Yes, you can expect the morning lows between the 20s and 30s. Winter definitely making itself felt.
One thing very quickly as we were talking about the windy conditions in Texas. Take a look at the windy conditions near the Yucatan Peninsula. We still have maximum sustained winds of 75 miles an hour with Hurricane Rina. This is Category 1 storm. We do expect to veer its way a bit more to the north and then go east towards Cuba.
And I'll tell you, if you take look at the latest computer models, wow, they go a little bit of everywhere. All right, guys. Let's switch gears a little bit. We're going to talk about this day. Take a look at this video. Damn! (ph) What a great shot that is. To be more specific, that is the Condit dam. 700 pounds of dynamite are going to put that thing under water, and it's going to allow the white river to make its way right through.
In fact, the toppling of this dam (INAUDIBLE) to be more specific. It's going to be great for rafters, kayakers, and of course, some of the endangered wild salmon. That is one of several dams they are going to drop on that river to kind of unleash those waters. It should be a great thing.
You know, already the Pacific Northwest well known for many great rivers, great whitewater activities. This is only going to enhance that no question, but dramatic shots to say the very least. Back to you.
COSTELLO: Very cool pictures. Thanks, Reynolds. We appreciate it. WOLF: You bet.
COSTELLO: Big change is coming to the mortgage finance giant, Freddie Mac. We'll have details in a live report from the NASDAQ MarketSite. That's just ahead.
But first, let's tale a look at the "Word of the Day." It's mechanosensing. Find out what it means and why you need to know after the break. It's six minutes until the top of the hour.
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COSTELLO" Three minutes until the top f the hour. This is your A.M. WAKE-UP CALL.
Now, back to our "Word of the Day." It's mechanosensing. What does it mean, you asked? Well, it means a response to mechanical stimuli, especially at the cellular level or below. Researchers are currently trying to learn more about mechanical stimuli hoping they can learn more about the development of tissues and the progression of cardiovascular diseases. Now, you have something to talk to your doctor about.
Now, let's head to the NASDAQ MarketSite and check in with Carter Evans. Numbers are looking good this morning, at least, so far.
CARTER EVANS, CNN BUSINESS CORRESPONDENT: Yes. So far, so good. I think that's actually great conversation for a first date, too. You can use that word of the day there.
COSTELLO: Exactly.
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EVANS: OK. So, we've got a lot coming up today. Of course, we get the weekly unemployment numbers as we do every Thursday. Also, today, we're going to get a reading on our third quarter gross domestic product and hopes are pretty high. Last quarter, it was growth rate of 1.3 percent growth.
This time, some analysts are saying it's possible -- possible we could see a three percent growth rate. That would be great. We're also going to get a reading on pending home sales today. We're going to hear from a bunch of companies, ExxonMobil, Hershey, US Airways, AMV, Electronic Arts, just to name a few.
Take a look at the futures right now. On word of this Euro zone debt deal, this is a deal basically to essentially solve the debt crisis over in Europe. Investors around the world ecstatic. Dow futures up 167. NASDAQ up 42.5. S&P 500 up about 21 points. Looks like it's going to be a good day.
COSTELLO: Well, we hope the numbers keep heading north. What's making headlines on CNNMoney this morning?
EVANS: OK. Freddie Mac's CEO, his name is Ed Haldeman, and he is stepping down. Now, he's only been CEO of Freddie Mac since 2009. And the group is not giving any reason for his departure. He just said that he wanted to retire.
Keep in mind, since 2008, Freddie Mac and Fannie Mae have cost taxpayers about $141 million shoring up the house and economy. So, that's a rough job to say the least.
COSTELLO: Oh, yes. Carter Evans, many thanks to you. Have a great day.
"AMERICAN MORNING" continues right now.
