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Primary Day Races to Watch; 'Don't Ask, Don't Tell' Vote; American Hiker Released From Iran; Teachers Q&A with President Obama; Ex-Wrestling Exec Up in Polls; Justice Department Expects to Sue BP; Double-Dip Fears Recede

Aired September 14, 2010 - 10:59   ET

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

TONY HARRIS, CNN ANCHOR: Live from Studio 7 at CNN world headquarters, the big stories for Tuesday, September 14th.

Back-to-school clothes shoppers making august a very good month for retail sales. That is helping quiet chatter of a double-dip recession.

President Obama leaving the White House shortly for a back-to-school pep talk with the nation's students. Coming up, a chat with a Virginia teacher who was face-to-face with the president on Monday.

And Cuba's seismic economic shift. A half-million government workers getting their pink slips. The communist country hoping to kick-start private enterprise.

Good morning, everyone. I'm Tony Harris. Those stories and your comments right here right now in the CNN NEWSROOM.

Let's see. A Tea Party favorite and a GOP candidate locked in a tight race, a long-time congressman battles ethics charges and five opponents. It is Primary Election Day in seven states and the District of Columbia, and we are spotlighting the hot races to watch.

Deputy Political Director Paul Steinhauser joining us live from Washington, D.C.

And Paul, Delaware and, let's see, New Hampshire top our list because of what we like to call the Tea Party factor.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: You are absolutely right, Tony. This last big round of primaries this year, and you've got that kind of crisis going on there on the Republican side in the primaries.

Tea Party-backed candidates, also conservative candidates taking on and gaining strength at the expense of the mainstream Republican candidates.

Let's start in Delaware, where longtime Republican Congressman Mike Castle, he's the moderate Republican, former popular governor of the states. But Christine O'Donnell, who has the backing of the Tea Party Express and Sarah Palin, has been gaining strength. And we're going to see this one could come down to the wire. This would be a huge victory for the Tea Party if she wins tonight.

In New Hampshire, something very similar as well. You have got a woman -- the former attorney general up there of New Hampshire, Kelly Ayotte. She is backed by the establishment Republicans. But a guy called Ovide Lamontagne -- just trying to make sure I can pronounce that -- he has run before up there.

He is a conservative and outsider, and he is gaining strength as well. If he wins, another big victory for the Tea Party movement. Some of the groups are following and supporting him.

And also in New York State, Tony, a similar dynamic where Rick Lazio is running for governor. He is the more establishment candidate. But an outsider, a businessman, and a more conservative candidate from upstate New York, Carl Paladino, is gaining strength. So it's a real storyline we're seeing here -- Tony.

HARRIS: Yes. Hey, Paul, is there any possible backlash for the establishment GOP?

STEINHAUSER: Yes, there could be a backlash. Listen, no doubt about it, the Tea Party movement has had a lot of success in the primaries this year. But here's what could happen.

Some of these candidates that are now nominees could be -- and the Democrats hope this is true -- they could be maybe a little too out of the mainstream, maybe a little too extreme, too conservative for the moderate and Independent voters who dominate on November 2nd. So we'll find out if there's a backlash or if this really is helping the Republican Party. We'll find out on Election Day.

HARRIS: Yes. Let's see here. New York now, we've got Charlie Rangel plus five challengers, and, of course, the upcoming ethics trial. How is he expected to do tonight, Paul?

STEINHAUSER: Charlie Rangel -- and check this out. It's right up on our CNN Political Ticker, a nice story by Mary Snow. Charlie Rangel never has really had any problems in the primaries before, but you're right, he is sweating this one out.

He's been in Congress almost 40 years, he's facing five challengers, including Adam Clayton Powell IV, who is the son, Tony, of the guy Rangel beat 40 years ago. But because of all of these ethics problems, it could be pretty close tonight.

HARRIS: OK, Paul. Appreciate it. Thank you.

(NEWSBREAK)

HARRIS: And Senate Democrats pushing a vote for next week to repeal the military's "Don't Ask, Don't Tell" policy on gays and lesbians.

Pentagon correspondent Barbara Starr is here with more on the story.

And Barbara, let's start here -- where do things stand on this, let's face it, highly controversial issue? BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Tony, as you just pointed out, the Senate Democrats now say they will bring this all to the floor of the Senate next week. It's going to happen when they take up the defense spending authorization bill, the huge Pentagon defense budget.

Attached to that is the provision that would repeal "Don't Ask, Don't Tell," the ban on gays and lesbians openly serving in the U.S. military. So they're going to take it to a vote next week as part of the authorization bill, and, of course, the Pentagon wants to see that authorization bill passed. That's very critical to them right now.

There is some opposition to all of this from some Senate Republicans. The House has already passed the measure, so if it passes the Senate, they would get together and have the final agreement, but it wouldn't necessarily mean the ban is immediately repealed because there is still a process by which President Obama has to certify that it wouldn't impact troop morale unduly. And this all comes of course at a time when a federal judge has already ruled that the ban is unconstitutional -- Tony.

HARRIS: OK. Barbara Starr at the Pentagon for us.

Barbara, appreciate it. Thank you.

Let's see -- Hurricane Igor is no longer alone in the Atlantic. Our Rob Marciano has his eyes on two hurricanes.

Rob, good morning.

ROB MARCIANO, AMS METEOROLOGIST: Yes. Good morning, Tony.

Overnight, Hurricane Julia developed from a tropical storm. It's way out there in the Atlantic. But Igor continues to steal the headlines as far as the size and shape of this thing.

Look at that monster storm beginning to make a bit of a northerly turn. Still has winds of 135 miles an hour.

We have got the updated forecast track from the National Hurricane Center coming up in just a little bit.

(COMMERCIAL BREAK)

HARRIS: American hiker Sarah Shourd spent more than a year in an Iranian prison. Today, just a few hours ago, she was released. She was accused of illegally straying across the border while hiking in Iraq.

CNN's Reza Sayah is in neighboring Pakistan.

Reza, good to see you.

Look, after more than a year, why was she finally let go?

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Well, Tony, Iranian officials are citing her medical condition. A representative from Sarah Shourd's family had told us earlier that recently, she discovered a growth in her breast. They earlier told us that she was suffering from a pre-existing gynecological condition. So when a senior prosecutor in Tehran came out on Sunday, announced that Iran was willing to release her on this $500,000 in bail money, that's the reason that they cited.

And the release took place late this afternoon Iran time, according to her lawyer. We are learning some new information about the release.

Her lawyer telling us that he went into Tehran's prison this afternoon, signed her release papers, and they walked out. At that point, she was handed over to Swiss officials. Because Tehran and Washington do not have diplomatic relations, it is the Swiss Embassy in Tehran that is playing the role of mediator in this matter.

He lawyer telling us she was in good spirits. She was smiling, although she did say it was her wish that her companions, the other two U.S. hikers, were with her.

But six employees, the prison officials who were processing her release, her lawyer says, gathered around her to wish her well and tell her good-bye. One made light of the moment, Tony, telling her he didn't want to see her back in Evin Prison anytime soon.

HARRIS: You know what, Reza? Let's listen to the Iranian prosecutor. I believe we have some sound here.

(BEGIN VIDEO CLIP)

ABBAS JAFARI DOLATABADI, TEHRAN PROSECUTOR GENERAL (through translator): We came to this conclusion that because of the situation that she was staying in, we decided to kind of give some assistance from detention. We decided to set her free to the $500,000 bailout. And then today the representatives of this lady who accepted to bail her out, it was paid in Muscat Bank of Iran. The money was paid there, and the judge issued the release order, and Ms. Shourd was simply set free, and she can leave Iran if she wants to.

(END VIDEO CLIP)

HARRIS: And Reza, I think we heard a little bit of the conversation there about a bail being paid. Can you confirm that a bail was paid? And we had heard a number as large as $500,000.

SAYAH: Well, you heard it from the prosecutor general there. According to him, that bail money was posted to a branch of the Iran Bank in Muscat, which is the capital of the Middle Eastern country of Oman, which is just south of Iran.

So, according to this prosecutor, that bail money was posted. There were some reports that Sarah Shourd's family were requesting the Iranian government to lower that bail money, but according to the prosecutor, that didn't happen and the entire amount was posted to the bank in Muscat, Oman -- Tony.

HARRIS: OK.

Our Reza Sayah for us in Pakistan.

Reza, appreciate it. Thank you.

Five hundred thousand workers getting laid off in Cuba, but the drastic loss could mean a new era for the Cuban entrepreneur. We will get details from Havana.

(COMMERCIAL BREAK)

HARRIS: Economic reform begins in Cuba with a bombshell. Half a million state workers getting laid off, but there is a silver lining. Cubans may finally get a chance to pursue their dreams.

CNN's Shasta Darlington reports from Havana.

(BEGIN VIDEOTAPE)

SHASTA DARLINGTON, CNN INTERNATIONAL CORRESPONDENT: Cuba says it plans to eliminate half a million state jobs over the next six months, a drastic 10 percent reduction in the public workforce. But the communist government says it also plans to expand the private sector, helping soak up some of those lost jobs.

Cuba's official labor union made the announcement in state media on Monday, but back in August, President Raul Castro had already warned that one million state jobs would be shed over five years. This latest statement makes it clear that layoffs are imminent.

Now, some Cubans we've talked to say they're worried that jobs they have long taken for granted will no longer be guaranteed.

UNIDENTIFIED FEMALE (through translator): Here they give everyone a job. When one door shuts another opens.

DARLINGTON: But others are hopeful they'll have more freedom to work for themselves and set their own prices, earning more than the average state wage of $20 a month.

UNIDENTIFIED MALE (through translator): If they want to rent me a space, let them do it. I would rather be working for myself. You have more freedom.

DARLINGTON: The state currently controls more than 90 percent of the economy, running everything from ice cream parlors to factories. Even plumbers and birthday clowns are public workers.

And it isn't clear from the statement where jobs will be shed or which sectors will see more private enterprise. But the government has said it won't abandon workers. They said they could reassign them to needy areas like agriculture and construction.

Castro has already launched some moderate pre-market reforms since taking over from his brother, Fidel Castro, in 2006. He has handed unused land over to private farmers and even given barber shops to the employees. But in his latest statement, he says hundreds of thousands of workers will move to the private sector in the next couple of years.

Shasta Darlington, CNN, Havana.

(END VIDEOTAPE)

HARRIS: The president flying to Philly this morning to address the nation's students. In just a couple of minutes, I will be talking to a school teacher who got some face time with Mr. Obama on Monday.

(COMMERCIAL BREAK)

(NEWSBREAK)

(WEATHER REPORT)

HARRIS: A teacher gets to talk to President Obama. And now she's talking with us. Find out what she asked the president and how she grades his answers.

(COMMERCIAL BREAK)

HARRIS: President Obama has a message for America's schoolchildren: Make the most of your education.

White House Correspondent Suzanne Malveaux live from Philadelphia, where the president will be speaking in about an hour and a half or so.

Suzanne, great to see you.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Nice to see you.

HARRIS: So this year there is no political outcry over this back-to- school speech?

MALVEAUX: You know, Tony, there's very little political outcry over this. It's a very different mood when you think about last year, the protests, some of the conservatives and the critics that were accusing the president of spreading what they called socialist, liberal, extremist ideology. We haven't heard any of that kind of talk this year, and really what a difference a year makes here when you think about it.

When the president is here at Masterman School -- this is a middle and high school -- the speech is going to be about 15 minutes in length. But these kids, this is like one of the best schools in Philadelphia, so obviously there's a lot of excitement around this.

There are some things that we know about the speech that we actually expect. We anticipate he is going to be talking about the need to work very hard, to determine their own future, how important education is.

But, Tony, what's interesting is that it's not political, but it certainly is a nod to the sign of the times. The president is specifically going to say here, "I know a lot of you are also feeling the strain of these difficult times. You know what's going on in the news and your own families' lives. You read about it, the war in Afghanistan, you hear about the recession we've been through. You see it in your parents' faces and sense it in their voices."

So he's going to go ahead and say, look, I recognize some of you kids, you students have it kind of tough right now because your parents -- maybe one parent is out of a job, out of work, somebody else is working a double shift. So he is going to acknowledge that these are tough times for adults as well -- Tony.

HARRIS: So, Suzanne, last year, OK, when the president gave his back- to-school speech, as you mentioned, there was a lot of controversy, a lot of yammering, a lot of it stemming from Florida's GOP's chair, as I remember, Jim Greer.

Hasn't he apologized?

MALVEAUX: Well, you know, it's interesting, because I actually had a chance to talk to Jim Greer. This was last year, when he was really at the epicenter of the controversy. And he was very insistent on saying, look, he was not going to have his kids in school. There were a number of parents across the country that pulled their kids out of school, or out of the classroom, because they felt very strongly -- or at least said so -- that they believed that he was spreading some sort of message that they just felt was dangerous for their kids to hear.

Well, Jim Greer now has told CNN and others in a statement that he's reversing his position now. And you know Jim Greer, he's in quite a bit of trouble with his own party. He was the former chair for the Republican Party in Florida.

He is now facing indictment and fraud and some other charges. But now he is saying, and I'm quoting here, Tony, "Unfortunately, I found that many within the GOP have racist views, and I apologize to the president for my opposition to his speech last year and my efforts to placate the extremists who dominate our party today. My children and I look forward to the president's speech."

Tony, I have asked the White House if they have any comment or response to Greer's apology. We haven't heard back yet, but it is interesting to note the silence, really, the silence of so many critics this year around. They're not taking on the president over his speech.

They certainly are, Tony, however, taking him on other issues like tax cuts and other things. You know, the economy, of course, being the number one issue.

HARRIS: Absolutely.

All right. Suzanne Malveaux for us.

Suzanne, great to see you. Thank you. Got to tell you, you know it's not every day a teacher gets to meet with the president. Our guest this hour got the chance during President Obama's visit to Fairfax, Virginia, yesterday to talk about the economy.

Anne Kane asked the president when he thought things would actually turn around.

(BEGIN VIDEO CLIP)

ANNE KANE, TEACHER: I work for Fairfax County Public Schools, and I haven't had a raise in two years, and I may not even have a job next year because I hear it's going to get worse before it's going to get better.

Do you agree with that? Like, I mean, I know we are starting to improve and jobs are starting to come back, but how long do you think this is going to take? It sounds wonderful.

BARACK OBAMA, President of the United States: Well, first of all, you have a better chance of keeping your job in the public school systems now because Gerry and Jim voted to close a pretty egregious tax loophole that was incentivizing jobs going overseas and that even some corporations that stood to benefit thought was ridiculous. They closed that loophole in order to fund teacher jobs and police officer jobs and firefighter jobs all across the country.

(END VIDEO CLIP)

HARRIS: Anne Kane joining us from Washington.

Anne, good to see you. Thanks for your time.

KANE: Hi, Tony. How are you?

HARRIS: Yes, it's good to see you. I'm fantastic, as a matter of fact. Thanks for asking.

What did you think about the president and what he had to say yesterday, specifically on the economy?

KANE: I was very impressed with what he said. He explained the situation in terms that me, a regular Jane, can understand -- very simple terms. I'm not an economist, I'm not a politician, I'm not a legislator. I'm a regular person, mom who goes to work, and he explained it so that I could understand. I appreciated that.

HARRIS: Are you sympathetic to the president? I'm not going to ask you if you voted for him, but are you sympathetic to the president and what he's trying to do in this administration?

KANE: What do you mean by sympathetic? Could you explain that a bit to me, Tony? I don't understand what you're saying here. What are you trying to ask?

HARRIS: I'm asking you if you were handpicked or are you a supporter of the president? Many who are watching this --

KANE: I was not handpicked.

HARRIS: OK.

KANE: I was not handpicked.

HARRIS: OK. You are a teacher, to be sure. Have you been following the president's race to the top initiative? If you have, what do you think about the efforts to reform the education system in the country?

KANE: I am an instructional assistant. I report to the reading specialist. I help her teach the kids and I don't -- like I said, I'm not a politician. Obama came yesterday. It was the chance of a lifetime.

I had a great time there. I was so nervous, as I am now, and, like I said, he explained in simple terms things that I liked to hear and I wanted to hear.

HARRIS: Well, what specifically about -- Anne, what specifically about the economy did it make more clear to you? Can you help me with that?

KANE: He said that we were in hard times and we're still in hard times, and it's going to take a long time to recover from this recession and I understood why.

It's -- let's put it this way, Tony. I have my storage closet at home in my basement, OK. The more stuff I throw in that storage closet, the longer it's going to take it clean it out.

In order to clean out my storage closet, I have to empty it. I have to put everything on my basement floor, and what do you think I'm going to have there? A huge mess.

And then I sift through this and that, and I say, this is so important I'm going to keep this. This I don't need. I'm chucking it out the window.

HARRIS: Right, right. Hey, is there anything specific --

KANE: So, you know, it's very simple. That's the way I see what he's doing. Anne's plan, Anne's comparison.

HARRIS: Do you have a take - we get all these polls all of the time about what people think about some of the policies implemented by this administration.

Do you have a view on whether, for example, stimulus spending and the way you have seen it implemented, pass through Congress, has been beneficial to the country?

KANE: I can't comment on that because I don't know much about it. I can't comment.

HARRIS: OK.

KANE: Like I said, I'm not a politician. I'm not a legislator. If you want an answer to these questions, I think you need to talk to somebody in politics, the lawmakers. They know about the laws. I don't. I know what I heard yesterday.

HARRIS: OK, and you were happy with what you heard yesterday?

KANE: I was.

HARRIS: OK, Anne.

KANE: He is a great guy. He's a great guy. Hey, Tony, can I say hi to my mother?

HARRIS: And then say hi to your students.

KANE: And Katherine and Lynne and Justin and Fairhill.

HARRIS: OK, so those are your folks and some of your students, right?

KANE: Yes.

HARRIS: OK, it was good to talk to you.

KANE: OK, thanks a lot, Tony.

HARRIS: It was a little different, but it was good to talk to you to you. Thanks for your time, Anne.

KANE: It was different, wasn't it?

HARRIS: It was, it's OK.

Still to come, in the CNN "Newsroom" radio talk show host Tom Joyner is announcing a new initiative to enhance online education. He joins us to talk about that today. Next hour, 12:30 p.m. Eastern time right here in the CNN "Newsroom."

And you can see President Obama's back-to-school speech today at 1:00 p.m. Eastern, 10 a.m. Pacific live coverage in the CNN "Newsroom."

(COMMERCIAL BREAK)

HARRIS: You know, there have been almost 2,000 homicides in Juarez, Mexico so far this year. Despite threats and violent crime, this week's CNN hero is determined to give the people of Juarez the medical care they need.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Juarez was a very nice place, and now nobody can go out. We have 51 working here. In this moment of crisis, people have to have a secure place where healing goes on. My name is Guadalupe Dela Vega. I started the Hospital De La Familia is in downtown Juarez. I go to Juarez sometimes five times a week. We have been working there for 37 years with the community.

Every day we have from 800 to 1,000 people. Some of them can pay, some of them cannot pay, but we don't turn anybody away. I want the violence to stop. Everybody's affected. People have become paralyzed by the fear.

Our hospital has not been touched. Our doctors have not been kidnapped. This is a miracle of God, believe me, and everybody knows that's a place for heals, for loving, for empowering people.

I believe that help is the most important of the human rights. Life is all about empowering people, and it's very important to have an institution giving them hope for the future.

(END VIDEOTAPE)

HARRIS: OK. To see how the hospital has really grown and now treats an average of 900 patients a day or to help the hospital expand health care in Mexico, go to cnnheroes.com.

This just in, we have a statement in from Nora Shourd, Sarah's mom. Let me read a bit of it. "I can only imagine how bittersweet her freedom must be for her, leaving Shane and Josh behind. I owe it to all of them, to Sarah, Shane and Josh to keep pressing until they are all home free."

And then we've got this statement from all of our families. "All of our families are relieved and overjoyed that Sarah has at least been released but we're also heartbroken that Shane and Josh are still being denied their freedom for no just cause."

We're back in a moment here in the CNN "Newsroom."

(COMMERCIAL BREAK)

HARRIS: Let's get you caught up on top stories now. The end of an horrific ordeal for American hiker Sarah Shourd after being imprisoned in Iran for over a year. She is finally free.

Iran's state-run TV reports Shourd was release today on $500,000 bail. Shourd reportedly has health issues. Her fiance and another companion will remain behind bars.

And FBI men hunt underway for this man, Emilio Luna. He is a pediatrician accused of distributing child pornography. Luna had already been arrested, but was given home confinement before his trial. Police say he cut off his monitoring device and fled.

Raphael Nadal can finally justify his number one rating. That's not true. He's a solid number one and has been for a while after finally completing a career grand slam, Nadal won his first U.S. open championship Monday night, defeating third Novak Djokovic. If you have been working on losing weight, maybe you tried the popular diet drug Meridia. Our senior medical correspondent Elizabeth Cohen tells us why the drug is now under review by the FDA.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Tony, for a long time now, the Food and Drug Administration has been concerned that taking the diet drug Meridia can make your blood pressure go up.

Well, the Italians have been studying this and have put out these results. What they found is that when someone was on Meridia, their risk for having a heart attack or stroke went up by 11 percent.

Now it's interesting when they were on a placebo, it went up by 10 percent. Now you might say, well, that's not much of a difference. How dangerous could this drug be? Well, that might be true, but let's take a look at what kind of weight loss results people got with Meridia.

What they found was when Abbott lab did their study is that when someone weighs about 207 pounds and they go on Meridia, they lose 10 pounds over the course of about year, so a 10-pound weight loss for someone who ways over 207 pounds.

Some people are worried, is it worth taking any risk for that kind of a weight loss? Now Abbott labs says that the Italian study has some problems with it. They say that the people who were in that study already had heart problems, and people with heart problems shouldn't be using Meridia.

Now the FDA will be studying whether or not this drug ought to come off the market or maybe should it stay on the market, but perhaps with stronger warnings.

In the meantime, people who were taking Meridia shouldn't panic. If you're concerned about this, the drug isn't going to cause problems necessarily in the immediate sense. You should go to your doctor and talk to your doctor about whether this is the right drug for you, Tony.

HARRIS: Hey, Elizabeth, appreciate it. Thank you.

While we are bringing you news from around the world, we are watching what's hot online. Ines Ferre surfing the web for us. Ines, good morning.

INES FERRE, CNN CORRESPONDENT: Tony, you got to check this one out from cnn.com. She's 68. She's a grandmother, and she's been growing pot in California since the '70s. We'll be right back. You're watching CNN "Newsroom."

(COMMERCIAL BREAK)

HARRIS: We tell you anything can happen in the CNN "Newsroom." And another example of that, this just in, the Justice Department expects to sue BP for damages from the deepwater horizon oil spill. Now according to a filing made Monday night with the U.S. District Court in New Orleans, our senior correspondent Allan Chernoff will join us shortly with additional details.

Time now for CNN Equals Politics. Telling an update now, CNN's senior political editor Mark Preston is with the best political team in television.

Mark joins us live from Washington, D.C. and what is crossing right now, Mark?

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Well, Tony, you know, we have accountants in Congress. We have lawyers in Congress. We even have doctors in Congress, but what we don't have represented in Congress is wrestling executives, and right now, Linda McMahon who is the co-founder of the World Wrestling Entertainment is running for the Senate up in Connecticut.

In fact, right now, a new poll out this morning shows she is within six points of Richard Blumenthal, the Democratic nominee. Linda McMahon, Tony, says that she can spend up to $50 million of her own money to try win the seat.

Republicans hope to pick off the seat, which right now is held by Chris Dodd, the Democrat. You know what? John Boehner right now is in the sights of the Democratic National Committee.

Look at this story right here, Tony, the Democratic National Committee already has a television ad on air attacking John Boehner and they're going up with a second ad. In fact, let's just take a listen to the second ad that is just going up today.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This November, John Boehner wants to welcome you to Boehner-land. Get in the door for 37,000, jet across the country with lobbyists, pass out campaign checks from big tobacco on the House floor.

(END VIDEO CLIP)

PRESTON: There you are, Tony. Who is John Boehner, a lot of people asking? He's the House Republican leader. Democrats are trying to villainies him and say he is too cozy with Washington, Tony, that he is too cozy with lobbyists and doesn't care about working Americans.

That's what the Democrats are trying to do. They're really trying villainies him much like the Republicans are trying to villainies Nancy Pelosi.

And then I have to leave you on this, Tony, your road map to the midterm elections. The CNN 100 today is Michelle Bachman. A lot of people say that she is the next Sarah Palin.

She's a congresswoman from Minnesota. Michelle Bachman is raising lots of money, raising her national profile. She is in the cross hairs of Democrats as well. There is a state senator by the name of Terrell Clark that Democrats hope can knock off Michelle Bachman.

But I tell you what, you got to read the story from Rebecca Cendobran (ph) on CNNPolitics.com. Tony, really your road map to the midterm elections.

HARRIS: What a big day, what a big week in politics. Mark, good to see you. Thank you.

And your next political update from the best political team on television in an hour, and for the latest political news, you know where to go, cnnpolitics.com.

Big race for the mayor of Washington, but is this primary really a vote on education reform?

(COMMERCIAL BREAK)

HARRIS: OK. Let's get you an update on the breaking news this hour. The Justice Department expects to sue BP for damages from the deepwater horizon oil spill. Our Allan Chernoff has more details on this from New York. Allan, what are you learning?

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Tony, the Justice Department is serving notice that it is likely to sue BP. It made this filing in New Orleans District Court late last night.

In this filing, the Justice Department is saying it's likely to sue BP under the Clean Water Act and also the Oil Pollution Act. Now some of this legislation was established after the Exxon Valdez accident back in 1990.

And let's also keep in mind, some of the provisions here can call for many damages, very substantial damages. In fact, this court paper, up to $4,300 per barrel spilled in some cases so we are talking about lots of money.

BP told CNN it has no comment. The company, as we know, has already set aside $20 billion to pay for the oil spill, and it has already sent Washington checks for $390 million, but according to this court filing, Tony, it is very likely that the U.S. is going to seek further damages.

And we're talking about not just environmental damages, but potentially the loss of tax revenue. All sorts of economic damage here from that spill in the Gulf.

HARRIS: OK, Allan, appreciate it. Thank you.

Let's see here. Do we have a shot of the big board New York Stock Exchange? We're going to look at the numbers quickly here. OK, a positive morning so far.

The Dow up 31 points. Anyone have a number on the Nasdaq? The tech heavy Nasdaq for me? Wait for it, wait for -- it's not going to happen. We'll follow these numbers throughout the day for you right here in the "CNN Newsroom."

Look for months now the buzz words on Wall Street have been double dip recession. But as summer begins to fade so is some of that negativity. Alison Kosik is on the floor of the New York Stock Exchange with details. Alison, OK, what's changed here?

ALISON KOSIK, CNN: Well, you know, we're seeing a pattern here. That's positive. That pattern is that economic reports are getting better, Tony. Before your eyes glaze over, I want you to understand this.

The economic reports that investors get really give clues about how healthy the economy is and so far what we're getting lately shows that it's much more healthy than it was. We're going in the right direction.

Here is some proof. Manufacturing activity, that's picking up. Initial jobless claims are falling. The trade gap narrows and retail sales, they've gone up for the past two months. That's really good news to see that consumers are out there spending again.

These positive reports aren't bringing much confidence here at the Wall Street, especially the Dow is up 5 percent for September. The Nasdaq is up 8 percent for the month as well, Tony.

HARRIS: Good stuff. Alison, appreciate it. Thank you.

Speaking of the Nasdaq, it's up to date, 12. Here are some of the stories we're working on for the next hour of "CNN Newsroom."

Frightening possibility could be California pipe line explosion be repeated in neighborhoods all over the country? Our Josh Levs takes a look at our aging pipeline system and how vulnerable we really are.

And American soldiers battling injured in Afghanistan are home from war. Our Barbara Starr reunites with some of the men and hears their stories of survival.

(COMMERCIAL BREAK)

HARRIS: Washington's mayor, Adrian Fenty swept into office in 2006 promising to fix struggling schools. As Kate Bolduan reports now Fenty is in the fight of his career partly because of trying to reform the district's schools.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Good morning. All right.

KATE BOLDUAN, CNN NATIONAL CORRESPONDENT (voice-over): Washington Mayor Adrian Fenty is famous for taking on D.C.'s struggling schools. Now he's in the fight of his career in part because of how he did it. Neck and neck with challenger D.C. Council Chairman Vincent Gray.

MAYOR ADRIAN FENTY, WASHINGTON: We've got an uphill battle because we made tough decisions. We'll continue to make those tough decisions because they're right for the people, but we're not naive. We know that has cost us a little bit of our political popularity we came into the election with.

BOLDUAN: Fenty brought in determined reformer Michelle Rhee as chancellor. Rhee ushered in a wave of controversial change that has become a model for education reform advocated by the Obama administration.

MICHELLE RHEE, CHANCELLOR, DC PUBLIC SCHOOLS: We need to see radical changes, because the outcomes for kids that are happening right now are robbing them of their futures.

BOLDUAN: Those changes include shutting down two dozen schools, firing hundreds of educators, including more than 100 teachers over the summer for poor performance, overhauling the teacher valuation system linking it to student performance for the first time and pushing teacher merit pay.

Though Rhee admits they have a long way to go, test scores have improved during her tenure. She's also won a national stamp of approval receiving millions of dollars in federal race to the top funds.

Now the unexpectedly tight mayoral primary is being closely watched. Some fear a Fenty lost could have a chilling effect on similar aggressive overhauls to education across the country.

ANDY ROTHERHAM, BELLWEATHER EDUCATION PARTNERS: Nationally how that plays out, reinforce this idea that for politicians dramatic education reform is mutually exclusive with furthering your political career.

BOLDUAN: Voters in this city are split whether they will let Fenty stick around to find out.

DIANE SIMS MOORE, WASHINGTON RESIDENT: Old teachers are no longer here. Has the school system change. We still have an unprecedented number of young people who still can't read.

GARY WEST, WASHINGTON RESIDENT: All I know is D.C. years ago was terrible, now they say it's not.

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BOLDUAN: Adding to this debate, recent polls indicate there's a racial divide over Fenty and his leadership. According to a recent Clarish poll, Fenty's challenger Vincent Gray is leading by a 62 to 17 percent margin among likely African-American voters. Fenty holding a 68 to 22 percent lead among white voters.

Kate Bolduan, CNN, Washington.