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Hurricane Irene Batters Bahamas; New York Mayor Talks Hurricane Preps; Apple CEO Steve Jobs Steps Down; Rebels: Believe Gadhafi, Sons Surrounded; U.S. Navy Ships Move Out of Irene's Path

Aired August 25, 2011 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Hi, guys. Good morning.

A lot of nervous people up and down the East Coast right now. Hurricane Irene is battering the Bahamas right now as we speak and the storm is only expected to strengthen. The forecast track still curving up the East Coast all the way to Canada.

This is a huge storm, folks. Just check out the view from the International Space Station.

We're all over Irene, where it is, where it's going. We've got Jim Spellman. He is riding out the storm in the Bahamas. John Zarrella is watching things in Wrightsville Beach, North Carolina. And Jacqui Jeras here in the hurricane headquarters.

Jim, let's go and start with you. What's the situation there?

JIM SPELLMAN, CNN CORRESPONDENT: Good morning, Kyra.

The winds have been blowing like this for hours now. About an hour and a half ago, they really picked up a lot. You can see the sea is being blown over the sea walls here, a lot of the low-lying roads along the coastal areas already have water on them. Fortunately, so far, we have yet to see any major damage to structures. Reports coming in just within the last hour of widespread power outages across the island, as you may expect, as lines get blown down. So far, they have avoided that main blast.

Just about all of the tourists in the area that could get out have gotten out. For the Bahamians though that aren't in the resort hotels, the much more modest homes, it's going to be a lot tougher for them. Everybody hoping they can get through the next two or three hours when the winds are expected to die down some -- Kyra.

PHILLIPS: All right, Jim. We'll keep talking. Please keep us updated.

We want to turn our attention also to the East Coast. An official hurricane watch has been issued for coastal North Carolina all the way up to the Virginia border and that's where our John Zarrella is, where it's looking pretty beautiful right now at Wrightsville Beach -- John.

JOHN ZARRELLA, CNN CORRESPONDENT: Yes, Kyra, pretty tranquil right now. And probably for the next 36 hours or so, it will remain this way. You see no real wave action, the surf is out, the tide is out right now.

But, you know, mandatory evacuations for tourists already under way on some of the outer banks. There's actually video of folks on Ocracoke Island. They're already coming in on the ferries, getting out of harm's way -- not exactly knowing what to expect.

Right here where we are in Wrightsville Beach, we're under a tropical storm watch. Just north of us is where the hurricane watch begins. And, of course, includes all of those outer banks. Now, tens of millions of people, because this storm is paralleling the U.S. East Coast, are beginning and have already started to prepare. Down in Charleston, South Carolina, the shelves have been empty of water, of gas cans, of food staples for a couple of days now.

Up here we tried to buy some stuff yesterday. Gas cans, for example. Couldn't find any gas cans here in the Wrightsville Beach, Wilmington, North Carolina, area.

And that's what you're going to start seeing progressing all the way up the U.S. East Coast as more and more people start to say, hey, you know what, we better start paying real close attention to this because it's looking like it's going to be awfully close, if not on the coastline right up into New England. So, a very dangerous situation certainly developing and certainly that needs to be -- people need to be paying very close attention to from here in North Carolina right up to Maine -- Kyra.

PHILLIPS: All right, John, we'll be talking more.

And, Jacqui, you're watching it right now -- every bit of its movement.

JACQUI JERAS, AMS METEOROLOGIST: Yes. We've seen a lot of little changes some wobbles here and there. Some minor changes in intensity. All of these things can be expected.

But this is turning out to be an extremely dangerous storm that is just lashing through the Bahamas as we speak.

The impact is already being felt in the United States. Take a look at that, that's showers and thundershowers from Irene hitting south Florida. The winds are going to be strong here today. Beach erosion expected and a really high risk of rip currents.

So, this is a huge storm, guys. Take a look -- the wind field is about 500 miles across. As we take a look at the cloud field itself, look at how big this is, nearly 800 miles just to give you an idea.

And the size of the storm really does matter because the bigger the storm, the greater the storm surge. And we're real concerned about that for the Bahamas, seven to 11 feet above normal tide and we'll watch this up the coast, too, and surge will be a problem for us.

A 115-mile-per-hour category 3 storm ripping through the Bahamas today, and tomorrow up the Florida coast, as well as the Georgia coast, and that approaching the Carolinas early on Saturday morning. That's why we have the hurricane watches and tropical storm watches posted. That means conditions are possible in 48 hours.

So that's your Saturday morning. Then, it's expected to ride on up towards the north and to the east. Even if we don't get a direct landfall here, even if we get the best case scenario, we're still expecting widespread power outages and extensive flooding. Worst case scenario would be two different landfalls, one across the outer banks and then another possibly up towards long island, possibly towards Providence, possibly even over towards Atlantic City.

And as that thing scrapes the coast that, would just be terrible in terms of coastal flooding and those strong winds and everybody would be getting that.

But the storm will be weakening after it gets across North Carolina. Why? Part of it because of the winds coming in with the cold front and another part of it -- take a look at those water temperatures. They do get cooler. So, we would be talking about more like a category one or two storm for the Northeast as opposed to a three or four, Kyra, for the Carolinas.

PHILLIPS: All right. Jacqui, thanks.

You saw Jacqui pointed out New York on the map there. New York is not used to earthquakes or hurricanes, but they could be two for two this week.

Mayor Michael Bloomberg right now holding a news conference on preps for hurricane Irene. Let's go ahead and listen in.

MAYOR MICHAEL BLOOMBERG, NEW YORK: They have much greater impact on the system and so we think we are a little bit ahead of where we want to be, at least we hope we are. But we're doing everything we can.

Since 2002, you should know that we've invested nearly $2 billion in city wide sewer system upgrades, $2 billion, including $242 million specifically where we are in southeast Queens, which has helped reduce flooding in what is the most flood-prone area in our city.

Now, the city has already seen the power of Mother Nature once this week and Mother Nature may not be done with us yet. I'm sure that many of you are following the story of hurricane Irene.

I would like to give you an update on how we're preparing our city for all possible scenarios. Unfortunately, there is an element of unpredictability when it comes to the weather, and so we hope for the best, but we prepare for the worst and that's why this city is, I think, ready for this weekend.

By the time Irene gives us -- gets to us, which it's forecast to do sometime on Sunday, it certainly will be a powerful storm, possibly as strong as a category 2 hurricane on Long Island. But anything can happen in terms of its direction and its severity. At this point, the forecast does not indicate that the storm will hit New York City with that strength, but we certainly will see its effects here, including tropical storm-like conditions such as heavy rains and winds of 60 miles an hour or more. And, as a matter of fact, you're going to see some of Mother Nature later this afternoon if the forecasters are right. There is a band of heavy thunderstorms that are scheduled to move across this city later today.

And so, take the normal precautions. When you're out in thunderstorms, don't go out into a field, get inside, inside a car or inside a building and be careful. And also, it's a good time to check in on any neighbors who live alone and could use some help.

If the worst scenario is going to happen this weekend, we will activate other elements of our coastal storm plan, including the possibility of evacuating New Yorkers who live in low-lying areas that could be affected by such storm surges. And that includes places such as Coney Island and Manhattan Beach in Brooklyn, Far Rockaway and Broad Channel in Queens, South Beach, and Midland Beach and other low- lying areas on Staten Island and Battery Park City in Manhattan.

Now, we don't have enough information yet to make that call. There are still too many unknowns. But we will make a decision on whether to call for evacuating certain areas based on the track, the speed and the strength of the storm as it moves from the Bahamas up the East Coast.

In the meantime, there are some steps that New Yorkers can take to prepare themselves for the storm. First, find out if you live in a hurricane evacuation zone, and you can do this by going on the city's Web site, NYC.gov and typing in your address or by calling 311 and giving your address to the call taker.

If you do live in an evacuation zone, now is a very good time to check in with your friends or family in other parts of the city and identify a place you could stay if the weather gets bad.

Secondly, New Yorkers can prepare themselves by stocking up on some basic supplies and making what we call a go bag -- a bag that you can take with you if you had to leave your home at a moment's notice. Some of the things you should have in your go bag are drinking water, a first aid kit, a flashlight, any important medications that you take, essential documents, such as passports or other forms of ID and an extra set of car and house keys.

Now, city government is also taking every possible step to prepare for the storm. Yesterday, we activated our command center at the Office of Emergency Management and we are checking in regularly with the National Weather Service.

I spent a lot of time on the phone today with MTA chairman Jay Walder and we are in constant communication with the state and closely coordinating any needs -- needed resources with state officials and agencies. And I will say that the MTA and the state have been phenomenally cooperative, as you would expect. We're all in this together and the seamless cooperation with us and the state and us with the MTA I think comes about from an awful lot of planning that we have done over the recent period. The heads of all the city's emergency response agencies, including NYPD, FDNY, OEM, transportation, health and buildings are taking steps to ensure that we have the right staff and resources for any contingency. We have an enormous emergency shelter system and a database of thousands of city employees who would be called upon to run evacuation centers and shelters if we need to open them. Our response agencies have had regular drills and exercises to practice what we would do in the event of an emergency and we are prepared to handle one.

The police department is positioning, for example, 50 small boats at station houses in low-lying areas. The NYPD Special Operations Division also has several helicopters and 33 police boats at the ready.

Our city's public hospitals have tested their emergency generators and have topped them all off with fuel. They have also made sure that they have adequate medical supplies and food on hand in case the weather disrupts deliveries.

Our Parks Department is prepared to evacuate -- to schedule forestry crews, inspectors and contractors to be available on Sunday and Monday to handle emergency tree conditions. We have engaged emergency forest contractors and have the ability to activate those contracts immediately.

We are also reviewing the flood plan for the U.S. Open at Flushing Meadows-Corona Park, and we are discussing contingencies for the World Police and Fire Games, which are scheduled to start on Friday.

To help control flooding, the Department of Environmental Protection will have extra maintenance crews out in the field. The crews will respond to highway and street flooding by clearing catch basins like the one we just saw being cleaned out in front of the church or pumping water out of flooded sewers.

Our Sanitation Department has instructed the mechanical street sweeper operations to pay special attention to any litter conditions near storm sewers in order to allow for a freer flow of rainwater into the storm sewer system.

And our Department of Transportation is deploying crews to 26 designated flood locations to clear debris from catch basins.

In addition, three Department of Transportation facilities with high likelihood of flooding will be evacuated and the equipment will be moved to higher ground.

Now, we expect that Irene will have an effect on our beaches, and we're urging anyone who chooses to swim in the ocean today or this weekend to be extremely cautious and to watch out for riptides. In the event of rough surf at beaches, we are prepared to close those areas to the public and move equipment.

But the most dangerous thing in this city probably that we're the most likely to have tragedies is people that go swimming. Don't go swimming if there isn't a lifeguard there. Don't go swimming when the beaches get closed.

I know some people love to go in the rough waves, it's exciting --

PHILLIPS: Michael Bloomberg right now holding a live news conference on preparations for hurricane Irene.

Something interesting, I just went to the Web site, the governor mentioned-- sorry, the mayor mentioned NYC.gov. There's actually a spot on the Web site you can go to, you can visit the hurricane evacuation zone finder.

If you missed the live presser there, he actually mentioned specific areas with regard to possible evacuations, and if you're able to get online and go to NYC.gov it's real easy. Move the cursor down to hurricane evacuation zone finder and you'll find if indeed you're in a low-lying area and you're specifically an area that should prepare for hurricane Irene.

We'll continue to follow this news conference. We're keeping a close eye on Irene all throughout the day, all throughout the weekend. As we get new developments, we'll bring it to you.

Also ahead, Steve Jobs and his surprise announcement and the impact on Apple. We're going to take a closer look, just ahead.

And also, more rattled nerves in Virginia this morning with at least one aftershock following Tuesday's rare earthquake. We'll update you from there as well.

(COMMERCIAL BREAK)

PHILLIPS: Live pictures out of Norfolk, Virginia. We got word the Navy ships would be pulling out to sea in order to protect themselves from hurricane Irene and that is happening now. Of course, you want to keep these ships in good condition because there's assets on there that will be able to respond to those in need if indeed hurricane Irene causes some serious damage to the area. So, we're watching the Navy as they're preparing for hurricane Irene as well out of Norfolk, Virginia.

All right, we're checking other stories cross country.

Mineral, Virginia, felt a 4.5 aftershock just a few miles away from the epicenter of Tuesday's earthquake. No serious damage was reported there. Meanwhile, the Washington monument is closed indefinitely as engineers devise a plan to repair the cracks that appeared following Tuesday's earthquake.

And the nearby Washington National Cathedral also suffered some damage. It's going to be closed through at least Saturday. The dedication event for the Martin Luther King Memorial that was supposed to be held there is now going to move to another church.

And in Los Angeles, American Airlines says it's investigating the collapse of a Jetway at LAX Airport late last night. Two people were hurt in that fall. We're told the injuries are not life-threatening. Well, it's pretty hard to imagine that a man more creative, innovative or visionary than Steve Jobs. He actually changed the way we use computers, phones, even the way we listen to music. Jobs has shocked the business world by announcing that he's resigning as Apple's CEO.

CNN's Poppy Harlow has the story for us.

(BEGIN VIDEOTAPE)

POPPY HARLOW, CNNMONEY.COM (voice-over): The impact was immediate. Apple stock fell 5 percent in after-hours trading Wednesday when Steve Jobs announced he's stepping down as CEO.

Fans of Jobs were surprised by the news.

UNIDENTIFIED FEMALE: He resigned?

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED FEMALE: I'm sorry to hear it because he was so great for the company. He's so creative, so innovative.

HARLOW: Jobs, who has been on medical leave since January released a statement. "I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I would be the first to let you know. Unfortunately, that day has come."

ANDREW SERWER, MANAGING EDITOR, FORTUNE: It's really hard to overstate just how important Steve jobs has been to business, to the economy, what he's done, because he's really revolutionized so many businesses.

HARLOW: Computers, mobile phones, digital music -- Jobs' influence has been unparalleled. His latest product, the iPad, continues to break records. Analysts say it's the fastest-selling technological device ever.

Jobs co-founded Apple in 1976 from his family's garage. Nine years later, a power struggle led to his exit, but Jobs returned again in 1996 -- soon after becoming CEO and transforming the company into what it is today, one of the biggest corporations in the world, worth nearly $350 billion.

Earlier this month, Apple briefly passed ExxonMobil as the stock market's most valuable company.

STEVE JOBS, APPLE CEO: An iPod, a phone. Are you getting it?

(CHEERS)

HARLOW: But it's not only because of Jobs' innovation. He's also a brilliant marketer.

MICHAEL COPELAND, FORTUNE CONTRIBUTOR: The secrecy and the kind of theater that Apple brings to every product launch, every other company in the world, whether they're in, you know, electronics, consumer electronics or clothing or automobiles, they can learn from Apple and what they do.

HARLOW: In the only commencement address jobs ever gave in 2005 at Stanford University, he touched upon the secret of his success.

JOBS: The only way to do great work is to love what you do. If you haven't found it yet, keep looking, and don't settle.

(END VIDEOTAPE)

PHILLIPS: Poppy joining us live now out of New York. So, Poppy, for all the Apple investors, you know, what does this mean for them and the future of the company?

HARLOW: It's a great question, because many people equated Apple solely with Steve Jobs. He's clearly the visionary of this company. He picked it up off of its knees, turned it around completely in a dramatic turn-around that will go down in the history books.

Kyra, looking at shares before the market opens, Apple shares down about 2.6 percent. That is not a steep decline. Right now, people have to decide if they believe that Apple is bigger than one man.

I think it's important to reiterate here that Steve Jobs is still staying on as chairman of Apple. He is not going away from the company.

Also, the man who's now taking over, Tim Cook, is a man who's been by Steve Jobs' side for years. This is a company that had a plan, Kyra.

And it also plans years and years out. They have a vision for the next iPhone, the next iPod, the next iPad. So, there's a lot in the pipeline still for Apple.

But again this is a huge loss of a visionary at the helm of this company, Kyra.

PHILLIPS: Well, speaking of visionaries and powerful men, you have a direct line to Warren Buffett and apparently you're getting breaking news regarding an investment he's making?

HARLOW: Absolutely. This is very interesting. Buffet's company, Berkshire Hathaway, that holding company, has just announced they're making a $5 billion investment in Bank of America.

Why do you care about it? This is one of the most widely held banks and portfolios across the board. Your 401(k), your IRA, it was also struggling, down 50 percent plus this year alone. There were a lot of concerns about the health of the bank, how strong it was this week.

This is one thing and one thing only. This is an injection of confidence in Bank of America, one of the biggest banks in the world.

Warren Buffett saying in a press release that just came out, he said, "Bank of America is a strong, well-led company." He called the CEO and said that he wanted to invest in it. He says he's impressed with the profit-generating abilities of the bank. So, this is an injection of confidence.

Warren Buffett holds stock in a lot of companies, Wells Fargo, a big bank, U.S. Bancorp. He invested $5 billion in Goldman Sachs in the middle of the financial crisis. So, this is a big boost for Bank of America. If you own this stock, you're going to want to watch the market nine minutes when it opens. Right now, shares of Bank of America are trading up 25 percent on that news -- Kyra.

PHILLIPS: All right, Poppy Harlow, thanks.

Next hour, we're going to take a closer look at the state of Steve Jobs' health with our Dr. Sanjay Gupta. He'll tell us what he thinks Jobs' next steps might be.

Also just ahead, the news that could impact Apple's stock and what will it do to the markets overall? We're watching the numbers. The opening bell moments away.

(COMMERCIAL BREAK)

PHILLIPS: All right. "Forbes'" list of the world's most powerful women reads like a who's who of select and political power. Back on top, German Chancellor Angela Merkel.

Here to tell us more about it, Zain Verjee who -- I hear you came in 101. I apologize, Zain, but you are still the most powerful -- one of the most powerful women here at CNN.

(LAUGHTER)

ZAIN VERJEE, CNN INTERNATIONAL: I know. At least I scraped at 101. You, however, got in at 593. I don't know, you're losing your touch.

All right. So, Angela Merkel at number one on "Forbes" most powerful woman. She has been on before for three years actually. But a lot of question as to why Angela Merkel? Well, she is trying to save Europe, the euro, the debt crisis because Germany, the country that she runs is the most powerful economy in Europe.

So, that's what a lot of people are talking about. A little more information about her, Kyra -- she has a doctorate in physics. She entered politics when she was 36 years old, just after the Berlin Wall came down. She's known for being pretty tough, hard-nosed, all business all the time.

So, you can imagine her shock when, take a look at this video, President George W. Bush, a few years ago, massaged her shoulders. She's not exactly the touchy-feely type here. And this caused a lot of -- there it is. It caused a lot of consternation on her part.

Other women on the list, Hillary Clinton came in at number two, the secretary of state. The Brazilian president, Dilma Rousseff, number three. Melinda Gates took number six. Michelle Obama number eight.

And Lady Gaga, number 11, even ahead of Oprah. Kyra, you need to work on your standing there.

PHILLIPS: Hey, look who's talking. We'll keep doing that. Zain, thanks. Love you.

VERJEE: Ditto.

PHILLIPS: All right. Alison Kosik, another most powerful woman. Standing by at the New York stock exchange where investors are reading over the latest numbers on the job front right now.

Alison, what do you think, how are things looking as we get ready for the opening bell here?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hey, Kyra.

Stock futures are looking pretty good, thanks to word that Berkshire Hathaway is going to invest $5 billion in Bank of America -- a nice shot in the arm for Bank of America whose shares have really been hit hard.

I can't say the same for the jobs picture, though. We got some new numbers showing weekly jobless claims rose more than expected, up to 417,000. It's a disappointment but the Labor Department actually says those numbers are a bit inflated because of those Verizon workers who were on strike.

As for the markets, investors are still on a bit of an edge as the central bank conference gets under way here in Wyoming. The meeting is today. The Fed chief, Ben Bernanke, his speech comes tomorrow.

Now, the expectations for what comes out of this are a bit more dialed back for another round of stimulus, but Wall Street is kind of antsy. It wants to know what Bernanke is thinking.

Of course, the other hot topic here on Wall Street, Steve Jobs' resignation. Apple shares right now are down 2.5 percent in the premarket. They have recovered quite a bit from a bigger drop in after-hours trading on Wednesday. Trading volume for Apple shares expected to be very heavy when the opening bell rings in about one minute.

But keep this in mind, Kyra, this is an individual company story, it's not a broader market story. So, if we do see the market take a turn to go lower, you can't necessarily pin it on what's happening with Apple shares today -- Kyra.

PHILLIPS: All right, Alison Kosik there at the New York Stock Exchange -- Alison, thanks.

Getting some breaking news out of Libya. This is according to "Reuters," I might add.

Rebels reporting that they may potentially have Moammar Gadhafi surrounded. Apparently, there is a number of apartment buildings just outside Gadhafi's compound. Now, a group of rebels reporting that they have surrounded these apartment buildings near the compound of Moammar Gadhafi, saying they believe that he is inside, that they have him surrounded. He could possibly be hiding out with a number of his sons.

Rebels reporting exchanging gunfire with Gadhafi loyalists inside those buildings. No details to why they believe Gadhafi is inside these apartment buildings, but they are saying this is a quote now from the rebels, according to Reuters they are hunkered down in a small hole.

Rebels -- once again, this is coming from rebels being reported by Reuters that they believe they have Moammar Gadhafi surrounded, hidden in some apartment buildings right there near his compound that was taken over by rebels just two days ago. We're following that story for you.

OK. Coming up, it looks deceptively calm from space, but the Bahamas seeing a much different side of hurricane Irene right now. We've got a number of reports of serious damage. We will take you there for a live report.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now, Libyan rebels still battling Moammar Gadhafi loyalists, control all of Tripoli. The opposition has posted a $1.4 million bounty for Gadhafi's capture or death. As you might have heard just within the past six minutes, Reuters reporting that a group of rebels is saying they have besieged a cluster of apartment buildings near Moammar Gadhafi's compound. They believe they have him surrounded. We are following that story that Reuters is reporting.

And Steve Jobs stepping down as apple's CEO. He's leaving that post for health reaches but he's going to stay on as the company's chairman.

And hurricane Irene could cause major damage along the eastern seaboard this weekend. Even if the storm doesn't make a direct hit, there are concerns about flooding and power outages.

That's already a reality in the Bahamas. The islands just being battered today. Our Jim Spellman is right there in its capital.

Jim, bring us up to date.

JIM SPELLMAN, CNN CORRESPONDENT: Hi, Kyra. Yes, being battered is right. It's just been hour after hour of these driving winds and the rains coming off the Caribbean. Fortunately so far we haven't had major damage but we are starting to get reports of power outages, downed power lines, that sort of thing.

Just within the last half hour or so we've seen officials coming out, police, people from the electric company, surveying the situation. Unfortunately, we've seen a few onlookers who are curious. This is just nothing that anybody wants to mess with. The same when it hits the United States. People always want to come out on the beach and walk around and these winds come out of nowhere and I'm having a hard time standing up during some of them so I would definitely encourage people not to do that.

They're really hoping here they can make it about two more hours here in Nassau here in New Providence Island, they'll still be OK. Unfortunately for all the people on this island there's just really nowhere for them to get too much shelter except staying away from these coastal areas and riding it out -- Kyra.

PHILLIPS: All right. Jim Spellman, our connection with you breaking up a little bit there. We're going to stay in touch, though. We are watching you streaming there for us.

Meanwhile the other developing story right now. We're getting word, this is from Reuters now. They're reporting that a group of rebels has claimed a cluster of apartment buildings where they believe Moammar Gadhafi is hiding out with some of his sons. This is once again coming to us from Reuters, reporting a group of rebels saying they believe they have Moammar Gadhafi surrounded.

Our Arwa Damon who has been reporting for us just outside of Tripoli's airport, we got the news to her. She's joining us now live where we have set up post there.

Arwa, can you confirm this? Are you hearing this news at this point? It's Reuters that is reporting this, that they believe rebels have surrounded Moammar Gadhafi hiding out in some apartment buildings not far from his compound.

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Kyra, no. The rebels down here do not have any sort of information with regards to that. What they do have, however, is this mobile home that they say they just got of off the farm that belongs to Gadhafi.

Now, it's located around 15 minutes away from the international airport complex. They've just begun to comb through it. They say that in their view this farm was something of a paradise. We're going to try to go as far inside as we can given our cable restrictions. But the fighters brought this in, honking loudly, absolutely overjoyed that they captured it and they that they're still going through trying to find what else they can.

They say that they did encounter a little bit of resistance when they were there.

(SPEAKING FOREIGN LANGUAGE)

I'm trying to get a key for that door right there because there's like a whole chunk to the back. But -- oh, wait, here we go. That's not going to happen.

Anyway, they were telling us they did encounter a little bit of a firefight when they did enter Gadhafi's compound, this farm that he owns not a far distance from here. They said they've taken some detainees. They were describing these massive tents that he has set up in the garden, air conditioned, a life of luxury that he was living in while they were suffering they're telling us.

They say that they still have to comb through it because there were some people that were protecting this farm that they say fled. And so they're going to try to go back, continue to comb through it. But they brought this here. They're telling us that it is a caravan, a mobile home that they got from Gadhafi's farm not too far from here, Kyra.

PHILLIPS: So, Arwa, is there a belief that Gadhafi was living in this mobile home at some point or hiding out in this mobile home?

DAMON: Well, actually when I was walking through the first time and this door wasn't locked -- do you see if someone can find the key -- there was a bed that was made up and so they were speculating that perhaps he had maybe spent a night or two in there but there weren't very many personal belongings, personal effects that would indicate anything more beyond that.

But there is a bed that's made up and it's kind of been tossed around. The rebels, of course, have been going through here, absolutely overjoyed with this find and they're planning on going back to the farm, trying to see what else they can find there.

PHILLIPS: OK, got it. You let us know if you get that key. Actually is he going to go open it now, Arwa?

And if you're just --

DAMON: I think we're trying.

PHILLIPS: If you're just tuning in, Arwa Damon here, just outside Tripoli's airport where there was word -- Arwa was actually reporting this to us yesterday, that a farm not far from the airport there is where Gadhafi might have been hiding out. And the rebels claiming this bit of a luxury motor home there not far from the airport.

Arwa was able to get inside. And if indeed she does get through that door, gives us an insight of what possibly could have been a place Moammar Gadhafi might have been staying, hiding out while the rebels were looking for him.

Meanwhile Reuters is reporting that rebels are telling one of its reporters that they have surrounded Moammar Gadhafi in a cluster of apartments not far from his compound, which was taken over by the rebels just two days ago. We are working to confirm that story. But at this point we're going to move on from Libya and talk more about the storm that's already -- so many people here are preparing for.

We're talking about hurricane Irene. And our Jacqui Jeras will have some potentially life-saving tips for all of you that are wondering what should I do next.

(COMMERCIAL BREAK)

PHILLIPS: Rebels reporting now to us that they believe they have surrounded a number of apartment buildings not far from Moammar Gadhafi's compound that was taken over by rebels just two days ago. They believe that they have Moammar Gadhafi surrounded in these apartment buildings.

We've been working our sources, our Nic Robertson calling into us now.

Nic, what do you think of this information that the rebels are saying? Do you know anything about these apartment buildings not far from the compound? Do you think there's any truth to this?

Nic Robertson, are you connected?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, I see you.

PHILLIPS: Go ahead.

ROBERTSON: What we are being --

PHILLIPS: Nic, I lost you again.

ROBERTSON: What we're being told by rebels commanders at the rebel command headquarters on the western half of Tripoli is that he has sent reinforcement troops, more rebel fighters, to surround a building or several apartment buildings close to Gadhafi's palace compound. (AUDIO GAP) He and his sons may be holed up there.

Now, we have to preface that with the fact that it is wild with such rumors. And we've also heard from (AUDIO GAP) none of this has turned out to be true. This could (AUDIO GAP)

PHILLIPS: All right. I'm having a bad time hearing Nic. He's on a -- is he on a satellite phone, guys? All right. Can you tell me where he is? Ok. All right. Nic -- basically Nic is calling into us from Libya. He made his way -- he made his way there. He's calling in to us from a satellite phone.

And what we are -- are trying to -- to get more information on are these reports that -- that are coming out from the rebels, a group of rebels, that they have surrounded a cluster of apartment buildings not far from Moammar Gadhafi's compound.

They are saying they have Moammar Gadhafi surrounded, possibly with some of his sons. And there is the -- the Rixos Hotel not far from the compound where journalists had been trapped, our Matthew Chance and 30 other journalists and some dignitaries, diplomats had been holed up and were released yesterday.

That's right close to the compound. There's also a group of apartment buildings in that same exact area where rebels are saying they have Moammar Gadhafi surrounded, possibly with some of his sons. As a matter of fact, what one of the rebels is saying is that they are hiding in a hole, a small hole.

It makes you think of Saddam Hussein who was found hiding in a spider hole in Iraq when he was captured. But rebels coming forward now saying that they believe Moammar Gadhafi has been surrounded. His sons as well, some of his sons with him in an apartment -- some apartment buildings not far from his compound that was taken over by rebels just two days ago.

We'll try and get back in touch with Nic Robertson who is now there in Libya. He's working his sources and we will try to confirm that, obviously, and bring you that news.

Ok, the other big story that we're talking about today and that's preparing for Hurricane Irene. Communities up and down the East Coast, including Navy ships that you can see here heading out from Norfolk, Virginia, all getting ready. We'll take you there live.

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PHILLIPS: Ok. The U.S. Navy telling its people all the way from North Carolina to Maine get ready to get out of the path of Hurricane Irene.

Now, Barbara Starr at the Pentagon, dozens of warships, aircraft clearing out, Barbara. How big of an operation is this?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Oh, this is huge, Kyra. You know the Navy goes to war with a lot less than it's doing today, 27 Navy war ships putting out to sea this morning from Norfolk, Virginia. They are getting under way now as we speak, moving out of the path of the hurricane. It will take all day for them to get all 27 out of port.

This is going to include the aircraft carrier Eisenhower and several submarines and several surface war ships. They are on the move. Because of course, they can't stay in port and risk being damaged. These are very, very expensive ships.

Some are going to stay in port. They can't get everybody out. So some will be tied up, some will go to more sheltered areas and ride it out there. But the Navy now putting out to sea, hundreds, if not thousands of Navy crewmen having to be onboard these ships manning them while their loved ones, of course, are back in port waiting out the storm.

They will make a decision, later today, we are told, about the fighter jets, the aircraft that are in the region in the mid-Atlantic. If they can get -- they can fly those out very quickly if they decide to. It's the ships, of course, that take so long to sail and get out of the way of the storm -- Kyra.

PHILLIPS: And Barbara you know you've talked about how expensive these ships are and they want to protect them. But in addition, you know if all hell breaks loose, I mean, these are the people that are going to come to the rescue as well.

STARR: Well, right. I mean if -- if this becomes a real disaster of monumental proportions, these ships will be turning around as soon as the storm passes and be back in port. But the first responders really will be the National Guard up and down the East Coast.

We were just told by the Pentagon yesterday, there are 98,000 National Guard troops available for disaster relief, if the governors and the federal government want to take advantage of them and use them and call them to duty. So there will be considerable manpower up and down the East Coast in a first response mode working with the states, working with the National Guard and working with FEMA for a real disaster response that can move quickly. If it comes to that, hopefully it won't -- Kyra.

PHILLIPS: Yes, agreed. Ok, Barbara Starr thanks so much.

Well, everyone on the East Coast is being told to prepare for this hurricane. But Jacqui Jeras, you have some ideas where to begin here. Look at the stash.

JACQUI JERAS, AMS METEOROLOGIST: Yes.

PHILLIPS: As you were pumping up the juice there on your flashlight. Talking about old school.

JERAS: I know, this is the hand-crank one you've got to love that, right?

PHILLIPS: Haven't seen that in a while.

JERAS: No batteries needed. And you know, the important thing to remember in a situation like this, Kyra, is it's not just people who live on the coast. When we're looking at a storm like Irene, we're talking people are going to be dealing with them on flooding. There are probably are going to be hundreds of thousands of people that are not going to have power. That will likely last for days and possibly even weeks in a situation. So people who live in New York City, people who live in Philadelphia all need to worry about it.

So first thing is having a family disaster plan, talk to your husband. Talk to your friends, talk to your family. Where are you going to go? Identify the safe places in your house and what kind of threats from storm surge from flooding and from wind.

And keep in mind landfall and hurricanes also cause tornadoes from time to time. So review those safety skills as well. If you have to escape, if you're being told to evacuate, identify those routes and figure out where you're going to meet. And have an out of town contact. That's the key, your cell phones get cut off. You can't get in touch with each other so find somebody out of town that you can get in touch with.

All right, the disaster supply kit. I've been carrying around my little orange pack here. You always want --

PHILLIPS: Where do you get this by the way?

JERAS: You know, well, you can make them yourself.

PHILLIPS: Ok.

JERAS: Or if you're living like me, you can usually go to like a Home Depot or something like that.

PHILLIPS: Ok.

JERAS: And they've got them pre-made for you. And we've got a list of things that you need. First of all, bring these things with you if you are evacuating or have these things in your homes, water and food all non-perishable. You really want have a three-day supply if you can of things that aren't going to be spoiled. When you don't have power, you don't have anything to cook. You know, have that can of beans or your MREs or some peanut butter.

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JERAS: Right, so you need those kind of things. A First Aid kit, that's huge. People get cut. Power lines are down. Debris is flying all over the place in these kind of situations. So make sure you have that kind of stuff. Medicines, too. Especially prescription medications; make sure you've got a good seven-day supply of those kind of things because you don't know when you're going to be able to get to a pharmacy once again.

We mentioned the flashlight. This one in particular is great because not only do you have a flashlight on it, but you also have a siren which is on it and it has a NOAA weather radio. So you'll get all of the emergency information that way.

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PHILLIPS: Wow. Like you pointed out, you don't need batteries.

JERAS: You don't on this one.

PHILLIPS: I like it. Just have on things just in case you did.

JERAS: Exactly, and have those extra -- some other things to have on hand? A camera. Take pictures of the damage. Because you don't know when you're going to get back into your house or those damaged things are going to change.

Some other things, these are wide variety of cell phone chargers. You're going to need some kind of ways to get those batteries going as well. Things like a prepaid phone card. You don't know when you're going to get cash. Have cash ready. And make sure that you fill up that gas tank. Because a lot of times those go out as well.

PHILLIPS: Thank you, Jacqui.

JERAS: Sure.

PHILLIPS: We'll keep talking the next couple of hours about this.

And stay with CNN, of course. We will have all the latest on Hurricane Irene from the Bahamas all the way up the East Coast. Our Jim Spellman is still braving that storm. We're going to go live to Nassau.

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PHILLIPS: All right. We're following lots of developments in the next hour of CNN NEWSROOM. Let's go ahead and start with our John Zarrella live on the coast of North Carolina -- John.

JOHN ZARRELLA, CNN CORRESPONDENT: Kyra, I'm on Wrightsville Beach where we are now under a tropical storm watch as all eyes are on Hurricane Irene as it begins its trek up the U.S. East Coast.

JERAS: And what kind of an impact could the hurricane cause for the Carolinas and the northeast? We are talking a major impact even if landfall doesn't happen. Find out what you need to be worried about and how to prepare coming up.

ZAIN VERJEE, ANCHOR, CNN INTERNATIONAL: Hi I'm Zain Verjee in London. I'll tell you what industry insiders are saying about Steve Jobs today and his stepping down as CEO of Apple. That's in just a few minutes.

PHILLIPS: All right guys. Thanks so much.

Also ahead from the Macintosh computer to the iPad, we're going to look back at the amazing success of Apple under Jobs' leadership.

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