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Hurricane Irene Batters Bahamas; Hurricane Irene Doing Damage; Hurricane Watch for North Carolina; Coastal Carolina Evacuates; Tracking Hurricane Irene; New Fighting in Tripoli; Rebels: Believe Gadhafi, Sons Surrounded; Apple CEO Steve Jobs Steps Down; 4.5 Aftershock in Virginia; Washington Monument "Closed Indefinitely"; Two Hurt in Jetway Collapse; Closer Look at Steve Jobs' Health; "Hawthorne" Crew Backs Smiths; People Critic: Scrap "Housewives"; No Host for MTV's VMA

Aired August 25, 2011 - 10:00   ET

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

(COMMERCIAL BREAK)

KYRA PHILLIPS, CNN ANCHOR: Hurricane Irene, a huge storm right now. We are talking 55 million people up and down the east coast potentially impacted. The storm's track still curving from the Carolinas to Canada. For now though, it's turning to the Caribbean.

We're getting reports of widespread damage in the Bahamas. Irene has already been blasting the islands with up to 115-mile-an- hour. We're all over the storm, where it is, where it's going.

Jim Spellman riding it out there in Nassau, Bahamas, John Zarella following tracks along the North Carolina coast and Jacqui Jeras right here in the hurricane headquarters. Jim, let's go ahead and start with you. Tell us how the situation is there.

JIM SPELLMAN, CNN CORRESPONDENT: Hi, Kyra. So far, we've just been having these pounding winds here for hour after hour and this driving rain. People are getting antsy. They have been inside their homes since yesterday afternoon. People are starting to come out to trying to get out and get a peek. It is way too early for that.

This is a tropical storm warning where John Zarella is. This is a tropical storm looks like. This is tropical storm-force winds here. It's nothing to play around with. So far, fortunately, we are not hearing widespread damage reports here in Nassau.

Some settlements on the smaller islands, we know that overnight there's widespread devastation. Some settlements 90 percent or 100 percent destroyed. Houses uprooted from the foundations.

They hoping here at Nassau that all their preparations are going to pay off and they won't have any major damages. Still a bit iffy though. This storm is probably at the most intense right now or even peaked a little bit. These winds are still so strong. The outer islands will be tested. Back to you, Kyra.

PHILLIPS: OK, Jim. We'll keep talking. We appreciate it. There is also a hurricane watch for coastal North Carolina right now all the way up to the Virginia border. That is where our John Zarrella is right there in Wrightsville Beach. John, how is it looking?

JOHN ZARRELLA, CNN CORRESPONDENT: Yes, it is beautiful weather here today, Kyra and probably will be for the next 36 hours or so. The storm is a good 700 miles away from us yet. But you know, I look back to last Sunday and preparations have either been done or under way by residents or will soon be under way as you move up the coast.

On Sunday, I went to the home improvement store and picked up a couple of cases of water, picked up a couple of gas cans just in case. By Monday, everything was sold out down in South Florida. That is the same as you start to progress up the coast.

Charleston, South Carolina, home improvement stores and grocery stores hit very hard a couple of days ago when they thought they were in the cone. Now as you move further north here in North Carolina, a lot of preparations going on certainly on the outer banks. Mandatory evacuations ordered for tourists on the outer banks.

Of course, residents of those outer banks being urged to get out there. Don't stay. You don't want to play with this and you're going to start seeing the same things progressing as you move up the eastern seaboard into New England.

As you mentioned, Kyra, tens of millions of people could very well be affected over the next two to three days as Hurricane Irene approaches. Very close to or right along the U.S. eastern seaboard coastline. Kyra.

PHILLIPS: Got it. John, thanks so much. Then back here at Hurricane Headquarters, Jacqui Jeras is following the track for us. Jacqui.

JACQUI JERAS, AMS METEOROLOGIST: The storm is getting closer, Kyra. We're going to continue to see its move near Florida throughout the day today. Well, the storm is expected to stay about 200 miles away from the Florida coast, but the sheer size is bringing in showers and thundershowers and strong gusty winds.

We have a picture right here to show you out of Miami. The camera has been shaking around a little bit. You've been getting those occasional strong gusts as well as those rainy conditions. Expect a couple inches overall throughout the day for today.

Now let's talk a little bit now about how intense this storm is. Category 3 right now, 115-mile-an-hour maximum sustained winds. It's going to fluctuate a little bit throughout the day today. It is going through what we call an eyewall replacement cycle, which initially will weaken the storm a little bit, but then ultimately will ramp it back up.

So that's why we are expecting this to become a four again maybe later today, maybe tomorrow as it continues to bash all the way through the Bahamas. It will spend tomorrow moving along the Florida Coast and on up towards the Carolinas.

Those watches, which are in effect right now, means you have 48 hours to prepare. Make those final preparations really before you feel these conditions. So Saturday morning, you'll start to feel it in the Carolinas and possible landfall late on Saturday, and then scraping on up to the coast and northeast. There will be weakening here in the northeast because of wind shear and cooler water temperatures.

But still perhaps a Category 1 or 2 if we get that landfall. Even if we don't get that secondary landfall, we think the impacts will be great because of heavy rain, a lot of flooding and damaging winds.

Now if you cannot stay tuned to CNN 24 hours a day, I know you have to take a break or maybe go to work. Track us on cnn.com/hurricane. You can find the latest track, the latest satellite intensity as well as the computer models.

We were talking yesterday about how they kept trending east, east, east. Well, they're all a little bit more west today, a lot more confidence in our forecast for the Carolinas and impacting really the entire northeast and parts of New England. Kyra.

PHILLIPS: Jacqui, I don't know. Did you see mayor Bloomberg's news conference within the past hour?

JERAS: Parts of it.

PHILLIPS: OK, so the question to you because I think a lot of people are saying New York? What about the high-rise buildings? Give me your take on the chances of New York City and Boston because the mayor was wanting to direct people toward its web site, nyc.gov.

You can go to a part in this web site, the hurricane evacuation zone finder so you could find out if you are in a low-lying area and you might be trouble and you might need to evacuate.

JERAS: Absolutely. Yes, I mean, if this hurricane came up to Manhattan, we would be talking about, you know, Battery Park and some of the tunnels getting under water, huge impact. If this was a Category 3 that hit New York City, we could see storm surge as high as 30 feet. So that could be a major deal.

Right now, it is iffy whether or not it's going to hit New York City or possibly even Long Island. But it is something that we need to be looking at. We're going to talk a little bit more about some storms that we have seen throughout history in the last number of years.

The Long Island Express as well as Gloria and Bob, we'll show the track. We'll also talk a little bit more about why this has been such a difficult hurricane to predict. That is coming up in about a half hour from now.

PHILLIPS: It sounds good. Jacqui, thanks. We're going to be keeping a close eye, of course, on Irene all day for you and throughout the whole weekend. As soon as we get the new developments, we'll bring it right to you.

All right, something that we got word of last hour. We are continuing to talk about out of Libya. It is a group of rebels claiming that they have Moammar Gadhafi and some of his sons apparently surrounded in an apartment complex right near the Gadhafi compound or former Gadhafi compound since rebels took it over two days ago where we saw all of the fighting take place there.

Dan Rivers for us in Tripoli now. Dan, what are you finding out with regard to what the rebels are saying about surrounding Moammar Gadhafi in this apartment complex?

DAN RIVERS, CNN CORRESPONDENT: Well, I have been down the Bab Al-Azaziya complex this morning and there is definitely a firefight going on at one end of it. Whether it is over the custody of Colonel Gadhafi or not is impossible to tell at the moment.

I think we have to be skeptical about these claims from the rebels. Yesterday, they told us they thought they found him and they all head off in their pickup trucks with their guns and then later we realized that was a false alarm.

I think we have to be cautious about thinking that this could be him. Clearly, there is some sort of firefight going on there. I think it is the western end of the former Gadhafi compound. It is a huge area, this compound. I think it is likes six square kilometers. It is massive.

We were down there this morning. There is a mixture of bunkers and house of resistance, which is a kind of a shrine to his resistance forming in the 1980s, a normal an accommodation there. We were wondering around some of the houses and a lot of them have been ransacked.

But no sign at the moment if his forces were in that compound, I think most of the fighting seems to be just beyond the compound at one end and toward the Abu Salem District. We were told by lots of different rebels on the ground that's where they're all heading.

That is where the fight is going on at the moment at the Abu Salem area whether Gadhafi is there or not, I think is really difficult to say right now.

PHILLIPS: And one of the big questions is do they want him dead or alive, Dan?

RIVERS: Well, I mean, it depends who you ask. There will be a lot of people here who would gladly see him dead. There is a reward out for him, $1.7 million and an amnesty for any of his diehard compatriots who turn him in.

So far, though his whereabouts is completely unknown, we have no idea if he is in Tripoli or if he had fled to the desert. He could be in a different country for all we know. But certainly I think that, you know, one thing is clear, this city is not secure yet.

The idea that this city has been completely liberated by the rebels is wildly wrong. We are told south of the main ring road that runs through the center of the city, south of that, down toward the airport and Tripoli Zoo is still pretty dangerous. There is some stiff resistance down there from Gadhafi loyalists.

PHILLIPS: All right, our Dan Rivers joining us live there out of Tripoli. Dan, thanks. If you are just tuning in, we are following the breaking news that rebels are reporting that they believe they have Moammar Gadhafi surrounded with some of his sons, apparently in an apartment complex not far from his fallen compound. We're following the story for you minute by minute.

The other story that we are following is Steve Jobs. He is the master behind the iPod, the iPhone, the iPad, the entire creative force behind Apple. But today, he is no longer in the driver's seat at the technology giant.

Jobs shocked the business world with his news that he is resigning as CEO. CNN's Zain Verjee in London with the reaction. Zain --

ZAIN VERJEE, CNN ANCHOR AND CORRESPONDENT, CNNI: Hi, Kyra. Let me give you a sense of what some of the industry insiders are saying. Eric Schmidt of Google, his friend and rival said that Steve Jobs was one of the most successful CEOs in America in the last 25 years.

He put it this way. He uniquely combined an artist's touch and an engineer's vision to build an extraordinary company, one of the greatest American leaders in history.

Check out what Jeff Weiner, the Lington CEO, have to say, he called him the Michael Angelo of the digital age and then he added this. He's also the most insightful business speaker I have ever heard. He speaks the way he designs product. Not a single wasted word. To this day, some of the most valuable lessons I learned in business came from listening to him on stage.

And then the former California Governor Arnold Schwarzenegger wrote this on Twitter, Kyra, Steve Jobs is one of California's greatest innovators, very few achieved his impact over the last 50 years and probably the next 100 years.

Well, he's still going to be chairman, Kyra and his philosophy is so deeply entrenched within Apple and it is likely to have an impact for a long time. But what a lot of people are saying too was that it was Steve Jobs' personality that made Apple Apple. Kyra.

PHILLIPS: All right, Zain, thanks. Coming up, we're going to take a closer look at the state of Steve Jobs health. Our Dr. Sanjay Gupta will be here to tell us what he thinks Jobs' next steps will be.

Yellow caution tape encircles from the Washington monument right now. That is not the only attraction gotten from the stress of Tuesday earthquake. That is just ahead.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now. Mineral, Virginia felt a 4.5 aftershock just a few miles away from the epicentre of Tuesday's earthquake. No serious damage reported there.

Meanwhile, the Washington Monument is closed indefinitely as engineers device a plan to repair the cracks that appeared following Tuesday's earthquake.

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

And in Los Angeles, American Airlines says it's investigating a collapse of the jet way at LAX Airport late last night. Two people were hurt in that fall. We are told the injuries are not life threatening though.

All right, Steve Jobs, for a lot of people, he created must-have gadgets before people even knew they had to have them. But now Apple's CEO says he has to step down.

Dr. Sanjay Gupta is joining me. He was diagnosed with pancreatic cancer, correct? There have been lots of questions about his health.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes, there hasn't been a lot of information coming forward. This is rare form of pancreatic cancer known as a neural endocrine tumor. It's pretty rare. About 2,500 cases a year only in the country.

So as you might imagine. Not a lot of data on this sort of thing, but back in 2003, he was diagnosed we know. For a while, he did not want to have surgery. He wanted to treat it with diet. Ultimately in 2004, he had the operation. He lost a lot of weight.

PHILLIPS: Can you treat something like that with a diet? I mean, you're a doc, is that something you would advise?

GUPTA: I think what we do know is that this is a type of tumor if removed initially in its entirety. A lot of patients are cured. Not just treated, but cured of this. So I think most doctors just because we know that this is a potentially cured of procedure want to recommend the surgery.

But it is so rare, again, Kyra, that there is not a lot of data on this. Whatever he did, it didn't work for him that he needed to have the operation in 2004 and then he lost weight. These tumors produced a lot of hormones that can make you lose weight.

He talked about that. Then he had that liver transplant in 2009. Obviously, I read the same statement that you did. It is hard to decipher what that means. Is the liver transplant failing?

Does he have to take amino suppression drugs if those become overwhelming? Is the hormone problem? You know, this tumor producing - too much hormones, is that the problem? Or is he just so sick as a result and who knows?

PHILLIPS: All right, so it is a guessing game. Is it even fair to say looking at all of those scenarios what could be the next steps?

GUPTA: Yes, there are a couple of things that could progress including this liver problem. If he had a rejection, that is a significant problem.

Whatever it is though, I guess, Kyra, he seems to believe it is not treatable at this point based on the fact that he's resigning because he has taken this long medical leaves in the past.

This time, he thinks, you know, for whatever reason, this is not something that's going to be treatable.

PHILLIPS: Got it. That is not good news.

GUPTA: It was tough to read that statement. That day has come. He put that in there.

PHILLIPS: Pretty powerful. All right, Sanjay, thanks.

GUPTA: Thank you.

PHILLIPS: Coming up after the break, entertainment news for you. Will and Jada Smith have been denying rumors that they are breaking up. The couple insists they're just fine. Now, Jada's co-workers are weighing in. That is coming up next.

(COMMERCIAL BREAK)

PHILLIPS: A crew of "Hawthorne" back up Will and Jada's story. The VMAs may go hostless. "SHOWBIZ TONIGHT" host, A.J. Hammer has all the details in all the breaking stories in entertainment.

All right, first, let's talk about the Smith. The crew of Jada's TV show "Hawthorne" speaking out now, A.J.?

A.J. HAMMER, HOST, "SHOWBIZ TONIGHT": That's right, Kyra. The Smith's are getting some support from Jada's co-workers from her TV series on TNT. But first, let me catch up on what's been going with the Will Smith and Jada Pinket story.

On Tuesday, there was a report floating around that the couple were splitting up. That would have been a bombshell because these two have always seemed to have been such a great pair. In fact, Will has even said in interviews before that divorce is not an option in how he lives his life.

There was another report claiming that Jada had been acting inappropriately with her "Hawthorne" co-star, the newly separated Marc Anthony. Well, the Smiths did release a statement they called the report totally false.

And yesterday, they made this very public trip. It was a shopping trip in Malibu, California. I think every member of the paparazzi was able to get a shot of them, smiling, having a good time.

And as you mentioned, Kyra, The crew of Jada's show "Hawthorne" is sounding off. They're telling TMZ there wasn't any hanky panky seen on the set between Jada and Marc Anthony. Kyra, I think everybody seems to agree it would be sad to see this couple break up. So here is hoping that everything is indeed all right.

PHILLIPS: True. They seem like such an all American family and couple, A.J. All right, they just had the funeral, right, for Russell Armstrong and now there is a call to cancel the show?

HAMMER: Yes, there have been a number of calls to cancel the "Real Housewives of Beverly Hills" in the wake of Russell Armstrong's suicide. His estranged wife, Taylor, of course, is one of the show's stars. Most notably there was a cancelation cry coming from "People" magazine's TV critic.

In fact, in what I found out to be a rather unusual move, the magazine actually put that cancellation call as the lead story on their web site. I do think it is very unlikely the show is going to go away. Yes, there was the funeral service for Armstrong yesterday in Glendale, California. Most of the cast was in attendance including Taylor Armstrong.

This was a private service and reportedly Bravo did not film it. Thank goodness, a second service is reportedly planned for his family in Texas where, according to E-news, he's going to be cremated. The second funeral, Kyra, is happening because Armstrong's family and Taylor Armstrong has been fighting ever since his death. So this is how they worked it out.

PHILLIPS: OK, reshuffling going on at the Video Music Awards. What do you hearing?

HAMMER: Well, the big news about the host of the VMAs this year. MTV says there will not be a host. MTV is saying they will not have a single host this year. It is part of an experiment of a non- traditional format.

Some reports out there are speculating the move was made out of necessity because MTV could not find somebody who could handle all of the duties. Not the first time that the show has gone hostless. They did the same thing back in 2007 and in 2004.

In my mind, the host doesn't matter as much during the actual show. It is part of the build up. When you see all the promos on MTV telling you to tune in for this and watch this person as the host.

I think that is really where the value comes in. I think they will do just fine without the host. After all, the awards are in a couple of weeks now.

PHILLIPS: How about you? You should host them. That is what I suggest.

HAMMER: No, I'm busy. I have plans.

PHILLIPS: You got plans. A.J., thanks. Well, if you want information on everything breaking in the entertainment world, A.J.'s got it. That's every night "SHOWBIZ TONIGHT" 11 p.m. on HLN.

A new poll puts Rick Perry in the lead among Republican voters, but there is a candidate in the waiting who could maybe jump right past him? Our political panel weighs in.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now. Hurricane Irene hitting the Bahamas with winds of 115 miles an hour. Forecasters say it is possible Irene could make two U.S. landfalls this weekend. First in the Carolinas and then New York.

Libyan rebels believe Moammar Gadhafi is surrounded. Rebel fighters now outside a cluster of apartment buildings near the Gadhafi compound. That's where rebels say Gadhafi and some of his sons are hiding out in that compound.

Steve Jobs stepping down as Apple CEO. He is leaving that post for health reasons, but he will stay on as the company's chairman.

All right, "Political Buzz" your rapid fire look at the best political topics of the day. Three questions, 30 seconds on the clock.

Playing today, CNN contributor, Will Cain and CNN contributor and independent John Avlon and CNN political analyst, Roland Martin. First question, guys, in his memoir set to be released next week, Dick Cheney saying that he urged George Bush to bomb Syria in 2007. Well, the Israelis ended doing it instead. Was Cheney even more of a hawk than we gave him credit for, Will?

WILL CAIN, CNN CONTRIBUTOR: You know, it sounds like it, Kyra. You know, as pundits we kind of often blow hard and talk about things we don't know about. I want to say this. As a conservative, you know, we treat the principals of unintended consequences as moral poll star when it comes to domestic policy. But we forget it sometimes in foreign policy.

At the same time, I realize we live in a world that is not a bubble. So you have to realize there are people whose interest work against you. The point I'm trying to make here is when it comes to judgment of Cheney and others, I'm just going to take the road of humility on some of these things right now.

PHILLIPS: Roland?

ROLAND MARTIN, CNN POLITICAL ANALYST: What the hell kind of non- answer was that, Will? My goodness -

PHILLIPS: Uh-oh.

MARTIN: Look, everybody in the room except Dick Cheney didn't raise their hands. That pretty much right there answers everything. OK, Dick Cheney's philosophy is just bomb away. This is the guy who continued to go out and assert there were WMDs in Iraq even when President Bush stopped asserting that as well.

And so, it is no shock that he wanted to do this. Thank God other people were in the room with some common sense.

CAIN: So, your answer is he is Darth Vader?

PHILLIPS: John? John?

JOHN AVLON, CNN CONTRIBUTOR: Well, look, I don't think it's possible for Dick Cheney as more of a hawk than he already is. I mean, you have to be Curtis Lemae to be perceived as more of a hawk.

That said, he's always had a soft spot for those sort of (INAUDIBLE) type of tacts. And I don't think that there's anyone serious in the world today that isn't glad that the Assad regime in Syria doesn't have nuclear weapons. So, you know, thanks to the Israelis for following through on that.

PHILLIPS: All right, guys. New Gallup poll of Republicans puts Perry is in the clear lead of GOP contenders followed by Romney. What do you think? Is there a potential candidate out there who could possibly vault into the lead just by entering the race? Roland?

MARTIN: Well, look, at this stage, Krya, you could jump in. John could jump in. Will could jump in and probably at the top of the poll.

Look, my philosophy of this is anybody who is speculating and saying I still might get in, just shut up and make a decision. And so, I don't get all of this pining for the perfect candidate. There is no perfect candidate.

And also, it doesn't matter who is sitting at the top of a poll. Fred Thompson's numbers were sky high. Rudy Giuliani's numbers were sky high. They were horrible campaigners. When you go through the rigors of a campaign, then you will see who a real candidate is.

PHILLIPS: Will?

CAIN: You should listen to a guy like Roland talking about there's no such thing as the perfect candidate. Democrats knew that. They dealt with Gore and Kerry for years.

But Roland's also right about this: the lesson here is for Perry. Easy come, easy go. Fred Thompson was at the top of the charts. Rudy Guiliani was at the top of the polls. Rick Perry does needs to realize somebody could jump it. And who could that be? I do think it could be Chris Christie or Jeb Bush. Yes, Rick Perry shouldn't be sitting too comfortably.

PHILLIPS: John?

AVLON: The center right is still wide open. Rick Perry being at the top of the polls shows how much strength in the Republican Party convened in the right.

The problem is the candidates who could really shake up the race like Chris Christie, like Jeb Bush, like Paul Ryan, like Mitch Daniels have all said they will not run. So, Roland's right. Perfect ain't ever on the menu, but the folks who could really shake up the race have decided to wait this one out.

Still a question mark on Sarah Palin and Rudy Giuliani. But we will see about that in the coming weeks.

PHILLIPS: And if Roland and Will jumped in, John, who's V.P. would you like to be?

(LAUGHTER)

PHILLIPS: I'm going to move on -

MARTIN: Wow.

CAIN: Answer it, John. Answer it!

AVLON: I'll have to think about that one. I'll do some horse trading.

MARTIN: C'mon, John! You get free health care!

(LAUGHTER)

PHILLIPS: The "Buzzer Beater" now, guys. Twenty seconds each. Here we go. The head of Starbucks has led more than 100 other CEOs now into promising no campaign donations. So, let me ask you this: who else would we like to see their nose out of the campaign, shall we say? Roland?

MARTIN: How about this, Starbucks, and AOL's guys? Why not say we are not going to spend my money when it comes to our lobbyists. We don't care about your individual campaign donations. You want to impress me? All of those 100 CEOs, pull your lobbyists out of D.C. Then you will impress me. But they'll never do that, Kyra.

PHILLIPS: Will?

CAIN: I'm not so cynical about this. I think this is a wonderful political gesture. These guys aren't going to contribute so to send a message to Washington they should come to a bipartisan deficit deal. We always lament the role of money and politics. Now they're holding it back. This is great!

MARTIN: Right!

PHILLIPS: John? AVLON: I agree with Will on this one. I agree with Will. I think these folks should be applauded for taking a stand. Maybe folks in Washington will listen to money if nothing else, about the need to turn back the tide on hyper-partisanship. In a perfect world, I would love to see both big business and big labor sit this one out, but they will try to drive a truck through the loopholes of Citizens United. That's what I'm concerned about..

MARTIN: Mmm-hmm. Pull the lobbyists out.

PHILLIPS: John, Will, Roland. Roland always has to get in the last word. Have you guys noticed that?

(CROSSTALK)

MARTIN: Tell me there was a no-tie edict on the show on Thursday.

PHILLIPS: I will talk to you coming up again. Hopefully. Give me a few days to breathe.

All right. Thousands of people fleeing inland. We have talked about the dozens of Navy ships that are headed out to sea for safety and up and down the East Coast. We have a lot of people prepping for Hurricane Irene. That's our other big story we're talking about today.

It is heading for North Carolina now. Plenty points beyond. We are talking about 55 million people potentially affected. Irene, a major Category 3 storm, right now. It is already taking a toll on the Bahamas. And lots of serious damage reported there. Jim Spellman still hanging in there waiting it out. He is in Nassau with the very latest. Jim, bring us up to date.

JIM SPELLMAN, CNN CORRESPONDENT: Uh, yes, hi, Kyra. You know, what's really impressing me about this storm at this point is it has been like this for 12 hours now with no signs of letting up. You see driving winds and pouring rain. Some of smaller islands in the southern part of the Bahamas have received terrible damage reports coming in (INAUDIBLE). Some reports of whole villages wiped out. Right now, it's really out of the (INAUDIBLE) The southern islands is where the damage is located.

Here in the capital, in Nassau, so far we still don't see any major damage. We are getting more reports of power outages, but none of the major structural damages. These winds here are more like a tropical storm-force winds than the Category 3 hurricane it is (INAUDIBLE) hitting some of the other island.

(INAUDIBLE). But I feel like people are getting too confident. They are coming out and walking on the beach. You can see from the spray here, up against the sea wall that it is a really active storm. (INAUDIBLE) You can get a preview of what the Carolinas and the East Coast are going to get in a day or two.

PHILLIPS: All right. Jim Spellman there. You can hear the winds picking up. It is even harder to hear him now as he is streaming to us out of the island there. We will keep talking to Jim. And then a little later, Jacqui Jeras will join us as look at the path of the storm and why it has been such a tough one to forecast.

Also ahead, from the Macintosh computer to the iPhone. We will look back at Steve Jobs's extraordinary success at Apple as he tells us all he is stepping down.

(COMMERCIAL BREAK)

PHILLIPS: Steve Jobs. He changed the way we used computers, phones, even listen to music. And he shocked the business world by announcing that he's resigning as Apple's CEO. CNN's Dan Simon takes a look back at his legendary success.

(BEGIN VIDEOTAPE)

STEVE JOBS, CEO, APPLE: Today apple is going to reinvent the phone.

DAN SIMON, CNN SILICON VALLEY CORRESPONDENT: He has been called a modern-day Thomas Edison.

JOBS: You can do multifinger gestures on it, and boy have we patented it.

(LAUGHTER)

SIMON: Others have tried to emulate his style, but rarely with the same success. The Apple story is well known. Two kids in the garage: Jobs and Steve Wozniack, launch a company that would change the world.

UNIDENTIFIED MALE: We worked hard, and in 10 years, Apple had grown from just the two of us in a garage into a $2 billion company with over 4,000 employees.

SIMON: In 1984, Jobs introduced the Macintosh, the first mainstream computer with a mouse. And the first with multiple thoughts. But sales were sluggish, and there were internal divisions in the company. Jobs was forced out.

His second act a decade later is considered one of the greatest CEO tenures of all time.

JOBS: It is called the iPod touch.

SIMON: Jobs brought us the iconic iPod and of course, a string of other life-changing technologies like the iPhone and iPad.

For a few years now, Jobs has looked thin and frail. His health problems, including a bout with pancreatic cancer are well known. Two years ago, he had a liver transplant.

In his letter to the Apple board, Jobs writes, "I have always said if there is ever a time I cannot meet my duties and expectations as Apple's CEO, I will be the first you know. Unfortunately that day has come."

As the new CEO Tim Cook takes the reins, he inherits a company that has never been stronger, more influential or profitable. Jobs will become chairman of the board while the company he started enters a new phase.

(END VIDEOTAPE)

PHILLIPS; Alison Kosik is joining us now live from the New York Stock Exchange, where Apple shares are trading on the down side. Alison, how big of a hit is it taking?

ALISON KOSIK, CNN BUSINESS CORRESPODNENT: But not too bad. Only down 1.75 percent, shares going for about $359 a pop. Investors, I think, seem to be realizing that Steve Jobs' resignation is not going to ruin Apple, with one analyst pointing to just how many smart people that he's brought on.

And you know, even though losing a visionary like Jobs is huge, the company still has a very solid pipeline of products as well as executives who very clearly understand his vision.

Wall Street also focusing on Bank of America shares today. They are getting a nice pop thanks to Berkshire Hathaway's $5 billion investment in the company. Shares of Bank of America up 13 percent. But Wall Street, overall -- the Dow down 114 points. Struggling to shake off a rise in the weekly jobless claims. We got that report before the opening bell today. Kyra?

PHILLIPS: All right. Also with reports to the housing market. The White House may be taking steps to help struggling homeowners?

KOSIK: Yes, this is interesting. "The New York Times" is reporting that the Obama administration is considering proposals to help homeowners and try to stimulate the economy all at onces. One proposal would allow millions with government-backed loans to go ahead refinance them at current loan mortgage rates, which are around 4 percent. There are estimates it could save homeowners $85 billion a year.

"The New York Times" also said the administration is weighing - actually, renting out these foreclosed properties to keep loads of these homes from flooding the market even more. As you can imagine, the president is trying to do everything possible to get Americans out buying homes again and keep them in their homes.

But there are critics that are fearful that the mass refinancings could make borrowing more expensive, and that these ideas that the Obama administration are coming up with, they don't address the real problem. That these homes are worth less than their mortgages, and people don't have jobs. We haven't heard anything out of the White House on this just yet, Kyra.

PHILLIPS: All right. Alison Kosik, thank you so much.

Coming up, we are tracking Hurricane Irene. The Category 3 storm could strengthen even more as the East Coast is bracing for the possible landfall this weekend. We will have the latest from CNN's Hurricane Headquarters.

And the first wave of mandatory evacuations for Hurricane Irene are underway. We will tell you where, next.

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PHILLIPS: All right. As the East Coast prepares for the possible arrival of Hurricane Irene, there is an exodus of ships, cars, people from North Carolina's Outer Banks. A mandatory evacuation order both for residents and tourists in effect rather in Ocracoke Island. The U.S. Navy has ordered ships from the Norfolk naval station to move out to sea to hopefully prevent damage.

The most eastern tip of Long Island, keeping an eye on Irene as well. Montauk is preparing for possible power outages and flooding should Irene keep its current storm track.

And they are even taking hurricane precautions in New Hampshire where the big worry is flooding. The people there being advised to stock up on food supplies in advance of Irene's possible arrival later this weekend.

All right. CNN meteorologist Jacqui Jeras taking a look at Hurricane Irene. And it's basically been pretty hard to forecast. There is historical significance to all of this as well.

JACQUI JERAS, AMS METEROLOGIST: Yes, there is. We have been going back and forth a lot about what kind of impact. First, we were thinking Florida, then South Carolina, then North Carolina. Although the forecasts were really pretty good overall as it moves through the Caribbean and continues to move across parts of the Bahamas right now.

The main thing that has been controlling the storm is this area of high pressure, which has been driving it toward the west. Now it is starting to pull on up to the north. Now, the things that are impacting the forecast and where it will go for the U.S., two different things. There's two troughs or basically two cold fronts are coming through. The first one is slamming into the Northeast. If you are at the airport right now, you hate it. There are a ton of delays. That front is not as strong as we thought it was, so we are not starting to see that pull up to the north as much.

The second will come through this weekend. And that is what we think will make it turn up to the north and east. So, the intensity of these two fronts, as they come on through and the timing of them, has everything to do with where Irene is going to go. Those computer models now are coming much closer together, and as you take a look at them, you can see they are pretty well clustered over the Carolinas. So, we still have a lot of confidence in the forecast down here. But the split is a little bit greater as you head up to the Northeast. You can see things are clustering a bit more in that area as well.

So, one of the things that we can look at to help us figure out what will happen with Irene in addition to those types of synoptic models we were telling you about is we can look at history. And boy, there have been hundreds of tropical systems that have hit the East Coast.

Now, some of them, most notably, 1938. The Long Island Express Hurricane. This was the costliest and deadliest hurricane that moved across the Northeast. It hit Long Island as a Category Three storm. 500 to 700 people died. Incredible storm surge with this thing. And there were trees, hundreds of them, uprooted all over New York.

Now, the other one we like to compare this to, a kind of similar track to what we're seeing with Irene is Hurricane Gloria. Hurricane Gloria made a couple of landfalls. It was a Category Three storm that caused $1.8 billion worth of damage. It moved across the Northeast as well.

Last, but not least, we also saw Hurricane Bob back in 1991. That made landfall as a Category Two on Long Island. So, all these tracks looking a little bit similar than most we worry about. Of course, is if we saw that track similar to what the Long Island Express did, Kyra -- if you did that in today's dollars, we are talking about $39.2 billion in damage. And unknown fatalities.

PHILLIPS: OK. You're going to keep tracking this and we're going to have coverage all throughout the weekend.

JERAS: I'll have an update, very shortly, by the way, on the track and intensity.

PHILLIPS: Great. Thanks, Jacqui.

The CEO of Starbucks and 100 other business leaders are going to stop pouring campaign cash into Washington. We will tell you why.

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PHILLIPS: CEO Howard Schultz and a number of other business leaders say they are tired of partisan gridlock. So, what are they doing? Stopping all campaign donations CNN's Poppy Harlow in New York. And you actually had a chance to talk to Schultz about the pledge.

POPPY HARLOW, CNNMONEY.COM: I did, Kyra. This is a really radical move; you don't see this often. Just about 10 days ago, Howard Schultz wrote a letter to fellow CEOs asking them to come on board. He was saying basically Washington needs to get it together, get a long-term debt deal before we give anymore money to political campaigns.

The update on it, and I just talked to him about it, he's had 100-plus CEOs sign on. Big names across both parties, Republicans and Democrats. Tim Armstrong, the CEO of AOL. The CEO of Whole Foods. The CEOs of the NASDAQ and New York Stock Exchange. So, some very heavy hitters agreeing to this.

And their message is two parted. It's both, "Washington, get it together. Stop the partisan bickering that's going on." And also, he is asking these CEOs to hire and to not wait for Washington to create a jobs plan.

But take a listen to how he explained this move to me.

(BEGIN VIDEO CLIP)

HOWARD SCHULTZ, CEO, STARBUCKS: What I'm trying do, and I'm so thankful that the other CEOs have joined me, is send a powerful message to Washington that we do not want to impress the status quo. We want to be respectful and want to really, I think, be civil in our concern and criticism.

But we are begging you to please not only go back to work, but end the partisanship and represent the citizens of this country. And do everything we can to remove the unbelievable fracturing of trust so we can get the economy back again, start hiring and remove the crisis of uncertainty.

(END VIDEO CLIP)

HARLOW: Remove the crisis for uncertainty. That is his goal. As again, as I said, a very bold move. What he said, Kyra, if we do not see a major turnaround in Washington, there will be severe unintended consequences. One of them is harming America's brand on the global stage. He said it will hurt the equity of America, where we stand in the global economy if our politicians cannot get it together.

So, he is asking people to really speak with their pocketbooks. This is turned into a movement. He has received thousands and thousands of e-mails from average Americans, small business owners, who said, look, I agree with you and I'm signing this pledge, Kyra.

PHILLIPS: Well, let's hope the CEOs will hire some folks as well. Poppy, thanks.

Stories making news later today. 11:00 Eastern. Tallahassee, Florida, the Department of Corrections will hold a briefing regarding Casey Anthony's probations on fraud check charges.

Then at 11:45 Eastern in Exeter, New Hampshire, Republican presidential candidate Mitt Romney talks jobs creation.

And at noon in Washington, U.S. attorney general Eric Holder will speak at a civil rights luncheon in advance of Sunday's dedication of the MLK memorial.

Coming up next hour in the CNN NEWSROOM, it could be the final standoff in a civil war. Rebel fighters say that they have Libyan leader Moammar Gadhafi surrounded. We will go live to Tripoli when the CNN NEWSROOM continues.

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PHILLIPS: Rick Perry has only been in the race for 12 days, but he has quickly made up ground. Our senior political editor, Mark Preston has all the latest poll results. Hey, Mark.

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Hey, Kyra. How are you?

Yes, Rick Perry has been in less than two weeks officially in the presidential race. Now he is at the top of the new Gallup poll. In fact, let's take a quick look at it. He is at 29 percent right now, outdistancing Mitt Romney who comes in at 17 percent. Ron Paul comes in at 13 percent. Michele Bachmann, who won the Iowa straw poll, comes in at 10 percent.

What does this tell us? It tells us that Republicans are looking for an alternative candidate to Mitt Romney, at least at this time.

You know, Kyra, you don't always want to be the front runner, certainly not this early. But for Rick Perry, this is very important. It shows his candidacy is being taken seriously. It also shows those big money contributors that they have an opening and at least willing to give money to Perry.

So, good news for Perry from this Gallup poll. We cannot say he is the front runner because this is only one poll, but certainly good news for the Perry campaign. Kyra.

PHILLIPS: OK. Mark Preston, thanks. We will have the next political update in just about an hour. And a reminder, of course, for all of the latest political news, go to our Web site, CNNpolitics.com.

That does it for us. We'll be back here bright and early in the morning. Fredricka Whitfield in for Suzanne this morning. Hello there.