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American Morning
Lawyer: Iran to Release U.S. Hikers Today; Obama to Meet with Abbas Today; Palestinians to Seek Statehood Friday; Waiting to Die; Reno Air Show Disaster: New Video; Lawyer: Iran to Release U.S. Hikers Today; Is it Time to Rethink the Death Penalty?; Clinton Praises Huntsman and Romney; Lawyer: Iran to Release U.S. Hikers Today; Typhoon Hits Japan; U.S. Hiker Freedom Watch; Obama To Meet With Abbas; Bennett Blames U.S. For 9/11
Aired September 21, 2011 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CHRISTINE ROMANS, CNN ANCHOR: Obama and Abbas, face-to-face. I'm Christine Romans. The two leaders set to square off today at the U.N. The U.S. trying to head off a diplomatic disaster, but can the president convince the Palestinians to stop their quest for statehood.
ALI VELSHI, CNN ANCHOR: I'm Ali Velshi. A Georgia death row inmate waiting to die. Supporters promising a last minute push to have his life spared. Now the man who helped put him in jail is speaking out saying the system worked.
CAROL COSTELLO, CNN ANCHOR: And Tony Bennett said what? I'm Carol Costello. The legendary singer telling Howard Stern who he thinks is really to blame for the 9/11 attacks on this AMERICAN MORNING.
ROMANS: And good morning, everyone. It is Wednesday, September 21st. Welcome to AMERICAN MORNING.
VELSHI: Good morning to you, and to you. It is a busy week. But we've got some breaking news right now. Freedom coming finally maybe coming for two U.S. hikers held prisoner in Iran. They could be out within the half hour.
Let's go right to Mohammed Jamjoon. He is covering this from Muscat, Oman. Mohammed, what's the latest?
MOHAMMED JAMJOOM, CNN INTERNATIONAL CORRESPONDENT: Well, Ali, we've heard from a lawyer for those two detained hikers. He's telling us now that a second judge in Iran has signed the paperwork, the bail paperwork for Josh Fattal and Shane Bauer.
The lawyer says now he can take that paperwork and start the procedures to free them. He expects that they will be free within the half hour. Also, official Iranian news agency saying that those hikers will be handed over to Swiss embassy officials in about half an hour from now. Ali --
VELSHI: Mohammad, we've heard -- we've had false starts on this the last couple of weeks. The idea here, of course, it's through the judiciaries, any likely to stop this as far as you can see? JAMJOOM: Ali, I apologize. I'm having a little trouble hearing you. But what we've heard in the last few weeks, there's been a lot of wrangling going in Iran between the judiciary and between President Mahmoud Ahmadinejad.
Now what was going on essentially Ahmadinejad gave an interview in which he indicated that these hikers would be released within a matter of days. After that, the judiciary, the hard-liners came out and said we're the final arbiters in this decision. We'll release them when the time is right.
They made it clear that it's the judiciary there, the judges who will able to have the final say in this. This really speaks to the tension in Iran between the judiciary and between Ahmadinejad. And the fact that Ahmadinejad made the statement before going to the UNGA, before going to New York this could.
And yet, still couldn't get those hikers released before he went, really -- seemed to indicate according to analysts that in Iran, the judiciary, the hard-liners were trying to diminish the stature of Ahmadinejad.
So that he couldn't have this big victory so he could look magnanimous in front of the world stage when he was in New York. Now they're indicating that they are going to be released today. We don't know all the behind the scenes wrangling that's been going on in the past few days.
But there's been speculation building that the Omanis who are in Muscat, Oman that they're involved in trying to negotiate the release of these hikers. That possibly they could come here because Sarah Shourd when she was released last year, her first stop out of Iran was in Muscat, Oman.
It was revealed that the Omanis paid the bail for Sarah Shourd so there's been speculation that they might be involved in paying the bail for the two hikers who might be released today, but a lot of details to be sorted out.
Speculation growing they will be released today. The Iranians are saying speculation is very high that they will come to Oman once they're released.
VELSHI: All right, Mohammed, thank you. I know you didn't hear the question well, but you answered exactly what I asked. So thank you very much. Mohammed Jamjoom in Muscat, Oman. We will keep a very close eye on what's going on in Iran and the minute those hikers are released, we will bring you that to you as breaking news here on CNN.
ROMANS: All right, now to the White House trying to head off a diplomatic disaster. President Obama will meet face-to-face today with Palestinian President Mahmoud Abbas at the U.N. The Obama administration making a last minute push to stop the Palestinians from applying for statehood on Friday instead, trying to steer them back to the bargaining table with Israel.
CNN U.N. correspondent, Richard Roth live at the United Nations this morning. Good morning, Richard.
RICHARD ROTH, CNN UNITED NATIONS CORRESPONDENT: Good morning. Well, the United States says there's been a seismic change in the world since the last general assembly high-level debate. That's certainly so in North Africa. Sweeping change from Tunisia to Egypt. Turmoil in Syria and Yemen.
President Obama is going to address probably those changes. U.S. documents saying that the United States has helped change the course of action here at United Nations with more of a spirit of cooperation, and a White House strategic communications director says the focus is also, of course, going to be on the Middle East with the U.S. president set to meet the Palestinian leader later today.
(BEGIN VIDEO CLIP)
BEN RHODES, DEPUTY NATIONAL SECURITY ADVISER: At the end of the day, peace is going to have to be made between the parties, that it can't be imposed from the outside. That it can't be accomplished through actions of the United Nations.
(END VIDEO CLIP)
ROTH: This is the first day of the general assembly debate. The U.S. president always speaks second after Brazil. This time, the first time a woman president will speak first leading Brazil.
It should be a very interesting day in the news of those possible hiker releases. President Ahmadinejad speaks tomorrow, but will be in the building later today. He said he will not attending the U.S. president's address in the morning here at the U.N. Christine --
ROMANS: All right, Richard Roth. Thank you so much, Richard.
COSTELLO: It is the dawning of a new day in Libya. You're going to see it in a second. There it is. That new red, black and green flag of the North African nation now has its place in the row of flags at the United Nations. Libya's new interim prime minister, Mahmoud Jibril announcing he expects his country to have a new government in place within 10 days.
And that's what freedom looks and sounds like. CNN cameras capturing the people of Libya celebrating wildly as the National Transitional Council troops rolled into the city yesterday. That city was one of the last strongholds of the ousted dictator Moammar Gadhafi.
A major setback to peace efforts in Afghanistan. Officials say the country's former president and chief peace negotiator who's killed by a suicide attacker with a bomb hidden in his turban. They say Rabanni was assassinated in his home by a man posing as a Taliban peace envoy.
The Afghan President Hamid Karzai calls Rabbani's death a tragic loss. He cut short his trip to the U.N. meeting in New York to return to Afghanistan.
ROMANS: Waiting to die. A Georgia death row inmate is set to be executed tonight after his last ditch effort for clemency was denied yesterday.
Troy Davis convicted of shooting and killing an off-duty police officer more than 20 years ago, but he will be killed by the state under a huge cloud of doubt with supporters around the world still insisting they have the wrong guy.
David Mattingly has the latest this morning from Atlanta. Good morning.
DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: Good morning. At this hour supporters of Troy Davis are saying that anyone who might have the power needs to act now to stop this execution.
(BEGIN VIDEOTAPE)
MATTINGLY (voice-over): Their last means of legal recourse seemingly exhausted. There may be little more for Troy Davis' legion of supporters to do, but shout their frustrations and pray.
Meanwhile, the prosecutor who sent Davis to death row for the murder of Savannah Police Officer Mark MacPhail broke years of silence calling the campaign to save Davis unfair and unjust.
UNIDENTIFIED MALE: We have felt that we were ethically bound to maintain our silence, and express our opinions and judgements on the facts in court, which is where we have. And every place where we have, we've won.
MATTINGLY: Now retired, former DA Spencer Lawton believes his witnesses who testified against Davis 20 years ago and later changed their stories or recanted did so under pressure from Davis' supporters and failed to appear credible, he says, in the eyes of the court.
UNIDENTIFIED MALE: It has been a game of delay throughout. The longer the delay, the more time they have to create not doubt, not honest doubt, not real doubt, but the appearance of doubt.
MATTINGLY: The Georgia Board of Pardons and Parole again refused to stop Davis' execution saying its decision was based on the totality of the information presented in this case. Davis supporters say race was a factor.
UNIDENTIFIED MALE: This is Jim Crow in a new era. There's just too much doubt for this execution to continue.
MATTINGLY: This is Davis' fourth appointment with execution. Another last-minute delay seems far less likely this time. Families are Davis and Officer MacPhail both prepare for the end.
UNIDENTIFIED FEMALE: It's like reliving a nightmare over and over, but the thing about it is, we have to stay strong in our faith. UNIDENTIFIED FEMALE: We have lived this for 2 years. We know what the truth is, and for someone to ludicrously say that he is a victim, we are victims. Look at us. We have put up with this stuff for 22 years and it's time for justice today.
(END VIDEOTAPE)
MATTINGLY: And that execution now scheduled to happen in just under 13 hours. Christine --
ROMANS: All right, David Mattingly. Thanks, David.
VELSHI: We've got dramatic video, new video of Friday's deadly plane crash at an air show in Reno, Nevada. In it you can clearly see the plane slam into the ground and literally shatter.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: No. No, my God.
(END VIDEO CLIP)
VELSHI: Eleven people died including the pilot when he lost control of his vintage P-51 Mustang crashing it straight into the ground. Brent Wilson was at the event with his two sons.
One of them shot the video you're looking at. Last night on "AC 360" he suggested that it could have been a lot worse and that the pilot was a hero.
(BEGIN VIDEO CLIP)
BRENT WILSON, SAW CAR CRASH (via telephone): Anytime you see a plane in an air race go skyward you know something is wrong. As it's in the air, it actually works its way back behind the grandstands, which just never happens at an event like that.
And because of that, when he comes down, his momentum is moving away from the grandstand. And so that the massive debris that you see out into the tarmac, you know, had he crashed where, you know, coming out of the race towards the stand. That would have come into the stands and we would be talking about mass casualties.
(END VIDEO CLIP)
VELSHI: The cause of the crash is still not known. Investigators are focused on part of the tail that appeared to fall off before the crash. That new video will obviously help them come to some conclusions.
COSTELLO: New this morning, a dispute over how much to spend on disaster relief threatening to trigger, yes, a government shutdown. Senate Majority Leader Harry Reid warning it could actually happen at the end of this month.
He's concerned about politics coming before people when it comes to helping the victims of the east coast hit by the hurricane and the people in Texas dealing with those devastating wildfires.
(BEGIN VIDEO CLIP)
SEN. HARRY REID (D) NEVADA: -- heard the reports that Senator McConnell said there will be no shutdown. I am not that sure. I'm not that sure, because the Tea Party-driven House of Representatives has been so unreasonable in the past, I don't know why they should suddenly be reasonable.
(END VIDEO CLIP)
COSTELLO: The Republican-controlled House votes today on a short-term bill to fund government agencies through mid-November. That bill contains a lot less money for FEMA and the Army Corps of Engineers for a disaster response than a bill that passed the Democratic-controlled Senate last week.
The CEO and CFO of Solyndra, well, according to their attorneys, invoking their Fifth Amendment rights and not testify before Congress this Friday. The company received a $535 million federal loan back in 2009.
And the company filed for bankruptcy earlier this month. Days later, the FBI searched their offices, although it's unclear exactly why they're investigating.
ROMANS: All right, a cup of coffee and a muffin's may run you, what, $4? No. Turns out the Justice Department paid five to six times that at a 2009 conference.
According to an audit, the agency provided folks at that Washington gathering with $16 for muffins. No, that's for one muffin and $8 for a cup of coffee or tea. No, just for one cup of coffee and a snack break --
VELSHI: It's $32 for everybody?
ROMANS: No. That's $32 a head. That was for a little bit of, you know, popcorn I think and maybe a soda.
COSTELLO: Where did the muffin come from?
ROMANS: Well, that's the question. It came from a very smart subcontractor, vendor, who knew the government would just pay it and not ask any questions.
VELSHI: It was an extra virgin muffin.
COSTELLO: Made by the Gods.
ROMANS: This is after the department issued new guideline on wasteful spending because it served employees $5 Swedish meatballs in the past.
VELSHI: I eat a lot of my food at airports, which is largely the most expensive place you can ever get stuff even I couldn't get to that. That's kind of crazy.
ROMANS: Trying to think, sometime when you are a captive audience, they can really charge you a lot for something, but why doesn't government use its incredible purchasing power to negotiate prices for everything from muffins to prescription drugs? I don't know. I'm just wondering.
VELSHI: I get my coffee from? The little machine over there. You know how much I pay? Goose eggs.
ROMANS: But, you know, the people who are so mad about trying to raise taxes, they say why couldn't the government do more with the money we already give them? I mean, it's kind of apples and oranges or muffins and oranges.
COSTELLO: I'm just hoping those muffins were good.
VELSHI: They must have been amazing.
All right, we're going to take a break. Coming up on AMERICAN MORNING, he left his heart in San Francisco, but this morning Tony Bennett has other people questioning another part of his anatomy after shocking comments about the 9/11 attacks.
COSTELLO: And on the serious note, Troy Davis has less than 13 hours to live. He's just about far from being executed for a murder he insists he did not commit. His supporters include an expert even the pope. So our "Talk Back" question this morning, is it time to rethink the death penalty?
ROMANS: And Bill Clinton with kind words for two Republican presidential candidates. Are we witnessing the return of civility in politics? Carol's going to laugh the next two minutes as we take a break. It is 14 after the hour. You're watching AMERICAN MORNING.
(COMMERCIAL BREAK)
VELSHI: Eighteen minutes after the hour. We're following breaking news out of Iran, the pending release of two American hikers. Their lawyer says the court paperwork has been taken care of.
Our producer in Tehran now reporting he just saw two diplomatic vehicles enter the prison compound where the hikers are being held. They could be free within minutes. We will let you know as soon as it happens. We've got a producer in Tehran. We've got our reporter, Mohammed Jamjoon in Muscat, Oman. Oman has been very involved in - in trying to secure the release of these hikers.
This has been a long, long story that we're following. We will let you know as soon as these two hikers are released if they are released.
ROMANS: They haven't seen freedom since July 31, 2009. And it's been a real ordeal -
VELSHI: Yes. ROMANS: -- for all of them.
All right. Back in this country, legendary singer Tony Bennett hitting some sour notes during an appearance on Howard Stern's radio show. Bennett was there to promote a new album, but the conversation took a sharp turn when Stern asked him about terrorism and the 9/11 attacks. Bennett made it clear who he thought was to blame.
(BEGIN VIDEOTAPE)
TONY BENNETT, SINGER: They flew the plane -
HOWARD STERN, RADIO SHOW HOST: But -
BENNETT: -- but we caused it.
STERN: Why, because -
BENNETT: Because we were - we were bombing them and they told us to stop. Said, what are you doing? And they came on stronger, and they - come on. We're going to have to retaliate. No, no, no. They said go, give them four times as much.
(END VIDEOTAPE)
ROMANS: The 85-year-old Bennett has now apologized for these remarks saying there's no excuse for terrorism and the murder of nearly 3,000 innocent victims.
COSTELLO: Now is your chance to talk back on one of the big stories of the morning. The question for you this morning, is it time to rethink the death penalty?
Troy Davis, a convicted cop killer will die tonight, despite this rally and despite assertions of Davis' innocence from Amnesty International, to the Pope, to President Jimmy Carter.
Whether you agree with them is up to you, but Davis' case aside, American juries seem increasingly reluctant to see any inmate put to death. Since the 1990s, the number of executions in America has significantly declined, from 98 executions in 1999 to 46 executions last year.
That decline seems at odds with the strong feelings many Americans still have about the death penalty. Witness the Republican Debate.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Your state has executed 234 death row inmates, more than any other governor in modern times. Have you - have you struggled to sleep at night with the idea that any one of those might have been innocent?
GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: No, sir, I've never struggled with that at all. I think Americans understand justice.
(END VIDEO CLIP)
COSTELLO: That's Texas, but 16 other states do not have the death penalty.
As for why juries seem loathed to impose a death sentence? That's unclear, but maybe it's because more than 130 people have been released from death row with evidence of their innocence since 1973. Many juries now prefer another option, life without the possibility of parole.
So the "Talk Back" question for you this morning - is it time to rethink the death penalty? Facebook.com/AmericanMorning, Facebook.com/AmericanMorning. I'll read your responses later this hour.
VELSHI: I'm very eager to hear some of the responses -
ROMANS: Yes, me, too.
VELSHI: -- from our viewers on that.
A shocking political development, a prominent Democrat has actually said something nice about two Republican candidates for president, and it happened right here on CNN.
COSTELLO: I need a drink!
VELSHI: Former - now this is - it's really crazy.
Former President Bill Clinton, in "THE SITUATION ROOM" with Wolf Blitzer, semi-endorsing Jon Huntsman and Mitt Romney - behold the return of political civility.
(BEGIN VIDEOTAPE)
WOLF BLITZER, HOST, "THE SITUATION ROOM": So what I hear you saying is you'd be happier if Romney or Huntsman got the nomination than Rick Perry.
BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATES OF AMERICA: Well, it's not up to me to pick - that's - they'll both lose if anybody thinks I've endorsed them.
I'm just saying that I appreciate the fact that they're trying to navigate a landscape that bears almost no relationship to what's produced successful economies in the world, and there are lots of countries that are - that are now doing better than we are in some areas, because of the very ideas that apparently you have to support to get the nomination.
If you're anti-government guy, you've got to be, say, every tax is bad, every regulation is bad, every program is bad. First, it's factually not true and secondly it's really distorting our policy.
(END VIDEOTAPE)
VELSHI: President Clinton says there's a serious lack of debate about climate change in this country and he calls that really tragic. He, of course, is here as part of the Clinton Global Initiative, which takes place when the U.N. General Assembly is in New York, and a number of conferences this week, climate change has been an issue with the
Europeans really hammering hard on the Americans saying it has become trendy now, they see. They say it's become trendy in the United States to say that you're anti-science or somehow reject the science of climate change. They find that quite fascinating.
COSTELLO: Trendy? It's political.
VELSHI: Yes.
COSTELLO: And many people, frankly, don't believe in global warming -
VELSHI: Yes.
COSTELLO: -- in this country.
VELSHI: But to a lot of Europeans, that's very surprising that we're still debating the - (INAUDIBLE).
ROMANS: And alarming, I would say.
VELSHI: Yes.
ROMANS: Alarming, they would say.
All right. Ahead on AMERICAN MORNING, Japan bracing for another deadly disaster as a typhoon now slams ashore overnight. We're going to bring you a live report from Tokyo.
It's 23 minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: Welcome back. "Minding Your Business" this morning.
Uncertainty about Greece and the Fed zapping what was a three- digit rally on - triple digit rally on Wall Street. The Dow just barely squeezing out a gain yesterday. The NASDAQ and S&P were down. This morning, U.S. stock futures are up.
As I mentioned, we'll learn today of the Fed after its meeting will unveil a short-term stimulus to boost the economy. Speculation the Fed will revive a program known as "Operation Twist." Its goal - to keep long-term interest rates down to fuel the recovery.
The International Monetary Fund raising a red flag. The group in a report released prior to this week's meeting warns, and I quote, "The global economy is in a dangerous new phase." It also expects the world's economy to slow in the next two years. Forecast growth in the U.S. just 1.5 percent. That's not enough to pull down the unemployment rate.
Word of another government shutdown on Capitol Hill. This time, the fight if over how much to spend on federal disaster funding and it could hold up the approval of a short-term spending bill that it needs to keep the government running into next month.
It's the news we all want to hear, right? Jobs. GM adding 6,400 of them at plants here in the U.S. It's all part of a new labor agreement with the United Auto Workers Union. That deal also raises the pay for entry level positions and boosts profit sharing for all GM workers.
Federal prosecutors have charged the online gambling site Full Tilt Poker with operating a giant Ponzi scheme that cost investors more than $440 million. That site has been shut down.
AMERICAN MORNING will be right back after this quick break.
(COMMERCIAL BREAK)
VELSHI: Good morning. We're crossing the half hour.
We've got breaking news for you. Two American hikers held in prison in Iran could be released at any moments. "Reuters" says a Swiss embassy has car entered the prison. Their lawyer says all the paperwork holding this up is complete. Our producer in Tehran confirms diplomatic cars have entered the compound holding the two men, Shaun Bauer and Josh Fattal.
They were detained along the Iran-Iraq border back in 2009, along with Sarah Shourd who has been release -- was released last year. Iran convicted them as spies. We are waiting for an update and will bring it to you as soon as we've got it.
CAROL COSTELLO, CNN ANCHOR: Georgia death row inmate Troy Davis scheduled to die by lethal injection tonight for the 1989 shooting of an off-duty police officer. The state parole board denied him clemency yesterday. But his supporters are vowing to continue fighting to stop his execution, which is now just hours away.
CHRISTINE ROMANS, CNN ANCHOR: With the future of the Middle East on the line, President Obama and Palestinian President Mahmoud Abbas meet face-to-face at the U.N. today. It's a last-ditch effort to get the Palestinians back to the bargaining table with Israel instead of seeking statehood later this week as expected at the United Nations.
VELSHI: In Japan, typhoon Roke making landfall overnight in central Japan. Some 100 million Japanese were urged to evacuate their homes ahead of the storm that's packing 100 mile-an-hour winds.
CNN's Paula Hancocks is live in Tokyo for us.
Paula, what's the situation there?
PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, Ali, at this point we know four people have died, three more missing from this typhoon. But the fear is that in number will rise. It is 7:30 at night here. It's been pitch-black for two hours. It will be very difficult to tell what kind of damage there is until daylight.
Now, residents of Tokyo have certainly felt the effects of typhoon Roke that has been driving rain and very strong winds. Of course, it made landfall down in the southern part of Tokyo Bay, an area just a few weeks ago was battered by typhoon Talas. That was described as the worst and deadliest typhoon for about three decades. About 100 people were dead and missing in that one. The hope that this isn't going to be as deadly.
Now, it has caused transport chaos -- hundreds of flights have been cancelled, which means thousands of people are stranded. Many of the subways here in Tokyo were shut, which means that thousands of people don't know how they're go home tonight -- Ali.
VELSH: Paula, this typhoon is expected to pass directly over the Fukushima nuclear plant. Workers struggling to correct the disaster from the nuclear disaster in March, including trying to get rid of radioactive water. What is the threat that this storm brings to Fukushima?
HANCOCKS: Well, we're thinking that this storm should skirt past Fukushima at about 9:00 local time. This is the estimate from Japan's meteorological agency. That's about an hour and a half away. Of course, we've spoken to TEPCO, the operators there. They say they stopped all outdoor reconstruction work for the whole day, because it was too dangerous. They say that they've tried to stabilize the situation and they're monitoring it very closely.
But, of course, the worry is, there is incredibly heavy rain heading towards Fukushima and probably hitting that region right now. There's already contaminated water in the buildings around the reactors that the workers are trying to treat and trying to store safely. If this heavy rain continues to flow, there is a fear that it could overflow either into the water, or the under water, the ground water -- Ali.
VELSHI: All right. Paula, thanks very much. We'll stay on top of this story with you -- Paula Hancocks in Japan for us.
COSTELLO: Let's head to Atlanta and check in with Rob Marciano.
Talk a little bit about Roke and its path, Rob?
ROB MARCIANO, AMS METEOROLOGIST: Well, I think the rainfall that Paula mentioned is going to be the main concern here. Take a look at the satellite picture. It was really startling to see yesterday how powerful and well-organized this system was being so close to the main island of Japan.
Look at that eye. At one point, a strong as the border line category 4 storm making landfall. It's about a category 2. Remember, typhoon and hurricane, they're the same thing. Just a different name when you go west to the International Date Line. So, it's same deal as a category 2 storm making landfall. And now, it's a category 1, with winds of 70 knots. And it's pretty much right over just to the west of Tokyo right now.
And here comes the rainfall, not only across Tokyo but up through Sendai, where we could see another six to 10 inches of rainfall. So, you've got the contaminated water issues, potentially overflowing there. You also some land that quite honestly is not very settled after being shaken so badly just six months or so ago. Land and mudslides a distinct possibility as this rainfall continues to come down on that area and will do for the next six to 12 hours.
All right. Tropical storm Ophelia overnight formed, westerly moving at 13 miles an hour, winds of 45. Here's the forecast track. It's got a lot of heavy wind to get through to really develop into something major. At this point, we keep at it tropical storm strength, but it takes it towards the islands of the Bahamas, and the northern Caribbean and potentially towards the U.S. as we get towards the end of next week. Rainfall meanwhile across the eastern third of the country again with a weak front.
Guys, back up to you.
COSTELLO: Thank you, Rob.
MARCIANO: All right.
ROMANS: All right. Still to come on AMERICAN MORNING: some are calling it one of the worst marketing blunders since new Coke. Netflix changing the name of its DVD by mail service to Quickster. The stock price is dropping. Customers are quitting the service. What can Netflix do now?
COSTELLO: Pray.
VESHI: A father and son have a close encounter and I mean a really close encounter as you can see with a bear that probably just have a big breakfast because it didn't really care too much. Well, officials are baffled that these two guys -- look at this, look at this -- baffled that these two guys were not eaten.
COSTELLO: That is idiotic.
VELSHI: You have to see this video to believe it.
It is 36 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Forty minutes after the hour. We're following breaking news.
The two American hikers held prisoner in Iran for more than two years could be released at any moment. Our producer in Tehran reporting that two diplomatic vehicles entered the prison compound where Shane Bauer and Josh Fattal are being held. We have earlier reports that a second judge who is required to sign their release documents has signed them and they could be released very soon.
We're covering this from Tehran and from Muscat, Oman. The Omani government involved in their release as well. As soon as these two are released, we will let you know.
ROMANS: All right. Welcome back.
It's a decision that seems to have gone over like new Coke or Tropicana's less is more packaging. Netflix renaming its DVD by mail service to Quickster. The new name coming after a price hike back in July that caused subscribers to quit the service in droves, that sent the stock price down 55 percent. The CEO apologizes for being arrogant.
Oh, my goodness, what can Netflix do now?
Joining me now, branding strategist and social commentator Adam Hanft. He's also the CEO of the marketing firm Hanft Products.
What -- you never want as a CEO to have your company become a case study for business schools. And that's exactly what happened here.
ADAM HANFT, CEO, HANFT PROJECTS: I think that's fair to say. I think they made a series of blunders that are rolling out to be pretty bad news for them.
ROMANS: How bad is it? I mean, investors are looking at what the company's strategy has been and then the company is breaking into two parts, Quickster and Netflix, and then the apology from the CEO and sold the stock again.
HANFT: People were pretty hyped with Netflix before the price increase. It was one powerful brand. People liked it.
They took it and they essentially made it a double feature. That was a bad idea. People want to deal with one brand. They took their own problems and made them public, instead of saying here's one brand we want to present to the consumers.
ROMANS: So, the CEO said that he didn't want Netflix. So, that's where you rent DVDs by mail. Come in the red envelope. I mean, they're really the first movers in this market. That's a business that they saw that was dying. Streaming movies, streaming videos was the way of the future.
So, in focusing on the streaming, they kind of let the core audience who loved Netflix the way it was, they just cut them off. That's something I don't know they can recover from.
HANFT: He made a cardinal mistake, which was to share his problems with the public. He basically said, look, we don't want to go bankrupt. We've got to transition. That's his problem. That's not the consumer's problem.
And you're absolutely right, the traditional DVD in the mail business may not be a high-growth business, but it's a profitable. It's going to be around for a long time. He should have migrated the consumers, choose a business under one central brand as opposed to bifurcating it the way he did.
ROMANS: You know, and your brand is so important. So, now, people don't know wait, am I a Netflix customer, am I a Quickster customer? Well, I'm a Netflix customer but I'm not -- it confuses who they are.
HANFT: And besides, they aren't even connected. So, if you go to rent a movie and then you decide you want to stream a movie, you got to log out of one site, and go into another site -- very bad user experience.
ROMANS: So, what should he do now? He said he didn't want to -- the CEO of this company said he didn't want to be like AOL, dial up or Borders, that was his big fear that kept him up at night was. And in trying to avoid that fear, I mean, many people say he made it worse for himself.
HANFT: Well, he highlighted the fact that a part of the business is in trouble. He should have done a more elegant, seamless migration from one to the other, under one brand, not artificially splitting into two.
ROMANS: So, where did they go from here? I mean, he said he was sorry. He's sorry the company seemed arrogant, but he didn't roll back the price increase and that just made fans and followers even more angry.
HANFT: He tried to isolate the price increase like keeping it in the old business. I think that was also part of the strategy. If you want to be really bold and he really wanted to be honest, he should say, you know what, I listened to my consumers. This was a bad idea. This was a 21st century, to your point -- we're going back to the way it was.
ROMANS: So, how can he -- can the company recover from this gaffe?
HANFT: I think over time they can, because I think people did like the brand. Price increase aside, people do like to cue, people do like the recommendation entry. It had a lot of emotional connection. He's got to work hard but can probably get them back over time.
ROMANS: Once you lost those customers, though, they have a lot of other choices now. And when they get hooked on a different service, it might be hard to get in back.
HANFT: It might be. But Netflix is a powerful marketing acquisition machine. They were the first. They've got that down to a science. They do know how to acquire customers.
ROMANS: Let's talk about the name Quickster, OK? So, there's some guy on Twitter who, you know, has sort of a dope-smoking persona that people laughed about. You know, I mean, Ali's laughing. I mean, was Quickster also, some people said it brings to mind Napster and other sort of defunct-ster kind of companies.
HANFT: Friendster.
ROMANS: Yes. So, I mean, how about that as a branding choice?
HANFT: I think it shows they rushed into this too fast. I mean, the fact nobody in the vast enterprise of Netflix said let's see who owns Quickster on Twitter? This shows you how ill-considered this move was, I think.
ROMANS: And it's not really quick actually.
HANFT: No. In fact it's slower than the new Netflix. That was all confusing.
ROMANS: All right. So much to talk about on this. We'll see if the stock recovers.
Adam Hanft, thank you so much. Nice to see you.
HANFT: Thank you.
ROMANS: Ali and Carol?
VELSHI: I thought Adam was very charitable about that whole thing. I'm definitely one of those people who just had it with this company. There you go. It is definitely going to go down as one of those things we study. Forty-five minutes after the hour.
Quick check of the morning's stories are right ahead. Stay with us.
COSTELLO: Plus, your responses to our A.M. talkback question of the day, is it time to rethink the death penalty? It's 45 minutes past the hour.
(BEGIN VIDEOTAPE)
REYNOLDS WOLF, AMS METEOROLOGIST: The first children's car seat was introduced in 1921, but by today's standards, early versions didn't offer much safety. Ninety years later, an Indiana division of derail industries is looking to the Indy 500 for ideas to create what they believe is the safest car seat yet.
UNIDENTIFIED MALE: Being close to Indianapolis really is what inspired us to try to work with them.
WOLF: The answer is in a material similar to the ones used in the race car seats. It's a foam called airprotect. It reduces the impact by spreading out the force of the collision and airprotect has been put to the test. UNIDENTIFIED MALE: We've concentrated on side impact crashes primarily because they are the most dangerous. In all the advances of automotive safety, a lot of that is up in the front of vehicle. When we talk about side impact crashes, you basically have about 18 inches of distance between the side of the vehicle and the occupant.
WOLF: Developer say the key is protecting the child's head and upper torso.
UNIDENTIFIED MALE: The design of the seat itself, how we have larger wings out the side so that we're dealing with and addressing the intrusion that happens in a side impact crash.
WOLF: Airprotect is on the road now, and investors hope crash statistics will be the only thing taking a hit.
Reynolds Wolf, CNN.
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VELSHI: Forty-eight minutes past the hour. Here's what you need to know to start your day.
(BEGIN VIDEOTAPE)
VELSHI (voice-over): We are on U.S. hiker freedom watch. Two American hikers held prison in Iran could be released at any moment. Two diplomatic cars have been spotted entering the prison in Tehran. The lawyers for the two men say all the court paperwork that was holding them up is now complete.
President Obama preparing for a face-to-face meeting today with Palestinian president, Mahmoud Abbas, trying to convince him to negotiate Palestinian statehood directly with Israel rather than requesting it later this week from the United Nations.
Supporters vowing to continue the fight to stop Troy Davis' execution tonight in Georgia. He's scheduled to die by lethal injection for the 1989 shooting of an off-duty police officer.
Singer, Tony Bennett, apologizing for his comment in a radio interview that blamed the U.S. for the 9/11 terror attacks. Bennett told Howard Stern they flew the planes in, but we caused it. The 85- year-old Bennett says there's no excuse for terrorism and the murder of nearly 3,000 innocent victims.
And Charlie Sheen and Ashton Kutcher both ratings winners this week. More than six million people watched Sheen's comedy central roast on Monday, the highest rated ever on the network. Ashton Kutcher's debut on "Two and a Half men," not too shabby, 28 million people tuned in. That's a series high and the best prescripted TV shows since "Desperate Housewives" in 2005.
(END VIDEOTAPE)
VELSHI (on-camera): That's the news you need to know to start your day. AMERICAN MORNING is back right after this break.
(COMMERCIAL BREAK)
COSTELLO: Nine minutes until the top of the hour. Good morning to you. We asked you to "Talk Back" on one of the big stories of the day. The question this morning, is it time to rethink the death penalty?
This is from Frank. He says, "Why would criminals be afraid of punishment where there is none? How many parole hearings does a convicted killer get? Should we set them free to do it all over again? How many do we need to hear about? How many kids need to be killed because another killer was set free?"
This is from Brian, "I think the death penalty is used to justify revenge and is only a, quote, "civilized way" to exact murder as punishment. Do we teach our kids that violence is OK if it's to a bad person? When are we as a nation going to realize that violence only brings about more violence? Hypocrisy at its finest if you ask me."
And this from Tony, "Certain violent crimes and repeat offenders of serious crimes have shown they don't belong in society. Lights out."
Keep the conversation going. Facebook.com/americanmorning.
CHRISTINE ROMANS, CNN ANCHOR: All right. It worked in 1994, and Newt Gingrich is hoping it'll put a little life into his lagging 2011 presidential campaign.
(BEGIN VIDEO CLIP)
ROMANS (voice-over): The former House speaker announcing he has a plan for a new 21st century contract with America. He'll unveil it at the end of the month, calling it a visionary, something, quote, "Abraham Lincoln would have campaigned on."
It's the contract with America team sounds familiar. You may recall in 1994, the Republicans used it to win back a majority in the House.
VELSHI (voice-over): And Michele Bachmann's got a beef. There it is. She's holding a really sharp knife and surrounded by carcasses making an appearance at an Iowa meat plant yesterday. Bachmann carving up the Obama administration's regulations and a side of beef talking about the need to, quote, "slice government regulations" that are stifling America's --
(END VIDEO CLIP)
COSTELLO: It's better than kissing babies and shaking hands.
ROMANS (on-camera): Are we talking about trying to have different kinds of regulations on meat because we want to make sure that all of these kinds of E.coli we can't get and --
COSTELLO: She's talking about the regulations of small businesses.
VELSHI (on-camera): That's right.
COSTELLO: Talking specifically about that, and she says that this company actually has one person to deal with all the rules and regulations set forth by the government, although, she doesn't specify whether it's federal regulations or state.
VELSHI: Right.
ROMANS: Or which regulation she thinks are owners
COSTELLO: I didn't delve into it that much, but we'll check that out. A cool photo op.
ROMANS: True.
COSTELLO: It was different.
ROMANS: He's friendlier than the average bear. You may not believe what you're about to see, but, please, take a look.
(BEGIN VIDEOTAPE)
ROMANS (on-camera): All right. Billy Gray (ph) and his son say they were fishing at pond in Virginia when they saw a bear on the shore. The bear, eventually, comes out of the woods, goes right up to the two men, so they stay put. Wildlife experts, though, say you're really -- this thing could have gone the other way.
UNIDENTIFIED MALE: If he was in a full feeding mode, that would have been a whole different video.
VELSHI (voice-over): Enough said.
ROMANS: They say the bear stuck around for about two hours. They were done fishing by the time he disappeared. Wildlife experts say the bear so comfy around humans probably because they're feeding them. Something you're not supposed to do.
VELSHI: I would never have my hand, or for that matter, my phone, which I -- more than my hand that close to a bear.
ROMANS: No. I'm such a sissy. There's no way --
VELSHI: If the bear went for me, I'd hand them the hand before the phone.
COSTELLO (voice-over): He had a son with him.
ROMANS: Yes.
VELSHI: You know, it's weird.
COSTELLO: We're glad it was a nice bear.
(LAUGHTER)
(END VIDEOTAPE)
COSTELLO (on-camera): The repeal of "Don't Ask, Don't Tell," had your late-night hosts joking openly. Take a look.
(BEGIN VIDEOTAPE)
JAY LENO, HOST, THE TONIGHT SHOW WITH JAY LENO: Today, the military's policy of "Don't Ask, Don't Tell" is officially over. Ended today. Ended today. Yes. Yes.
(APPLAUSE)
LENO: See, now - now, gay couples can enlist, fight overseas, put their lives on the line all to defend people's right to say they can't get married when they get back home. How about that? Yes.
DAVID LETTERMAN, THE LATE SHOW WITH DAVID LETTERMAN: So, now what that means and this shakes up the military chain of command. I had no idea, because I'm ignorant. I don't know stuff about this, but the military chain of command has now changed. Here's how it works out. Of course, at the top, the commander in chief, that's Barack Obama, our current president. Next in command, Leon Panetta, always reminds me of pancetta, which is mighty tasty.
(LAUGHTER)
LETTERMAN: Mighty tasty. And then, after Leon Panetta, you have -- look, it's Lady Gaga.
(LAUGHTER)
JON STEWART, HOST, THE DAILY SHOW WITH JON STEWART: Now, lucky, it was gay people that they discharged from the army. Only gay people would remain in good enough shape to be able to re-enlist.
(LAUGHTER)
(END VIDEOTAPE)
(LAUGHTER)
COSTELLO: That's so try, actually.
VELSHI (on-camera): That was funny.
Just ahead next hour, after two years, American hikers held prisoner in Iran may walk free this morning. We'll get an update from right outside the prison in Tehran.
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