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American Morning
Amanda Knox Coming Home; Emails Reveal Solyndra Worries; UBS Expects "Modest" Profit; Amanda Knox Coming Home; Pres. Pushes For Vote On Jobs Plan; Appetite for Investment; Something to Sing About
Aired October 04, 2011 - 07:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CHRISTINE ROMANS, CNN ANCHOR: Good morning, I'm Christine Romans. After four years in an Italian prison, Amanda Knox is heading home to Seattle, leaving the family of murder victim, Meredith Kercher, in shock. You'll hear what they had to say straight ahead.
ALI VELSHI, CNN ANCHOR: And early worries over Solyndra. I'm Ali Velshi. New e-mails reveal that the administration had serious concerns about investing in the clean energy company. Hear the president's response on this AMERICAN MORNING.
ROMANS: All right, good morning, everybody. It's Tuesday, October 4th. Carol Costello is off today.
VELSHI: Got a lot of news today. But up first, freedom for Amanda Knox. More heartache and despair for the family of her former roommate Meredith Kercher. After four years in an Italian, Knox is heading home to Seattle today, less than 24 hours after a jury overturned her murder conviction.
ROMANS: It's a decision that left the Kercher family in a state of shock. They spoke out just a few hours ago.
Senior international correspondent Matthew Chance joining us live from Italy this morning.
Matthew, they're still very, very upset. They say that their daughter, their sister, has been lost in all of this.
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Of course, they're right. That's a terrible tragedy and, you know, a lot of sympathy around the world has gone to the Kercher family about that. But this case was about whether Amanda Knox and Raffaele Sollecito were guilty of killing Meredith Kercher, and the jury here in Perugia decided they were not, acquitted them of all those murder charges and causing murder convictions, meaning, Amanda who had been sentenced to 26 years and has served four year can go home, which is what she's doing now.
But, clearly, a big disappointment for the Kercher family. They still believe that there is a connection between Amanda Knox and the killing of Meredith Kercher. They gave a press conference earlier today. Take a listen to their sentiments.
(BEGIN VIDEO CLIP)
STEPHANIE KERCHER, SISTER OF VICTIM: We said all along we don't want the wrong people put away for a crime they didn't commit. Having said that, it may be the case of waiting another year now to get the truth, and we can't decide that. We have to leave it up to the police and the forensics and the courts. So, we just have to wait, again, really now.
ARLINE KERCHER, MOTHER OF VICTIM: I don't think anybody is going to get of scot-free. You know, their lives have been disrupted. Our lives have been disrupted. What happened to my daughter, Meredith, is every parent's nightmare of something so terrible happening, when basically she was in the safest place, her bedroom.
(END VIDEO CLIP)
CHANCE: Well, the big question now, of course, for the Kerchers is if it wasn't Amanda Knox and Raffaele Sollecito who were not involved in the killing of their daughter, Meredith, then who was? Remember, the police investigation has always worked on the basis that there was more than one killer. If it wasn't Amanda and Raffaele, the big question has been reopened again now for the Kercher family, there maybe people out there that were associated with the killing of their daughter who haven't been brought to justice.
VELSHI: Police and prosecutors say about that, Matthew, because they were convinced these are the two. Now that they have been released, do they start looking for other people, will they reopen the case? Have they said what they're going to do about that?
CHANCE: No. I mean, certainly, from the prosecutor's point of view, they say they're going to appeal this decision by the appeal court here. They've got one more opportunity to do that. They can take it to the Supreme Court of Italy, they said they intend to do that. Only when the judges on the Supreme Court make their ruling will a final end be made to this terrible case when it comes to Amanda Knox and Raffaele Sollecito.
So, there's still some appeal in the stages for the prosecution to go through before they fully accept these findings.
VELSHI: All right. Matthew, thanks very much for that. We'll, of course, stay on top of this. Amanda Knox headed from Rome to London and then from London, she's expected to go to Seattle. We don't know the flight details, but it appears by the end of the day, she will be in Seattle.
ROMANS: And as Stan (ph) said, there's one man in prison for this attack and this murder, 16-year sentence he is serving.
VELSHI: Well, according to a friend of the family, the first thing Amanda Knox wants to do when she gets home to Seattle, lay down in a green field. She could get that chance as soon as tonight. After four years in prison, she is on her way home right now.
Earlier on AMERICAN MORNING, we spoke to Thomas Wright. He's the founder of the group called Friends of Amanda. He spent years trying to win Knox's freedom and although he had no idea when she's touching down in Seattle today, he is determined to make a splash when she arrives.
(BEGIN VIDEO CLIP)
TOM WRIGHT, FOUNDER, "FRIENDS OF AMANDA": We're joking that we're going to have a flash mob celebration. That is, at the very last minute, they'll tell us where to go and we'll be there with bells on and balloons and have a great celebration.
(END VIDEO CLIP)
VELSHI: And the city of Seattle preparing for a long-awaited homecoming, one day after the murder conviction was overturned by an Italian court, Amanda Knox is on her way home.
Drew Griffin is standing by in Seattle for that homecoming. Any closer to knowing when that's going to be, Drew?
DREW GRIFFIN, CNN CORRESPONDENT: Yes, it looks like some time between 3:00 p.m. and 6:00 p.m. Pacific Time. The family, what we're gathering from representatives here is there is going to be some news conference or a welcoming ceremony at Sea-Tac Airport. We will hear from the attorney. We will hear from a spokesperson. We will also hear from Amanda Knox's parents.
Whether or not Amanda herself reads a statement, Ali, that will be entirely up to Amanda. A decision that they are going to leave to her as she flies back here to Seattle. But it looks like late this afternoon. It was just yesterday, you know, a lot of her friends and supporters had gathered in this kind of a hotel room suite to watch the verdict.
And when that verdict was announced, boy, they just erupted in jubilation and afterwards spoke about how happy they are, that finally, after all this time, that Amanda Knox is coming back home to Seattle.
(BEGIN VIDEO CLIPS)
MARGARET RALF, FAMILY FRIEND: Four years in the coming, it's been a tortuous, a tortuous robbing of two innocent people's lives, but also Meredith lost her life. You know. It's just a tragedy, all the way around.
UNIDENTIFIED FEMALE: I just want to get her home. I want Amanda home with her family.
(END VIDEO CLIPS)
GRIFFIN: She is a prolific letter writer. She wrote to a lot of people here in Seattle. But also, Ali, every Saturday morning, Amanda Knox would get a 10-minute phone call to Seattle. Her friends, we're told, will gather around a single phone with all her family and they'd share those 10 minutes a week together and try to keep this connection going.
Obviously, all those people involved in the phone calls, the letter writing, the support are going to want to see her back here later today.
ROMANS: Drew, so we're focusing on the homecoming, but at the same time the Kercher family is very upset. They're shocked. They say they still feel there could be someone else out there. There is a man in prison for this.
GRIFFIN: Yes.
ROMANS: And investigators all along said they thought there were other people involved. But you know this case inside and out. Does there need to be a new investigation for who may have helped the man who has been convicted of this?
GRIFFIN: No. And I do -- I feel terribly sorry for the Kercher family, but they're looking for people who are not out there based on the evidence. The only, quote-unquote, "evidence" that this was more than one person involved in the attack came from the dreamed up version from Juliano Magnini, the prosecutor, who felt there was no way that this woman could be held down and cut with a knife at the same time that there was some kind of a molestation or a rape going on. It was all kind of a made-up theory.
The forensic evidence, the DNA evidence, the genetic material all points to just two people who were in that room. Meredith Kercher, the victim, and Rudy Guede, the man who was serving time in prison. There is nothing else.
So, it's interesting to see what the Kerchers have to say, but I think they have to look at how this case was developed from the start. They were fed a bill of goods by the prosecution in Italy and under the assumption that Amanda Knox was part of this. Really, she wasn't. The evidence is just not there.
ROMANS: And all those shadows. Because of that theory, those shadows, even among the people around the courthouse still persist -- the questions and the doubts.
Drew Griffin, you know this better than anybody. Good to see you, thank you.
VELSHI: We'll stay with Drew throughout the day as Amanda Knox prepares to arrive in Seattle, as he said, later this afternoon, between 3:00 and 6:00 p.m. Pacific Time.
OK. New documents leaked to CNN appear to show that Attorney General Eric Holder was aware of the controversial, so-called Fast and Furious gun running operation, as far back as July of last year.
Now, that directly contradicts Holder's testimony to Congress. Under the Fast and Furious operation, ATF agents allegedly allowed thousands of weapons to cross the border and fall into the hands of Mexican drug cartels.
A high-level Justice Department official tells CNN that Holder never misled lawmakers when appearing before the Senate back in March. And, of course, this was part of -- this was supposed to be a sting operation. It was supposed to go to these cartels and they were supposed to do something about it and, ultimately, the weapons just got into bad hands.
ROMANS: They were tracking these guns and in the end, you're right --
VELSHI: You ended up arming the cartels.
ROMANS: Right, and there was a murder of a border patrol agents -- two of these guns were found nearby.
Now, President Obama telling, excuse me, ABC news he does not regret the half billion government million loan to the now bankrupt company Solyndra. The new emails reveal there were plenty of folks within the administration who were concerned about the firm's shaky finances.
Our Dan Lothian is live at the White House. Dan, that is the most unfortunate photo op for a struggling president, isn't it?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. I mean, this is not something an administration and certainly a president who is running again in 2012 wants to be dealing with right now. The president very much wants to very much be focused on job creation, on pushing his jobs act, but, instead, a lot of questions being asked about what this administration knew and what action they took leading up to that loan guaranteed to Solyndra.
And the questions being raised not only inside the administration, but outside the administration, at least according to these e-mails that are part of this congressional investigation. New details in the latest e-mail coming from an e-mail exchange between an Obama fund-raiser and a California investor writing to senior adviser Valerie Jarrett in May of last year where he says, quote, "A number of us are concerned that the president is visiting Solyndra. I just want to help protect the president from anything that could result in anything from negative or unfair press. . The president should be careful about unrealistic, optimistic forecasts that could haunt him in the next 18 months if Solyndra hits the wall, files for bankruptcy, et cetera."
The president went ahead and visited Solyndra, touting green jobs. And, of course, about a year later was when the company went belly up. Even so in an interview as you pointed out with ABC news, the president defended the decision to back Solyndra.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: You know, hindsight is always 20/20. It went through the regular review process and people felt like this was a good bet. But, the fact of the matter is if we don't get behind clean energy, if we don't get behind advanced battery manufacturing, if we're not the ones creating the cars of the future, then we're not going to be able to make stuff here in the United States of America.
(END VIDEO CLIP)
LOTHIAN: The president said that it was always clear that not every one of these green energy ventures would succeed. That sometimes some of them would fail and Solyndra was, quote, an example of that. Nonetheless, he said it was necessary to go ahead with a deal like this because in order to compete with places like China or other countries that heavily subsidize companies in this sector, the United States really has to make this investment, Christine.
ROMANS: There have been other bankruptcies of solar companies, too. A few others, I believe. And the point here that supporters of this deal say is that, quite frankly, you can't just turn a blind eye to this whole area. It is actually a competition --
(CROSSTALK)
VELSHI: But that's a discussion that is sort of separate and apart, Dan. It's unclear that the White House has made this distinction. We're going to go into risk ventures to compete effectively with China and then there is discussions about whether that's the government's role or that's a private sector's role.
But this is separate and apart, that they had distinct warning that that could happen to this company and I feel like the White House hasn't really been clear on both of those positions separately.
LOTHIAN: Right. That's one of the criticisms that you're hearing out there. But what they're trying to put forward is that there was nothing overly political about this decision, that this was vetted the same way that many others that did succeed were vetted. And that this is just part of the process. When you looked at starting or investing in a company outside of something like this, there's always the possibility that it could fail and this was one of those cases.
VELSHI: It's true that the bush administration declined to go forward with this loan, right?
LOTHIAN: That's right. I mean, there were concerns even then. I mean, you look back as you're seeing the traffic on this, that there were concerns dating back quite a while about this company, whether or not it would have any sort of long-term sustainability.
But as the president pointed out, you know, 20/20 hindsight. When you look back at something, maybe you would have done it differently at the time based on the information they had and even though there were flags that were raised about this, red flags that were raised. They still felt this was something they should move forward on, and the president made the visit.
ROMANS: Depending on how you look at it. Some say it was sloppy stimulus. It was just throwing money without doing due diligence and others say, no, it was a strategic industry that they were trying to get money to. Any case, Solyndra is bankrupt. So, there you go -- Dan Lothian, thanks.
VELSHI: Dan, thanks.
ROMANS: If you watched "Monday Night Football" last night, you may have noticed something was missing. ESPN skipped that famous, "are you ready for some football?" opening. There it is. Something that has been part of the broadcast for 20 years because earlier in the day, the singer Hank Williams Jr. was on FOX News and made an analogy about President Obama that, quite frankly, didn't go over very well. Take a look.
(BEGIN VIDEO CLIP)
HANK WILLIAMS JR., MUSICIAN: You remember the golf game they had, ladies and gentlemen, remember the golf game. That was one of the biggest political mistakes ever.
UNIDENTIFIED MALE: Why?
WILLIAMS: That turned a lot of people off, you know, watching, you know, it just didn't go over.
UNIDENTIFEID FEMALE: You mean when Boehner played golf with President Obama?
WILLIAMS: Oh, yes. Yes. Biden and Kasich, yes.
UNIDENTIFIED FEMALE: What did you not like about it? It seems to be a really pivotal moment for you.
WILLIAMS: Come on, come on. It would be like Hitler playing golf with Netanyahu.
(END VIDEO CLIP)
VELSHI: Little unclear. Not as unclear as the other comment he made when he called them the three stooges and the anchor said, who and he said, Obama and Biden.
ROMANS: There's three stooges.
VELSHI: That's right.
Hank Williams Jr. released a statement, quote, "Some of us have strong opinions and are often misunderstood. My analogy was extreme, but it was to make a point. I was simply trying to explain how stupid it seemed to me. How ludicrous that pairing was. They're polar opposites and it made no sense. They don't see eye to eye and never will. I have always respected the office of the president," end quote.
ROMANS: All right. Still ahead, a super secret -- Super Bowl -- Super Bowl super secret. The sports and music world is abuzz this morning over speculation of pop superstars set to perform halftime for next year's big game. We're going to tell you who it is.
VELSHI: And what's the world's most valuable sports team worth a whopping $340 million. Here's a hint. For the first time, it is not Manchester United.
ROMANS: This one makes my heart beat really fast. (INAUDIBLE) Guns and Rose and Velvet Revolver, but Duff McKagan has a new job these days. Investment guru. It's our dream combo. McKagan founded a wealth management firm, and also, he has already nabbed quite a few investors.
Coming up, he's going to be here live. How he kicked his hard party in ways, turned sober, turned to finance. Sixteen minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: You see, we have great writers here. We don't do this all ourselves, right?
(LAUGHTER)
VELSHI: There are some great writers, and I'm having trouble with one of them today. Whoever it is who's writing the baseball stuff, I'm having trouble with, because is this what they wrote. They said the Texas Rangers now one win away from putting away the Tampa Bay Rays, which means the Tampa Bay Rays can still win.
ROMANS: Yes.
VELSHI: And so can the New York Yankees, because last time, they wrote about the Detroit Tigers today is the make it or break it night. Now, let me just tell you about the Rangers.
(LAUGHTER)
VELSHI: They won their -- they won game three of their division series last night by a score of 4-3. I wouldn't call that a wipeout. Catcher, Mike Napoli, the big star, with the go-ahead homer, he threw out runner and he stole a base of his own.
ROMANS: And they're telling --
VELSHI: But the race is still alive.
ROMANS: They're telling Mike here (ph) that you get to write all of it copy tomorrow. Every last word.
VELSHI: I really appreciate our fantastic writers and producers and our crew, I'm just saying, you people are showing your baseball stripes.
ROMANS: He's a baseball -- OK. The New York Yankees facing elimination tonight in Mo-Town, is that correct?
VELSHI: No. (LAUGHTER)
VELSHI: They have a game against the Detroit Tigers in Mo-Town, and the Tigers are leading the series.
ROMANS: After the Detroit Tigers and their ace pitcher, Justin Verlander, took home three last night, 5-4. Verlander struck out 11 Yankees.
VELSHI: OK. So, that gives you the impression that the Tigers are doing very well.
ROMANS: Yes.
VELSHI: Eleven Yankees.
ROMANS: Young homerun in the seventh inning put the Tigers on top for good -- for good for now.
VELSHI: So many write this differently, for later on?
(LAUGHTER)
VELSHI: We know sporting events are worth a lot of money, but none is worth more than the Super Bowl, according to "Forbes." It is the most valuable sporting event worth $425 million, although, the Olympics are gaining ground. Now, the New York Yankees are the world's most valuable team brand worth an estimated $340 million. Tiger Woods is still the most valuable athlete brand, despite his sex scandal and his divorce and almost two-year losing streak.
ROMANS: That's all part of the brands now.
VELSHI: That's right. The brands still worth a lot of money.
ROMANS: All right. Brace yourselves for another possible wardrobe malfunction. Madonna will reportedly perform at this year's Super Bowl halftime. She'd be the first female solo act since Janet Jackson back in 2004. An appeals court tossed out the FCC's $550,000 fine for her slip four years les later. The Material Girl now, 53 years old, probably a little safer pick these days than she was --
VELSHI: Well, I don't think Madonna has ever had a wardrobe malfunction. I think --
ROMANS: It was always on purpose.
VELSHI: To deliver, right?
ROMANS: It was always on purpose.
VELSHI: Right. She used to wear some racy stuff. Anyway, for Bret Michaels next gig he's teaming up with PetSmart. The Poison front-man and former "Celebrity Apprentice" winner is designing a line of pet products that include beds, bowls, collars, leashes, and clothing. No word if bandannas and tiny cowboy hats will also be available. That'd be cute. A little Bret Michaels doggy.
ROMANS: Rob Marciano is a little (INAUDIBLE). I bet you're a big dog guy, aren't you?
ROB MARCIANO, AMS METEOROLOGIST: I am, if I were to have a dog, but I'm way too lazy to get up and walk in the morning and at night. So --
VELSHI: You're our weather big dog.
MARCIANO: I like that.
VELSHI: Yes.
MARCIANO: Very nice. Good morning again, guys. Decent weather across the northeast about to get here, but it's going to take a little bit more time. We're still dealing with this stubborn low that continues to sit and spin. Boy, Essex County, the north of Boston, has been getting hammered with heavy rain all morning long.
We've had -- we had a decent amount of street flooding happening there right now, and it's just beginning to lighten up as far as the rainfall goes, but it's rotating into southern parts of New Hampshire, including Manchester. So, this is the one that replaced the last one last week and then the reason that you had almost ten days of this very unsettled showery type of weather.
But look at L.A., might have the first measurable rainfall since last spring coming in here. It's trying. It's trying. Vegas had some flooding, as well. So, rainfall across parts of areas that really don't see it, typically, until we get into November. So, this is a pretty decent storm system. A couple of them that are driving into the west coast.
We saw some snows across the Sierra Nevada, and now, this next pulse will give us a winter storm warning. I haven't said that since last spring either. Five to 10 inches of snow, potentially more than that above 7,000 feet, and winds are going to be gusty, too, up to 50 miles an hour in the Wasatch of Utah.
Also, winter storm watch that will probably upgraded to a warning with 12 inches of snow potentially there above 8,000 feet. Windy and warm across parts of the midsections of the country. For you, Ali, Newfoundland Eastern Canada. Some video coming there from what's left over of Ophelia. Ophelia made landfall there a couple days ago bringing a decent amount of rainfall, and some of the roadways were washed out there.
Some folks are saying up there that because they weren't rebuilt properly after Hurricane Egor hit there last year. So, Newfoundland getting the brunt of the tropical action, really, the past couple of years, and we've had a couple storms here in the U.S., but our friends in Canada, not to be left out and certainly feeling it.
VELSHI: It's truly some of the most beautiful country in the world. I mean, first of all, you look at the southeastern part of Newfoundland, it's in the middle of the North Atlantic. I mean --
MARCIANO: Right.
VELSHI: While it's North America, kind of its half way to London kind of thing. But, the one thing is they're all hearty fishermen out there. They are used to rough weather. They spend a lot of them grow up on the seas. So, they don't -- they can handle it a little better than most of us can.
MARCIANO: They're a little tougher skin, I'm sure.
VELSHI: Yes.
MARCIANO: Speaking of England, Ophelia now on the way to the UK.
VELSHI: Yes.
MARCIANO: So, they're going to feel it next.
VELSHI: Like I said, if you're Newfoundland, you're most on your way there.
MARCIANO: Exactly.
ROMANS: Thanks, Rob.
MARCIANO: See you, guys.
VELSHI: Big dog (ph), Rob Marciano talking about the weather.
(LAUGHTER)
VELSHI: All right. A check of early financial markets next, including airline stocks. American Airline stocks lost one- third of their value yesterday. What a day. Why are they plummeting? We'll tell you on the other side. It's 24 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Twenty-eight minutes after the hour. "Minding Your Business" this morning.
U.S. stock futures are down. Europe and Asia are also lower on worries that Europe's debt crisis is deepening. So, same fears that pushed the S&P 500 to its lowest level in over a year yesterday.
Swiss banking giant, UBS, saying it expects to make a modest profit in the third quarter of this year even after one of its traders went rogue and blundered away $2 billion in unauthorized deals. That trader, by the way, has been charged with fraud and false accounting.
Fears that American Airlines could file for bankruptcy protection kicked up yesterday pushing the parent company, AMR. Well, the stock of it down 33 percent. American is the nation's third largest carrier and the only major airline to lose money this year. In a statement, the company adamantly denied that it is seeking bankruptcy protection.
Today, Apple pulls back the curtain on its latest iPhone, and for the first time, the company's new CEO, Tim Cook, will have the honor of introducing the long-awaited gadget.
Coming up next, we're going to tell you what you can expect from today's event. Will the iPhone be bigger, faster, thinner? We think we know, and we'll tell you what we think we know. AMERICAN MORNING is back after a break.
(COMMERCIAL BREAK)
ROMANS: Welcome back. Here are your top stories.
Amanda Knox is on her way home to Seattle today one day after a jury in Italy threw out her murder conviction. She reportedly boarded a plane in Rome this morning, is going to pick up a connecting flight in London. One of her supporters says the first thing Knox wants to do when she gets home to Seattle, she wants to lie down in a green field.
VELSHI: this story gets me every time. ESPN yanking the famous Monday night football open featuring Hank Williams, Jr. after the singer compared President Obama to Hitler on Fox News yesterday, and that wasn't all he did, he also drew another analogy. His math was a little confusing on this one. Listen.
(BEGIN VIDEO CLIP)
HANK WILLIAMS, JR., MUSICIAN: They're the enemy.
UNIDENTIFIED MALE: Who's the enemy?
WILLIAMS: Obama. And Biden. You know, are you kidding, the three stooges.
(END VIDEO CLIP)
ROMANS: There are only two.
(LAUGHTER)
VELSHI: ESPN skipped over the intro without mentioning the controversy. The Hitler controversy is what troubled the more (ph). They're not sure yet whether the song will be back next week. Williams is saying his comments were misunderstood.
ROMANS: He says he always respects the presidency.
VELSHI: The office of the presidency. Yes.
ROMANS: Right. But apparently, the president, himself, is the enemy.
VELSHI: Right.
ROMANS: President Obama is pressing Congress to vote on his jobs plan so he can sign it by Halloween, but House majority leader, Eric Cantor, is rejecting the president's call for a vote, calling his all or nothing approach to the legislation unreasonable.
VELSHI: The political world is waiting, but Chris Christie's window to join the Republican race is closing fast. Sources say to expect a decision from Christie within 48 hours. He's been talking to his potential donors. He's been talking to his supporters, but, most importantly, he's talking to his wife.
ROMANS: Right.
VELSHI: And that may be the decision-maker.
ROMANS: All right. Happy iPhone Day. Today, Apple is expected to unveil its newest version of the iPhone and no one really knows exactly what the new phone is going to look like. Tech blogs are blowing up with rumors and anticipation. So, we took a look and broke down fact from fiction.
(BEGIN VIDEOTAPE)
ROMANS (voice-over): The last time we saw a new iPhone was June 2010.
UNIDENTIFIED MALE: We're introducing iPhone 4. The fourth generation iPhone.
ROMANS: It was an instant hit. Apple sold more than 1.7 million iPhone 4s in its first three days. Analysts now predict sales of its new version to shatter that, selling 1.7 million in just one day.
Rumored to be called the iPhone 5, the only official hint we've had from Apple is the invite to today's announcement with the words, let's talk iPhone. While Apple remains tight lipped about details, they did have an all-too familiar slip up in June.
DECLAN MCCULLAGH, CNET: An Apple employee, once again, appears to have lost an unreleased iPhone in a bar, which is just pretty much what happened last year.
ROMANS: Since then, the buzz around the newest iPhone has exploded. So, what do we know or think we know? Expected to go on sale later this morning, the new iPhone is rumored to cost around 200 bucks with a two-year service contract.
Only Verizon and AT&T have the iPhone now, but the "Wall Street Journal" reports that Sprint Nextel has reached an agreement with Apple and will buy $20 billion worth of iPhones over the next four years. The blog gives motto reports the phone will be skinnier, shorter, and wider. It may also have a teardrop back. Meaning, it's fatter at the top than the bottom. That's according to the blog, "This is My Next."
There's also talk of an upgraded camera, new voice recognition software, and Apple unveiling not one, but two iPhones, the second being a cheaper phone with less storage. But we do know whatever Apple announces, die-hard Apple fans will line-up in droves to open their wallets.
(END VIDEOTAPE)
ROMANS (on-camera): And they will open those wallets. The other mystery surrounding today's announcement is around Apple's leadership. Will the former CEO and co-founder, Steve Jobs, make an appearance? He stepped down as CEO in August after a medical leave of absence. Handed the company over to apple's new CEO, Tim Cook. There they are.
VELSHI: The guy on the right is Tim Cook.
ROMANS: This is Cook's first product announcement. While no one expects him to have the same kind of charisma that Jobs had, they will be watching his performance very closely.
VELSHI: Right. And there are some people who say that even if Jobs, we don't know what his health condition is, but even if he was well enough to attend it, it may not be great for the company. The world kind of needs to see that this Tim Cook guy can run the company. Financial journalists who have written about him think he can. Techs think (ph) he can.
ROMANS: Oh, yes.
VELSHI: The world needs to see can this guy replace Steve Jobs.
ROMANS: And you know, all of this guessing about what's in it and what's not in it. Every time there's a version, people say I wish it had this or it should have that.
VELSHI: Right.
ROMANS: And that's why so many --
VELSHI: That's where the guesses come from.
ROMANS: Right. You begin to -- what could they possibly improve upon, and so, there you go. We'll find out soon.
VELSHI: So, we don't know. You'll have to watch.
Coming up next, former heavy metal bassist turned financial adviser, Duff McKagan is here, and he wants to help you invest your money. Stick around for this. Look at him. Here he is walking into our studio right now. It's 37 minutes after the hour. We'll be right back.
(COMMERCIAL BREAK)
ROMANS: All right. While you were waiting for Guns and Roses reunion, the band's former bassist, Duff McKagan, has built some portfolio. He cleaned himself up, went to business school, is now financial planner for musician, athletes, and others and sharing his tips with us in a new book, a very good read called "It's So Easy and Other Lies."
Duff McKagan joins us now. I'll tell you that my senior song in high school was "Welcome to the Jungle," and my mother was mortified. You have had this real transformation since the 1980s when you were a young man living it up, really, in fact, I'm surprised you know some of the dates in this book considering the contents of this book.
VELSHI: We're fascinated that you can remember some of those dates.
DUFF MCKAGAN, AUTHOR, "IT'S SO EASY ( AND OTHER LIES)": Well, I tell you what, writing the book, I've been writing a weekly column for Seattle for over three years, and I write for ESPN. So, you get in that practice of writing.
VELSHI: Right.
MCKAGAN: And I have two deadlines a week, and you start writing and the thing is when you write a sentence, a statement and then you have to follow that sentence up, things start coming back, especially when you're going into your own life.
VELSHI: Right.
MCKAGAN: And I didn't know if I'd remember certain things and, really, I never spent much time trying to remember.
VELSHI: Got it.
MCKAGAN: In life you just go forward.
ROMANS: Right.
MCKAGAN: And so, it was a very interesting process writing this book and going back and some of the feelings that came up. I'll use the word catharsis. It was cathartic in a lot of way, but it was refreshing. I think it gave me a new energy --
VELSHI: Yes.
ROMANS: There's familiar things in here, the drugs, the partying, the barely getting to some of the concerts. I mean, we've heard this from other rockers, and it was a very wild, wild time for Guns and Roses, but your story is so different, because you found yourself, well, your pancreatitis -- your mother was there in a wheelchair looking at you and you thought, oh my God, I should be taking care of her and that was sort of the beginning of this whole change for you.
MCKAGAN: Yes. People talk about bottoms and, et cetera, and that was my real bottom. It wasn't getting pancreatitis. It wasn't all these things that led up to it. It was being in the hospital and see my mom, and I'm the last of eight kids. She was coming in to take care of me. And I had tubes running in and out of me and she has Parkinson's and in a wheelchair and I thought to myself then and there, that order of things are wrong.
VELSHI: Yes.
MCKAGAN: And I screwed up. And, that was my turn around.
ROMANS: You changed your order of things.
MCKAGAN: Went to school, went to business school.
ROMANS: You found yourself in your basement one day going through boxes of financial statements, and you thought, I don't understand any of this.
MCKAGAN: Yes, I tried. It was so (INAUDIBLE). I'm suddenly sober. I have to sober. My doctor says, if you drink, you die. That's a black and white --
VELSHI: Give us pretty specific. I mean --
(CROSSTALK)
MCKAGAN: Your pancreas is exposed. You drink, you're going to die. OK? So, I was trying to fill my time, and one of the things I did was I had this file cabinet, two of them, full of our financial statements for the past six years. OK, well, I'll try to get our financial house in order, you know, I thought to myself.
ROMANS: Anything to keep you from drinking.
MCKAGAN: Right. Anything. And that was one of the things, and I got in there and I just couldn't understand, and there were maybe misleading, you know. I came to find out once I started going to school --
ROMANS: So, you figured it out. For yourself. You figured it out, and you became interested in numbers and finance.
MCKAGAN: I found that I loved it, you know? I got into the business school I wanted to get in to. I jumped through a bunch of hoops, because I just a GAD from high school. I hadn't been to school for years.
ROMANS: And a Ph.D. in rock and roll.
(LAUGHTER)
VELSHI: What did you learn about the business? What did you learn about the rock and roll business that you either started to apply or realize you hadn't done correctly?
MCKAGAN: I was just really trying to rest control of my own personal finance.
VELSHI: Right.
MCKAGAN: And get into investing and make the money I made last.
VELSHI: Right.
MCKAGAN: I didn't want to be 60 and broke. We generated a lot of income, for sure. In the late 1980s and 1990s, and I found out, oh, we have a legacy. We have a catalog of records that are going to continue to sell.
VELSHI: Right.
MCKAGAN: Things I just didn't understand. T-shirts. OK, well, we can market these things different, you know, different ways --
ROMANS: Just learn so much doing that. That's amazing.
MCKAGAN: Yes, licensing and all kinds of things but, really, investing my own wealth into the markets.
VELSHI: And then -- so, you're almost graduated now, right? You're still taking these courses, but you're actually advising other people on how to handle their money.
MCKAGAN: Well, what happened, my last year at Albers School Business at Seattle, a new band started. So, it's 2003. And so, I had a chance to go back out and generate, you know, I had two babies at this point, and --
ROMANS: Two little girls.
MCKAGAN: My little girls. And, who aren't so little any more.
ROMANS: I know.
MCKAGAN: But you know, life is just very interesting and I think school and Velvet Revolver and everything and my kids and everything really played into me starting Meridian Rock now. And it's kind of --
(CROSSTALK)
VELSHI: Meridian Rock is your company.
ROMANS: That's the name of the company, right.
MCKAGAN: Right. And it's -- it's about sort of being of service to my fellow --
(CROSSTALK)
VELSHI: Yes.
ROMANS: Yes.
MCKAGAN: -- musicians at this point.
ROMANS: Do you think guys -- that G and R will get back together? If you guys say were inducted --
(CROSSTALK)
VELSHI: Or you are nominated to those --
(CROSSTALK)
ROMANS: Rock and Roll hall of fame. You were nominated. Do you foresee a day where you guys can play together again?
MCKAGAN: You guys are going to ask me about this on CNN right now. Ok.
ROMANS: We are.
MCKAGAN: And here we are.
VELSHI: Come on you could have --
ROMANS: I mean you guys have to start thinking about it.
(CROSSTALK)
VELSHI: You could have an induction.
MCKAGAN: Yes, it's the kind of that can of worms that's been sitting there and it only really came up when I would do an interview. Like, you know you guys are --
(CROSSTALK)
ROMANS: Well, you know why, because we love it, we love it, we love you guys.
MCKAGAN: Yes, yes.
ROMANS: It's like that magic.
MCKAGAN: It was -- it was an amazing band. It really was. I owe a lot to all of my fellow band members from that time and we learned a lot as -- as young men and songwriters and all of that together. And whatever, I can't tell what is going to happen in the future. ROMANS: Yes.
MCKAGAN: I'm a grown up now. And I have, certainly, have good feelings towards all those guys.
ROMANS: You've done a lot of things since then, though. There have been subsequent chapters for you since Guns n Roses.
MCKAGAN: There -- there have been, yes many. And yes, life is good.
VELSHI: So is that a yes or no to a reunion if you guys get inducted into the Hall --
MCKAGAN: Did you see how I skirt around that Hall of Fame?
(CROSSTALK)
VELSHI: Very effectively.
ROMANS: Are you -- will you really running for the 2012 Republican nomination? That's the kind of answer that was.
MCKAGAN: Yes, God, somebody's got to.
(CROSSTALK)
VELSHI: So either a Guns n Roses reunion or --
(CROSSTALK)
ROMANS: Or a Republican --
VELSHI: -- or a declaration of a candidacy.
(CROSSTALK)
ROMANS: I want to ask you a quick question about your daughters. Because the pictures you had they are beautiful, you have a wonderful family.
MCKAGAN: Yes.
ROMANS: I mean you are so lucky and blessed and in this book are lots of mistakes that you have owned up to.
MCKAGAN: Yes.
ROMANS: And a lot of, you know, misjudgment and -- and struggles with drugs and alcohol. How do you talk to your kids about that chapter so that they don't repeat those mistakes?
MCKAGAN: Yes, ok. So, what I found out was it wasn't everybody else's fault. Maybe I had something to do with my own life. And I think my kids, what I -- I say, you know, if you don't -- if you tell the truth from the beginning, then you won't have to make up a story later on. It is a lot easier. And -- and for me, telling them about my life, my life, like I said, my kids, paradigm is everything is a click away.
ROMANS: Yes.
MCKAGAN: Hey, dad, how come in this old video that you're falling down and you talk really funny.
(CROSSTALK)
VELSHI: Yes.
ROMANS: Yes.
MCKAGAN: -- and how come grownups are over and you don't drink wine.
And so, you know, these stories come naturally. Well, my elder started grapes, if I drink wine, if I have a glass, I might have to have another and then another and then I might have to go to the store and get some more and then -- and then I'll drink all of that. And then, I'd probably end up upside down with my pants on my head you know -- and -- and you wouldn't want that.
VELSHI: Right.
MCKAGAN: Yes, that sounds kind of dumb. So it started with those kind of innocent stories to now more serious, Grace is 14. I've had a talk. We've had talks and you might have my -- malaise, you know, you might have this thing that if you start drinking or doing anything like that, you might want to --
ROMANS: That honesty is beautiful.
VELSHI: Yes.
ROMANS: That you can have that kind of relationship with your kids is great.
MCKAGAN: Yes, you've got to be and I've got to be and I don't know if I'm doing parenting right. This is a whole another story, right?
VELSHI: You're trying it the right way.
MCKAGAN: Once a month and I think, I failed. I really failed. But --
(CROSSTALK)
VELSHI: Well, a great story.
ROMANS: It's a great book. It's -- it's so easy. Thanks a lot. VELSHI: Great to see you and we -- we look forward to either your announcement of a reunion or your candidacy for President of the United States. Duff McKagan.
MCKAGAN: Yes, you guys, thanks for having me on. What a great way to start my book.
VELSHI: It's a pleasure.
ROMANS: It was a real fun. We love it. Duff McKagan.
VELSHI: Good luck, stay on the -- stay on the right track. Good to you Duff.
MCKAGAN: See you guys.
ROMANS: And good luck, good luck.
All right, "Morning Headlines" are next.
VELSHI: It is 49 minutes after the hour.
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VELSHI: Fifty-one minutes after the hour. Here are your "Morning Headlines".
Markets open in 45 minutes. Right now U.S. stock futures are down. The drop follows declines in Europe and Asia where investors remain worried that Europe's debt crisis is deepening.
Jury selection begins today in the trial of the alleged Underwear Bomber. The Nigerian defendant is accused of trying to bring down a crowded jetliner on Christmas Day, 2009 with the bomb hidden in his underwear. He plans to represent himself at trial.
Amanda Knox is expected back on U.S. soil today. The freed U.S. student had her murder conviction overturned in an Italian court yesterday. She reportedly boarded a plane from Rome to London this morning and will then pick up a connecting flight to her home in Seattle.
ESPN yanking the famous Monday night football open featuring Hank Williams Jr. after the singer compared President Obama to Hitler yesterday. Williams says his comments were misunderstood.
Decisions, decisions: Chris Christie is said to be on the verge of a big one. Will he jump into the Republican presidential race? A source close to the New Jersey Governor says look for a final decision within 48 hours.
That's the news you need to start your day. AMERICAN MORNING is back right after the break.
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ROMANS: Wow, look at that, look.
VELSHI: The White House.
ROMANS: The White House right now.
(CROSSTALK)
VELSHI: And the pink house.
ROMANS: That's the pink house -- that was last night. The colored lights are an annual tradition started by President George W. Bush three years ago. North side of 1600 Pennsylvania Avenue bathed in pink in honor of Breast Cancer Awareness Month.
VELSHI: Very neat.
All right, she beat the odds to become a star in the world of hip-hop music but the physical challenges didn't end there. Dr. Sanjay Gupta has her story in this morning's "Human Factor".
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Don't go chasing waterfalls --
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Long before she became famous as T-Boz, lead singer of the bestselling female hip-hop group TLC, Tionne Watkins knew she wanted to be a performer.
TIONNE WATKINS, TLC: I always had the same dream and I will see myself in baggy pants running from the left side of the stage and bending down to the right shaking someone's hands and a whole bunch of people were screaming for me.
GUPTA: Now success didn't come easily because T-Boz has a chronic illness. She suffers from sickle cell anemia. It's a incurable blood disorder that leaves people exhausted and in constant pain.
WATKINS: Doctors they didn't give me a very happy ending. You won't live past 30, you know, you'll be disabled your whole life. You'll never have kids. And I was looking around the room, like, I don't know who he's talking to because that's not my story.
GUPTA (on camera): That's a lot for anybody to go through. But you were dealing with this as a young child.
WATKINS: Yes.
GUPTA: And at the same time, you were having these grand dreams?
WATKINS: Yes and yes.
GUPTA: It sounds like you turned it around in some way.
WATKINS: Yes, and I think it had to do a lot with my mother, too because she never made me feel different.
GUPTA: Then, just five years ago after having achieved so much success, her life was turned upside down.
WATKINS: I started having headaches, but they were so frequent, something was wrong. My doctor called, but his voice sounded funny. And I said, you're going to say something like I have a brain tumor or something, right? And he got quiet.
GUPTA: Now, while the tumor was noncancerous, her doctor said surgery was not an option because of her sickle cell disease. He suggested radiation therapy, but that could have put her career and quality of life at risk. So T-Boz found a surgeon who successfully took the tumor out.
(on camera): And it sounds like you're one of these people who thinks of something, visualizes it and then, makes it happen.
WATKINS: I go for it.
GUPTA (voice-over): T-Boz is back in the studio these days working on a solo album. She's also using her celebrity to encourage people to become bone marrow donors.
WATKINS: What I'm trying to do is get more African- Americans to step up.
GUPTA: Dr. Sanjay Gupta, CNN, reporting.
(END VIDEOTAPE)
ROMANS: All right.
VELSHI: Great story.
ROMANS: Yes. Fifty-six minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: A little Guns n Roses, "November Rain". It's October, but it's going to be rainy in New York. 62 degrees is what it's going to get up to; it's 54 degrees right now. I would say, "Good morning, New York and wake up. You really should be awake by now."
ROMANS: And we're playing Guns N Roses because we had Duff McKagan on from Guns N Roses and so we played them on.
VELSHI: Which was a nice -- a little break from all the news out there. We're waiting for Chris Christie to see whether he's running for president. We're waiting for Amanda Knox to land in Seattle, probably sometime this evening.
ROMANS: That's right.
(CROSSTALK)
ROMANS: And Ben Bernanke.
VELSHI: We're waiting for Ben Bernanke to speak to Congress. We're waiting to see what happens on those markets. Some concern about Europe.
So there's a whole lot of news that CNN is going to keep you posted on all morning. And with that --
ROMANS: Martin Savidge picks it up for us right now -- Hi Martin.
MARTIN SAVIDGE, CNN ANCHOR, "CNN NEWSROOM": Hello Christine. Thanks Ali.
