[Ali Velshi, Cnn Anchor:] Good morning. It's Wednesday, September 1st. I'm Ali Velshi. John Roberts has the day off.
[Kiran Chetry, Cnn Anchor:] Nice to see you. Welcome back.
[Velshi:] What a great time for us to be together.
[Chetry:] Yes. We're talking about the official end of combat operations in Iraq. The big ceremony and marking the occasion. It's going to take place in two hours, live here.
[Velshi:] Yes.
[Chetry:] So we'll have more on that. Meantime, Hurricane Earl weakening slightly but we're still nervous here on the east coast. There could be some big trouble up and down the eastern seaboard ahead of the Labor Day weekend. Earl just downgraded to a Category 3 storm but it is still packing winds of 125 miles an hour. Mandatory evacuations have been ordered along the North Carolina coast, the Barrier Islands. FEMA is urging people to prepare for the worst.
[Velshi:] President Obama makes it official. Kiran, we're just talking about this. The war in Iraq, at least the combat operations are over. The Pentagon is launching "Operation New Dawn" today keeping 50,000 troops there to help Iraq's military. The vice president and defense secretary are in Iraq right now to see military control change hands. From Baghdad to D.C., our CNN team has every angle covered for you this morning.
[Chetry:] Also a surprise rise in how shoppers may be feeling about the economy. There are new numbers revealing consumer confidence is up. So does this mean that better economic times could be ahead? We're going to break it down for you.
[Velshi:] And, of course, the amFIX blog is up and running. Join the live conversation right now. All you have to do is go to CNN.comam
[Fix. Announcer:] This is CNN breaking news.
[Chetry:] We're following breaking news from the political world this morning. What could be called one of the biggest upsets of the year. Overnight, two-term Alaska Republican Senator Lisa Murkowski conceded the Republican primary to Tea Party favorite Joe Miller. He was ahead by more than 1,600 votes after the counting of additional ballots. Miller many say really came from nowhere. He's a lawyer, a political newcomer. He had Sarah Palin's support as other Tea Party candidates did.
[Velshi:] AMERICAN MORNING, we're going to bring the story like no one else can. CNN's Shannon Travis is in Anchorage, Alaska. Here's his report.
[Shannon Travis, Cnn Correspondent:] In Alaska, there's been a seismic shift in the political landscape. Republican Senator Lisa Murkowski has conceded the Senate GOP primary to her challenger Joe Miller.
[Sen. Lisa Murkowski , Alaska:] For the good of the state of Alaska, which is, this is what this is all about. It's for the good of the state of Alaska. I am now conceding the race for the Republican nomination. I shared that information with Mr. Miller just a few moments ago.
[Travis:] Joe Miller, you will remember, is the Tea Party Express candidate, who back in June when the Tea Party Express endorsed him, was a virtual unknown in this state. Many people had not heard of him but the Tea Party Express took a candidate who had very low name I.D. They poured in money, they poured in time, they poured in resources and helped push him towards the finish line. This will also be seen as a political victory for none other than Sarah Palin. Sarah Palin endorsed Joe Miller back again when he had very little name I.D. That earned a lot of local and national attention. So this will also be seen as Sarah Palin flexing her muscle yet again. Shannon Travis, CNN, Anchorage, Alaska.
[Chetry:] And the interesting thing is Senator Murkowski was also part of a political dynasty.
[Velshi:] Yes.
[Chetry:] She was relatively popular in the state. And, of course, her loss is now the Tea Party's gain. Joe Miller, by the way, the fifth Tea Party-backed candidate to win this year. He joins Sharron Angle of Nevada, Rand Paul of Kentucky, Mike Lee of Utah, and Ken Buck of Colorado. These are victories that prove the Tea Party is becoming a major player in Republican politics, often spending hundreds of thousands of dollars on ads for candidates. By the way, Joe Miller will be on CNN tonight. John King's guest. "
[John King Usa," 7:] 00 right here on
[Cnn. Velshi:] You don't see a lot of bearded Senate candidates.
[Chetry:] He might be the first one.
[Velshi:] If he were to win, he'd be the first bearded senator. I think. I don't know. I think in the old days they were bearded.
[Chetry:] Right.
[Velshi:] I don't know much about hair, anyway. Anyway, a change of command in Iraq this morning. A story we're following. Vice President Biden and Defense Secretary Robert Gates will pass the baton to Iraq's military at a special ceremony at 8:00 this morning, 8:00 Eastern this morning. We're going to bring it to you live when it happens.
[Chetry:] Also, Defense Secretary Robert Gates is meeting with U.S. and Iraqi forces. This is taking place at Camp Ramadi. A video from just a short time ago. Secretary Gates telling American soldiers that they're still going to work with Iraqis on counterterrorism and do a lot of training and advising.
[Velshi:] And last night, you may have seen this, President Obama paying tribute to the Americans who served in the war, nearly 1 12 million troops. He didn't give any credit to former President Bush's surge strategy.
[Barack Obama, President Of The United States:] Because of our troops and civilians, and because of the resilience of the Iraqi people, Iraq has the opportunity to embrace a new destiny, even though many challenges remain. So tonight, I am announcing that the American combat mission in Iraq has ended. "Operation Iraqi Freedom" is over and the Iraqi people now have lead responsibility for the security of their country.
[Chetry:] Our team of reporters covering this story like only CNN can from all sides of the globe this morning. Suzanne Malveaux is at the White House getting reaction from the administration. Chris Lawrence is with our American forces at Camp Victory in Iraq. And, Chris, let's start with you. You've been talking to troops there, as you said yesterday, although it sort of signals the formal end to combat operations, or guys that are out there in the field it certainly doesn't feel like they're out of combat. What does this mean to them today, from what you're hearing?
[Chris Lawrence, Cnn Pentagon Correspondent:] Well, I think, you know, we heard from Defense Secretary Robert Gates just a couple of hours ago. He was asked are we still at war in Iraq? And he said no. And I think that really kind of sums up. Even though this day is symbolic and troops have been sort of, you know, transitioning to this new role, to think that we are no longer in active combat missions here, you know, for some of these men who have been here off and on for the better part of seven years, you know, this day is really taken on a lot of meaning.
[Lawrence:] Now it's official. American troops who once led missions now assist Iraqi forces. [on camera]: What does September 1st mean to you?
[Staff Sgt. Bradley Beazer, 4-10 Cavalry:] To me it means we've done well and we've worked ourself out of the job, which is what we came here to do in the first place.
[Unidentified Male:] It means that I'm not going to have to come back.
[Lawrence:] September 1st means more work for some American flight crews, especially those flying Blackhawks.
[Spc. Nicole Jones, Blackhawk Flight Crew:] We're the only one of the only support aircraft here since we had Chinooks that were here. They just recently left. So, it's picked up quite a bit for us.
[Lawrence:] The first full day of "New Dawn" is especially poignant for soldiers who saw through years of fighting "Operation Iraqi Freedom."
[Staff Sgt. Adam Steffens, 3rd Brigade, 4th Infantry Division:] I've been here, you know, four tours and the change I've seen is remarkable.
[Lawrence:] Staff Sgt. Adam Steffens was part of the invasion of Iraq in 2003, then deployed twice during the most brutal fighting.
[Steffens:] It was really, really crazy for a couple years there. But now, I look back at that and, I mean, it's a breathtaking difference.
[Lt. Col. John Digiambattista, U.s. Army:] It is a significant thing for a soldier to see Iraqis that you might have trained two years ago and they weren't that didn't have much initiative. They weren't that well trained. They weren't that aggressive. Now to come back and see them, and they're doing operations we're following them, he's getting paid back for that time that he's already spent here.
[Lawrence:] More than 4,400 American troops died fighting "Operation Iraqi Freedom." Another 34,000 were wounded. [on camera]: When you look back at your experience in '05, '06, '07, was it worth it?
[Digiambattista:] Absolutely. There are a lot of individuals that made the ultimate sacrifice. A lot of soldiers here in Iraq, soldier's faces and the people I worked with. And if their sacrifice can be worth where we're going, I think we're doing the right thing.
[Lawrence:] Yes, a lot of soldiers told me, you know, over the past seven years, those on their fourth deployment, they have spent the majority of their lives here in this country, over the last seven years. A lot of them feel very invested in Iraq. Some of them told me even when I deploy back home and I'm not going to come back here, I'm going to keep trying to find out what's going on because right now they've got some hope that what they did and the men that they saw killed here, it made some sort of difference. But if Iraq slides back into chaos, you know, a lot of them tell me, you know, it's really going to be hard to take once I'm back home.
[Chetry:] Very understandable sentiment for people that gave so much. Chris Lawrence for us this morning, thanks so much.
[Velshi:] This is a tricky political landscape for the president to navigate. He's winding down one war in Iraq, while ramping up another war in Afghanistan, all with a backdrop of tough economic times. He's going to try and sell this idea to the American people. He started that last night. Suzanne Malveaux is live at the White House this morning. Suzanne, the Afghanistan war is wildly expensive, it's wildly unpopular. It's a tough sell at the best of times for the president. But he's had to deal with it right now, Suzanne.
[Suzanne Malveaux, Cnn White House Correspondent:] Yes, absolutely, Ali. And one of the things, I traveled with the president yesterday to Fort Bliss, Texas, visiting the troops. It is very clear that the president cares a great deal about the servicemen and women but this is a war-weary nation. Let's face it. It's going to be a very difficult sell for the president. But one thing that was notable last night is that in a nod to President Bush's surge, troop surge in Iraq, he did mention the fact that that was going to be the one thing that would be important in Afghanistan, a vehicle to end that war. I want you to take a listen.
[Barack Obama, President Of The United States:] As with the surge in Iraq, these forces will be in place for a limited time to provide space for the Afghans to build their capacity and secure their own future. But, as was the case in Iraq, we can't do for Afghans what they must ultimately do for themselves.
[Malveaux:] And, Kiran, Ali, last night we already heard from the president talking about July as a potential window to take a look and see whether or not the forces, things are going well in Afghanistan, whether or not it will be time to start pulling out those forces. He essentially is saying to the American people hold on here, bear with me, we're going to get through this.
[Velshi:] Suzanne, so he was dealing initially with Iraq, with the pull-out of troops from Iraq, the end of combat. That, of course, has to involve Afghanistan by definition. So you heard the president talk about both of these but we really are covering the entire Mideast today because the president is holding several big meetings today ahead of tomorrow's face-to-face meetings between Benjamin Netanyahu and Mahmoud Abbas.
[Malveaux:] And he made that connection last night, essentially saying that this is all part of the same story here, providing peace, trying to get peace in the Middle East. So obviously, they're trying to jump-start the direct talks. They're going to be one-on-one meetings here at the White House. The president is going to be meeting with the principals. That would be the Israeli Prime Minister Benjamin Netanyahu, the Palestinian leader Mahmoud Abbas, also Jordan's King Abdullah, as well as Egypt's president Hosni Mubarak. Those will be one-on-one meetings. Then he's going to have a dinner at the White House with all four of them. All of this, as you mentioned, yes, Ali, before the real talks begin tomorrow. That's going to happen at the State Department, at the head of that Secretary Clinton. She has already met with the Israeli leader and she's giving a preview in terms of what the U.S. position when it comes to going in. Take a listen.
[Hillary Clinton, Secretary Of State:] We pledge to do all we can, always, to protect and defend the state of Israel and to provide security to the Israeli people. That is one of the paramount objectives that Israel has that the United States supports in these negotiations.
[Malveaux:] Another objective, of course, is taking a look at the situation and trying to establish a Palestinian state, a two-state solution. Kiran, Ali, you know, many administrations before, I've covered Bush as well as Clinton, have tried this and have failed. This is President Obama's attempt.
[Velshi:] Suzanne, thanks very much. We'll be in touch with you as this develops. It's a busy few days in Washington.
[Chetry:] Eleven minutes past the hour. Just in to CNN. There's another new twist in the accusation of rape against WikiLeaks Web site founder, Julian Assange. You may remember that Swedish prosecutors initially charged him and then revoked those charges. Well, they're confirming that the investigation will be reopened saying there is reason to believe that a crime has been committed. We're also learning that the investigation involving alleged molestation by Assange has also been extended. It was less than two weeks ago that the arrest warrant was issued, then hours later as the charges revoked, Assange has denied any wrongdoing. He said that he had been warned by Australian intelligence that there would be people trying to discredit him and the whistle-blower Web site. WikiLeaks, you may remember last month, published more than 70,000 secret military files about Afghanistan. U.S. officials at the time called it one of the biggest security breaches in U.S. military history.
[Velshi:] This story remains very interesting because Swedish police are just sort of giving out little bits of information, then they pull it back, and then they give out little bits of information. So we have no idea what the context of the story is which makes it very difficult for journalists to follow up and find out whether these are allegations or whether somebody is trying to muscle Julian Assange.
[Chetry:] Right.
[Velshi:] A lot of people very angry with him and his organization for coming out with those documents.
[Chetry:] And the fact that the Swedish prosecutors revoke the charges a few hours later
[Velshi:] Yes.
[Chetry:] sort of gave credence to his argument that it was, you know, that it was unfounded.
[Velshi:] Yes.
[Chetry:] But now, again, they're expanding it. So we'll continue to follow.
[Velshi:] And we'll have a live report on it in about 15 minutes or so. Coming up, a monster form on the move. Hurricane Earl is tearing across the Caribbean on a fast track for the U.S. east coast. Rob Marciano is keeping a close eye on Earl. He joins us live from Virginia Beach. Hi, Rob.
[Rob Marciano, Ams Meteorologist:] Hello, Ali. Yes, we're here where they're still plucking people out of the water from Hurricane Danielle and the rip currents and the waves that that storm generated. Well, hurricane watches are posted for this area and evacuations in some areas under way already. We'll have the latest forecast track on Hurricane Earl when the Most News in the Morning continues.