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Iraq Strategy Shift; Power Shift; Sailor Rescued; Iraq Strategy Shift; Gerri's Top Tips
Aired January 05, 2007 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: You are in the NEWSROOM.
HEIDI COLLINS, CNN ANCHOR: Shifting strategy, but first shifting personnel. Just minutes ago, President Bush naming a new director of National Intelligence, while putting the finishing touches on his Iraq plan. Live now to the White House and our correspondent Suzanne Malveaux.
Suzanne, we saw that live here.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, yes, Heidi, he just wrapped up. And what this really is showing us here is the sense of urgency, if you will, the president trying to get his new team in place before he publicly announces what he is calling a new Iraq strategy. We saw in the Roosevelt Room the president officially announcing the director of National Intelligence, John Negroponte, moving from his post into the State Department to become the deputy to Secretary Rice. Also his nomination of Mike McConnell, the former director of the NSA, National Security Agency, to take Negroponte's place.
And what really underscores how important these positions are, it's the president himself went to both of these men and asked them to accept these jobs. Very important at the State Department, the strengths from Negroponte, his experience when it comes to Iraq, a former U.S. ambassador to the U.N., a former ambassador to Iraq, that there is going to be a very strong diplomatic component in this so- called new strategy. He wanted somebody who really fit the bill, who could work well with Rice to make that happen.
Mike McConnell, we are told, intelligence experience. Of course, business experience. That is something the president also appreciated. But the fact that he used to work with Bob Gates -- Bob Gates, the new secretary of defense. He used to be the head of the CIA. That was at the same time that we saw this individual actually the head of the NSA.
So they all get along. They respect each other. And White House officials saying they think this is the kind of fit that is necessary to fill that diplomatic component which is going to be so key in this new strategy.
Heidi.
COLLINS: That's right. And we've been talking about it for a very, very long time now, the military solution, the diplomatic solution and how they just must go hand in hand. That being said, there's going to be some announcements made soon, I imagine next week, when we hear from the president about some changes at the top of the military.
MALVEAUX: Well, that's right. Top changes in the military as well. And what we think this really reflects is the notion here, what we are being told from sources from the Pentagon, not from the White House, is that the president is very likely to go ahead and sign off on a U.S. troop surge. Anywhere from 20,000 to 40,000 additional troops.
Those in the Pentagon who are now out were ones who did not want that troop surge. They were calling for less U.S. troops, more training with Iraqis. Those who are coming in seem to support this idea of a U.S. troop surge. So it underscores really what we're seeing here, the possibility of really a new approach to the Iraq policy.
Heidi.
COLLINS: We will all be watching very closely, as I know you will as well next week.
Suzanne Malveaux at the White House. Thank you.
Changes at the top before he unveils his Iraq plan. President Bush is shaking up the military leadership in the region. According to a high-ranking military source, the top U.S. commander in the Middle east, General John Abizaid, would be replaced by Admiral William Fallon. Fallon oversees U.S. forces in the Pacific. And according to senior military officials, Lieutenant General David Patraeus would replace General George Casey as top commander on the ground in Iraq.
HARRIS: Democrats in charge on Capitol Hill. The new Congress diving into work. And the first ever female House speaker weighing in on the president's plan for Iraq. Our congressional correspondent Andrea Koppel actually put that question to the speaker just moments ago.
Andrea, good morning.
ANDREA KOPPEL, CNN CORRESPONDENT: Good morning, Tony.
Well just days before President Bush is expected to announce that he supports a temporary surge in U.S. troops in Iraq, that he wants to increase troops between 20,000 to 40,000, I spoke exclusively with the new speaker, who left no doubt that if the -- just because the president supports it, that doesn't mean she does.
(BEGIN VIDEO CLIP)
KOPPEL, (voice over): Do you support a surge in U.S. troops in Iraq?
REP. NANCY PELOSI, (D) HOUSE SPEAKER: No. UNIDENTIFIED MALE: People say you're going to be a tough speaker, Mrs. Pelosi, does that . . .
(END VIDEO CLIP)
KOPPEL: Now while this is not a surprise, before she became speaker and was the minority leader, Ms. Pelosi left little doubt that she wanted U.S. troops to be withdrawn from Iraq as soon as possible. Nevertheless, this is the first day, the first full day that she's in power and making very clear that this is not going to be an easy ride for President Bush with Democrats in power here on The Hill. And she certainly went beyond the more nuanced comments that she had on Iraq last night.
(BEGIN VIDEO CLIP)
PELOSI: The election of 2006 was a call to change, not merely to change the control of Congress, but for a new direction for our country. Nowhere were the American people more clear about the need for a new direction than in the war in Iraq.
(END VIDEO CLIP)
KOPPEL: Now the reality is that Speaker Pelosi has already taken off the table the one, real means that Democrats could stop President Bush from moving forward with sending more troops to Iraq, and that is, of course, the power of the purse. She's taken that off the table, saying that the Democrats would not support withholding funds.
But, Tony, right now Speaker Pelosi is making -- also sending out no doubt that there is a new sheriff in town. That it's not business as usual. Yesterday she already got down to business. Democrats passing an ethics reform package. They expect to do more today. And, of course, the real legislating will get underway next week
HARRIS: Our congressional correspondent Andrea Koppel for us.
Andrea, thank you.
COLLINS: Wild weather. Chad Myers watching it for us, of course, here in the Weather Center. We have some tornado warnings in our area, right around here in Atlanta.
(WEATHER REPORT)
HARRIS: Louisiana residents in shock after tornadoes tear through the southern part of their state. Roofs were ripped off and mobile homes were heavily damaged. At least two people were killed, 15 others injured. One uplifting piece of news here, three children who were missing after the storm blew through have been found. One resident described what it felt like when the twister hit.
(BEGIN VIDEO CLIP)
SCOTT JONES, TORNADO VICTIM: We had some witnesses behind the store saying that they were coming -- the tornado's actually coming right directly to the back of the store. And then I guess when it hit some homes and things, it kind of took a hard left and then just went right around and across 90, destroying the power lines and everything.
UNIDENTIFIED MALE: What did it sound like?
JONES: You know, your normal freight train type thing, you know. It was just real loud. I had some employees inside and, you know, the first thing that popped in their minds was, just get in the store and, you know, and -- it happened quick, you know. It wasn't anything lingering around or anything. But it happened pretty quick.
(END VIDEO CLIP)
HARRIS: A state of emergency has been declared in four parishes. Today residents are being warned about the possibility of flash flooding.
COLLINS: A happy ending off the coast of Chile after a harrowing three days adrift at sea. CNN's Chris Lawrence is in Newport Beach, California, now where the family of Ken Barnes got the news that he had been rescued.
Chris, give us the latest.
CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Heidi, you know, right now he is on a private Chilean fishing vessel heading to shore. Will take about another day or two. And this rescue really came just in the nick of time. I mean his mast was destroyed, his engine was gone, his boat had started to take on a little bit of water and he was injured. And this is what happened earlier this morning when the family finally got the call that they had been waiting for.
(BEGIN VIDEO CLIP)
KEN BARNES: I'm on the fishing boat headed for Punta Arenas. And I'm OK. Everything's OK. And I should be there in about a day or two.
UNIDENTIFIED FEMALE: OK.
BARNES: Can you still hear me?
UNIDENTIFIED FEMALE: Yes. Can you please get some sleep?
He called us at 4:49 this morning from the sat phone and he said, he goes, I'm on the fishing vessel. I'm OK. I'm thankful. I'm just -- I'm excited now.
Can you keep trying to call us? Yes. Can you keep letting us know what the status is?
(END VIDEO CLIP)
LAWRENCE: Yes, Ken Barnes had set out in late October. He didn't plan to return until sometime between April and June. His original goal was to try to circumnavigate the world alone in his boat.
(BEGIN VIDEO CLIP)
TERYN BARNES, KEN BARNES' DAUGHTER: It's sad that he didn't make it all the way, but at least he tried his best. And he can't predict the weather. He was a good -- he's a good sailor and he was well prepared. You just can't predict the weather. And it's bad down there.
(END VIDEO CLIP)
LAWRENCE: Yes, this storm really knocked his boat around, did a lot of damage and really put him in danger for a few days. His family very, very anxious to actually see him again, which they will sometime in the next few days or so.
Heidi.
COLLINS: Boy, it's going to be a long couple of days, isn't it, Chris? I bet they are very, very excited.
LAWRENCE: Oh, yes. Oh, yes, for all concerned.
COLLINS: All right, thanks so much. Thank you very much. Chris Lawrence reporting for us today.
HARRIS: Shift in strategy. President Bush finalizing his new plan for Iraq. A behind the scenes look at the process from former White House insider David Gergen. He is in the NEWSROOM.
COLLINS: Also, it's as important to some soldiers as their weapons.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I carry my wedding ring, a bracelet my wife sent me.
UNIDENTIFIED MALE: (INAUDIBLE).
UNIDENTIFIED MALE: I carry a Bible, Psalms 91, a prayer to Saint Rafael (ph).
(END VIDEO CLIP)
COLLINS: Helping them make it through their mission in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Another terrorist tape said to be the voice of al Qaeda's number two man, Ayman al-Zawahiri. It urges militants in Somalia to wage an Iraq-style guerrilla war. Somalian troops, backed by Ethiopia, have been beating back Islamic militants for a week now and they plan to launch a major assault on the militant's last stronghold today. U.S. warships are patrolling the coast. The reported al-Zawahiri audiotape was released on Islamist websites.
COLLINS: Deliberations, consultations, President Bush putting the finishing touches on his new Iraq strategy. Some insight now on what's likely going on behind the scenes from David Gergen. He served as counselor to four presidents and is a professor at Harvard's Kennedy School of Government and has terrific insight on all of this.
David, nice to see you as always.
DAVID GERGEN, FORMER WHITE HOUSE ADVISER: Good to see you, Heidi.
COLLINS: We are hearing that the speech is going to be happening next week. And parts of it, though, are leaking out now, as you well know. Let's start with the personnel changes if we could. We've been hearing, of course, General David Patraeus is going to take over for General George Casey, and also Admiral Fallon in for General Abizaid. We have also heard from other military analysts saying you have to change the leadership, no matter what the plan change or the change of strategy may be.
GERGEN: I must tell you, Heidi, that it strikes me that the personnel changes the president's making are first rate. They are very welcome. He has reached out to people who are highly respected.
General David Patraeus is an outstanding Army general who will be going back for his third tour. One of the most promising people in the U.S. military, Admiral Fallon, very strong. And alongside them with these new changes, John Negroponte going to the State Department is really going to help with the diplomatic surge, which I think is going to be part of this package. It's not going to be just a military surge, but a diplomatic surge. And the State Department's been very shorthanded.
And so I think if you look overall at the personnel, you have to say very promising start. Has it come too late? Even if we put our best people out there, which we're now doing, has it come too late? Can this still be salvaged? But that's part of the issue on the personnel.
COLLINS: Any idea why -- it just sort of occurs to me now that because there has been so much discussion, you and I have talked about it many times before, that it's imperative to have this diplomatic solution, or at least some thoughts diplomatically before, or at least in conjunction with military strategy. Any possible reason why this decision would have been made or this announcement made today before the military announcement and change in command coming up next week?
GERGEN: Sure. I think it's part of a -- sort of a rollout, if you'd like. I think the administration is trying to get ahead of the curve a little bit and make sure that there is attention given to the quality of the people who are being named because there are such high quality. And it will soften the environment, if you'd like. I
t will make people a little more receptive to the speech itself, which is going to contain some controversial items, the best we can tell, you know what CNN is reporting. If there is this military surge from anywhere from 20,000 to 40,000 American troops, that's going to be very controversial.
But there's another piece of this that "The Wall Street Journal" is reporting today, and that is there's going to be a big increase -- the president wants a big increase in economic reconstruction money going to Iraq. And there are a lot of Democrats who are going to hold hearings saying the $20 billion that we spent so far has been money mostly down a rat hole. It's disappeared. There's a lot of corruption in Iraq. Are you really going to give that kind of money to Maliki and to his government?
Now if the president says, I want to give that money to Patraeus and his folks, do a lot of this, that may be more acceptable to the Congress. We'll have to wait and see how the proposals are structured.
COLLINS: Yes. And if, in fact, this recommendation does come from the president about a troop surge, we did just hear moments ago here on CNN from our congressional correspondent asking incoming speaker of the House, Nancy Pelosi, if she was in favor of introducing troop strength. She said flat out, "no."
GERGEN: Well, yes, well that's right. They're not in favor of it. The Democrats will have a hard time stopping the surge in troops because, as commander in chief, the president does have this authority. But they could stop extra economic aid.
In other words, if that's an essential part of the package, the Democratic Congress would have to approve that extra money. That is something. They do hold the purse strings. So, you know, that's one of the big questions here.
From an Army point of view, their hope is that they can go in, when they secure a part of Baghdad, for example, if they could quickly put in money and really show the locals that, if you go along with the coalition, with the Americans, you're actually going to get sewage systems, you're going to get water, you're going to get electricity, you're going to get new housing, then you might be able to convince the locals to be more open. But if -- you know, and the president's going to argue, I need the money for economics to make the military side work.
COLLINS: Yes, it might work better that way. And, David, we do always go to you for your insight because of these positions that you have held and for the behind the scenes type thoughts. Your thinking on who has President Bush's ear now? I mean are we still talking about neoconservatists?
GERGEN: Well, the neoconservatives have certainly had an influence here. After all, in the easterly thinking, a lot of the military commanders at the Joint Chiefs level, and indeed General Casey and General Abizaid, who are now on their way out, were very wary of this troop surge. The president's now sort of, you know, swept out that Abizaid-Casey team, putting a new team in place. So it's not clear. It looked like the neocons these new neocons like Frederick Kagan of the American Enterprise Institute, did have the president's ear, but it's not clear who inside is his chief counsel. Is it Dick Cheney still? Is it Condi Rice? Is it Steve Hadley? You know, frankly, this is pretty opaque. And one has the sense that the president himself is driving a lot of this.
COLLINS: All right. Well, we will continue to be watching all of it alongside you.
GERGEN: OK.
COLLINS: David Gergen, thanks again.
GERGEN: Thank you.
HARRIS: And, Heidi, we need to get back to Chad Myers in the severe Weather Center right now because storms are really popping in our neighborhood here in the greater Atlanta area.
(WEATHER REPORT)
COLLINS: Change of command. Word the president has tapped Admiral William Fallon to take over as head of U.S. Central Command. Our Kyra Phillips has followed his career. She joins us to talk a little bit more about it, coming up in the NEWSROOM.
HARRIS: And it is Friday, time for us to jump into the viewer e- mail bag with Gerri Willis because we have the smartest viewers watching the NEWSROOM each and every morning here.
Good morning, Gerri.
GERRI WILLIS, CNN CORRESPONDENT: Hey, Tony, good to see you.
Yes, we are answering questions, including when you're on the hook for fraudulent credit card charges. You won't want to miss that. It's next on "Top Tips."
(COMMERCIAL BREAK)
COLLINS: Let's go ahead and check the numbers now. If you really want to. Down 51 there on the Dow, resting at 12,429 or so. The Nasdaq also down 13. As we go into the weekend, maybe things will get better before the business day is through.
HARRIS: Looks like an opportunity to buy.
COLLINS: I mean, it's still above 12,000, so, I mean, you know, it's all relative.
HARRIS: Right. Opportunity to buy.
Look, she's taking e-mails, helping out. You got an issue? You've got a problem? Huh, huh huh? Our personal finance editor Gerri Willis answering your questions today. She is in New York. Gerri, good to see you. Should we dive in here?
WILLIS: Mr. Tony, let's get down to business.
HARRIS: All right. Brian from Texas writes, "I recently had several fraudulent charges on my credit card. When would I be responsible for the charges?"
WILLIS: Very good question. And there's good news. Most major credit cards have a zero -- yes, zero liability policy if someone misused your credit card without your knowledge. Now, you will be on the hook for a payment if you've already reported more than two instances of fraudulent charges within the year. Or if the bank thinks that you were negligent with your credit card or account statements. But in reality, in most cases, the bank will write off the fraudulent charges or they pursue reimbursement from the merchant in question. So you could be off the hook.
HARRIS: Like that. Like the sound of that.
WILLIS: Yes.
HARRIS: Our second e-mail comes from -- who you think this is. Is this Elie? Is this Elie? What do you think, Elie, in North Carolina?
WILLIS: I think it's - we believe it's Elie, yes. But she asks a brilliant question.
HARRIS: Yes. Here it is. "My dad is 68 years old and he is looking for ways to cut his tax bill." got some suggestions here?
WILLIS: Yes. Look, if your dad has an older house, he could benefit, on his taxes this year, if he upgrades the heating and cooling equipment, windows and doors, you can get tax credits for up to $500. And the beauty of tax credits, remember, $1 of credit saves $1 of taxes. He can also sock more money away into his IRA account, up to $5,000 this year. So a couple ideas there.
HARRIS: And we probably need to change those things out anyway so there's a real benefit here. Double benefit.
WILLIS: That's right. That's right.
HARRIS: OK. Jim from Arizona writes, "my wife and I are interested in long term insurance. What are some good sources to help us make the best decision?"
Gerri.
WILLIS: This is a tricky decision. But to get the basics, check out the Life and Health Insurance Foundations website at lifeline.org. Here you'll find out what you should know before buying this kind of insurance and where you can buy it and how old you should be when you buy it. Medicare.gov also has information on long term care insurance. And I've got to tell you, Tony, we got some great tips from your viewers. This one from Corina in Florida. She writes, "I've gotten e-mails stating I'm eligible for gift cards from stores. I opened one the other day and they requested my address and birthday. Add this to your list of scams," she writes. Isn't that great?
HARRIS: Yes. Yes, yes. Very, very good. Who was that? Corina in Florida.
Corina, thank you.
WILLIS: Yes.
HARRIS: Hey, we've got to have a moment here for you to tell us about the big "Open House" show coming up tomorrow.
WILLIS: That's right. Well, we have a regular 9:30 a.m. show in which we'll talk about 2007. And then at 2:00 in the afternoon on Saturday and 4:00 p.m. on Sunday, we have a special, "Mortgage Meltdown." We're going to talk about the rise in foreclosures across the country. It is a special edition of "Open House." Join us Saturday and Sunday, 2:00 p.m. Eastern Saturday, 4:00 p.m. Eastern Sunday.
HARRIS: We can't tell folks about it enough. Your team does a great job. And, oh, and by the way, you're pretty good on that show as well, Gerri.
WILLIS: Oh, Tony, you are so nice.
HARRIS: Have a great weekend there, Gerri.
WILLIS: Thank you.
HARRIS: Take care.
COLLINS: Personnel changes ahead of a major announcement on Iraq. President Bush this morning officially named his choice to head the nation's top spy agency. Mike McConnell is his pick to be director of National Intelligence now, replacing John Negroponte, who was tapped to become deputy secretary of state.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Negroponte leaves big shoes to fill as the director of National Intelligence. The DNI has become a core part of our national security team. The DNI determines the national intelligence budget, oversees the collection and analysis of intelligence information, ensures that intelligence agencies share information with each other, and creates common standards for intelligence community personnel. The vigilance of the DNI helps keep the American people safe from harm. And Mike McConnell has the experience, the intellect and the character to succeed in this position.
COLLINS: And the next step, of course, both positions must be confirmed by the Senate.
Good morning, everybody, I'm Heidi Collins.
HARRIS: And I'm Tony Harris, 10:30 eastern, 7:30 a.m. pacific. Good morning, everyone. President Bush briefing top lawmakers on his new Iraq strategy today. The plan includes new leadership for troops in Iraq, shakeup in the NEWSROOM.
COLLINS: Troops with trinkets. A look at what U.S. soldiers bring along on their missions. We'll have that coming up in the NEWSROOM.
And a new sitcom with a new twist.
(BEGIN VIDEO CLIP)
What's the charge? Flying while Muslim?
(END OF VIDEO CLIP)
COLLINS: "Little Mosque on the Prairie." A real show that could really touch a nerve. Tune in for this one, coming up right here in the NEWSROOM.
(COMMERCIAL BREAK)
COLLINS: Putting the finishing touches on a new Iraq strategy. President Bush meeting with key senators today to discuss his Iraq plans. Sources say he may order another 20 to 40,000 U.S. troops to Iraq. The president says he is still weighing his options, but he's just days away now from unveiling his new strategy.
(BEGIN VIDEO CLIP)
BUSH: I will be ready to outline a strategy that will help the Iraqis achieve the objective of a country that can govern, sustain and defend itself sometime next week. I've still got consultations to go through. Whatever decision I make, though, will be all aimed at achieving our objective.
(END OF VIDEO CLIP)
COLLINS: The president held a nearly two-hour videoconference yesterday with Iraq's prime minister. He expressed confidence in his leadership.
Military moves, going out, retiring General John Abizaid. Coming in, Admiral William Fallon. That's the word from a high ranking military source, anyway. And if confirmed Admiral Fallon would be the new man overseeing the wars in Iraq and Afghanistan. CNN's Kyra Phillips has followed his career and joins us now. So, I understand that this appointment came as a bit of a surprise to the admiral.
KYRA PHILLIPS, CNN ANCHOR: Yeah it was, I think it kind of caught him off guard and I think it surprised a lot of people in the navy, too. I mean this is the first time that this position will be given to a navy admiral if, indeed, he's confirmed by the Senate. If you look at what he's been doing as head of the pacific command, I mean you know about -- a lot about naval aviation and you have connections to that, but by being in charge of the largest area of operations, he is in charge of military forces all the way from California to India. So his job is to build relations -- it's an amazing responsibility. He has to build relationships with India, Malaysia, Singapore, Thailand, China, Brunei, Japan, South Korea, think about that. And he wants to get everybody on board to become allies in order to prevent more acts of terrorism, to protect the high seas, to protect international trade. It's an overall part of this new strategy obviously.
COLLINS: But I do think sometimes it's sort of a misconception that if you are a navy man, a waterman as they sometimes say, then you just know naval operations. But, boy, at this level, he has commanded an entire region, he has lots of experience and they are all trained sort of joint operations. He knows marines, he knows air.
PHILLIPS: Key phrase, joint warfare. He is in charge of all the military branches in that area. And that's the key to beating terrorism and to winning a war is having a good relationship with the navy, the marines, the coast guard, the air force. Every single part. And that's his specialty. So, for example, he's been doing exercises overseas, North Korea, big threat, missile defense. What has he been doing? He's been building relationships with Japan and doing these exercises to try and prevent any type of attack from North Korea into Japan, into the waters of the United States. So it makes sense that they would want a joint guy in that position, someone who understands and has a relationship with all these various countries.
COLLINS: Yes. I know you know him personally. Did he want the job? What did he say about that?
PHILLIPS: This is a huge honor, I mean it's a big deal to take over Centcom. I think he has a lot on his hands, he realizes that. This is going to be a tremendous challenge. But what an amazing thing for the navy. It says a lot about the importance of naval aviation. And think about operation Iraqi freedom, the war in Afghanistan, how did all that begin, Heidi? With the air campaign, with strike fighters dropping bombs. These guys and women helped protect troops on the ground, so if the president is going to come forward and say I have a new strategy, we're going to put more troops on the ground, they're going to need that air power, they're going to need the carriers out there in the water keeping an eye on Iran. Why are there two carriers heading out to the region now? To keep an eye on Iran.
COLLINS: We talked about that the other day.
PHILLIPS: There you go and that all involves navy.
COLLINS: Tell me quickly though, what kind of a man is he?
PHILLIPS: He's got a very strong character. He knows what he wants, he knows how to work with people. He understands politics, and he understands military. And you have to have both if --
COLLINS: There has to be a balance.
PHILLIPS: It is. You have to have a balance. He's a good person, and I've known him for a number of years. And he's got quite a reputation in the cockpit I must say, it goes all the way back to Vietnam, 1300 carrier landings.
COLLINS: What's his call sign?
PHILLIPS: Fox.
HARRIS: Nice.
COLLINS: All right, we'll remember that.
PHILLIPS: The silver fox.
COLLINS: Very good. All right, Kyra Phillips, thanks for that, appreciate it.
PHILLIPS: You bet.
HARRIS: New Congress, new business, the democratically controlled House focusing on pocket book items and ethics, this as new House Speaker Nancy Pelosi weighs in on word the president may send thousands more troops into Iraq.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Do you support a surge in U.S. troops in Iraq?
PELOSI: No.
UNIDENTIFIED MALE: People say you're going to be a tough speaker Ms. Pelosi, does that --
PELOSI: No, strong.
(END OF VIDEO CLIP)
HARRIS: Democrats have been pushing to get troops out of Iraq, the president plans to announce his new strategy for Iraq some time next week.
(WEATHER REPORT)
COLLINS: Want to get over to the NEWSROOM now where Betty Nguyen is with an update on the situation that happened about a year ago. Betty, a homeless man beaten to death and prosecutors have made some sort of decision.
BETTY NGUYEN, CNN ANCHOR: Yes, the prosecutor has decided not to seek the death penalty in this case. Now it happened on January 12, 2006, about a year ago as you mentioned. Here's the video, we all remember it, just so shocking, these three teenagers beating a homeless man with a baseball bat. Prosecutors again say they're not going to seek the death penalty and here's why. Thomas Daugherty is the 17-year-old who is accused of landing the fatal blows. Well because he was 17 he was not eligible for the death penalty. The two other teenagers involved, yes, they were 18 at the time but because they are involved in lesser penalties, they didn't have -- a degree of, in this beating as the 17-year-old did, they were just kind of an accomplice to this crime, they will not get the death penalty because of this, at least not be prosecuted for that. Now here are the charges. The three teens have been charged with first degree murder and attempted murder. And again, there was this talk about seeking the death penalty in this case, and today we have learned the prosecutor is not going to seek the death penalty against these three teenagers. But again, Heidi, just that video, just sitting there and watching it, it's been a year since, it's still shocking to me.
COLLINS: Yeah I remember seeing it. And just to make sure I understand, the man who was accused of the fatal blows was 17 at the time. The other two accomplices, if you will, were 18 at the time, but because they were not accused of the actual fatal blows will also not --
NGUYEN: Yes, they participated as they are calling it to a lesser degree. Because of that, they will not get the death penalty, at least prosecutors won't seek it against them.
COLLINS: It is a very interesting legal principle, that's for sure. All right. Betty Nguyen, thank you.
HARRIS: Well, he's got a bat, and he's not afraid to use it.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Bam! Just that much, I got him.
(END OF VIDEO CLIP)
HARRIS: Bam! It was the bam! Robbers may think twice about sticking up this store. That story ahead in the NEWSROOM.
COLLINS: Right place, wrong time for a Florida woman. Look at this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I just felt a sharp pain and then I grabbed my shoulder and I noticed I was bleeding, and then I pulled my blouse back and I noticed there was a big hole so I realized it was a gunshot.
(END OF VIDEO CLIP)
COLLINS: A gunshot, but you won't believe what actually saved her life. Stick around for this one, coming up next in the NEWSROOM.
SUSAN LISOVICZ: I'm Susan Lisovicz at the New York Stock Exchange where stocks are selling off despite a surprisingly strong jobs report. I'll explain why when NEWSROOM continues. You're watching CNN, the most trusted name in news.
(COMMERCIAL BREAK)
HARRIS: What a headline this one is. Ready? Saved by the bra.
COLLINS: Been waiting all day for that.
HARRIS: Odd, to be sure. True, absolutely.
(BEGIN VIDEO CLIP)
DEBBIE BINGHAM, BRA DEFLECTED BULLET: I call it the wonder bra because, I mean, it's a wonder, you know, that it caught -- it caught the bullet.
UNIDENTIFIED FEMALE: Victoria Secret, whoever made it, thanks a million.
(END OF VIDEO CLIP)
HARRIS: Well, holding the bra is Betty Bingham. Bingham and several others were outside a St. Petersburg, Florida home New Year's Eve. Out of no where she was hit by a .45 caliber bullet. The speculation, revelers firing into the air. The bullet hit the left shoulder clip on Bingham's $6 bra. She required a few stitches, that's it, that's all that was required. Bingham's friends says she was saved, as you heard there a moment ago, by a miracle bra. Not body armor but it sure did the trick.
COLLINS: We have been hearing it for a while now, the economy is slowing -- I don't mean to smile when I say that, but a government report this morning shows the economy might be on the right track after all. Our Susan Lisovicz has the story now for us from the New York Stock Exchange. Hi Susan.
LISOVICZ: Hi Heidi and Victoria Secret shares are up by the way, up half a buck.
COLLINS: I was just going to ask, I knew you would have something, all right.
LISOVICZ: Ok, but we have some more serious things to discuss, at least concerning many more millions of Americans. And that is the jobs report. It's something we can all understand. Of all the reports we get each month, none is more important than the jobs data. Last month, employers stepped up hiring, adding 167,000 jobs, which is far more than expected, and job gains in October and November were also revised better than previously thought. Separately, the unemployment rate held steady at 4.5 percent. So for all those who were worried about weakness in the economy this certainly comes as welcome news. The labor market seems to be strong and is weathering what we can certainly see is a slump in housing and manufacturing. Heidi?
COLLINS: So, what does this actually mean for workers and for the economy as a whole on a bigger picture? LISOVICZ: You know when you look at it, it means we're doing pretty well, Heidi, right. Jobs are plentiful, especially in the services sector. Industries ranging from banking to restaurants and that is U.S., Inc. Most of the economy is made up of service businesses. It was also good news on wages, hourly pay up 4.2 percent from a year ago. Now, while that's good news for workers, it's certain to raise flags about inflation. There's been lots of speculation lately about whether the Federal Reserve can actually cut interest rates as early as this spring or summer. Today's numbers, good news on main street, not so welcome news on Wall Street because it could lead the central bank to keep holding rates steady as it has done for the past four -- could actually even raise interest rates if policymakers are worried about a tick up in inflation.
An increase in wages could spur consumer spending but could also heat up inflation. So that's what a lot of investors are focusing on this morning. Also weighing on sentiment, an earnings warning from cell phone maker Motorola. Shares are losing nearly 8 percent, that's bringing down Texas Instruments, Qualcomm, Nokia as well, a lot of telecom stocks. So, let's take a look at the big board. The Dow Industrials right now down 53 points or about a half a percent lower, the NASDAQ composite down 15 points or about two thirds of a percent. Oil prices holding steady today after tumbling more than $5 a barrel in the past two days alone. So, under $56 a barrel. That's good news as well. That's the latest from Wall Street, Heidi and Tony, back to you.
COLLINS: All right, terrific. Thank you, Susan Lisovicz.
LISOVICZ: You're welcome.
HARRIS: It's as important to some soldiers as their weapons.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I carry my wedding ring, a bracelet my wife sent me.
UNIDENTIFIED MALE: Archangel.
UNIDENTIFIED MALE: Psalms 91, a prayer to St. Rafael.
(END OF VIDEO CLIP)
HARRIS: Helping them make it through their missions. Some keepsakes in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Looking at you, you are looking at me, so here's the question. Are you feeling lucky? The corner store is run by -- stay with me, Heidi. Stay with me on this, I'm interpreting here.
COLLINS: I'm keeping my fingers crossed.
HARRIS: Hoping for the best, hearing the worse. The corner store, run by a couple of geezers. So go ahead, make their day.
(BEGIN VIDEOTAPE)
JOHN RAGONESE, FOUGHT OFF ROBBERS: Stay over there by the door, man. I went wham! And just that much, I got him. I almost got him.
RAY BREWER: Seventy-eight-year-old John Ragonese says he always keeps a bat close and last night it came in handy. Around 10:30 last night, two men entered his store.
RAGONESE: They both had like long clubs.
BREWER: And they were wearing disguises.
RAGONESE: They were all covered up, their whole face. You couldn't even see nothing except two eyes, that's all.
BREWER: In the store with Ragonese at the time was his wife, Margaret. When the two men demanded money, they both sprang into action.
RAGONESE: I went after them. I had to. I had no choice.
MARGARET RAGONESE, WIFE: I got my cane and I was hitting them.
BREWER: The two men fled out of the store and over a nearby wall without getting any money. Police say that while Ragonese's actions may have endangered him he certainly has the right to protect himself.
SGT. MAUREEN TESSIER, MANCHESTER, N.H. POLICE: It's difficult to put yourself in his position. Certainly confronting individuals can put yourself at risk but obviously he made choices at the time that he felt was appropriate.
BREWER: While the bat did the job this time, Margaret Ragonese's concerned that it may not be enough to ward off future attacks. So she's planning some other steps.
M. RAGONESE: I'm going to go to the police department and start learning how to shoot a gun. I'm serious about that.
BREWER: Meantime, her husband has some words for those robbers who think he might be an easy target.
J. RAGONESE: You're going to get nothing.
(END OF VIDEOTAPE)
HARRIS: I will take you, man. I will -- make me with my bat. Ray Brewer with that report from our Manchester, New Hampshire affiliate there.
COLLINS: Very good story.
Moving on now though. President Bush briefing top lawmakers on his new Iraq strategy today. The plan includes new leadership for troops in Iraq. Shapeup in the NEWSROOM.
HARRIS: How about this, a new sitcom with a twist.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: What's the charge? Flying while Muslim?
(END OF VIDEO CLIP)
HARRIS: "Little Mosque on the Prairie." A real show that could really touch a nerve. Open your eyes, maybe your mind, tune in. Ahead in the NEWSROOM.
(COMMERCIAL BREAK)
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