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American Morning
Florida Votes: Critical Contest for GOP; Bush Pushes Stimulus Plan on the State of the Union Address; Fed Meets Today: May Cut Interest Rates; Floridians Key Role: What's on Voter's Minds?
Aired January 29, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: And welcome. It is Tuesday, certainly a big day in presidential politics, January 29th. Welcome to a special edition of AMERICAN MORNING. I'm Kiran Chetry in New York. Hey, John.
JOHN ROBERTS, CNN ANCHOR: And good morning to you. I'm John Roberts here in Winter Park, Florida. I'm at Bakely's (ph) restaurant this morning. It's still a little bit early, and nobody has arrived yet. But we do expect people will be trickling in this morning, looking for some breakfast, looking to talk a little bit of politics.
The polls here in Florida open in about an hour for today's primaries. On the Democratic side, the polls show Hillary Clinton is heavily favored to win the state, and she needs the victory after Barack Obama scored a huge win in South Carolina, even though for the moment at least, it would be a victory in name only because Florida was stripped of its delegates for going early.
On the Republican side, this could be a make or break state for Rudy Giuliani. He has been pretty much living in this state over the past months skipping the earlier contests, and now he's an underdog. We'll ask Rudy Giuliani about the future of his campaign if he doesn't win today's primary, when he joins us live. That's coming up in our 7:00 a.m. hour.
Florida is a crucial swing state and today's hotly contested primary could reshape the Republican race for the presidential nomination. Frontrunners John McCain and Mitt Romney are neck-and- neck in the polls. The winner gets the big boost heading into next week's Super Tuesday showdown. CNN's Mary Snow is live in Tampa, Florida, for us this morning with the latest on all of this. Good morning, Mary.
MARY SNOW, CNN CORRESPONDENT: Good morning, John. Fifty-seven delegates are at stake for the Republican candidates. The stakes are high and the fight is intense.
(BEGIN VIDEOTAPE)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Veto every single one.
SNOW (voice-over): Lock in a tight fight, Republican presidential hopefuls Senator John McCain and Mitt Romney duked it out as they made their final pitches in Florida. MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Senator McCain is noted for three major pieces of legislation. I think all of them were badly flawed.
SNOW: Romney took aim at McCain's support of legislation on illegal immigration, campaign finance reform and climate change. McCain fired back saying as Massachusetts governor, Romney supported the same policies he's now criticizing.
MCCAIN: You know, I really -- one thing I think we should really give Governor Romney credit for, he is consistent. He has consistently taken both sides of any major issue. He has consistently flip-flopped on every issue.
SNOW: Romney has made the economy his driving issue, touting his own business experience while trying to portray McCain as not having the know-how on the economy.
ROMNEY: I frankly can't imagine how you can have a president of the United States who doesn't understand how the economy works.
SNOW: Senator McCain has made national security his big issue, touting his military experience.
MCCAIN: And I didn't manage for profit. I led for patriotism.
ANNOUNCER: Rudy Giuliani!
SNOW: Enter Rudy Giuliani who's in a different fight, one for his political life. He, Mike Huckabee and Ron Paul round up the Republican race here. In a final pitch to gain much needed support, Giuliani seized on the sniping by his rivals.
RUDY GIULIANI (R), PRESIDENTIAL CANDIDATE: And our message is a positive message. Our message is not name calling. Our message is not negative campaigning. This is too important.
SNOW: Giuliani has made national security and tax cutting big themes here, but he also made Florida his big test and took a back seat in early contests.
GIULIANI: If we win in Florida, we're going to win every place else. Florida is going to lead the way. Thank you.
(END VIDEOTAPE)
SNOW: And there enlies Rudy Giuliani's risky gamble. He's been betting on winning Florida and launching into Super Tuesday. Despite the fact that he's been running behind in the polls, yesterday he was saying he's confident that he'll pull out a surprise and win here -- John.
ROBERTS: On his campaign plane yesterday, Mary, he said he's confident that he is going to win but he also made the pronouncement that whoever wins Florida is going to go on to win the nomination. What does the flip side of that mean for Rudy Giuliani? What happens if he loses? What does he do going forward?
SNOW: Yes. You know, that's one thing that he really does not want to answer. He says he's not entertaining any thoughts about not winning here. But I asked him yesterday, what happens? Where does he go next? And he said that he will be meeting with his staff tonight after the primary results. He says he does plan to go to CNN's debate in California on Wednesday. But, of course, a big question mark because he has been banking everything on Florida and then launching into Super Tuesday. And one big question, too, is will he have enough money to keep going if he does not win here?
ROBERTS: Now, well, we'll see how he does today. Mary Snow for us this morning in St. Petersburg. Mary, thanks.
Senator Hillary Clinton will make a stop in Miami today after the polls close. Her staff says she is not campaigning there. She just wants to thank her supporters. The candidates promised the Democratic Party that they would not campaign in Florida after it moved its primary up to earlier than the February 5th cut off.
And we are on the road until Super Tuesday talking with voters and candidates about the issues to help you choose a president. From here in Florida we head across the country to southern California for CNN's back-to-back debates with Democrats and Republicans. The Republicans go on Wednesday night in Simi Valley at the Reagan Library, and it will be the Democrats at the Kodak Theater on Thursday.
More from Florida coming up. But right now, let's go back to New York where Kiran's got some more news. Good morning, Kiran.
CHETRY: Hey, John. Well, yes, the State of the Union. President Bush using his last State of the Union Address to push Congress to act quickly on his $150 billion economic stimulus package.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Country -- there is a concern about our economic future. In the long run, Americans can be confident about our economic growth.
(END VIDEO CLIP)
CHETRY: Ed Henry is live at the White House this morning with more for us. Hi, Ed.
ED HENRY, CNN CORRESPONDENT: Well, good morning, Kiran. What was striking to me is that this is a president who had previously used this very stage to talk very dramatically previously at the State of the Union about an axis of evil and build the case for war in Iraq. It also unveiled a very dramatic domestic initiative, Social Security reform. But last night, there really was nothing new and bold and that seemed to be a nod that the fact that his megaphone is not quite as loud. You could see people like Senator Hillary Clinton, Senator Barack Obama getting some attention from the cutaway shot. That whole presidential campaign obviously overshadowing this president a bit. So what he did was turn to the two issues that really may define his legacy. Iraq, overseas and the economy here at home. As you mentioned, he really tried to reassure Americans and he tried to make the case that he could work with Democrats to try to prevent the U.S. from sliding into recession. But he also had a warning for Democrats about not slowing the stimulus package down.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Last week, my administration reached agreement with Speaker Pelosi and Republican Leader Boehner on a robust growth package that includes tax relief for individuals and families and incentives for business investment. The temptation will be to load up the bill. That would delay it or derail it and neither option is acceptable.
(END VIDEO CLIP)
HENRY: Senate Democrats yesterday said the Democrats already started adding provisions like unemployment compensation. Republicans on the Hill warning that that could delay getting relief to Americans who are hurting right now, and the Democrats may pay a political price for that -- Kiran.
CHETRY: How about Iraq? It didn't seem to be much of a change in what he's been saying recently about what to do with that country.
HENRY: Right. Not a change from recently, but a big change from a year ago in the State of the Union. The president had some good news to talk about. If you remember, he was very much on the defensive last January trying to defend that controversial surge policy. You had Democrats at that point a year ago lining up to start bringing up votes to try to change that policy. Instead, what happened is Democrats lost vote after vote as you know.
The president now, last night, had some good news to tout about security gains. But, obviously, he also still has a challenge. There has not been a lot of political reconciliation by the Iraqi government and even last night as the president talked about bringing home 20,000 U.S. troops, Democrats pointed out we still have about 140,000 U.S. troops on the ground in Iraq. So that part of his legacy still unsettled -- Kiran.
CHETRY: Ed Henry for us at the White House this morning. Thanks so much.
HENRY: Thank you.
CHETRY: Well, after the president delivered his speech, the Democrats responded. Kansas Governor Kathleen Sebelius urging the president to boost health coverage for children. She said the economic stimulus package is a good, "first step," showing Republicans and Democrats can work together if they try.
(BEGIN VIDEO CLIP) GOV. KATHLEEN SEBELIUS (D), KANSAS: If Washington can work quickly together on a short-term fix for families caught in the financial squeeze, then we can work together to transform America. We know that caring for our children so they have a healthy and better start in life is what grown-ups do. Governors in both parties and a large majority of the Congress are ready right now to provide health care to 10 million American children as a first step in overhauling our health care system.
(END VIDEO CLIP)
CHETRY: House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid issued a joint statement criticizing the president's speech, saying "the status quo won't do" -- John.
ROBERTS: Kiran, thanks. Much of the president's State of the Union Address focused on the economy. Last night, Anderson Cooper spoke to leading Republican candidates John McCain and Mitt Romney about what they thought of the president's plan to stimulate the economy.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: We should pass it quickly, and I worry about the Senate adding billions of dollars worth of pork in it. But I think time is very important right now to get it done.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I'd also lower the corporate tax rate, getting corporations to invest more in this country and to stay in this country. These kinds of features would make a difference. And finally, one more thing, I think people 65 and older should not have payroll taxes taken out of their wages.
(END VIDEO CLIP)
ROBERTS: Well, both candidates agreed that more can be done to help out the failing U.S. economy -- Kiran.
CHETRY: We're in "Financial Security Watch" now. And Monday's rally on Wall Street having a ripple effect around the world. Japan's Nikkei index closed up nearly three percent while Hong Kong closed up almost one percent. Both of Asia's biggest indexes tumbled Monday over rising recession fears here in the U.S.
Also, members of the European Union are gathering today. They're going to be talking financial strategy as well. British Prime Minister Gordon Brown, France's President Nicolas Sarkozy and German Chancellor Angela Merkel are all meeting in London, and they'll be joined by the Commissioner of the EU and by Italy's lame duck prime minister as well. The idea to come up with ideas to keep Europe steady in the wake of all the recent market ups and downs.
Now, if you're looking to borrow money or to pay off your mortgage, more relief may be on the way. The Fed is meeting later today and could yet again, cut rates by tomorrow. Ali Velshi is live at the Chicago Board of Trade this morning with a little bit. Tell us why you're there, Ali.
ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Hey, good morning, Kiran. I'm on a very empty floor of the Chicago Board of Trade right now. It's only 5:00 in the morning here in Chicago. But within two hours, this place will be packed and this is going to be one of the busiest weeks for your money. It starts right now.
Let's talk about numbers that have just come out about foreclosures in 2007. For the whole year, for 2007, foreclosures in the United States were up 75 percent. Now, as you know, foreclosures don't always result in people losing their home. It's the beginning of the process all the way to the end, but look at the number of people in America who lost their homes. More than 400,000 homes were lost in 2007 to foreclosure.
California had the biggest number, followed by Michigan and then Nevada. But it is a big number, 400,000 of those. Now, what can be done about it? We've seen this economic stimulus package being proposed. We've seen the Feds slash rates, a surprise rate cut one week ago. Well, tomorrow, we are expecting sometime today or tomorrow, but by 2:15 p.m. Eastern tomorrow, we are expecting another rate cut by the Fed.
If the Fed cuts rates again, what will that do for you? Well, it will lower the prime rate. Right now, the Fed rate is at 3.5 percent. That means the prime rate is at 6.5 percent, and your loans are connected to that. It will probably lower fixed mortgage rates, too. That's why I'm at the Chicago Board of Trade. That's where those are traded, and that will probably help the economy. But you will see that dollar sink again, and you'll see inflation concerns again. I will be here for the next two days following Fed and trading action and reporting to you on money matters -- Kiran.
CHETRY: All right. Ali Velshi live for us in Chicago this morning. We'll check in with you throughout the morning. Thanks -- John.
ROBERTS: Coming up at 13 minutes after the hour now. Kiran, a perilous plunge. A Miami cab driver takes a dive driving his taxi right over the side of an overpass. We'll show you what happened.
Plus, the fight for Florida. It is the biggest battleground yet for the Republican candidates, and it could be a make or break situation for some. We'll talk about some of the big campaign issues facing voters ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: The big Florida primary is today. The polls open in just about 45 minutes' time here. It's a big day for the Republicans. It could be make or break for Rudy Giuliani. It's also an interesting contest for the Democrats and that they were penalized. All the delegates taken away because they went before the February 5th date. But it's important in name as well. I mean, even if these delegates don't eventually get reinstated before the Democratic convention, it's an important -- at least symbol here for the Democratic Party. Scott Maxwell is a columnist with the "Orlando Sentinel." He joins us this morning. So, just how important is it for both sides here, Scott, given the fact that half of the Republican delegates were stripped because they went early and all of the Democratic delegates were stripped?
SCOTT MAXWELL, COLUMNIST, ORLANDO SENTINEL: Right. Well, as you've said, and I think everybody knows by now, for Rudy Giuliani, it absolutely is make or break. And these aren't any sort of litmus test that guys like you and me are putting on Rudy Giuliani. These are right out at his mouth -- words out of his mouth when Iowa and New Hampshire, when Iowa is practically having as good a showing as he was and those are final caucuses.
People said, where are you, what are you doing? He said I'm putting everything on Florida. He can't really back that truck up at this point in time. So if he doesn't do well here, and it's not looking like he's leaving, I think that may be we hope to start spreading the news that New York candidacy is over.
ROBERTS: And his latest -- the latest polls, he's 11 points behind the leader.
MAXWELL: Right.
ROBERTS: Of course, there's a margin of error in there as well, so it might not be quite so bad. But what happened to him?
MAXWELL: Right.
ROBERTS: Because, I mean, he was the de facto winner here for such a long time.
MAXWELL: Well, and he's spent a ton of time down here also. But I think it was when Joe Biden who said every sentence Rudy Giuliani says has a noun, a verb, and the word 9/11 in it.
ROBERTS: Yes.
MAXWELL: After you get passed that, I think Floridians are saying what else? Because he did come down here and the other thing that was unfortunate for him is that the issues shifted more from being simply about the war in Iraq and terrorism to the economy in Florida.
ROBERTS: So, what is the else here as you put it? What are Florida voters looking for from these candidates?
MAXWELL: I think it's absolutely the economy. That's the case nationwide. But here in Florida, the housing bubble has hit as hard as anywhere. Foreclosures are at a high. And we're not talking just foreclosures about people who scraping, you know, to make ends meet. These are people who are living in $300,000, $400,000 houses that got these mortgages they couldn't really handle. They imploded. The economy is really a big deal here. And if it's not impacting you personally, it's impacting a neighbor on your street, even in, you know, upper scale neighborhoods. They're looking for economy fixes. I think it's part of why Mitt Romney's campaign has done a little bit better on that.
ROBERTS: Yes. Yes. A new report out just today shows there was 165,000 foreclosures in the state of Florida last year. That's second in the nation.
MAXWELL: Right.
ROBERTS: You mentioned Mitt Romney. But who do you think is the candidate best positioned here in the sunshine state to attract voters' attentions on both sides?
MAXWELL: If I had to put money and I'm willing to put money on almost anything nowadays, I would probably put money on John McCain. He has been -- well, he is the only guy who's really been a constant in this thing since before the campaign began. You know, you've had Mitt Romney who had one position that worked really well for him until he needed to take another.
ROBERTS: Yes.
MAXWELL: But McCain's been the same. And he hasn't always made everybody happy -- his positions -- but he's been the same. So last week --
ROBERTS: Consistency counts for something.
MAXWELL: Absolutely.
ROBERTS: But what about on the Democratic side?
MAXWELL: On the Democratic side, that's a fascinating thing. I think you have to give it to Hillary. And part of the reason you have to give it to Hillary is because she hasn't been here. Most everywhere, look across the nation, she was ahead leading Obama.
ROBERTS: Yes.
MAXWELL: But then as soon as people got to meet both candidates, they went for Obama.
ROBERTS: Now, she agreed not to campaign here.
MAXWELL: Right.
ROBERTS: She is coming tonight, though, to say thank you...
MAXWELL: Right.
ROBERTS: ... to his supporters and she's also pushing to have the Democratic delegates reinstated before the Democratic convention. I mean, is that sort of in fact the way of campaigning here?
MAXWELL: Oh, it's absolutely the way of campaigning. And the way to reinstate the delegates, you better believe it, she thinks she's going to win.
ROBERTS: Yes.
MAXWELL: That's why she's been getting Obama to promise to release the delegates no matter what because it looks like she's going to take these. Now, I think, she knows that it's served her very well that Obama, who's got sort of a charismatic, lightening presence, it served her well that he has not been down here to meet voters, which is why I think he and the others really messed up by agreeing to that in the first place.
(CROSSTALK)
ROBERTS: Well, we'll find out soon how it goes. Scott Maxwell from "Orlando Sentinel," thanks for being with us this morning.
MAXWELL: Absolutely. Thank you. My pleasure.
ROBERTS: It brings us to our "Quick Vote" question. Do you believe on both sides, Republican and Democrat, that all of the delegates in Florida should count? Cast your vote, CNN.com/am. We'll tally up the votes. We'll bring you our first results coming up at our next half hour here at AMERICAN MORNING. But right now, back to New York, and here's Kiran.
CHETRY: All right. John, thanks. Well, over the edge, a Miami cab driver survives a dangerous plunge off the side of a highway overpass. We're going to show you what happened next coming up on AMERICAN MORNING.
Also, lots of interesting things pop up on eBay. We'll tell you why a New York librarian is in trouble for what he tried to sell on the Web site. That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Coming up now at 23 minutes after the hour, and more news from the sunshine state of Miami. A cab driver survives a frightening fall. Police say the driver was speeding and fishtailing just before his taxi plunged 15 feet off of an overpass in Miami. He has some pretty serious injuries but is expected to be OK. He was cited for careless driving and exceeding a safe speed limit -- Kiran.
CHETRY: Wow. When you take a look at that car, lucky.
Well, he had access to a treasure trove of historic artifacts. Now, there is a New York archivist and he's charged with stealing from the state library then trying to sell the items on eBay. Our Veronica De La Cruz has that story and more on our AM online this morning. Hey, Veronica.
VERONICA DE LA CRUZ, CNN CORRESPONDENT: Hey, good morning to you. It's always OK to sell things on eBay when they belong to you.
CHETRY: Yes. DE LA CRUZ: Not so much when they belong to others, especially the company you work for. You know, state officials say Daniel Lorello began the crime spree to pay off some bills, and among the items he supposedly stole, a $3,000 Davy Crockett Almanac, and its 1823 letter from former Vice President John Calhoun. Lorello began working at the New York State archives in 1979. He's been placed on administrative leave from his job, which, by the way, pays more than $71,000 a year.
And a new cell phone designed for the vision impaired will hit stores next month. It's loaded with software that turns text on photograph documents into speech. Users can scan things like restaurant menus or currency. A few seconds later, the device will audibly say what was scanned.
(CROSSTALK)
CHETRY: That's pretty neat.
DE LA CRUZ: So that's a pretty neat gadget. Yes. This is the first time the software is being incorporated into a cell phone carrier, but it comes with a price. The phone which is made by Nokia will cost about $500. The software, an additional $1,500, but not bad because you know, it's definitely a pretty neat gadget.
All right. One more question for you, Kiran, do you think that the Fed is going to be cutting interest rates tomorrow?
CHETRY: People are wondering whether or not they're going to go for it.
DE LA CRUZ: I've got this great Web site to show you. You can now test your news forecasting skills on this new Web site. It's called hubdub.com. The site lets people bet on the outcome of ongoing news stories. If you sign up, you get $1,000 hubdub dollars to start. It's all for fun. There is no real money exchanging hands here.
Examples of some of the betting taking place on hubdub right now. Who will be the Democratic candidate for '08? And who will win the Super Bowl? Even the leader board that ranks the top forecasters. And who do you think people are saying will win the Super Bowl?
CHETRY: I would have to say it's a safe bet to go with the Patriots.
(CROSSTALK)
DE LA CRUZ: Yes.
DE LA CRUZ: Seventy-four percent. Yes. Seventy-four percent of people saying the Patriots will take it.
CHETRY: You'll never know, though, because that's soft cast on Tom Brady's leg, right?
DE LA CRUZ: Well -- CHETRY: On his foot?
DE LA CRUZ: Yes.
CHETRY: Well, we'll see if that was all just a mind game.
DE LA CRUZ: You know, he can take them even with the cast.
CHETRY: We'll see. We'll see what happens.
A lot of betting folks are in your corner for sure.
DE LA CRUZ: Hubdub.com
CHETRY: Veronica, thank you.
Meanwhile, how about this one? Check out this -- check out this, Veronica. This is the world's biggest pencil. It's our "Hot Shot" of the morning. Ashrita Furman built it. It's 76 feet long. DE LA CRUZ: Wow.
CHETRY: It was a gift for her meditation teacher. There you see -- it's like a forklift trying to move that thing. It weighs 22,000 pounds, and it's been sent to the City Museum in St. Louis. The record pencil is the 177th Guinness World Record that Furman says he has set. How about that?
If you have a "Hot Shot," by the way, send it to us. Head to our Web site cnn.com/AM. Follow the "Hot Shot" link. Include your name, where you from, a little bit about the picture or video. And one more thing, make sure the image is yours and not someone else's.
And you know what it's like, John, years of being in the newsroom, they collect strange things. Let's put it that way. One of our producers happen to have this. Our own version of the biggest pencil with a working eraser.
(LAUGHTER)
ROBERTS: That's a pencil that you can almost handle. But, two questions I have --
CHETRY: I'm doing some copy editing now.
ROBERTS: How do you --
CHETRY: Go ahead.
ROBERTS: I have two questions. How do you build a 76-foot-long pencil?
CHETRY: No idea.
ROBERTS: And why do you build a 76-foot-long-pencil as a gift for your meditation teacher?
CHETRY: I have to think on it.
ROBERTS: How do those things go hand in hand?
CHETRY: I have no idea, but we have our own.
ROBERTS: We can meditate on that for a little while.
CHETRY: Exactly.
ROBERTS: We'll get back to you on that. Wow. Your pencil looks terrific.
You're watching the "Most News in the Morning." Though it has Wall Street in its name, "The Wall Street Journal" could be moving off Wall Street. We'll tell you where the paper is headed. That's coming up.
And they sat just four seats apart last night, but it might as well have been 400. Democratic presidential rivals Hillary Clinton and Barack Obama giving each other the cold shoulder at the State of the Union Address. We've got the story and some interesting pictures coming up on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Oh, shot of a polling place there in Hollywood, Florida, just north of Miami. Thanks to our folks at WPLG. That picture that's going to be opening in about 10 minutes time. I'm sorry, half an hour's time, as they are getting ready inside there to allow people to come in and vote in Florida's all important primary.
It's Tuesday, January the 29th, and welcome back to a special edition of AMERICAN MORNING. I'm John Roberts and we're broadcasting this morning from Bakely's Restaurant in Winter Park, Florida. It doesn't open for another little while. But at the same time, the polls open, Kiran. But we expect to get a lot of people in this morning. We'll talk to them about the issues that are important to them.
KIRAN CHETRY, CNN ANCHOR: I wonder if it's amply named, Winter Park. I know a lot of my parent's friend. They head south and head to Florida for the winter months just to escape the chill. So it is a Winter Park, I guess you say.
ROBERTS: Absolutely. There are an awful lot of snow birds down here. In fact, Rudy Giuliani is counting on a lot, not just snow birds but New York transplants to try to carry him over the top.
As we mentioned, voting starts about half an hour from now in the Florida primary. Shaping up to be a toss up between John McCain and Mitt Romney. The winner gets a big boost heading in the next week's Super Tuesday's showdown. Rudy Giuliani has gambled his campaign on a win here. Democrats are voting too but Florida is being punished for moving its primary date up. So, none of the Democratic delegates will go to the national convention in August. Stay with us tonight because The Best Political Team On Television will bring you the first results in the Florida primary since the polls close. It all begins with CNN's Election Center at 8:00 p.m. Eastern.
The final day of campaigning in Florida saw a major escalation in the attacks between Romney and McCain. Last night, our Anderson Cooper asked them what they think of each other.
(BEGIN VIDEO CLIP)
JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: You know, really -- one thing I think we should really give Governor Romney credit for, he is consistent. He is consistently taken both sides of any major issue. He is consistently flip-flopped on every issue.
MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: And I'm afraid that if he became president, some of his conservative ideas would be, you know, just rejected out of hand by Congress.
(END VIDEO CLIP)
ROBERTS: Meanwhile, Giuliani is hoping to capitalize on the fighting between Romney and McCain saying he is, quote, "Sick and tired of all the name calling."
Rudy Giuliani has got a lot on the line here in Florida today. We'll ask the former New York mayor about the future of his campaign, if he loses this crucial state, when he joins us live. That's coming up in our 7:00 a.m. hour.
Kiran?
CHETRY: We look forward to hearing from him. Also, new this morning, the economy, a recurrent theme for President Bush in his final State of the Union address last night. He urged Congress to approve his $150 billion economic stimulus plan.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, U.S. PRESIDENT: The temptation will be to load up the bill. That would delay it or derail it, and neither option is acceptable. Unless Congress acts, most of the tax relief we have delivered over the past seven years will be taken away. Some in Washington argue that letting tax relief expire is not a tax increase. Try to explain that to 160 million American taxpayers, who see their taxes rise by an average of $1,800.
(END VIDEO CLIP)
CHETRY: The president also talked about Iraq. He said that although the situation is improving, any troop withdrawal needs to happen slowly.
(BEGIN VIDEO CLIP) BUSH: So shifting from leading operations to partnering with Iraqi forces, and eventually to a protective over watched mission. As part of this transmission, one Army Brigade Combat Team and one Marine Expeditionary unit have already come home and will not be replaced.
(END VIDEO CLIP)
CHETRY: We also heard from Senator Barack Obama after the president speech. He told Anderson there was a lack of urgency in the president's plan and called for more to be done.
(BEGIN VIDEO CLIP)
BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: People are anxious, as I travel around the country, they are worried about losing their homes, and they are worried about losing their jobs. They can't afford to retire. They are trying to figure out how to finance their kids' college education. They want something much more robust than the warmed over policy prescriptions and the extension of the Bush tax cuts that that was the centerpiece of his policies.
(END VIDEO CLIP)
CHETRY: Obama said he supports extending unemployment benefits that was dropped by the House but is expected to appear in a Senate plan. Hillary Clinton also scheduled to talk to Anderson last night, canceling though at the last minute with no explanation.
Well, it's a heated rivalry and last night Hillary Clinton and Barack Obama each -- gave each other the cold shoulder. You can see just how close the Democratic presidential hopefuls were at the State of the Union last night yet neither acknowledged the other.
In fact, Senator Hillary Clinton reaching out to shake Senator Ted Kennedy's hand. He was standing right next to Barack Obama who then turned away.
The Federal Reserve is opening a two-day meeting this afternoon to plot their next move on interest rates. And here with the preview from the Chicago Board of Trade, he has it all to himself at least at this early hour, Ali Velshi.
Hey, Ali.
ALI VELSHI, CNN CORRESPONDENT: Good morning, Kiran.
This is a very empty Chicago Board of Trade, but within a couple of hours, it will really fill up. And what happens here is these traders trade many things, futures commodities, but they trade futures on bonds and treasuries. So that's where fixed mortgages are set. You know, last nigh in the State of the Union address, the president didn't say anything that we weren't expected or anything particularly new. He did talk. You just heard about this, about lowering tax rates.
Well, that's what the government can do amongst other things. What the Fed does is it handles interest rates and when those interest rates come down, your prime rate comes down. When prime rate comes down or when Fed rates come down around here, they tend to trade bonds higher and that means the interest rate on those comes down. And that brings the mortgage down. We've seen that happening.
Take a look at where interest rates have been over the last several years. We've seen them trending down since September and we're expecting that to happen again tomorrow by 2:15 Eastern. Could happen today. Could happen any time. You saw the Fed surprise us last week with a.75 percent cut right out of the blue.
Now, what happens if the Fed cuts rates by tomorrow 2:15 p.m.? Well, that means your prime rate will go down. That also means mortgage rates, fixed rates could come down, that will happen here. You'll hear all that yelling and screaming and the rates will start to come down here. It will also mean that dollar will drop as our rates go down, the dollar gets lower and that fuels -- that fuels inflation.
So that's another concern as I just did that bus trip across the country on the CNN Election Express. That was one of the biggest concerns people had. Higher gas prices and higher cost of goods. So that's the kind of things we're looking at. We're going to stay here and follow these traders. Find out what they're talking about into the future and we'll be here when the Fed cuts rates, Kiran.
CHETRY: Sounds good. Ali Velshi, thanks.
John?
ROBERTS: "The Wall Street Journal," Kiran, could be moving off of Wall Street. The paper is reportedly planning to move its offices to midtown Manhattan. The Journal is also planning to transform itself from a business paper by adding the sports section and a glossy lifestyle magazine.
That's according to a report in "The New York Times." Rupert Murdoch's news corporation bought the Journal parent company, Dow Jones last year. Obviously, looks like they are making some changes.
A ship aground. Your "Quick Hits" now. It happened near the Chesapeake Bay Bridge. The 242-foot container ship heading from Baltimore to New Jersey drifted out of the shipping channel and got stuck. No damages, injuries, or pollutions so far. Tug boats may have been used to free it.
Changes are coming to a New Jersey jail after a Hollywood style escape last month. Union County Prosecutors have release a new report. They say the two inmates who broke out, exploited problems within the jail system. Five officials have been suspended and the jail is getting a security overhaul. Both inmates are back behind bars.
And Big Blue feeling a little bit green. The Giants get hit by a flu bug before the Super Bowl. Anyone in jeopardy before the game? Details on that are coming up.
And if I told you that McDonald was going to hand out official high school diplomas to employees. How would you react?
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UNIDENTIFIED MALE: No way. I don't think so.
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ROBERTS: Obviously, there are still some convincing to do. What's behind the new McDiploma? That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the most news in the morning. A demolition project goes horribly wrong in San Francisco. One person killed and two badly hurt after part of an abandoned power plant collapsed while it was being demolished.
Trees down and snapped in two across the Pacific Northwest after some of the heaviest snow fall there in years. In fact, 17 inches fell in parts of Washington State and Oregon. Another snowy and icy mess may be on the way.
Also, a red alert. The sky is glowing over Mexico, when a volcano 40 miles south of Mexico City. The cloud of ash shooting five miles high. It's the highest column of smoke that one scientist has seen in seven years.
41 minutes past the hour. Rob Marciano keeping track of things for you. That must be fascinating for you guys to check that out.
(WEATHER REPORT)
ROBERTS: 43 minutes after the hour now, Kiran. The Giants have got Super Bowl fever. Really, literally. Their flight to Arizona for the big game was delayed because quarterback Aaron Ross caught the flu. Three others missed practice on Friday with symptoms. Head coach Tom Coughlin says he hopes that the worst is over.
I don't know about you folks, but does this sound like another Patriots' plot?
CHETRY: First, we had Tom Brady wearing the air cast, right, on his foot. And now we have the flu-like symptoms for The Giants.
What do you think, Rob?
ROB MARCIANO, CNN METEOROLOGIST: Well, I think the NFL puts them up to it. They have two weeks to hype up the game. And right now, we're kind of in a lull before they actually get to mix it up with the press. So, yes, I think this is all a big game. And I'm looking forward to the big game. Who do you guys like?
John? Patriots or Giants?
ROBERTS: Well, I'm kind of torn, because you know, I work out of New York and then like to see the Giants win. But I also like to see the Patriots be the first team since the Miami Dolphins in 1972 to go with a perfect season. And to do it 19-0 as opposed to 16-0, it would really be an incredible accomplishment. So I'm kind of torn.
CHETRY: I'm kind of looking forward to the Super Bowl commercials. And I hope the game is not over in the first quarter, Rob, you know. I mean, I want it to be a game.
MARCIANO: I hear you. We'll all be out there. I'll let you know how it goes. If you guys can find me tickets to the game, it would be much great. You all are well connected than me.
ROBERTS: Hold it. Rob, you just said I'll be out there. So what is this? You go to Weather Summit in Steamboat Springs; you go to the Super Bowl? I want your job.
MARCIANO: This isn't for work, this is a little play time, but I'll still take tickets if you can get them for you.
ROBERTS: All right then.
(CROSSTALK)
CHETRY: Rob will go out there and attempt to get himself some tickets. All right, Rob, go for it.
MARCIANO: All right. See you guys.
ROBERTS: All right. Talk to you in a bit.
Education in Britain is usually thought of as a grand affair, steeped in tradition. Well, England meet the McDiploma. McDonalds in the UK are going to start offering high school equivalent diplomas to the staff. McDonalds want approval as an exam board. It's going to be a "basic shift manager" course that McDonalds' executives say it's a great opportunity for employees.
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GAVIN FAIRHURST, MCDONALDS UK: We're providing people who perhaps otherwise may have been overlooked by the education system an opportunity to demonstrate their skills, to grow their opportunities, and to increase their social mobility.
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ROBERTS: One problem, though, some British universities have already said that they don't much like the idea and might make them less likely to accept applicants who have a make of this diploma.
Well, you've heard about the FEMA trailer saying concerns that they are toxic. Now there is news that the government knew about it and covered it up.
Plus, a paralyzing snowstorm. About half a million people stranded at the worst possible time of the year. A live report from China's winter emergency. That's ahead on AMERICAN MORNING. (COMMERCIAL BREAK)
CHETRY: 49 minutes past the hour now and if you're just joining us, here's a look at what's making news this morning.
Voting begins in the Florida primaries in the next few minutes. Republicans Mitt Romney and John McCain are locked in pretty much a dead heat for the lead right now. Democrats are voting but they're being punished for moving their primary up, so the national party will not count their delegates when choosing a nominee.
President Bush wants to give you some of your money back and he doesn't want Congress to stand in the way. At his final State of the Union, president urged Congress to approve his $150 billion economic stimulus plan and warned the Senate not to add on to it. We're getting a live report from the White House coming up to the top of the hour.
Also, the Federal Reserves starts a two-day meeting today and many investors are expecting the Fed to lower rates yet again. Last week, the Fed made a rare emergency cut slashing rates .75 percent. The biggest rate cut we've seen since 1982. News of another rate cut would come together afternoon.
John?
ROBERTS: Ten minutes to the top of the hour. Don't e-mail -- I meant 17-0 for the Dolphins since 1972.
A deadly snow storm sweeping through China. Report say a half a million people are stuck during China's busiest travel time of the year. CNN's Jaime Florcruz is for us live in Beijing.
Jaime, what's travel like there today?
JAIME FLORCRUZ, CNN CORRESPONDENT: Very bad, John. Millions of Chinese are on the move taking trains, buses, and airplanes. All trying to go home in time for the Chinese New Year, which is about a week from now. It's just like Americans going home from Christmas or Thanksgiving.
Instead, they're here, we are talking of about 200 million Chinese on the move. That's impaired by heavy snowstorms that have hit about 14 provinces in China. About 87 million people are already affected including some 500,000 travelers stranded in a railway station in South China.
Now, no relief is in sight because Chinese meteorologists predict another cold front hitting China in the next two days. So more icy weather and more miserable days for Chinese travelers.
John?
ROBERTS: Jamie, all of this people who are stuck, are they providing any kind of relief for them? FLORCRUZ: The government has already disbursed millions of dollars worth of subsidies to pay for the needs of those who are stranded on the road as well as in the train stations. The Chinese (INAUDIBLE) top policy-making body met today and had put priority on emergency relief as well as ensuring that there is peace and order in these places.
John?
ROBERTS: All right, Jaime Florcruz for us this morning from Beijing. Jaime, thanks.
Now let's go back to New York and here's Kiran.
CHETRY: Thanks, John. Well, a new study says that FEMA ignored information on the effects of formaldehyde in trailers that were used by Hurricane Katrina victims. The House, Science and Technology subcommittee says that FEMA manipulated the findings to play down the dangers. FEMA is denying it.
People living in these trailers have complained about health problems related to formaldehyde. FEMA is currently testing some of the trailers and is expected to issue a report in May.
Now, a check of this morning's "Quick Vote" question. Should all the delegates count in Florida? Right now, 75 percent say yes, 25 percent say no. Cast your vote at cnn.com/am. We're going to continue to tally your votes throughout the morning.
ROBERTS: Crime runs in the family. That tops your "Quick Hits" now. 48 percent of the country's 2 million inmates say they have relatives who have also spent time behind bars. That's according to a 2004 Justice Department report. It was also 48 percent in 1997, though the prison population was not as high back then.
A new study says that if you're in your 40s, you might not be happy. Researchers say people in their 40s are more likely to be depressed than those who are either younger or older. The study's authors don't have a solid reason for the slump. The good news, though, the happy feelings return once you get into your 50s.
A plan to give anti-radiation pills to millions of Americans living near nuclear power plants gets scrapped by the White House. We'll tell you why they're doing it and why the congressman behind the idea is fighting mad.
And it was a big splash of glory. Some members of the Kennedy Family backing Barack Obama, but other Kennedy's speaking out today for Hillary Clinton. We'll ask Congressman Patrick Kennedy what he looks for in a president, coming up in our next half-hour.
Live from New York and what will soon be sunny Florida, as soon as the sun comes up, on this primary day edition of AMERICAN MORNING.
(COMMERCIAL BREAK) CHETRY: Welcome back to AMERICAN MORNING. Following extreme weather in Colorado. A blizzard warning in effect for the mountains west and northwest of Denver. Take a look at some of these pictures. Heavy snow and strong winds overnight actually shut down a stretch of I-70. And there's no relief in sight.
Today's temperatures are expected to be in the teens and wind chills below zero degrees. Rob Marciano is live at our weather update desk.
That's not the only region in for some trouble. The Midwest as well, looking ahead to some possible advisories and warnings today about some very, very cold wintry weather, Rob.
(WEATHER REPORT)
MARCIANO: The next hour of AMERICAN MORNING starts right now.
CHETRY: Florida gambles. Live with Rudy Giuliani on primary day. Where does his campaign go from here?
51 weeks and counting.
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BUSH: At kitchen tables across our country, there is a concern about our economic future.
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CHETRY: President Bush's plans for your money in his final year in office.
Plus, ask a Kennedy why they snubbed the Clintons and what do they look for in a president, on this AMERICAN MORNING.
And welcome. It's Tuesday, January 29th, I'm Kiran Chetry.
Hi, John.
ROBERTS: And good morning to you, Kiran. From Winter Park, Florida, at Bakely's Restaurant this morning, I'm John Roberts.
We begin with the fight for Florida going on right now. The polls just opening right now. WPLG bringing you some live pictures here. This is in Hollywood, Florida. The first voters there, just waiting outside. The door is about to open here.
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