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American Morning

Obama Makes History as the First Elected U.S. Black President; Oprah Winfrey's Reaction on Obama Win; What's Next for McCain and the Republicans? How Obama Pulled the Victory

Aired November 05, 2008 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR (voice-over): With the world watching --

ANNOUNCER: Ladies and gentlemen.

ROBERTS: Victory and history.

ANNOUNCER: The next First Family of the United States of America.

ROBERTS: The magnitude of the moment. As a new day dawns and a new era begins, reaction from across the country and around the world on this dramatic, historic, and moving AMERICAN MORNING.

(END VIDEO CLIP)

ROBERTS: And we continue to roll on with the "Most News in the Morning." Our special coverage of the results of Election 2008, and people across the United States and around the world are waking up to this nation's first black president-elect. Barack Obama's message of hope and change fueling a decisive win. And all across America, Obama supporters are celebrating the landmark victory.

In New York's Times Square, thousands of people watched the election results on giant television sets. In the nation's capital, outside the White House, at least 1,000 people gathered to celebrate spontaneous outpouring of celebration. And in Obama's hometown of Chicago, more than 200,000 people packed into Grant Park, an organized event, and the surrounding area, to hear the president-elect speak.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL-ELECT: I will never forget who this victory truly belongs to. It belongs to you. It belongs to you.

I was never the likeliest candidate for this office. We didn't start with much money or many endorsements. Our campaign was not hatched in the halls of Washington. It began in the backyards of Des Moines, in the living rooms of Concord and the front porches of Charleston. It was built by working men and women who dug into what little savings they had to give $5, $10 and $20 to the cause. It grew strength from the young people who rejected the myth of their generation's apathy. Who left their homes and their families for jobs that offered little pay and less sleep. It drew strength from the not-so-young people, who braved the bitter cold and scorching heat to knock on doors of perfect strangers, and from the millions of Americans who volunteered and organized and proved that more than two centuries later, a government of the people, by the people, and for the people has not perished from the earth. This is your victory.

(END VIDEO CLIP)

ROBERTS: Well, CNN's Suzanne Malveaux is in Chicago for us this morning, and she joins us now. Obviously, there's going to be a lot of hurt feelings among Republicans this morning, but there's no question, what happened last night was a real game changer for this nation.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Absolutely, John. What was really striking about Barack Obama's speech last night is that it was really quite sobering. There were calls for change and for hope, "yes, we can," those kinds of things that we've been hearing for months. But it was really tempered by the realization here that there are two wars, there's a financial crisis, and there is no question that the voters, the supporters have the highest of expectations of Barack Obama.

He promised a lot going into this election. People expect a lot from him. So, what they're trying to do today is really project a sense of seriousness in the mission. Barack Obama essentially setting the tone last night that he is going to govern and that he is going to take this very seriously, and that he understands this level of expectations from these voters and supporters. Take a listen.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL-ELECT: Even as we stand here tonight, we know there are brave Americans waking up in the deserts of Iraq, in the mountains of Afghanistan, to risk their lives for us. There are mothers and fathers who will lie awake after their children fall asleep and wonder how they'll make the mortgage or pay their doctors bills or save enough for their child's college education.

There's new energy to harness, new jobs to be created, new schools to build and threats to meet, alliances to repair. The road ahead will be long. Our climb will be steep.

We may not get there in one year or even in one term. But America, I have never been more hopeful than I am tonight that we will get there. I promise you, we as a people will get there.

(END VIDEO CLIP)

MALVEAUX: John, we have heard big promises from this candidate, now the president-elect. There are 2 1/2 months before he officially takes office. Thanks to President Bush's executive order. Already some of his aides will have security clearance as of today. Also, Barack Obama being able to get some of those intelligence briefings, the same detail, level of detail as President Bush now. I'm told by aides that he is going to be sitting down today with his top advisers. They are going to announce his transition team, and in the days to come, we expect some personnel announcements.

Obviously, they feel in the weeks to come, this is really going to be a critical time to set the tone of this administration, that they want to be taken seriously, and that all those things that he promised those past months, that he does plan on at least trying to deliver -- John.

ROBERTS: And President Bush has issued an open invitation for the president-elect to come and visit the White House, so we'll see him checking out his new digs pretty soon, I'm sure.

Suzanne Malveaux this morning. Suzanne, thanks so much.

MALVEAUX: Measuring the drapes.

ROBERTS: He'll finally get that opportunity -- Kiran.

CHETRY: Well, more now on the celebration in Chicago's Grant Park that drew more than 200,000 people out there. Its massive crowd chanting "yes, we did" as they welcome the future First Family on stage. And CNN's Alina Cho was right in the middle of it all. She joins us from Chicago now.

Hi, Alina.

ALINA CHO, CNN CORRESPONDENT: Hey there. As you mentioned, Kiran -- good morning to you.

Nearly a quarter of a million people in the crowd. Lots of regular supporters, lots of dignitaries, politicians and celebrities, too. Chief among them, I have to tell you, Oprah Winfrey. I think it's safe to say that Oprah's seal of approval doesn't apply to just books anymore.

Remember, Oprah was one of Barack Obama's original supporters. When she endorsed him, America really sat up and took note. I had a chance to go one on one with Oprah, and I asked her what she thought of president-elect Obama.

(BEGIN VIDEOTAPE)

CHO: How does it feel tonight?

OPRAH WINFREY, TALK SHOW HOST: It feels like hope won. It feels like it's not just a victory for, obviously, Barack Obama. It feels like America did the right thing.

It feels like there's a shift in consciousness. It feels like something really big and bold has happened here, like nothing ever in our lifetime did we expect this to happen! Something big just happened. It feels like -- it feels like anything is now possible. And I think that --

CHO: I'm a woman of color. You're a woman of color --

WINFREY: We're women of color.

CHO: But how does it feel? I mean, this is a --

WINFREY: Well, you know, I think that the beautiful thing about Barack Obama is, you know, throughout this whole process, one of my favorite endorsements came from Colin Powell. When Colin Powell said he understands, Barack Obama understands that all villages matter. I mean it brought tears to my eyes, because I thought, yes, that is it. So, it doesn't matter --

CHO: Did that seal the deal for you?

WINFREY: Well, I was already sealed. I was the deal. I was in the envelope already.

But this whole process for me has been something that I knew that this was the moment for me to stand up, regardless of, you know, whatever kind of, you know, heat I had to take or what people's responses would be. I knew this was the moment. This was the moment.

CHO: It's been a long 22 months, so what now?

WINFREY: The best is yet to come. I mean, listen, first of all -- geez, you know, if I, you know, have a chance to talk to him, interview him, I think --

CHO: I think you have a shot (ph).

WINFREY: You know, I wonder does he wake up in the morning and go, what have I gotten myself into? Because this country is in bad shape right now. But I think what he is going to do more than anybody else could is help us all to understand that it's not one person.

CHO: One more --

WINFREY: It's not one person who's going to unify the country.

CHO: One more question. You've got -- you've got this little thing called "The Oprah Show"...

WINFREY: Yes.

CHO: But would you consider an ambassadorship?

WINFREY: Would I consider an ambassadorship? Not as I have "The Oprah Show." Listen, I can honestly say this, I did this, I had no agenda. I had no agenda.

(END VIDEOTAPE)

CHO: Well, she didn't say no. Now, remember, Oprah may be Obama's most famous supporter, but here in Chicago, remember, Obama is also a native son. So that enthusiasm that you saw from Oprah, multiply that by about a million times, Kiran, and that's the kind of support for president-elect Obama that you see here in the Windy City.

And I mentioned a million? You know, you mentioned earlier that some people believe that Oprah's support may have won Obama a million votes. We're going to explore that a little bit further, and we'll have that report for you tomorrow morning.

CHETRY: Yes, the Oprah effect. Very fascinating. Great job getting a chance to talk to her as well, Alina. Thanks.

ROBERTS: She's going to take an ambassadorship, she's got to hang out for France, because that is the plum assignment.

Hey, we want your feedback to be a part of our special coverage this morning. Our "Quick Vote" question this hour -- is this the most important election that you have voted on?

Call in to our toll-free number. That's 866-977-vote. 866-977- 8683, or you can text your answer to 94553. That's 94553.

A seat change in American politics. What powered Barack Obama to his sweeping and historic victory as president, and what types of challenges will he have to tackle on day one? Our political panel weighs in, coming right up.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: The road ahead will be long. Our climb will be steep. We may not get there in one year or even in one term. But America, I have never been more hopeful than I am tonight that we will get there. I promise you, we as a people will get there.

(END VIDEO CLIP)

ROBERTS: A remarkable night in America, a night that many people thought that they would never see, as Senator Barack Obama becomes the first African-American president-elect. So, how is he expected to govern? We're going to find out very soon.

Let's bring in our political panel. Lisa Caputo joins us this morning, as well as Melissa Harris-Lacewell is with us. Ed Rollins back again and Tara Wall. Good morning to you all.

You've had some experience at this. You've been in government. You worked in the Clinton administration. What is he facing in terms of the transition and all the ducks he's got to get in a row in the ten weeks between now and January 20th?

LISA CAPUTO, DEMOCRATIC STRATEGIST: What he has that is so unique is this grassroots organization of the American public, and he was so smart last night, I thought, to say this is your election, this is about you. And so, he's going to govern with that movement that he's organized. And what he's got to do right now is mobilize very quickly his White House staff. I expect him to name a White House chief of staff very quickly.

ROBERTS: And who would that be?

CAPUTO: Well, I think Rahm Emanuel, my good friend, is the leading candidate who is an extraordinary political operative and very close to Senator Obama. And I think he's also got to move quite quickly to name his economic team because "it's the economy, stupid." And we saw that last night in the exit polls, the number one issue on American's minds.

ROBERTS: So, Tara, if you were going to name an economic team, who would you put at the top of the list?

TARA WALL, CNN POLITICAL CONTRIBUTOR: Well, he's mentioned, you know, Warren Buffett. I think that's probably top of his list. And by all accounts, I don't know that Warren Buffett would take it, but I think that that's probably likely one of his top picks.

ROBERTS: He might be kind of busy, though.

WALL: I know, I know. I'm sure he will hear from him. He will get some advice from him, but, you know, I don't have that kind of inside information, as you know.

ROBERTS: Ed, how many Republicans should he put in his cabinet?

ED ROLLINS, REPUBLICAN STRATEGIST: Well, I think keeping Gates would be a great move. I think Gates and Petraeus, and sort of hand that baton to them to finish the war. I think if he could find one other, it would be great.

I mean, when you start putting cabinet, you try to set quotas with two Republicans or two whatever, you run out of slots pretty quick. So it's harder than you think that it's a great theory.

ROBERTS: What about Joe Lieberman? Might he be invited in, or are they going to force him off the bounty?

ROLLINS: I think Joe Lieberman is going to have a very small office somewhere in the Capitol.

UNIDENTIFIED FEMALE: He's a man without a party.

ROLLINS: He isn't saying it but he's a man. And maybe a man without a state.

You know, I think someone -- I think there's someone else. I mean, obviously, if he hasn't made his choice, Secretary of State Lugar is someone he's got a great relationship with, would be a superb secretary of state.

ROBERTS: Let me ask you this question, Melissa, Don McManus writing in today's "Los Angeles Times" says on the subject of how Obama should govern -- "Too much of the ambitious liberal, and he rekindles partisan squabbles he was supposed to transcend. Too much the cautious mediator who reaches across the aisle to compromise with Republicans and he risks losing the energy and idealism that attracted millions to his candidacy." So he's got a little bit of fine line to walk here. And then he's also dealing with a newly emboldened Democratic Congress.

MELISSA HARRIS-LACEWELL, ASSOCIATE PROFESSOR, PRINCETON UNIVERSITY: That's true but he's been threading the needle to win this election at every point. I should think he really does have to be quite moderate, quite centrist, because his argument for why he should be president was not just about specific policies, but was more broadly about how he would govern, the kinds of approaches he would take and the sorts of people he would surround himself with.

So the key to me of this sort of grassroots organizations that he's created and nurtured is, he says, look, I will be a friend in the White House. The work is yours at the bottom. I will create a sort of broad, intellectual, smart, interesting, capable cabinet, and then you guys are going to have to come to us and tell us what it is the American people need. And the difference of an Obama administration will be the government will listen.

WALL: And it will be interesting to see what role, if any, Colin Powell might play. We've got Oprah Winfrey mentioned. You know, she was impressed with that endorsement, but Colin Powell when asked, never said he wouldn't take a position or wouldn't consider it.

ROBERTS: No.

WALL: And one of his babies, not just, you know, national security and all of that, but education is actually one of the issues that is dear to his heart as well. So, he may -- we may see a role with him as well.

UNIDENTIFIED FEMALE: Colin Powell -- the community organizer.

(LAUGHTER)

ROBERTS: Well, we should mention to you that one of our correspondents, Hugh Riminton, caught up with Colin Powell in Southeast Asia, interviewed him, and we'll have that interview for you coming up in just a couple of minutes.

Hang with us, folks. Lots more to talk about this morning -- Kiran.

CHETRY: It's funny, he caught up with him in Southeast Asia. He just happened to be there. We are going to bring you more on that.

Also, turnout levels in this election were at levels not seen since women got the right to vote back in 1920. The exit polling -- how did Barack Obama pull off the victory? A look, just ahead.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP) SEN. BARACK OBAMA (D), PRESIDENT-ELECT: It's the answer that led those who've been told for so long by so many to be cynical and fearful and doubtful about what we can achieve, to put their hands on the arc of history and bend it once more toward the hope of a better day.

(END VIDEO CLIP)

ROBERTS: Senator Barack Obama last night accepting victory, as he became the president-elect of the United States, will soon become the 44th president.

You know, there's still, if we take a look at our electoral map here, some states that we haven't called yet. We got North Carolina, Indiana, Missouri and Montana. All of those states are too close to call. But as you can see by looking at the electoral vote count, Senator Barack Obama well over the 270, 338-159.

John McCain is leading almost by twice as much in Alaska, so that one's definitely going to go to him.

Let's take a look at some of the ways that Barack Obama won this election. This is a map from 2004. Let's take a look particularly in what's called the I-4 corridor here across the state of Florida.

This is an area that's seen a lot of Hispanics move in, some from Puerto Rico, some immigrating from other countries, and they, rather than like the Cuban vote in the south part of Florida going for Republicans, tend to vote Democratic. So, this is what it looked like, a big swatch of red, with the exception of the Orlando area here in Orange County, which was almost a tie in 2004.

And take a look at how this changes. Orange County solidly Democratic. Osceola County below it solidly Democratic. This is the surprise, Hillsborough County, which was solidly Republican in 2004, now Democratic, as well as Pinellas County where St. Petersburg is.

So, Barack Obama did very, very well there in south Florida, or the central part of Florida. He also did well in south Florida. But take a look at this. Let me flip -- I want to hide this one from you for a second.

Let me flip back to 2004, all right? This county right here, Hamilton County. This went big for President Bush back in 2004. Here's the margins. Look at this. Won it 53 to 47 percent.

Now let's overlay the results of this election, and watch what happens. Boom. That county literally flipped and went 52 percent for Barack Obama to 47 percent for John McCain.

Ed Rollins told us yesterday, if Barack Obama wins Hamilton County, he wins Ohio and probably wins the presidency. That could be the county that won him the presidency, won him the White House -- Kiran.

CHETRY: All right. Well, a CNN exclusive still ahead. Former Secretary of State Colin Powell reacting to Barack Obama's big win. Our crews caught up with him in Asia. You're going to hear it first when the special edition of AMERICAN MORNING continues.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Sasha and Malia, I love you both more than you can imagine. And you have earned the new puppy that's coming with us to the White House.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

ROBERTS: So, John McCain last night admits that mistakes were made during his long campaign, but he says he has no regrets. So, what now for McCain and the Republicans?

Joining us now from Washington, David Frum. He's a senior fellow with the American Enterprise Institute, also the author of "Comeback: Conservatism That Can Win Again."

So, David, in your overview, what kind of shape is the Republican Party in here on November 5th, 2008?

DAVID FRUM, SR. FELLOW, AMERICAN ENTERPRISE INST.: Not good. You did a very interesting explanation with those maps, but I think we can also look to see what happened and what the Republicans have to do at a different kind of map, not geographic, but by group.

I think that when we get the final tally out of this election, we're going to see two big things that won this for Barack Obama -- a big increase in turnout by ethnic minorities and a big shift in democratic preference by college-educated, white people. That is where the Bush collapse really took place. And that is where Sarah Palin was such a damaging force in the Republican Party.

ROBERTS: Right.

FRUM: Republicans have been asking themselves, why are we losing the votes of people who are economically with us, but culturally seem to have been offended by us? And that's going to point to all kinds of changes in the Republican message that we're going to need to see occur.

ROBERTS: David, do you really think that Sarah Palin, governor of Alaska, was really a drag on the party? Steve Schmidt, the chief operative for the McCain campaign, was asked yesterday, the pick of Palin, for you guys, are you happy with that? His response was, "You know -- well -- I'm not going to do -- there will be time for all the postmortems in the race." Not exactly a ringing endorsement.

FRUM: That kind of resounding message.

I don't know that any vice presidential candidate ever hurts that much, but she symbolized a problem that Republicans do have. That in the eyes of many college-educated white people, the people who Bush got in 2004 and whom the Republicans owned in the 1980s, the Republican Party has become a party of culture war. It's the party of "drill, baby, drill," so no environmental agenda. It's a party that has an economic message that just doesn't work.

It isn't that the country has moved economically to the left. I mean, when Barack Obama's pulling out Warren Buffett and Paul Volcker, they don't look like wild-eyed radicals, but they want economic management and they don't trust the Republicans anymore on that question.

ROBERTS: You know, last week, David, we were talking about this meeting of the conservative gray beards that's going to occur tomorrow, I guess, in a remote location somewhere in the mountains of Virginia.

FRUM: Yes.

ROBERTS: And they're going to be talking about trying to build a grassroots organization in the fashion of the one that was built during the Reagan out years, during the Carter administration.

FRUM: Right.

ROBERTS: What's the first thing they have to do?

FRUM: They have to understand that -- and I have a pretty good idea who those people are -- they have to understand that just because something worked in 1978 it won't work in 2008. And they also have to remember that Barry Goldwater, although Ronald Reagan came afterward and made Goldwater look better, the Goldwater effort led to a disaster.

What the Republicans need is not a grassroots, conservative movement that tries to intensify Republican turnout among traditional conservative groups. They need to win back those lost votes among people with college degrees, especially whites with the most reachable and they need to find a way to broaden the appeal to the best educated, most affluent African-Americans and minorities.

ROBERTS: So, how long will it take them to rebuild?

FRUM: Well, it depends on two things. One is how well does Barack Obama govern? If he does a good job, obviously, creates fewer opportunities. It also depends on how fast Republicans want to change. It's possible to do this learning in four years, but parties sometimes react to defeat by going to their extreme. Look at what happened with Goldwater after 1960's, McGovern after '68. Sometimes, it can take two cycles. Sometimes, as with the Democrats in the 1980s, even three. Let's learn fast.

ROBERTS: All right. David Frum for us this morning. David, it's good to see you. Thanks for coming in.

FRUM: John, thank you.

CHETRY: Well, it's 6:30 here in New York, 3:30 in L.A. And from coast to coast, Americans are waking up to a new era in American history -- Senator Barack Obama, the first black president-elect after defeating Republican challenger Senator John McCain.

Now, around midnight Eastern Time, Obama took to the stage in Chicago's Grant Park to thank his supporters. It was a massive crowd, more than 200,000 cheering him on, some of them just overwhelmed with emotion. And in his victory speech, Obama acknowledged the difficulties that lie ahead, the challenges that he faces. Though, he says, he's never been more hopeful.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: To those Americans whose support I have yet to earn, I may not have won your vote tonight, but I hear your voices. I need your help. And I will be your president, too.

And all those watching tonight from beyond our shores, from parliaments and palaces, to those who are huddled around radios in the forgotten corners in the world, our stories are singular, but our destiny is shared. The new dawn of American leadership is at hand.

To those who would tear the world down, we will defeat you. To those who seek peace and security, we support you. And to all those who have wondered if America's beacon still burns as bright, tonight, we've proved once more that the true strength of our nation comes not from the might of our arms or the scale of our wealth, but from the enduring power of our ideals -- democracy, liberty, opportunity and unyielding hope.

That's the true genius of America -- that America can change. Our union can be perfected. What we've already achieved gives us hope for what we can and must achieve tomorrow.

(END VIDEO CLIP)

CHETRY: Well, Obama's victory is particularly sweet in African- American communities like Harlem here in New York. As one man said this morning outside of the famed Apollo Theater, "this is the fulfillment of Martin Luther King's dream." CNN's Jason Carroll joins us now from Harlem.

You hear that from a lot of people this morning, Jason.

JASON CARROLL, CNN CORRESPONDENT: Yes, absolutely. You hear so many things. It was an incredible moment to be out here. There were hundreds of people out here in this quad area several hours ago when all of this happened. They had set up a big screen so everyone could hear and listen to everything that was going on.

When the announcement was made, I was actually trying to make my way over to my camera. And this just gives you an example of the exuberance and the joy that was out here. One woman just ran up to me and just threw her arms around me. She said, "Where are you going?" I said, "I've got to go to work." She said, "Let me give you a hug first." And that really what it was really about when you were down here watching and listening to all of these people. It was an excitement not just about electing Senator Barack Obama, but, Kiran, it was an excitement about what it really represents, what it means for all of America.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: We're going to the -- we're going to the inauguration.

UNIDENTIFIED FEMALE: And this is a pact that we are going to do this.

CARROLL (voice-over): What's this? This is the pact?

UNIDENTIFIED FEMALE: Yes, it is.

CARROLL: Which means what? Which means what?

UNIDENTIFIED FEMALE: We're going to the inauguration! Definitely.

(CROSSTALK)

UNIDENTIFIED MALE: We're going to Washington D.C.

(CROSSTALK)

CARROLL (on camera): Ladies, what do you think?

UNIDENTIFIED FEMALE: Woo!

CARROLL: We're going to stop and interview just a few more people here as we go on.

UNIDENTIFIED FEMALE: It gives me hope for the future. It gives me hope for our children. It gives me hope for all the little children that I counsel every day and I tell them that they can make it and that they can become better citizens. And now I can go to work tomorrow and hug my children and tell them I love them and tell them, "You can be the president!"

UNIDENTIFIED FEMALE: We're progressing and we're basically going forward, that's what I think. We definitely needed a change from the Republicans, and now we have it. And on top of that, we're making history.

(END VIDEOTAPE)

CARROLL: You know, when you're out here and you listen to all these people, there was a theme that we kept hearing over and over again. And that was, the election of Senator Barack Obama, what it means, what it says to so many people out here, regardless of their ethnic background. What it says to them is, in this country, you truly can be whatever it is you dream to be. Kiran?

CHETRY: Wow. And as Barack Obama said, a lot of high expectations as well, and he has a lot of work ahead of him, which he says he is ready to take on.

Very, very good to talk to you this morning, Jason. Thanks so much.

ROBERTS: Well, former Secretary of State Colin Powell is speaking out about the election of Barack Obama. CNN's Hugh Riminton caught up with Powell in Hong Kong of all places. Powell says that Obama won because he was able to appeal to all kinds of voters regardless of race.

(BEGIN VIDEO CLIP)

COLIN POWELL, FMR. U.S. SECRETARY OF STATE: President-Elect Obama did not put himself forward as an African-American president. He put himself forward as an American who happened to be black, who happened to be African-American, and that ought to come after the title, because what he did in this campaign was to be all-inclusive, to reach out across racial lines, cultural lines, religious lines, you name it.

He wanted to be a transformational figure, to bridge the gap between generations. And I think that's what allowed him to win this election. So, we're very, very proud to have a new American president who also happens to be an African-American.

(END VIDEO CLIP)

ROBERTS: Powell, a Republican, of course, made headlines when he endorsed Obama last month. Barack Obama, elected as our first black president. The first step out of the way. Now, comes the hard part like fixing the economy or improving the U.S. standing in the international community. How will he do it? We'll take a look, coming up.

(COMMERCIAL BREAK)

CHETRY: That was a look at the huge crowds, impromptu crowds outside of the White House last night. They were celebrating Barack Obama's win after hearing the news. We'll be heading to the White House this morning, where we're hearing from President Bush. He's set to speak a little later this morning about the new president-elect. And of course, you'll see it live here on AMERICAN MORNING.

Now, Senator-turned-President-Elect Barack Obama telling the world that he will move the country forward, despite some pretty substantial obstacles. So, what is expected to be at the top of his agenda? Well, I'm joined now by our panel right now. "Financial Times" Chrystia Freeland, as well as Politico's John Avlon, and Patricia Murphy from citizenjanepolitics.com, and our own Frank Sesno.

Thanks for being with us, all of you this morning. Let me start with you, Chrystia. The financial mess, obviously, most of voters said that that was the top reason that they picked one candidate over the other. It's a top concern right now and it's a huge undertaking. What's the first step for Barack Obama?

CHRYSTIA FREELAND, U.S. MANAGING EDITOR, FINANCIAL TIMES: Picking his Secretary of the Treasury, and he is going to be under a lot of pressure to name his secretary of the treasury very quickly. There is a big meeting of the G-20, an international summit that is being convened in the United States to try to come up with some sort of multilateral, multinational approach to this global crisis. And if Obama hasn't chosen his Secretary of the Treasury, the American response would really be a lame duck response.

CHETRY: We hear him say things like I'm being advised by Warren Buffett, Paul Volcker. What are the chances, John, that somebody would actually like Warren Buffett be at his cabinet?

JOHN AVLON, INDEPENDENT POLITICAL ANALYST: Well, you know, I think it's a great brand name for the American people and it inspires the kind of confidence that Obama's going to need to do. I think someone like Larry Summers is probably more realistic.

But you know, you campaign in poetry, but you govern in prose. And now is the time that Obama has got to start really putting some meat on the bones of his centrist rhetoric. He's got to show that he can be a uniting president by making gestures to the center, reinforcing his credentials and putting things like energy independence at the top of his agenda, not necessarily, you know, upping the tax code.

CHETRY: And part of that, Patricia, you say is managing this Democratic majority in the Congress.

PATRICIA MURPHY, CITIZENJANEPOLITICS.COM: Yes. We've heard about the expectations of the voters for Barack Obama. He is now getting a Congress that strengthens the Democratic majority, that has very high expectations for what they're going to be able to do with the White House.

In their column, they have a whole backlog of dreams that they would like to see realized. What Obama did in his speech last night when he said we are still not divided by a red America or blue America, we're United States of America, that's telling Congress, this is not going to be your liberal dream come true. We have to govern with a moderate majority.

CHETRY: And Frank you say we can't forget national security, either.

FRANK SESNO, CNN SPECIAL CORRESPONDENT: We can't forget national security. That's going to be very high up there because it's part of the signal that he's going to send. Obama's actually going to have a real-world opportunity to show how he's going to govern or how he's going to lead, at least in a limited capacity. If Congress does a special session as expected and they launch a stimulus package. Robert Rubin, former Treasury Secretary, has been advising Obama, he's on the transition team, has said that the country is going to need maybe a 300 -- up to a $300 billion stimulus package.

I spoke to several senators last week who said they're going to be watching very closely. Obviously, either McCain or Obama was going to come back to the Senate. They expected it was going to Obama as president-elect to see what he does and how he leads. They're going to be looking to him as a stimulus package is fashioned.

(CROSSTALK)

AVLON: And he's going to need to set that tone very early, performing coalitions of centrist Democrats and Republicans and keeping an eye on fiscal responsibility, which is what independents really want to see and hear. So, he's got an opportunity early on to set that tone, to show that he's going to be a leader of the moderate majority of Americans and not held captive by anyone on the party.

(CROSSTALK)

CHETRY: And personally, do you believe that tax cuts are realistic and it's something that he's going to push through?

FREELAND: Absolutely. I think actually what we're going to see in the next 12 months is tremendous fiscal stimulus from the federal government. So, you're going to see tax cuts and you're also going to see high government spending. And that, I think, is going to be a bipartisan coalition behind that, because people are going to say, if the government doesn't spend, we're going to go into a very deep recession. What will be important --

CHETRY: Isn't that what angered people, though, in the first place, with this current administration?

MURPHY: Well, I think what especially angered them was that the government spending has gone into the largest banks on Wall Street. So, the government spending has been not for the American people. It's been for the American corp -- you know, kind of corporations. And so, that's what angered them. They see all this money being spent and none of it is coming their direction.

MURPHY: It's where the spending goes, and then I think it will be very important to send a signal about what the purpose of it is and to say this is a short-term stimulus, but in the medium-term I intend to be financially prudent. And I think that that will be the sort of centrist course Obama chooses.

AVLON: But he's entering office with high expectations, but a bad economy, and that can be a combustible combination.

FREELAND: So many chairs who want to get their things done.

CHETRY: All right. Well, thanks for the discussion. You're right, he does. As we all know, a lot of challenges ahead, speaking of the economy. Thanks, guys. ROBERTS: Makes you wonder why he ever wanted the job. At last count, more than 60 million people wanted Barack Obama to be our next president. So, too, did a bunch of world leaders and their constituents. We'll have reaction from Asia, as well as Obama's father's birthplace in Kenya.

(COMMERCIAL BREAK)

ROBERTS: It's brand new era in American politics this morning. And the world watch as Barack Obama became the first African-American president. So, what's the international reaction to an Obama presidency?

CNN's State Department correspondent Zain Verjee has been watching the world and she joins us now.

Good morning.

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Good morning to you, John. Well, one country hasn't congratulated Barack Obama. Russia's using this really historic moment to just come out of the gate and blast the U.S., challenging President-Elect Obama, pretty much immediately.

President Medvedev is blaming the U.S. with the war in Georgia and for the world financial crisis. Also, today, Russia is announcing that it wants to deploy missiles to counter a U.S. missile defense plan.

So, right away, Russia is putting itself front and center and is demanding that the next president, Barack Obama, fix really bad relations with Russia.

ROBERTS: You know, presidents-elect typically find out that the honeymoon only lasts about three hours, if that.

VERJEE: Yes.

ROBERTS: But in other areas of the world, there have been some pretty great celebrations, right?

VERJEE: Yes. Oh my gosh, yes. I mean, there's really been euphoria, the emotion, the amazement, the excitement. It's been incredible. I mean, this is really a moment that the world wants to share with the U.S.

In Kenya, you've got chants of "Obama dew, Obama up, Obama is number one." Kenyans are also raising their glasses and drinking Kenyan beer. It's called Senator, John, named after Obama. And you're looking at here at Mama Sarah, who lives in Kogelo, Kenya where Obama -- the grandmother, as you can see, danced as she watched the results come in along with her family.

This is a traditional Luo dance and they wear the Kanga and they clap their hands and celebrate like this. And she's also slaughtered a cow and is planning on having a feast with the rest of the family and all the guests that she can invite.

Celebrations in Southeast Asia, too. Take a look at this scene. This was the scene at Obama's old school in Indonesia, and kids there holding up posters.

John, French President Nicholas Sarkozy really spoke for many around the world when he said that America will once again lead, and that's really what many are turning to the U.S. to do.

ROBERTS: Right. So what about some personal reflection? Because your mother's from Kenya, right?

VERJEE: Yes.

ROBERTS: You've lived there.

VERJEE: From the same town, actually, just Kisumu.

ROBERTS: So, you lived there for a time.

VERJEE: Yes, I did.

ROBERTS: What are people telling you?

VERJEE: Well, you know, I mean, it's just an incredible moment, because Kenyans really feel as though this is their moment of success, as well. I just spoke to a few leaders who said, you know what, Kenya has the best athletes. We win Olympic gold. We have the best tea and coffee. You know, the migration of the wilder beast is one of the world's wonders, and now, they say we have Obama. And what they're saying in Kisumu, which is where my mom is from, is "Obama Kende (ph)," which in Luo, which is the local language of his father from Kenya, it means "Congratulations Obama."

ROBERTS: Did you remind them that a Brazilian won the New York marathon?

VERJEE: No. We like to forget about things like that.

ROBERTS: Zain, thanks very much.

Time to check out the results of our "Quick Vote" question that we asked you earlier this hour. Is this the most important election that you have voted in? 97 percent of you say yes. Just three percent say no. We've received more than 2,700 votes on that in under an hour.

People pouring into the streets...

(CHEERS AND APPLAUSE)

...like Times Square on New Year's Eve. An extraordinary moment in history. All over the country. And all across the world. Reaction to the country's historic choice for president. You're watching a special edition of AMERICAN MORNING.

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(BEGIN VIDEO CLIP)

OBAMA: Is anyone out there who still doubts that America is a place where all things are possible, who still wonders if the dream of our founders is alive in our time, who still questions the power of our democracy? Tonight is your answer.

(END VIDEO CLIP)

ROBERTS: President-Elect Barack Obama last night in Grant Park in Chicago, claiming victory over Senator John McCain. It appears as though Senator Obama had some pretty heavy coattails, or at least some pretty long coattails last night, dragging in some Democratic members of Congress along with him.

Our Jim Acosta is looking at the balance of power on Capitol Hill.

Jim, I guess it could also be said that in one state, that being Virginia, was potentially a Senate candidate that had coattails for Barack Obama. John Warner did very well last night -- Mark Warner did very well last night.

JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT: Absolutely, and the balance of power now favors Barack Obama in this new Washington. The Republicans went for a governor from the Alaskan Wilderness. They now find themselves in the political wilderness in Washington, D.C. And all you have to do is look at the balance of power as it stands now.

We want to show you our virtual capitol. That is what is on set right now. That is not a cardboard cutout, that is a three- dimensional hologram, a look at how the Senate is shaping up right now. 56 seats for the Democrats, 40 seats for the Republicans.

But if you notice in white here, there are four seats that are still yet to be named in terms of who the winners are. And we want to roll through some of those real quickly. Alaska -- Ted Stevens, despite being a convicted felon, is hanging on to that seat right now, locked in a battle with Mark Begich, the mayor of Anchorage, Alaska. That race too close to call.

Georgia, Saxby Chambliss appears to have -- or is on the verge of having 50 percent in that race. In that state, you need 50 percent to claim that Senate seat, or else there is a run-off. Jim Martin apparently has not knocked off Saxby Chambliss.

In Oregon, here's another interesting race. Gordon Smith, despite the fact that he is in Oregon, and that is a state that is a trending Democratic. It appears he has not knocked off the speaker of the House in that state, Legislator Jeff Merkley. So, Gordon Smith may be heading back to Washington. It's too close to call yet.

And then Minnesota, check this out. Norm Coleman, he is hanging on by a thread in Minnesota. Al Franken, the comedian -- as he used to say as Stuart Smalley -- "I'm good enough. I'm smart enough. And gosh darn it, people like me." They may not like him well enough in Minnesota to put him in the Senate. Norm Coleman hanging onto that seat.

We want to show what's happening in the House, because that is also very interesting. The Democrats have picked up a number of seats there. They're now at 251 to 171, is what we're estimating right now for the Democrats.

And in some of those races, very interesting. Michelle Bachmann, despite the fact that she called for an investigation or an expose of anti-American views in the Congress, she apparently has held onto that seat.

Chris Shays is a noted moderate from the northeast, a Republican -- a lone Republican in the northeast. He has been knocked out of his House seat in Connecticut. And Jack Murtha, who called people in western Pennsylvania racist and rednecks, he has apparently held onto that seat. The Democrat holding onto that seat in western Pennsylvania.

So, John, Jack Murtha was wrong about people in Pennsylvania, but yet, he held onto that seat. And he could not have been more wrong. Barack Obama won that state by 11 percentage points. Jack Murtha won his race by a healthy margin. So, it may be time to say the Bradley Effect, R.I.P., Rest in Peace. The ghost of Tom Bradley may finally be put to rest.

ROBERTS: And Barack Obama picked up a lot of support in that very area that Jack Murtha was talking about.

ACOSTA: Absolutely.

ROBERTS: So with Chris Shays out, that means that Republicans don't have a member of Congress in all of New England now?

ACOSTA: That is how it appears right now, and it's historic. I mean, not in the last 75 years have we seen the Democrats make gains in two cycles in a row, and they have done that. But once again, when we go back to the balance of power in the Senate, they are still at 56 seats. That is not a liberal mandate. Barack Obama talked about how this is not a country of red states and blue states. He's going to have to prove it now as president-Elect.

ROBERTS: All right. Jim Acosta with that this morning. Jim, thanks so much for that. 58-1/2 minutes now after the hour.

(BEGIN VIDEO CLIP)

OBAMA: On this date, in this election, at this defining moment, change has come to America.

(END VIDEO CLIP)

ROBERTS: American history. Barack Obama becomes the nation's first black president. The world watches democracy in action. (BEGIN VIDEO CLIP)

OBAMA: If there is anyone out there who still doubts that America is a place where all things are possible, tonight is your answer.

(END VIDEO CLIP)

ROBERTS: And today, millions are grasping the significance and looking to the promises and the challenges ahead. On a special edition of AMERICAN MORNING.

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