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American Morning
Obama Administration Personnel Speculation; Markets React to the Election; California Gay Marriage Ban; Obama's Team; Obama's Top Challenge; Republicans Hope to Regroup
Aired November 06, 2008 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Coming up now to the top of the hour. Just in to CNN, a Mideast peace deal during the Bush administration may now be an impossibility. This morning Secretary of State Condoleezza Rice said it probably won't happen by the end of the year. Rice makes her eighth trip to Israel in the Palestinian territory since the time line for reaching the agreement.
The Wall Street sellout continue today? Right now, Dow futures are down over 300 points after yesterday's nearly 500-point drop. Asian markets fall overnight. Japan lost six and a half percent. Hong Kong, more than seven percent.
House Speaker Nancy Pelosi is urging President-elect Barack Obama to govern from the middle. The democrats are about to head their widest house majority in 15 years. But before the seats switch, Pelosi is urging the current Congress to work now on issue number one, your money.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D), HOUSE SPEAKER: The economy, of course, is the top item on the agenda as we go forward, and we'll all be planning what happens in January when we meet with the new President-Elect. But even before then, we have a stimulus package on the table that I hope the Republicans in the Senate will allow to be taken up in a lame-duck session.
(END VIDEO CLIP)
ROBERTS: Lawsuits are being filed after the decision by California voters to ban same-sex marriage. Voters approved Proposition 8 by 52 percent, meaning the marriages of up to 18,000 same-sex couples are now in limbo. Los Angeles police were placed on technical alert as hundreds of protestors took to the streets. A large group banged on the glass. And CNN's Los Angeles bureau for about half an hour. The crowd did disperse peacefully, though.
We'll down to business. President-Elect Barack Obama has 77 days to put together a government. He could start by making some cabinet appointments as early as today. Certainly, some staff appointments. He'll also get his first top secret intelligence briefing on al-Qaeda, Iraq and Iran. This will be the first war-time transition in 40 years.
And later on this morning, President Bush will make a statement on the transition. Bush has promised to keep Obama in the loop on critical decisions and make sure that there is a smooth transition to power.
Let's bring in CNN's Suzanne Malveaux. She's live this morning in Chicago.
Let's talk about Obama's team. What are you hearing behind the scenes in terms of who he's going to pick and when we might get some of those announcements?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: John, those announcements could come as early as today. They're really wasting no time. John Podesta, the former chief-of-staff under Clinton is heading up the transition team with Barack Obama.
The first thing on the list, obviously, is to find his own chief-of- staff. Top of the list is Rahm Emanuel, the Illinois Congressman. It is considered a national fit. He is widely credited for bringing the Democrats back in power in 2006. He's able to raise a lot of money. He's been a very close adviser to Barack Obama. That announcement could come as early as today, or perhaps in the next couple of days. They've been in discussions.
And the Treasury Secretary also a critical position to fill right away. Barack Obama making a point to voters that that is what he is going to do -- is get us out of this financial mess. So, they're looking at a short list here of those. Former Treasury Secretary Larry Summers who is also a Harvard president -- Harvard University president. He has been a part of the advisory team, economic team for Obama.
Also on the list, Timothy Geithner. He is the president of the Federal Reserve Bank in New York. Critical person when it comes to dealing with this financial crisis in September. He's been very involved in that. Former Federal Reserve Chair Paul Volcker, also one of the people that Barack Obama has reached out over the last eight weeks or so. And New Jersey Governor Jon Corzine, who used to be with Goldman Sachs, another adviser to Barack Obama. Those are the four people that are at least on the short list, John.
ROBERTS: You know, Suzanne, back in 2000, the transition was foreshortened because of the lengthy decision-making process to determine who was the president. But we still got to spend a couple or three great weeks down there in Austin, Texas, which was an awful lot of fun.
Are you going to get to spend a lot of time there in Chicago, or will Barack Obama be coming back to Washington for the transition?
MALVEAUX: I think we will be spending a lot of time here in Chicago. Because, actually, what's going to happen, he's splitting his time but obviously he's very close to his daughters, his wife. He's missed them tremendously. So, he wants to spend as much time here with them before they move to D.C. He has an office that is set up here. And it's where he's going to get his briefings -- his security briefings. There is also going to be kind of a makeshift briefing room. So, if he gets press conferences that we'll be here for that. And then, as you know, the government offices down in Washington. They've got a whole operation that's being set up there. So, we expect a lot of time here in Chicago, John. I'm not yet coming home.
ROBERTS: It's a great place to be, although, I'd rather be there in July than December. Suzanne Malveaux for us this morning.
Thanks very much, Suzanne.
KIRAN CHETRY, CNN ANCHOR: Well, from the economy to the wars in Iraq and Afghanistan, Barack Obama faces some big challenges here at home and also around the world. And he enters the White House with world expectations running quite high. CNN's Zain Verjee joins us now in the studio.
And are there risks -- inherent risks in those high expectations?
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Absolutely. Those expectations around the world for the president-elect are sky high. How is he going to navigate those competing international demands for his attention?
(BEGIN VIDEOTAPE)
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: The new dawn of American leadership is at hand.
VERJEE (voice-over): The President-Elect set the bar high.
OBAMA: To those who would tear the world down, we will defeat you. To those who seek peace or security, we support you.
VERJEE: The world shed in America's historic moment, but now has great expectations. Nicholas Burns is a former undersecretary of state.
NICHOLAS BURNS, FORMER UNDERSECRETARY OF STATE: We have to be engaged. We have to kind of win back the confidence of some people around the world who have lost confidence clearly in American leadership.
VERJEE: The world wants the U.S. to fix the global financial crisis, and for Barack Obama to deliver on campaign pledges to withdraw from Iraq, to confront terrorists in Afghanistan and Pakistan, and to fight global warming.
BURNS: I fear that perhaps the international expectations of what can realistically be accomplished will be too high.
VERJEE: As he rides a wave of global goodwill, the President- Elect will have to reduce those expectations and prioritize.
Already, Russia's President Medvedev has greeted the Obama election by blasting the U.S. on the Georgia conflict, blaming it for the financial crisis and threatening to deploy Russian missiles against the U.S. missile defense shield. Candidate Obama promised to make Mid-East peace a priority on day one. Israelis and Palestinians are looking to the U.S. to lead them out of the dead look.
(END VIDEOTAPE)
VERJEE: President-Elect Obama will have to balance, basically, repairing the image of the U.S. around the world and standing firm on U.S. interests. He's promised better relations with the world but not all of his policies, Kiran, are going to please U.S. allies around the world.
CHETRY: He wants to beef up the troop presence in Afghanistan, for example.
VERJEE: Yes. I mean, in Europe, for example, one State Department official had said the expectations are absolutely stratospheric, but they're not going to like some of the things that he wants, like send more troops to Afghanistan, put them in the dangerous places that U.S. troops are right now.
Also, there's a lot of expectation on climate change. The Europeans are really going to judge President Obama over the coming months on what he does about that.
CHETRY: Zain Verjee for us this morning. Thank you.
ROBERTS: Former Republican vice presidential candidate Sarah Palin is back in Alaska and will be back at the governor's office this morning. Before leaving for Anchorage, she spoke with the press saying that she is ready to work with President-Elect Obama.
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), ALASKA: We'll reach out to Barack Obama and to the people he surrounds himself with. United effort that we certainly will be making here in order to secure our nation and allow us to be more prosperous. We look forward to this.
(END VIDEO CLIP)
ROBERTS: As Barack Obama begins building his staff, the Republicans begin the process of rebuilding their party. CNN's Brian Todd tells us now some observers say the Grand Old Party's focus is in disarray.
Brian?
BRIAN TODD, CNN CORRESPONDENT: Good morning, John and Kiran. GOP insiders say this is where the finger pointing begins over what went wrong. One strategist says this is going to be a bloodbath as it would be for the Democrats if they were in the same spot. But it also gives the Republicans a chance to wipe the slate clean and rejuvenate.
(BEGIN VIDEOTAPE) TODD (voice-over): The defeat is total -- a two year pummeling, starting with the 2006 mid-terms. Republican leaders just can't spin it any longer.
MIKE DUNCAN, REPUBLICAN NATIONAL COMMITTEE CHAIRMAN: It hurts too bad to laugh and I'm too big to cry.
TODD: John McCain is merely the lead domino to fall in a party that's now lost the presidency and has hemorrhaged more seats in Congress.
Just hours after hitting the canvas in this figurative knockout, the bloodletting has already started on Capitol Hill. Adam Putnam, the number three Republican in the House, steps down as GOP Conference chairman.
MARTIN KADY, THE POLITICO: I think Putnam probably realized that in an internal challenge with the Republican Party he was going to lose the number three slot.
TODD: Putnam's boss, House GOP leader John Boehner, is expected to keep his post. But Boehner's number two, Roy Blunt, is already facing a challenge from conservative Virginia Republican Eric Cantor. But observers say this also means a broader discussion about the party's real principles.
We asked Republican strategist Susan Molinari, once the highest ranking woman in Congress, does the party need to move farther right to regain power or more toward the center?
SUSAN MOLINARI, FORMER GOP CONGRESSWOMAN: I think that we can do both. I think that we can -- we can maintain and respect and deal with our base and we can continue to grow that base by showing fiscal responsibility, by maintaining our message on what tax cuts, you know, can do for the American economy.
TODD: Then there's the torchbearer question for 2012.
KADY: There's a lot of people out there who love Sarah Palin. Mitt Romney, maintain a pretty crisp reputation after he stepped out of the presidential race.
TODD: But analysts say there's no clear leader in the wake of McCain's defeat. Questions surround Palin's lack of experience and depth. Romney's ability to appeal to a wider electorate. And on another possible candidate, Rudy Giuliani, is he too moderate to appeal to the base?
(END VIDEOTAPE)
TODD: But as the Republicans work through those challenges, analysts say we should also remember this is the same party that came storming back after political bloodbath in 1964, after Watergate and after Bill Clinton's election in 1992. They can certainly do it again.
John and Kiran, back to you.
CHETRY: Brian Todd for us. Thanks so much. We're going to take a quick break. AMERICAN MORNING will be right back.
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CHETRY: That's the treadmill term.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Up and you're down.
ROBERTS: I would have to get on the treadmill to know that. It's 13 minutes after the hour. Not to say that I don't. I just haven't for a few days. Been too darn busy.
CHETRY: You're right. We were putting it off until the election is over.
ROBERTS: Exactly.
Christine Romans "Minding Your Business" this morning. She joins us now, talking about the transition. And I guess Treasury Secretary is one of the big announcements we're waiting this morning.
ROMANS: That's right. And there's a real urgency to this transition this time around. And you know, there always is. People want to get moving and they want to see what's going to happen next. You know, they got nine weeks or so. But this time, it's different. This time it's like naming a defense secretary in a time of war, naming the treasury secretary.
There's a feeling on Wall Street that the new person and the team, the Council of Economic Advisers, those are the three people who advise the president. This team needs to be named very quickly and needs to get in there and immediately start working, alongside Treasury Secretary Henry Paulson on the bailout plan and how it's being implemented.
Also, we know that in just about nine or 10 days, there's this Global Emergency Economic Summit at the White House. And almost everyone on Wall Street is saying there needs to be -- the Obama administration right in there, right along with it, trying to figure out what to do next.
This is an urgency that is not going to go away. And we're going to definitely see in the jobs numbers. They're expecting maybe a half a million jobs to be lost between now and inauguration. So, there's no time to sit back and try to work this out. This is something that's got to be done quite quickly.
We also know he already has a brain trust that is, you know, pretty well-known brain trust. We know that Paul Volcker. He is the former Fed chairman who slayed stagflation in the '80s. He's been advising Obama. We know that Warren Buffett has been advising Obama.
ROBERTS: What about him for Treasury Secretary?
ROMANS: He has said that he'd like to see Treasury Secretary Paulson stay on. And Paulson, who's asked this every time he's ever interviewed, says, no, I will work very, very hard through January 20th, but that's the end of it.
(CROSSTALK)
ROBERTS: George Soros has also said take Henry Paulson and kick him to the curb.
ROMANS: Does he?
ROBERTS: Yes.
ROMANS: Well, so, you -- but you definitely --
(CROSSTALK)
ROBERTS: He says he's part of the problem that got us to where we are.
ROMANS: Is that so? Well, we know that the Treasury Secretary has put aside his suite of offices so that if the Obama administration wants to immediately put its team in there and work side by side and get into the details of the bailout and the implementation, that they can.
We know that people are talking about Larry Summers. He's at the top of the wish list for the people I have been talking to on Wall Street and the economists. Also Tim Geithner, who is the president of the New York Federal Reserve and he's been instrumental in AIG and the Bear Stearns bailouts. Although some criticize him for the failed rescue talks over Lehman Brothers.
CHETRY: This is a hot potato either way. I mean, --
(CROSSTALK)
ROBERTS: That could be a fly in a wall in the meeting between Rahm Emanuel and Larry Summers.
ROMANS: Yes. And Larry Summers, because one of the criticisms on Larry Summers is that he can be in politics. You know, that he can sort of -- there's the famous flap at Harvard, where he made comments about women's science and math aptitude that really -- that, you know, people were upset about. So -- but he has a lot of experience and he's a steady hand on the rudder. So, we don't know who it is yet. We're expecting this could be -- very, very soon, we'll find out. And it could be nobody that we've just mentioned. Who knows?
CHETRY: Usually is, isn't it?
ROMANS: I know. It really is.
CHETRY: Christine, thanks.
Well, the man in charge of troops in the Middle East also has some advice for the new man in charge of Washington. What General David Petraeus is saying to President-Elect Barack Obama about dealing with Iran and other pressing Middle East issues. It's 15 minutes after the hour.
Sarah Palin's next move -- the governor on her plan for 2012 and a possible back doorway to get to Washington.
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UNIDENTIFIED MALE: Such a thing is entirely possible.
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CHETRY: You're watching the "Most News in the Morning."
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CHETRY: Eighteen minutes after the hour. It's time to fast forward to see what stories will be making news later today. Two top automotive executives are going to be meeting with House Speaker Nancy Pelosi today. They're going to be discussing the auto industry's struggling finances and also the need for a second $25 billion loan. Now this meeting will include top officials from GM, Ford and Chrysler, as well as the head of the United Auto Workers Union.
Well, U.S. military will reduce the number of troops in Iraq this month. It comes after a continued decline in violence. Two brigades are going to be coming home from the country.
Meantime, the man in charge of all troops in the region, General David Petraeus, has some advice for President-elect Obama on how to work with leaders in the Middle East. CNN's Barbara Starr has the story from Afghanistan.
Barbara?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: John, Kiran, the morning after the election here in Afghanistan, we caught up with General David Petraeus. He told us he's already, like other commanders, getting ready for the transition to the new administration. We asked him flat out what he would tell President- Elect Obama about talking with Iran.
(BEGIN VIDEO CLIP)
GEN. DAVID PETRAEUS, COMMANDER, U.S. CENTRAL COMMAND: Well, I wouldn't go into specifics here, obviously. But, clearly, what is required is a comprehensive approach. It has to be an approach of partnership with the other nations in the region. All of them demonstrating a degree of unity, if you will, in response to potentially provocative actions by Iran.
(END VIDEO CLIP)
STARR: General Petraeus also made it clear, he favors a U.S. policy of engagement with countries throughout this troubled region -- talking to the Syrians, talking to the Taliban here in Afghanistan about laying down their arms. It may not be the U.S. military that does the talking, but he does believe there needs to be discussions. General Petraeus telling us he's already hearing from leaders throughout this region they believe this election was a historic moment for the U.S. on the world stage.
John?
Kiran?
ROBERTS: Barbara Starr for us this morning in Afghanistan. Barbara, thanks so much.
The House, the Senate and now the White House. Republicans are facing down a Democratic triple threat. How can the party regain power? Former presidential candidate Ron Paul joins us right after the break.
Rough road ahead.
(BEGIN VIDEO CLIP)
OBAMA: We may not get there in one year or even in one term.
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ROBERTS: Taking on the wars, the economy and health care. Frank Sesno on how the honeymoon might be over for Obama before it even began. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
JAY LENO, HOST, "TONIGHT SHOW WITH JAY LENO": How many saw the hologram? Did you see it? It was -- oh, yes. You know, it was a great idea. Apparently still haven't worked out all the kinks. I guess they had some kind of intergalactic glitch earlier in the day.
UNIDENTIFIED MALE: Intergalactic?
LENO: Yes. Show what happened when they did the hologram the first time.
WOLF BLITZER, CNN ANCHOR: Right now, I want you to watch what we're about to do because you've never seen anything like this on television.
(LAUGHTER)
LENO: Intergalactic, intergalactic. Oh, yes.
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ROBERTS: Yes, well, things didn't go quite according to plan when we were testing out the technology. But we put Wolf back together again and everything is fine now.
As we move ahead with technology, the election is moving the Republican Party. Did it move it, backwards, though?
Joining us now to talk about what happens next for the GOP, former presidential candidate and Texas representative, Ron Paul. He's in Clute, Texas this morning.
Congressman Paul, it's always good to see you. Thanks for being with us today.
RON PAUL, FORMER PRESIDENTIAL CANDIDATE: Thank you. Nice to be with you.
ROBERTS: Where do you think this country is going to be headed, let me ask you first of all, under an Obama presidency?
PAUL: Well, the same way it's been going now for the last eight years, because I don't think his policies are different. Although, the perceptions were different, and I think one thing that we could claim a little bit of victory for is that Obama was perceived as the peace candidate. He wanted to -- he was seen as wanting to get the troops out of Iraq. I don't think that's going to really happen. But at least that was the perception.
And that's actually the way Bush won in year 2000. He was complaining about Clinton's wars, and the Republicans were opposed to the war. But they lost that position after they got in office. So, I think that the Republicans have a long way to go. They lost a lot of credibility and they're going to have to rebuild it, but they're going to have to do a heck of a lot better than they did when they're in charge. And that's the whole problem. When they're in charge, they do a lousy job.
ROBERTS: Let me ask you this question. Where does the Republican Party find itself this morning?
PAUL: Well, I think it's in terrible shape. And it's going to take a long time. It took 40 years to get the Democrats out of power, you know, once before. I don't think it should take that long if they restate their principles and they probably will do a better job. But, right now, they're in very, very bad shape because they've lost their way. But they have to not just talk about the deficits. I think they have to understand foreign policy and personal liberties because they talk that way. They say, oh, yes, we're for personal freedom and we're for not going into these needless wars and all.
ROBERTS: And then they passed the patriot act and go into Iraq, right?
PAUL: Right. They do exactly opposite of what they say and what they won on. And over those 20 years, from Goldwater on up, in order to get in, they said one thing, then they went and said, oh, the whole thing is getting power and maintaining power. So, they started to act like D3emocrats, thinking, well, we're going to take away some of that Democratic support and we're going to have more power than ever before. And low and behold, they lost all credibility.
I think when the dust settles, we're going to find out that one of the reasons this campaign was so bad for Republicans. I bet you, a lot of Republicans just stayed at home because right now, I don't see tremendous number of young people turned out to vote for Obama even though that's the perception. I think the Republicans just got turned off because we didn't do the job that we were supposed to do. It's building credibility. It's trusting people and doing what we say. That's what we need. And that's what we didn't have these last eight years.
ROBERTS: Congressman, there's this secret conservative conclave that's going on today somewhere out in the hills of Virginia. A lot of party elders are getting together to try to figure out how to build a grassroots movement, the style of the Reagan grassroots movement. What would you suggest they do? If you were at that meeting, what would you be saying?
PAUL: It's interesting, I didn't get invited. Maybe I could have had some suggestions. We did attract a lot of young people. I would emphasize the importance of talking to young people. And they are open to the message of individual liberty, to self-reliance, taking care of themselves, getting rid of the nanny state. But of course, they are very open to personal liberties.
And also, they don't like these perpetual wars, like nobody likes them. But they're not going to talk about that. They're not going to talk about The Patriot Act and repeal The Patriot Act. They're not going to talk about a different foreign policy. And they're going to talk about balancing the budget once again. But how can you balance a budget on the back of sick people here at home on medical care? You got to balance the budget by stopping all this ugly spending overseas that is so perpetual and it's brought us to our knees financially. You can't solve a financial crisis without dealing with foreign policy.
ROBERTS: Congressman, your Liberty Pack supported 22 candidates in this election. Seven were elected. Two of the races are still too close to call. That's less than 50 percent performance rate. Are you happy with the outcome?
PAUL: I would say that's pretty good, in this day and age, especially since we're not, you know, the status quo. We're asking for revolutionary changes. We actually want these guys to believe in the constitution. Now, that's revolutionary. So, I would say we're doing pretty darn well. And we took some risky support for some of the candidates. And I think they're going to be paying attention, especially since the party leadership has lost credibility. So maybe the constitution still does have some merits.
ROBERTS: Well, Congressman, good to have you back in the Congress. Looking forward to the 111th Congress. And we'll keep following you to see what you get done. Thanks for joining us this morning.
PAUL: Thank you, John.
CHETRY: 29 minutes after the hour. A look at the top stories this morning. The presidential race is still undecided in North Carolina if you can believe it. Officials say that Barack Obama has about 14,000 more tallies than John McCain but there are 40,000 provisional ballots that are yet to be counted. Those ballots are cast when the voter's name doesn't appear on the precincts.
Also, transitions can be a dangerous time -- that's the message from Homeland Security Chief Michael Chertoff. He says America must be, quote, "extra focused on security during the period of change."
(BEGIN VIDEO CLIP)
MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: We'll have to be very careful with anything that might be a vulnerability, recognizing that we can't -- you know, there's no guarantee. We can't guarantee against bad things happening. But again, this is about making sure that we are extra focused during a period of change, which is naturally one in which sometimes there's an element of distraction.
(END VIDEO CLIP)
CHETRY: Well, we are finding out about a cyber attack that targeted both presidential campaigns. "Newsweek" reports both the McCain and Obama camps were targets of a sophisticated cyber attack by an unknown foreign entity. And that Obama's experts initially suspected it was Russian or Chinese hackers. The Fed says the attack was meant to gather info on policy positions to get a leg up on negotiations on the future administration.
Well, it's time to roll up the sleeves and get to work. President-elect Barack Obama now has 77 days to put together a government, picking his staff will be a major effort. And that's just the tip of the iceberg. President-elect will also have to begin work on his campaign promises. CNN special correspondent Frank Sesno joins me now from Washington with more on these priorities and this transition and really how it all works. Hey, Frank.
FRANK SESNO, CNN SPECIAL CORRESPONDENT: Good morning. Good morning, Kiran. Yes, you know, this is really interesting because Washington is digging in here where otherwise you might have time for people to digest what's happening. The transition headquarters is being put together. The transition staff is being put together. Some who worked closely with Obama in his Senate life and others who have been in previous administrations, such as Rahm Emanuel, who we reported has been offered the job of chief of staff, several others including Carol Brown, John Podesta or Bill Daley, Federico Pena part of the transition staff, all of them Clinton appointees and Clinton workers. This transition, Kiran, is the most consequential, I don't think there's really much question about that and the most uncertain since the 1932 transition when Franklin Roosevelt was taking over from Herbert Hoover. How this new president-elect maneuvers, how much distance he puts himself between Bush, the Bush administration and what's going on with the $700 billion bailout and all of that is going to say a lot about where he's going and how he's going there.
CHETRY: You know "Time" today writes with Emanuel and Podesta, Obama sought two of the hardest-hitting veterans of the Clinton administration, known for their deep Washington experience, savvy and no holds barred approach to politics. How does that square with the message of change that really electrified so many?
SESNO: Well, that's a very good question. How he's going to square the veterans he's bringing in with the change he's promised. But let's look at the backdrop of what he's dealing with. All right. So yesterday the New York Stock Exchange falls nearly 500 points. This is the kind of market tumult and turmoil he's dealing with. Today the business - the leaders of the auto industry are here to meet with Nancy Pelosi. The U.S. auto industry along with a lot of manufacturing has all but tanked. Layoffs are up something like 80 percent from just a year ago. A share of the Ford Motor Company yesterday closed at $2.09 a share.
Overseas, we've already got testing coming from the Russian president. He said, get those missiles out of Poland, that the Bush administration has put in to be a missile defense and Medvedev who you see there says if you don't move your missiles, maybe we'll deploy some of ours. So the testing both here at home and abroad has already begun, while the transition team is being put together. What an immense task this transition is going to face.
CHETRY: A lot about the fact that Treasury Secretary at this time is such a huge appointment. What are some of the other most urgent appointments that need to be decided?
SESNO: Well, it's the treasury, it's defense and the Secretary of State. Those are going to be the big three. Attorney general is the other - is the fourth major power appointment in the cabinet. Putting the White House team together is critical as well. That's why with the Rahm Emanuel choice is so interesting. Is the president- elect going to be moving toward the center right which is often where Emanuel is seen. What kind of relationship are they going to have with Nancy Pelosi and Harry Reid who are seen as you know very fierce liberals up on the hill. Is Emanuel going to be the peacemaker or the enforcer because he's a very tough personality. So this is kind of the personality and the power game that we're watching come together here in Washington.
CHETRY: Very interesting on the campaign I'd like to say that the headquarters of Obama was the no drama Obama. So maybe things change when you get to Washington though.
SESNO: They always do. They always do. This is where reality hits the road.
CHETRY: Exactly. Frank Sesno, great to see you this morning. Thanks.
SESNO: Likewise, thanks.
JOHN ROBERTS, CNN, ANCHOR: Just in to CNN this morning. New numbers on unemployment just released. Our Christine Romans joins us now. Christine we are talking about this all morning, how is it looking?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It looks like it's been looking for some time. We have 481,000 people lining up for the first time for unemployment benefits last week. That means the first trip to the unemployment office they've ever taken, 481,000, anything above 400,000 is considered a sign of significant deterioration in the economy and the labor market. And last week 485,000 people lined up for the first time for jobless benefits. That number was revised higher. The four-week moving average smoothes out all of the noise in the number. That's about 477,000. These are numbers running much, much higher than they were a year ago when they were in the 330,000 to 350,000 range. They're seen as kind of a foreshadowing for the big number tomorrow. That's the monthly jobs report for October. It is expected maybe 200,000 plus jobs have been lost in the economy in October. Everything from drug sales reps to bankers, to auto workers, manufacturing. Where are we seeing the jobs growth? We're going to get some key details on this tomorrow. But in the government, education, and health care. So John and Kiran, another report showing what we've been telling you time and time again, that the labor market is weak here. And remember, economists are saying another half million jobs could be lost before the inauguration.
ROBERTS: All right. Christine Romans for us this morning. Christine, thanks so much.
Sarah Palin, governor, she is back in Alaska. But could she soon become Senator Palin or what about a candidate in 2012? We'll tell you what she's up to coming up next. 35 minutes after the hour.
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ROBERTS: Just in to CNN this morning. News from the middle east. In a glimpse of what might be awaiting Barack Obama. CNN's Zain Verjee joins us now. Good morning, Zain. What do you got?
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Good morning. Secretary of State Condoleezza rice is in the Middle East. It's her eighth trip to the region. And she has today conceded that Israeli Palestinian peace deal by December 31st, as he said she was going to work hard to attain, is not going to happen. She says though that there is momentum and that it should be pursued. December 31st was the deadline that was set in Annapolis when they had that summit. So you know it doesn't really come as a surprise. A lot of critics has said, well, you know, despite Secretary Rice's real efforts here, it was just too little too late and that neither presidential involvement from day one.
ROBERTS: Well, you know, I mean people have been saying for weeks now because of the fact that the Israeli government is in disarray -
VERJEE: Right.
ROBERTS: -- that it's impossible to get anybody together on a peace deal.
VERJEE: Right. The Israeli government is in disarray. The Palestinian leadership is weak. Hamas is still a player there. To get anything done in the region, you have to find a way to deal with the power house there and that is Hamas. Also, the United States is in a situation of political transition. So many different ducks have to get lined up before they can be any real momentum. President-elect Obama has said that the Mideast would be a priority of the Obama administration.
ROBERTS: What are the chances that he could do this?
VERJEE: Well, a lot of experts say that you need presidential involvement from day one to make this happen. I mean it is so difficult, it's so challenging. But the only way would be to come off as a fair dealer between both sides. He has to come off, protect Israel's security needs as well as come off to the Palestinians as being a fair guy and involvement from day one. That's the key.
ROBERTS: You're not getting past to the next administration. One more thing on his plate.
VERJEE: One more thing, high expectations.
ROBERTS: Zain, thanks so much for that.
VERJEE: Sure.
ROBERTS: 20 minutes now to the top of the hour.
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CHETRY (voice-over): Sarah Palin's next move, the governor on her plan for 2012 and a possible back doorway to get to Washington.
UNIDENTIFIED MALE: That is entirely possible.
CHETRY: You're watching the most news in the morning.
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DAVID LETTERMAN, HOST, "THE LATE SHOW WITH DAVID LETTERMAN": Right about now Joe the plumber is meeting with his transition team. They're going to help ease him from obscurity back to oblivion.
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CHETRY: You can't really say obscurity can you? Everyone knows Joe the plumber. Well, David Letterman having a laugh at Joe the plumber's expense. But one political figure who is not likely to disappear into oblivion is Sarah Palin. In fact, in Palin's hometown of Wasilla, Alaska, you can already find Palin 2012 t-shirts. So our Carol Costello is looking into it.
ROBERTS: We got those on "Saturday Night Live."
CHETRY: For this morning, I was going to say parody of course last week on "Saturday Night Live" as well. But you know there are a lot of people you talk to in the republican party who say, you know what, she's certainly going to be a player in the future.
CAROL COSTELLO, CNN CORRESPONDENT: You can't rule it out. Right? Look, anything is possible in the world of politics. But let's face it, not many republicans can attract 25,000 people. And if Palin can turn charisma into cash for the party, could she run? You bet you.
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SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Governor Sarah Palin.
COSTELLO (voice-over): In just ten weeks, a blink of the political eye -
PALIN: A hockey mom.
COSTELLO: She has moved from on obscurity -
AMY POEHLER, "SNL" CAST: All the mavericks in the house, put your hands up -
COSTELLO: To cultural icon -
KATIE COURIC, TV HOST: Specific example in his 26 years -
COSTELLO: To defeated candidate.
PALIN: I'll try to find you some and I'll bring them to you.
COSTELLO: Now what?
Wither Sarah Palin? She was no shrinking violet when it came to selling herself on the stump, and America noticed.
TINA FEY AS SARAH PALIN: OK. Listen up everybody, I'm going rogue right now. So keep your voices down. Available now, we've got a bunch of these t-shirts.
COSTELLO: Analysts say it is possible. And on Tuesday, Palin did not nix the idea of a presidential run in 2012, saying that as Alaska's governor, she is a uniter.
PALIN: You know, politics, so much partisan.
COSTELLO: And observers say if Palin can broaden her appeal beyond conservative republicans, she would be hard to ignore in 2012. The real challenge for Palin is to maintain her star appeal, something tough to do for losing VP candidates.
UNIDENTIFIED MALE: In 2004 who was John Kerry's running mate?
UNIDENTIFIED FEMALE: Um, Lieberman.
UNIDENTIFIED FEMALE: Give me a hint.
UNIDENTIFIED MALE: John -
COSTELLO: Edwards, it's John Edwards. There is one sure way Palin can avoid Edwards' fate and remain on the national stage. Here's the deal. If Senator Ted Stevens is re-elected but forced out of office because of his felony convictions, although it might be challenged in court, Palin, as Alaska's governor, could try appointing herself as interim senator.
COSTELLO: Possible, right?
JOHN AVLON, POLITICO, COM: It sounds like the beginning of a Victorian novel, yes. You know, such a thing is entirely possible and presumably that time in Washington would be statute raising and give her more experience in national and international policy which has been where she has really been weak.
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COSTELLO: Now, keep in mind it's very fun to speculate but even if Palin did appoint herself to replace Stevens, by Alaska law, she would have to run in a special election after 90 days. It's pretty hard to believe she would give up her governorship on the chance that she would win but analysts say the eventually if she wants to run for president, a run for the Senate at some point would be a good thing. Maybe a 2012 run for president might be a little too soon for her.
CHETRY: You know, the punditry always goes back and forth from this issue expanding the base versus playing to the base and if they were to pick Sarah Palin in 2012 or any future role, what would that do to expanding the base?
COSTELLO: That's a good question. A lot of people - but keep two things in mind. Rudy Giuliani was a moderate and he didn't do so well in the republican primary. And if you take a look at social issues on the ballot this time around, gay marriage bans passed, even in California. Affirmative action bans passed. This is (inaudible) a Brian Todd story in the last hour, there is room for both conservative and more moderates in the republican party and you can't count Sarah Palin out, not when she as well liked as she is by that conservative republican base.
CHETRY: All right. Thanks so much. Carol, good to see you.
ROBERTS: It's 47 minutes after the hour. CNN NEWSROOM just minutes away now. Fredericka Whitfield is at the CNN Center this morning with a look at what's ahead. Hi, Fredricka.
FREDRICKA WHITFIELD, CNN ANCHOR: Hello to you, John. Here's a check out what we're working on in the NEWSROOM. Transition to power, Barack Obama prepares for presidency. Who will be on his team and what will be on the agenda? An economic signs may mean more worry lines. Wall Street braces for a low open after the market's latest plunge.
And germ gender gap. Women with the upper hand when it comes to bacteria. The icky details when we get started at the top of the hour on CNN. John.
ROBERTS: Some pretty surprising findings there.
WHITFIELD: OK.
ROBERTS: People will be interested. Fred, thanks so much. See you soon.
Well, if you're like us, you've been up at all hours for the last few months watching history being made. What can you do to catch up on some much-needed sleep? Our Dr. Sanjay Gupta joins us with some tips on how to count the appropriate number of sheep.
ROBERTS: And Barack Obama's biggest supporter celebrates his big victory. Oprah Winfrey has been called a king maker but is she also a president maker?
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MAN: A little bit... not much.
WOMAN: What about you?
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Not as much as I'd like.
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ROBERTS: Kiran, I know the feeling. Welcome back to the most deprivation in the morning. President-elect Barack Obama certainly could news a nap and so could one of our viewers.
CHETRY: That's right at CNN, the doctor is always in. Joining us from Atlanta with your questions. Chief medical correspondent -
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Wake up, guys.
CHETRY: You know what I've got to say, today went by in a wink, in a blink of a an eye. Nine hours yesterday.
GUPTA: Unbelievable. Great job, by the way.
CHETRY: Thanks, Sanjay. Glad to have you back with us. C. Murray in Atlanta gets the first question this morning. He writes, "I work 12-hour nights and I find it difficult to get restful sleep. In the daytime, I average three to four hours a day while I'm working steadily." Maybe John wrote this. C. Murray a.k.a. John Roberts, "please offer tip on getting more sleep during daytime hours."
GUPTA: Well, obviously you're asking a question that a lot of people ask. And I have to tell you, you know, a lot of morning anchors, obviously, a lot of people at CNN have the same sort of problem, C. Murray. You know I actually went through asleep study some time ago because I think these sleep studies can be pretty useful trying to figure out what exactly is happening with you. There you are, you get all these monitors put on your head and they monitor not only how much sleep you're getting but the type of sleep you're getting as well. now this is sort of a last step. A lot of people aren't going to need this much but I did learn some important things. For example, if you're getting six hours of sleep a night for six days in a row, that's seventh night is almost like you got no sleep at all. So that's something to keep in mind. It's also appropriate if you can to split up your sleep. So for you, the writer from Atlanta, you could split it up into four-hour chunks. You know four hours during the afternoon and four hours in the evening.
A couple more tips, because again, so many people asking about this. As far as trying to get the best sleep, keep your bedroom as dark as possible. That may go without saying, but also, the temperature in the bedroom very important, between 68 and 72 degrees appears to be the ideal temperature. And try not to use any stimulants, coffee or any kind of television right before you go to bed.
ROBERTS: Nice, Doc.
CHETRY: You were sleeping in your Bruce Springsteen bandanna, I love it.
GUPTA: You like that. That's just for you. Yes. I knew I might take some ribbing for that one.
ROBERTS: Sanjay, the dog there. Our next question comes from a viewer on the street. Let's listen.
UNIDENTIFIED FEMALE: We have a couple of women in my family that is dealing with fibroids and I was just wondering if it was genetic or what brings that on to certain women?
ROBERTS: A good friend of mine also dealing with this problem, Sanjay. What's the answer to the question?
GUPTA: Well, you know fibroids, first of all they are benign tumors of the uterus. A lot of people know this because they have heard that people that have these or have it themselves. So they're benign. There's nothing you know sort of cancer story about here. They do have a racial component. 70 percent to 80 percent of African- American women will get this at some point in their lifetimes. Other times, it may be inconsequential that they may not even know that they have these fibroids. But it does appear to have a racial component. It also seems to increase during certain periods, hormonal spurt. So when women are going through hormonal changes, the fibroids can grow and they can shrink back and forth. We know certain things can help. Leafy green vegetables with lots of folate can help, limiting your overall alcohol intake and smoking as well. So there are things that you shouldn't be doing anyways, those may help but if they become problematic or if the woman has trouble with pregnancy, there are medical procedures that can be done as well.
CHETRY: All right. And our final question comes from Laila in Tampa. She writes, "I'm 27 and would like to have babies some day. I heard about the importance of folic acid even before conception. I would like to know what else is recommended to prep for pregnancy."
GUPTA: Laila, first of all, congratulations. You know, folic acid as you mentioned is one of these great things that is greatly decreased the number of genetic defects in babies, neural tube defects specifically of the brain and the spinal cord. So it's been a great boon towards having babies that are healthier. A couple of things to keep in mind, if you can, and Kiran probably knows this as well as anybody. About four months before you plan on getting pregnant is when you really need to start thinking about this sort of thing. Including taking a prenatal vitamin up to four months ahead of time. Obviously you want to avoid things like alcohol, make sure you're getting plenty of sleep and really get on the diet that you're going to maintain throughout your pregnancy. But I think the key here is really, really planning ahead, up to four months beforehand. Caffeine is something we've talked about in the past. We get a lot of questions about this. Having more than two cups of coffee a day does increase your risk of miscarriage according to several studies that we've investigated. So try and bring down your caffeine intake as well, Laila. Good luck.,
ROBERTS: Sanjay, good information this morning, Doc. Thanks so much for that. And don't if you've got questions for the good doctor, head to our website at CNN.com/am, click on the links and he'll be back here next Thursday to answer all of your questions. 55 minutes now after the hour.
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CHETRY (voice-over): The Oprah effect -
UNIDENTIFIED FEMALE: Anything and everything Oprah does affects America.
CHETRY: Some say she helped Obama into the White House. But does Oprah have plans of her own?
ALINA CHO, CNN, CORRESPONDENT: Would you consider an ambassadorship?
OPRAH WINFREY, TV HOST: Would I consider an ambassadorship?
CHETRY: You're watching the most news in the morning.
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ROBERTS: Welcome back to the most news in the morning. Oprah Winfrey certainly holds an awful lot of power. So how much did her early support mean to Barack Obama's campaign? Our Alina Cho is here now with a look at all that. Good morning.
CHO: Good morning. We're talking about the Oprah effect. You know, some people believe she was worth a million votes. And you know just by saying she liked him, Oprah can sell books, of course. She can sell products. She can sell just about anything.
ROBERTS: She can even sell Ali Velshi.
CHO: She can sell Ali Velshi. And she did. But did she sell a candidate? Did she make him a president? We went looking for answers.
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WINFREY: I mean, it brought tears to my eyes because I thought, yes, that is it. It feels like America did the right thing.
CHO (voice-over): No doubt Oprah Winfrey has the proverbial Midas touch, but can she? Did she actually persuade Americans to vote Obama?
UNIDENTIFIED FEMALE: I think anything and everything Oprah does effects America, really the world.
UNIDENTIFIED MALE: She gave him an audience that helped get him off the ground.
CHO: It was May of 2007 that Oprah officially helped Obama get off the ground. By the end of the year -
WINFREY: And there's only one choice we get for president of the United States, and if you're going to choose, that choice ought to be Barack Obama.
CHO: Her first foray into politics. But not everyone was happy about it. The blogs went crazy, calling her a traitor, accusing her of choosing race over gender. Hypocrisy at its finest.
WINFREY: 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.
CHO: Two Maryland graduate students even came up with a formula, looking at subscriptions to "O" magazine and sales of Oprah's Book Club. They compared the data with votes cast for Obama and surmised Oprah's endorsement was worth more than a million votes. A million votes?
ERIC OLIVER, UNIVERSITY OF CHICAGO: Whether or not she gave him half a million or a million or two million votes, it's just impossible to say.
CHO: Others call Oprah the queen of king makers.
REP. JESSE JACKSON, JR. (D), ILLINOIS: Oprah in her own way is not only part of the culture of America, she's also part of the body politic of America.
CHO: So the question, with President-elect Obama heading to Washington, will the queen of talk follow him?
CHO: You've got this little thing called the "Oprah Show."
WINFREY: Yes.
CHO: Would you consider an ambassadorship?
WINFREY: Would I consider an ambassadorship? That is - I have "The Oprah Show." I can honestly say this, I have no agenda. I have no agenda.
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CHO: As I said yesterday, she didn't say no. Of course, John says hold out for France. Most people - I agree. Most people we talked to, the experts and the people on the streets believe Oprah was key early on during the primaries -- remember Iowa.
But then she really moved from out front campaigner to quiet -- fund-raiser, rather. And there may be a reason for that, some say. Some political watchers say she may have done that because presidential candidates, guys, don't necessarily want to be associated with Hollywood too closely, because Hollywood, of course, is seen as being out of touch.
But then we asked a college professor, can Oprah actually hurt you by endorsing you, and he said no. No. Who doesn't love Oprah? So, you know.
ROBERTS: I heard she's endorsing this show.
CHETRY: Yes.
CHO: I think she already has. No, she's a big fan of CNN. That's part of the reason why she talked to us.
ROBERTS: Alina, thanks so much to you.
CHO: You bet.
ROBERTS: Thanks so much for joining us on this AMERICAN MORNING. We will see you back here again tomorrow.
CHETRY: Yes. Right now here's "CNN NEWSROOM" with Fredericka Whitfield.
