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American Morning
Three Senate Races Still Undecided; Eliot Spitzer Cleared of Criminal Charges; Another Dive on Wall Street; Big Winners and Losers From the Hard Fought Campaign; Democrats Jockey for White House Jobs
Aired November 07, 2008 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Coming up here on 8:00 in New York and we're tracking breaking news this morning. Hurricane Paloma is roaring across the Caribbean right now. The category one storm packing winds of 80 miles an hour. The center of the storm is about 85 miles from the Cayman Islands. Forecasters warned that Paloma could slam into Cuba as a dangerous category three before heading back into open waters.
And it may not get there, but the democrats are inching closer to a filibuster proof majority of 60 seats in the Senate. They now have 57. After Oregon's republican incumbent Gordon Smith conceded defeat to democrat Jeff Merkley. The Three Senate races are still undecided. GOP incumbents in Alaska, Georgia, and Minnesota are still trying to hang on to their seats.
Federal prosecutors are deciding not to bring criminal charges disgraced former New York Governor Eliot Spitzer. Spitzer was caught on a wiretap arranging payments for a high-priced call girl. It forced him to resign back in March. But prosecutors found no evidence that Spitzer misused public or campaign funds for sex. Spitzer issued a statement apologizing and applauding the, quote, "impartiality and thoroughness of the investigation."
And back to our top story. Now, the global financial crisis deepening this morning. Another dive on Wall Street. More than 400 points yesterday and right now, markets around the world are feeling Wall Street's pain. All of these are a reminder of the challenges ahead for President-Elect Obama who today, after meeting with his top economic advisers, will hold his first news conference since the election. And there is certain to be no shortage of questions about how he plans to tackle this financial crisis.
CNN's Susan Malveaux is live in Chicago for us right now with more on what we can expect.
Hi, Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hi, Kiran. Well, we expect that Barack Obama will give us essentially an update on what he's been up to for the last two or three days or so. He is sitting down with his economic team this morning to really try to show the American people that he's serious about tackling this financial crisis, that he's serious about putting his Cabinet together.
Just yesterday, he announced his chief of staff pick, Illinois Congressman Rahm Emanuel, a person who Barack Obama says knows how to get things done inside Washington. We expect that there may be some other personnel announcements, perhaps his chief strategist, David Axelrod, very much looking at the possibility of following Barack Obama to Washington as some sort of senior adviser, as well as the Communications Director Robert Gibbs, who's a very likely candidate as press secretary.
All of those things will be touched on today. And obviously, Kiran, a lot of questions about what are the specifics that Barack Obama is ready to do from day one as president, or perhaps even before he takes that oath of office. What is he ready to do in the next couple of weeks when it comes to Congress and an economic stimulus package -- something he has been pushing beforehand? How hard will he push it now? And who will be his economic team?
Kiran?
CHETRY: And a lot of questions about who he's going to tap for Treasury secretary. What are you hearing about that?
MALVEAUX: Interestingly enough, a lot of the people, who are actually he's going to be meeting with this morning, people he's reached out to before, are possibilities for the secretary of Treasury position.
One of those people that people are talking about, former Treasury Secretary Larry Summers. He is somebody who Barack Obama has reached out for advice over the last month or so. Another person is the former Federal Reserve Chair Paul Volcker -- another person that is going to be in that meeting today. And then finally third person, Timothy Geithner. He's the President of the Federal Reserve Bank out of New York. And he has been really a key figure since September in trying to manage this whole bailout plan and what to do when it comes to Wall Street.
Kiran?
CHETRY: Suzanne Malveaux for us this morning in Chicago. Thanks.
We also have a programming note. You can see Barack Obama's first news conference as president-elect right here on CNN and cnn.com. We will have it live for you, 2:30 p.m. Eastern Time.
ROBERTS: We are now less than half an hour away from the release of that all-important jobs report. Let's bring in Christine Romans who's "Minding Your Business" for you today.
Good morning, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And 27 minutes until that jobs report comes out, expected to show another 200,000 jobs lost in October. We have seen 3 quarters of a million jobs lost. And futures are up this morning. They are up after a really harrowing couple of days. So, it just shows you, it's just unpredictable. This market has been -- this is the new normal, an unpredictable market. ROBERTS: And they're expecting this bad jobs report.
ROMANS: And they're expecting a bad jobs report. The market is up. So, we'll see if that can hold on. Well, you know, this is a market that, honestly, is reflecting kind of the crisis that's happening in the economy.
CHETRY: The other thing, too, is that Wall Street likes when people say -- when companies say they're cutting their workforce, right? I mean, no one else does, but --
ROMANS: Well, and Ford, we just heard from Ford that Ford is cutting its workforce. 10 percent of the salaried labor cost will be cut. We don't know exactly how many jobs that is the 10 percent there. And then they're cutting another 2,600 hourly jobs. Car sales in the quarter plunged 25 percent. I mean, Ford and Chrysler and GM, these companies are burning through cash. You know, those car sales dropping 25 percent in a quarter, that's just pretty remarkable.
So, this is the kind of thing that Barack Obama and his team will be talking about today. I mean, the car industry is such a backbone of manufacturing in this country. We'll see how many jobs are lost in this employment report and if it reflects sort of what we've been seeing from the automakers and others.
ROBERTS: Yes, it's been bad for automakers. But in terms of this volatile market, maybe we should just treat it like a petulant child, give it a time-out, ignore it for a while, let it calm down.
ROMANS: Well, listen, the only thing we can really control is our job, right? So, that's what I think -- you know, sometimes we miss that the job is really the most important thing here.
ROBERTS: Right. Christine, thanks so much.
CHETRY: Well, Treasury secretary may be the most critical Cabinet position that President-Elect Barack Obama will have to fill in the coming days. But as CNN's Ed Henry tells us, this transition to power has led to a kind of feeding frenzy among Democrats jockeying for other key jobs in the administration.
(BEGIN VIDEOTAPE)
ED HENRY, CNN WHITE HOUSE CORRESPONDENT (voice-over): To the victor belong the spoils, and after eight years out of the White House, Democrats want to be spoiled with high-profile jobs.
UNIDENTIFIED MALE: For every senior job, there's probably 10 qualified people and it's hard to be the person to tell the nine that they're not the number one pick.
HENRY: Senior Democrats say John Kerry is jockeying to be Secretary of State and has a good case after endorsing Barack Obama over Hillary Clinton.
SEN. JOHN KERRY (D), MASSACHUSETTS: The next president of the United States.
HENRY: But some Democrats worry he can veer off message, just like Vice President-Elect Joe Biden, which keeps New Mexico Governor Bill Richardson and Republican Chuck Hagel in the hunt.
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: We're going to have to cut from programs that don't work in order to provide health care.
HENRY: Health care is another top priority. And a natural fit in the Cabinet would be well-respected former Senate Majority Leader Tom Daschle. But Democratic sources say Howard Dean, a medical doctor who had a strong run as Democratic Party chair, is hungry for the job. Plugged-in Democrats say there's also serious talk of Obama briefly keeping President Bush's Defense Secretary Robert Gates on board to show the new president is not just looking for yes men.
UNIDENTIFIED MALE: I think you need a mixture of loyalists, people that President Obama trusts and works with, and people from the outside, who bring a different perspective, who can question his decision, question his judgment.
HENRY (on camera): One advantage Robert Gates has is he's not lobbying for the job. Oftentimes, the insiders who campaign too hard end up not getting the post.
John?
Kiran?
(END VIDEOTAPE)
CHETRY: The first daughters.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: One of the negatives of the White House is that it's very much a fish bowl.
(END VIDEO CLIP)
CHETRY: It may have a swimming pool and its own bowling alley, but life inside the White House isn't always easy for kids.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There's something that Sasha will say and something Malia will say or do, and they'll be remembered for the rest of their life.
(END VIDEO CLIP)
CHETRY: The pressure of living in the political spotlight. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
CONAN O'BRIEN, HOST, "LATE NIGHT WITH CONAN O'BRIEN": Yesterday, apparently First Lady Laura Bush called Michelle Obama and invited her and her young daughters to the White House. Isn't that nice? Yes, yes. And Laura -- Laura Bush told Mrs. Obama while I give you a tour, the girls can watch "Sponge Bob" with the President.
(END VIDEO CLIP)
ROBERTS: A change is coming to the White House. For the first time in decades, young children will be growing up at 1600 Pennsylvania Avenue. So, what will life be like for Barack Obama's two daughters Sasha and Malia? Here's CNN's Randi Kaye with a look.
RANDI KAYE, CNN CORRESPONDENT: Good morning, John and Kiran. Talk about an extreme home makeover, the Obamas are moving into a new house, the White House.
(BEGIN VIDEOTAPE)
DOUG WEAD, AUTHOR, "ALL THE PRESIDENT'S CHILDREN": One of the negatives of the White House is that it's very much a fish bowl.
KAYE (voice-over): A fish bowl presidential historian Doug Wead says that can feel like a trap for the president's children. For the most part, Sasha and Malia, 7 and 10, have been shielded from the public, limited appearances and one interview which their dad says he regrets.
SASHA OBAMA, PRES. BARACK OBAMA'S DAUGHTER: When you come home, you know, you have your big gigantic bag and you leave it them under. Sometimes I tripped over it.
KAYE: The Obamas' daughters will have round the clock secret service protection, but not even that can fend off unwanted attention.
WEAD: There's something that Sasha will say and something Malia will say or do, and they'll be remembered for the rest of their life.
KAYE: Wead says the Roosevelt kids were famous for dropping water balloons onto foreign dignitaries, and unleashing their pet snake in the dining room.
John F. Kennedy Jr. was known for hiding under his father's desk. The Bush twins, Wead says, will be remembered for underage drinking.
13-year-old Noah McCullough interviewed dozens of first kids for his books by the same name.
NOAH MCCULLOUGH, AUTHOR, "FIRST KIDS": If you flunk that huge math test, then it's on the front page of the newspaper the next day.
KAYE: One of the first big decisions, will it be public or private schools?
WEAD: If they send their child to a private school, they will be called elitist and hypocritical for betraying the public school system.
KAYE (on camera): There are advantages to living in the White House, too. It has a bowling alley, a swimming pool and its own movie theater. World leaders and celebrity stop by all the time. And the biggest Easter egg hunt in the country takes place right on the front lawn. What child wouldn't love that?
(voice-over): But like those before them, Sasha and Malia will have to endure their father's critics. And there may be pressure as they grow up to do something as important as their father did.
MCCULLOUGH: John Quincy Adam's kids mostly went through alcoholism and addictions to different things to kind of soothe the pain of not being able to live up to their father's expectations.
My best advice to Sasha and Malia Obama is to just have fun. Be a kid.
KAYE: Michelle Obama is determined to keep things real for her daughters.
MICHELLE OBAMA, WIFE OF SEN. BARACK OBAMA: I'm a mother first and I'm going to be at parent-teacher conferences, in where I'm going to be the things that they want me to attend. I'm not going to miss a ballet recital.
(END VIDEOTAPE)
KAYE: So much attention. What all Sasha and Malia wanted out of this election was a new puppy promised to them, win or lose.
John?
Kiran?
ROBERTS: Analysts say they are going to get that dog, as well.
CHETRY: So cute. Love it.
ROBERTS: Now, earlier on, we'd asked you to e-mail us your suggestions for the type of puppy that the Obama should bring to the White House. We got a great response. You want to read some of this.
CHETRY: Well, I have a Boston Terrier, myself, so Rachel who writes, "I think they should get a Boston Terrier." Don't do it. Don't do it. You can't control them. No, I'm kidding, they're adorable. She says, "I think they should get a Boston Terrier, as it would be patriotic. Boston's are the first American dog breed -- that is true -- and they always have a tuxedo on for those fancy occasion. And they're great with kids. Of course, I also think they should go to a shelter and adopt."
ROBERTS: G.B. Hicks (ph) writes us this morning. "The Obamas need to get a Labrador Retriever. Their temperament matches the "calmness" of the Obama Family. Their loyalty is unmatched, very friendly, perfect for the White House." I've got a Golden Retriever. And it's the most laid back dog in the history of the world.
CHETRY: Yes. One hiccup in all of this, though, is that they're -- and look, how gorgeous -- is that, someone's allergic. So, they can't get a dog that has fur.
ROBERTS: Oh.
CHETRY: That's the problem.
ROBERTS: Well, that would speak to the poodle or cavapoo, right?
CHETRY: Bichon Frise. Yes, they can only get certain types of dogs. Anyway, Drew writes, "I really don't care what kind of dog they get, as long as they name it, Maverick." Great sense of humor, Drew. Thank you for being one of our --
ROBERTS: And if you're playing a drinking game, there's one for you.
CHETRY: Exactly. 45 more minutes.
Barack Obama made history, but women and the little guy also made some major strides. We're going to take a look at the winners and the losers.
And we're also tracking breaking news in the Caribbean. Hurricane Paloma picking up speed and predicted to become a dangerous storm. We're going to find out who should be concerned at 13 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Oh, yes. We've got to get that Florida feeling this morning. 56 degrees, but nice and clear as we wake up Jacksonville this morning. Good morning to you all. Going to be in the mid-70s today with lots and lots and lots of sunshine. Pretty good place to be.
CHETRY: How about it? Yes, I'd love to be there right now. Well, Rob Marciano is in New York City, today, dropping by, giving us a little surprise visit.
What are you doing in town?
ROB MARCIANO, CNN METEOROLOGIST: You know, just -- I thought you guys would be lonely. There's been so many people up here, so many political pundits and now it's like emptiness syndrome for you guys. So, I figure out I come up and say --
(CROSSTALK)
ROBERTS: The kids have left for college.
CHETRY: Yes, all 15 of them. MARCIANO: It's good to see you, guys.
CHETRY: Good to have you.
ROBERTS: It was a lot more than that.
(WEATHER REPORT)
ROBERTS: 17 minutes now after the hour.
Campaign report cards. What do Carl Rove and Joe Lieberman have in common? A look at the big winners and losers from the hard fought campaign. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Well, no losers inside that control room. That's for sure. But sometimes even the losers are winners, even though a woman didn't make it to the White House. It was a still pretty good campaign for females. Women, however, are just one example. Joining me now with a look at all of the winners and some of the losers, our Carol Costello this morning.
Good morning, Carol.
CAROL COSTELLO, CNN CORRESPONDENT: Good morning, John.
Yes, we have to look at the losers, too, because there were losers, big time, and there were surprise winners. I asked some of our many political analysts here at CNN to weigh in, and here's what I came up with.
Let's start with a winner, shall we? Winner number one. Actually, I should say winners number one. Internet donors, the little guy won. Their cash, even in amounts so small is $5 to $10 added up, beating out big traditional donors and electing Barack Obama. Get this, more than 3 million people donated to Barack Obama's campaign and in the process they helped to change the landscape of presidential fund raising.
Winner number two, women. I know what you're thinking. John, mentioned it. But consider this. This year, both presidential candidates had to take women voter seriously. Hillary Clinton did not make it to the White House, but her candidacy forced politicians to take notice. Now, that's a big part of the reason Republican choose Sarah Palin. And who could forget Barack Obama actively kissing up to women after Clinton left the stage?
Also, this election proved once and for all, women don't all think with one big brain and we don't back candidates just because they're female. Three women proved that. Missouri Senator Clair McCaskill, Kansas Governor Kathleen Sebelius and the Arizona governor. They endorsed Barack Obama way back in January, support that ended up being crucial to his campaign.
Winners number three, Nancy Pelosi and Harry Reid. Who would've thunk it? Their approval rating, they're in the toilet, yet they expanded their base in the House and Senate. Wow. Next test, getting their members behind them and cutting out the partisan rhetoric so a bill can actually become law in less than three centuries.
Now for the losers, topping the loser list, Senator Joe Lieberman. His political future with Democrats on the line. He could lose his chairmanship of the Homeland Security and Government Affairs Committee. Democrats quite upset with him because he broke party ranks and threw his support behind John McCain, and then he criticized Barack Obama on national television during the Republican convention. For the moment, he awaits his fate.
Losers number two, gay and lesbian couples. This election day was a great big ouch for them. California, Arizona, and Florida, all passed laws banning same-sex marriage, which left 16,000 California gay couples wondering if their recent marriages will still be considered valid under state law. Also, at Arkansas, voters passed an initiative banning gay couples from adopting children.
Losers number three, Karl Rove, the 527s, the swift voters, the political of personal distraction, did not resonate this time around. Voters really did get sick of the attacks. They had bigger issues on their mind like, you know, losing their homes. Could it be the end of negative campaigning? I don't think so.
One more thing, John, we must mention Hillary Clinton, both winner and loser. She lost the primary, but she certainly gained stature. She was an unlikely hit with blue-collar male voters, for example, and she is no longer tied to Bill Clinton. She is a power in her own right. And there you have it.
ROBERTS: I think she's going to become a force in the Senate in these years to come.
COSTELLO: That's what people say.
ROBERTS: Carol Costello --
COSTELLO: Her voice will be heard because of her popularity.
ROBERTS: Definitely will. I think she's got a bright future there.
Carol Costello for us this morning. Carol, thanks so much. It's now 23 minutes after the hour.
The new Democrats. An excited base and a lock on power in Washington.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The biggest thing you need to do is what he said he was going to do last Tuesday night.
(END VIDEO CLIP) ROBERTS: Party Chairman Howard Dean, live, on what we can expect to see tackled first in the New Year. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
(BEGIN VIDEO CLIP)
DAVID LETTERMAN, THE LATE SHOW WITH DAVID LETTERMAN: Obama is busy putting together his presidential cabinet -- presidential cabinet, McCain -- John McCain, Senator McCain is putting together his medicine cabinet. Maalox, Metamucil, Polident and on and on and on.
(END VIDEO CLIP)
CHETRY: Wow. Letterman had to add insult to injury, huh? Well, the Democrats' campaign strategy led not only to Barack Obama's victory, but also to a widening majority in Congress. But what now? Can they lead as well as they campaigned?
Democratic National Committee Chairman Howard Dean joins me from Washington.
Great to see you this morning, Chairman Dean.
HOWARD DEAN, CHAIRMAN, DEMOCRATIC NATIONAL COMMITTEE: Thanks for having me on.
CHETRY: You, guys, did it. You pulled out this decisive win -- the White House, both houses of Congress. And now comes the hard part. So, how do the Democrats govern in a way that unites everyone?
DEAN: I don't think that's going to be a big task. I think the Republicans are in some cases very willing to work with us in a positive way. I think President-Elect Obama has made it very clear that we're going to try to put an end to the divisive politics of the last 25 years. The sort of at Water, Rove, Gingrich politics, and get everybody on the same page. That's the message of this new generation that Barack Obama has brought into politics -- is stop fighting about the things that you've been fighting about for 30 years, and get something done about the things that you can agree on.
And I think that's exactly what the American people want. That's the mandate that Barack Obama got from the American people.
CHETRY: Yet, he chose as his chief-of-staff, Congressman Rahm Emanuel, a Washington veteran, who's also known for some sharp elbows, his pitbull style. And you've said that Republicans are willing to work with you, guys. But we have House Minority Leader Boehner saying this is an ironic choice for a president-elect who has promised to change Washington, make politics more civil and govern from the center. Is that not in line with the message of unity?
DEAN: Well, no. And also -- but Senator Lindsey Graham, Republican of South Carolina wrote a very nice note about Rahm Emanuel's choice if White House chief-of-staff.
Look, Rahm Emanuel is smart. He understands Washington, which is critical in a chief-of-staff, and he knows how to get things done. So, the president of the United States gets to choose his staff. I think we ought to take a positive attitude, work with Rahm to make this all work. This is very important for the country and it's not about who got mad at who last year or last week or whatever. This is about making America work again, and that's what President-Elect Obama's agenda is. And I think Rahm will carry out that agenda and I think he'll be very, very good at it.
CHETRY: I want to talk about priorities. "The Wall Street Journal" writes, overshadowing any effort to provide health insurance to millions of uninsured families is the yawning deficit in the big government-run health care programs -- Medicares, hospital, insurance fund could go broke in about a decade as the bulk of the baby boomers retire.
So, we have this looming financial crisis. Will it mean promises like universal health care have to go by the waste side, perhaps, at least for now?
DEAN: I don't believe so. I think one of the things that President-Elect Obama said on the campaign trail, which I think is absolutely true is, while there are a lot of short-term things that have to be done, including fix up the economy and make the American middle-class and working-class people more comfortable. There are some things that have to be done in the long-term that can't be put off either.
One of them is renewable energy. We have got to have for our national -- sake of our national security and our economy may have serious renewable energy industry. The other is health care. We're losing jobs not just to China. We're losing jobs to Canada because they have a health care system where their businesses don't have to pay a cost that goes up three times the rate of inflation.
Most people in the business community will now tell you that they believe that real health care reform has to happen. So, I think we will get that done. Yes, it'll be harder because we don't have much money and we've got these huge deficits that we now have to deal with. But it has to be done.
CHETRY: Where does that leave the promised tax cut for 95 percent of Americans?
DEAN: Well, you know, I'll tell you something about Senator Obama. He doesn't make promises he can't keep. And this is going to be complicated, it's going to be difficult, and I'm sure those questions are going to come up today at the President-Elect's press conference. But there were a lot of promises made to the American people and we intend to keep them.
CHETRY: All right. One quick question before we leave. You know, there's been a lot of talk about who he's going to appoint to his cabinet. Your name has been mentioned for Secretary of Health and Human Services. Would you take that if offered?
DEAN: As they say in Washington, those who know don't say and those who say don't know. And I don't know and I won't say.
(LAUGHTER)
CHETRY: I'll take that as a yes. Well, always great to talk to you this morning. DNC Chairman Howard Dean, thanks.
DEAN: Thanks very much.
JOHN ROBERTS, CNN, ANCHOR: Just about 30 minutes past the hour now, and here's a check of this morning's top stories.
More relief at the pump this morning. Gas prices falling another couple of cents overnight. According to AAA, the national average for a gallon of gas is now $2.31. As long as you're buying regular, of course.
The White House presenting Iraq with what it calls the final text of a draft security agreement and says the ball is now in Baghdad's court. The deal would keep U.S. troops in Iraq for another three years. Iraqi lawmakers say changes are essential. The winning Parliament's approval before the December 31st deadline when the U.N. mandate for the U.S.-led coalition expires. Without a new agreement in place, the U.S. would have to suspend all military operations in Iraq.
And the battle over the same sex marriage ban in California. Spilling out in the streets of Los Angeles yet again more than 2,000 people clogged rush hour traffic last night. Police say at least two people were arrested. Organizers in Los Angeles say another protest is planned for this weekend.
To the most politics in the morning, and Barack Obama wasting no time getting to know world leaders. Yesterday he returned phone calls to nine of them, including leaders from England, Japan, France and Israel. And with the transition of power underway this morning, one of the crucial positions that must be filled is that of Secretary of State. And with two wars overseas, Obama's pick for the State Department's lead post will undoubtedly play a central role in the first months of Obama's administration. CNN's Zain Verjee has been working her sources, getting some idea of who is out there and who might be picked. She joins us this morning from Washington. Hi, Zain.
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Hi there, John. Well there's a lot of jockeying for the position of Secretary of State. There are four prominent names that are out there. Republican Senator Chuck Hagel's on the Senate Foreign Relations Committee. He's a Vietnam veteran. He traveled with President-elect Obama recently to Iraq and Afghanistan. And he has been one of the Bush administration's toughest critics on Iraq, on the war on terror. Then there's Senator John Kerry. He was the 2004 democratic presidential candidate, and he's on the foreign relations committee now. He's a Vietnam veteran and he really worked to help normalize relations with Vietnam.
Another republican senator, Richard Lugar's out there for Secretary of State. His name's floating around, he's the former chairman of the foreign relations and agriculture committees. But Lugar's program also destroyed more than 7,000 Soviet nuclear warheads. So he knows a lot about Russia and that's something the next Secretary of State's going to have the deal with. And then there's Bill Richardson, the former secretary of energy and a former U.S. ambassador the U.N. He's been a global troubleshooter going to places like Sudan, North Korea, and Iraq.
But in this race, John, there could be a dark horse emerging. One name is coming up a lot in our conversations, General Jim Jones could be a possibility. He was the Supreme Allied commander for Europe. He advised Secretary of State rice on the Israeli- Palestinian crisis and he really has a reputation of being outspoken and independent. And he's very highly regarded by the military as well as by Congress. One other note, John, vice-president elect Joe Biden is a real foreign policy heavy weight. So it's likely that he will want a key role in shaping the kind of foreign policy that comes out of the state department.
ROBERTS: What are some of the challenges that we'll be facing the new Secretary of State? We've mentioned two wars, but there's a whole lot going on out there.
VERJEE: Absolutely, I mean you know the threat from Iran, North Korea, the Israeli-Palestinian crisis. I mean, there are a lot of challenges out there but one thing experts are telling us it's going to be very difficult for President-elect Obama and his Secretary of State to really deal with a lot of things all at once. They're really going to have to prioritize, and the financial crisis is something they're really going to have to deal with first and that could slow down what the foreign policy agenda is. One former state department official also said that if the u.s. is in a financial crisis and the pillars at home aren't stable, it's going to be difficult to do foreign policy because the U.S. will have less power, less money. John.
ROBERTS: Certainly got a lot of choices out there. There's almost an embarrassment of riches.
VERJEE: Yes. There's a lot of people that want that position.
ROBERTS: Zain Verjee for us this morning. Zain, thanks so much.
CHETRY: Breaking news, the government releasing its October jobs report. Just now and as expected the news is grim. Christine Romans has the details, she's minding your business this morning. Christine, what do you got?
CHRISTINE ROMANS, CNN CORRESPONDENT: you know it's worse than economists have been expecting, 6.5 percent is the unemployment rate and that is the worst in 14 years. So the jobless rate in this country now the worst in 14 years. More job loss than expected in October, 240,000 jobs losses. We told you that they'd been expecting something more like 200,000. For the year, 1.2 million jobs have been lost. Almost half of those comes just in the past three months. So what you're seeing is rapid deterioration in the economy and rapid deterioration in the labor market. There were jobs gained in education, health care, and in mining, but pretty much everything else you saw major job loss. Anything that touches the consumer saw job losses. Manufacturing, housing, construction, all these kinds of jobs are still losing rapidly. Again, 6.5 percent is the unemployment rate, that is the worst now in about 14 years, 240,000 jobs lost, 1.2 million lost so far this year. This is number one on the agenda for the president-elect. This is clearly what his business brain trusts will be discussing here this morning. A number that is worse than expected and economists are expecting hundreds of thousands more jobs to be lost between now and inauguration. Kiran.
CHETRY: All right. So and I that's what and that's what i was going to ask you. Do they think they've bottomed out or the worst is yet to come?
ROMANS: This is the beginning of a trend. The trend that has been rapidly deteriorating over the past three or four months.
CHETRY: Christine Romans for us this morning. Thanks.
ROBERTS: Sarah Palin pushing back against the bitter infighting in the McCain campaign. Hear the explosive new charges and the reaction from the Alaska governor. And millions of people saw it and many of them hated it, we'll take a closer look at Michelle Obama's election night dress. It's 36 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), FMR. VICE PRESIDENTIAL CANDIDATE: We have nothing but good things to say about each other. And it's not just political, it's sincere admiration that I have for him and I honor him.
(END VIDEO CLIP)
ROBERTS: Sarah Palin praising her former running mate John McCain, but behind the scenes, apparently a far uglier scene. And this morning it's being played out in public. CNN's Dana Bash is live for us this morning in Washington. Sarah Palin saying she's got nothing but respect for Senator McCain. What were you hearing behind the scenes about all of this?
DANA BASH, CNN CORRESPONDENT: A lot. And you know it's actually as you well know, John, it's not unusual for losing campaigns to end with recriminations. But you know we've been hearing about the tension inside the McCain campaign since well before election day. But since it really has exploded, especially when it comes to Sarah Palin.
(BEGIN VIDEOTAPE)
SEN. JOHN MCCAIN (R), FMR. PRESIDENTIAL CANDIDATE: We have come to the end of a long journey.
BASH (voice-over): As John McCain conceded the election, Sarah Palin stood silently behind him, but that's apparently not the way she wanted it. A source close to Palin tells CNN she expected to address the crowd and had prepared two brief speeches, one for either outcome. But several sources tell CNN, McCain's senior adviser Steve Schmitt told Palin no. In part because it builds up anger among some McCain aides who say Palin had become more interested in her own future than McCain's election, something Palin denies. Still, since election day, behind the scenes battles between some key aides have turned into a public nasty war. For example, two McCain sources tells CNN they were furious about Palin's supposed call with French President Nicholas Sarkozy, which turned out to be a prank by two radio deejays.
UNIDENTIFIED MALE: You know, I see you as a president one day you too.
PALIN: Maybe in eight years.
BASH: A McCain source tells CNN, Palin's aides interested in building her profile agreed to set up the call without telling McCain headquarters. A Palin source responded to CNN that it was on her schedule for three days and they were hiding nothing. But perhaps the most direct blows are about Palin's readiness. One source involved in preparing her for her interviews and debates saying she had not paid attention to a single policy debate that's gone on in this country for 10 years. In response, Randy Scheunemann, an aide assigned to Palin called her brilliant saying she has a photographic memory.
(END VIDEOTAPE)
BASH: A spokeswoman for Palin called all these "unfortunate and quite honestly sickening." And John, many McCain aides we talk to also say they're actually quite sad that the campaign dissolved so fast after McCain's crushing loss.
ROBERTS: Hey, just a clarification and a question Dana when they say that they had that interview with the radio station there in Montreal on the schedule for three days. Did they think it was with the radio station? Or did they think it was Sarkozy?
BASH: No, they definitely thought it was with the leader of France. Absolutely. Believe me, they had absolutely no idea it was going to be a prank. What they had on the schedule was what they thought was a world leader phone call and that was part of the reason why people back at headquarters were not very happy.
ROBERTS: There's also this allegation out there that she didn't know that Africa was a continent. Did you hear anything about that?
BASH: I did, I heard that from a source who said that point- blank that she wasn't aware that it was a continent. I talked to one of Palin's very close advisers Randy Scheunemann who worked with her on these issues who says that he was not there for that alleged incident but said it was a miscommunication.
ROBERTS: Did they ever give you the context of that?
BASH: No.
ROBERTS: Of how it came up?
BASH: No. Except for the fact that it was allegedly during preparation for interviews and for a debate.
ROBERTS: Dana Bash for us this morning. Dana, thanks so much for that.
BASH: Thank you.
ROBERTS: And we're hearing from people inside the McCain about the bitter infighting. This morning, John McCain's senior adviser Nicole Wallace commented on the stories that Palin is a diva. She said "the campaign provided some clothes and made them available to Gov. Palin. She is perhaps the most un-diva politician I've ever seen. The only thing I've ever seen her ask for is a diet soda."
(BEGIN VIDEOTAPE)
CHETRY (voice-over): First lady fashion, Michelle Obama's eye- catching election night outfit has some fashionista fired up. You're watching the most news in the morning.
(COMMERCIAL BREAK)
CHETRY: Well, election night was a big hit for Barack Obama. But his wife's dress, maybe not as much. A lot of people are criticized the red and black dress that Michelle Obama wore on Tuesday night. Lola Ogunnaike is here with more, you know, everyone was waiting to see what she was going to wear. And there were mixed opinions about whether people liked that dress.
LOLA OGUNNAIKE, CNN ENTERTAINMENT CORRESPONDENT: Definitely, definitely mixed reviews and everyone has an opinion about it. "US Weekly" magazine, 80 percent, they had a poll on their website and 80 percent of the readers did not like the dress. People.com and "USA Today".com as well. They had a poll as well. 65 percent of their readers did not like the dress. Some people liked it, some people thought it was way too aggressive.
CHETRY: Aggressive. This is a designer who is famous. The name of Narciso Rodriguez, right?
OGUNNAIKE: Yes.
CHETRY: He's responsible for making incredible designs for people all over the red carpet. Well, there it was on the runway.
OGUNNAIKE: Yes. Narciso Rodriquez created this dress. He is behind Caroline Bissett's wedding dress. This man is very well regarded in the fashion industry. The dress isn't even in stores yet and he tweaked it just for Michelle Obama. But apparently it didn't go over well with a lot of people. Fashion insiders seemed to have liked it more and they appreciate the fact that she's willing to experiment and she plays with clothing and she seems to enjoy dressing up. But mainstream wasn't so sure.
CHETRY: You and I would look like if you and me ran into each other today really fast and our dresses would clashed.
OGUNNAIKE: And we'll do a chest bump or something.
CHETRY: I'm not one to criticize people's outfits because it is what it is. You sometimes hit and you sometimes miss. And she had a lot of hits this time.
OGUNNAIKE: She's had a lot of hits. I mean her Maria Pinto favorites, the purple sheath with the black belt. That was a huge hit. That's the dress that she wore the night that he landed the nomination. The green dress that she wore when she gave her speech, another Maria Pinto number, that's a Chicago based designer. That was also a huge hit. And when she does the cheap chic thing, that also seems to work for her.
CHETRY: Right. She joked about her outfit that she wore on Jay Leno, right when she said J. Crew.
OGUNNAIKE: J. Crew and that was a huge hit, the $148 dress she wore on "The View," also another huge hit. So it seems when she stays away from the high, high end, and she shops at the J. Crew and the H&Ms of the world she seems to score really big.
CHETRY: Also, she is as you said willing to experiment. I mean, everyone's going to be looking at her. She's now going to be the first lady and how far is she willing to go?
OGUNNAIKE: I think she is going to have a good time with clothing, but she's also going to have to keep in mind that she is a public figure now. She is in the world stage and what looks good in your closet or at home when you're dressing up, may not always play well on television or on cameras and she's not only dressing for herself anymore, she's dressing for history now. So she's going to have to get it right.
CHETRY: A tall order, isn't it?
OGUNNAIKE: I can't wait to see the inauguration dress. That's all anybody is talking about.
CHETRY: This is why guys have it so easy. All they have to do is pick out the color of his tie, right?
OGUNNAIKE: Exactly. A suit and a tie. But she's got to get it right and people are watching.
CHETRY: All right. Especially, report back to us whether or not people like the inaugural gown. Do you know any hints about that by any chance?
OGUNNAIKE: People are saying she might go to Maria Pinto because she's been so good to her in the past. We'll see.
CHETRY: All right. Lola, great to see you this morning. Thanks.
OGUNNAIKE: Thanks.
ROBERTS: It is just so easy.
CHETRY: Yes.
ROBERTS: Workout fears, 20 percent of people say they don't go to the gym because they're too intimidated. But what if you get fit in the dark. We'll take you inside the new blockbuster, the cardio cinema. And who was that guy giving Oprah Winfrey a shoulder of support during Barack Obama's election night rally in Chicago? Oprah's hanky. Jeanne Moos puts a name to the face.
The most essential thing for the development of kids are those things that they do that is not school-related. At a young age, you can do whatever you put your mind to. And my hero uses jazz music to inspire the minds and souls of the young.
DAVEY YARBOROUGH, CHAMPIONING CHILDREN: Back in the 80s, one of my visual arts students was killed due to his involvement. To have an element of the street take a student that was so bright and promising was a trigger for me to open a music enrichment program to take young people and nurture them on their time.
I really wanted to be able to see the students develop. We have a mentoring system of professional arts. Sometimes I wonder am I really getting through? But when I see that light go on in the student's face, I could wake up tomorrow and do it again.
UNIDENTIFIED MALE: He is the next step of heroic action. He sacrifices, but he is actually is fulfilling himself. The students admire and look up to him, they love him.
ANNOUNCER: Vote now at cnn.com/heroes.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the most news in the morning. Trying to get on the treadmill, but can't stand the boredom or don't want to be seen by other members of the gym? One fitness chain has got the solution. And it's a block buster. Dr. Sanjay Gupta takes us inside the cardio cinema.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Is it a movie theater? Or is it a gym? Well, actually, it's a movie theater in a gym.
JAMIE SMITH, GENERAL MANAGER: The cardio cinema, it's a cool darkroom, it's designed to be like the movies, instead of sitting in your typical seat, you're on a treadmill, you're on a bike watching a movie.
GUPTA: The theater here in Gold's Gym in Charleston, South Carolina is one of about 50 located in Gold's Gyms across America. And the clients here say it's a block buster.
MARVIN WHITSON, GOLD'S GYM MEMBER: I think this is one of the best parts of the gym in here. Like I said, it just takes your mind off all the work you're doing.
UNIDENTIFIED MALE: It keeps your mind off running in place.
GUPTA: But taking your mind off working is only one of the benefits. General manager Jamie Smith says it helps many of her newer clients take that first step.
SMITH: It's less intimidating. It makes them feel more comfortable. Nobody's watching them. They don't feel like they're on display.
GUPTA: That's critical because in a recent survey by the American Council on Exercise, more than 20 percent of non-gym goers say intimidation keeps them from doing regular exercise. In the case of this Gold's Gym though it's the movies that keep the clients coming back.
BONNIE MARGIOTTA, GOLD'S GYM MEMBER: 20 minutes has gone by already and I didn't realize it. I could stay for the whole movie, but that's an hour and a half, I might pass on that.
GUPTA: Dr. Sanjay Gupta, CNN, reporting.
(END VIDEOTAPE)
(BEGIN VIDEOTAPE)
CHETRY: Mystery man.
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I saw a nation conquer fear itself.
CHETRY: Who was Oprah leaning on in Obama's election day victory rally. Jeanne Moos goes online to hunt him down.
JEANNE MOOS, CNN CORRESPONDENT: Then we spied these five words. His name is Sam Perry. You're watching the most news in the morning same.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
CHETRY: Well Oprah Winfrey had a big emotional moment when Barack Obama won the White House. And she leaned on a perfect stranger to get through the moment. And now some are asking who are you? Leave it to Jeannie Moos to track down Oprah's them down.
(BEGIN VIDEOTAPE)
MOOS (voice-over): No one present at the Obama victory speech is likely to forget it. But the guy Oprah Winfrey was leaning on really won't forget it. You know when you're in a plane or a train or somewhere and some stranger falls asleep on your shoulder? Well, that's kind of what happened to the mystery man. He became Oprah's hanky.
OBAMA: When there was despair and depression across the land, she saw a nation conquer fear itself.
MOOS: Now lots of TV personalities cried over Obama's victory.
SHERRI SHEPHERD, CO-HOST "THE VIEW": I look at my sons and say no limitations.
MOOS: From Sherri Shepherd on the view to political pundits.
JUAN WILLIAMS, NPR CORRESPONDENT: You I don't care how you feel about him politically.
UNIDENTIFIED FEMALE: My mother's people -
UNIDENTIFIED MALE: take your time.
MOOS: Even funny man Steven Colbert seemed to wipe away a tear or two. But Oprah really let go on a stranger.
OPRAH WINFREY, TV HOST: I don't know who this guy is. You know, friends call me around the country and say who was with you? And I say, I don't know him.
MOOS: Neither did Jesse Jackson, but at least Jesse cried from a distance, not Oprah.
WINFREY: At one point I was just sobbing on his shoulder, mascara everywhere. Anyway, thank you, Mr. Man for letting me cry on your shoulders.
MOOS: So naturally everybody started asking who was Oprah leaning on? One person posted, I'd send that phony, meaning Oprah a bill for my dry cleaning. Others call it touching and then we spied these five words. His name is Sam Perry. End of mystery.
Sam Perry is an investor and was communications director at Silicon Valley for Obama, but he wouldn't communicate with us when we left messages. He's donated thousands of dollars to Obama and other democrats. No wonder he got primo position along with Oprah.
UNIDENTIFIED MALE: ...who had actually purchased this white man to lean on during the speech.
MOOS: For at least one night Sam the hankie belonged to Oprah. Jeannie Moos, CNN, New York. (END VIDEOTAPE)
ROBERTS: Any way you slice it, this has been an incredible week in America, and in particular in American politics. I can't believe it's actually come to a close.
CHETRY: I know. I certainly cherish it and we had a blast ourselves this week.
ROBERTS: Absolutely.
CHETRY: And now after nine hours, three hours just seems so short and easy.
ROBERTS: You know 74 more days of the transition, that's the inauguration and then the first 100 days of the administration, this pony's going to take us all the way through April.
CHETRY: And we'll be here for all of it.
ROBERTS: All right. Thanks so much for joining us on this AMERICAN MORNING We'll see you back here bright and early on Monday morning.
CHETRY: Have a great weekend. Right now here is CNN NEWSROOM with Betty Nguyen.
