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American Morning
New Talks on Auto Industry Bailout; McCain Makes First Appearance Post-Election; Warren Christopher and Sam Nunn to Join Obama Transition Team; The Silver Lining in the Economy; GOP Party to Regroup
Aired November 12, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR (voice-over): Bailing out the big three.
UNIDENTIFIED MALE: The bottom line is, is that this industry is at the edge of a cliff.
ROBERTS: The focus from Detroit to D.C. Today whether the American taxpayers want to go into the car business and the cost of doing nothing.
Plus, Obama's image overseas.
UNIDENTIFIED FEMALE: This was its June headline. Translation, Uncle Barack's cabin.
ROBERTS: The good vibes give way to show the insensitive side of Europe.
SILVIO BERLUSCONI, ITALIAN PRIME MINISTER: He's young, handsome and even tanned.
ROBERTS: On this AMERICAN MORNING.
(END VIDEO CLIP)
ROBERTS: And good morning. Thanks very much for being with us. It's Wednesday. It's the 12th of November, and we've got a lot of politics to talk about.
But you know, the economy still a big, big problem. A And with the focus sort of waning on politics, all these other issues that have been sort of suppressed a little bit, people weren't really paying too much attention to coming up banging us over the head.
KIRAN CHETRY, CNN ANCHOR: Yes. And we're hearing about companies that we thought were really stable companies that are in a lot of trouble this morning. We are going to follow all of that for you.
Plus, we have breaking news coming out of Iran. The country says it successfully test fired a new generation high speed surface to surface missile. The government says that the test took place near the Iraq border.
This morning President Mahmoud Ahmadinejad addressed a huge crowd warning any foreign invaders of "a crushing response." Last week, Iran warned American forces that choppers were flying too close to its air space.
Asian financial markets falling overnight after the Dow dropped another 176 points. Japan's Nikkei index closing 1.3 percent lower. Hong Kong's Hang Seng down less than a percent, and European stocks are also slightly lower as our Dow futures at this point.
Well, doctors sounding a new wake up call for parents of overweight youngsters urging them to get their kids in shape. A recent study using ultrasound machines found that some obese kids as young as 10 had the arteries of 45-year-old adults. Doctors say it's more evident that extra weight can have an immediate effect on kids and that parents should not treat it as baby fat that kids will eventually burn off or grow out of.
ROBERTS: Well to the "Most Politics in the Morning" now and silent no more. This morning we are hearing from Senator John McCain for the first time since he lost the presidential race to Barack Obama. McCain appeared on the "Tonight Show With Jay Leno" and refused to speculate on what went wrong, but he did make it clear that he places no blame on Sarah Palin.
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW WITH JAY LENO")
SEN. JOHN MCCAIN (R), ARIZONA: I'm so proud of her and I'm very grateful that she agreed to run with me. She inspired people. She still does. And, look, I couldn't be happier with Sarah Palin, and she's going back to be a great governor and I think she will play a big role in the future of this country.
JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": Did she ever get off message at one point?
MCCAIN: Did you expect mavericks to stay on message? I'm sure that from time -- but she was, look, we did a lot of things together, a lot of these rallies. The people were very excited and inspired by her and that's what really mattered.
(END VIDEO CLIP)
ROBERTS: Well, McCain also said it's doubtful that he would run again in 2012 when he would be 76 years old. As for Sarah Palin, her star could grow today as she heads to the GOP governor's conference in Florida. We are live there in a couple of minutes looking at what the meeting could mean for her future.
And don't forget that Sarah Palin talks to Wolf Blitzer in "THE SITUATION ROOM" tonight at 6:00 p.m. Eastern.
Meanwhile, just 69 days now until President-elect Barack Obama takes over the White House. But this morning, the transition to power overshadowed by urgent talk of a government bailout for the auto industry. America's big three are in big, big money trouble. Things so bad for General Motors the company stock will start selling at $2.92 a share this morning. That's the lowest price since World War II.
Overnight there was word from Washington that House Speaker Nancy Pelosi could call for a congressional lifeline in the next few days in a lame-duck session of Congress. And while the Bush administration is resisting the idea, the Obama team is supporting it and more. Here's Candy Crowley with a closer look.
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Kiran and John, we haven't heard from President-elect Obama since his news conference last week but there has been plenty of talk about that White House meeting.
(BEGIN VIDEOTAPE)
CROWLEY (voice-over): Sources on the Obama transition team say that president-elect urged President Bush to take quick action to help the auto industry. Obama suggested the move could be coupled with appointment of a car czar, someone with the authority to push for and oversee the sorts of reforms Obama spoke about recently.
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I've made it a high priority for my transition team to work on additional policy options to help the auto industry adjust, weather the financial crisis and succeed in producing fuel efficient cars.
CROWLEY: According to a source who got a readout of the private session, the incoming president also told the outgoing president about other priorities, aid to homeowners under threat of foreclosure and the urgent need for a second stimulus package. Asked for President Bush's reaction, an Obama source said Obama is "not under any great illusion" that Bush would support another stimulus package.
Both the White House and Obama aides say President Bush listed his own priorities for what's left of his term and top on that list a free trade deal with Colombia, which the president argues would help the U.S. economy. Both sides denied stories that the president said he would consider Obama's suggestions if Congress approved the trade deal.
More precisely one Obama source said, "President Bush did not specifically suggest a quid pro quo." Stories that Bush was bargaining upset the White House and briefly threatened to break up all that happy talk about the smooth transition. It is now back on track. Vice President in waiting Joe Biden was effusive about it in his Veterans Day salute to those who have served.
SEN. JOE BIDEN (D), VICE PRESIDENT-ELECT: It is a remarkable testament to what you all fought for that there is absolutely, absolutely, total, complete, unadulterated cooperation and movement as if it's seamless.
(END VIDEOTAPE) CROWLEY: It appears so far so good and so expensive. The co- chairman of the Obama transition team says just on the Obama side, it will take 450 people and $12 million to pull this off -- Kiran and John.
CHETRY: Candy, thanks.
Well, the president-elect's transition team has had its first meeting and this morning there's word that two more Washington veterans have been tapped to help out on the transition.
CNN's Suzanne Malveaux is live for us in Chicago this morning. And who are the two people we're talking about this morning, Suzanne?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Kiran, there really are some heavy hitters former from the Clinton administration. We are talking about those who are going to be looking at filling the Pentagon and the State Department slots. One of them former Georgia senator, Sam Nunn, to take a look at the Pentagon who would be the person to lead the Defense Department.
The other person that we're looking at, former Secretary of State Warren Christopher of the Clinton administration, looking at the State Department who would be the first and the best to fill that position. And as Candy had mentioned, this is really an extraordinary operation. We're talking about 450 people, $12 million, half of it, of course, to be paid by the government, half of it from private sources.
This is something that they'll be working in the weeks to come. We don't expect an announcement today and even perhaps this week on those cabinet posts, but it is something that they're working in earnest. And just by looking at the kind of high-powered team that they have assembled here, obviously it gives you a sense of the priorities -- Kiran.
CHETRY: Yes. And a couple of minutes ago, we were hearing from Candy Crowley about this meeting that took place between President Bush and President-elect Barack Obama, and whether there was any deal making taking place. How difficult is it for these two to work together?
MALVEAUX: You know, you talk to aides and it's very clear that these two men have an understanding that Barack Obama is not going to encroach on his power. He's not going to step on him in these weeks before he actually takes office.
One of the reasons why is they want this transition to go as smoothly as possible. The other thing too is really to kind of lower expectations here, to make people aware that, yes, he is going to be president but that is weeks away. That still President Bush is the one in charge and we've heard Barack Obama say it. "There is only one president at a time." This is out of respect. He's being deferential, but it's also about setting up those expectations not too high when he first takes office -- Kiran.
CHETRY: Suzanne Malveaux for us this morning. Thanks so much. Meantime, Barack Obama says he doesn't hold any grudges against Joe Lieberman for supporting John McCain and wants the independent senator from Connecticut to stay in the Democratic caucus. The president-elect telling Senate Majority Leader Harry Reid that expelling Lieberman would only damage the message of bipartisanship and unity that he wants for the new administration. Those conversations taking place according to aides who wanted to remain anonymous.
Meantime, Lieberman's Connecticut colleague, Republican Congressman Chris Shays, lost his House seat on election night. Shays is telling CNN's Larry King that it was ultimately President Bush's negatives that doomed the GOP.
(BEGIN VIDEO CLIP, "LARRY KING LIVE")
REP. CHRIS SHAYS (R), CONNECTICUT: I thought I was at the top of my game in the sense that my staff was doing a great job. I thought my record was good, great communication with my constituents. I could not convince one practically African-American to vote for me.
And then my district was hit by the financial crisis. This district was hit harder than any district in the country. So, you know, I think we can overplay the problem of the Republican Party. I mean, we had a president who was not popular and not popular for a long time and didn't have practically one good week in the last six years.
(END VIDEO CLIP)
CHETRY: Well, Shays admits the party needs to rebuild but says blaming John McCain for the GOP's election night failures is "absurd" -- John.
ROBERTS: Tumbling stock markets, homeowners in trouble. It's all grim news on the economy it seems, but there is some relief out there for Americans. We've got it for you.
Christine Romans takes a look at the issues affecting your money coming up.
It's nine minutes now after the hour.
The life of the party.
(BEGIN VIDEO CLIP)
GOV. BOBBY JINDAL (R), LOUISIANA: If we will show that we remain the party of controlling spending and cutting taxes, crack down on corruption and offer real solutions to the problems that matter to most American families, I think we'll be successful.
(END VIDEO CLIP)
ROBERTS: The GOP does a Texas two-step. Can the Grand Old Party find the beat and rhythm to dance with the American people? You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the "Most Politics in the Morning." Republicans will debate their party's future at a meeting of GOP governors that begins today in Miami, and Sarah Palin is the headliner.
CNN's John Zarrella live in Miami for us this morning. And she's not the only governor, though, John, who may have presidential potential down there. This is kind of like kicking the tires on the 2012 models, isn't it?
JOHN ZARRELLA, CNN CORRESPONDENT: Yes. You know, already, it's so hard to believe the next president hasn't even been sworn in and we're already talking about who might be running against him in 2012. And certainly as you mentioned, Sarah Palin has the star power here. She's going to be one of a number of people on a panel discussion at this governor's conference tomorrow on the future direction of the Republican Party.
But there are a lot of folks who believe that besides Palin, there are a number of other governors who very well could be carrying the standard bearer for the Republicans in 2012: Charlie Crist of Florida, Tim Pawlenty of Minnesota, and Bobby Jindal of Louisiana. All three of them young. All three of them very popular.
And I talked to Jindal yesterday. While he's not going to talk about 2012, he's very clear on where he believes his party needs to go.
(BEGIN VIDEO CLIP)
GOV. BOBBY JINDAL (R), LOUISIANA: Our party also has to be the party of solutions. We can't beat something with nothing. It's not enough to say the other side is worse. Our party has to show the American people that we're up to tackling the challenging problems.
Whether it's the rising cost of healthcare, whether it's the economic challenges, whether it's the international threats to our security, whether it's education, we need to show the American people that we've got real solutions that work. That's why I think governors have such an important role to play. We're doing that every day in our states.
(END VIDEO CLIP)
ZARRELLA: And you know, so much was said in the campaigns about executive experience. Well, that's what these governors and the Republican Party believes they can bring to the table.
They've got executive experience. They're working every day with the people in their states and, again, they're very popular. So it's going to be very interesting, John, to see who ultimately emerges down the road as the leader of a new Republican Party, Republican Party that envisions itself as having to make a lot of changes to start winning back some of the American voters -- John.
ROBERTS: Is it beginning to seem pretty clear? And I know it's difficult for things to be clear just a week after the election. We haven't even finished counting all of the votes. But does it seem to be clear at this point that the next Republican leader will come from the ranks of the governors? And what are people down there saying about this newly enhanced visibility of Sarah Palin? Is that a good thing for the party?
ZARRELLA: A lot of people are saying they do believe that it's very likely that one of the governors here that we're going to see in the next couple of days could very well be the Republican nominee for 2012. Mixed signals on Sarah Palin.
Some people, a lot of the political experts we talked to are saying, you know what? Maybe she needs to step out of the spotlight for a while, go back to Alaska and let some of these other governors, let some of the other leaders of the Republican Party, the new young lions of the party, start to step forth and see what they're all about so that the Republican Party can make a really good solid decision on where they want to go and who are going to be the leaders of the party for the next four years -- John.
ROBERTS: Although I think there are a lot of people who consider her to be one of these new young lions and...
ZARRELLA: Yes.
ROBERTS: ... don't see any reason for her to step out of the spotlight. So we'll see what happens.
ZARRELLA: Exactly.
ROBERTS: John, good to talk to you. Thanks this morning.
CHETRY: So had race-based headlines raising some concerns about Barack Obama's image in some parts of Europe? Our Carol Costello is taking a look at what's bubbling under the surface.
Fifteen minutes after the hour. There's also still time to vote for CNN's "Hero of the Year." Head to CNN.com/heroes, read their stories and then make your pick online. And then, be sure to join Anderson Cooper thanksgiving night when we reveal the big winner.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the "Most News in the Morning." Global financial markets taking it on the chin after the Dow dropped another 176 points.
In Japan, the Nikkei closed at 1.3 percent lower. Hong Kong's Hang Seng also down just shy of a percent. London's FTSE trading in negative territory as our Dow futures when we last looked this morning.
Well, Christine Romans joins us now. But we're not talking about that. We're not talking about the downturn or the slight downturn. We're talking about some good news for a change and that's gas prices. We've seen them quite low, under $2 a gallon in some parts of Delaware.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes. Anybody in Jersey? Anybody in Jersey? Jersey, exit 27 off Interstate 80, $1.99 this morning.
CHETRY: You love it, right?
ROMANS: I'm told from somebody upstairs who was literally doing a little victory dance. I mean this is what people face every single week when they fill up their car, and you're seeing gas prices absolutely slide here. This is the silver lining in all this.
All this weak demand and worries about a global recession have gas prices coming down. You're looking at about 2.20 right now. Just last month, they were 3.21 and a year ago they were 3.11. So this is, make no mistake, a stimulus in the pockets of a lot of people who are filling up to go to work.
Taking a look at the markets, that was not so pretty yesterday. Markets down pretty sharply. Futures are flat though here today. So we'll see what this means for your retirement. Your retirement has not been great -- the great direction is that of your gas prices have lately.
But I want to talk quickly about help for homeowners as well.
ROBERTS: Same direction. Just has been bad.
ROMANS: Yes, yes. Exactly.
I want to talk about help for homeowners. We told you yesterday about a Fannie, Freddie plan to try to like streamline, modifications of mortgages. That actually came out. A homeowner to do this must be 90 days late at least, live in the home, prove hardship. And here's how the payment works.
The payments are adjusted to 38 percent of income. The principal is not reduced, though. The government lowers the rate to as low as three percent for five years and then inches it up one percentage point every year until it hits either the market rate or the original loan, loan rate whichever is better.
So you know, that's going to be help for some people, not help for everybody. It's a step in the right direction, but a lot of consumer advocates say there's still a lot of mortgages that have been sliced and diced and securitized and sold off to God knows where, that those are much more difficult to modify. So help for some people is coming from the industry and some -- you know, a lot of pressure from the government now on the mortgage front.
CHETRY: All right. It's better than nothing if you're one of those people that can benefit from it for sure.
ROMANS: Yes.
CHETRY: All right. Christine, thanks so much.
ROMANS: You're welcome.
ROBERTS: Well, John Edwards speaks out. The former presidential candidate in his first public appearance since he admitted to having an affair. Find out what he's saying now.
Twenty and a half minutes after the hour.
CHETRY: Image abroad.
(BEGIN VIDEO CLIP)
SILVIO BERLUSCONI, ITALIAN PRIME MINISTER: He's young, handsome and even tanned.
(END VIDEO CLIP)
CHETRY: Why some Europeans aren't laughing at an off-color joke about President-elect Barack Obama.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW WITH JAY LENO")
JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": And there's a new rumor that Hillary Clinton may end up secretary of state, which means she will have to spend the next four years traveling all around the world to which Bill said yes!
(END VIDEO CLIP)
ROBERTS: Welcome back to the "Most Politics in the Morning." As President-elect Barack Obama tackles the transition and looks to fill his cabinet, Republicans are wrestling with reinvention, trying to chart the party's future course after their election defeat. And GOP governors are meeting in Miami over the next couple of days to begin that debate.
Joining us now to talk more about how this may all shake out is Ed Rollins, Republican strategist and CNN political contributor.
Good morning to you.
ED ROLLINS, REPUBLICAN STRATEGIST: Good morning, John. How are you?
ROBERTS: Good. So a lot of the spotlight is going to be on Sarah Palin over the next couple of days. Do you think that she could emerge as the standard bearer for the Republican Party?
ROLLINS: Well, she's certainly the most widely known, has the highest name ID and certainly has not been hurt by this process in the sense that she came from an obscure governorship to where she's front and center.
I think that whoever is the nominee in four years will come out of this group. It will be one of the governors...
ROBERTS: Really?
ROLINS: ... either past or present.
ROBERTS: Nobody in Congress, do you think?
ROLLINS: No. I think this is really going to be the base. Mitt Romney, Huckabee, alumni of this group. People like Haley Barbour, governor of Mississippi, Mitch Daniels, governor of Indiana, both of whom used to work for me in the White House so I have a bias towards them.
ROBERTS: Bobby Jindal?
ROLLINS: Bobby Jindal definitely. But I think the governors really are going to rebuild this party.
ROBERTS: What about Gingrich? Can he come back?
ROLLINS: It's going to be hard. I mean, obviously, he's a brilliant guy and he understands revolutions and being part of the opposition, but I don't think he can do it as either the National Committee chairman or run for that.
ROBERTS: So when Republicans talk about this idea of building, who do they reach out to to rebuild? You know, what if the base is eroded?
ROLLINS: The base is eroded. You have to get back to young voters. We clearly can't lose young voters for a generation. And I think somehow we have to appeal to them and appeal to middle class values and that's not an easy task.
ROBERTS: You know David Frum, who's going to be on the program a little bit later on this morning, wrote an analysis piece in the week recently saying that the Republican Party is still strong and one of the reasons why we're still strong is because John McCain captured a majority of white voters. But white voters are a declining demographic. You know, Hispanic voters, which is the fastest growing demographic in this country, it just abandoned the Republican Party.
ROLLINS: Well, equally as important when you look at electoral college strategy, which eventually you have to, Hispanic voters play a very key role in the states that are emerging and becoming more and more important, southwest, certainly the west. Places like New Jersey, certainly Florida. So if you don't basically reach into that group and attract on the value side, you're not going to be -- you're not going to be viable.
ROBERTS: So on the Democratic side of things, Harry Reid is trying to figure out what the heck to do with Joe Lieberman. Barack Obama's campaign is saying quietly we don't think that you should throw him overboard. What do you think? If you were Harry Reid, no reason to believe you ever would be...
ROLLINS: No.
ROBERTS: What would you do with Joe Lieberman?
ROLLINS: I think to appease my members who are very, very appalled by Joe Lieberman's behavior and, of course, running around with McCain, I think I would ask him to become a no man island out there.
ROBERTS: Really? You would say don't caucus with us anymore. Thanks very much.
ROLLINS: Right, right. I would remove him from chairmanship. I think that's the only thing that's going to appease these members and obviously at the end of the day --
ROBERTS: Would you still allow him to caucus with them?
ROLLINS: Sure. I think he can go wherever he wants to. I mean, obviously he's an independent but I think at the end of the day that chairmanship is very important. Homeland Security is very important.
ROBERTS: Ed, and what about Defense Secretary Bill Gates? Because -- did I say Bill Gates? Robert Gates.
ROLLINS: Robert Gates --
Bill Gates -- Bill Gates would be a great commerce secretary.
(CROSSTALK)
ROBERTS: (INAUDIBLE) 6:28.
ROLLINS: Right.
ROBERTS: What about Gates?
ROLLINS: He's an extraordinary guy who basically is very well liked by the Congress, very well liked by generals. If you could keep him for a year, it will be a great transition.
ROBERTS: But the anti-war wing of the Democratic Party saying we don't want this guy around. Is that a good decision or bad decision?
ROLLINS: I think to a certain extent that's an emotional decision, and I think the key thing here is getting a new team in there, trying to get out of there, still have a confidence with the Iraqis. And obviously the to go in Afghanistan as President-elect Obama said, you need an experienced hand. And I think the best thing for him would be to basically let him stay for a while.
ROBERTS: A new Opinion Research Corporation poll, CNN poll, finds that 59 percent of respondents think that it will be fine. It will be a good idea for Democrats to run Washington, basically, and Congress and the White House. Are you surprised by that?
ROLLINS: No. I mean I think people are so tired of the Bush administration that I think they are going to give this president and the new Congress a great opportunity here. You know, six months, a year from now if things aren't moving forward which is a tough task, then they will start to turn on them. But I think there's going to be an extended honeymoon not a short honeymoon.
ROBERTS: So Bill Gates for commerce secretary.
ROLLINS: Bill Gates for commerce secretary.
ROBERTS: No question.
ROLLINS: As long as he writes a couple of billion dollar check to whoever we need to bailout.
ROBERTS: Ed, thanks so much.
ROLLINS: My pleasure.
ROBERTS: Always great to see you.
ROLLINS: Thank you very much.
ROBERTS: Kiran?
CHETRY: It's about 30 minutes past the hour. A check of the top stories now.
A federal tarmac task force was supposed to find ways to help airline passengers stuck for hours on parked jets. But after nearly a year studying the problem, they've left passengers in a holding pattern, I guess you could say.
Their new guidelines include no requirements to provide additional services for passengers stranded on planes going nowhere. Among the problems the task force couldn't agree on whether a lengthy delay was one hour, two hours or ten hours.
Another drop in gas prices. As Christine told you about, AAA reporting a national average for unleaded regular now $2.20. It's the 56th straight day that gas prices have gone down. They haven't been this low since February of last year.
And an approaching cold front could spoil Friday's planned launch of the space shuttle "Endeavour" at the Kennedy Space Center. Endeavour's mission is slated to last 15 days. It's all about home improvement. The seven member crew will deliver a new bathroom, kitchen, and bedroom -- two bedrooms and an exercise machine to expand the international space station's living quarters for a permanent six member crew. That's double the current size.
Well, there was euphoria in Europe when America elected its first black president. Now, the good vibes are giving way to a show of a little insensitivity (OFF-MIKE) front page. AMERICAN MORNING's Carol Costello is live for us in Washington with more on this story today.
Hey, Carol.
CAROL COSTELLO, CNN CORRESPONDENT: Hi, Kiran. You know, some of this stuff is insensitive. And some of it is just plain ugly.
(BEGIN VIDEOTAPE)
COSTELLO (voice-over): Remember the love for Barack Obama in Germany? It was a thing to behold. In Kenya couples are naming their babies Barack and Michelle. But those heart-warming images don't tell the whole story. Some European leaders seem confused about how to talk about America's first black president. Italy's prime minister for one.
SILVIO BERLUSCONI, ITALY'S PRIME MINISTER: He's young, handsome and even tanned.
COSTELLO: Berlusconi was quick to say it was a joke. But France's First Lady Carla Bruni, who was born in Italy, found it offensive. Adding, "I am pleased to have become French." Still, international relations experts say Berlusconi's comment might have been insensitive, but not necessarily racist. After all, Berlusconi's comment is not so very different than what Joe Biden once said about his new boss during the primaries.
SEN. JOSEPH BIDEN (D), VICE PRESIDENT-ELECT: I mean, you got the first sort of mainstream African-American who is articulate and bright and clean and a nice-looking guy.
COSTELLO: But other things are harder to brush off. A Polish lawmaker Artur Gorski called Obama's victory, the end of the civilization of white men. Take a look at this front-page story from a newspaper in Germany. This was its June headline, translation, "Uncle Barack's Cabin." Editors called it satirical. Though some didn't get the joke.
Also, according to the French press, a German lawmaker issued a press release concerned about Obama's popularity in Germany. He said Obama fever resembles an African tropical disease. We should point out that lawmaker belongs to a German Neo-Nazi Party. A fringe party, the majority of Germans despised.
ANNETTE HEUSER, BERTELSMANN FOUNDATION: In Germany we have still, unfortunately, this very right-wing party, NPD, but they are representing absolutely tiny minority view and they are not representing how Germany and the German citizens define democracy in today's world.
(END VIDEOTAPE)
COSTELLO: And keep in mind, in Germany and in Poland, the politicians talking trash about President-elect Obama were widely condemned. The majority of Europeans are excited by an Obama presidency.
Kiran?
CHETRY: All right. Carol, thanks so much.
COSTELLO: Sure.
CHETRY: 33 minutes after the hour.
JOHN ROBERTS, CNN ANCHOR: Meet the parents.
(BEGIN VIDEO CLIP)
MICHELLE OBAMA, WIFE OF SEN. BARACK OBAMA: There is nothing that makes me rest more now that I have to work, than to know that my kids are being loved and cared for by someone who is teaching them values and discipline, and giving them a little extra candy every now and then.
(END VIDEO CLIP)
ROBERTS: Michelle Obama's mom, the first grandmother may soon give a new meaning to the phrase, "A trip to grandma's." You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
CONAN O'BRIEN, HOST, "LATE NIGHT WITH CONAN O'BRIEN": It was reported today that Michelle Obama wants her mother to move into the White House with them. Yes. Yes. This is expected to be the first time Barack uses his veto power. Yes. Thank you. Thank you.
(END VIDEO CLIP)
ROBERTS: He's going to have to go for that line item, veto, though. Welcome back to the "Most Politics in the Morning." The White House is about to get something that it hasn't had in years, kids -- young kids. And it could be the first time in a generation that a first grandmother calls the White House home. Alina Cho here now with that story.
Good morning to you.
ALINA CHO, CNN GENERAL ASSIGNMENT CORRESPONDENT: And good morning. She's been dubbed the first granny. It didn't take long. Good morning, John. Good morning, everybody.
No final decisions yet. But we do know that Marian Robinson will be moving from Chicago to Washington, at some point, very soon. And all the talk is she's likely moving into the White House. Now, remember, this is Barack Obama's mother-in-law, Michelle Obama's mother and beloved grandmother to Malia and Sasha. So, who exactly is she? Well, she may be the one person in the Obama Family who keeps the whole operation running. (BEGIN VIDEOTAPE)
CHO (voice-over): Call her the first babysitter. 71-year-old Marian Robinson is just grandma to 10-year-old Malia and 7-year-old Sasha. For nearly two years, she's been the primary caregiver when mom and dad have been away -- taking the girls to school, piano and tennis lessons. Now, she, too, may be moving to the White House. The Obamas not only want her, they need her.
M. OBAMA: There is nothing that makes me rest more now that I have to work, than to know that my kids are being loved and cared for by someone who is teaching them values and discipline, and giving them a little extra candy every now and then.
CHO: Not just candy, her fried chicken with Ritz crackers in the batter, famous. The girls love it. Close family friends call her wise, even keeled and fun. And she freely admits she sometimes breaks the rules at home. She makes sure Malia and Sasha are in bed by 8:30, but at her house, the girls can stay up late, play games and watch as much TV as they want.
Robinson told the "Boston Globe", "I do everything that grandmothers do that they're not supposed to." Robinson wouldn't be the first First Grandma to live at 1600 Pennsylvania Avenue. Perhaps the most notable, Madge Wallace, mother-in-law to President Harry Truman.
LARRY SABATO, UNIVERSITY OF VIRGINIA: Harry Truman was deeply in love with Bess Truman. He called her the boss. Well, the boss's boss was Bess Truman's mother.
CHO: And the boss's boss never liked her son-in-law, the commander-in-chief.
SABATO: The truth is the mother-in-law never considered Harry Truman worthy of her daughter, even after he became president.
CHO: By all accounts, the Obama family dynamic is different.
SABATO: If it all works out, it could be great P.R. for mothers- in-law.
(END VIDEOTAPE)
CHO: Mothers-in-law get a bad rap sometimes. They're butt of jokes. But Barack Obama had made it clear, he loves his mother-in- law. But one political historian we spoke to says, you know what, if there's any tension, we're not going to hear about it until after the books are written. That's when the juicy stories come out.
CHO: But Barack Obama has made it clear he loves his mother-in- law.
But one political historian we spoke to said, you know what, if there's any tension, we're not going hear about it until after the books are written. That's when the juicy stories come out. You know that, John.
One thing is certain, though, everything we spoke to believes that Marian Robinson moving into the White House is a good thing not only for the Obama girls but certainly for the First Couple and especially the upcoming First Lady, Michelle Obama.
ROBERTS: So what do you think, she's angling for the Lincoln bedroom there?
CHO: Well, there are 16 bedrooms. She'll have her pick there.
(CROSSTALK)
CHO: There's plenty of rooms.
ROBERTS: But it really would help them out, wouldn't it? Because on the campaign trail, they didn't get out a lot.
CHO: No, they didn't until last summer. In fact, they made a decision not to leave the girls overnight until Marian Robinson retired from her bank job last summer. And that's when the Obamas said -- Michelle Obama, in particular, said we can take overnight trips.
ROBERTS: Great. Thanks, Alina.
CHO: You bet.
ROBERTS: Marian, Lincoln bedroom.
Kiran?
CHETRY: Hey, I'm all for it. My mother-in-law is free to move in at any time. That's wonderful. Good for them.
Well, fighting the flu online. Google is getting into the public health business. We'll tell you about the software it's rolling out to keep you one step ahead of the nasty virus. It's 41 minutes after the hour.
One-on-one with President Bush.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I've had a lot of reasons to be, you know, proud, I guess, is the right word.
(END VIDEO CLIP)
CHETRY: The outgoing President looks back on his proudest moments in office and the ones he wishes he could take back.
(BEGIN VIDEO CLIP)
BUSH: I regret saying some things I shouldn't have said.
(END VIDEO CLIP)
CHETRY: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Welcome back to the "Most News in the Morning." You know, Google is getting to the public health business -- sort of. They're hunting for flu outbreaks across the country and trying to track them. Turns out one of the first things people do when they come down with the flu is they search the Web for some tips on how to treat themselves.
Well, Google now plans to track those searches. Engineers say that big spikes in flu-related searches could be the first real-time way to warn of an outbreak taking shape in your home town. You can check it out on Google's sister site, google.org.
And our Jacqui Jeras is in for Rob Marciano at the Weather Center in Atlanta.
You guys also do some flu tracking, right? You try to help us out with the cold and flu report this time of the year.
JACQUI JERAS, AMS METEOROLOGIST: We do. Absolutely. Watch it on Sunday mornings, I think, at 11:00. We're going to be sponsoring that. But you know, tip number one, get your flu shot.
Did you get your flu shot, Kiran?
CHETRY: I'm scheduled to get it next week. Hopefully, it hasn't come to this area yet.
JERAS: All right. I got mine.
CHETRY: Good for you.
JERAS: Hopefully, everybody will get theirs as well. Absolutely.
CHETRY: I bet you're the kind that already did your Christmas shopping, too, Jacqui?
JERAS: I have a few people done.
CHETRY: See that.
JERAS: Not everyone. I like to plan ahead. I admit it. I'm a planner.
(WEATHER REPORT)
CHETRY: All right. Not too bad. Jacqui Jeras, thanks.
ROBERTS: For the first time since former presidential candidate John Edwards admitted to cheating on his wife, he is back on the spotlight and he's speaking out. We'll tell you what he said. Coming up. It's 46 minutes after the hour.
Buying off the rack.
(BEGIN VIDEO CLIP)
JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT: Ivory Sasha. We've got pink Sasha.
(END VIDEO CLIP)
ROBERTS: Jeanne Moos tracks down the source of the First Kids' passion and finds some very surprised designers.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Brenda, can you believe this? Look at this. This is your dress.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Michelle Obama has been compared to Jackie Kennedy, the gold standard as a First Lady of style. And the young Obamas -- the two young daughters who are right behind her, also setting their own fashion trends. CNN's Jeanne Moos takes a look at the pint-size "fashionistas."
(BEGIN VIDEOTAPE)
MOOS (voice-over): Only 7 years old and already, she's got something named after her.
(on camera): What's this dress called now?
BARBARA ZEINS, PRESIDENT, GERSON & GERSON INC.: Well, we're calling it Sasha now. Why wouldn't we?
MOOS (voice-over): After all, millions saw her wearing it. Oh, sure it was Mrs. Obama's dress that caught everyone's eyes and lots of flak, described by one blog as hell-colored. The critic posted, "She was probably just dressing a moose backstage."
But the kids are also casting fashion shadows, albeit little ones. The designer of Sasha's dress watched Barack Obama make his victory speech on TV without recognizing her dress until a co-worker showed her a photo the next morning.
CAROL HICKS, CO-WORKER: Brenda, can you believe this? Look at this. This is your dress.
BRENDA EDWARDS, DESIGNER, "SASHA" DRESS: That's what she did. But it was a little bit louder.
MOOS: How did designer Brenda Edwards react?
EDWARDS: And I said, ahhhh.
MOOS: Here at Gerson & Gerson, overlooking Macy's in New York City that now creating Sashas in colors other than black for next season.
(on camera): Ivory Sasha. We've got pink Sasha.
(voice-over): There are Sashas, everywhere. The company says they believe the Obamas bought the dress at Nordstrom or Dillard's for about $75.
ZEINS: I shed a few tears over this. I think we all did. We come to work every day, and you know, we're just sort of your average schmooze making dresses here in the back room.
MOOS: As for Malia's red dress, its maker, Biscotti Inc. says it retails for about $110. Leading one person to post on the "Wall Street Journal" blog, "So does this mean Obama will add an extra $110 tax credit to each child so we can buy them designer clothes that they will outgrow in a year?"
Hey, come on, it's a dress for the night their dad was elected president.
The Scotty's co-owner is volunteering to dress the girls for the inauguration. When their mom wore this on "The Tonight Show".
M. OBAMA: This is a J. Crew Ensemble.
JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": Really? Wow.
MOOS: J. Crew used ads to take advantage of the Obama connection. The kiddie clothing company say they don't expect to make much money from the girls, but boy are these models cute.
UNIDENTIFIED GIRL: Hi, daddy!
MOOS (on camera): Do you have this in a size 12?
MOOS (voice-over): It helps to be small enough to pick up to qualify as a first kid fashionista. Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
ROBERTS: Post-election showdown.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There's an urgency here and it can't wait for an Obama administration.
(END VIDEO CLIP)
ROBERTS: Adding the auto industry to the bailout. Can Democrats make a lame duck run?
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I've made it a high priority for my transition team to help the auto industry adjust.
(END VIDEO CLIP)
ROBERTS: Plus, when the hockey mom is the headliner, what's really on the agenda? Inside the GOP governor's meeting.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We need Sarah Palin to go away for a while.
(END VIDEO CLIP)
ROBERTS: Regretting, regrouping, repackaging Sarah Palin. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Taking a look now at your top videos on CNN.com. Most popular -- putting on the pressure. Former President Jimmy Carter is reminding President-elect Barack Obama that he promise to begin work on a mid-East peace plan immediately after taking office.
Next, President Bush sat down with CNN's Heidi Collins. The one- on-one exclusive is the President's first since Election Day. We'll bring you much more of that coming up at about 25 minutes here on AMERICAN MORNING.
And political overtime in Minnesota. Senate Republican Norm Coleman leading his Democratic rival, comedian-turn-candidate Al Franken by just 206 votes. That's triggering an automatic recount. The mud slinging has gotten absolutely nasty, and those are your top stories on CNN.com.
CHETRY: That's right. For most of us, the election is over. Not for Minnesotans, though. Those below-the-belt blows from Norm Coleman and Al Franken -- take a listen to this clip from a debate before the election.
(BEGIN VIDEO CLIP)
SEN. NORM COLEMAN (R), MINNESOTA: My anger, Gary, in this is about an ad that's attacking my wife, that's defaming my wife.
AL FRANKEN (D), MINNESOTA SEN. CANDIDATE: This is not about Norm Coleman's wife. This is about Senator Coleman's political sugar daddy.
(END VIDEO CLIP)
CHETRY: Wow. So, what do Minnesota voters think about where this race has gone, and actually where it's going? Joining me now is Jay Kolls. He's the co-host of KSTP's "Willie and Jay" show in the Twin Cities.
Good morning, Jay. Thanks for being with us.
JAY KOLLS, CO-HOST, "WILLIE AND JAY": Good morning.
CHETRY: You've been around a long time and watched a lot of this. Is this the ugliest race that we've seen in your state?
KOLLS: This is the ugliest one. I've been here almost 20 years. This is the ugliest political campaign I've seen in nearly 20 years. You know, most of us would like to just see them get in a cage, put the gloves on, go toe-to-toe and just end it, and be done with it.
CHETRY: It's very interesting, because Minnesota is quite unique in that. I mean, you elected an independent governor, Jesse Ventura, former pro-wrestler. It seems like people -- and the independent candidate Dean Barkley did fairly well. I believe he got about 15 percent of the vote? Are they just so fed up with what's been going on?
KOLLS: Yes. You know, I think Barkley is a factor here that you got to pay attention to. The political experts here thought Barkley would actually take votes from Franken. As it turned out, he took votes from Norm Coleman, and that's why this race is as close as it is. It's less than one, 100 of a percent. Without Dean Barkley in this race, I think Norm Coleman would have won.
CHETRY: Yes. And we saw this on election night. We couldn't believe it. It was running at 42 percent. And then, when you saw the vote totals, we are now at the point where only 206 votes separate Norm Coleman, the incumbent Republican who is still ahead, and Al Franken. They say that even after this hand recount takes place, it's most likely to make its way to the courts. Where do you see this ending?
KOLLS: Well, the Secretary of State said the recount will start next Tuesday. He hopes to have it done by December 19th. But the lawyers had been so involved in this, already, it's been like a ping pong going back and forth in the courts about which ballots should or should not be counted.
I suspect that if it stays this close, which it probably will, you'll see the attorneys -- everybody loves attorneys, especially when you need a good one. I expect the attorneys won't let this die on December 19th. It will probably go into January, at least.
CHETRY: Do you think there's going to be a winner before the new congressional session gets underway in 2009?
KOLLS: If I had to predict, I would say yes, because -- and here's why. Even if the attorneys get involved and want to take it to the courts, I would expect one of these two candidates to stand up and say the process is bigger than us. Minnesotans like this done neatly. They want to have faith in their electorate and their electoral system, and I would think one of them would step aside before it got to that point. CHETRY: It also affects the balance of power, of course, in the Senate right now. Are we going to be seeing, perhaps, surrogates for both coming to your state campaigning all over again, or at least, you know, not necessarily campaigning because people can't revote but at least trying to sort of sway public opinion one way or the other?
KOLLS: You know, that could happen. I think it's unlikely. I think both candidates will let the process take its course. This should be done with the secretary of state at least by December 19th. And I think they'll let the process work its way through. And then, I whole heartedly believe one of them will probably step aside.
Now, as I say that, the attorneys are getting ready and lining up to challenge whatever happens here. But I can't imagine it going that far. You know, there wasn't really a sea change here in Minnesota in this election. When you look at it by county by county, the red counties stayed red, the blue counties stayed blue. The only difference, really, was Dean Barkley. That really change the outcome and the complexion of this election.
CHETRY: And what are your listeners saying about when this is finally decided, if there really going to be a winner, even if there is a winner?
KOLLS: They will accept whatever the polls and whatever the recount shows. I think Minnesotans, like I told you, they just want it to be over with. I think they're tired of it. It's been a long campaign. This one was particularly nasty. I think if it goes any further and goes to the courts, people here will literally start to hit their knees and start weeping. I think they just want it to be done, to be honest with you.
CHETRY: I hear you. All right. Well, nearly three million votes needed to be hand counted. You said this could drag out all the way into January. Wow. Jay Kolls, thanks so much for joining us this morning.
KOLLS: You're welcome.
