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American Morning

Obama Meets Today with McCain; Japan Officially in a Recession; Presidential Pardon Pile Up; Hearing Today to Change "Safe Haven" Law; AP: 53,000 Jobs Cut at Citigroup

Aired November 17, 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 on one minute before 8:00 here in New York. A look at the top stories this morning. Mother nature coming to the aid of firefighters in southern California, calming the powerful Santa Ana winds that have driven three wildfires in and around Los Angeles county. So far more than 34 square miles have been scorched, more than 800 homes destroyed. Crews say they're making progress, but warn they'll need several more days before they're able to bring things under control. Investigators have called one of the fires suspicious.
And this morning, "Endeavour's" crew is getting ready to work on a huge home make-over at the international space station. The shuttle docked yesterday bringing with it an additional bathroom and sleeping quarters and a water purification system allowing them to recycle waste water. Once the work is done, it will allow twice as many astronauts to live in the station.

And in Japan, it's officially now a recession, for the first time since 2001. After a big drop in demand for Japanese exports. The announcement was expected and comes to stay after the European Union declared it was in a recession. Japan is the world's second biggest economy.

JOHN ROBERTS, CNN ANCHOR: To the "Most Politics in the Morning" now.

And happening in Chicago. President-elect Barack Obama moving with meticulous speed in his transition to the White House. And while he still has 64 days before he takes office, he is already zeroing in on efforts to revive the wrecked economy that he has inherited. Last night, CBS's "60 Minutes," Obama explained what action he thinks needs to be taken.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), PRESIDENT-ELECT: We have to do whatever it takes to get this economy moving again. That we have to -- we're going to have to spend money now to stimulate the economy, and that we shouldn't worry about the deficit next year or even the year after. That short-term, the most important thing is that we avoid a deepening recession.

(END VIDEO CLIP)

ROBERTS: And for the first time since the campaign today, Barack Obama comes face-to-face with John McCain. CNN's Suzanne Malveaux is live for us in Chicago this morning.

And Suzanne, what can we expect out of this meeting?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, John, this really is an opportunity for Barack Obama to meet John McCain on his home turf here in Chicago. The last time they were face-to-face, as you know, is the final debate. So, he really is getting some points just for reaching out here.

But we're told, don't expect any kind of announcements or any, you know, a role for John McCain, any formal role when it comes to the Obama administration. But they're certainly going to sit down and they're going to talk about ways that they can bring both sides together. That there are some things that they share when it comes to climate change, when it comes to ethics reform. And the one thing that Barack Obama said that I thought was important is he talked about the state of the economy.

He said it's a unique time now where you've got people, on the Republican, the right-leaning side, the left-leaning side, the Democrats, who can look at this global financial crisis and agree on one thing. And that is the fact that they've got to do a lot of spending, that not to worry so much about the federal deficit in the next couple of years or so, that this is something that they have got to do to prevent even a worse recession.

So that is something that he hopes he can come to terms with both of them, sitting down and discussing ways that they can deal with this. And he's going to need essentially John McCain and some of those moderate Republicans as they take a look at bailing out the auto industry. He's going to need some of those votes from the Republicans in the Senate -- John.

ROBERTS: Obviously, the economy issue number one for so many people. And new CNN Opinion Research Corporation Poll found that most Americans believe that secretary of the Treasury is the most important spot that he's got to fill. But he's also talking a lot, as we mentioned, talking with certain amount about national security. That's important for him, as well.

MALVEAUX: And I thought what was really striking about the interview last night with CBS's "60 Minutes" is that he said national security, getting his team, that is the top priority because of course the United States could be vulnerable during this transition time when it comes to terrorist attack.

And he mentioned Osama bin Laden. He said Osama bin Laden, it was important that he was captured or killed, and he said that he was an operational leader of al Qaeda, which is quite significant. We haven't heard a lot about Osama bin Laden, but an operational leader of a group that he says is aiming at attacking the United States. That is significant when you take a look at that statement and the importance of going after that terrorist leader -- John.

ROBERTS: A lot of tough talk coming out of the Obama campaign.

Thanks very much. Suzanne Malveaux for us this morning in Chicago.

CHETRY: Well, the speculation behind whether or not we'll see a Secretary of State Hillary Clinton made its way into Barack Obama's first post election interview. Here's what he had to say about it on "60 Minutes" last night.

(BEGIN VIDEO CLIP)

STEVE KROFT, HOST, "60 MINUTES": You met with Senator Clinton this week.

OBAMA: I did.

KROFT: Is she on the short list for a cabinet position?

OBAMA: You know, she is somebody who I needed advice and counsel from. She is one of the most thoughtful public officials that we have. Beyond that, you're not getting anything out of me, Steve.

(END VIDEO CLIP)

CHETRY: So, should she take it? Would she take it if she is indeed formally offered the spot as tough diplomat? Democratic strategist James Carville joins us now from New Orleans this morning. Good to see you.

You're close with the Clintons, of course. What do you think? What do you think is going on in her mind right now as she's trying to decide if, indeed, this is offered, whether or not she should take it?

JAMES CARVILLE, CNN CONTRIBUTOR: Well, my sense is there's some momentum for this to happen, but there are a lot of questions. And, you know, President Clinton has done work with helping tens of millions of people around the world with CGI, and it's a Clinton foundation. And I think they're trying through these issues. I think the President-elect wants to be comfortable that this has been resolved. And I think people are working on that. And hopefully, it will get done. We should know here pretty soon.

CHETRY: What about her political future? Is this a smart move for her political future? Because, I mean, usually you serve one term, right, as Secretary of State. So, what does she do four years from now?

CARVILLE: Well, you know, when it's the time of peril like this and the President of the United States calls you, sometimes -- obviously, people do what's best for the country. And you're right. She's got a terrific career in the United States Senate. She's been working on national health care forever. But, you know, to be Secretary of State of the United States is pretty important job at a time like this. And I just think she would be a great fit for the job. I hope this works out for the sake of the country. And I think the President-elect wants it to work out, also.

CHETRY: Do you go back as a former Secretary of State and then run for president again? CARVILLE: You know, I don't know. And boy, that's a long way down the road. Senator Clinton is very young. I assume that this president is going to have eight years. He's certainly is off to a good start and that's a norm. And, you know, we'll wait and see.

But right now, it seems that there is enough, you know, enough trouble around the world and at home that she can stay pretty busy for a while being Secretary of State and I think that's a pretty good job.

CHETRY: All right. Well, we can ask Al Hague whether or not that works out if she want to run for president again. But what about President Clinton. As you alluded to in the beginning of this, there's a lot of talk about the impact of perhaps international investments, maybe some charity projects, speaking engagements, all of that, that could -- could weigh in as this vetting process as we got a glimpse of yesterday with the Obama camp is extensive.

CARVILLE: Right. Well, you know, let's -- also, negotiating drug contracts, to save price on drugs. I don't know how many lives the Clinton Foundation is in responsible for saving, but it's in the millions. And he's very active abroad and that's something that has to be looked at and it has to be dealt with.

CHETRY: Right.

CARVILLE: It's certainly a legitimate concern, and I think they're working hard to try to get that done.

CHETRY: In that same interview yesterday with "60 Minutes" when asked if he was going to have a Republican in his cabinet, he said yes quickly. And definitively it seems, who would that possibly be. What position if, indeed, Hillary Clinton accepts Secretary of State?

CARVILLE: I don't know names, but I think what they are looking at as opposed to just having a Republican in the cabinet, I think they're looking for something like almost a coalition government. I think that -- I wouldn't be surprised if you saw more than one Republican cabinet member and you saw some Republicans in agencies.

I think that the President-elect and his team -- there's a lot of talk about (INAUDIBLE) book of team of rivals.

CHETRY: Right. You are right.

CARVILLE: I think they're moving more. I think also the operative word here is really bipartisanship. And I wouldn't be surprised, it's historic.

CHETRY: OK, so, could one of them be John McCain, then? Speaking of team of rivals. They're meeting today.

CARVILLE: That's a kind of a hard thing to do. And, remember, you have just the politics of it. There is a Democratic governor there and he is a Republican. And I don't know if General McConnell would be in a very, very good mood. I don't know about Senator McCain having a position in the government. But I do think you're going to see more than one Republican cabinet member and I think you're going to see some Republicans underneath the cabinet level. I think that they're really working hard to try to do this and bring us some version of a modern coalition government, the United States, if you will.

CHETRY: It would be very interesting to see how these decisions finally get made and when.

James Carville, great to see you, as always. Thanks.

CARVILLE: Thank you.

ROBERTS: The latest on the California wildfires. Last night, it looked like a wall of fire closing in. But, today, firefighters are getting some welcome help from the Santa Ana winds.

And gas prices dropping again. We'll tell you what's behind the plunge and which state had the highest and the lowest prices at the pump right now. It's eight minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Live picture there in Washington, D.C., in the steps of the Capitol as the freshmen members of Congress get their photo taken. Of course, they are giving the orientation there before the new Congress. The 111th takes effect in the beginning of January of next years.

Of course, a lot of them angling for the best office space in town. That's always a big part of the parlor game there in Washington as who gets the best office space. There are your incoming freshmen. The freshmen class there in Washington this morning.

CHETRY: I hope they remember their locker combinations.

ROBERTS: (INAUDIBLE).

CHETRY: We have some breaking news. California firefighters are getting a major break as the dangerous Santa Ana winds start to die down now. The wildfires in and around Los Angeles County erupted Thursday and have since burned through more than 800 homes. An estimated 35,000 acres have been scorched. And work crews say they are making progress. More than 10,000 residents have been told to get out.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I woke up to a police officer standing in my bedroom telling me that we had to get out. There were people running around in their pajamas. It was just pandemonium.

UNIDENTIFIED MALE: It's OK. Now, I'm alive. I've got my son. I've got my wife. And I'm alive. Everything is good. UNIDENTIFIED FEMALE: It's a blessing in a strange way. You know, it's -- when you have everything taken from you, but you still have faith and you have each other, it's the most amazing thing.

(END VIDEO CLIP)

CHETRY: Investigators are now calling one of the three fires burning right now suspicious.

Some of your i-Reports from the fires. Dr. Laura Triplet sent these photos that capture the smoky skies in Fullerton. She says the smell was so bad that she had to sleep in the closet of the master bedroom as the only place she could find that had no windows.

And Josh Grier from Yorba Linda took the photo of Danny Padron desperately hosing off the roof of their home. Padron says he watched footage of people's homes burning and decided to take matters into his own hands so that the same thing wouldn't happen to them.

And Michael Hanzich snapped these photos also from Yorba Linda. He said his eyes were burning so badly that he should have worn some goggles. He also said it was really hard to breathe.

Well, continue sending us your photos and videos. Log on to ireport.com and upload your footage and please, of course, keep yourselves out of harm's way as you capture some of those images.

ROBERTS: It's coming up now on 12 minutes after the hour. We're talking this morning about Japan being in a recession, Germany is in a recession. Expecting a lot of job loss here in the United States, too, even though we are not officially in a recession. And one of the big companies we're looking at today is Citigroup as well.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's right.

You know, a town hall meeting happening right now with the executives of that company and some of the employees. We know that last week, there've been a lot of talks about just how many job cuts were going to be happening there. We're waiting to find out if there are more details today about just the extent of cutting jobs at Citi.

We know that it's been a tough environment there. We know it's been hit hard by credit crisis and what's been happening in the markets. So, a lot of folks, who are employees this morning at Citi, are anxiously awaiting to find out what executives are telling them in that town hall earlier today.

Now, I wanted to update you, too, on where we are on TARP, the Troubled Asset Relief Program. That is the wonderful government acronym for the bailout. $700 billion in that bailout. Half of it has been authorized by Congress to be spent. Of that half, $60 billion remains and there is frankly, a food fight on Capitol Hill for that money.

Among the things that they want to spend that money on is a bailout of the big three automakers. Now, a big concerted push by the automakers to try to get a piece of that money or a piece of some kind of federal aid. GM with a YouTube video. I want to show you what GM is sending out there to try to maybe convince the YouTube generation.

Thousands of people this morning so far already have logged on to that to try to see what the case is. For the ripple effect, what would happen if the big three automakers didn't get a federal bailout. I'm telling you one thing, jobs, jobs, jobs. This says, it would go throughout the entire economy. And it's a pretty -- you know, it's a well-produced, pretty compelling video.

At the same time, there is still a very articulate argument on the other side and that argument is being made as well. In the "Wall Street Journal" this weekend, the Republican governor of South Carolina saying, you know, we don't want a bailout for the "Big 3." It's just not right. We don't want bailouts over and over and over again. And stimulus? How do we pay for it? We borrow the money to pay for all of this. He says, "There's something very strange about issuing debt to solve a problem caused by too much debt."

CHETRY: No easy answers, for sure.

ROMANS: There aren't. And we're going to be finding about this for weeks, I'm afraid.

CHETRY: All right. Thanks, Christine.

ROBERTS: Requests for a presidential pardon are piling up this morning, but do convicted felons stand a chance of President Bush getting them off the hook? We'll take a look with our Sunny Hostin, coming up.

(COMMERCIAL BREAK)

CHETRY: Right now at the Justice Department, the requests for 11th hour pardons from President Bush are piling up. So, just who are these people looking to be set free? AMERICAN MORNING legal analyst Sunny Hostin has been looking into it and she joins me now.

Good to see you, Sunny.

SUNNY HOSTIN, AMERICAN MORNING LEGAL ANALYST: Good morning.

CHETRY: Now, President Bush never actually issued a high-profile pardon in the past. So, why do we think he may do it now?

HOSTIN: Well, you know, Bush is at the end of his eight-year term and he is at the end of his political career arguably. So, this is the point where we typically see presidential pardons, Kiran, sort of like Clinton. And we're hearing that he's received over 3,000 pardon applications.

It's being reported that Scooter Libby, Vice President Dick Cheney's former chief of staff, and Marion Jones, the former Olympic gold medal winner, may have filed pardon applications. Also, there's a lot of talk about possible preemptive types of pardons being issued for members of the Intelligence community that were involved in the Bush administration's enhanced interrogation policy, which included, of course, the practice of water boarding.

CHETRY: So, this is also interesting when you look at it. President Bush has issued 157 pardons in all of his presidency. It's the fewest of any president. By contrast, President Clinton at the time issued 140 just on the last day, some of them pretty controversial.

HOSTIN: Sure. Very controversial, actually. He did issue 140 on his last day. Marc Rich, the billionaire who fled to Switzerland after his indictment by then New York U.S. Attorney Giuliani for tax evasion and making oil deals with Iran during the hostage crisis. Many say it was his ex-wife, Denise Rich's contribution to the Democratic Party that paved the way, Kiran, for the pardon.

Also, Patty Hearst. Who can forget her? The granddaughter of Hearst publishing magnate and she was kidnapped, tortured by the SLA. She joined the group after being kidnapped and robbed the bank and she was convicted of that bank robbery. And Clinton pardoned her.

Now, he also pardoned, of course, his brother, Roger Clinton. And Roger Clinton was convicted of drug dealing in 1985.

CHETRY: That's interesting. The Department of Justice does have guidelines about issuing presidential pardons, but President Bush does have a lot of flexibility here, right?

HOSTIN: You know, he really does. There is a process in place, Kiran, for presidential pardons. All pardon applications are supposed to go to the Office of Pardon Attorney and no petition is supposed to be filed until at least five years after a conviction or release from prison. But the Justice Department reviews the application and prepares a recommendation for the president.

Interestingly enough, the president doesn't have to follow that recommendation, consider the recommendation of the Pardon Attorney and that, I think, is one of the unique things about the presidential pardon. The Constitution gives the president absolute power to grant a pardon for any reason to anyone.

CHETRY: We'll see what happens. You said 3,000 some are waiting?

HOSTIN: 3,000 are waiting.

(CROSSTALK)

CHETRY: All right. Thanks so much, Honey. Honey and Sunny, good to see you.

HOSTIN: Honey is fine.

ROBERTS: As long as you say it and not me.

CHETRY: I know.

ROBERTS: There you go. Fed up with your difficult teen? In one state, it is perfectly legal to just abandon them and desperate parents are doing just that. But all of that could change in just hours. We'll tell you about it.

And how kids in need are getting free laptops, an ambitious program that you can easily help with. 19-and-a-half minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: 21-and-a-half minutes after the hour. In his interview last night, Barack Obama did not hesitate at all when asked if he would name a Republican to his cabinet. He said immediately, yes. And a lot of people are wondering if it might be Defense Secretary Robert Gates. If he'll be asked to stay at the Pentagon. Our Barbara Starr is at the Pentagon this morning. She's got news on that.

What do you think? What's the thinking around there, Barbara? Might he be ask to stay on.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, John, I have to tell you, the fate of Bob Gates as Secretary of Defense now issue number one, at least in these Pentagon hallways. Will he stay? Will he go? We're seeing a familiar pattern. The Obama camp not putting down the rumors at all. And Secretary Gates, the man who once said it would be inconceivable to him the circumstances under which he would stay now offering reporters a very thirst no comment.

But here, behind the scenes, the real issue is how is power wielded? How would Gates actually function? All of his senior staff are Bush loyalists. Would they stay? Would they go? How could he function if he has to replace a whole new staff? And, John, later today, the Obama transition people will be in the Pentagon for their first series of meetings. We'll be watching.

ROBERTS: All right. I'm sure you will. Barbara Starr for us this morning. Welcome back from Afghanistan, by the way, Barbara. I'm glad you made it back safe and sound.

STARR: Thank you.

ROBERTS: Kiran?

Oh, sorry, it's -- what time is it?

CHETRY: 22 minutes.

ROBERTS: 23 minutes actually after the hour now. We'll be right back.

Clinton in the cabinet.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think it's a brilliant move. She came within a hundred delegates of being President of the United States. You know, I think she's got worldwide experience.

(END VIDEO CLIP)

ROBERTS: Hillary Clinton as Secretary of State. Why some say it could be the best move Obama could make.

You're watching the Most News in the Morning.

(COMMERCIAL BREAK)

ROBERTS: Nebraska's Safe Haven Law was created so that newborns could be dropped off at hospitals without fear of prosecution by parents who thought they couldn't take care of them. It was never intended for teenagers. But a steady flow of parents have been dropping off teens and twins and never coming back. So, today, lawmakers are holding a hearing to add an age limit to the law.

Todd Landry is the director of the state's Division of Children and Family Services. He joins us now this morning from Omaha, Nebraska.

Todd, this law went into effect on September the 13th. Since then, Nebraska has become something of a dumping ground for children of all ages. How did no one see that coming?

TODD LANDRY, DIRECTOR, DIVISION OF CHILDREN AND FAMILY SERVICES: Well, this is actually, I believe, a really good example of unintended consequences. As you know and as you stated, our lawmakers really intended this law to be about protection of newborns and infants. But during the course of the development of the bill and the development of the law, the choice was made to not define the word child in the law.

And as a result, it's really opened the door for these teenagers and preteens to really come in, instead of the newborns and infants that was really intended to help.

ROBERTS: And let's look at what happened since September the 13th. A total of 35 kids dropped off, five of them from other states, 28 of them over the age of 10. One man whose wife died dropped off nine of his ten kids, ages 1 to 17. You're looking for an amendment. What are you looking for here?

LANDRY: Well, I'm in full support of Speaker Flood's bill that has been drafted for this special session that would limit the Safe Haven Law to children or I should say newborns under the age of three days. That's consistent with 14 other states in the country. We believe that that gets this bill back to the original intend, a bill to protect newborns, not these unintended consequences of teenagers.

ROBERTS: All right. So, again, let's look at what's happened since September the 13th. None of the children who were dropped off were even under the age of one. Let alone newborns or infants. So, how would this 72-hour rule address the problem out there?

LANDRY: Well, the issue that we have right now is to get the bill back and get the law back to the original intent of focusing on newborns. Regarding teenagers and preteens, certainly we empathize with parents who are struggling with parenting sometimes difficult teenagers. But there are appropriate ways of reaching out for help, getting the services and help that they need without taking the drastic step of abandoning these kids at hospitals in Nebraska.

ROBERTS: OK. So, you mentioned teens and preteens. But there are some lawmakers who think that the law should be amended so that the age -- the maximum age is say 12 or maybe 18 months. Because certainly, there are parents who maybe deal with the initial few days and then find themselves six, nine, 12 months out, incapable of taking care of these kids. So should that age range be raised? I mean, not up until the age that -- you know, we see some of these kids being dropped off, but maybe, you know, 18 months or two years? Because there are certainly parents who fall into crisis in that time period.

LANDRY: Well, certainly crisis and emergencies can happen, regardless of the age of the child. But we believe that Safe Haven Laws, as they have been enacted in 49 other states in the country, with a focus on newborns and infants, is the correct focus for these types of abandonment laws.

What we also need to do is, of course, deal with the issue of parents who are struggling with parenting older kids and we've been very aggressive in the past couple of months about getting the word out to families, about information and referral sources that they can access in order to get the help that they need, as opposed to taking this drastic step of abandoning your kid at the hospital, which in many cases I believe is causing more damage and more trauma to the child than the solution that the parents are trying to get.

ROBERTS: Yes, I mean, you read some of these stories, it's just tragic.

ROBERTS: Todd Landry, director of Child and Family Services from Omaha, Nebraska for us this morning. Todd, thanks so much.

LANDRY: You're welcome.

CHETRY: Breaking news on job losses. The Associated Press is reporting mass layoffs at Citigroup. Our Christine Romans has been following this story all morning. We're checking the latest information as we get it.

Christine, what do you know.

ROMANS: Well, we know that there are probably job losses coming. We know that there were job losses last week that people were talking about. And the company -- the spokesperson last week confirm that yes, that they had already been cutting jobs this year and they were cutting more last week. And we know that there is a town hall meeting with executives and company employees today.

The AP is reporting that the number will be 53,000 jobs. We have not independently confirmed that yet. And what we know already -- we don't know if that 53 includes some of the layoffs that we'd already been seeing, from the layoffs we were told about last week. Just how much has already been done, how much is attrition, how much will be new layoffs and closing departments?

But what we do know is this is a company that has been under stress, like the entire financial services industry. And layoffs there are widely expected on Wall Street. We know that the city of New York has been looking for maybe 165,000 layoffs for all of finance and the intended industries in the next year or so.

So we know there are layoffs expected and now AP is saying it's about 53,000 jobs. What we've been getting from people who work at the company and working our sources is that we're not going to have an official announcement until after the employees have had a chance to talk to executives and they've had this town hall meeting. So there will be a press release likely I would say and probably in the next half an hour. That's only my own estimation. That's anything I'm getting from the company. But AP is saying 53,000 jobs. That is a big, big - a big round of layoffs, that many jobs.

CNN is now saying that we are confirming that, indeed, Citi will cut about 50,000 jobs. So that's I mean that's tough and these are numbers that won't likely, right away, show up in the jobless numbers. The people get buyouts from their companies or if they're still on the payroll. It doesn't show up right away in jobless claims. So we'll probably see jobless claims really spiking next year.

CHETRY: How much of this has to do with the problems with these troubled assets and overall health of lending?

ROMANS: Everything. And the health of lending and the fact that the economy is sour and all of this starts to feed on itself. It's been four quarters of tough going for Citi since the beginning of this year, at the very least. So 50,000 jobs cuts is what CNN is reporting now.

CHETRY: All right. We'll continue to follow the latest update as we get them.

Thanks so much.

ROMANS: You're welcome.

ROBERTS: 64 days now until the transition in power. And this morning brand new polls in to CNN shows 77 percent of Americans have confidence that President-elect Barack Obama will make the right cabinet appointments. And when it comes to the two most important position, Secretary of Treasury is followed by Secretary of State, for which Senator Clinton is apparently being considered.

CNN's Jim Acosta is live for us in Washington this morning. Jim, what does former president Bill Clinton think of his wife possibly becoming secretary of state?

JIM ACOSTA, CNN CORRESPONDENT: Well, he's saying it's a great idea. And more importantly, we're not seeing the transition team knocking down this story like they have knocked down other stories. And if Barack Obama were to pick Hillary Clinton as his Secretary of State, he would be calling upon a former political rival who once questioned his readiness for the world stage, which may explain why some are saying it's a smart choice.

(BEGIN VIDEOTAPE)

SEN. HILLARY CLINTON (D), NEW YORK: To say that I'm not going to speculate or -

ACOSTA (voice-over): Barack Obama's first potential cabinet pick, Hillary Clinton as Secretary of State has the makings of a blockbuster. Prominent Republicans are weighing in. Secretary of State Henry Kissinger saying she would be an outstanding appointment.

ED ROLLINS, GOP STRATEGIST: I think it's a brilliant move. I personally think that you know, she came within 100 delegates of being president of the United States. You know I think she's got worldwide experience.

ACOSTA: Still, there's enough baggage in the Obama-Clinton relationship to fill Air Force one. Like the 3:00 a.m. ad Clinton ran to raise doubts about Obama's ability to handle a foreign crisis.

ANNOUNCER: It's 3:00 a.m., time for a president who's ready.

ACOSTA: During the campaign, the New York senator questioned Obama's stated interest in diplomacy with countries like Iran. She gave these dire warning to the Iranians should it ever launch an air strike against Israel.

CLINTON: We would be able to totally obliterate them.

ACOSTA: And Clinton once ridiculed Obama's opposition to the war in Iraq.

CLINTON: Senator McCain will bring a lifetime of experience to the campaign. I will bring a lifetime of experience and Senator Obama will bring a speech that he gave in 2002.

ACOSTA: Then there are the political implications. Analysts point to the upside, picking Clinton would reward his legion of supporters, many of them women. Down side? Passing on Bill Richardson could disappoint Hispanic voters. Also where would Joe Biden's years of global experience fit in with Clinton at state. And then there's the matter of the former president.

Yet campaign strategists say it is this unforgettable rivalry that could strengthen Obama as a new president.

JAMES CARVILLE, DEMOCRATIC STRATEGIST: She's you know terrific for that position. And the fact that he's willing to put all of this aside and go with obviously the best choice for the position here says a lot that's really good about him.

(END VIDEOTAPE) ACOSTA: Barack Obama has often praised the book "Team of Rivals" written by historian Doris Kearns Goodwin. The book is about Abraham Lincoln's decision to appoint political adversaries to his cabinet. Lincoln wanted debates in his White House not group thinking -- John.

ROBERTS: All right. Jim Acosta for us this morning. Jim, thanks.

So what obstacles could Bill Clinton pose for Hillary Clinton if the Obama administration looks to her as a possible Secretary of State? Our state department correspondent Zain Verjee has been looking into this. She's live in our Washington bureau this morning.

Good morning, Zain.

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Good morning, John.

There are reports that Bill Clinton's finances are being reviewed and essentially they're looking for any obstacles or any problems to Hillary Clinton being appointed Secretary of State. Now, Bill Clinton creates this very successful initiative called the Clinton global initiative and it essentially focuses on improving things like health, education, fighting poverty around the world. So the issue is what are his exact dealings vis-a-vis the Clinton global initiative with foreign governments?

I mean, he's raised hundreds of millions of dollars in donations for his initiatives. Where is that coming from? He's also had foreign donors help build his presidential library. Things like that, John, it could create a conflict of interest in a situation that she is Secretary of State, say she needs to be tough on a country and meanwhile a President Clinton has been dealings with that country. How does that work? So the question here is can they figure out how Bill Clinton can continue his work with the Clinton Global Initiative without complicating her work as Secretary of State if she takes it.

ROBERTS: Certainly there are no shortage of people who believe that the reason why Barack Obama did not choose her as vice president is because he didn't want to have to deal with Bill Clinton. Obviously, it would be different if she were Secretary of State. And putting her in that position would bring with it a whole series of positives, wouldn't it?

VERJEE: Yes, you know it would. Bill Clinton is hugely popular around the world, much of the world, looks to the Clinton era as a time when things were happier and safer. And his projects and initiatives around the world have been successful in many respects and has given him a massive boost. That's a wave that Hillary Clinton could ride and basked in, too.

ROBERTS: All right. State Department correspondent, Zain Verjee, for us this morning.

Zain, always good to see you. Thanks. CHETRY: Well South Korea could play a major role when it comes to salvaging the global economy. And our own Alina Cho sat down with that nation's president. We're going to hear what he says is a must in order to keep the economy back on track.

Also, the ambitious drive to give laptop computers to children in need across the world. How buying a low cost laptop yourself can put one in the hands of a child at the same time. It's 37 minutes after the hour.

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CHETRY: One laptop per child. It's a nonprofit organization that brings low-cost computers to some of the world's poorest children. And it has distributed more than 500,000 laptops in 31 countries since the program started. Nicholas Negroponte is the founder and the chairman of One Laptop Per Child. He joins me now from Washington this morning. Thanks so much for being wit us, Nicholas.

NICHOLAS NEGROPONTE, FOUNDER & CHMN, ONE LAPTOP PER CHILD: Thank you for having me.

CHETRY: It's amazing, half a million of these laptops out there and you just started this organization last November. You want to do a million by the end of this year. That's your goal. Explain why laptops are so important and what type of difference they can make in some of these countries for some of these children in these communities.

NEGROPONTE: Well look think of it this way, some of these children don't even have a school. They may be studying, in fact, under a tree. So what this is doing is this is connecting children to not only the Internet, but to other children. Every machine we deliver is bilingual, for example. So if you're in Pakistan or if you're in Rwanda, you get your local language and English. And we're finding now that the children all around the world are communicating with each other, not just teachers and doing the homework.

One of the principles we have is that every child takes them home. So for example, a child takes this laptop home with them, their parents very often say to us, we really want the child to go to sleep. And then when the child is asleep, we'll use it. The impact is huge. So think of children as the agents of change as well as getting an education themselves.

CHETRY: You know in some of these places where these laptops are going, they're also in need of and lacking in some cases basic necessities and basic medical treatments. What do us to critics who says, why laptops when there seems to be need for other things such that maybe should trump that.

NEGROPONTE: I say to those critics substitute the word education for laptops and you'll never ask the question again. it's really simple. You don't wait on education while you're working on primary medicine and clean water, obviously. They all happen together, plus education is always part of the solution for all these other problems. So we think of it as part of education.

CHETRY: I got you. And this is very interesting because people who support your program will have a chance to do this if they want to, to help themselves and help somebody else. Explain your give one, get one program.

NEGROPONTE: It's very simple. Starting today, you can buy one of these laptops for yourself and what you're doing is you're paying, literally, twice the amount. You're paying $399. Go to amazon.com. You buy one and give one at the same time. So go to Amazon, click, you get your laptop. But a child in Africa will also get a laptop. And this notion, which we started last year and it generated 100,000 laptops last year, those laptops went to exactly the right places.

They went to Haiti, Afghanistan, Palestine, Rwanda and in many cases, very remote parts of those countries. So what we're trying to do as a nonprofit humanitarian organization, which we were. We're not a laptop company, is get these to the kids who need them the most. And not only get inexpensive laptops, but in fact get a laptop that is designed for children from the bottom up. And it's really very powerful.

CHETRY: Yes. And if people are interested in this, they can find out more how to participate in this program, go to impact your world at cnn.com/impact and we have a link to it, as well. Thanks for joining us this morning. Your goal is one million. I hope you get there. Nicholas Negroponte, thanks.

ROBERTS: Breaking news this morning, pirates attacking an oil tanker on the high seas. We also have 50,000 people losing their jobs at Citigroup. We'll tell you about all of the economic news and piracy off the coast of Kenya. All that is coming up in the most news in the morning.

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CHETRY: All right. This just in to CNN this morning, the unfortunate news coming out of Citigroup this morning that they will cut more than 50,000 jobs, slashing the staff to 300,000. According to the Associated Press, a person who was briefed on the plans this morning says they are going to be cutting 53,000 jobs in the coming quarters, and that would be in addition to the 22,000 already being eliminated from Citigroup's company as of the end of 2007. They say that the total cuts bring these job reductions to 20 percent.

Again, this is coming from a person who was briefed about the layoffs at a meeting this morning. It still has not been made officially public. This is why the person did not want to be identified. But it's coming off of several quarters of bad news for one of the largest banks in the world. So again, 50, possibly 53,000 jobs being eliminated at Citigroup.

ROBERTS: Also just in to CNN this morning, word that pirates have hijacked a Saudi-owned oil tanker in the Arabian Sea. Saudi oil, it's not in the Arabian Sea, it's off the coast there of Somalia. Well, it is in the Arabian Sea, but south of the Persian Gulf. About 450 miles off of the coast of Kenya, our David McKenzie is standing by in Nairobi this morning on the telephone with late breaking details.

What have you got, David?

DAVID MCKENZIE, CNN CORRESPONDENT: That's right. This super tanker, the U.S. navy is telling me, I just got off the phone with the commander of the fifth fleet based out of Bahrain. In fact, this vessel was hijacked 450,000 nautical miles southeast of Mumbasi, Kenya. It's a super tanker. They say it's many times bigger, at least three times bigger than a U.S. aircraft carrier carrying oil. We don't know whether that oil have been dropped off or full of oil. This massive tanker has been hijacked by pirates off the coast of Kenya sovereignty and a serious escalation in this issue of piracy in this part of the world.

ROBERTS: So David, we obviously have heard a lot about Somali pirates and their brazen tactics in taking over ships, they've taken over cargo ships, they've tried to take over crew ships. This Saudi- owned oil tanker, it's owned by the Aramco Corporation running under a Liberian flag, I mean this would be the biggest target that they have taken on, wouldn't?

MCKENZIE: Well, that's exactly right. It's over 300,000 metric tons, apparently, so the (INAUDIBLE) tells me. And just to put it into perspective, the pirates generally use mother ships, sort of fishing vessels, they go offshore and try to take on these vessels. I mean that will be like someone in a mini taking on a building. This is a massive vessel that was hijacked by pirates in this region. (INAUDIBLE) is whether the pirates start taking on these massive super tankers, it could affect the world's oil prices, the world's oil flow. It could be that they've bitten off more than they can chew.

But they won't send any war ships to the vessel's aid because one the pirate take it, then it's now a hostage situation and they have to wait to see if negotiations between the pirates and that company can be successful. But obviously that remain more ransom are made, the more ships will be taken on.

ROBERTS: All right. So Somali pirates upping the ante here taking over the Serious Star, a Liberian flag Saudi-owned oil tanker, a massive ship as David was saying. Apparently 25 crew members on board from Croatia, Britain, the Philippines, Poland and Saudi Arabia. The U.S. fifth fleet is monitoring the developments there off the coast of Kenya, about 450 miles as David says southeast of Kenya in the Indian Ocean. We'll keep watching this story for you this morning.

It's coming up now 50 minutes after the hour.

Skimping on Skippy.

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UNIDENTIFIED FEMALE: They'll want to tell you if it's the new bigger size or better taste, but they obviously aren't going to tell you, we're skimping on you a little bit.

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ROBERTS: Why you're paying everything from soap to cereal and might never even notice. Chris Lawrence unveils supermarket secrets.

You're watching the Most News in the Morning.

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ROBERTS: If you find that you're running out of cereal or peanut butter more how often than you're used to, your family may not be eating more but you may be buying less for the same price and not even know about it.

Our Chris Lawrence is going grocery shopping for us this morning.

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CHRIS LAWRENCE, CNN CORRESPONDENT: John, Kiran, your shopping bag is getting a bit lighter these days. But guess what? You're still paying the same. There's a surprise underneath the jar of Skippy. It just developed a dimple, a curve in the jar that cuts out 10 percent of peanut butter. Less product, same price.

JAN HUTCHESON, SHOPPER: I think they're trying to take advantage of people not paying attention.

LAWRENCE: Skippy skimpy? Well, they're not alone. In the last year, a lot of your favorite products have gone on some heavy duty diets. Dial soap is still $2.99, but it's five ounces lighter. There's less iced cream in the cartons. And the Cheerios box is smaller.

BRIN ASHER, SHOPPER: And they don't advertise it at all. So really, I didn't even notice.

LAWRENCE: From the front, these boxes look the same as always. Kellogg's just making them less deep.

JULIE HOLMES, SHOPPER: They just don't want to tell you if it's the new bigger size or if it's the new better taste but they obviously aren't going to tell you we're skimping on you a little bit. We contacted these companies to find out why.

Kellogg's pointed to dramatic rise in the cost of grains. Dreyer's says our ingredients cost have risen by 30 to 60 percent. Skippy's parent company, Unilever says manufacturing and transportation have also increased significantly.

So why not just raise prices, even 10, 20 cents.

DREW CONRAD, SIMON KUCHER & PARTNERS: consumers tend to have this psychological price thresholds in their heads. So they say I don't want to pay more than $1 for a bar of chocolate

LAWRENCE: Pricing consultant Drew Conrad says when products break that threshold sales suffer. So the old 8 ounce Hershey bars slims down as more companies keep the price the same and cut the quantity.

When consumers figure all this out, are they going to stop buying certain brands?

CONRAD: Most people don't. They're very brand loyal. Do you change your breakfast cereal? I mean people get into certain habits. They trust certain brands.

LAWRENCE: Experts say shoppers should be checking the small labels that tell you exactly what you're paying per ounce. Because ultimately, it is up to the consumer to be vigilant -- John, Kiran.

(END VIDEOTAPE)

CHETRY: Dealing with North Korea's nuclear program.

(BEGIN VIDEO CLIP)

ALINA CHO, CNN CORRESPONDENT: Were he to come to you and suggest, I want to meet face-to-face with Kim Jong Il, is that something you would support?

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CHETRY: The leader of South Korea talks to our Alina CHO: about working with President-elect Barack Obama in the future. You're watching the most news in the morning.

(COMMERCIAL BREAK)

CHETRY: Well, as America deals with its own financial crisis, it may look to South Korea for some advice. That country experienced its own financial nightmare in the 1990s and could be a big player in easing the current global slowdown. And one reason could be the country's president, a former CEO of Hyundai. Our own Alina Cho got exclusive access to that president and has the exclusive story.

(BEGIN VIDEOTAPE)

CHO (on camera): Everything changes when you become president, right?

PRES. LEE MYUNG BAK, SOUTH KOREA (on camera): Yes. Changes (INAUDIBLE).

CHO (voice-over): South Korea's president, Lee Myung Bak says he can relate to President-elect Barack Obama. Both come from modest beginnings. Both campaigned on the promise of change.

LEE (through translator): I think he's the right kind of leader at the right time.

CHO: At this weekend's G-20 summit in Washington, Lee found himself in a leadership role.

In the 1990's South Korea had its own financial crisis. His advice, act swiftly on a stimulus package.

LEE: If you do not take such measure, then the bailout in the end will only get larger.

CHO: On North Korea, Lee says Obama has promised to consult with him before taking any action.

(on camera): Were he to come to you and suggest, I want to meet face to face with Kim Jong Il. Is that something you would support?

LEE: If a meeting between Chairman Kim and President-elect Obama will help resolve peacefully the North Korean nuclear issue, then I do not oppose the two gentleman meeting.

CHO (voice-over): It is unclear though, if North Korea's reclusive leader, Kim Jong Il, is even able to meet. He is believed to have suffered a stroke.

The North Korean government released these pictures, which it says prove Kim is healthy. But, some believe the photos are fakes.

(on camera): What do you know about the status of his health?

LEE: We haven't seen Chairman Kim out in public ever since mid- August. It's not like any of us saw or met with Chairman Kim and checked his health status.

CHO (voice-over): Lee says he's confident Obama will be well received on the world stage.

LEE: If there were any damages done to the global leadership of the United States, it could be because the U.S. relied maybe a bit too much on it's hard power. But, with the election of President-elect Obama, I am sure he will utilize the other side of power, namely the soft power.

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CHO: President Lee also told me that if it happens, he believes Hillary Clinton would be a fine Secretary of State. That being said, he also told me he has a personal relationship with Joe Biden. The two are friends. Lee said the two actually exchange letters, guys, and he calls him a longtime friend of South Korea.

He also said that he's looking forward to meeting face to face with President-elect Obama. The two talked by phone just after the election. But, he's looking forward to that meeting face to face.

CHETRY: All right. Well, great, great job.

CHO: Thank you.

CHETRY: You get a chance to talk to him one on one.

CHO: It's a lot of fun.

CHETRY: Thanks, Alina.

ROBERTS: Thanks, Alina.

CHO: You bet.

ROBERTS: That's going to wrap it up for us. We will see you back here again bright and early tomorrow.

CHETRY: That's right. Meanwhile, "CNN NEWSROOM" with Heidi Collins starts right now.