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American Morning
Big Three CEOs Greeted with Skepticism in Congress; Bill Clinton Clearing Path for Wife to be Secretary of State; Al-Zawahiri Blasting Obama; Latest on the Safe Haven Law
Aired November 19, 2008 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: It's now one minute after the hour, and here are this morning's top stories. As the CEOs of the Big Three automakers go back for day two on Capitol Hill, plans for an industry bailout are stalling. The car chiefs blame the economy for their woes, while many in Congress say it is years of mismanagement.
Former presidential candidate Mitt Romney published an op-ed at this morning's "New York Times," calling for managed bankruptcy for the auto industry. He talked about that earlier on the Most News in the Morning.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: And the companies are going to be there. We're going to support them. We're going to help propel them. We're going to get them strong. But we're not going to keep putting money into them while they are frankly uncompetitive long term. So, we're going to get them competitive, right-sized, highly productive. We're going to invest in new technologies. We're going to be there. These companies are not going away.
(END VIDEO CLIP)
ROBERTS: He is already a convicted felon and now it looks like he is also an election-day loser. In a race that's been too close to call, the vote tally showing Senator Ted Stevens of Alaska has lost his Senate seat to Democratic challenger Mark Begich. Begich is claiming victory in the race.
The nation's capital getting ready for a huge inauguration day crowd to see Barack Obama sworn in as the 44th president. All of the city's police will be on duty today, along with 4,000 officers from 93 agencies across the country. The mayor says there will be plenty of people to patrol.
(BEGIN VIDEO CLIP)
MAYOR ADRIAN FENTY, WASHINGTON: We should be prepared as a city for, you know, in the range of 3 million to 5 million. You know, we don't want to be caught by surprise.
(END VIDEO CLIP)
ROBERTS: Incredible number of folks coming out. 62 days now until Barack Obama's inauguration and there's lots buzz inside the beltway. It looks like Eric Holder, President Clinton's Deputy Attorney General will be heading up the Department of Justice in an Obama administration. Holder is still being vetted, but has indicated that he will accept the job. If confirm to the post, Holder will be America's first African-American Attorney General.
And breaking right now, former President Bill Clinton reportedly ready to open up his books to give his wife, Hillary, a crack at being secretary of state. According to "The Wall Street Journal," President Clinton has offered to release information related to any future business or charitable activities. His financial ties overseas became a big issue during Senator Clinton's presidential run.
Our team of correspondents is watching every angle of all of these political developments. Our Zain Verjee is live in Washington, Ed Henry is in Chicago for us this morning.
Zain, let's start with you.
In working your sources at the State Department, what exactly is the potential conflict of interest here with the Clintons' financial dealings?
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, the thing is, John, Bill Clinton raised hundreds of millions of dollars for his charitable foundation, including his presidential library.
Now, most of it, has reportedly come from foreign donors from countries like Saudi Arabia or Morocco. He's also been paid millions of dollars for giving speeches around the world. The real fear here is that the former president's charitable and business dealings could end up undermining Hillary Clinton's ability to conduct foreign policy.
I mean, what if she needs to get tough with countries and knock some heads together and he's doing business with those countries? So, what they're trying to do, clearly, is to find a way for him to continue without complicating her work as secretary of state, if she takes it, of course. And he's also going to be forced to be more transparent in his dealings -- John.
ROBERTS: But even if he is transparent about those dealings and any future speeches or donations are cleared by the State Department's Ethics Office and the White House Counsel's office, which is the two agencies that he would submit them to, there still could be a problem there.
VERJEE: Yes. I mean, the danger is that this is a former president. Bill Clinton is always out there in the world. He's making speeches. He's on the world stage and he could make comments about U.S. policy that could create some kind of confusion or some kind of difficulty. It's unpredictable. It's unlikely he remained silent.
Former presidents have in the past conflicted with U.S. policy. Take Jimmy Carter for instance, John. I mean, he really angered the Bush administration by going off and meeting as he saw fit with the Palestinian militant group Hamas when the whole U.S. policy was to isolate it. Secretary of State Rice was really irritated if that happened. So, it could be a thorn in the side, too, in that sense.
ROBERTS: All right. Zain Verjee for us this morning.
Zain, thanks so much.
KIRAN CHETRY, CNN ANCHOR: All right. Well, we've been following the Obama campaign in Chicago with our Ed Henry.
And this is starting to shape up a little bit like some of the critics are saying, the administration of the Clintons, part two.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, that's right. And you're going to hear some critics in the Democratic Party saying, look, you know, we thought we were voting for change, but instead we are seeing so many former Clinton insiders.
Starting with the fact that this entire transition being co- chaired by John Podesta, the former Clinton White House chief of staff. Their first move basically to bring in Rahm Emanuel, the former Clinton White House official, now going to be the Obama chief of staff. Greg Craig, the Clinton impeachment lawyer, now going to be Barack Obama's Chief Counsel in the White House. And then as you mentioned, Eric Holder, a very senior Justice Department official in the Clinton days, now expected to be Attorney General.
I think in fairness though to the transition, you have to point out, this is the farm team, the Clinton people. That was the last time Democrats had the White House. So, if you're going to get some people with experience, you're going to have to reach out to the Clinton people, number one. Number two, this is very, very early still in the transition. As you mentioned, there's still over 60 days.
We're only seeing a handful of the picks. Only really one for the cabinet with Holder. You have many more picks to go, and literally, thousands of jobs throughout the government. So, I think it's very likely we're going to see a mix of Clinton, sort of experienced hands, and then some Obama, sort of change agents, if you will, some governors, some outside Washington types, and so, it's going to be a blend.
But you're absolutely right, there are a lot of people raising eyebrows right now and I think in the end beyond just personnel, it's going to be what does Barack Obama as president do with that personnel in terms of shaping policy. That really ultimately will make the difference -- Kiran.
CHETRY: All right. And that's the argument some people are making about that -- that it's really policy, not necessarily people that signifies change. All right, we'll keep watching. Ed Henry, thanks. ROBERTS: It's coming up now on seven minutes after the hour. John King and his Magic Wall were the target of "The Daily Show" last night. The "Daily Show" spent nearly six minutes trying to figure out the wall's mysteries.
The reporter involved, John Oliver, was worried that the wall controls the military and he ends up being haunted by images of John King. Check it out.
(BEGIN VIDEO CLIP)
JOHN OLIVER, THE DAILY SHOW: Oh, no. Oh, (BLEEP).
Hello, John.
ANDERSON COOPER, CNN CORRESPONDENT: Tonight, I bring you a new late development as they happen.
CHETRY: The tanker dumping thousands of gallons of oil into the river.
CAMPBELL BROWN, CNN ANCHOR: When the presidential candidates trying to talk about any other issue, they are bombarded with questions about our economy and ending our dependence on foreign oil.
OLIVER: Oh, I think I lost him. Oh. Ah! Oh, no, no, no, please. Please. Before you kill me, John King, I just have a couple of questions. Do you control the military?
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: John, that's ridiculous. The Magic Wall is very powerful, but it's to analyze elections. It's a wonderful piece of technology, that's all it is.
You are making this very nefarious. We've used it as a great information tool. We can use the wall to go into South Carolina, to go into Colorado, go back in time, look at the Reagan days, the Clinton days, all to help people have context about this historic election.
OLIVER: I'm really sorry to have wasted your time, Mr. King.
KING: Not a waste of my time.
OLIVER: OK, thank you.
KING: Thank you, John. Take care.
OLIVER: I knew it! No! No! Damn you, King! No! Don't touch me! No, don't touch! Don't you make me dance.
KING: Good-bye, John. It's good to be King.
(END VIDEO CLIP)
CHETRY: Fantastic! John King has a second career as an actor. That's pretty good. ROBERTS: The Magic Wall is all-powerful and all seeing.
CHETRY: How about it? He can flip us upside down right now if he wanted to, so -- so we treat him with kid gloves.
Well, still ahead, we're following breaking news out of the high seas. India's army taking on hijackers off the horn of Africa. We have the very latest as the news breaks. It's nine minutes after the hour.
Safe haven.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Some children have been begging for their parents or guardians not to leave.
(END VIDEO CLIP)
CHETRY: The latest on the legal loophole that has parents driving to Nebraska as a last resort to abandon their kids.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I gave Skylar a kiss and a hug and I told him that I loved him and I went home.
(END VIDEO CLIP)
CHETRY: You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Well, that was just one of many desperate parents who have abandoned their preteens and teenage kids under the Nebraska Safe Haven Law. This was a law that was originally designed to prevent newborns from being abandoned. And this morning, the state's trying to take the first step to close the loophole that has led to many, many children being dropped off. Unfortunately, in most cases, these are preteens and even teenagers. CNN's Sean Callebs is live in Lincoln, Nebraska with more for us.
Hi, Sean.
SEAN CALLEBS, CNN CORRESPONDENT: Hi, Kiran. You're exactly right.
This safe haven measure was supposed to protect infants, babies. But of the 34 kids who have been abandoned at hospitals around the state, exactly zero have been babies. The youngest has been 5. What lawmakers and social workers say this has unintentionally exposed is the tremendous need for mental health treatment for kids here in Nebraska and in other states.
(BEGIN VIDEOTAPE) CALLEBS (voice-over): It wasn't supposed to be like this. Nebraska lawmakers are set to close a legal loophole this week to make sure that only infants less than 30 days old can be abandoned at the state's hospitals under its Safe Haven Law. Since it became law in July, any parent can legally abandon children of any age by declaring two simple words, Safe Haven.
(on camera): Heartbreaking, isn't it?
COURTNEY ANDERSON, SOCIAL WORKER: Absolutely. Absolutely. It's unbelievable the cases that we're seeing.
CALLEBS (voice-over): Often social worker Courtney Anderson has been the first comforting face children find.
ANDERSON: Some children have been begging their parents or guardians not to leave. They might not really understand why they are being left at the hospital, but they know they are being left and the parent or guardian might be fleeing.
CALLEBS: Legislators admit a certain oops factor.
SEN. BRAD ASHFORD (R), NEBRASKA: We didn't think that it would be use to the extent it was. We didn't anticipate children coming from other states.
CALLEBS: Parents like Lavennia Coover say they've abandoned kids with mental issues, that they simply can no longer control. Coover told lawmaker she left her 11-year-old son, Skylar (ph), at the hospital after enduring years of abuse and fighting.
LAVENNIA COOVER, MOTHER: I ran 11:45 p.m. that night. I gave Skylar a kiss and a hug, and I told him that I loved him and I went home.
CALLEBS: Many abandoned children end up in Nebraska's famed Boys Town, started by Father Flanagan nearly a century ago. But director says consider this before criticizing parents or the state.
REV. STEVEN BOES, EXECUTIVE DIRECTOR OF GIRLS & BOYS TOWN: I think it shows that what's going on is there are parents who are so desperate to get their kids help that they just don't know what to do.
CALLEBS: Lawmakers know they have been roundly criticized for the way the initial Safe Haven Law was crafted.
Is there anything you wish that the legislature would have done differently? Well, thinking back.
ASHFORD: No. I mean, basically, everyone stood up and said we are a caring state. We're going to -- we're going to address this issue. I'm proud of that.
(END VIDEOTAPE)
CALLEBS: And lawmakers are set to be back at the special session in just a couple of hours to renew discussion on this. Kiran, under the best of circumstances, the bill could not become law until Friday, at the earliest. So that leaves 48 hours more for parents can abandon kids at hospitals.
And think back to what that social worker said at the top of that story. Can you imagine the trauma a young kid goes through as he begs his parent to stay and that parent turns, walks away and walks away from responsibility of a lifetime?
CHETRY: Yes, it is heartbreaking and really unimaginable for most of us to us even fathom. Sean Callebs for us in Nebraska this morning. Thanks.
ROBERTS: A military warship, the latest target of pirate attacks off the coast of the Horn of Africa. The U.S. military's role in protecting ships in a live report from the Pentagon, ahead. It's 14- 1/2 minutes now after the hour.
(COMMERCIAL BREAK)
ROBERTS: 16-1/2 minutes after the hour. Breaking news this morning. After months of silence, Osama bin Laden's number two, Ayman al-Zawahiri, has raised his head above the tree line and is blasting Barack Obama this morning in a newly released video message.
According to the Associated Press, which has seen the message, which is posted, by the way, on militant Web sites, Zawahiri calls Barack Obama a, quote, "house Negro," an extraordinarily demeaning term, saying that he is the, quote, "direct opposite of honorable black Americans like Malcolm X and others."
It's al Qaeda's first public comment about Obama since the election took place. No doubt we'll be hearing more about that. Of course, the incoming President-elect has vowed that he is going to continue to crack down on al Qaeda, including trying to capture or kill bin Laden wherever he is hiding.
Breaking news this morning as well. Pirates staging another brazen attack after the Horn of Africa, after going after an Indian military warship. The crew shot back, setting one of the boats on fire. Our Barbara Starr is live at the Pentagon this morning.
And, Barbara, the U.S. military is monitoring the situation. What can they do about it?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Monitoring, John, but very little they can do. Let's get right to it. This is the latest photograph released by the U.S. Navy, now of a crew of a Chinese fishing vessel that was hijacked. And as you look at the picture, you can see that the crew is being held at gunpoint by the pirates who took the ship.
The challenge for the U.S. military? 2.5 million square miles of water to monitor. They can't be everywhere at once. They now say that pirates are capable of grabbing the ship in under 30 minutes. Admiral Mike Mullen, the Chairman of the Joint Chiefs of Staff talking about this earlier this week, said he was absolutely stunned by the attack on that supertanker, that pirates were able to grab it 450 miles off the coast of Africa. Listen to a little bit more of what Admiral Mullen had to say.
(BEGIN VIDEO CLIP)
ADM. MIKE MULLEN, CHAIRMAN, JOINT CHIEFS OF STAFF: Once they get to a point where they can board, it becomes very difficult to get them off, because accordingly they now they hold hostages.
(END VIDEO CLIP)
STARR: Pictures are showing these crews being held hostage and very little that the military can do about it. But they are now recommending to the maritime industry that they carry armed crews, that they travel even at faster speed. That costs money and fuel, but they say that could try and travel faster to outrun the pirates. But, still, these military maritime forces out there saying they're doing the best they can, but they just can't be everywhere at once. John?
ROBERTS: But, Barbara, what are the broader economic implications of all of this? I mean, if they're seizing cargo vessels and supertankers, it's got to be somewhat of a disruption to international shipping, at least in that region?
STARR: Absolutely. That is one of the underlying issues here. This is a growing economic problem. 16,000 ships a year passed through this region, carrying oil, dry goods, other cargoes, to Europe, to the United States. If those 16,000 ships have to start avoiding this area and going all the way around Africa, that will raise costs to everyone. $20 million to $30 million in ransom already estimated to be paid to the pirates this year.
And John, it also is becoming a humanitarian crisis because many of these ships are carrying wheat and other emergency food supplies for famine victims in East Africa, in Somalia, in Sudan, in Darfur and these supplies are now being threatened. John?
ROBERTS: Barbara Starr for us at the Pentagon this morning. Barbara, thanks so much for that. 20 minutes after eight.
Just to reiterate the breaking news we got in just a second ago, a new message from al Qaeda's number two man, Ayman al-Zawahiri. It's actually an audio recording of his voice that has been presented on militant Web sites over pictures of Zawahiri, Barack Obama, and Malcolm X.
In this audio tape, Zawahiri very critical of the incoming president-elect saying that he is the exact opposite of, quote, "honorable Americans like Malcolm X, calling him a House Negro. So, the first time that we're hearing from al Qaeda now after the election.
Certainly, again, as we've said, Barack Obama has pledged to be just as tough on al Qaeda and the war on terror as his predecessor was. In fact, they are saying that he will go to whatever lengths necessary to either capture or kill the number one al Qaeda member, Osama Bin Laden.
Again, 21 minutes now after the hour.
CHETRY: Life in the bubble.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I thought the crown jewel of the federal penal system.
(END VIDEO CLIP)
CHETRY: Alina Cho looks at what Obama's life will be like under the tight grip of the secret service.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Obama is a guy who likes his freedom, likes to do what he wants. The secret service team calls him renegade for a reason.
(END VIDEO CLIP)
CHETRY: You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Following breaking news this morning. We're hearing from al Qaeda for the first time since President-elect Barack Obama won the U.S. election. Al Qaeda's number two, Ayman al-Zawahiri, criticizing Barack Obama in a new message calling him according to the Associated Press and others, a very demeaning racial term, a House Negro -- saying that he is the direct opposite of honorable black Americans, Zawahiri mentioning people like Malcolm X in this.
Now, this audiotape plays over some pictures of Zawahiri as well as Malcolm X praying and Obama with some Jewish leaders. And again, this is the first public comments from al Qaeda after Obama's victory.
We're bringing in Barbara Starr right now, who is just actually back from Afghanistan, helping us put this in perspective. Al Qaeda's number two, what do you know about the -- about where he may be and also the operational capabilities right now of the group?
STARR: Well, Kiran, I have to tell you, when we were in Afghanistan and even as recently here as yesterday in the Pentagon, talking to top military and intelligence officials, Ayman al-Zawahiri is the man they want to get. Osama bin Laden, very important, of course. But the general feeling is that Osama bin Laden is indeed hiding. Ayman al-Zawahiri, on the other hand, perhaps having much more direct capability to exercise operational controls, to issue orders, to help with any potential coordination and planning of al Qaeda operations.
The feeling is while he is also in hiding, in Pakistan, he is not in the type of deep hiding and isolation that most U.S. officials believe Bin Laden is in. They had certainly expected some sort of communication from al Qaeda, even before the election. So this would not be a surprise.
Now, I have to also say, the fact that it's an audio recording certainly makes it a little safer for Zawahiri. He's not showing his face. He's not showing his current location. These types of audio materials certainly can be posted to the Internet, and then some production house could overlay the pictures and put it out over a Web site. So, he can do this without showing his precise location, where a video might provide inadvertent clues about exactly where he is.
So, none of this really a surprise. The offensive nature of his comments, certainly not a surprise to the U.S. government. But Zawahiri, by all accounts, I have to tell you, is probably the man they want to get right now. Getting him, possibly they say, this is what we heard, would make a difference in al Qaeda's day-to-day operations.
Would al Qaeda be able to reconstitute? Would there be someone who would move into his place? Certainly. That is one of al Qaeda's strengths, if you will. Over the last many years, as the U.S. launches attacks and kills off al Qaeda operatives, other people swoop into place. But Ayman al-Zawahiri is a very significant person. They refer to him as number two. I have to say, again, some of the officials we talked to in Afghanistan last week say he's the one they really want to get now. He's the one that would make a real day-to- day difference -- Kiran.
CHETRY: Just quickly, before I let you go, what does it mean that we're not hearing from bin Laden?
STARR: Well, I don't think anybody is really surprised about that. It's funny you ask, because, again, we've asked about bin Laden's whereabouts quite recently.
The general feeling is he is still alive, because they have no evidence to the contrary. And a top U.S. official told us, if he was dead, the feeling is that they would see movement, chatter. They would see al Qaeda operatives jockeying for place, to move into position, and they haven't seen that. As recently as our trip to Afghanistan last week, the feeling was, he was in Pakistan -- Kiran.
CHETRY: All right. Barbara Starr for us at the Pentagon this morning. Thanks.
ROBERTS: Actually, just getting in a transcript of that audiotape. And here's the -- here's the operative line. He's actually quoting Malcolm X. He says, in you and in Colin Powell, Rice -- Condoleezza Rice -- and your likes, the words of Malcolm X concerning House Negroes are confirmed. So, we'll keep looking at the transcript of this audiotape and bring you more on it as the morning progresses.
Meantime, the Big Three car companies asking for billions of taxpayer dollars on Capitol Hill. Ahead, we'll talk to Senator Russ Feingold who is backing the bailout. We'll ask him why he's behind it. It's coming up now on 28 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning.
There seems to be little support for an auto industry bailout in Congress. One man pushing for the plan is Senator Russ Feingold. He joins us now from Wisconsin.
Senator, it's great to see you. We'll talk about the auto bailout in just a second. But first of all, you're a member of the Senate Intelligence Committee. We just got word of this audiotape from Ayman al Zawahiri, al Qaeda's number two, in which he denigrates Barack Obama, calling him a house Negro and also saying that boosting troops in Afghanistan which is his plan won't work, because the Taliban will resist.
What's your impression of what you've heard so far?
SEN. RUSS FEINGOLD (D), WISCONSIN: Well I think they are pretty nervous, al Qaeda, because we have a whole new approach here in the United States, we have a new unity behind our president-elect. He sends a message to the world that represents the America that we really are, a country that is diverse and that wants to reach out to the rest of the world in a positive way and that goes completely against the hateful message that al Qaeda tried to present as they recruit people for what they want to do to this country and to this world.
So they are frustrated and they're worried and they should be, because we're coming his way and we're still going to bring him to justice which I look forward to.
ROBERTS: There appears also to be a divide here within the ranks of al Qaeda, just the other day we had (INAUDIBLE) who wrote a piece in "The Daily Beast" talking about an olive branch that Omar Baghdadi, al Qaeda's number one in Iraq, was holding out to Barack Obama and then a couple of days later, here we have this message from Ayman al Zawahari saying we're going to fight against you.
FEINGOLD: Well, they do have their problems. And their biggest problem is that we are presenting a different image now to the world. We have an opportunity for a clean slate, to get back to the unity that we had for a brief period after 9/11 and before the Iraq mistake. And I think we're going to be able to put far more pressure on them than we have when we've been way too focused on the Iraq situation. So this new approach makes it very difficult for al Qaeda to keep the unity its had and I'm looking forward to pursuing him.
ROBERTS: All right. Let's talk about the auto industry. The Big Three automakers are going to be before a house committee today. Yesterday they appeared there in the Senate. Why should taxpayers, senator, give one penny of their money to the auto industry?
FEINGOLD: Well, bailouts are no fun, and they should be avoided wherever possible. But I tell you, I'm from Jamesville, Wisconsin, and we've been making General Motors' cars since the early 1920s. And for those of us from there and are taking great pride in that, this is something worth fighting for. It's just as worth fighting for as Wall Street.
When you have $700 billion for a bailout that wasn't even well constructed for Wall Street and you just want to take $25 billion out of that to try to protect our car industry, our vehicle industry in the United States, that seems very reasonable to me. It's worth a try, and I'm kind of shocked that people are willing to let our car manufacturers go down the drain as they figure out any way they can to prop up Wall Street.
I tell you it's a real difference between the attitudes in Washington and New York. And the attitudes on Main Street and Wisconsin where people really do really care about these jobs and are willing to fight for them.
ROBERTS: One last question, do you think this will pass this week? Does it have any hope of passing.
FEINGOLD: It doesn't look good but I'm going to keep fighting. We're going to work with the companies for changes and the way they make these cars, to make them more fuel efficient, to have good management practices but it is unacceptable to think of an America where we do not make our own vehicles and I'm going to fight for that.
ROBERTS: Senator Russ Feingold from Wisconsin. It's good to catch up with you. We hope to see more of you in the future.
FEINGOLD: You will. I look forward to it.
ROBERTS: All right. Take care.
CHETRY: We are following breaking news this morning. It is a new tape, just released from al Qaeda. Using a demeaning racial term to describe President-elect Barack Obama. The terrorist group has been quiet since election day, but now a voice believed to be that of al Qaeda's number two man, Ayman al Zawahiri, is criticizing Barack Obama in this new recording calling the president-elect dishonorable and referring to him as, "a house Negro."
We are working all of our sources on this story right now, trying to find out more about this purported reporting. And joining us now on line is our Justice Department correspondent Kelli Arena.
Hey, Kelli, thanks for being with us. I know you're on the phone and you're trying to find out as much information as you can as well.
Now the intelligence community has been expecting some sort of message post-election from al Qaeda. What can we glean from the fact that it is an audio rather than videotape, if anything?
KELLI ARENA, CNN JUSTICE CORRESPONDENT: Well you're right. I mean, they were expecting an announcement sometime around the election, and you know the general consensus is that when audiotapes are put out rather than a videotape, just that they are practicing operational security.
You know, they have been under intense pressure along that Pakistan border by U.S. forces, and missiles that we have sent, the hellfire misses. So, this is just more proof that they're being very careful, you know, not going out of their way to put something on video opting instead to put something on audio.
Interesting that it's not a message from Osama bin Laden, which is what some people were expecting. But the intelligence community has said, for many months now, that they do believe that Ayman al Zawahiri is the operational head, leader, of al Qaeda, you know, more involved in the day-to-day activities, if you will. And here they are, trying to undermine the president-elect.
CHETRY: Now, you've -- you've followed this for a very long time. Do you find it unusual, this racial slur?
ARENA: Well, you know, I mean, I don't -- I don't remember, and I -- you know, I haven't gone through all the messages yet. I don't remember them actually ever attacking African-Americans. But, you know, when you look -- when you -- the video is supposed to be -- I'm sorry, the video that they're showing is supposed to be over Obama with Jewish leaders, you know, that the intent here, obviously, is to undermine him.
As you well know, the global reaction to his victory, you know, has been -- has been very positive. al Qaeda is now looking at, you know, the prospect of a U.S. leader who is well received overseas as opposed to, you know, the current president, George Bush, as you know, who has -- is facing a lot of trouble globally in terms of the global perception of him and the job that he's doing.
So, faced with that, you know, when they're trying to recruit new members, when they're trying to gain momentum, I mean, the most obvious thing to do is to go after and try to undermine the president-elect, not only globally but within the United States as well. And say, oh, look, you know, he's a -- you know, for lack of a better term, he's not black enough. You know, he compares him to Malcolm X, and says well basically he's here to do the white man's fitting, so don't let it fool you. You know, he's not change, he's more of the same. Just propaganda.
CHETRY: I got you. You bring up a good point just the fact that they probably are threatened by the goodwill that Barack Obama does have and the fact that he's mentioned right off the bat about wanting to get more troops in Afghanistan to fight al Qaeda.
All right. Kelli Arena, justice correspondent, thanks for joining us on the phone.
ARENA: You're welcome.
ROBERTS: 37 minutes now after the hour, and some breaking news on the economy that we're going to tell you about. Consumer prices dropping one percent during the month of October. That's the biggest monthly decline in 61 years. What's behind it? Our Christine Romans will tell you. Stay with us.
We'll be right back with the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: And just in, inflation numbers out right now as well as some information about housing starts. Christine Romans is here with more on how this news could affect the economy.
Hey there, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hey there.
Let's talk about inflation, because for the first time since records have been kept in 1947, you've seen the biggest decline ever in one month for inflation. Consumer inflation is what you pay for cars, for vegetables, for gasoline, retail inflation, the biggest one- month decline on record, down one percent in October. When you strip out volatile food and energy, it was also a decline, very rare to see a decline in what we call the CPI, that core inflation rate. We saw prices falling for fruits and vegetables, for gas, for apparel, even for airfare, although not the airfares that I just bought, hotel rooms and new and used cars.
So, a lot of different things are declining and where you're seeing prices rising, in things like groceries. Those prices are slowing a little bit. It's a sign of a weak economy, but it is good news for consumers, for people who are out there paying every week for their groceries or trying to buy clothes or things for the holiday season. Those prices are coming down, and it couldn't come a moment too soon for some pinched budgets.
Now, quickly housing starts for October, down 4.5 percent. That's the lowest level on record since record keeping began in 1959. So, housing starts, very, very slow at this point. Kiran.
CHETRY: All right, you know, we've seen this huge drop in gas prices for people that are filling up their tanks, it's like they're getting -- as you call it, your own mini stimulus if you will every week.
ROMANS: It is.
CHETRY: All right. Christine, thanks.
ROBERTS: We're following more breaking news here this morning, the reporter who broke the story of a possible deal between former President Clinton and Barack Obama. What her report says about Hillary Clinton's potential new role. It's 41 1/2 minutes after the hour.
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ROBERTS: Breaking news this morning on the transition to power. "The Wall Street Journal" is reporting this morning that former President Bill Clinton is hammering out a deal with President-elect Obama to open his books about future business and charitable activities. It's a big move that may give his wife, Hillary Clinton, a much better chance of becoming the next secretary of state.
Joining us now on the telephone is the reporter who broke the story. Monica Langley. She's the deputy Washington bureau chief for "The Wall Street Journal."
Monica, great to have you with us this morning. This is a pretty significant move on the part of the former president.
MONICA LANGLEY, DEPUTY WASHINGTON BUREAU CHIEF, "THE WALL STREET JOURNAL": It sure is, John. You know, former President Clinton had not even agreed to do this when his wife was running for president. So now he's come out with much bigger steps to step back from his huge foundation and all his business and philanthropic activities.
ROBERTS: I'm particularly intrigued by this part of the agreement that you cite here where you say that he would seek clearance from two separate offices, the White House counsel's office in an Obama administration as well as the State Department's office of ethics before he gives a speech and will also run all of his charitable contributions through both of those offices.
LANGLEY: That's correct. That is a really big deal for him as a former president, who loves to globetrot and be in the public eye, to give in on. I mean, it's a concession for his wife, and it's something that people are surprised that he's willing to go to these lengths. However, he -- I think he knows at this point that it has to be done if his wife will be in the Obama administration.
ROBERTS: Right. I mean, obviously, he wants to give her the most opportunity that he possibly can. But let's look at the flip side of that coin. Why would the Obama administration want to have Hillary Clinton as secretary of state, knowing that somewhere out there around the world there could be a potential conflict of interest with her husband?
LANGLEY: That's right. Well, they're reviewing his past potential conflicts of interest right now. And this emerging agreement does not undo anything that he's already done. I mean, he's already -- the money that he has garnered, you know, so far has already gone into programs. But going forward, they think, many in the Obama administration think, that if they at least can review it, then they can put red flags to stop him from doing anything that they would view as a conflict of interest.
And, remember, John, this is all Obama's initiative. Hillary Clinton nor Bill Clinton were lobbying for her to be secretary of state. They were already looking forward to how she would make a difference in the Senate. So, I think President-elect Obama felt comfortable that she would be a great asset on his team, or he never would have had the meeting with her last week.
ROBERTS: Yes, also all part of this idea of a team of rivals.
Monica, thanks so much for being with us this morning. It's a really interesting read in today's "Wall Street Journal." Appreciate your time.
CHETRY: Well probably breaking news this morning. After months of silence, Osama bin Laden's number two man blasts Barack Obama this morning. We're going to talk about what kind of influence Ayman al Zawahiri and al Qaeda has a whole still have. We're going to check in with Barbara Starr at the Pentagon when we come right back.
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CHETRY: Well, we're following breaking news this morning, and that is a new tape believed to be from al Qaeda's number two, Ayman al Zawahiri, while he criticizes President-elect Barack Obama and says, "a heavy legacy of failure and crimes awaits you." We're breaking it down this morning with all of our reporters. CNN's Barbara Starr is live at the Pentagon.
And, Barbara, explain for us right now why Zawahiri and his message is relevant and important at this time.
STARR: Well, Kiran, some of the words in this audio message extremely offensive to the president-elect. We will wait to see if the president-elect responds to this tape. The White House normally doesn't get into a tit for tat with al Qaeda, but why is Zawahiri important?
Officially, number two in al Qaeda to Osama bin Laden, but most top U.S. Military commanders and intelligence experts will tell you that Zawahiri still exercises some operational control, some operational influence over al Qaeda's operations, their planning, their coordination, their fund-raising, their activities, that he still is very much in the loop, while Osama bin Laden is long expected and long thought to be in deep hiding, simply trying to survive. The U.S. believes Zawahiri still functions, to some extent. Most commanders on the ground will tell you when you are there, as we were last week, Zawahiri is the man they want to get. Getting him would make a difference -- Kiran.
CHETRY: All right, Barbara, stay with us.
We're going to bring in Ed Henry as well who has been traveling with Barack Obama. He is in Chicago.
Ed, what do you know at this point about whether or not if any comment that Barack Obama and his camp are prepared to make?
HENRY: Kiran, I just spoke to a senior aide to the president- elect who actually just for the second time just told me now that they are not going to comment on this audiotape, at least in these early stages. I can tell you, though, that Barack Obama's national security aides, as part of the transition team, are obviously trying to get their hands on this. I'm told they're reviewing all the news reports that they're getting about this, to try to get a handle on exactly what was said. And -- but they don't want to comment, and I think there's some obviously political reasons for that.
They do not want to be drawn in to a tit for tat with a terror group and then go down the road of having to react every single time that al Qaeda says something. Secondly, politically, for Barack Obama, it's certainly not a bad position for him to be verbally attacked, at least, by al Qaeda. The alternative, you'll remember back during the presidential campaign, the McCain camp made great light of the fact that anytime a terror group would say, we're rooting for Barack Obama, the McCain camp would say, see, the terrorists are rooting for Obama to win the election.
If al Qaeda had come out this morning with an audiotape saying, we're so glad with the U.S. election results, all hail, Barack Obama. Obviously, politically, that would be an awful situation and Republicans would make a great deal of that. The fact that al Qaeda is now reacting to the U.S. election results by attacking Barack Obama and in such nasty, racial terms, using the term a house Negro, as you've been reporting. Obviously, that is going to be received so outrageously around the world that it may be a better political posture as you read the tea leaves here for the Obama transition to try and stay above the fray, Kiran.
CHETRY: Absolutely, our Ed Henry for us in Chicago this morning, thanks.
ROBERTS: So it's 52 minutes after the hour. I believe we have Peter Bergen, CNN's terrorism analyst on the line.
Peter, you've been all over the area where al Qaeda is hiding out. What do you make of this latest tape from Zawahiri? Just more bluster on the part of an organization that has been severely wounded?
PETER BERGEN, CNN TERRORISM ANALYST: Well, bluster and not unexpected. I mean we were all sort of waiting for a statement from bin Laden, before the election, essentially saying, I don't care if you elect McCain or Obama, you, the American people, need to -- and just as he did four years ago, when the Kerry-Bush election. That hasn't happened. Why it hasn't happened, they're not sure. Is the tape sort of in the pipeline? Is he keeping a very low profile?
And instead, we get a tape from Ayman al Zawahiri saying the things that he has just said. But we've had a lot of audiotapes and videotapes from Ayman al Zawahiri, not unexpected. Although the content is a little surprising because I thought he would take perhaps more of a -- more of the line that al Qaeda has in the past, which is to try and basically just express to the American people that it doesn't matter about the politics, it matters about America foreign policy in the Middle East, John.
ROBERTS: Yes, and what's also interesting, too, is that this is in direct contrast with a message that we heard from Omar Baghdadi in Iraq who is holding out an olive branch to the incoming president. What he does is he compares Barack Obama to Malcolm X here in his message. We've got the transcript here and he talks about Malcolm X being an honorable black American and Barack Obama being a dishonorable black American and he lumps him together with Colin Powell and Condoleezza Rice as well.
This is what he says, he says "in you and in Colin Powell, Rice and your likes the words of Malcolm X concerning house Negroes are confirmed." Now, Barack Obama's election, Peter, has been seen in many areas around the world, particularly in the Middle East, of being sort of a harbinger of a new day in America and a harbinger and a promise of new relations with the Muslim world. Why would Zawahiri take this tack?
BERGEN: Well, you know, it's puzzling. Certainly that he's not running for election in the United States. So, but, you know, he's talked about Malcolm X very often in the past. Of course, Malcolm was African-American, who was a Muslim, who went to Mecca. And I think it shows the influence of Adam Kadahn, the American al Qaeda member, who has played a prominent role and who seems to have introduced Ayman al Zawahiri and Osama bin Laden to the works of people like Malcolm X and Chomsky.
Because in the last two years we've heard al Qaeda's leaders refer to Chomsky and to Malcolm X and to other sort of radical Americans in their messages. So, I think it shows the influence of, you know, these guys obviously got a lot of time on their hands, they can't really do anything except read, and I think that's the reference to Malcolm X that we're hearing.
ROBERTS: All right. It seems to have introduced them to a new base level of propaganda as well. Peter Bergen for us this morning. Peter, thanks so much for that. 56 minutes after the hour, we'll be right back with the most news in the morning.
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CHETRY: Welcome back to AMERICAN MORNING. We're following breaking news right now. Word surfacing of an audiotape purported to be by al Qaeda number two, Ayman al Zawahiri, criticizing our President-elect Barack Obama in this new message actually referring to him as a "house Negro," saying that he's the direct opposite of honorable black Americans referring to Malcolm X.
And this is an audiotape that plays over some pictures of Zawahiri as well as Obama with Jewish leaders and the like. And these are the first public al Qaeda comments after Obama's win. Joining me now to talk more about the reaction, if any, that we may hear from Barack Obama's camp today is Ed Henry in Chicago.
What are you hearing about what they may say or what they're thinking about this new tape?
HENRY: Well, good morning again, Kiran. I just spoke to a senior aide to the president-elect, who said they are not going to comment on this. They basically don't want to be drawn into a tit for tat with a terror group. Basically a lot of what's on this tape, while explosive, while the comments clearly outrageous in terms of the inflammatory language, I think anyone just by reading it can tell that.
They are basically -- believe that this is not unexpected that Al Qaeda would jump in. They've repeatedly, you know, put out audiotapes in the latter part of the Bush years, trying to hammer away at the president, try to talk about the war in Iraq.
So, it's not really unexpected that they would at some point during this transition jump in. In fact, repeatedly people close to Barack Obama and people close to President Bush have been telling me and other reporters that they are very much expecting that al Qaeda and other terror groups will try to take advantage of this transition of power to try and launch attacks in the United States. We've seen it happen before in Spain. We've seen it happen in Scotland in recent years where during transfers of power, this could be a vulnerable time for the United States.
And that's why I think on the positive side, you have seen both President Bush and Barack Obama talk about working together to prevent that, Kiran.
CHETRY: All right. Ed Henry for us working his sources this morning. We're sure to find out more about this and maybe we'll get a comment, perhaps even a comment from the current White House about this.
ROBERTS: Yes, we'll see. They tend to typically dismiss these things and the fact that it's an audiotape with pictures over it as opposed to an actual videotape suggests that perhaps they're still laying very low there. So not unexpected but interesting nonetheless. Thanks so much for joining us on this AMERICAN MORNING. We'll see you back here again tomorrow.
CHETRY: And please keep watching CNN NEWSROOM with Heidi Collins, is up next.
