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American Morning
Obama to Reveal National Security Team; Obama Set to Name Hillary Clinton as Secretary of State; Mumbai Terror Probe Investigation: Rice Going to India; Shoppers Go Online for Deals; Update on Wal-Mart Stampede; Finding a Role for Joe Biden
Aired December 01, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
KIRAN CHETRY, CNN ANCHOR (voice-over): Breaking news, Barack Obama unveiling a high-powered national security team today.
UNIDENTIFIED MALE: This is not about playing small ball.
CHETRY: The long-time advisers, political rivals.
SEN. HILLARY CLINTON (D), NEW YORK: Hello, Virginia.
CHETRY: And military minds put together to end one war and find one man.
Plus, talking terrorists. The only gunman taken alive opens up about a cold and calculated killing spree. New details about the terror group to which he's tied on this AMERICAN MORNING.
(END VIDEO CLIP)
CHETRY: Welcome, it's Monday, December 1st. I'm Kiran Chetry along with Joe Johns. Great to be back with you again. Hope you had a great weekend.
JOE JOHNS, CNN CO-ANCHOR: Yes, once again. Absolutely. And John Roberts will be back pretty soon. Until then, I'm here.
CHETRY: And you did -- you did a phenomenal job last week. We had a lot of breaking news and, of course, it continues this week.
JOHNS: Very, very disturbing story. That story in Mumbai, and we'll get right to that in just a minute.
CHETRY: First though, we are going to talk a little bit about President-elect Barack Obama.
JOHNS: That's right.
CHETRY: He's revealing his choices today.
JOHNS: Absolutely. A little more than four hours, President- elect Barack Obama will reveal his choices for a national security team. The roster is expected to including his one-time campaign rival, Senator Hillary Clinton, as secretary of state, as well as loyal friends and even one Republican holdover. In a minute, we'll break down Obama's team as well as the unprecedented agreement former President Clinton worked out that paved the way to his wife's nomination.
And Governor Sarah Palin back on the campaign trail today. The former Republican vice presidential candidate will be stumping in Georgia with Senator Saxby Chambliss who's fighting to keep his senate seat. Chambliss faces Democrat Jim Martin in a run-off election tomorrow.
Holiday shoppers should have a little more to spend on gifts. The price for a gallon of regular gas down for the 75th straight day, now averaging $1.82 a gallon, according to AAA. That's more than 55 percent less than what it costs you to fill up over the summer.
CHETRY: Well in just a few hours, President-elect Barack Obama will be trying to inject a sense of strength and confidence on the world stage when he rolls out his national security team.
Senator Hillary Clinton will be named the nation's next secretary of state. And other likely key appointments include President Bush's defense secretary, Robert Gates. He's going to be remaining at the Pentagon. Arizona Governor Janet Napolitano will head Homeland Security, and Obama's foreign policy adviser, Susan Rice, slated as U.N. ambassador. Four-star General James Jones will be named Obama's national security adviser, and also former deputy attorney general, Eric Holder, will be tapped as attorney general.
CNN's Suzanne Malveaux is live in Chicago. And one question the people are asking about Hillary Clinton, Suzanne, is why is she accepting the secretary of state job?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Kiran, I talked to a lot of people who are close to Hillary Clinton, and they tell me that she's excited about this opportunity. That she is doing this really out of a duty in history that she felt personally ambivalent about what this meant for her career. But she believes that the times are historic, things are very fragile in the world and she really does feel like she can make a difference.
I'm also told that she was concerned, however, about her female supporters who had hoped that she would remain an independent political force, but there were many people who encouraged her to say yes to this job. And those close to Clinton also tell me that Clinton-Obama, they spoke by phone right before thanksgiving about the offer, and from the very beginning they say that he did a really impressive sales job appealing to Clinton's desire to do something for the country.
CHETRY: You know, there was also a lot of deal making about -- behind the scenes about what do you know when it came to Bill Clinton and what he and Hillary really have to give up for her to get this post?
MALVEAUX: Well, you know, it's really an extraordinary deal because former President Bill Clinton has to do a number of things, some conditions.
First, disclose the names of every contributor in his foundation. That is more than 200,000. He has to submit his speeches, business activities to the State Department, ethics officials, perhaps even White House counsel's office. He's not going to accept contributions from foreign governments as far as global aids initiative, all this really to prevent a conflict of interest with his wife's new job.
And also as an aside, Hillary Clinton in her negotiations, she has the right to maintain control of some of her staff instead of the Obama transition team. And she's also been told by the Obama team on an aside that they're going to help her with her fund raising the next 60 days to help clear some of that campaign debt. It's about $6.5 million -- Kiran.
CHETRY: Wow. That's no small chunk of change there. I know that was a big point of contention with some of her supporters as well.
Suzanne Malveaux in Chicago for us. Thanks so much.
Also make sure to catch the president-elect's news conference. It's this morning, 10:40 Eastern time. You can see it live right here on CNN as well as on CNN.com.
JOHNS: To India now and the search for answers in the Mumbai terror attacks that left nearly 180 people dead. The White House says Secretary of State Condoleezza Rice will travel to India this week to personally convey U.S. solidarity with the Indian government. She's expected to arrive in New Delhi Wednesday.
Six Americans were killed in the 60-hour wave of terror, and at least 11 gunmen were killed in battles with Indian security forces. Indian investigators say the lone surviving attacker is a member of a Pakistani militant group and that's ratcheted up tensions between the nuclear neighbors.
CNN senior international correspondent Nic Robertson is on the ground in Mumbai.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN CHIEF INTERNATIONAL CORRESPONDENT (voice- over): Could this gunman hold the balance of regional peace in his hands? He is the only attacker to be captured alive. Indian police say he is Pakistani. And what he tells investigators could shape the rising tensions between these two nuclear neighbors.
(on camera): Government officials here were quick to blame Pakistan. Pakistan's ministers deny their country's involvement, have offered to help with the investigation, but are now considering bolstering their troops along the border. The two countries have fought three wars in the past 60 years. Getting this investigation right could not be more critical.
(voice-over): It is indeed a tough time for the city. But India's maze of new, independent media outlets have a steady stream of leaks from investigators. They vary widely. Few can agree on the captured gunman's name.
Our sister network CNN-IBN has sources inside India's intelligence community. They're being told the gunman was trained and helped by Lashkar-e-Taiba (ph), a Pakistan-based al-Qaeda terror group. CNN-IBN has also been told the captured gunman says he and his fellow attackers were told to memorize Google earth maps of Mumbai's streets so they could find their targets.
(on camera): As a measure of how seriously the attack in rising tensions are being taken in western capitals, the FBI is sending a team to help. British investigators also expected and Interpol, the international policing group, are also in negotiations with Indian authorities to send in their teams.
(voice-over): While the country mourns its fallen heroes, an undercurrent of anti-Pakistan sentiment is growing. Managing that while conducting a thorough and open investigation may be this country's biggest challenge in the coming weeks.
(END VIDEOTAPE)
CHETRY: And again, that was CNN's Nic Robertson reporting.
Well, right now, Detroit's big three have less than 24 hours to make their case for a $25 billion lifeline. The CEOs of General Motors, Ford and Chrysler worked through the thanksgiving weekend, drafting plans that they're going to be presenting to Congress tomorrow. They failed to convince Congress they needed the money two weeks ago, and they're due back on Capitol Hill for more hearings later this week.
Also this morning, NASA plans to return the space shuttle "Endeavour" to Florida. After a 16-day mission, the shuttle and its seven-member crew touched down at Edwards Air Force Base in California yesterday. It was diverted from landing at Kennedy Space Center because of bad weather. The crew completed a huge renovation project to expand the space station's living quarters.
And there's a national study of high school students, finding that cheating and stealing are rampant among America's teens.
According to a survey by a California-based ethics group, 64 percent of high school students say they've cheated on a test in the past year and 30 percent say they've stolen something from a store. Perhaps even more disturbing, 93 percent of the students that were surveyed said that they were satisfied with their personal ethics and character. Of course, we all like to think it's not our kids, of course not.
JOHNS: No, cheating, stealing, no way.
CHETRY: No way. And certainly wasn't enough either.
JOHNS: And never. Today is cyber Monday where Americans gear up to get some holiday shopping done online. Coming up, how all that bargain hunting on your desktop could zap productivity at the workplace ahead.
And a Black Friday tragedy at a New York Wal-Mart store. A worker trampled to death by shoppers. Could any of them be facing criminal charges?
It is eight minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Well, this morning, the countdown to Christmas is on and thanks to the tight economy, the price of 12 drummers drumming, 11 pipers piping will cost you a bit more. According to the PNC Wealth Management, they measure the cost to celebrate the 12 days of Christmas if you were to buy everything, of course. The price tag to actually buy all of the gifts in the well-known holiday carol, $86,609. That's up more than $8,000 or 10 percent from last year.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: The five gold rings.
CHETRY: Really?
JOHNS: You got it.
ROMANS: You're right. I bet it's the five gold rings.
CHETRY: Christine Romans is here "Minding Your Business." And we're talking about holiday shopping.
ROMANS: We are.
CHETRY: A lot of retailers were holding their breath to see if things will work out end of this year.
ROMANS: They were. Today is a thing they call cyber Monday, which is really kind of -- I'm going to sound a little bit, you know, like a pessimist -- but today is a day that's kind of created by the industry to make you want to spend more money again. Cyber Monday, go online shopping after the long weekend after Thanksgiving to spend even more money so that they could have a good holiday and year-end shopping season.
Cyber Monday it's called. You know, a few years ago, you used to come into the office to do all of that shopping and get those sales because you probably didn't have broadband access at home, right? Well, now we all have computers in every room of the house in some cases. And so, you know, I don't know if there's such impact from cyber Monday, but a survey by careerbuilder.com found that 29 percent of people surveyed planned to do some shopping, online shopping at work over the holiday season altogether.
Forty-three percent of people will spend an hour or more. Twenty-three percent will spend two hours or more. Thirteen percent will spend three hours. What kind of boss do you have? Because I don't think I have the time to spend three hours shopping online. But that's kind of an indication how many people -- productivity drain, perhaps -- how many people over the holidays will be shopping online.
A couple of things to tell you that retail analysts have been telling me you shouldn't pay for any shipping. And this is going to make some of the retailers mad that I say this. But don't pay for shipping for online shopping because they're all pretty desperate. They want your business.
If you keep waiting and you're picky, you're going to be able to find some good deals, I think. So don't pay for any shipping in your online shopping. And just quickly about the weekend, there was a pretty good shopping over the weekend, better than a lot of people had expected. Everyone is talking about how weak the economy is, falling home prices. But look, people spent $41 billion over the weekend, a $373 on average per shopper. That's up about seven percent from last year. Those 55 percent of people were shopping at discount stores.
They get 70 -- I don't know if you guys were shopping. I certainly didn't. I avoid this weekend like the plague.
CHETRY: Me too.
ROMANS: But 70 percent door buster, you know, price cuts, 70 percent toys that they were selling for a loss in some cases just to get you in. So that's what that was all about.
JOHNS: How much money could they possibly have made if they cut prices so low though?
ROMANS: Right. That's absolutely right. They cut prices a lot. And you know, $41 billion is what we spent but real deep discounts for a lot of things. And there are a lot of people that tell me there will be even more discounts heading into -- Christmas is on a Thursday, so that weekend and then the three days before Christmas, a lot of retail analysts are telling me, boy, it will be really deep discounts then.
JOHNS: Great. Thanks, Christine.
ROMANS: Keep waiting. Don't pay for shipping.
CHETRY: I mean, you keep getting these online offers. Last day only or just today.
ROMANS: Yes.
CHETRY: And then the next day, you think, did I say one?
ROMANS: And maybe tomorrow, too.
CHETRY: Right. Thanks, Christine.
JOHNS: Thanks a lot, Christine. In just a few hours, Senator Hillary Clinton will be one step closer to adding secretary of state to her resume. And the nomination taking a new sense of urgency after the massacre in Mumbai.
It's 14 minutes past the hour.
CHETRY: Black Friday.
(BEGIN VIDEO CLIP)
LT. MICHAEL FLEMING, NASSAU COUNTY POLICE: We are examining videotape footage that was shot by Wal-Mart and by some of the surrounding stores.
(END VIDEO CLIP)
CHETRY: The latest on the hunt to identify members of a mob that trampled a store worker to death. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
JOHNS: Washington, D.C., 1600 Pennsylvania Avenue where George W. Bush lives right now. Barack Obama will be there pretty soon.
Let's fast forward to the stories that will be making news later today. At 3:00 this afternoon, Treasury Secretary Henry Paulson will deliver an update about issue number one, the economy. He'll also be speaking about the state of the stock market at a Fortune 500 forum.
Sarah Palin back on the campaign trail. She'll be stumping across Georgia today for Republican Senator Saxby Chambliss, who is locked in a hotly contested run-off against Democrat Jim Martin. The two candidates face off tomorrow.
And we're expecting an update from New York police on that deadly stampede at a Wal-Mart store on Long Island. Investigators are poring over videotape and talking to witnesses. Susan Candiotti looks at where the investigation could go from here.
SUSAN CANDIOTTI, CNN CORRESPONDENT: Kiran and Joe, good morning. How could it happen? A discount store worker trampled to death by shoppers intent on getting a big bargain the day after thanksgiving. Will anyone be held responsible. Today, we could learn more.
(BEGIN VIDEOTAPE)
LT. MICHAEL FLEMING, NASSAU COUNTY POLICE: This was utter chaos.
CANDIOTTI (voice-over): These newspapers photos send chills, capturing a 5:00 a.m. stampede as Wal-Mart shoppers smashed to the front doors and trampled to death a 34-year-old temporary security worker. Investigators are deciding whether anyone should or can be charged.
FLEMING: We are examining videotape footage that was shot by Wal-Mart and by some of the surrounding stores.
CANDIOTTI: Authorities also want to know whether Wal-Mart had enough security.
FLEMING: It was several minutes before they were able to get the crowd pushed back enough to be able to render some aid.
CANDIOTTI: CNN legal analyst and former prosecutor Sunny Hostin says it's not intentional homicide, but shoppers could be criminally negligent.
SUNNY HOSTIN, CNN LEGAL ANALYST: Isn't that what we're talking about here? Wanting to get such a bargain and such a deal on Black Friday that you would run over another human being? His life didn't matter to whoever did this.
CANDIOTTI: Even if shoppers can be identified, Hostin says with 2,000 people pushing to get inside the store, the case could be tough to prosecute.
HOSTIN: It's going to be difficult to prove to a jury that this person, in their heads, failed to perceive the risk and is now legally responsible for it.
CANDIOTTI: That same afternoon, the store reopened. In a statement, Wal-Mart defended itself saying it worked with police, put up barricades and added more security. "Despite all of our precautions, this unfortunate event occurred."
New York's largest grocery union calls the death avoidable and Wal-Mart irresponsible. Lawyer Sunny Hostin says a civil lawsuit against Wal-Mart is all but inevitable, but she thinks Wal-Mart may have done all it could to prepare.
(END VIDEOTAPE)
CANDIOTTI: Today, police expect to have more to say about the case. They're interviewing witnesses and trying to see whether they can identify any shoppers on the tape. That could be tough, then prosecutors will make the final call -- Kiran and Joe.
JOHNS: Barack Obama set to nominate Hillary Clinton as his secretary of state. We ask a Clinton insider about the strategic and diplomat union and what Bill Clinton is doing to help make it work.
And Joe Biden's role with Senator Clinton poised to become the point person on foreign policy. What will come of the vice president- elect?
It's 21 minutes after the hour.
(COMMERCIAL BREAK)
JOHNS: It's 23 minutes past the hour. Here's a check of the top stories. Secretary of State Condoleezza Rice will be traveling to India on Wednesday. It's the latest sign the U.S. plans to be closely involved with the investigation into the deadly terrorist attacks in Mumbai that killed nearly 180 people including six Americans. And while speaking in London this morning, Secretary Rice pressed Pakistan to comply fully with parts of the agreement that are being put forward to them.
Now, here we go. Kiran, over to you.
CHETRY: All right. Thanks a lot, Joe.
Well, in just a little more than four hours, President-elect Barack Obama is going to be naming his national security team. Of course, the stars of that team, Hillary Clinton as secretary of state. And the once bitter rivals will form a powerful partnership but how exactly will that work?
Joining us this morning from Washington is Democratic analyst and Clinton inside Hilary Rosen, also a CNN contributor.
Hilary, great to see you this morning. Thanks for being with us.
HILARY ROSEN, POLITICAL DIR., "HUFFINGTON POST": I have no audio.
CHETRY: Can you hear me, Hilary?
It looks like we're still unable to hear from Hilary. Let's actually right now head back to Joe.
JOHNS: In just a few hours, President-elect Barack Obama will introduce his national security team and leading the lineup, Senator Hillary Rodham Clinton, a position that will turn Obama's fiercest campaign rival into one of his senior and most trusted advisers.
CNN State Department correspondent Zain Verjee is live in Washington.
Zain, give me some sense of what types of challenges you expect senator soon-to-be secretary of state Clinton will face?
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, Joe, Hillary Clinton and the U.S. face so much challenges. It's really mind boggling. You've got Iraq, Iran, North Korea, Pakistan, India, the rise of China, Russia, Afghanistan, it just goes on and on. So she's going to need to really limit her priorities to a few key initiatives, really focus on whether State Department has a unique role.
You know, the former national security adviser, Sandy Berger, used to say, Joe, and you'll know this because you've spent a lot of time here, that the urgent always overtakes the important. But you know, the crisis with India or Pakistan or North Korea, it really takes up the focus, the headline. Secretary Rice, you know, on her way to India right now, but how Hillary Clinton and Barack Obama stay discipline, how they keep their eye on the important will determine their legacy and it will be critical for this country, Joe.
JOHNS: As you know, Zain, Condoleezza Rice was always seen as very close with George W. Bush. On the other hand, we don't see that close relationship, at least not so far between Hillary Clinton and Barack Obama. This could create sort of an interesting situation going forward for them, wouldn't it?
VERJEE: Yes. I mean, she can't be successful if world leaders just don't see her as speaking for the president, having the ear of the president. Just ask Colin Powell. But more than that, Joe, Hillary Clinton, Obama, the entire national security and foreign policy team really needs to focus on building a real partnership, a mutual trust. Hillary Clinton, Jim Jones, Robert Gates, all of them are going to have to really define their roles and exactly how they're going to work together.
When James Baker and Brent Scowcroft came in, Joe, they formed one of the best secretary of state/national security adviser partnerships ever. And that started with clear orders from the president, define roles, understanding that the secretary of state spoke for the president in the world and the national security adviser was the honest broker. And Obama is really the critical factor here because he and the entire team is going to have to work really hard on building that kind of mutual trust during this transition period as well.
JOHNS: Zain Verjee in Washington, good to see you as always.
CHETRY: Well, with such a high profile naming for the secretary of state position, a lot of people are wondering what will become of Joe Biden? Of course, the vice president brought in for his foreign policy expertise. Jim Acosta has been looking into that. He has the story.
(BEGIN VIDEOTAPE)
JIM ACOSTA, CNN CORRESPONDENT (voice-over): On election night, Barack Obama and Joe Biden stood together in triumph, but ever since then, it's gotten more crowded around Mr. Obama. Many in Washington have noted this foreign policy guru now has to share the stage, whether it's with the president-elect's highly touted economic team or with expected cabinet heavy hitters like Hillary Clinton at stake, Robert Gates at the Pentagon, or Tom Daschle at Health and Human Services, to name a few.
KEN VOGEL, SENIOR REPORTER, POLITICO.COM: You have to wonder, what will Joe Biden do? What will his role be?
STEPHEN HESS, BROOKINGS INSTITUTION: I think Joe Biden is an ideal candidate.
ACOSTA: Former White House adviser Stephen Hess, who has written a workbook for the president-elect, insists Biden has a critical role to play, one of repairing the office of the vice president.
HESS: This is a position that has to -- that has to be reestablished after what we've seen for eight years when Dick Cheney was the vice president and assumed great powers or we think he assumed great powers. And now, it has to be re-adjusted back to what it really is.
ACOSTA: Something Biden had on his mind during the vice presidential debate.
JOE BIDEN (D), VICE PRESIDENT-ELECT: Vice President Cheney has been the most dangerous vice president we've had probably in American history.
ACOSTA: On the other hand as Cheney made clear as vice president, the job can be what you make of it.
VOGEL: Dick Cheney coming into the Bush administration in 2000 didn't have a very well-defined role either, and he ended up being one of the most powerful vice presidents in the United States history.
BIDEN: And I think it's fair to say --
ACOSTA: Also not to be discounted, Biden's three decades in Washington. He made plenty of friends across the aisle.
BIDEN: Go ask guys like Bob Bennett, a very conservative United States senator. Ask, you know -- you know, I mean, hell, I was asked to do Strom Thurmond's eulogy. It wasn't an accident.
ACOSTA: The transition team maintains Biden and president-elect will do more than just share cupcakes.
(END VIDEOTAPE)
ACOSTA: A source close to the transition says Biden has been on every key meeting since the election, and has weekly no staff lunches with Mr. Obama. A sign that Biden so far is serving in the role he wanted, adviser in chief -- Kiran and Joe.
CHETRY: Jim Acosta for us this morning from Washington. Thanks so much.
Also back with us from Washington. Sorry, we had a little trouble hearing you before. Hilary Rosen, Democratic analyst, Clinton insider, also a CNN contributor. Thanks for being with us this morning, Hilary.
ROSEN: Hey, Kiran.
CHETRY: So, you know, President-elect Obama attacked Senator Clinton in the primaries especially on foreign policy. They disagree about the war in Iraq, her vote for the war. So how does he explain making her his chief diplomat?
ROSEN: Well, that vote dispute between them is almost, you know, two years old now, and a lot has happened since then. And Hillary Clinton has been one of the most vocal critics of the operation of the Iraq war since then. And I think you saw on the campaign trail, they really did have a meeting of the minds over the need to get out of Iraq and get out as quickly as possible.
CHETRY: You know, the other interesting thing is that the extraordinary lengths, I guess you could say, that the Clintons are going through. I mean, Bill Clinton as former president and now heading up this huge global initiative with many foreign donors has really opened up his books, has agreed to in the future clear things with the Obama team.
Hillary Clinton also giving up a Senate seat and really seen as a rising star within the Senate. What -- and you know them, and you're an insider into a little bit about why they do what they do. Why does it behoove her to be secretary of state? I guess what's in it for her?
ROSEN: You know, I just think she has an extraordinary call to public service. This is a person who has devoted her life really to, in so many areas, whether it's children's issues, women's issues in the U.S. or around the world, to making life better for Americans.
And I think that when President-elect Obama talked to her and persuaded her to get on board with his team in an operational way, I think it has attribute to both he and to her to say that, you know, this is something we can do together. And I think he really believes in the need to change the U.S. position around the world and to make progress that we've really slipped in the last eight years.
And I was listening to Zain's report before about the need for a team, a national security team. And I think one thing that people saw with Hillary Clinton in the Senate is she is a team player. When she's looking at foreign policy issues with President Obama, with Vice President Biden, with Admiral Jones, with Secretary Gates, this is going to be somebody who really knows what she's good at and knows how to work well with others, and I think you're going to see real leadership and I think progress around the world.
CHETRY: You know, few would argue though that she is quite a savvy politician, so when this four-year gig is up as secretary of state, what is her long-term political future?
ROSEN: Well, you know, hopefully President Obama will serve for eight years. So, I don't think you're going to see anything from the Democrats in the next four years.
CHETRY: Right, but typically the secretary of state, right? I mean, there's a typical transition, usually for --
(CROSSTALK)
ROSEN: It is unusual for cabinet officers to serve the full eight terms. But you know, this is somebody with lots of ideas and lots of interests, and I think it is meaningful for her to give up her Senate seat. She loves being the senator from New York. But I think that, you know, the future is wide open for her.
CHETRY: And what about supporters who voted for her during the primaries? How do they feel about her serving in this post? I mean, you get a lot of input at "Huffington Post" as well. How do they feel about whether this role fits her?
ROSEN: You know, I think that people are excited about the possibility of having someone with the kind of stature that she has representing the United States around the world. We haven't had that in a secretary of state in modern history. Somebody who is as recognizable and knows as many foreign leaders and has as much experience on the world stage as she does. So that's extraordinarily exciting for all of her supporters.
There are some who still lament the fact that her independence and her independent political views and stances will be subsumed by the Obama administration for the next several years. But I think that's kind of outweighed by the excitement that she obviously feels for this.
CHETRY: Also, I want to ask you about the announcement of Secretary Gates staying on as defense chief. After Obama ran an opposition to the war, how is this sitting with Democrats, reacting to this decision that they are going to be keeping Defense Chief Gates on?
ROSEN: You know, I just personally think that this is the one appointment really that President-elect Obama is making where the jury is still out. I don't think that somebody who has been as aggressive and effective as he has been under President Bush's, the idea that he can sort of switch teams now and do this effectively and meet out these challenges. I have some skepticism. And I think a lot of progressive Democrats do.
On the other hand, I think that President-elect Obama has spent a lot of time with him, understands what the objectives are and that Secretary Gates is committed to achieving the goals of an Obama administration. So, I'll give him the benefit of the doubt.
CHETRY: All right. And I think a lot of others are doing that as well, a wait and see mode for that one, for sure.
Hillary Rosen, great to see you this morning. Thanks for being with us.
ROSEN: Take care.
JOHNS: Russia is sending Washington a not so subtle warning. Trespass in our backyard and we'll trespass in yours. Tensions between both countries heating up today over missile defense.
The economic crisis hitting home for many families this holiday season. So how do parents tell their young children that Santa cannot deliver on the things on their list? It's 35 minutes past the hour.
(COMMERCIAL BREAK) JOHNS: We're following breaking news from Moscow. A top general says Russia is developing new ballistic missiles in response to U.S. plans to deploy a missile defense shield in Europe. The general says the modernized missiles will be able to avoid being hit from space. Russia has been angry with the Bush administration's plans to build a missile defense shield in Eastern Europe saying it compromises their national security.
Russia is also flexing its military muscle closer to home. Moscow begins three days of joint naval exercises with Venezuela today in the Caribbean. Moscow has been cutting deals with our neighbors to the south and cozying up to former cold war allies like Cuba. CNN's Shasta Darlington has our report from Havana.
(BEGIN VIDEOTAPE)
SHASTA DARLINGTON, CNN INTERNATIONAL CORRESPONDENT (voice-over): Bear hugs and military might united Moscow and Havana during the Cold War. But times have changed. Church bells ring for Russian President Dmitry Medvedev when he visits his Cuban counterpart Raul Castro. Together they light candles in Havana's newly built Russian Orthodox Church. They spent hours in private conversations and official acts, offering just a few friendly words for the press.
"Greetings, friends, from Russia and Cuba," Castro said. Cuba was Medvedev's final stop on a Latin America tour. He wants to boost trade and influence in a region traditionally closer to the United States. Analysts say the timing is no accident.
HAL KLEPAK, ROYAL MILITARY COLLEGE OF CANADA: The Russians are very keen on showing the Americans that they can be naughty in Russia's backyard, the Russia has not lost all of its capability to do the same in the United States' backyard.
DARLINGTON: Russia is angry over Washington's missile defense plans in Europe and its support for Georgia. In Venezuela, Medvedev meet President Hugo Chavez aboard a Russian warship, preparing for joint naval exercises in the Caribbean.
UNIDENTIFIED MALE (through translator): We're going to Cuba.
DARLINGTON: The leaders also sign oil and arms deals, and Russia said it would help Venezuela start a nuclear energy program. The U.S. Secretary of State, shrugged off the visit.
CONDOLEEZZA RICE, U.S. SECRETARY OF STATE: I don't think there's any confusion about the balance of power in the western hemisphere.
DARLINGTON: In Cuba, talks focused on the economy. No details were released, but Russia has expressed interest in Cuba's offshore oil drilling and rebuilding on historic ties.
(on camera): The Soviet Union left its mark on Cuba. Many Cubans still speak Russian and Old Russian cars like these taxis are everywhere, which shouldn't come as a surprise to the former Cold War allies, seek trade and business will drive their relationship in the future.
Shasta Darlington, CNN, Havana.
(END VIDEOTAPE)
CHETRY: Well, it's been a nasty commute for many holiday travelers after parts of the nation got hammered by snow and rain. So, will things clear up for today? Your forecast is just ahead. It's 41 minutes after the hour.
JOHNS: Is there anybody out there?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We're listening for something that we don't think can be produced by Mother Nature.
(END VIDEO CLIP)
JOHNS: She's sort of a phone operator for callers from another world. CNN goes in search of aliens. You're watching the "Most News in the Morning."
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CHETRY: Welcome back to the "Most News in the Morning." You know, it's been a travel nightmare for people in parts of the northeast and the Midwest, trying to get home after the long Thanksgiving weekend. Chicago's first snowstorm of the season canceling more than 50 flights at O'Hare Airport. That storm is expected to dump as much as 8 inches of snow in northern Illinois before it's done today.
So snow also expected today in Ohio. We get a live picture right now from Cincinnati. This is courtesy of our affiliate WLWT. It's 36 degrees right now. But it feels like 26 when you take a look out there right now at that shot. Our own Reynolds Wolf is in for Rob Marciano today in the weather center in Atlanta.
I saw a few stray flakes a little bit north of New York City yesterday.
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CHETRY: Dear Santa.
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UNIDENTIFIED MALE: What should Santa bring you this year for Christmas?
UNIDENTIFIED GIRL: Everything that's at Target.
UNIDENTIFIED MALE: Everything that's at Target.
(END VIDEO CLIP) CHETRY: Preparing kids for a Christmas where Santa can't afford everything on their list. You're watching the "Most News in the Morning."
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UNIDENTIFIED BOY: No, no, I want an official Red Ryder carbine- action 200-shot range model air rifle.
SANTA CLAUSE: You'll shoot you eye out, kid. Merry Christmas. Ho! Ho! Ho!
UNIDENTIFIED BOY: No!
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JOHNS: Oh, no. Welcome back to the "Most News in the Morning." Many parents are hoping their Christmas story will have a happy ending this year despite the tough time that have them trimming holiday lists. CNN's Ted Rowlands looks at how some parents are breaking the news to the kids.
TED ROWLANDS, CNN GENERAL ASSIGNMENT CORRESPONDENT: Joe and Kiran, Santa here has been getting hit up like any other year with requests from kids, but the reality is because of the economy, for a number of children this year will be a very different Christmas.
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SANTA CLAUS: So, what should Santa bring you on Christmas Eve?
UNIDENTIFIED GIRL: A cupcake maker.
SANTA CLAUS: A cupcake maker.
ROWLANDS (voice-over): In malls across the country, kids are making their annual climb onto Santa's lap asking for Christmas presents.
SANTA CLAUS: What do you want Santa bring you for Christmas?
UNIDENTIFIED GIRL: A bicycle.
SANTA CLAUS: A bicycle.
ROWLANDS: But what do you do if your child really wants something you just can't afford?
SANTA CLAUS: What would you like for Christmas, young lady?
UNIDENTIFIED GIRL: A horse.
SANTA CLAUS: A horse. ROWLANDS: A horse, unfortunately, is probably not in the cards for Amanda Brenner. Her mother says the family business is a little off this year. So like many families, they plan to cut back on gifts. She says they've told the kids not to expect a lot.
CODIE BRENNER, MOTHER: We want our kids to understand that -- to be content if we have and if we have not. They know that they're loved, whether we have money or not.
SANTA CLAUS: What should Santa bring you this year for Christmas?
UNIDENTIFIED GIRL: Everything that's at Target.
SANTA CLAUS: Everything that's at Target.
ROWLANDS: Many parents are talking to their kids now to avoid any disappointment on Christmas morning, like Ralphie felt here in "A Christmas Story."
UNIDENTIFIED FEMALE: We've talked to the kids a little bit about what to expect. Hopefully, Santa brings everything but everyone kind of knows that it might be a little lighter year this year.
ROWLANDS: Experts like MomCentral.com founder Stacy Debroff says with older kids, especially, be honest. It's the younger ones you may have to get a little creative with.
STACY DEBROFF, MOMCENTRAL.COM: The last thing anybody wants is to see a look of disappointment as kids open their presents and they say, oh, that's all you got me?
ROWLANDS (on camera): But they think Santa can do anything. How do you handle that?
DEBROFF: Well, I think that this year, Santa is going to be on a bit of a budget.
ROWLANDS (voice-over): Debroff says kids get it. And if you bring them into the discussion, they'll help come up with something you can afford that will also, hopefully, make them as happy as the YouTube kid on Christmas morning.
UNIDENTIFIED CHILD: Yes! Yes!
ROWLANDS: Ted Rowland, CNN, Los Angeles.
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CHETRY: The closer. Governor Palin sent down to Georgia to save the GOP. Whether the party could call again in 2012.
Plus, full disclosure. Bill Clinton naming names and opening the books so his wife can be madam secretary.
(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: I think there will be some inappropriate inquiries as to whether or not her husband's business activity would create a conflict of interest.
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CHETRY: How far will the Clintons go to secure a Cabinet position? You're watching the "Most News in the Morning."
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JOHNS: Welcome back to the "Most News in the Morning." A slew of Cabinet announcements are expected from President-elect Barack Obama this week. Among them, a rival turned supporter Bill Richardson. The New Mexico governor is on track to become the next secretary of commerce. So, in such trying economic times, what's the best advice for Richardson? Who better to ask than the man currently holding that job, Commerce Secretary Carlos Gutierrez.
And thank you so much, Mr. Secretary, for coming in this morning.
CARLOS GUTIERREZ, COMMERCE SECRETARY: Good morning, John.
JOHNS: You know Bill Richardson. He was one of the people who was most likely to, we thought, become the next secretary of state. Now, he's going to become the commerce secretary. Could you kind of get inside his head for me a little bit. Do you think this is -- is he feeling like this is a step down?
GUTIERREZ: Well, you know, it's interesting but a lot of the skills that you want in someone doing foreign policy are very helpful for the Commerce Department. We spend a lot of our time dealing with foreign partners. Spend a lot of our time dealing with officials of foreign governments on trade issues -- solving trade issues, advocating for U.S. companies, trying to open up markets.
So, it is -- it's actually a similar set of circumstances except it's for the commerce part of our economy. But very important that they have a sense of America's place in the world from an economic standpoint and are committed to trade and to opening markets for our businesses.
JOHNS: What kinds of changes do you see in store for the department under Secretary Bill Richardson?
GUTIERREZ: Well, I think one of the big challenges that a new secretary of commerce will have is to convince constituents, convince Congress that trade is important. Right now, there is a sense that we may -- that it would be better to back away a bit, that maybe not doing so much trade. We, frankly, are falling behind in terms of our ability to access markets, to open up markets, versus other countries.
Europe has more free trade agreements than we do. China has more free agreements than we do. And we're sort of standing still. We signed the Colombia agreement 700 days ago. It's still hasn't been approved. So, I think that will be a very key challenge for the next secretary of commerce to convince everyone that trade is for the good of our country and that we can't afford to stand still, we've got to push forward.
JOHNS: Now, you're one of the people calling for a bailout or rescue plan for the auto industry as it were, as long as the automobile companies can show economic viability. Why is it been so hard to get to some type of closure on an agreement for this industry, which so many people say is needed so badly?
GUTIERREZ: Well, first of all, Joe, we believe this is an important industry. The president has said so. We're talking about a lot of jobs. We're talking about an important part of our manufacturing base, a lot of R&D. So, the automobile industry is important.
We all agree, I believe, that Democrats and Republicans agree that they should show viability. No one wants to put money, taxpayers' money, into a company that isn't viable. Where there appears to be some discrepancy, assuming we get over, and we all agree that they have plans to viability is where the money comes from.
We are proposing to take the money from a bill that has already been approved for the auto industry, which is Section 136 of the Energy Bill. We don't think it is a good idea to go into the financial rescue package that was intended exclusively for the financial industry and start opening up that package for other industries.
If we do that, where do you stop? Where do you draw the line? I can tell you there are many industries who would like to get their hands on a piece of that package. Then we get into something that I think will be difficult to control.
JOHNS: You know, it's kind of a contradiction in terms, though, when you think of it. On the one hand, you're asking for long-term viability, but if they could show long-term viability, the fact is, they wouldn't be asking Congress and the administration for a bailout in the first place.
GUTIERREZ: You're right and it's a good point. And you know, what we're asking for is a path to viability. Show us how you would get there. Show us how you would make your costs competitive. Show us what kind of -- what you would do with your product line. We know that there is pretty much of a bloated dealer network. Show us how you would somehow manage that. You know, show us a plan that would get you to viability.
And that's essentially the discussion. We've had a lot of discussions around assumptions, but it really is a path to viability as opposed to assuming that they'd get there immediately.
JOHNS: Great. Thank you so much, Mr. Secretary.
GUTIERREZ: Thank you, sir.
JOHNS: I really appreciate you coming in this morning. GUTIERREZ: Appreciate it.
