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President Obama Wins Nobel Peace Prize; The Dropping Dollar; Moonstruck

Aired October 09, 2009 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


HEIDI COLLINS, CNN ANCHOR: Peace Prize surprise. President Obama wins the Nobel award. You'll hear the committee's reasons plus world reaction.

Crater crashing. Two U.S. spacecrafts slam into the moon on a mission to find water.

And the dollar dropping. What's that do to your wallet?

Good morning, everybody. I'm Heidi Collins. It is Friday, October 9th, and you are in the CNN NEWSROOM.

President Obama, Nobel Peace Prize winner. This morning's announcement considered stunning, even the White House admits it was surprised.

That's where we find our Dan Lothian, in fact, this morning. He'll have the reaction from the president and his administration.

And Barbara Starr is at the Pentagon this morning. Is there a conflict between the president as peace maker and his role overseeing two wars?

(BEGIN VIDEO CLIP)

THORBJORN JAGLAND, CHAIRMAN, NORWEGIAN NOBEL COMMITTEE: The Nobel committee has decided that the Nobel Peace Prize for 2009 is to be awarded to President Barack Obama for his extraordinary efforts to strengthen international diplomacy and cooperation between peoples.

(END VIDEO CLIP)

COLLINS: Let's begin this morning at the White House, with CNN's Dan Lothian.

Good morning to you, Dan. Boy, it's a surprise. I mean, there's no question about it, right?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: It really was a surprise. You know, it was that shocking wake-up call in the morning. It wasn't at 3:00 a.m., it was shortly before 6:00 a.m. Robert Gibbs, the White House spokesman, telling me that he called the president, told him of the news that he had won the Nobel Prize and that the president was, quote, "humbled to be selected by the committee." But, clearly, this is something that caught the White House off guard. In fact, another senior administration official saying that we were quite surprised by it all. Now, you know, the interesting thing will be to find out how this plays out in terms of politically, both here in Washington and around the world. But, clearly, what this administration has been saying now for quite some time is that the president has been changing the tenor and the tone of how people around the world view the United States.

In fact, time and time again, we will get e-mails from White House aides showing us how, you know, different organizations or different countries are reacting to the United States and they'll point that, you know, the tenor has changed.

No longer does the world view the United States as only using its hammer, but as being willing to sit down at the table, to use dialogue instead of using sort of the strong arm. So that, obviously, played into, you know, this prize that the president won this morning.

COLLINS: Well, obviously, Dan, one of the reasons why it's surprising, that I think everyone's talking about, is that the president has been in office for nine months.

LOTHIAN: That's right.

COLLINS: He's made a lot of promises and has a lot of goals that he wants to achieve, but the idea that maybe not a lot of them have certainly been fulfilled as of yet, when you win the peace prize, how does that play out?

LOTHIAN: That's right. I mean he, essentially, is getting an A for effort here before he has even finished taking the test. But you know, some see this, and this is what we're hearing from the pundit chatter this morning, is that, you know, this could give the president some clout as he pushes for health care reform, as he pushes to get this plan through on what will happen in Afghanistan going forward, as he pushes for dialogue with Iran and North Korea.

On the other hand, there are those Republicans, in fact, one Republican who worked in the former administration who pointed out that this really could backfire on this administration and this official saying, quote, "This is a gift to the right."

COLLINS: Well, very interesting. We, of course, will be talking about all of that right here in the CNN NEWSROOM. Sure do appreciate it. Dan Lothian this morning out in front of the White House.

In fact, want to let you know, we are expecting to hear from President Obama next hour. Two senior administration officials are telling us that he will make a statement, 10:30 Eastern from the Rose Garden. When it happens, we will bring it to you live.

The president recognized for peace making efforts while also serving as the commander in chief of two separate wars. Will today's honor affect how he moves ahead on some of these critical decisions that we've been talking about here, like possible troop buildup in Afghanistan, for example. Let's talk to our Pentagon correspondent, Barbara Starr, now with more on that. So, Barbara, do you think this will have any impact?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Heidi, talk about a case of, on the one hand, but on the other hand. You know?

COLLINS: Yes.

STARR: Well, later today, the president's advisers will all sit down and meet with him again to talk about this issue of Afghanistan, the way ahead, how many troops to send, what the strategy is. So this certainly comes at a time when all these things are front and center at the White House.

I think, perhaps, my colleague, John King, said it best earlier. Perhaps this is the Nobel committee's investment in the Obama administration's future. One of the things the committee said is they were taking special note of President Obama's initiatives and work for nuclear arms reduction.

That's something that hasn't gotten a lot of attention so far. But the president has made a number of statements and worked for the last several months towards reducing worldwide nuclear arsenals.

He talked about this, perhaps, first, earlier this spring at a major speech in Europe. He spoke to a very enthusiastic crowd in Prague. Let's go back and listen to what he had to say.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The existence of thousands of nuclear weapons is the most dangerous legacy of the Cold War. The United States will take concrete steps towards a world without nuclear weapons. We will begin the work of reducing our arsenal, to reduce our warheads and stockpiles.

(END VIDEO CLIP)

STARR: A very enthusiastic crowd last April reacting to that statement by the president. And since then, there has been some progress. You'll recall last month at the U.N. Security Council, the president pushed through a resolution that was aiming towards reducing world stockpiles of nuclear weapons and nuclear testing.

On the other hand, Heidi.

COLLINS: Right.

STARR: You know, Iran and North Korea are still out there and they show little interest in giving up their nuclear programs. So this is one area where the committee took special note, but still work to be done. Heidi?

COLLINS: In fact, inspections have been ordered of this second nuclear facility in Iran. Those are going to be happening on October 25th. Still trying to learn more about what is going on with Iran, in particular, on the nuclear front. So obviously, we will continue to watch all of this very closely. Such an interesting discussion.

Barbara Starr, thanks so much, our Pentagon correspondent this morning.

President Obama, pretty popular around the world. A lot of that because he's reached out to the international community. For instance, last June, in Cairo, Egypt the president delivered a speech entitled, "A New Beginning."

(BEGIN VIDEO CLIP)

OBAMA: I've come here to Cairo to seek a new beginning between the United States and Muslims around the world. One based on mutual interest and mutual respect. And one based upon the truth that America and Islam are not exclusive and need not be in competition.

Instead, they overlap and share common principles, principles of justice and progress, tolerance and the dignity of all human beings.

(END VIDEO CLIP)

COLLINS: President Obama talked again about international bridge building while on a visit to Africa, as America's first African- American president. He delivered a message of friendship and hope to members of Ghana's parliament.

And at the G-20 summit in London, the president focused on the danger of nuclear weapons. Specifically, he warned Iran to come clean on its nuclear program or face the threat of international sanctions.

Let's not forget about the ongoing threats from al Qaeda, too. Not only in Afghanistan, but Pakistan as well.

CNN's Reza Sayah is joining us now from Islamabad with more on this.

So, Reza, good morning to you. What does this mean for the administration as it manages threats from around the world?

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Well, the Barack Obama administration certainly has a challenge on its hand in this region in Pakistan and Afghanistan, and it's interesting, with this Nobel Peace Prize being awarded, Pakistani government officials very glad that President Obama has won this award, because like most of the international community, they like him.

But they're surprised that he won this award so early in his presidency. Many telling CNN, wait a minute, this is an award that usually goes to people that have achieved concrete results and they don't believe that President Obama has achieved concrete results in this region.

And what a challenge President Obama has in this region. He has come, his approach has been a tough approach with Pakistan's tribal region. He describes it as a central front on the war on terror. He says the Pakistan's tribal region is a safe haven for al Qaeda. Remember, this is the same message that the Bush administration delivered and Pakistan did not like. But what the Obama administration, what President Obama has done has complimented that with a more conciliatory approach, giving respect, so to speak, to Pakistan's sovereignty.

It's been a balancing act so far that has worked. Pakistan, generally speaking, accepts President Obama's policy here, but they're kind of surprised that he was awarded this prize. It's a very lofty and prestigious prize without a long resume of achievements, Heidi.

COLLINS: As far as the conciliatory tone in the way that he's handling Pakistan is that the safest thing for American soldiers fighting in Afghanistan just across the border.

SAYAH: Well, look, I think one thing that the Pakistani officials are looking at and one of the challenges of President Obama is the situation in Afghanistan. One thing that Pakistan has expressed concern over is the notion of adding more troops, the 40,000 troops that's been talked about across the border.

Pakistani officials say that will directly impact the volatility in the tribal region, in Pakistan, the suicide attacks have been on the rise. You had another one today that killed 49 people. So keep an eye on decisions like that.

If Barack Obama chooses to add more troops, that will directly impact, possibly, his relationship with Pakistan.

COLLINS: Yes. It's fascinating. Of course, the timing of all of that, because we are still waiting for a decision on that after the military commanders have already given him their assessment of the situation there, what that decision will be. We have not heard as of yet. Supposed to be something like the end of the month. So we are watching that closely.

Before we let you go, Reza, let's talk quickly about Iran here. Obviously, we've talked recently about nuclear inspectors going into the second facility, that's going to happen on October 25th. If, in fact, that doesn't work out, the idea of sanctions, which we have talked about many, many times getting tougher.

When an award like this is presented, does it mean that the international community, if need be, then becomes more cooperative with what the United States may need to do here?

SAYAH: Well, look, let's talk about the Iranian government first of all and what they think about the Nobel Peace Prize. They don't think much of it. I just got off the phone with a Tehran-based analyst and, you know, he tells me the Iranian government believes that this award is irrelevant.

They think it's a pro-western, Euro-centric political award and they believe this award only goes to people, a group of people that share in the so-called pro-western ideology. But keep in mind, Iran is divided into two, and you saw that division over the summer after the unrest in the elections.

COLLINS: Yes.

SAYAH: There's a lot of reformists, so-called moderates, the opposition movement, and I spoke to a lot of them who like President Barack Obama, so they are happy with this award. And perhaps it will help in the reconciliation, if it is to happen, with the U.S.

COLLINS: OK. We will be watching all of the international fronts, obviously, as usual, right here. Reza Sayah, thanks so much, live from Islamabad, Pakistan this morning.

President Obama does become the third sitting U.S. president to win the Nobel Peace Prize. He joins Theodore Roosevelt back in 1906 and Woodrow Wilson in 1919. Here's some other notable Americans who have won the Nobel Peace Prize.

Civil rights leader Martin Luther King Jr. was recognized in 1964. Henry Kissinger shared the prize in 1973. And in 2002, former president Jimmy Carter was also awarded the prize. Two years ago, it went to former vice president Al Gore with his intergovernmental panel on climate change.

Falling dollar, rising stocks. We look at the link as we look ahead to Wall Street's opening.

ROB MARCIANO, AMS METEOROLOGIST: And I'm Rob Marciano in the CNN severe weather center. We have flooding issues again today across the mid-south. Plus, NASA launches a rocket and slams it into the moon. A remarkable mission that ends with a blast. The CNN NEWSROOM is coming right back.

(COMMERCIAL BREAK)

COLLINS: In news about your money, the dollar hits a 14-month low against the currencies of major U.S. trading partners.

CNN's Christine Romans is here on what exactly that means.

And we've talked about it a little bit before, Christine. What is new here and why should people be concerned?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, the newest development is since last night when the Fed chief, Ben Bernanke, gave a speech, the dollar has actually rebounded just a little bit, Heidi. And here's what the Fed chief said that caught the attention of dollar traders around the world.

He said that, eventually, after a long period of low interest rates, eventually when the U.S. economy recovers, and that recovery is well in hand, then we will have to start raising interest rates. When we do that, then the dollar becomes a little bit more attractive. So that's why the dollar has come up here a little bit.

It also shows that they're starting to think about taking away this massive stimulus that's been in the financial system. And that massive stimulus, many say, has been rushing into things like gold and like oil and commodities.

COLLINS: Yes.

ROMANS: So money coming out of the dollar and going into those things. But look, I want you to look at a chart of the dollar. It hit a 14-month low as of -- by last night, it bounced a little bit, as I said, last night and this morning. A 14-month low.

The dollar is down 12 percent since President Obama took office. And what people are saying, a few different things. One, maybe hopes for a recovery. The economy starts to get better, the economy starts to grow, the worldwide economy grows, there's a demand for all these commodities, it makes those commodities get more expensive.

You start to -- get concerns about the amount of debt that we're taking on as well and the dollar gets hammered here and these commodities start to do better. The other thing here is that the hope for recovery might spark -- the recovery might spark inflation down the road.

COLLINS: Yes. Sure.

ROMANS: But here's the tricky thing about that. The bond markets are not showing any concern at all about inflation. In fact, the very opposite. So we're getting some conflicting signals in the markets overall. The dollar has been weak here in the United States.

Of course, its official position is that it favors a strong dollar and what's best interest for the U.S. economy -- in the best interest of the dollar is the economy is a strong U.S. dollar. But it's good for our exporters when it's weak. So there's now...

COLLINS: Absolutely.

ROMANS: ... this chatter that maybe the United States is kind of like watching -- quietly watching the dollar erode and not really do anything about it or saying anything about it, because frankly, it helps our economy a little bit for our exporters.

So some interesting things happening here in this currency that makes much more -- mean much more about the future of this country than just what your dollar is going to get you if you go on vacation.

COLLINS: Well -- and that's exactly it. We're going to be talking a lot more about it today, especially with all the talk that we've been hearing as well about the currency with oil trading.

ROMANS: That's right.

COLLINS: On the dollar. So we have a segment coming up a little bit later on that.

ROMANS: Great.

COLLINS: And also about what it means for the debt. We're talking about a very large amount of money if the dollar is weak. You know what happens there.

ROMANS: That's all important stuff. I'm glad you're covering it.

COLLINS: Yes. Very good. Christine Romans, thanks so much. In fact, it's Peter Morici who's going to be bringing us his take on the falling dollar. He is an expert on international business who's advised presidents and Congress. Peter Morici coming up in the NEWSROOM in about an hour on those topics.

Explosion on the moon. NASA crashes an empty rocket into our celestial neighbor on purpose. Yes. What's that all about? Think moon base.

(COMMERCIAL BREAK)

COLLINS: Checking our "Top Stories" now. At least 49 people are dead, 135 wounded in a bombing in Peshawar, Pakistan. Today's blast targeted a busy market on a day when most people were off work. The attack comes as Pakistani authorities announce the arrest of the suspected mastermind of Monday's bombing of a World Food Program office in Islamabad.

The father of a suspect accused in a New York City bombing plot has been indicted. Mohammad Zazi will be in federal court in Denver later today. A grand jury indicted him yesterday for lying to FBI agents about his son in a matter involving alleged terrorism. Najibullah Zazi is still in jail on charges of conspiracy to detonate explosives.

At least 97 people are dead from landslides and flooding in the Philippines. Rescue groups say nearly 200 others are also probably dead. The destruction was triggered by a downgraded typhoon's pounding rains on saturated ground. Rescue trucks were stopped in some places by floodwaters that were just too high.

And today we want to talk a little bit more with you about what you think about President Obama winning the Nobel Peace Prize. It was announced very early this morning. A lot of people just now still hearing the news of it. So we want to find out what you have to say about it.

Head on over to our blog here, CNN.com/heidi, and let us know what you think. You can read a little bit about the story and then go ahead and post your comment there. We'll bring some of those statements to you coming up a little bit later, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: A perfect strike. You saw it right here on CNN, in fact. NASA scientists deliberately fired an empty rocket from a satellite into the moon. Then it crashed the satellite into a crater. Photographing it all, the orbiting Hubble space telescope and the orbiter that launched the satellite. NASA is hoping to find water on the moon so it can one day build a base there. Rob Marciano is joining us now. So the deal was, what, they shot this rocket into the moon, wanted to bring up a bunch of dust, right?

MARCIANO: Right. I mean...

COLLINS: And then determine if there were any water molecules.

MARCIANO: I mean, in the end, you know, the guys and gals at NASA just, you know, want to make explosions, shoot rockets out and make explosions.

COLLINS: Yes.

MARCIANO: This is like a perfect scenario for them. And of course, hitting the moon and crashing into it is a lot easier and likely more fun probably than having to land on it. It's a little bit more of a delicate process.

COLLINS: Yes. I imagine.

MARCIANO: I'm not sure if we were able to -- those are the pictures now that we're getting in from Hubble, or that's the animation. Anyway, pictures will be streaming into the CNN NEWSROOM as they're released from NASA as to what the actual thing looked like. But we'll show you what the plan was here.

They launched this thing, you know, like all -- most satellites, which were either released by the shuttle or are launched the old- fashioned way by booster rocket. In this case, one that they've been using for decades, since the '50s and '60s, since they launch rockets.

And then -- so this thing was supposed to, you know, get up there and it's been going around for a few months. In June, they launched this thing. And been doing system checks and rotating it around, orbiting around the earth and the moon, and then getting it lined up and ready to slam into the moon.

As you mentioned, the idea is, line it up, detach the rocket from the actual probe that's going to measure it, let that rocket go in there first, about four minutes later, it kicks up some dust and allows the measurements to be taken.

All right, let's tell you a little bit about the moon. What is it?

COLLINS: It's big.

MARCIANO: It's 240,000 miles away? So it looks real close, especially when it's full and sitting on the horizon, but it's tens of thousands of miles away and it takes a while to get there. It doesn't have an atmosphere, as you know, and we've been up there. There's been several countries who have been up there, at least unmanned.

And everywhere you see a flag, there's either a human artifacts, something that we've put up there on purpose, something that has been scattered up there due to missions. And you also notice a lot of craters and pockmarks. Well, the craters there are just things that have hit the rock over a number of years and the reason that they stayed there longer than they do on earth, they don't have any weather up there to erode it with wind or water.

And they don't have that atmosphere to protect it from meteorites. Anyway so here's the thing. Here's the crater that it's supposed to go into. This is 100 degrees Kelvin, which is a scale we use when things are so cold. They're the equivalent of 180 degrees below zero.

So that's cold enough to keep ice on a surface for billions of years and they're hoping that there is billions of years worth of ice on there that they can harvest and maybe get people to live up there for a long period of time. Because water is very heavy and costly to carry by rocket, so if you can have it where you're going to live and just tap into it, that would be ideal.

We'll see if they get those kind of data, coming back.

COLLINS: Yes. I bet everybody, very excited to see exactly what the success of this really was. All right. Very good, Rob Marciano, the moon man today. Thanks so much.

MARCIANO: We'll see you later.

COLLINS: President Obama makes history, wins the Nobel Peace Prize. Hear why he won and what people are saying about this unexpected selection.

(COMMERCIAL BREAK)

COLLINS: Wall Street coming off two losing weeks but this one could end with a win. (INAUDIBLE)

For a look at today's early action, let's get to Susan Lisovicz at the New York Stock Exchange with more.

Just heard that opening bell there, Susan.

Good morning to you.

SUSAN LISOVICZ, CNN CORRESPONDENT: Good morning to you, Heidi. And, yes, we're expecting a little bit of weakness, at least in the early going. But for the week, another story, big gains for the week. The Dow alone set to close up about 300 points. Well, going into today's session, of course. This coming on the back of some upbeat economic news. We had a report showing the service sectors growing, retail sales are improving, early corporate earnings are upbeat.

This morning, word that our international trade balance improved as exports of U.S.-made goods rose. Because of these signs, Fed Chief Ben Bernanke says the Central Bank could tighten monetary policy as the recovery takes hold. Not likely, though, to happen for a while. Policymakers have pumped more than $2 trillion into the economy and have kept interest rates at historic lows. Bernanke's comments strengthened the value of the dollar, lifting it off a 14-month low against the Euro.

General Motors, meanwhile, speeding ahead in China. The automaker says it sold a record number of vehicles in China in September. GM and other automakers have been relying on sales in China to make up for weak demand here at home.

And weak demand is what we're seeing in the early going on Wall Street. The three major averages down, but just slightly. And, again, a very nice week so far, going into the final trading session of the week - Heidi.

COLLINS: That's what we like to see, so far, anyway. We'll see how the whole day played out, obviously.

Susan Lisovicz, thank you.

LISOVICZ: You're welcome.

COLLINS: President Obama is this year's Nobel Peace Prize winner. The Norwegian Nobel Committee made that surprise announcement this morning. It cited the president's, quote, "extraordinary efforts to strengthen international diplomacy." The committee says it attached particular importance to Mr. Obama's efforts to curb nuclear proliferation and his outreach to the Muslim world. The choice shocked Nobel observers, who believed it was too soon to award the president the honor. President Obama is now the third sitting president to win the Nobel Peace Prize.

President Obama's diplomatic agenda is on full display this morning. In the Middle East, envoy George Mitchell has met with Israeli Prime Minister, Benjamin Netanyahu, both last month and again today. The announcement came during today's meeting and at a time when President Obama's credibility as a peacemaker appears to be sliding in that region.

Also, today, Secretary of State Hillary Clinton heads to Russia. She is expected to call for Russia to strongly commit to sanctions against Iran if it does not fully disclose its nuclear program.

So what are people overseas saying about this Nobel surprise?

We asked our correspondents to check it out for us. Our focus this morning, Moscow, Cairo, and Kabul.

First, now, to Russia.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: I'm Matthew Chance in Moscow. And even though the result isn't known yet, already Barack Obama has had a profound impact on often touchy relations between the United States and Russia.

His rhetorical offer to press the reset button in the relationship between the two countries has been backed up with concrete steps, not least his decision to abandon plans to deploy elements of the missile defense system of the United States in eastern Europe. That was a plan which the Russians strongly objected to. And that move has, in itself, opened up a whole range of possibilities for diplomatic cooperation, not least over how to tackle Iran's very controversial nuclear program.

COLLINS: Perfect.

ATIA ABAWI, CNN INTERNATIONAL CORRESPONDENT: I'm Atia Abawi in Kabul, where we're getting a very interesting reaction from the Afghan people on President Barack Obama's win for the Nobel Peace Prize. They say that they appreciate his efforts to try to bring peace in Afghanistan, but they are still waiting for that peace to come. This also comes at a time when President Obama is mulling over the decision to send 40,000 additional troops to the country.

For the most part, the U.S. troops are confident that their commander-in-chief will base that decision on being the president of the United States and not by being a Nobel Peace Prize laureate.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: When Barack Obama came to Cairo in June to address the Muslim world, Egyptians were wildly enthusiastic. Many had fallen in love with the new, young American president with the Arabic middle name. Some even took up the slogan, "Yes, we can," but that was then and this is now, and the love affair is beginning to go sour.

One Egyptian analyst I spoke who's normally quite well disposed to the United States said he was shocked at the news that he'd won the Nobel Peace Prize. He said that none of the promises made by the new U.S. president have been achieved, that the Arab-Israeli conflict is, if anything, getting even nastier. In short, he said he's done nothing.

Now, Egyptians look at this administration as a work in progress, but in a region where war is always looming, where the U.S. often flexes its military might, the feeling among many Egyptians is it's a bit too early to be handing out the laurels.

Ben Wedeman, CNN, Cairo.

COLLINS: All right. So there's the picture, kind of -- from three different spots, anyway, in the international world. We want to turn now to our CNN senior White House correspondent, Ed Henry, with more on this.

So, Ed, we know that the president himself is going to be coming out in about an hour or so in the Rose Garden to talk a little bit about this, which will be very interesting. But we have already heard from the administration, Rahm Emanuel, in particular.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: That's right. I started the morning, Heidi, with a phone call to Rahm Emanuel, the White House chief-of-staff. And you'll remember this time last week, I was talking to you live from Copenhagen, where the president had the failed Olympic bid, and Rahm Emanuel said, quote, "It's clear Oslo beats Copenhagen any day of the week."

Now, he assured me he was joking, but I think there was also a serious point being made in that statement, which is there's some measure of vindication in this honor within the White House, because we're going to see a president, we're told by his aids, come out in the Rose Garden. He's going to be very humble. And, obviously, there's no point in patting himself on the back over this, but they feel like they've taken a lot of heat in recent weeks on both the international stage as well as here at home, on the economy, on health care, et cetera.

And so the fact that he's honored in this way, certainly, gives him some measure of vindication. But as you've heard from our correspondents around the world, people around the world are going to be waiting and wondering what do you do to follow this up?

COLLINS: Sure.

HENRY: What are you going to actually accomplish? Not just the speech to the Muslim world, not just bringing the Israelis and Palestinians together in New York a couple of weeks ago. A positive step forward perhaps, but actually trying to get the process back on track and forge Mid-East peace. That's going to take a lot more.

And I also just a couple moments ago spoke to Jared Bernstein, the vice president's chief economist, and I was interviewing him in a pre-tape for my radio show, it's going to be on at 11:00 a.m. Eastern Time on CNN.com, and he had to run. Basically, we're redoing a pre- tape because he said, I've got to go to a meeting with the president on the economy, on job creation. A reminder for this White House as if they needed one that these international honors are great.

COLLINS: Right.

HENRY: But a lot of people in America are saying, when are you going to start creating jobs? There are a lot of problems at home he's going to have to deal with - Heidi.

COLLINS: Absolutely. That's a very good point. And I wonder, too, if this honor, you know, just politically speaking, I'm fascinated by how you would manage this event or the way that this happened. Because does it not also then put more pressure on the president to come through with some of these things that he has hoped to come through on.

And we've talked about, you know, the exact wording from the Nobel Peace Prize voting body, if you will, that said they awarded him because of his efforts.

HENRY: Right. And now comes the follow up. And that's going to be the key. And I'll leave you with this, which is that, how striking is it that early this morning, the president wins the Nobel Peace Prize. Later this afternoon, he'll be in the White House situation room with his war counsel, debating whether to send 20,000, 30,000, maybe 40,000 more U.S. troops to Afghanistan. So as his war counsel meets, he wins a peace prize. You'll undoubtedly going to hear liberals in the president's own party in the days ahead say. Mr. Peacemaker, why are you sending more U.S. troops to Afghanistan? Certainly Democrats like Russ Feingold have been pressing him to set a timetable to withdraw from Afghanistan. Instead, it appears, and he hasn't made the decision yet, which he stress, but it certainly appears that the president is headed towards sending at least some more U.S. troops. In fact, his Spokesman Robert Gibbs has said in recent days, the only thing off the table right now is pulling out of Afghanistan. So this puts a lot of pressure on the president to produce on the peace front, as well as whether he's going to pull out of Afghanistan, or at least have a strategy that he's trying to put together now that puts us on some sort of a time frame to eventually get out - Heidi.

COLLINS: Yes. Wow. It just sort of brings all of these issues right back into the limelight, obviously, in a way that I don't think anybody really expected.

All right, Ed Henry, thanks so much. Sure do appreciate that.

HENRY: Thanks, Heidi.

COLLINS: We want to talk a little bit more about this. More reaction, if you will, to the big news.

CNN political contributor Ed Rollins, who is also a Republican strategist, is joining us this morning from New York.

Hi, there, Ed.

ED ROLLINS, REPUBLICAN STRATEGIST: Good morning.

COLLINS: And Paul Begala, a Democratic strategist, who is in Los Angeles for us this morning by telephone.

Paul, good morning to you as well.

Guys, I want to start with this.

Is there anybody who is not surprised by this award going to President Barack Obama?

Ed, I'll start with you.

ROLLINS: I was astonished. I mean, I offer my congratulations to the president. I'm always glad when America wins anything. And so I think to a certain extent, the key thing here is, you know, it's a great award. He now has to go win it. There's been a lot of rhetoric, a lot of things he wants to do, making them accomplish. The accomplishment is very difficult. Paul and I both worked for presidents -- he, Clinton, and I, Reagan, who actually did reduce nuclear weapons and what have you, and it was very difficult, and neither where in the mix for the Nobel Peace Prize.

So I think the president now has very, very tough sledding ahead, and I think to a certain extent, he can bask in the glory today, but he's got to get back to work. He's got to make a decision this afternoon whether to send more troops, create jobs and the health care.

COLLINS: Yes. So, Paul, what do you think about it?

Nine months in, people are talking very much across the world about how this was quite a surprise because the effort is one thing, but the accomplishment is another.

PAUL BEGALA, DEMOCRATIC STRATEGIST (via telephone): Well, absolutely. But I do think it is -- I mean, look, anybody would want a Nobel Peace Prize. Ed is right. It's always good when an American wins one.

I do think maybe this puts a little more wind in his sails at a time when he needs it. You know, the dollar is under fire around the world. As Ed Henry pointed out, we just lost the Olympics in a pretty humiliating way. The Afghanistan policy is under review. We're trying to jump-start the Middle East peace process. This all I think becomes a backdrop for this prize.

I wouldn't say he's had these enormous accomplishments the way that, say, Teddy Roosevelt, a president who won the Nobel Peace Prize while in office. He won it for resolving the Russo-Japanese War in 1905.

COLLINS: That was a while ago, wasn't it?

BEGALA: In a while. And Secretary of State Henry Kissinger while in office won the Nobel Peace Prize for helping wind down American's involvement in Vietnam. This is more aspirational. But I think it's an untrammelled good. And I think people -- conservatives need to be careful in listening to what Ed Rollins is saying, rather than maybe repeating this sort of party line. I think every American should say, this is great, this is wonderful, now let's enact America's agenda.

COLLINS: Well, let's put it this way. I mean, when you look at the international community, this is a prize that everyone in the world is very well aware of, obviously. It is a prestigious prize. But my question then is if an American president wins it while there are two wars going on, and there are situations with Iran and North Korea and other things, does that mean, then, that the international community is more on board with U.S. policy? And what I'm talking about is, does it mean that NATO is going to commit more troops for Afghanistan? Does it mean that Russia and China, will, if needed, sign on for tougher sanctions against Iran, Ed?

ROLLINS: I don't think it means any of that. I think the bottom line is this president, day by day, has to win the leadership role from these other world leaders.

I only want to remind, there's two other incumbent presidents who won this award. Woodrow Wilson, who died a broken man trying to get his league of nations that the world had passed, but the United States Senate had rejected. He died after a stroke. Teddy Roosevelt, who obviously did the great things. Paul said, a historic figure, left office, couldn't four years later get back the nomination of his own party. Created a third party, but didn't win back the presidency. So winning American support for these kinds of things is sometimes hard.

COLLINS: Yes.

ROLLINS: It's a positive thing. Let's hope he can do the best with it that he wants to do, but there's some tough tasks ahead here as opposed to internationally.

COLLINS: Paul, does it change anything for the president?

BEGALA: A bit. I would say, if I were a military man, that it's a bit of a force multiplier. You know, all politics is local. To the extent the American president is respected in other countries, that helps our country.

Now, nations will always do what is in their interest, not simply whether they like or dislike a president. But it's obviously in America's interest to have a president who can go around the world and win the respect of the local population, because then if the leader of that country with whom he's dealing wants to buck the United States, it's a little harder to do. But that's all that it is. There's a force multiplier. We still have to understand that nations will always act in their own self-interest.

COLLINS: Yes.

BEGALA: But I think President Obama at least has a little extra wind in his sails today.

COLLINS: All right.

Well, Ed Rollins and Paul Begala, sure to appreciate the discussion, guys. Thanks very much.

ROLLINS: Thank you.

COLLINS: Health care reform. There's another domestic issue in the home stretch, but will it actually make it to the finish line? Hear what some Democrats and Republicans are saying about the latest bill.

(COMMERCIAL BREAK)

COLLINS: Checking our top stories now: the House Ethics Committee has expanded its investigation of New York Democrat Charles Rangel, one of the most powerful members of Congress. Rangel has been under fire over several issues, including failure to report assets and pay taxes.

As you know, he heads a committee responsible for writing tax laws. Republicans made an unsuccessful attempt to get him removed from that post.

A horrific attack on the campus of UCLA, police say a female student is in stable condition this morning after her throat was slashed yesterday in a chemistry lab. A 20-year-old male student was arrested in the same building shortly after the attack. He's being held on suspicion of attempted murder. Bond is set at $1 million.

Overseas, 49 people are dead in a bombing in Pakistan. A car bomb detonated near a crowded market, more than 130 people were injured. It happened on the northwestern city of Peshawar. Earlier, police say militants attacked and torched NATO vehicles traveling to Afghanistan.

Rob Marciano, joining us now with more on the weather across the country; a stormy weekend for some somewhere?

MARCIANO: Well midsection right now and mid-South...

COLLINS: Yes.

MARCIANO: ... and slowly creeping across the southeast. We've got a number of flood watches and now warnings. The brighter green is where we have flood warnings and that's a good swath of southern Missouri in through northern parts of Arkansas and eastern parts of Texas and Oklahoma. And we've seen a lot of rain out of a slow-moving system that's moving off to the east and just most recently, a tornado watch has been posted by the Storm Prediction Center out of Norman, Oklahoma.

There it is, boom the red watch box, about to come on to your screen. So, as these storms roll eastward along the 20 and we get a little bit more heating of the day, they may become strong enough to pop-up a tornado or two.

So be aware of that if you live in northern Louisiana and southern parts of Missouri as these storms get to going pretty quickly.

All right, these red borders continue to pop-up here on the magic wall, indicating that we've got more warnings being posted. A flash flood warning now for Cass (ph) County and Harrison County, this is all in northeast Texas. That line we just showed you begins to roll that way.

Some of the storms last night produced over four inches of rainfall in places like St. Louis, which has seen almost four -- over three inches in the last 24 hours, is under the gun again. This shot from our affiliate out that way KSDK.

Let's switch over to Dallas which has seen I think the bulk of your heavy weather; still rain falling in this area, thank you WFAA. As far as the rest of the country, there is cold air that is starting to pour down from Canada. This will not probably get all the way down to the south.

Again, the big worries, this red-shaded area, Heidi, which will be pushing off to the east slowly, but as it does so not only flooding rains, but now the potential for seeing some severe weather in the form of winds, hail, and potentially tornadoes. We'll keep you posted about that.

COLLINS: All right Rob, very good. Thank you. MARCIANO: You got it.

COLLINS: President Obama makes history, wins the Nobel Peace Prize. We're expected to hear from him next hour. He's going to be making a statement 10:30 Eastern from the Rose Garden. We, of course, will bring it to you live when it happens.

(COMMERCIAL BREAK)

COLLINS: A whole lot going on this morning. We've got our crews ready to bring it to you. Let's check in with our correspondents now.

Barbara Starr at the Pentagon this morning -- hi, Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Hello to you, Heidi. The Taliban now reacting to the big news about President Obama's Nobel Peace Prize. I'll have that at the top of the hour.

MARCIANO: And I'm Rob Marciano in the CNN severe weather center. Flooding has been an issue across the mid-South for the past couple of days. It continues today. And now there's a threat for tornadoes. We'll update that at the top of the hour.

LISOVICZ: And I'm Susan Lisovicz at the New York Stock Exchange, where stocks are on track to post their best weekly gains since July. The Dow is up 300 points so far and flirting with you know what, Heidi. More on that in the next hour.

COLLINS: I love that.

LISOVICZ: The level which name we cannot speak.

COLLINS: No, no, absolutely not.

All right. Talk with you all later. Thanks so much, guys.

Also, investors keeping a close watch on the U.S. dollar which has weakened considerably; we're going talk with an expert about what exactly that means for you and me.

(COMMERCIAL BREAK)

COLLINS: Reshaping health care. The Senate Finance Committee votes Tuesday on its health care bill. It is the only proposal so far with the potential to attract any Republican support. So far no bill has reached the full House and Senate.

But as CNN's Jim Acosta reports, Democrats are optimistic.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT: Democrats aren't about to pull the plug on health care reform. In fact, some are all but gift wrapping it for delivery to the White House just in time for the holidays.

SEN. TOM HARKIN (D), IOWA: And we're going to have it on the president's desk before Christmas.

ACOSTA: Before Christmas?

HARKIN: Before Christmas.

ACOSTA: Do you think you will have a signing before Christmas?

HARKIN: Yes, I do. I believe he will sign it before Christmas.

ACOSTA: Iowa Senator Tom Harkin, who replaced the late Ted Kennedy as chairman of the Health Committee, is confident. That's because there's talk of compromise. The Senate Majority Leader Harry Reid begins the process of merging two bills from the Help Committee and what's expected out of the Finance Committee.

One compromise is called an "opt out," a provision that Harkin says would allow states to choose for themselves whether to join a government insurance program or public option.

HARKIN: In fact, I had suggested maybe one time that there should be a reverse option, in other words, you have a public option and if the state wants to "opt out" of it, they can "opt out" of it.

ACOSTA: Democrats know the public may be coming around, with one recent poll showing support for their proposals climbing to 40 percent, from 34 percent a month ago.

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: We're coming around the curve. We're coming around the curve.

ACOSTA: Former Senate Majority Leader Bob Dole is predicting a bill will pass and he's warning his fellow Republicans to get on board stat.

BOB DOLE (R), FORMER SENATOR: They don't want Obama to get it, so we got to kill it. Not because of the merits of the bill, but because they don't want the president to get any credit. Now, you can do that. Now and then I'm partly guilty of it. But you can't make a habit of it. And health care is one of those things.

REP. JOHN BOEHNER (R), OHIO: I don't know what kind of process this is, but I think it's outrageous.

ACOSTA: But current GOP leaders on Capitol Hill want none of it, accusing Democrats of hiding the true costs of health care reform.

SEN. MITCH MCCONNELL (R), MINORITY LEADER: That's because the real bill will soon be cobbled together in a secret conference room somewhere here in the Capitol by a handful of Democratic Senators and White House officials.

ACOSTA: In the end, Senator Harkin believes Democrats will support a robust public option in the final bill. But senate Democratic leaders are keeping the "opt out" in their back pockets just in case they have to win over any last-minute holdouts.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)