Return to Transcripts main page

CNN Newsroom

Disney's First Black Princess, Michelle Obama's Fashions Influence, Small Businesses Teetering on Failure

Aired December 12, 2009 - 15:00   ET

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


FREDRICKA WHITFIELD, CNN CENTER: We begin this hour with the interrogation of five young American Muslims arrested in Pakistan this week. They were questioned again today, and according to a Pakistani police official the five established contact with a Taliban recruiter and admitted that they came to Pakistan to be martyred. Members of the Virginia Mosque the men attended say they are simply shocked. CNN's Brian Todd reports.

(BEGIN VIDEO CLIP)

BRIAN TODD, CNN CORRESPONDENT (voice over): At small ranch style house just yards away from a strip of suburban sprawl outside Washington, worshippers arrive for Friday prayer, this house converted to a mosque. The place where five young men arrested in Pakistan prayed bonded, and according to leaders here who know them, acted like a lot of guys their age.

MUSTAFA ABU MARYAM, ISLAMIC CIRCLE OF NORTH AMERICA: They were wholesome kids. Very goofy, you know? Talk about girls.

TODD: In his dealings with them, he found them more interested in basketball, swimming, helping out at mosque functions, never conflict or politics. He says he never suspected they would harm anyone. But in an interrogation report, Pakistani authorities say the five were of the opinion that a Jihad must be waged against so-called infidels to commit atrocities against Muslims. That they plan to go to Afghanistan and that one of them Ahmed Minni went online to praise a task against Americans. None has been charged, but they remain detained in Pakistan. It was from this community that many and the other four went missing late last month. We expressed mosque leaders on whether they may have been radicalized at this place.

ASHRAF NUBANI, ATTORNEY, ISLAMIC CIRCLE OF N. AMERICA: I think that the community, this mosque, he especially, has been vigilant in taking it upon themselves to look into this and find out where the radicalization was coming from, if indeed there was radicalization in this situation. Certainly it doesn't come from mosque.

TODD: Mosque attorney Ashraf Nubani says U.S. law enforcement backs him up on that. Radical is not a word local Muslim leader would use to describe one of the men, Ramy Zamzam who Bray says he saw at several functions.

MAHDI BRAY, MUSLIM AMERICAN SOCIETY: I thought he was very articulate. I also thought that he had leadership potentials.

TODD: The man who mentored Zamzam and his friends say he is still in shock.

MARYAM: I have always known these kids as fun loving, career-focused children with a bright future ahead of themselves. I hope all this is not true.

TODD: Mosque leaders said the families of these young men were not ready to speak publicly. They say while the law enforcement investigation proceeds, they'll conduct their own internal probe to make sure this mosque is not connected to any kind of extremism.

Brian Todd, CNN, Alexandria, Virginia.

(END VIDEO CLIP)

WHITFIELD: In the fight against Taliban al Qaeda terrorists, the Pakistan army says it has wrapped up a nearly three-month offensive against Taliban fighters. But it is believed that many militants spread to other areas along the border with Afghanistan. Pakistan says it may now launch a new offensive in those areas.

Mean while U.S. secretary of state Hillary Clinton says it's imperative that Pakistan keep up the pressure on terror groups in the border region.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, U.S. SECRETARY OF STATE: Pakistani military has taken on the fight against the Pakistani Taliban. And the United States has increased our efforts to help, but there are other terrorist groups who have set up camp in Pakistan, where they are plotting global attacks and waging war against the troops from 42 nations who comprise the international security assistance forces in Afghanistan.

Pakistan has a critical role and an abiding interest in helping this international effort, and we will continue to encourage the Pakistani government to take affirmative steps toward the goal of disrupting, dismantling and defeating al Qaeda and the other terrorist groups responsible for so much suffering in Pakistan and around the world.

(END VIDEO CLIP)

WHITFIELD: Part of President Barack Obama's new strategy for Afghanistan includes working with Pakistan on anti-terror efforts.

So is al Qaeda trying to soften its image? It's offering condolences to the families of Muslims killed in its attacks. This newly released al Qaeda video expresses regret about what a spokesman calls, "the unintended Muslim victims of its operations." The spokesman says al Qaeda asks Allah to accept those victims as martyrs.

The first step in the 30,000 strong surge in Afghanistan is under way. Advance U.S. intelligence group is scouting areas in southern Afghanistan right now just as insurgent threats start to intensify. Here now is Barbara Starr.

(BEGIN VIDEO CLIP)

BARBARA STARR, CNN CORRESPONDENT (voice over): Here in southern Afghanistan, military advance parties are already on the ground, getting ready for the 30,000 additional U.S. troops that are headed to this war zone. What we have encountered is small groups of U.S. soldiers having a look around with their commanders, trying to decide where they will go, where their bases will be, how they will operate in this region.

These are the so-called enablers, the first 4,000 or so U.S. troops that will work on intelligence, countering IEDs, explosive bombs, all that the incoming combat troops will need. Here in Kandahar we are also learning from U.S. officials that the Taliban and insurgents are responding. The campaign of fear and intimidation against the Afghan people has picked up. We are told the threats have risen, and that of course is a concern to the U.S. troops, one of their main jobs here will be to try to protect the population, but when U.S. troops go out they do not always get a very welcome reception.

MAJ. DAVID HILLS, U.S. ARMY: You're moving through the city and then all of sudden we took a big barrage of rocks, some being thrown from the streets, some are being thrown from the roof tops. It was easy to tell where they were coming from, but it wasn't easy to tell who was throwing it. So there really wasn't much I could do except button up, take care of our own people and keep moving through.

STARR: U.S. military officials also tell us that the thousands of combat troops headed to this region in southern Afghanistan are likely to be based in perhaps as many as half a dozen new forward operating bases that will be constructed across southern Afghanistan.

Barbara Starr, CNN, Kandahar Air Field, Afghanistan.

(END VIDEO CLIP)

WHITFIELD: A defiant defense on the Iraq war from former British Prime Minister Tony Blair. In an upcoming interview with the BBC, Blair says that he would have supported removing Saddam Hussein from power even if there were no evidence; there was no evidence of weapons of mass destruction in Iraq.

(BEGIN VIDEO CLIP)

(UNIDENTIFED FEMALE): If you had known then that there were no WMDs, would you still have gone on?

TONY BLAIR, FMR. BRITISH PRIME MINISTER: I would still have thought it right to remove him. Obviously, you would have to use and deploy different arguments about the nature of the threat, but I find it quite hard because I spend so much time out there now and they're about to have an election, which will probably be the most significant thing that's happened in that region for many years because they managed at long last to break out of, actually, the religious divide.

You've got groupings for the first time standing there in election who are going to be broad based. We hope that it works, but I'm out there a lot of the time in the work I do in Israel and Palestine. I can't really think we would be better with him still in charge. It's incredibly difficult and I totally understand. That's why I sympathize with people who were against it for perfectly good reasons and are against it now, but for me, in the end I had to take the decision.

(END VIDEO CLIP)

WHITFIELD: Next year Blair is expected to be questioned at a British inquiry focusing on Britain's role in that war.

More trouble for Tiger Woods. Some big advertisers are backing away. We'll tell you who.

(COMMERCIAL BREAK)

WHITFIELD: The fallout from Tiger Woods admitting that his infidelity -- I'm talking about the fallout that is what is starting big time. Just one day after Woods' announcement, one of his sponsors says it is phasing out advertisements with his image, with his likeness. A statement today, Gillette said quoting here, "We fully support him stepping back from his professional career and taking the time he needs to do what matters most. We wish him and his family the best. As Tiger takes a break from the public eye, we will support his desire for privacy by limiting his role in our marketing programs" end quote.

Cereal maker Kellogg is going even further, severing its ties with Woods all together, saying his behavior is, quote, not consistent with the company's image. But other big-name sponsors like Nike, Pepsi and video game maker Electronic Arts, all of them for now standing by Woods. Earlier today I spoke with sports business analyst Rick Horrow who said Gillette's move may be just the beginning.

I'm talking about Gillette saying we are going to phase out some of the advertisement that has Tiger Woods' name, or image or likeness, et cetera. Do you agree with Stephen A. Smith who talks about, we are talking about hypocrisy here. That his image has said one thing all this time and now his image says another. And that is what some of these endorsements are all about.

RICK HORROW, SPORTS BUSINESS ANALYST: Perfect storm, Fred. It is the most recognizable guy maybe in the history of the world coming up against the Internet age where accurate or inaccurate information is transmitted in milliseconds. The image he likes to portray can be broken down in weeks. AT&T, not the best positive statement. Gillette, hiatus, but maybe a long-term hiatus. Nike, 800 million reasons why they want to stick with him. That's the revenue every year that Nike golf is creating and it is because of Tiger. So a lot of different issues here.

WHITFIELD: That's the revenue that is created because of his popularity. When something like this is to happen, and of course it's difficult to know at this juncture what this has done to his popularity, but as soon as some of these big companies see, I guess a good number of people have dropped off as saying, yeah, we love you, Tiger Woods, they're only seeing dollar signs, aren't they? HORROW: Now Kellogg's cut Michael Phelps pretty quickly. McDonald's cut Kobe Bryant. Obviously Hertz cut O.J. Simpson, not saying it is the same thing. Twelve millions dollars of corporate spokesman dollars are coming from Corporate America to spokes people. The deals are shorter, they are smaller, and they are easier to terminate. If I'm Tiger, I take his boat "privacy" I would head out to the Atlantic and wait for further instructions.

WHITFIELD: All right. Once more on the Tiger Woods scandal in the next hour, I'll speak with Connell Barrett of "Golf Magazine" about the impact the latest moves may have on the sport. That's at 4:00 Eastern Time only on CNN.

Turning now to another troubled and very public marriage, South Carolina Governor Mark Sanford's wife Jenny has filed for divorce. Governor Sanford says he blames himself for the split. Last summer he admitted having an affair with an Argentine woman that he called at the time his soul mate.

Let's talk weather, rain, snow, cold, lousy weather in so many parts of this country this weekend and on the Pacific Coast. Another big storm. Jacqui Jeras with us now to fill in the blanks.

Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Fredricka, it's like we turned a switch on. Just like over a week ago in our weather. Storm after storm and a lot of snowstorms as opposed to the rain storms. We got a little bit of both in the forecast today. We'll show you some of the worse of it. This is the second storm in as many days to hit California. These pictures out of Blue Canyon. You see the snow which has been coming down in the higher elevations. You know it wasn't too bad yesterday or the day before. That was the weaker of the storms. Today the new one is blowing on through. We could see as much as four feet in higher elevations. Four feet -- I said feet, not inches.

Chains required most definitely this time around. We'll look at the radar here and show you the rain into the valleys. The rain is a concern, as well. We could see some flooding in the burn areas outside the Los Angeles areas. We'll be watching that. You can see the snow coming down into the higher elevations. We have winter storm warnings and advisories covering almost the entire west, outside some of the valley areas. We are going to see heavy snow in the Wasatch Range.

Into the southeast, our other storm system here is bringing some rain showers across much of the Deep South, over towards Little Rock into the Memphis areas, as well as Atlanta. We could see a good inch or so of the rain. It's kind of a steady, soaking rain today. A couple of embedded thunderstorms here making for hazardous travel. Temperatures warm enough this is a rain event. We could see freezing rain or maybe even some sleet begin to mix in to some of those areas.

Temperature wise really shows you how much of the country has cooled down in the last week, 20s up to the north. Look at all the 30s. Flirting with freezing still here into the Boston area, 29 in Salt Lake City as well as 34 degrees over in Seattle, Portland 32 by the way. You guys can see a little bit of freezing rain in that area, as well. Big picture then for tomorrow shows you it's starting to dry up in the southeast. Our system here then moves up toward the mid- Atlantic with snow in the interior parts of the northeast. You can see our storms sticking with us throughout your Sunday across much of the west. Watch this to pull out by Monday. It looks like a much better day. The weekend of course when everybody wants to be outside --

WHITFIELD: Right, I know. Thanks so much Jacqui. Appreciate that. Let's bring in Josh into the picture to talk about some of the hot video images of the week or weekend.

LEVS: Fred, one of the biggest stars, I'm not kidding, of the Internet this week is right here. What he does, you're not going to believe until you hear it.

(COMMERCIAL BREAK)

WHITFIELD: I'm sure there was a story you saw on any one of my shows that makes you want to comment. We made it easy for to you do so. Go to my blog at CNN.com/fredricka. You can go to my facebook page and there is another way, you can pick up the phone and call 877-742-5760. Some of your comments will actually be used on air.

Another look at the top stories right now. Tiger Woods is stepping away from golf for an indefinite amount of time to work on his personal problems. That word in a statement on his Website. The first time Woods admits that he has cheated on his wife, and in the statement he says he needs to focus on being a better father and husband. He's asking for forgiveness.

In Massachusetts, a stunning murder case. Ninety eight year-old Laura Lundquist is accused of killing her 100-year-old roommate Elizabeth Barrow in a nursing home. Barrow was found with a plastic shopping bag tied around her head. She had been strangled. Police say Lundquist had complained that a table near Barrow's bed has blocked her path to the bathroom. Lundquist will be tested to see if she is competent to stand trial.

President Barack Obama says last month's jobless numbers are a sign the economy is growing again. November's unemployment rate dropped slightly to 10 percent. In his weekly radio and Internet address, Mr. Obama says now is the time to address the causes of the recession, to make sure that it doesn't happen again.

The Internet is crawling with viral videos and every week we see a lot of them right here on CNN. Our Josh Levs has this week's best ones in the viral video rewind.

LEVS: I get to have some fun. You know that song called "I'm Yours," it's on the radio all the time.

WHITFIELD: No, sorry.

LEVS: Take a listen to this, first.

(UNIDENTIFIED MALE): I'll be giving it my best nothing is going to stop me but divine intervention

WHITFIELD: Oh yes, OK.

LEVS: Well -

WHITFIELD: The bell has rung.

LEVS: It caught on. A lot of people learned how to play it. We haven't seen anyone who nails it quite like this little guy. Take a look.

He might not know the words, but he nails it.

WHITFIELD: I'm going to guess. Is he 5?

LEVS: I think 4 or 5. He has been seen millions of times. Simon Cowell might dis him, but he's charming.

He's got the percussion down. This has exploded all over the web. Millions of people watched it and passed it around this week. A lot of the popular videos this week, musical themes. We have heard about Dubai, amazing construction projects in the gulf. The ones they are having trouble paying for right now. One reason might be the enormous expense of its elaborate fountain system which is choreographed to a song "Time to Say Good-bye."

This massive fountain is in the lake at the entrance of the Dubai Mall. The nighttime experience uses 6,600 lights, 25 projectors, fully illuminated and is visible from space as possibly the brightest spot on the planet.

How do you follow Middle East royalty when talking about music? The queen, of course. Specifically the Muppets. I'm not kidding Fred, used on the web this week, this spectacular cover of Queen Bomee wraps. I

WHITFIELD: I can't wait.

LEVS: I can't remember a cover I liked this much. We are looking at some that follow the best; this was the number one as of yesterday. It's racked up well over 10 billion hits.

WHITFIELD: Everybody loves the Muppets.

LEVS: You've got to love the Muppets. They know what they are doing musically. Is that animal? He's got it down. This is beyond gold, silver, and platinum. They need a new category.

WHITFIELD: The design is to entice the kids, but they hook the adults.

LEVS: Even back in the day. I'm sure adults were loving it when we were kids. Even the Bananas have their part there.

WHITFIELD: I love it. LEVS: Finally, the funniest clip of the week it is from a DVD. That's produced by Bill Dan's Outdoors. Something is bound to go wrong on occasion.

This is the beginning.

WHITFIELD: Here is a safety chain idea. Oh, man.

LEVS: That is where he gets his fishing rod stuck inside the truck. This one's good. Trying to go forward and boom.

(UNIDENTIFIED MALE): Pull out! Pull out!

WHITFIELD: Are these real bloopers or were they kind of staged?

LEVS: They are real. He's had a show for years. They took the bloopers and included it on the DVD of his show.

WHITFIELD: I'm sure he loves that.

LEVS: All of a sudden he's way more famous than he ever was. According to his Website, the DVD goes for more than an hour. If I fall down it's a tragedy, if you fall down it's hilarious. You can tell what's going to happen here. Apparently the boat was not supposed to go in the direction there. He gets stuck with that electrical device. Let's let it go until he falls in. The show is eating up the publicity. It's making the DVD sell. There he goes after it.

WHITFIELD: He's now cashing in a little bit. It's all in fun.

LEVS: It's all in fun. This is the thing he's laughing at, too.

WHITFIELD: Laughing all the way to the bank.

LEVS: I know. You know the power of the viral video. There you go. It keeps going and going. I don't get tired of it.

WHITFIELD: Do you think you have an hour's worth of bloopers?

LEVS: Me. Oh, yeah. They are just not that amusing.

WHITFIELD: If only you could cash on them, too.

LEVS: Here is how you can send us your favorite viral videos. Let us know what you like, you love. You might find it featured here. We'll look more into ukalay boy.

WHITFIELD: That boy is good. I like getting through the lyrics.

LEVS: I think that's my new favorite version of the song.

WHITFIELD: Everyone does that on some song, no matter what age they are. Josh, appreciate it. Thank you.

Let's talk about health care coming up. Did you really think the debate over the public option was over? Not on your life. What happens next straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: All right, the White House says it is working to close a loophole in the Senate health care bill that would allow caps on annual insurance benefits. The loophole was put in the measure behind closed doors by majority leader Harry Reid and other top Democrats. They say it's a necessary compromise to keep insurance companies from hiking premiums.

Another bone of contention between Democrats, the public option. The House health care bill includes it, but right now, the Senate version does not. Reporting from Washington, CNN deputy political director, Paul Steinhauser.

(BEGIN VIDEOTAPE)

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Fred, the battle over health care reform take as backseat on Capitol Hill, this weekend, but the action is far from over.

(voice-over): Senate leaders are waiting for the price tag on a new agreement and that agreement would drop the public option. Republicans and even some Democrats are opposed to a government-run health care plan that would compete with private insurance. So instead, 10 Senate Democrats, this past week, came up with a different plan, which would allow private insurance companies to offer nonprofit coverage run by the government. And they called for expanding Medicare by allowing people as young as 55 to buy into the government- run system.

(on camera): Once the non-partisan congressional budget office prices the plan, the Senate could vote as early as next week on a final health care bill. Here's the problem, though. Let's say that bill passes, it would have to be merged way House bill that's already passed. And that House bill has a public option. But, as our senior congressional correspondent, Dana Bash, points out, House Speaker Nancy Pelosi now seems to be opening the door to a final bill that doesn't have a public option.

Will all of this get done by the end of the year? It's possible, but doubtful. What's much more likely is that any final health care reform bill that comes out of Congress would reach the president's desk early next year.

So, what do Americans think about that Senate bill? Eighty-five percent of people we questioned in a recent CNN/Opinion Research Corporation national survey say they think their taxes would go up if the bill became law, and nearly eight in 10 say the bill would increase the budget deficit. That's a problem for Democrats and those are some of the arguments Republicans are using to try to defeat the bill.

Our survey also indicates Americans are split on which party is more trustworthy when it comes to health care reform. Our poll was taken the news of the deal to drop the public option -- Fred. (END VIDEOTAPE)

WHITFIELD: All right, thanks so much, Paul. Well, harsh words for Wall Street from President Barack Obama today in his weekly radio and internet address. The president singled out financial institutions for causing much of the recession, and says it's time to address those causes and make sure they don't happen again.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), UNITED STATES PRESIDENT: Yesterday, the House passed comprehensive reform legislation that incorporates many of the essential changes we need. And the Senate banking committee is working on its own package of reforms. I urge both Houses to act as quickly as possible to pass real reform that restores free and fair markets in which recklessness and greed are thwarted and hard work, responsibility and competion are rewarded, reforms that work for businesses, investors and consumers alike. That's how we'll keep our economy and our institutions strong.

(END VIDEO CLIP)

WHITFIELD: Mr. Obama is wasting no time putting his words to action. He has scheduled a meeting with a dozen bank CEOs at the White House ON Monday. He wants them to quit sitting on money and step up lending to small businesses. The president tells this weekend's "60 minutes" he is angry with "fat cat bankers." The industry propped up by billions of taxpayer dollars, spent millions fighting the financial reforms just passed by the House.

And now, this week's "Turnaround." CNN's senior correspondent Allan Chernoff takes us to an old Connecticut restaurant that learned some new tricks to stay in business.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN NEWS CORRESPONDENT: How long has this place been around, 400 year?

(voice-over): Shawn Daigle thought he had a sure thing. Avon Old Farms Inn was a restaurant with a long history and a booming business. Long after he bought the Connecticut eatery in 2005, the sure thing started to look a bit shaky. Tragedy struck. An 18-vehicle accident killing four and injuring 19 just outside his door.

SHAWN DAIGLE, OWNER, AVON OLD FARMS INN: It was like a black cloud that was over this business.

CHERNOFF: Soon afterwards, a second accident at the same site prompted a state construction of a 700-foot truck ramp, almost on top of Daigle's restaurant.

DAIGLE: You know, always staying positive. You have to stay positive, you know, with your employees, with the town. No one wants to hear anyone complaining. You know, there's a lot of things to complain about, but frankly, it doesn't go away. CHERNOFF: Couple the unattractive ramp with the down turn in the economy, and business dropped off nearly 60 percent. Suddenly, the old inn was bleeding red ink.

DAIGLE: Going into a tough economy not at the peak of your game, the downturned economy actually impacts you significantly more.

CHERNOFF: So, Daigle fought back, scaling back his high-priced, fine ding menu in favor of lower-priced comfort food.

DAIGLE: Fine dining has a unique stigma that's associated with it. It's an honor that we're known as fine dining, but you know, we want to hit a different price point and get you good food.

CHERNOFF: And getting customers in the door is key. The restaurant lowered corporate package rates and started hiring local bands on weekends.

DAIGLE: If you lower your price point and your cost is in line, you need more volume, you need more people coming in.

UNIDENTIFIED MALE: Life is good.

CHERNOFF: And they have started coming in. Business tripled from its low.

DAIGLE: There is a high expectation, again, having a 253-year-old business and a reputation.

CHERNOFF: A reputation many customers haven't forgotten.

Allan Chernoff, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: Color barriers broken down on film as Disney casts its first black princess.

(COMMERCIAL BREAK)

WHITFIELD: A look at the top stories, right now. Troubled golfer Tiger Woods says he is taking time away from the sport to repair his personal life. Meantime, one of Woods' major sponsors, Gillette is actually phasing out Woods' image in ads. Gillette is the first sponsor to publically distance itself from the world's No. 1 golfer and now Kellogg's, as well, is also pulling back from advertisement involving Tiger Woods.

All right, Former British Prime Minister Tony Blair is strongly defending the decision to go to war against Iraq in a forthcoming BBC interview. Blair says it would have been right to invade even if it was known at the time that Iraq had no weapons of mass destruction. Of course, allied forces never found any chemical, biological or nuclear weapons in Iraq. Blair faces a British inquiry into the war next year. Houston, Texas, voters are deciding whether this woman will become the city's first openly gay mayor. Today's run-off pit city comptroller Annise Parker against former city attorney Gene Locke. A Rice University poll released this week put Parker well ahead of Locke.

All right, Disney is diversifying its royal lineup. After years of featuring most princesses that kind of look the same in its animated blockbusters, it is now breaking new ground and making history with its first black princess. Here is CNN entertainment correspondent Kareen Wynter.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: One more time. It don't matter what you look like. It don't matter what you look like.

KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: Or does it? Check out Disney's new leading lady, Tiana.

UNIDENTIFIED MALE: I suppose you want a kiss?

WYNTER: She's the studio's first black princess, and many are taking notice, even students at Los Angeles's Clover Avenue Elementary.

WYNTER (on camera): Did you see anything at all that was different, that stood out from perhaps other Disney movies?

LEAH, 3RD GRADE STUDENT: Tiana was African-American?

WYNTER (voice-over): The third and fourth grader has no problems sharing their thoughts about Disney's new animation film, "The Princess and the Frog" which they screened inside their classroom.

KATIE, 3RD GRADE STUDENT: There's a first time for everything, and I think this was a really good start. I think it's a good diversity.

WYNTER: When it comes to diversity, Disney's come a long way since "Snow White" in the 1930s. Since then, there have been just three ethnic princesses, the Native American, Pocahontas, Chinese, Mulan, and Arabic Jasmine from Aladdin. The question is, in the fantastic world of fairytale...

WYNTER (on camera): Does skin color really matter?

DIEGO, 3RD GRADE STUDENT: It kind of isn't fair because they should have had one a little earlier. They should have had one earlier. It took them forever to figure out, oh, maybe we should have an African- American princess.

WYNTER (voice-over): One of the film's own animators agrees.

ERIC GOLDBERG, SUPERVISING ANIMATOR: It's about time. I think it's absolutely about time.

WYNTER (on camera): What took so long since the introduction of Snow White? GOLDBERG: I don't know, I'll honest with you. We were there with different ethnicities before this film. Maybe we needed to do those other films before we could actually do Tiana.

WYNTER: And like some princesses before her, Eric Goldberg says Tiana is already a marketing machine.

GOLDBERG: Everybody is buying African-American Princess Tiana dolls. You know, it doesn't matter what their background is. It's like this is a great, popular character.

WYNTER: Some students note the princess's popularity shouldn't be lost on the film, that there's a deeper message here.

ROMAN, 3RD GRADE STUDENT: People that want to be princesses but their skin color wasn't white, they say, well, if she can do it, then I'm sure I can do it.

UNIDENTIFIED FEMALE: Tiana is actually inspiring them.

FROG: What's important is what's under the skin.

Kareem Wynter, CNN, Hollywood.

(END VIDEOTAPE)

WHITFIELD: "The Princess and the Frog" debuts in theaters across the country this weekend. And many little girls are actually making the most of this event dressing up like princesses while they go to watch the movie. We'll hear what some of them actually thought about the film and its new star in a live interview, tomorrow 4:00 p.m. Eastern. We'll be joined by many little princesses and princes, as well.

All right, fashion trends of 2009, plenty of people had an impact, but one person in particular really stood out for her fashion choices. A look how the first lady, right there, is setting styles and trends.

(COMMERCIAL BREAK)

WHITFIELD: All right, fashion trends of 2009. Plenty of people had an impact, but one person really stood out for her fashion choices. Hint, right there. And her influence on what women really want to buy, as well, Michelle Obama. Joining us to talk about the first lady's fashion impact, "InStyle" senior editor, Isabel Gonzalez Whitaker.

Good to see you.

ISABEL GONZALEZ WHITAKER, INSTYLE MAGAZINE: Hello, thank you. Good afternoon.

WHITFIELD: So, I guess if there was one particular fashion item that the first lady made popular or something she influenced in a very big way in fashion, what might they be? WHITAKER: Well, certainly she has some signature elements that she's brought to many looks. You can't help but think about First Lady Michelle Obama and think about showing off your arms, for example.

She posed in the White House portrait in a Michael Kors sleeveless sheath. She's also known to wear cardigans from time to time. Certainly J. Crew, she loves to introduce designers that we're all familiar with, but also brands and companies that we're familiar with as well. And she wears those cardigans sometimes fitted, belted, certainly. And, of course, the sheath, which she has also reinvigorated with bold colors and vibrant prints.

WHITFIELD: So, do you think that she, whether it be by default or was it her intention to, perhaps, help some American designers become popular? You mentioned Michael Kors, J. Crew, Jason Wu got a lot of press, he was kind of a, you know, a designer a lot of people didn't know about until she wore that dress on inauguration night. What did she do for these American designers?

WHITAKER: Well, certainly, it's a wonderful, patriotic way to recognize the American fashion industry and, in fact, in Oslo, just recently, she was wearing Calvin Klein collection. So, yeah, it's a deliberate statement on her behalf, and it's a smart one, as well. And then, of course, you have to remember that American fashion and American designers also speak to a very modern almost sportswear inspired sensibility and that's really what she's about. She's about being chic, but also being comfortable.

But, of course, you know, she also does embrace European designers. At the G-20 Summit she wore Moschino and also in Oslo she wore Nina Ricci. But yes, she has done a tremendous service on behalf of American designerse and also the emerging ones, as you said, Jason Wu, Tacoon (PH).

WHITFIELD: So, you think those choices, you know, Moschino and Nina Ricci, very conscientious about when she decided to depart from the American designer when she was kind of in an international arena.

WHITAKER: Sure. Well, and even look at the state dinner just recently. She chose an Indian-born, U.S.-based designer, Naeem Khan , to wear. So, there is definitely, perhaps, you know, obviously we don't know, a strategic intent with what she chooses to wear.

WHITFIELD: And I kind of have heard in many arenas that the working woman really identifies with her because she was very much so, a working woman, and that she may have influenced not just those who are in the work arena but, perhaps, those in a more casual setting, as well setting, as well, those who work in or close to the home. You mentioned sportswear. How did she influence women in that way?

WHITAKER: Well, she shows that you can be glamorous, you can be chic, but you can be comfortable. She makes very wise decisions. You know, a cardigan, for example, is -- can be as tailored and polished as a jacket, but it certainly is far more comfortable on a day-to-day -- and there we've got some great images of her wearing some cardigans. You know, there's also the way that she enhances her looks with accessories that we all own. She makes this a very relatable experience. We all stare at our closets in the morning and we're like, OK, I bought that belt, what am I going to do with it? Well, here is a great, inspired way to wear your belt on top of your cardigan and it's also very figure flattering. She's very aware of her silhouette. She's got a beautiful, athletic frame, and she knows how to accentuate the positive. And that's also very relatable to the modern American woman.

WHITFIELD: I think a lot of folks felt it was relatable, too, that the first lady was willing to repeat certain things. You mentioned belts. There is a belt she wears a lot times and I think even the president called it her kind of star wars belt or something to that effect. So, that kind of really brought her down to earth with the rest of us who repeat items and a lot of people think first ladies wear it once and then kind of toss it.

WHITAKER: Exactly. She's essentially one of us and that's very inspiring.

WHITFIELD: All right. Isabel Gonzalez Whitaker of "InStyle" magazine, thanks so much. Appreciate it.

WHITAKER: Thank you.

WHITFIELD: All right. Small business owners need loans to keep those doors open. So, what do you think of the president's efforts to make those loans happen? That's coming up.

(COMMERCIAL BREAK)

WHITFIELD: Much more on the Tiger Woods scandal. In the next hour I'll speak with Connell Barrett of "Golf" magazine about the impact of Woods' latest move on the sport. That's in the 4:00 Eastern hour, only on CNN.

All right, small businesses across America are teetering on failure. President Obama's new plan to reinvest unused TARP funds promises to help them. But, some critics question if it's the right kind of help. CNN's Lisa Sylvester profiles a candy maker who is running out of time.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT, (voice over): Maria De Lourdes Sobrino is the owner of Lulu's Desserts in Anaheim, California. She's been in business for 28 years. But the company may be forced to close next month, 45 employs losing their jobs, unless Sobrino was able to get a new business loan.

MARIA DE LOURDES SOBRINO, OWNER, LULU'S DESSERT: I don't hear anybody receiving loans. I don't see myself receiving any loans. So, it is urgent. It is urgent for the president to do something about this.

SYLVESTER: President Obama wants to help small businesses, like Sobrino's, get loans to avoid mass layoffs and survive the recession. The White House is proposing eliminating capital gains taxes on small business investment, extending write-offs to motivate business expansion, and creating new tax incentives for additional hiring. Congressional Democrats say President Obama is on the right course.

REP. CHRIS VAN HOLLEN (D), MARYLAND: He inherited an economy that was in total free-fall and now the GDP numbers have improved. They're in positive territory. And the unemployment numbers are improving. But no one will be satisfied until we fully turn the corner.

SYLVESTER: Mr. Obama's job recovery plan would rely, in large part, on the estimated $200 billion in unused funds from the TARP program, originally set up to help struggling banks. Republican critics question how much it will ultimately cost taxpayers to spend our way out of the recession. Senator John Thune says Congress approved billions to stimulate the economy, yet the job losses keep stacking up.

SEN JOHN THUNE (R), SOUTH DAKOTA: Earlier this year, the president and congressional Democrats pushed a nearly $800 billion stimulus bill that would, as they claim, keep unemployment under 8 percent. We all know that unemployment is now 10 percent.

SYLVESTER (on camera): Maria De Lourdes Sobrino, the businesswoman we profiled, she needs a loan by next month to avoid cutting 45 jobs. She said of President Obama's plan, that it's a good intention, but the question is how the administration executes the plan and how quickly. Many of the ideas, tax write-offs and tax incentives, that's not immediate help. What she says would really help her is more pressure on the banks to ease commercial credit.

Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE)