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Oscar Nominations Announced; President Bush Prepares For Prime- Time Address; How Will Bill Clinton Affect Hillary's Campaign?

Aired January 23, 2007 - 15:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Hello once again. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta.
DON LEMON, CNN ANCHOR: And I'm Don Lemon.

Cheaper health care? It's part of the president's State of the Union plan, but does it penalize Americans who already have insurance?

PHILLIPS: A disturbing discovery in the war on terror -- is al Qaeda in Iraq training a new group of terrorists for attacks in the U.S.?

LEMON: And the nods are out for Oscar. Who is in? Who is out? Who was shut out in Hollywood?

You're live right here in the CNN NEWSROOM.

PHILLIPS: President Bush is getting ready for prime time. His sixth State of the Union address, now just six hours away, will be his first before a Congress controlled by Democrats. And though he is expected to focus on domestic issues, Iraq looms large.

CNN White House correspondent Ed Henry at his post with a preview.

Ed, what are we hearing about the biggest issues in the speech tonight?

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, good afternoon, Kyra.

We are certainly hearing from White House aides that Iraq will be a significant -- significant portion of this speech. Certainly, it's the elephant in the room. But, as you know, State of the Unions tend to focus on domestic policy. The president certainly pulled down his approval ratings by Iraq, maybe shifting the focus just ever so slightly.

Energy is supposed to really be one of the biggest domestic issues. As CNN first reported this morning, the president is going to unveil a 20/10 plan, slashing gasoline consumption -- consumption by 20 percent the next 10 years. To accomplish that, he wants to push Congress to give him the power to change and reform the so-called CAFE standards, the fuel-efficiency and economy standards for cars, just as he can do on light trucks. Secondly, the president wants a major push on alternative and renewable fuels. We're told $1.6 billion to fund research, $2 billion for ethanol plants. At the end of all this, White House aides claim that the energy savings will be the equivalent of taking 26 million automobiles off the road.

And they also that this -- the president will put this in the grander context of climate change. That's important. This will be the first State of the Union where this president, a Republican, has ever addressed the issue of climate change, but also important to note, the president will not call for caps on CO2 emissions, so not taking a concrete step that environmentalists say is critical to actually changing this and turning global warming around.

The bottom line, though, really, is, will this president be able to get this energy change, the health care change you mentioned, making health benefits a standard tax deduction? Can he get any of this through Congress? That's a major question mark, the first State of the Union address he will be delivering to a Democratic Congress.

And let's face it. He is also right now losing support among fellow Republicans, not just Democrats, on that most critical issue of all, Iraq -- Kyra.

PHILLIPS: Now, just listening to the subjects that will be addressed, I mean, realistically, how is this year's State of the Union going to be different from what we heard last year?

HENRY: Well, what they're saying is, there will not be a laundry list, where they deal with dozens and dozens of policy initiatives. The president realizes he is just about a lame duck, almost a lame duck, however you want to classify it. He's only got a couple more years in office.

He is looking, at least with one eye, towards the legacy. So, he wants to pick off a handful of issues. He's going to make it more thematic, maybe a little bit shorter than last year. And, in fact, one issue that will not be addressed at all, we were just told a few moments ago by White House aides, is Hurricane Katrina. He is not going to talk about Katrina recovery.

As just he focuses on this handful of issues, he is going to leave out Katrina. I think, again, the White House will say, well, that's because he is just zeroing in on a few issues. But you can bet Democrats will make an issue out of that, saying that, a year-and-a- half later, Katrina recovery still lagging behind. And they're going to wonder why he is not mentioning it -- Kyra.

PHILLIPS: Ed Henry live at the White House -- thanks, Ed.

HENRY: Thank you.

PHILLIPS: The best political team on television has got tonight's State of the Union coverage. Things kick off at 7:00 Eastern a special two-hour edition of "THE SIT ROOM" with Wolf. And the president's address begins at 9:00 Eastern, followed by the Democratic response. Then, we respond with a special "ANDERSON COOPER 360" at 10:30 Eastern, and, at midnight, a little late-night action with "LARRY KING LIVE."

LEMON: Well, the way ahead will be neither quick nor easy. Lieutenant -- Lieutenant General David Petraeus telling it like it is to senators who will decide whether he's the one to lead U.S. troops in Iraq. Petraeus is defending the president's unpopular plan for more than 21,000 additional troops, but he also is asking for patience.

(BEGIN VIDEO CLIP)

LIEUTENANT GENERAL DAVID PETRAEUS, U.S. ARMY: The situation in Iraq is dire. The stakes are high. There are no easy choices. The way ahead will be very hard.

Progress will require determination and difficult U.S. and Iraqi actions, especially the latter, as, ultimately, the outcome will be determined by the Iraqis. But hard is not hopeless.

(END VIDEO CLIP)

LEMON: Well, despite the skepticism and tough questions, Petraeus is expected to be confirmed to the new post easily, and get his fourth star in the process.

Well, you have heard them before, U.S. and Iraqi plans to clean up Baghdad. You have also heard many times that this time will be different.

Well, CNN's Michael Holmes reports, this time really might be.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT (voice-over): The new security plan is the talk of the town, that plan to clear, hold, and rebuild.

The theory is, U.S. and Iraqi troops will clear problem areas, and so-called joint security stations will be set up, U.S. soldiers, alongside Iraqi troops and police, a unified chain of command working together inside neighborhoods, and not leaving.

An as yet undefined rebuilding program for those areas would then begin. In all, Baghdad will fall into nine security zones -- each commander, an Iraqi, reporting to the prime minister. Some suburbs will be walled off, one way in and out. Even parts of Baghdad's perimeter could be protected by huge earthen berms.

As the operation continue, Iraqis would take control of security, Americans playing purely support roles. It's all going to take a lot of boots on the ground -- 22,000 extra troops promised by President Bush, thousands more promised by the Iraqi government.

The joint security stations, one being set up here, are the key, not least because of widespread allegations that Iraqi security forces are infiltrated by sectarian militia.

BAYAN JABR SOLAGH, IRAQI FINANCE MINISTER, (through translator): Based on my experience in the interior ministry, if this force is made up, for instance, exclusively of the police, then X segment of the population may be worried. And, if it was exclusively made up of the army, then a Y sect may has fears. And, if it's only made up of the Americans, there are fears. But, if there is real presence by all these three forces, then, one will watch over the other. This sends a comforting message to citizens.

M. HOLMES: Many questions remain, chief among them, will the Iraqi government interfere to help its supporters, as it has done before? U.S. officials say, interference will not be tolerated.

ZALMAY KHALILZAD, U.S. AMBASSADOR TO IRAQ: The military commanders will have freedom of action and ability to do what's needed, without political interference or micromanagement.

M. HOLMES: What will the insurgent response be to this plan? That's a tricky question. Some believe the concentration of especially U.S. forces in suburbs will provide an irresistible target for insurgents.

(on camera): Others believe, some insurgent groups will lay low, bide their time, not confront coalition forces, especially Americans.

As one Iraqi put it, Arabs are a patient people. Five years, 10 years, they will wait. The problem is, the Iraqi and U.S. governments don't have that kind of time.

Michael Holmes, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Well, in Iraq, it's tough to tell the difference between friends and enemies. That's increasingly the case in Washington, too, with more and more Republicans shooting down President Bush's Iraq plans.

For now, House Minority Leader John Boehner says that he still supports a troop increase on certain conditions.

Boehner spoke to CNN congressional correspondent Andrea Koppel today.

She joins us with the details.

How did it go, Andrea?

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Pretty well, Kyra.

In his interview with CNN, Leader Boehner, for the first time, put the White House on notice, saying that the U.S. should know within the next two to three months whether or not the surge is going to work in Iraq. He also called the surge, which he supports, the last, best good chance to succeed.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), HOUSE MINORITY LEADER: Well, no one is happy about how the war in Iraq is going. Clearly, the president is not happy. That's why he has offered a new strategy for securing Baghdad.

A lot of the other strategies have succeeded elsewhere around Iraq. But the problem has -- has been in Baghdad. I think the American people want us to win in Iraq. I think the president's plan has a chance of being successful.

KOPPEL: How long can you and your membership give the president and give the Iraqi military, before you say, you know what, you're not doing your job?

BOEHNER: I think it will be rather clear in the next 60 to 90 days as to whether this plan is going to work. And, again, that's why we need to have close oversight, so that we just don't look up 60 or 90 days from now and realize that -- that this plan is not working. We need to know, as we -- as we're -- we move through these benchmarks, that the Iraqis are doing what they have to do.

KOPPEL: You spent a weekend at Camp David recently, along with other Republican leaders, and had a lot of one-on-one time with President Bush to talk about Iraq. What did you tell the president?

BOEHNER: Well, I told -- I told the president and others in his administration that there's skepticism on the Hill as to whether this plan will work.

There is skepticism about whether the Iraqis really will step up and bring their military into Iraq, whether they will do the other parts of this plan that they have committed to. And that's -- the skepticism is built around the fact that so much of the plan is dependent on the Iraqis doing their part.

(END VIDEO CLIP)

KOPPEL: Now, an aide to Boehner told me that the leader's remarks were simply a gut feeling that he had. They were personal feelings that he had.

But, Kyra, it gives you a window, when you consider the pressure that the Republican Party is under, especially Leader Boehner over here on the House side, when you consider that it comes just one day after he and some Republicans put the White House on notice that they wanted a report every 30 days on the status of what was happening in Iraq, on specific benchmarks, for the first time in writing, saying that they wanted this to come from the White House, from the Bush administration, and also one day, Kyra, after Leader Boehner said many in his party, including himself, are skeptical that this policy, that this surge is going to work -- Kyra. PHILLIPS: All right, Andrea Koppel, sure appreciate it.

And, on CNN tomorrow, after the president's speech, Vice President Dick Cheney goes into "THE SITUATION ROOM" with Wolf Blitzer. And it's -- it's an exclusive interview, only in "THE SIT ROOM." That's tomorrow at 7:00 p.m. Eastern.

LEMON: The president talks about the state of the union tonight, but we're looking at the state of his presidency -- coming up, what the latest poll numbers say.

PHILLIPS: And behind the scenes or out in front? What is a husband's place in his wife's campaign? A new chapter in the Clinton saga -- straight ahead from the NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Well, President Bush will face an unfriendly majority on Capitol Hill tonight. And that is not the only place. New poll numbers show more than half the country has written off his presidency as a failure.

CNN -- CNN political analyst Bill Schneider joins me now from Washington.

Bill, can the president expect any kind of bounce to help from this big speech tonight?

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Well, he certainly has to hope for one, because his ratings are lower than any president has been going into his next-to-last year in office since at least the last 50 years.

You look at the ratings of President Bush in each of his last six State of the Union messages, back to 2002, when, of course, he was soaring in popularity, after 9/11, they have been going steadily downhill. He is at 34 percent, the lowest rating ever for a president going into his next-to-last year.

LEMON: Wow. OK.

So, let's talk about now the war on terror, which is probably a factor in all this. It has been the president's top issue since 9/11. How do Americans -- that's an obvious question -- think the war is going? What do the poll numbers show on that?

SCHNEIDER: Yes.

Americans don't think the war on terror is going particularly well. That's a spillover effect from the war in Iraq. There's a lot of anger over the president's policy. And when asked who is winning the war on terrorism, only 28 percent say the United States and its allies are winning the larger war on terror. That's the lowest number we have ever seen on that question, which started to be asked, of course, after 9/11.

As we just saw, a majority say neither side is winning the war on terror.

LEMON: You know, much has been made about Iran, and even the president. I'm going to ask you about that. But have you -- you do this -- you have been doing this for a while, Bill. Have you seen numbers like this before, Bill, going into...

SCHNEIDER: State of the Union?

LEMON: Yes.

SCHNEIDER: Well, let's -- let me put it this way. I go back to the Carter era and the Nixon era. And those were pretty bad.

But I haven't seen numbers like this in quite a long time. And, of course, that was a very serious crisis, a terrible inflation crisis, hostages in the '70s...

LEMON: Yes.

SCHNEIDER: ... Watergate. This is approaching that level of discontent.

LEMON: Yes. And people are concerned, again, about a possible -- some allusion maybe to a war with Iran.

The president has made it clear that he is not happy with Iran's pursuit of nuclear technology and has accused that country of fueling insurgency in Iraq. Now, do the polls show that Americans would support military action against Iran?

SCHNEIDER: No. They show just the opposite.

Two-thirds of Americans say they would oppose any military action against Iran. And a lot of people are very anxious, the president's critics and Democrats, certainly, very anxious that, if his talk is too bellicose about Iran, that he may be setting up another war. That's what they keep worrying about. And they are very anxious about that.

What that poll shows is, the American public is very much opposed to any additional military action.

LEMON: All right, let's talk about trust, because I know there's a poll that talks about trust. Do the American people trust the president? Do they?

SCHNEIDER: Well, not entirely.

As you can see, "Do you trust Bush more or less than other presidents or about the same?" A majority say they trust him less than other presidents in the past. Now, this question was then asked specifically comparing Bush and President Bill Clinton. And, in that case, 51 percent say they trust him less than they trusted what Bill Clinton said when he was in office.

You may remember that, when Bush was running in 2000, he ran, in part, on the character issue. He said: When I put my hand on the Bible, I will swear not only to uphold the laws of the land, but also the honor and integrity of that office.

And that helped him get elected. Character has always been strong -- a strong suit for him. But Americans really no longer trust this president. They don't believe everything he says. His credibility is at an all-time low.

LEMON: And you're right. That was a big deal coming off the -- the Clinton administration...

SCHNEIDER: Exactly.

LEMON: ... with all that had happened with that.

He has got an uphill battle tonight, doesn't he?

SCHNEIDER: Yes, he does.

He is speaking to a skeptical audience, not just in the Congress, but also -- which is, of course, now controlled by Democrats -- but also in the public at large, those who will be watching that speech. Many of them are very skeptical of his policies. And they are very angry that they sent a very clear message in November about the war in Iraq, and the president chose to disdain, in their view, what they said, and escalate the war.

LEMON: Bill Schneider, always a pleasure. Always appreciate your analysis.

Bill Schneider is, of course, part of the best political team on television. We have got tonight's State of the Union coverage for you. Things kick off at 7:00 Eastern with a special two-hour edition of "THE SITUATION ROOM" with Wolf Blitzer. The president's address begins at 9:00 Eastern, followed by the Democratic response. Then, we respond with a special "ANDERSON COOPER 360" at 10:30 Eastern, and, then, at midnight, a late-night "LARRY KING LIVE." You don't want to miss that one, of course, only on CNN.

And, tomorrow morning, we get an early start on analysis, reaction and a lot more. CNN's "AMERICAN MORNING" hits the airwaves at a special time. It's 5:00 a.m. Eastern.

PHILLIPS: Last year, President Bush promised action to help America break its addiction to oil. Our Ali Velshi looks at what happened or didn't happen on that front -- just ahead in the NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: The stress of finding a job weighs on many college seniors at this time of the year. But it seems the class of '07 might not have to worry so much.

Susan Lisovicz at the New York Stock Exchange with all the details.

Boy, do I remember those days...

(LAUGHTER)

SUSAN LISOVICZ, CNN CORRESPONDENT: Oh, yes.

PHILLIPS: ... driving across country, looking for that first job, Susan.

(LAUGHTER)

LISOVICZ: Getting that door slammed in your face.

(LAUGHTER)

PHILLIPS: That's right.

LISOVICZ: Oh, yeah.

PHILLIPS: I have all the rejection letters, hundreds of them.

LISOVICZ: I can -- I can relate to that, sister.

(LAUGHTER)

LISOVICZ: Well, this year's grads could be getting plenty of job offers. The National Association of Colleges and Employers says '07 is shaping up to be one of the strongest years for college recruiting.

Employers plan to hire 17 percent more graduates this year than they got from the class of 2006. Much of that can be attributed to growing business demands and strong corporate profits. You have certainly heard about them here.

But employers could also be preparing for the retirement of millions of baby boomers. "The Wall Street Journal" says, at New York University, close to 40 percent of college seniors already have job offers. And, at the University of Chicago, 119 companies have already been on campus to conduct interviews. That's up from 93 last year.

And at a November job fair in Boston, employers were actually turned away, because there just wasn't enough room.

Wasn't -- wasn't our case, was it, Kyra?

(LAUGHTER)

PHILLIPS: No, it wasn't. It was a matter of just getting that first crack at it, that lucky break.

LISOVICZ: Not taking no for an answer.

PHILLIPS: True, and driving all those news directors crazy.

(LAUGHTER)

PHILLIPS: Well, which majors are recruiting -- or are recruiters going after right now?

LISOVICZ: Not journalism, Kyra.

(LAUGHTER)

LISOVICZ: I say that every year.

At the undergrad level, business, engineering, and computer- related majors tend to top the list of most in-demand degrees. And this year is no exception -- the head of the list, accounting majors. That's good news for people just starting the careers.

And there's good news for those looking at the end of their careers, too. Pension plans are on more solid footing. This follows years of underfunding, which has forced the government to jump in and pick up the slack. A new study from Towers Perrin, which is a benefits consultant, says that, for the first time in six years, Fortune 100 companies, on average, have more than enough money to cover their pension obligations.

And one reason why is, the market has improved. The stock market has improved.

And it's improved certainly today. So have oil prices for the energy sector, at least for energy companies, soaring nearly $2.50 just today alone, topping $55 a barrel, retracing much of the steep price slide from earlier this month. The increase comes as cold weather finally hits here in the Northeast, the world's biggest heating oil market.

And, this afternoon, the U.S. energy secretary said the government plans to increase the nation's Strategic Petroleum Reserve. That's giving the energy sector a big boost today -- shares of BP, Chevron, Royal Dutch Shell, and Dow component ExxonMobil all up about 2 percent -- not as big gains for overall stock -- the stock market, but certainly an improvement from yesterday, the Dow right now up 58 points, or half-a-percent. The Nasdaq is up 2.

And that's the latest from Wall Street. I will be back in about 30 minutes for the closing bell.

You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Let's get straight -- straight to the newsroom now, T.J. Holmes working details on a developing story -- T.J.

T.J. HOLMES, CNN CORRESPONDENT: There has been an arrest, been several arrests now in a cop killing in San Francisco.

The thing here is that that cop killing happened in 1971, almost some 36 years ago. But police are saying today that, in fact, they have arrested eight people in connection with an attack on a San Francisco police department, where a 51-year-old sergeant John Young was killed on August the 29th of 1971. You're looking at video out of California of the arrest of two of those men, which happened just the past day or so.

Now, again, eight people were arrested altogether. Four of them were in California, another three in New York. One was in Florida. But police say that all eight of these men were connected with what's called the Black Liberation Army, which was a violent offshoot or a violent arm of the Black Panther Party back in those days. And they killed this police officer, according to police, as part of a five- year effort to assassinate essentially police officers, law enforcement officers in New York and in San Francisco.

This is the officer we're talking about from San Francisco, Sergeant John Young, who was 51 years old at the time. This is a picture of him. And we also have pictures of the two officers who were also killed in the New York City.

There they are, those two.

Again, police saying that these three were killed, these three officers were killed as a part of the Black Liberation Army's effort over a five-year period to assassinate, to essentially go after and kill police officers in San Francisco and New York.

Now, the eight arrests today, need to be clear, were for the one killing of the police officer in San Francisco, Sergeant John Young. These eight were only charged with the killing of that one police officer. There you see him again. All of the charges here range -- really, murder and conspiracy charges just about for all of them.

A ninth person is also be being sought in connection with the killing of Sergeant Young, as well. But, again, all of the men now are in their late 50s, their early 60s. One gentleman, even 71 years old. But this is a 36 year-old cop killing case that police believe they have now solved and have rounded up some eight people who they say were part of the Black Liberation Army and their effort from 1968 to 1973 to go after and kill police officers in New York and in San Francisco.

So police believe that they have solved this old case that was a part of that effort to kill police officers back then.

Still more details and still more suspects, actually, police are after. This is a case we will be hearing about for sometime -- guys.

PHILLIPS: Finally some justice.

T.J. Holmes, thanks.

LEMON: A big speech to a tough crowd. The State of the Union Address now a little more than six hours away from an unpopular president facing Congress in opposition hands. Iraq will be a big focus, but the White House is also promising bold proposals on the domestic front, including healthcare.

Deputy Press Secretary Dana Perino gave us a preview last hour.

(BEGIN VIDEOTAPE) DANA PERINO, WHITE HOUSE DEPUTY PRESS SECRETARY: We look forward to the president being able to go up there and reveal his policy. And I hope that all the members of Congress will listen and have an open mind about it.

What's exciting is that this is basically going to bring those 45 to 46 million people who don't have health insurance into the world where they can have that health insurance, not have the anxiety that comes from not having health insurance. And it's going to stop the penalty against people who don't get insurance from their employer and have to buy it on their own. They will now get tax money -- a tax break in order to be able to purchase that money on their own and probably save on their taxes as well, most likely.

He will talk about immigration. This is obviously one of those topics where convictions run very deep on all sides. And the president is going to call for a very serious, a very civil debate, but one that is conclusive, one that will end up with a bill on his desk that he can sign this year.

You will hear similar things the president has talked about in this past year about increasing border security, temporary worker program, as well as rejecting amnesty, but also trying to assimilate new immigrants into the country.

(END VIDEOTAPE)

LEMON: And the president's speech is expected to last about 50 minutes. Well, healthcare is a taxing issue and some say the president's proposal to be rolled out in tonight's State of the Union will only make things worse.

CNN's Brianna Keilar has a prognosis for us.

Hi, Brianna.

BRIANNA KEILAR, CNN CORRESPONDENT: Hi there, Don.

What both the Bush administration and its critics, of course, many of them Democrats, are talking about here is a particular part of the president's plan. It would give a tax break to people who buy insurance as individuals. It could mean a few thousand dollars a year in the pockets of the estimated 17 million people who get their health insurance this way. But for those people who get their insurance through an employer, it could mean extra taxes for an estimated 35 million.

So if your annual insurance premium is more than $7,500 and you're the only one on your plan, you would pay taxes on the difference between your premium and the $7,500. Now, if your family is on your plan, you would pay taxes on any amount above $15,000.

And, Don, it's pretty easy to see if this would cost you more money. I just called up my benefits person here at work. She gave me what's called the COBRA rate on my insurance plan. And that was very close to what my premium was. LEMON: OK. Well, the Bush administration says this will save millions of people money on their insurance. But critics say it will cost millions of people as well. How can you tell which side of the equation you're on?

KEILAR: Well, there's another part to the president's plan. It is to divert some federal funds from hospitals that treat the uninsured and move that money, as much as $40 billion according to the Health and Human Services Secretary, to state governments. This would give the federal government -- or, pardon me, the federal government here would be entrusting states to come up with their own plans to make health insurance more available to Americans who can't afford it.

LEMON: OK. Are there certain groups of people who would be affected particularly by the president's plan, Brianna?

KEILAR: There are. In fact, one health economist told me it's really a good proposal for the young and healthy, but for some union workers and older folks it could be very bad. For instance, auto industry workers. They're among those who would really feel the pinch with this plan because their unions have negotiated very generous health insurance plans, plans the Bush administration calls gold plated plans. They're also an older employee group, so their premiums are higher as well for that reason -- Don.

LEMON: Brianna Keilar breaking it down for us.

Thank you so much.

PHILLIPS: Energy's a burning issue for almost any head of state and you're going to hear about it tonight in the president's State of the Union speech. You heard about it last year, too, oil research, tax credits.

CNN's Ali Velshi checks whether those ideas had any legs.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN CORRESPONDENT (voice-over): In case you didn't already know it...

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Here we have a serious problem. American is addicted to oil.

VELSHI: The problem a year ago was apparently clear. The solution? Relying less on other countries from which the U.S. gets two-thirds of its oil. And if America is going to produce more fuel, why not make it cleaner?

BUSH: I announce the Advanced Energy Initiative, a 22 percent increase in clean energy research.

VELSHI: President Bush had specifics in mind.

BUSH: We will increase our research in better batteries for hybrid and electric cars and in pollution-free cars that run on hydrogen.

VELSHI: Mr. Bush's latest budget did put aside the money that was needed. The House even passed legislation on it in September. So close and then it stalled in the Senate and died.

OK, back to last year.

BUSH: And I propose to make permanent the research and development tax credit to encourage bolder private sector initiatives in technology.

VELSHI: Again, in the last days of the last Congress the tax credits were extended for a year, not made permanent like the president wanted. And tax credits that could disappear next year aren't much incentive to business, which needs to take a longer view of its investments.

Next?

BUSH: We will also fund additional research in cutting edge methods of producing ethanol not just from corn but from wood chips and stalks or switchgrass.

VELSHI: Funding? Some. Progress on making ethanol from anything other than corn? No.

And now that America is all about the corn, it's getting expensive.

One more thing:

BUSH: I propose to double the federal commitment to the most critical basic research programs in the physical sciences the next ten years.

VELSHI: Among other things that plan called for training 70,000 high school teachers for Advanced Placement courses in math and science to make sure America has the minds to continue to develop and invent. The House did add the necessary spending to several bills but with no big push behind them, the Bush plan never made it into law.

Oh, well. He did say ten years. So maybe it will still happen.

BUSH: May God bless America.

VELSHI: Ali Velshi, CNN, New York.

(END VIDEOTAPE)

LEMON: Behind the scenes or out in front? What's a husband's place in his wife's campaign? A new chapter in the Clinton saga. You don't want to miss that. Ahead in the NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: 2008 is getting closer by the day and the already crowded fields of presidential wannabes are wasting no time explaining their differences with President Bush. This morning, Democratic Senator Hillary Clinton took aim at the Iraq war strategy today with CNN's Soledad O'Brien.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), NEW YORK: The new plan the president and the vice president have put forth, I think is unlikely to, you know, be successful. It might serve a short-term purpose like a fist into a pond of water where you see the ripples but when you pull the fist out, it's back to the same, you know, position that it was before. So I don't think anyone associated with this administration is in a position to brag about the policies they have followed over the last years. I think we need a change in direction and that is what I'm advocating.

(END VIDEO CLIP)

PHILLIPS: When Soledad asked whether a woman can be elected U.S. president, Clinton said we won't know until we try.

LEMON: Two career couples, if the careers are big and the couple's committed, well they may take turns pursuing ambitions while the other partner plays the supporting role. It may not work for everybody, but it's worked pretty well for the Clintons so far anyway. Here is CNN's Joe Johns.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT (voice-over): Here we go again, a new chapter in the Clinton saga or dare we call it, melodrama? Starring the senator from New York, a former first lady and her husband, the former president. Sure, he's a genius political strategist and a brilliant fundraiser, but it's not all good.

ANITA DUNN, DEM. POLITICAL MEDIA CONSULTANT: I think President Clinton is a huge asset and has significant liability.

JOHNS: And if there is one thing that can be said about Senator Clinton, it's that she's also a polarizing figure, if that means a lot of people either love her or hate her.

DUNN: Hillary Clinton is a candidate who many people feel they know very well because they feel they knew her husband very well and that people's feelings towards Hillary Clinton are by and large determined by their feelings toward her husband Bill, the former president. So that there may be people out there who hate Hillary Clinton simply because she was married to Bill Clinton, because they ascribe to her things about Bill Clinton they didn't like.

JOHNS: Start with the Clinton administration healthcare plan that went nowhere and then there's what you might call, the soap opera factor. Gennifer Flowers, Monica Lewinsky, impeachment. Fairly or not, she's been tarred by it as she stood by her husband's side.

Democratic political media consultant Anita Dunn says Senator Clinton has gotten the drama in check since going to Capitol Hill.

DUNN: Eight years of drama in the White House. Eight years of a sense of almost, you know, soap opera-like what happens next, you know, who is mad at whom next, will he survive? Will she survive? Will she stay with him?

JOHNS: And even though this is Senator Clinton's campaign, don't believe for one minute that the former president is going to have no role. A veteran Republican campaign manager says he thinks he saw the very first attempt to break from Bill Clinton's theatrical-style elements after the senator's more intimate announcement last weekend.

SCOTT REED, GOP CONSULTANT: It showed this isn't going to be Bill Clinton's campaign. We all know behind the scenes, it will be the Bill Clinton campaign. But he's now on the outside looking at the forest and I think they have a clear view of what it really takes to sell Mrs. Clinton to the American people.

JOHNS: What it may take to sell Senator Clinton is to keep Bill Clinton behind the scenes and behind the scenes, the former president as a political operative may have no equal. Joe Johns, CNN, Washington.

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LEMON: Coming up, a king, a queen, and a girl group get good dues. All of that straight ahead right here in the CNN NEWSROOM.

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LEMON: Well, let's talk about going for the gold, Hollywood style. Oscar nominations are out today and while there are no run- away favorites in any of the big categories, bookies in Britain are giving Helen Mirren their best odds ever to win best actress. CNN's Sibila Vargas runs down the contenders.

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SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT (voice-over): Although "Dreamgirls" led the Oscar field with eight nominations, it was singing the blues after a surprise shut-out in the best picture and directing categories.

BRAD PITT, ACTOR: Why can't you just relax? Why are you so stressed?

VARGAS: The international ensemble drama "Babel" was close behind with seven nominations and will be competing for best picture against "The Queen" and "The Departed," as well as two films considered to be dark horses. The quirky comedy "Little Miss Sunshine" and the Japanese World War II drama, "Letters From Iwo Jima."

UNIDENTIFIED MALE: Penelope Cruz, "Volver."

VARGAS: This year's best actress category has a decidedly international flavor with Spaniard Penelope Cruz up for "Volver," Britain's "Helen Mirren" for "The Queen," Judi Dench for "Notes on a Scandal" and Kate Winslet for "Little Children." While the lone American contender Meryl Streep earns her 14th Oscar nomination for "The Devil Wears Prada."

LEONARDO DICAPRIO, ACTOR: They came into the city overnight. It started. What are you going to do now, huh? Surprisingly, Leonardo DiCaprio was nominated for "Blood Diamond," and not his more high- profile in "The Departed." "Half Nelson's" Ryan Gosling and "The Pursuit of Happyness's" Will Smith are in the hunt, too, as is Golden Globe winner Forest Whitaker for "The Last King of Scotland."

And veteran actor Peter O'Toole, who has been nominated seven times before and lost each time, could finally get his chance with "Venus".

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PETER O'TOOLE, ACTOR: Everything all right?

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VARGAS: Speaking of Oscar futility, could this possibly be the year six time nominee Martin Scorsese finally gets a directing Oscar? His work on "The Departed" pits him against Clint Eastwood for "Letters From Iwo Jima", Mexican filmmaker Alejandro Gonzalez Inarritu for "Babel", British director Stephen Frears for "The Queen" and Paul Greengrass for "United 93".

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UNIDENTFIED FEMALE: (SINGING)

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VARGAS: "Dreamgirls" star Jennifer Hudson and Eddie Murphy have a shot at repeating their success at the Golden Globes in the supporting actor categories. And two scene stealing first-timers could get a crack at Oscar as well: ten year-old Abigail Breslin of "Little Miss Sunshine" and "The Departed's" Mark Wahlberg.

So who was snubbed this year?

(on camera): Well, Jack Nicholson did not get an Oscar nod for his supporting role in "The Departed". The 9/11 flick "United 93" did not get an Oscar nod for best picture. And Sacha Baron Cohen did not get any Oscar love for playing Borat. In his words, not so nice.

Sibila Vargas, CNN, Beverly Hills.

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LEMON: All right. Thanks, Sibila.

Now let's talk about the Hollywood bombs. They need recognition, too. And that's what the Razzies are all about. Guess which one got the top nod. "Basic Instinct 2" is leading the contender list this year. Sharon Stone's repreese (ph) or reprise of her breakout role from 1992 has picked up seven Razzie nominations. Razzies honor -- well, maybe not honor the worst movies of the year.

Singer Jessica Simpson joins Stone in the worst actress category for her efforts in "Employee of the Month". The Razzies will be given out the day before the Oscars next month.

PHILLIPS: When it comes to the real Academy Awards, who do you think will take home a real Oscar? Make your own award predictions in CNN.com's "Inside the Envelope" game. Correctly guess the most winners, and you may win. You'll have a shot at a home theater system, including a 42-inch high-def plasma TV. So, before you tune into the Oscars, log onto CNN.com/ite for more details.

LEMON: Can we enter that?

That would be nice.

An African-American head coach will win the Super Bowl this year for the first time ever. You can bet on it. This year's NFL title game is truly a breakthrough bowl. Not one black head coach had ever made it there, but on Sunday, a quick succession: Chicago's Lovie Smith and Indianapolis Tony Dungy made history. Earlier I spoke with Coach smith about his triumph.

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LOVIE SMITH, CHICAGO BEARS COACH: I definitely think it's a pivotal moment. Whenever you're the first to do something, you know, it has to be a special time. We are blessed to be in this position. And what this should do is just open up more doors and, hopefully, someday, we won't have to talk about it because now that's out of the way. But right now, we are the first and we're excited about that.

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LEMON: Well, just seven of the NFL's 32 teams started this season with black head coaches.

PHILLIPS: The closing bell and a wrap of action on Wall Street straight ahead.

Stay with us.

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PHILLIPS: All right. We'll get you straight to Barbara Starr at the Pentagon.

Barbara, you're learning more about this helicopter crash in Iraq believed to be operated by Blackwater, right? One of the most popular or the most well-respected security teams -- security agencies working in Iraq? BARBARA STARR, CNN CORRESPONDENT: Well, Kyra, news emerging now about a small helicopter that went down in Baghdad earlier today. The reports are confusing. But the reports that are coming in are very disturbing. A small civilian helicopter did go down in Baghdad earlier today. According to the Associated Press it was owned and operated by Blackwater, a very well-known private security company that operates throughout Iraq, mainly in Baghdad.

Now, the rest of the story is somewhat confusing. But what has emerged is that when this helicopter went down, when other U.S. forces rolled up on the crash scene, what they found on the ground were five people dead. All of those people had gunshot wounds. What is not clear is whether they were -- they survived the crash and were shot on the ground by insurgent forces, or whether they died in the crash, obviously, and were then shot when insurgents came upon them. But U.S. troops apparently found five people with gunshot wounds on the ground at this site.

What is also not clear is what brought the helicopter down. Now, there are reports, initial reports, officials say, that there was small arms fire in Baghdad at that location at the time. But they cannot confirm that the helicopter itself was brought down by gunfire. All of this still under investigation and, of course, if it is shown that the helicopter was shot down, it would be the second helicopter shoot-down in the last couple of days -- Kyra.

PHILLIPS: All right. Well, we'll definitely keep following up on the story.

Barbara Starr, appreciate it.

Closing bell about to ring on Wall Street.

LEMON: Let's check in now with Susan Lisovicz, standing by with a final look at the trading day.

(MARKET REPORT)

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