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Dems Split on Dream Ticket; Chicago in Running for 2016 Olympics; Los Angeles Teachers Protest Budget Cuts

Aired June 06, 2008 - 13:00   ET

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

GERRI WILLIS, CNN ANCHOR: We'll be back all next week, same time, 12 p.m. Eastern, right here on CNN. In fact, all day Monday is "ISSUE #1 day" on CNN.
ALI VELSHI, CNN ANCHOR: Time now to get you up-to-speed on the latest headlines. CNN NEWSROOM with Don Lemon and Brianna Keilar starts right now.

DON LEMON, CO-HOST: So what happened to the blackboard? This is what the first period looked like today in the nation's second biggest school district. Thousands of teachers out of class, on the street with a message for Governor Schwarzenegger.

BRIANNA KEILAR, CO-HOST: And Hillary Clinton's long good-bye. But you've got to think that where one door shuts, others will open. The question now is, what is behind it?

Hi there. I'm Brianna Keilar in for Kyra Phillips at CNN world headquarters in Atlanta.

LEMON: And everybody wants to be a fly on the wall in that meeting.

Hello, everyone. I'm Don Lemon. You're live in the CNN NEWSROOM.

And right off the top, we want to talk about bridging the divide. Hillary Clinton gets ready to throw her full support behind Barack Obama days after he clinched the Democratic nomination. Clinton is scheduled to officially drop out of the race tomorrow at an event in Washington.

Ahead of that, a face-to-face meeting between Obama and Clinton to settle their differences and talk about how to win in November. The presumptive Democratic nominee and his former rival met in Washington last night at Senator Dianne Feinstein's home. They issued a joint statement calling their talks productive. And Feinstein said they were laughing after that meeting.

As the two Democrats make peace, John McCain is campaigning in a battleground state. The presumptive Republican nominee is in Florida, where he is touring the Everglades and meeting with the media today.

What do Democrats think about Hillary Clinton as Barack Obama's running mate? What do they think? Do they want it? Do they like it?

Well, our senior political analyst, Bill Schneider, is pouring over some new poll numbers, and he joins us now from Washington.

Anything interesting in there we should know about, Bill?

BILL SCHNEIDER, CNN POLITICAL ANALYST: Well, last night, they met; they talked; they drank water.

But do Democrats think that Barack Obama should put Hillary Clinton on the ticket? And here is the answer. Yes. Not overwhelmingly: 54 percent say he should put her on the ticket; 43 percent say no.

What is driving it? The answer is Democratic women. It is the dream ticket of a lot of Democratic women. Among women Democrats, 60 percent support the idea. Men, not so much: 51 to 46 men saying no. So they're sort of divided over the notion.

LEMON: It seems -- it seems kind of split, you know. Because she got -- it was almost half and half of the country, right? One of the closest finishes for a second-place nominee. So that kind of reflects that a little bit.

But here's the question. If he doesn't pick her, do people still want her to go on?

SCHNEIDER: Well, we asked that question of Democrats, and they say pretty resoundingly, no. Just drop it if he doesn't, if he picks someone else. Seventy-five percent do not want her to pursue the nomination if he selects someone else. A quarter of Democrats differ with that. They say, "You go, girl." But the prevailing sentiment is no.

LEMON: You go, girl. OK. What's the most important issue? Was there -- did we ask them the most important issue to them, the voters?

SCHNEIDER: This was of everybody. And the answer is not a surprise here: issue No. 1, the economy, 42 percent.

The second issue, which has still considerable concern among voters, Iraq, 24 percent. This is a problem for John McCain, because he would like to change the focus to other issues besides the economy and Iraq. But right now, that's what voters care about.

LEMON: It's the economy, stupid.

SCHNEIDER: I've heard that.

LEMON: Yes, I've heard that before, too.

All right. Our senior political analyst, Bill Schneider.

We appreciate it, Bill. Have a great weekend.

SCHNEIDER: Thank you.

LEMON: And coming up at 4 p.m. Eastern in CNN's "SITUATION ROOM," we'll have some new poll numbers on the horse race between Barack Obama and John McCain.

KEILAR: Topping our political ticker, you can apparently mark John Edwards' name off the list of possible running mates for Barack Obama. He said again today that he has no interest in the job. Edwards, of course, was the Democratic Party's vice-presidential nominee four years ago and a presidential candidate earlier this year. He endorsed Obama last month.

Let that general election ad war begin. Republican John McCain out with his debut spot. It's a 30-second ad, and it begins airing today in major battleground states.

In this ad McCain talks about his family's history of military service. And he says, quote, "I hate war."

LEMON: Well, if you think the American electoral process is complicated and sometimes hostile, take a look at the election-year politics happening in Zimbabwe. This is Morgan Tsvangirai. He is challenging incumbent Robert Mugabe for the presidency.

Tsvangirai was arrested today, and not for the first time, by authorities who say his election rallies are illegal. He was released a couple of hours later.

Tsvangirai and Mugabe are locked in a run-off campaign. Voters will choose one of them in three weeks.

Also today, the U.S. ambassador to Zimbabwe said the rulers there are using food as a weapon, forcing hungry people seeking food aid to give up their voting privileges if they don't support the Mugabe government.

KEILAR: On alert again across the upper Midwest and eastward. Watches and warnings are popping up for everything from tornadoes to flooding. Northwestern Minnesota has already been hit by a twister today. And advisories are out, too, for the stifling heat that is gripping the southeast. It's also spreading up the eastern seaboard.

So we've got a lot going on today. Let's check in with Chad Myers in the severe weather center.

Chad, what more can you tell us?

CHAD MYERS, CNN METEOROLOGIST: That beautiful shot there of Charleston and the Cuppa -- or the Cooper River Bridge. Boy, I remember the old scary bridge. And I'm kind of glad they knocked that old thing down.

KEILAR: It's like a cartoon almost. Isn't it?

MYERS: That is so awesome. That old bridge, man, I can't believe people -- it was scary to drive over that thing. And people think it's scary to drive over the one up here in Sault Ste. Marie. And it is. It's a long bridge. But that other one was just ridiculously skinny.

(WEATHER REPORT)

KEILAR: All right. Thanks, Chad -- Don.

LEMON: All right. We're going to get you some very interesting pictures. Live pictures coming out of Chicago now. This is Daly Plaza. Recognize that person there on the left. But look at the one in the middle. Who is that. It is the -- the presumptive Democratic nominee, Barack Obama. He's at this rally.

This rally is to celebrate Chicago being one of the finalists in the race for the 2016 summer Olympic games. Of course, it is Chicago, Rio De Janeiro, Tokyo, Madrid. Those are the other three cities there. Chicago, Tokyo, Rio De Janeiro and Madrid, all in the running for the 2016 Olympics.

Mayor Richard Daly at the podium now at Daly Plaza, named after his father who was mayor there for a long time, as well.

But Barack Obama showing up. Of course, this is his home city. And he is flanked by people who have played important roles in his campaign. The first woman I mentioned when I said the person to the left, that was Valerie Jarrett, part of his inner circle. And is also -- was part of the stock exchange, was president for the stock exchange in Chicago for a very long time.

And now a big rally there. Lots going on in Chicago. They have a lot to be proud about. They have a presumptive Democratic nominee who happens to be African-American and making history with that. And also, they could host the Olympics in 2016. Very interesting. We'll continue to update you.

KEILAR: A convicted steroid dealer who had provided information to the National Football League has been found shot to death in his Dallas area home.

David Jacobs and his girlfriend were found dead yesterday. Jacobs' attorney says he had met recently with NFL officials, and he'd given names of players who bought steroids from him. He pleaded guilty last year. He was sentenced to three years probation on steroids distribution charges then.

Shaun Assael, a senior writer for ESPN, recently spoke with Jacobs and says the victim had a chilling premonition.

(BEGIN VIDEO CLIP)

SHAUN ASSAEL, SENIOR WRITER, ESPN: I had just talked to David days earlier. I knew that he wanted to come out. He wanted to talk about what he had done. He was also cooperating with the NFL, was very serious about giving them the information that he had. And this -- it came out of nowhere.

I mean, let me just say that David felt under enormous pressure. He told me that the kind of information he had, and I'm quoting now, "was the kind of information that somebody might want to put a bullet in the back of his head." And when he said that I just thought David was under a lot of pressure. It's the kind of thing that somebody says when their life is kind of coming apart.

(END VIDEO CLIP)

KEILAR: Answering questions here, police aren't saying whether they believe the deaths were a double homicide or perhaps a murder- suicide.

LEMON: A murder trial more than two years in the making is underway near Boston. Prosecutors say Neil Entwistle shot and killed his wife and their 9-month-old daughter then hopped on a plane for his native England without telling anyone what happened.

Today prosecutors laid out their case, saying Entwistle was depressed, broke and obsessed with sex. The defense painted him as a loving, grief-stricken husband and father who is not guilty. You can listen to both sides at CNN.com. We are streaming the trial for you.

KEILAR: Don, this is a bit of deja vu: another teacher in handcuffs, also in serious trouble. This story is coming to us from central Florida. Thirty-two-year-old Danielle Jones is accused of having sex with four teenage boys at her apartment. Two of them are her former students. All of them were underage. And these alleged crimes happened last summer.

(BEGIN VIDEO CLIP)

SHERIFF GRADY JUDD, POLK COUNTY, FLORIDA: We're challenged with trying to understand, in this day and age, with all the news coverage, why a school teacher would do something like this.

It's painfully obvious to us she's a pedophile. We say that, based clearly upon her desire and her ability and her recognition of having sex with these children. It was absolutely inappropriate conduct.

(END VIDEO CLIP)

KEILAR: The sheriff's office says the boys were 14 to 16 years old at the time. And Jones is on paid leave from her job as a middle- school science teacher.

LEMON: Thousands of Los Angeles teachers are no-shows, skipping class to protest education budget cuts. We'll have a live report.

KEILAR: And in South Carolina, a young boy goes for a swim, and he drowns, but long after he got out of the water. This is called dry drowning. And if you're a parent, it is really something you should know about.

(COMMERCIAL BREAK)

LEMON: Barack Obama speaking in Chicago. Let's listen in.

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: ... the last couple of decades in transforming Chicago to become, not just a great American city, but a great world city. Not just -- not just a city that works, but a city that inspires. A city that is creative. A city that is about change. A city that's about the 21st century. A city that reflects the diversity that is the strength of America.

A city that recognizes that, although we come together from different walks of life, different paths -- we've got different stories, we've got different histories -- that ultimately we share the common values and common ideals of hard work and excellence and determination, and a belief in each other that we have obligations to each other. That we come together and we can accomplish great things that we can't accomplish individually. And it that is same spirit that the Olympics are all about.

So I just want you to know in the interest of full disclosure, I only live two blocks away from where the Olympics are going to kick off in 2016. And -- and so I'm just going to be able to walk over there. I might have to rent out my house. I don't know how much it's going to be worth.

And I also, in the interest of full disclosure, I have to let you know in 2016, I'll be wrapping up my second term as president. So I can't think of a better way than to be marching into Washington Park alongside Mayor Daly, alongside Rahm Emanuel, alongside Dick Durbin, alongside Valerie Jarrett as president of the United States and announcing to the world, "Let the games begin!"

LEMON: All right. A very enthusiastic Barack Obama at Daly Plaza. And you saw Maggie Daly in the red. That's Maggie Daly. That's the mayor's wife, the first lady of Chicago. Pat Ryan, who he's talking to now. Pat Ryan was the chairman and CEO of the 2016 Olympic committee bid for Chicago. He drew it up.

Valerie Jarrett, who is chairman of his campaign, who has been running Barack Obama's campaign, at least helping in that, also helped to draw up this Olympic bid. There's Rahm Emanuel there. Rahm Emanuel from Chicago, as well.

Barack Obama mentioning all of those people and saying in 2016 he is going to be going onto his second term. And there she is, Jackie -- right? -- Jackie Joyner-Kersee standing there on the podium, as well.

So this is a big event. Really big-time. And probably a great time to be in Chicago right now. I mean, you know, as we have been saying here, Brianna, no matter what side you're on, Republican or Democrat, who you're voting for, this is history for our country to have an African-American, or a black person, or however you want to put it, as a presumptive Democratic nominee, the nominee for a major party here.

So again, this is happening in Chicago at Daly Plaza. Mayor Richard M. Daly. This plaza is named after his father Richard J. Daly, who has been -- who had been the long-time mayor there. And Mayor Richard Daly -- M. Daly has been the mayor there for a long time, as well.

Mary Mitchell, who is a columnist with "The Chicago Sun-Times" and really provides some very interesting reports and exposes for "The Chicago Sun-Times," is going to talk to us about exactly what is going on in Chicago.

There you go. Chicago 2016, be a part of it. Candidate city. They are unfurling that banner right there.

But we're going to talk to Mary Mitchell about the sentiment and the feeling going on in Chicago. And whether or not there is a possibility -- we have heard this -- that Barack Obama could play a huge role in whether or not Chicago becomes the place that the 2016 Olympics will be held.

KEILAR: And Chicago one of the places that you have been able to call home.

LEMON: Yes.

KEILAR: I know you really liked it there. So I know you would be very excited, Don, about having the 2016 Olympics there.

Well, a walkout today in the nation's second biggest school district. Los Angeles teachers boycotted the first hour of class. This is to protest cuts in the education budget.

CNN's Ted Rowlands joining us now live there.

Ted, what's going on?

TED ROWLANDS, CNN CORRESPONDENT: Well, Brianna, this was a dramatic move by teachers across Los Angeles. Some 800-plus schools were affected.

Basically, what happened was students showed up to school at their proper time, but teachers, instead of going onto the classrooms, spent the first hour out on the sidewalks, picketing and protesting proposed budget cuts to education coming out of Sacramento.

Now, administrators were very nervous, because they had all of these kids to deal with and no adults, really, to chaperone and make sure everything was going to be OK. The teaching wasn't going on. And that's one factor. But the other was safety. Inside they huddled kids onto gymnasiums and cafeterias. And administrators just had to make sure nothing went wrong. And we are hearing there were no incidents, luckily, throughout this protest.

Now, why such a dramatic protest? Teachers say they're being short-changed in the budget for next year by some $353 million, saying that Governor Schwarzenegger is cutting education, something that he should not do despite the budget deficit in California.

You know, the teachers' union, the fire union and the police unions are very, very strong in this state and in states across the country. And the budget in this state is in horrific condition: a $17 billion deficit.

The governor simply says everybody's got to do a little bit of it. And they point out that the school districts are actually getting about the same as they got last year. They just aren't getting any increases for a cost of living.

So a huge battle here in California and specifically in Los Angeles, shaping up. Teachers are threatening to do this again. Today, no incidents, though, during their walkout.

KEILAR: Ted Rowlands in L.A. for us. Thanks.

LEMON: After her loss to Barack Obama what does the future hold for Hillary Clinton? Two political experts will join us to talk about the New York senator's road ahead. Some interesting information.

(COMMERCIAL BREAK)

KEILAR: Double-header today on Wall Street. We've got a huge jump in the unemployment rate, and also the price of oil.

Susan Lisovicz is on the floor of the New York Stock Exchange with, really, some startling numbers.

We're talking an intraday record here, right, Susan?

SUSAN LISOVICZ, CNN CORRESPONDENT: We're -- yes, we're talking about an historic move in oil prices, Brianna. We are seeing nothing short of a frenzy in the oil markets.

Right now traders riding a wave, a tidal wave on oil. Right now oil is up $9 on the day, trading at close to $137 a barrel. It actually surpassed that in the last few minutes. A trader I talked to earlier today said it is unprecedented, because it comes one day after an all-time record yesterday of a $5.50 jump that we had never seen before at the New York Mercantile Exchange.

All sorts of factors, besides the usual supply and demand, that kind of thing. Morgan Stanley came out with a report today saying it sees a short-term spike of $150 a barrel by July 4. Concern about tensions, escalating tensions between Israel and Iran, as well as concerns that -- that we will see interest rates rise in Europe, which puts more pressure on the dollar, which has been a major culprit in oil's meteoric rise.

And of course, you're seeing it pressure stocks, airline stocks, which have been on the -- much higher yesterday. Are down 3 percent to 8 percent. And the Dow Industrials, which had a nice 200-point gain yesterday, are down more than that. The only Dow 30 stock that's up today is an oil stock. It's Chevron. The NASDAQ, of course, getting beaten down, as well -- Brianna.

KEILAR: And let's talk about the job report, too, because we expected it to go -- we expected unemployment to go up last month, but not by this much.

LISOVICZ: That's right. A big jump, as well, in the unemployment rate. We were expecting a -- the unemployment rate in May to go from 5 -- 5 percent to 5.1 percent. It stands at 5.5 percent.

One economist just sent me a note today, says it screams recession.

You know, in terms of jobs that were lost, it actually came in a little better than expected. We saw a fifth month of consecutive job loss. But it actually wasn't as bad as expected.

The one-month jump in the unemployment rate, the biggest in 22 years. The National Bureau of Economic Research, which is the official arbitrator on whether the U.S. economy is or isn't in a recession, says we still aren't. We're on the precipice. Of course, there are many economists that care to disagree.

In the next hour, Brianna, we're going to talk about what the two major presidential candidates have to say about today's jobs report. A tough, tough day, and a tough week on Wall Street -- Brianna.

KEILAR: Certainly. Susan, thanks so much. We'll check in with you here in about an hour.

And maybe you want to know how you can protect yourself and your family in this volatile economy. Well, all day Monday here on CNN, we've got a special look at "ISSUE #1: America's Money."

(BEGIN VIDEO CLIP)

DEBORAH FEYERICK, CNN CORRESPONDENT: I'm Deborah Feyerick, and I'll be here in Michigan Monday, talking to auto workers affected by buyouts and lay-offs. Find out how they're reinventing themselves to find work.

THELMA GUTIERREZ, CNN CORRESPONDENT: I'm Thelma Gutierrez here at the farmer's market in Santa Barbara, California, where farmers and businesses are coming up with creative solutions to feed struggling families. We'll have that story coming up on Monday on "ISSUE #1."

(END VIDEO CLIP)

KEILAR: And Ali Velshi, the entire CNN news team, they're all going to be looking for answers on "ISSUE #1: America's Money" -- or pardon me, "America's Economy." That is all day long Monday right here on CNN.

Well, in light of today's sobering unemployment numbers, we'd like you -- we'd like to know what the job market is like for you. So if you just let us know. Go to iReport.com. Look for the box that asks, "Looking for work." Then you can share your story. We want to hear what you have to say.

LEMON: OH, we certainly do.

And more election-year drama we want to tell you about. This time, though, it's in southern Africa, Brianna. That's where presidential rivalry gets candidates tossed into jail. Politics, Zimbabwe style. That's coming up. (COMMERCIAL BREAK)

LEMON: Well, political tension and a very real worsening food crisis. It's difficult to pick which is having a more damaging impact on Zimbabwe today. The man giving the current president his toughest competition in more than 25 years is Morgan Tsvangirai. He was arrested today and later released, accused of illegal campaign practices. Zimbabwe voters go to the polls to pick a president on June 27th. It's happening while inflation there is putting bare necessities out of reach for more people every single day.

CNN's Alessio Vinci reports.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (voice-over): His opponents blame him for the hunger that stalks his country, but that didn't stop Zimbabwe's president, Robert Mugabe, from turning up at the World Food Summit in Rome.

And when he addressed the forum, Mugabe shifted the blame to his old adversaries, the U.S. and Britain.

PRES. ROBERT MUGABE, ZIMBABWE: They have cut off all development assistance, disabled lines of credit, prevented the Bretton Woods institutions from providing financial assistance and ordered private companies across the world, especially in the United States, not to do business with Zimbabwe.

VINCI: But the United States said it actually spent $170 million on food assistance to Zimbabwe alone last year.

ED SHAFER, AGRICULTURE SECY.: You know, it really doesn't do much good to have him here making political statements, while people at home don't have food.

VINCI: And the Australian foreign minister described Mugabe's presence in Rome as -- quote -- "obscene." People in Zimbabwe are not only dealing with chronic food shortages, but also with hyper- inflation that is driving prices sky high.

UNIDENTIFIED MALE: The prices are higher as compared to the last time. Things are just going up by the day. So at least now (INAUDIBLE) buy a few items, but basically the prices are quite high. They're not fair enough.

VINCI: This country used to be a food exporter, not anymore.

(on camera): Mr. President, how do you respond to claims that your failed policies have brought the country's agriculture to its knees?

(voice-over): The president wasn't taking questions. But during the address he defended his decision a decade ago to seize land from white farmers, and redistribute much of it to his supporters. MUGABE: Previously this land was owned by a mere 4,000 farmers, mainly of British stock. While this land-reform program has been warmly welcomed by the vast majority of our people, it has however, and regrettably so, elicited wrath from our former colonial masters.

VINCI: Mugabe is currently running for re-election. The runoff vote is scheduled for later this month. His opponent, Morgan Tsvangirai, is accusing Mugabe by trying to steal the election by intimidating opposition voters.

(on camera): Whatever his problems are back at home, Mugabe appears to be determined to show his defiance on the world stage, and this summit offers him is the perfect opportunity to remind his few remaining friends, and especially his foes, that he should not be counted out.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE)

KEILAR: We are watching here President Bush. He is about to speak at the swearing in of the new Secretary of the Department of Housing and Urban Development. That would be Stephen Preston. He was confirmed by the Senate. He's going to be sworn into office today. Let's listen in to what President Bush has to say today.

GEORGE W. BUSH, PRES. OF THE UNITED STATES: Welcome. Thank you.

So glad to be here at the Department of Housing and Urban Development. And I've come to introduce you to your new boss, Secretary Steve Preston.

I want to thank Steve's wife, Molly, five children...

(LAUGHTER)

(APPLAUSE)

... and his mom and dad, Lee and Ursula.

Mr. Secretary, thanks for coming.

Secretary Kempthorne and Director John Walters.

It's good to see two of your predecessors here, Steve: Alphonso Jackson and Jack Kemp.

Thank you all for coming.

(APPLAUSE)

This is a time of turbulence in the housing market and slow growth for our overall economy. This morning the Labor Department reported that our economy lost 49,000 jobs in May and the unemployment rate rose to 5.5 percent. This rise was caused in part by a surge of new young entrants into the job market. But it's clearly a sign that is consistent with slow economic growth.

To help keep this economy growing, we did pass an economic stimulus package that provides tax rebates for American families and incentives for businesses to invest in new equipment. We're beginning to see the signs that the stimulus may be working. And now Congress needs to take the next steps.

At a time when Americans are concerned about higher gas prices, Congress needs to pass legislation that expands -- will allow for the expansion of American energy production.

In this period of economic uncertainty, the last thing the Americans need is a massive tax increase, so Congress needs to send a clear message that the tax relief that we passed will be made permanent.

(APPLAUSE)

Unfortunately, these policies are being blocked by the Democratic Congress. So I call on congressional leaders to put partisanship aside and work with me to enact these important initiatives for the American people.

This department is also critical to meeting the challenges we face in our economy. We need strong leadership in the secretary's office. Steve Preston is the right man for the job.

He's a financial expert who understands how the housing market impacts our broader economy. He's a skilled manager. He's a person of character and integrity.

Secretary Preston will work to strengthen homeownership with the same dedication he brought to his previous job of strengthening the American small-business community. As the head of the SBA, Steve presided over loan guarantee programs that are similar in structure to those run by the Federal Housing Administration.

Just as entrepreneurs found a trusted friend Steve Preston, so will American homeowners.

Before coming to the SBA, Steve gained valuable financial and leadership experience in the private sector. His impressive career has taken him from investment banking to senior financial posts at major corporations. Wherever he's gone, Steve has earned the admiration of his colleagues.

He takes on this new challenge with my full confidence and my trust.

Steve takes over for a good man, my long-time buddy, Secretary Alphonso Jackson.

(APPLAUSE) I thank you for your compassion and your hard work. You helped change a lot of lives. And I wish you and Marcia all the very best. See you back in Texas.

(LAUGHTER)

I also want to thank Deputy Secretary Roy Bernardi for his service. He filled in as acting secretary during this transition. He spent nearly seven years of his life here at this department.

And I appreciate your hard work on behalf of all Americans.

(APPLAUSE)

As Steve takes office, his first priority will be to help lead my administration's response to the challenges in the housing market.

We've taken aggressive action to help responsible homeowners to keep their homes by giving the FHA greater flexibility to offer refinancing options.