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Hopes for an Easy Transition for Obama to the White House; Bhutan Crowns New King; Emanuel Reportedly Takes Chief of Staff Slot; Obama's First Security Briefing

Aired November 06, 2008 - 14:00   ET

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


KYRA PHILLIPS, CNN ANCHOR, CNN NEWSROOM: The next hour of CNN NEWSROOM starts right now.
(BEGIN VIDEO CLIP)

So much to do and so little time. 75 days to phase into the presidency. Barack Obama has to get his team lined up. Who will sign on? Your issue number one and now his as well for yet another president-elect, it is the economy, stupid. And -

UNIDENTIFIED MALE: In 2004, who was John Kerry's running mate?

UNIDENTIFIED MALE: Oh.

UNIDENTIFIED FEMALE: Um.

UNIDENTIFIED FEMALE: Give me a hint.

PHILLIPS: You would think that wouldn't bode well for Sarah Palin, but then again John Edwards was not a pit bull in lipstick. Do you know the political future of the Alaska governor?

(END VIDEO CLIP)

PHILLIPS: Hello, everyone. I'm Kyra Phillips live in the CNN World Headquarters in Atlanta. You are live in the CNN NEWSROOM.

Rahmbo, as they call him, returns to the White House. That is Rahm Emanuel, Illinois congressman, former aide and adviser to President Clinton, now President-Elect Obama's choice for White House chief of staff. We got word just about an hour ago that he has accepted the job despite some public reservations about the toll that it would take on his family. A chief of staff from the Clinton years remembers how Emanuel actually got his nickname.

(BEGIN VIDEO CLIP)

MACK MCLARTY, FMR. CLINTON W.H. CHIEF OF STAFF: I think the high-energy directness will serve him well. Ron, like a lot of us, made mistakes, but I think he quickly corrected them. I was a strong supporter of his. And I think we made the decision, certainly, retaining him in the White House. He was an asset then. He became more of an asset, particularly on the crime bill, welfare-to-work bill and other important initiatives.

(END VIDEO CLIP)

PHILLIPS: Well, Emanuel chairs the House Democratic caucus and that makes him the fourth most powerful House Democrat. Not bad for someone who has only been in Congress for six years, by the way.

He was born in Chicago, almost 49 years ago. And educated at Sarah Lawrence College and Northwestern University.

OK. One job down, umpteen dozen to go, but hiring is only one of the jobs of a presidential transition team. CNN's Jessica Yellin is on the transition beat in Chicago.

First off, Jessica, why Rahm Emanuel?

JESSICA YELLIN, CNN CORRESPONDENT: Well, Kyra, he is a Washington player who is both brash, can get things done. He also has enormous political savvy. He is a guy who saw the rocky start to the Clinton White House and knows how to not repeat that. Right now he is being criticized by a number of Republicans as a partisan. That is mainly because he helped oversee the political year that saw Democrats take over the House of Representatives. So he ushered a lot of Democrats into office.

But Rahm has a history of working with Republicans and that often gets forgotten. During the latter part of the Clinton years he was negotiating with a very power Republican House of Representatives and he managed to get a balanced budget through with them, welfare reform, the crime bill, as you heard Mack McLarty say. So while he does have a rough and tumble take-no-prisoners kind of attitude, and he is known for his sometimes brusque manner, he also knows how to compromise because above all, he is a pragmatist. And what it says is that Barack Obama wants to start taking action immediately. He does not want to start his administration on learning wheels, basically.

Also, I have to tell you, Kyra, I know the rumor is that everyone calls him Rahmbo. Everyone I know calls him Rahmi.

(LAUGHTER)

PHILLIPS: Rahmi. So, Rahmi would be after? Help me out. Where would that come? Or that's just a cute nickname?

YELLIN: It is a cute nickname, because he is so brash and gruff, everybody likes to call him like he is your little brother.

PHILLIPS: OK?

YELLIN: People do like to tease him and rib him for his tough attitude.

YELLIN: Little Rahmito.

YELLIN: He used to be a ballet dancer.

PHILLIPS: That is what I have heard. It's amazing. He is compared to a pit bull and then the guy was a ballet dancer. Go figure. Lynn Swann, I think that is the last person who was a football player/ballet dancer.

And what about the Treasury secretary possibilities? And should we have all the nicknames for those possibilities as well?

YELLIN: Yes. Oh, I don't know the nicknames yet. We'll work on that.

Look, there are some names circulating out there that are heads of investment banks. But the names that we really hear as solid contenders include Tim Geithner, who is now the head of the New York Fed and is considered sort of a young rising start. Both in academic circles he is considered quite sophisticated in the way he thinks about economic matters, but also respected by Wall Street.

And then, the sort of gray beard of the community now is Larry Summers, who was Treasury secretary at the end of the Clinton's years and is considered enormously capable of dealing with the economic crisis. The problem with Larry Summers, potentially, is that he has a track record of saying inflammatory things. He has alienated some constituencies. So a nomination experience for him could be kind of fiery. And it is a question whether Obama wants to take that on at the beginning of his administration.

PHILLIPS: All right.

YELLIN: Tough choices to make.

PHILLIPS: Yes. No kidding. And all, on many levels, very well qualified in different ways. Jessica, thanks.

YELLIN: Yes.

PHILLIPS: Well, we don't know how, we don't know when, but two and a half months before Barack Obama takes the oath of office and days before we know who will fill the cabinet, we know the challenges he has promised to tackle first. Job one, of course, is issue number one for the voters, the economy.

Among other things, Obama has promised tax cuts for 95 percent of working families. He has vowed to end the Iraq war responsibly, while ramping up the war in Afghanistan. Now, he has embraced an all- inclusive energy policy from the greenest of green technologies to limited offshore drilling. And he has promised near universal health care, including lower premiums for people who have coverage now.

Now Obama says that he and his wife, Michelle, look forward to visiting with President Bush at the White House on Monday we are told. Today the outgoing president assembled his Cabinet and hundreds of aides and employees to reflect on the election and the huge job awaiting the president-elect.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We face economic challenges that will not pause to let a new president settle in. This will also be America's first wartime presidential transition in four decades. We are in a struggle against violent extremists determined to attack us. And they would like nothing more than to exploit this period of change to harm the American people. So, for the next 75 days, all of us must ensure that the next president and his team can hit the ground running.

(END VIDEO CLIP)

PHILLIPS: And with that in mind, Obama today received his first- ever top secret presidential-level intelligence briefing. He'll get one everyday between now and the end of presidency. And as we hear now, from CNN Justice Correspondent Kelli Arena, it is not for the faint of heart.

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KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice over): It is called the presidential daily brief or PDB. It contains the most classified information about covert activities, U.S. military operations and threats facing the United States.

FRANCES FRAGOS TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: He will begin to see not only the threat but also the response and he will have to begin to make decisions about what will his policy be.

ARENA: It will be a sobering experience for the president-elect. He'll be able to see top secret satellite photos, hear what the nation's spies are reporting, and he'll get the latest intelligence from the world's hot spots.

What is happening with the insurgency in Iraq? How sick is North Korea's leader Kim Jong-Il? And what is the status of the hunt for terrorists in Pakistan? The sooner he hears it, the better.

MIKE MCCONNELL, DIRECTOR, NATIONAL INTELLIGENCE: Those who wish us harm realize this is a period for us when we are still adjusting to making decisions and understanding, and so on.

ARENA: McConnell points out the first and second attacks on the World Trade Center happened during the first years of the Clinton and Bush administrations. A fact that has not escaped the president-elect, or his number two.

JOE BIDEN, VICE PRESIDENT-ELECT: Mark my words, it will not be six months before the world tests Barack Obama like they did John Kennedy.

ARENA: Officials stress there is no intelligence to suggest that any attack is imminent, but they remain on guard.

MICHAEL CHERTOFF, SECRETARY, HOMELAND SECURITY: We have put into effect some additional measures to just make sure we are really scrubbing all of the intelligence. We are looking carefully at anything that might be a vulnerability.

ARENA: A smooth transition also calls for the fast placement of a new national security team. (END VIDEOTAPE)

ARENA: Experts say that the president-elect needs to get that team, which will include a new Homeland Security secretary, and a new attorney general, in place as soon as possible. So he is prepared for the many challenges that he is absolutely going to face on day one, Kyra.

PHILLIPS: Now, Kelli, these intelligence briefings are tailored for each president, right?

ARENA: Yes, presidents can ask to get more information on certain topics based on their interest levels. They can be choose to be briefed in person, like President Bush is, or just to receive a written report like President Clinton did. It is all a matter of preference, Kyra.

PHILLIPS: All right. Kelli Arena, live from Washington. Kelli, thanks.

ARENA: You're welcome.

PHILLIPS: And with just over two months left as secretary of State, Condoleezza Rice is back in the Middle East on another peace mission. But after arriving in Tel Aviv, she said it is unlikely a deal can be reached before the end of the year. At last November's peace summit, In Maryland, the Israelis and Palestinians agreed to a December 31st deadline this year to reach an agreement. Rice says it is important to maintain momentum so new governments in Israel and the U.S. have a foundation to continue talks.

And in Iraq, three roadside bombs in or near Baghdad today killing at least five people, several others were wounded. One of those killed was a member of the group made up of former Sunni insurgents who turned against Al Qaeda. They are said to be a major reason for a reduction of violence across Iraq right now.

Well, talk about great expectations, Charles Dickens never could have written this story. From the economy, to Iraq, to terrorism, Americans expect the world from their new president. Can he do it?

Down, but not done in California. Gay marriage supporters vow to keep fighting despite a vote Tuesday that didn't go their way.

(COMMERCIAL BREAK)

PHILLIPS: U.S. auto execs are in Washington today looking for help. House Speaker Nancy Pelosi is meeting with Ford, GM, and Chrysler chiefs, plus the head of the United Autoworkers. They will discuss the credit crisis and access to government funding. Pelosi plans to call Congress into a lame-duck session to work on another stimulus program for the struggling economy.

And things are also tough on the upper end of the car business. The world's largest Lamborghini dealership has shutdown in Southern California. The average price tag for the 12 cylinder sports car is $600,000.

The recession calls are actually growing louder with each passing day. And today, we have dismal numbers on the state of the labor market and the retail sector. Stephanie Elam at the New York Stock Exchange.

Stephanie, I just have to laugh. Because, can you even imagine spending $600,000 on a car? That is one thing.

STEPHANIE ELAM, CNN FINANCIAL CORRESPONDENT: Wait a second, didn't you just say you got another one in red? I thought this was your second one?

(LAUGHTER)

PHILLIPS: Yeah! No, that one's in fuchsia.

ELAM: Oh, fuchsia, right. Special color.

PHILLIPS: No, I like my beat-up Jeep with big, fat tires.

ELAM: I am a fan of the Jeep, as well. It gets me around. No one is expecting to see me in it. You know? Is it green? You are asking to get a ticket, on the 405, you are asking for a ticket.

PHILLIPS: So, true. How do you go slow in a $600,000 car? Forget about it.

ELAM: Exactly. Well, while we talk about dealers that are shutting down, stocks here are shutting down as well, Kyra. They have been selling off today as we get more evidence that the labor market is in a recession.

A new report shows that 4 million people continue to receive unemployment claims. That is a 25-year high. And it shows that it is taking people a long time to get a new job. The report is a bad omen for tomorrow's monthly jobs report. That is expected to show 200,000 jobs were cut last month.

That is pulling the Dow down by triple digits for the second day in a row. We are off of our lows of the session, but we are still off 372 points right now, at 8759, just about for the Dow. Nasdaq off 58, at 1623. So, we are looking at some steep losses if things were to wrap up right now, Kyra.

PHILLIPS: A lot of these economic reports are tied together, right? Retailers struggling because so many people are out of work?

ELAM: Oh, for sure. It is a total ripple effect when it comes to the situation here. You get people losing jobs, and that means as consumers they start to pulling back, and then the economy weakens. Because of that, a turnaround in one area - it has broad effects, but for now, most retailers are reporting weak October sales. If you take a look at the numbers we have seen from GAP, American Eagle and Abercrombie & Fitch, they all posted double-digit percent declines. And even discounters are hurting, although Wal-Mart is one bright spot. But still, you are right, Kyra, it is a rough time.

PHILLIPS: All right. Stephanie, we will be talking again. Thanks.

ELAM: Sure.

PHILLIPS: Election day follow-up. Three groups have filed legal challenges in California in an attempt to overturn Tuesday's vote in favor of a statewide ban on same sex marriage. The measure passed with more than 52 percent of the vote, but the opponents are not giving up.

(BEGIN VIDEO CLIP)

PROTESTORS POUNDING, CHEERS

(END VIDEO CLIP)

PHILLIPS: Well, in addition to legal efforts, about 1,000 protesters marched through West Hollywood, eventually gathering outside the CNN Los Angeles bureau, that you could see right there. Three people were arrested. Similar measures banning same-sex marriage were approved by voters Tuesday in Florida and Arizona.

Well, checking our political ticker, Barack Obama raised a record amount of money during his White House run. So what happens if he has some leftover? Well, we did checking and it turns out that he can do several things, including to donate it to charity, give it back to his donors, or even give it to another candidate who is running for office. One thing he cannot do however, he cannot keep it for himself.

As for his Cabinet, there is a report that Barack Obama is considering outspoken environmentalist Robert Kennedy, Jr., to head the Environmental Protection Agency. Politico.com reports that the choice of Kennedy would instantly raise the profile of the EPA, which enforces clean air and clean water laws. Kennedy currently heads the watchdog group River Keeper.

There is word from the McCain camp today that top adviser Randy Scheunemann was not fired as had been reported. Our Dana Bash reports that Scheunemann was apparently the target of a whispering campaign by fellow campaign staffers who blamed him for negative media leaks about the McCain team in the days before the election. Campaign manager Rick Davis dismissed the reports. Telling CNN, quote, "There is some silly score settling being done."

Now check out all of our political ticker news, For the latest, just log on to CNNpolitics.com. Your source for all things political.

She went from unknown governor to defeated VP candidate in about 10 weeks. What is next for Sarah Palin? We still call her governor, but could we soon call her senator?

What do you give the woman who has everything? How about an election win for her favorite candidate? We will look at Oprah Winfrey's role in Obama's big night.

(COMMERCIAL BREAK)

PHILLIPS: No, it is not snow that you are seeing here. It is hail. So much of it that it covered the ground in Deer Creek, Oklahoma. Some of it was the size of tennis balls. That hail came from a line of severe thunderstorms that moved through central Oklahoma yesterday.

And Chad Myers, you said you have actually experienced that?

CHAD MYERS, CNN METEOROLOGIST: Oh, I have had many cars with hail dents on them. Not even tornado chasing, just living there. You can't get away from it sometimes no matter what you do. I mean, the hail is just - these storms just raked across from Canadian County through Oklahoma County and all of the way down toward Marlow. They were big yesterday, they really were.

(WEATHER FORECAST)

PHILLIPS: Well, the challenges facing Barack Obama are huge.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They don't think that he is merely going to be president, they think that he's been elected savior.

(END VIDEOTAPE)

PHILLIPS: So much for lowering expectations. Are people expecting too much from the nation's next president?

Back at home in the last frontier state, but probably not the last you will hear from Alaska's superstar governor. What is Sarah Palin planning?

(COMMERCIAL BREAK)

PHILLIPS: Hello, everyone. I'm Kyra Philips in the CNN World Headquarters in Atlanta. You are live in the CNN NEWSROOM.

It's 2:27 Eastern Time. Here are some of the stories we're working on in the CNN NEWSROOM. Stocks are struggling with more troubling news on Wall Street. The Dow industrials, right now, down 408 points. Weak retail sales numbers and declining auto sales are adding to the recession fears.

Barack Obama moving forward with his transition plans. He has scheduled a news conference for tomorrow, his first since winning Tuesday's election.

Iran's President Mahmoud Ahmadinejad has offered his congratulations to Barack Obama. In a statement he says he hoped Obama would, quote, "Leave a good name for history during his term in office." It is the first time an Iranian leader has congratulated a U.S. president since the 1979 Islamic Revolution.

Barack Obama wanted the job and he got it. Part of prize package, daunting expectations. A CNN/Opinion Research Poll asked voters what they expected after four years, if Obama was elected. Well, about two-thirds say they expect the Iraq war to be over, the economy to turned around, and more respect from abroad. Half expect the U.S. to be safe from terrorism and just under half expected their taxes will be lower.

Now some people cannot wait four years, or even four months for something to happen, especially the ones flirting with foreclosure. What can they expect from the new president? Here is CNN's Allan Chernoff.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN SR. CORRESPONDENT (voice over): Aoah and Equintall (ph) Middleton are fighting foreclosure on their home after cancer treatment expenses for their eight-year-old daughter forced them to miss mortgage payments. They voted for Barack Obama, now they are hoping to get help from the president-elect.

AOAH MIDDLETON, FIGHTING FORECLOSURE: I would like for Barack Obama to find some way to, you know, bail the homeowners out of this situation. My husband and I work, and we feel that if you are able to work, you should have a home. You should have a backyard.

CHERNOFF: Obama may help the Middle tons. He wants banks to give a 90-day moratorium on foreclosures. He wants to create a foreclosure- prevention fund and allow bankruptcy judges to make mortgages easier to pay off.

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Make no mistake, we must do more to help innocent home buyers.

CHERNOFF (On camera): Beyond addressing the mortgage crisis, president-elect Obama says he will take quick action to help Americans who are suffering from the economic slump.

(Voice over): The Obama plan calls for extending unemployment benefits. Temporarily exempting those benefits from taxes, emergency loans for small businesses, and a tax credit for every new job a company creates. Barack Obama says he will keep a close watch on the bailout program to help banks that invested in risky mortgages.

OBAMA: I support the Treasury's effort to buy up troubled mortgages, but we need to do it in a responsible way.

CHERNOFF: Aoah Middleton, though, does not expect immediate results from Obama.

MIDDLETON: It took us a couple of years to get into this mess. So it is not going the overnight, so, I am willing to wait to see what Obama will do.

CHERNOFF (on camera): But for your home? Do you have a couple of years?

MIDDLETON: Well, I don't have the answer to that question. I can just only hope and pray.

CHERNOFF (voice over): Allan Chernoff, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: OK. Mr. President-elect, no pressure whatsoever. So, what's it going to take for Barack Obama to make good on promises to turn the economy around? Well, it is a question that we posed to Lakshman Achuthan. He's managing director at the Economic Cycle Research Institute and he joins us from New York.

Lach, good to see you.

LAKSHMAN ACHUTHAN, ECONOMIC CYCLE RESEARCH INSTITUTE: You, too.

PHILLIPS: All right. So, I asked you. Give me three or four things that Barack Obama needs to do right now to start working on the economy. The first thing you said, he needs to provide immediate federal support of state and local governments to get them through this period.

Explain.

ACHUTHAN: Well, like everybody else, state and local government budgets are under a great deal of pressure. And the last thing you want actually, are employees and spending at that level, at the state and local level being cutback in the midst of a recession. It's only going to intensify it.

And so, to the extent that the federal government can temporarily shore up state and local government budgets through various financial, you know, loans or whatever. There's the devil in the details there. But they can do it, they've done it before. That's very, very helpful in trying to mitigate the down turn. It's not going to turn the economy around, but it will help to ease the pain.

The second thing is you know, there's a lot of talk of another stimulus package like the one at the beginning of the year. And so, why would the second one work if the first one didn't? And what they need to be very sensitive about is the timing of that package. If you were --

PHILLIPS: So, you say, get the next economic stimulus package ready now?

ACHUTHAN: Get it ready now. But, make sure that when it hits the economy, the economy is already having a little bit of an upturn so that you can reinforce it and change a U-shaped recovery into a V- shaped recovery. Because a V-shaped recovery is one that gives you jobs. And that's the key to all of this. You have to stop the job losses.

We're going to learn tomorrow that we lost a lot more jobs than we expected. And we have to turn it around and start to making jobs. These are very near-term things that you need to do. But there's a third thing that we talked about, which is essentially refinancing the government debt.

We all know that we have a lot of debt, and that we're going to be spending more money than we're going to be taking in as a country. So what is the best way to manage the finances of that? At this current moment, pretty much all investors in the world want to loan money to the United States, because we are the safest bet around.

Well, you're looking at the stock market, it's falling, right? It's safer to put your money with U.S. Treasury bonds and there instead of having essentially like a short term adjustable rate mortgage, which is what this country has today. We could refinance longer term fixed rates.

PHILLIPS: Well, you need to reintroduce long term bonds, right? 30-year, 50-year.

ACHUTHAN: Well, we've never gone to 50-year. We used to have 30-year and they basically wiped all that out a few years back when we had a surplus. And now we could go back to introducing, or putting an emphasis on 30-year bonds or even 50-year bonds. I mean, some companies -- like a company like Disney, actually has 100-year bonds. And we could lock it in at a low rate here.

PHILLIPS: And look at how stable that company has been for so many years, you know? Well, you were mentioning the loss of jobs. So, why not extend unemployment insurance for folks that are struggling right now?

ACHUTHAN: Yes. That is an important thing to do here, also. It would not be that unusual. We've done it in past recessions and we'll do it, I suspect here as well.

And specifically what that is, is someone who has lost a job say, in January, their benefits may be running out now because we're at eight or nine months later. And we could extend those. Because you don't want their spending going to zero. Remember unemployment insurance was introduced after the Great Depression, as a way of having an automatic stabilizer in the economy. So that someone who loses a job, their spending doesn't go to zero, it goes to a lower level, but not zero.

PHILLIPS: Lakshman Achuthan. Great to talk to you, today.

ACHUTHAN: You, too.

PHILLIPS: Always appreciate your insight.

ACHUTHAN: Thank you.

PHILLIPS: Well, she usually makes other people cry. But there she was Tuesday, Miss Oprah herself, a weapy face in the crowd. We'll have more on the talk show queen's first foray into politics.

And the United States isn't the only country getting a new leader. A tiny national in the Himalayas celebrates the crowning of a new king. (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

OPRAH WINFREY, HOST OF "THE OPRAH WINFREY SHOW": Well, I've kept my mouth shut and supported Barack Obama as a private citizen. And, today though, the election is over. And I'm unleashed. Whoo!

(END VIDEO CLIP)

PHILLIPS: Let it out, girl. Oprah Winfrey's support for Barack Obama got a lot of attention. But did this influencer (INAUDIBLE) help get out the vote for her guy?

CNN's Alina Cho takes a look.

(BEGIN VIDEOTAPE)

WINFREY: I mean, it brought tears to my eyes because I thought, yes, that is it. It feels like America did the right thing.

ALINA CHO, CNN CORRESPONDENT (voice-over): No doubt, Oprah Winfrey has the proverbial midas touch. But can she? Did she actually persuade Americans to vote Obama?

UNIDENTIFIED FEMALE: Well, I think anything and everything that Oprah does affects America, really the world.

UNIDENTIFIED MALE: You know, she gave him an audience and helped get him off of the ground.

CHO: It was May of 2007, that Oprah officially helped Obama get off of the ground. By the end of the year --

WINFREY: And there's only one choice that we get for president of the United States. And if you are going to choose that choice ought to be Barack Obama.

CHO: Her first foray into politics. But not everyone was happy about it. The blogs went crazy, calling her a traitor, accusing her of choosing race over gender. Hypocrisy at its finest.

WINFREY: I knew this was this was the moment for me to stand up, regardless of you know, whatever kind of you know, heat I had to take or what people's responses would be.

CHO: Two Maryland graduate students even came up with a formula, looking at subscriptions to "O! Magazine" and sales of Oprah's Book Club. They compared the data with votes cast for Obama. And surmised, Oprah's endorsement was worth more than a million votes.

A million votes?

PROF. ERIC OLIVER, UNIVERSITY OF CHICAGO: Whether or not she gave him a half a million, or a million, or two million votes, it's just impossible to say. CHO: Others call Oprah the queen of king makers.

REP. JESSE JACKSON JR. (D), ILLINOIS: Oprah, in her own way, is not only a part of the culture of America. She's also part of the body politic of America.

CHO: So the question: With President-elect Obama heading to Washington, will the queen of talk follow him?

(on camera): You've got this little thing called "The Oprah Show." But would you consider an ambassadorship?

WINFREY: Would I consider the ambassadorship? I have "The Oprah Show." Listen, I can honestly say, I had no agenda. I had no agenda.

CHO (voice-over): Alina Cho, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Well, ambassadorship maybe. Definitely not chief of staff, because we found out earlier today that Rahm Emanuel actually has been appointed as Obama's chief of staff. And he spoke to our cameras just a while ago.

Here's a part of it.

REP. RAHM EMANUEL (D), ILLINOIS: Here's the deal. My parents are alive to see their middle son have a choice in his career of being a Congressman with one chance, one opportunity down the road of maybe rising in the leadership and being the chief of staff to a historic presidency in a historic time. I am very fortunate that my parents are alive to see that, whatever choice I make.

(END VIDEO CLIP)

PHILLIPS: And as the United States prepares for a new president, the tiny kingdom of Bhutan, in the Himalayas has a new king. The Raven Crown placed on the head of the new ruler in a ceremony laced with tradition and sacred Buddhist rituals.

The exact time, well that's decided by astrologers. The 28-year- old western-educated king received his crown from his father, who abdicated the thrown. And he's the first king since Bhutan's transition to Democracy. The country held its first parliamentary elections in March.

(BEGIN VIDEO CLIP)

RON CLARK KIDS: We can vote however we like. I said, we can vote however we like. Yea!

(END VIDEO CLIP)

PHILLIPS: Oh, how cute were they? They're still adorable and we're still in love with them and we can't get enough of them. Their election rap was a huge hit. It became a YouTube phenomenon. But their knowledge of the issues, well that was an even bigger one. Revisiting our Ron Clark Kids after Tuesday's historic vote.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

RON CLARK KIDS: We got a big election coming up. And you know what? We can vote however we like. I said, we can vote however we like. Yes. Obama on the left, McCain on the right. We can talk politics all night, yes --

(END VIDEO CLIP)

PHILLIPS: Well, since they were here last week, a lot has happened to these guys and gals. Students from Atlanta's Ron Clark Academy, winning lots of fans with their rap, "You Can Vote However You Like." The song's done to the tune of T.I.'s 'Whatever You Like." And the Grammy winner actually paid the kids a surprise visit to tell them how much he liked their message.

Well, what could top a visit from their favorite rapper? Probably nothing except a visit from their favorite President-elect? We were so impressed with these guys and how informed that they were on the issues. Well, we went back to Ron Clark Academy to talk about Tuesday's historic vote.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It feels so amazing that we have a voice and that people are listening to us.

UNIDENTIFIED FEMALE: I am so excited about this election because it is just a unique election that will go down in history.

UNIDENTIFIED MALE: This is history.

UNIDENTIFIED FEMALE: Yes, I am just so excited that this is the first black president. It's just great to me. I love it.

UNIDENTIFIED MALE: You can't let anybody tell you that you can't do this and that. Because if Barack Obama can become the first African-American president, that means I can do --

UNIDENTIFIED MALE: This is a history-making moment. I hope that now we can see beyond race and see beyond the color of someone's skin and we can see what is on the inside, what's in their heart. And we won't judge people. And I think that the American people are doing a great job of that now. Because as you can see, Barack Obama's our new president.

(END VIDEO CLIP)

PHILLIPS: Once again, the amazing students at Ron Clark Academy.

Well, he sure energized voters. Now, what will Barack Obama do to spark energy solutions? Poppy Harlow's got the details.

(COMMERCIAL BREAK)

PHILLIPS: Well, two days after the election we seem to have a winner the U.S. Senate race in Oregon. With 82 percent of the vote counted and the Democrat Jeff Merkley, some 40,000 votes ahead. The incumbent Republican Gordan Smith has conceded. He hasn't done it publicly, but both camps now say that Smith telephoned Merkley to acknowledge his loss. Merkley becomes the 57th Democratic senator in the incoming Congress, with Senate races still undecided in Alaksa, Minnesota and Georgia.

Well, Sarah Palin's back to work as one of the nation's most famous governors. Next month she's due to become of the most glammest grandmas, too. But, has the sun set on Palin's national ambitions? We will see here again in say, four years?

Carol Costello's been asking around.

(BEGIN VIDEOTAPE)

CAROL COSTELLO, CNN CORRESPONDENT (on camera): Kyra, could Sarah Palin actually run for president in 2012? You betcha.

SEN. JOHN MCCAIN (R), ARIZONA: Governor Sarah Palin.

COSTELLO (voice-over): In just 10 weeks, a blink of the political eye --

GOV. SARAH PALIN (R), ALASKA: -- between a hockey mom --

COSTELLO: She has moved to obscurity to cultural icon.

KATIE COURIC, CBS ANCHOR: Specific examples in his 26 years --

COSTELLO: To defeated candidate.

PALIN: I'll try to find you some and I'll bring them to you.

COSTELLO: Now what? Wither Sarah Palin?

She was no shrinking violet when it came to selling herself on the stump and America noticed.

TINA FEY, ACTRESS, PLAYING SARAH PALIN: OK. Listen up, everybody. I'm going rogue right now, so keep your voices down. Available now, we got a bunch of these.

COSTELLO: Analysts say it is possible. And on Tuesday, Palin did not nix the idea of a presidential run in 2012, saying that as Alaska's governor, she is a uniter.

PALIN: You know, if there role in national politics won't be so much partisan.

COSTELLO: And observers say if Palin can broaden her appeal beyond the conservative Republicans, she'd be hard to ignore in 2012.

The real challenge for Palin is to maintain her star appeal, something tough to do for losing VP candidates.

UNIDENTIFIED MALE: In 2004, who was John Kerry's running mate?

UNIDENTIFIED FEMALE: Ah.

UNIDENTIFIED MALE: Um, Lieberman.

UNIDENTIFIED FEMALE: Give me a hint.

UNIDENTIFIED MALE: John --

COSTELLO: Edwards. It'S John Edwards.

There is one sure way Palin can avoid Edwards' fate and remain on the national stage. Here's the deal. If Senator Ted Stevens is re- elected but forced out of office because of felony convictions, although it might be challenged in court, Palin, as Alaska's governor, could try appointing herself as interim senator.

UNIDENTIFIED FEMALE: That's impossible, right?

JOHN AVLON, POLITICO.COM: It sound likes the beginning of a Victorian novel. You know, such a thing is entirely possible and presumably that time in Washington would be stature-raising and give her more experience and national and international policy, which has been where she's really been weak.

COSTELLO: Keep in mind, Kyra, it is fun to speculate. But if Palin really did appoint herself to replace Stevens, she would have to by Alaska law, run in a special election after 90 days. And it's hard to believe she would give up the governorship to do that. But, most analysts say if she really does wants to run for president, a run for the Senate might be a good thing to do first -- Kyra.

(END VIDEOTAPE)

PHILLIPS: Well, President-elect Obama made many promises on the campaign trail about what he'd do to solve the nation's energy problems. So what can we expect from his administration? CNNMoney.com's Poppy Harlow has our Energy Fix from New York.

Hey Poppy.

POPPY HARLOW, CNNMONEY.COM: Hey there, Kyra.

Well, promises, promises, promises. We heard a lot of them on the campaign trail. We counted them up for you. There are about two dozen, when it comes to Obama's energy policies. Everything ranging from conservation, to transportation.

So, we want to tell you what you can expect right away. First of all, some big changes by the federal government. Obama is calling for the entire White House fleet to be plug-in vehicles within his first year of office, that of course, as security permits. And by the end of his first term, he says half of the federal vehicles will be plug- in hybrids, or electric vehicles. He wants existing federal buildings to become 25 percent more energy efficient. He wants any news ones that are built to be 40 percent more energy efficient. He's calling for a 15 percent reduction in the amount of energy the federal government consumes by the year 2015. That's a lofty goal, since the federal government is the world's single largest consumer of energy. Kyra, they spent $14 billion this year alone.

PHILLIPS: All right. Well, that's the federal government. What about the private sector?

HARLOW: Yes. A lot of calls on Americans and businesses to do what they can. Obama says he's going to spend $150 billion over 10 years on clean energy. If you look at his proposals, he clearly wants to overhaul our transportation system. Those measures include reducing carbon in fuel, making all new vehicles flex-fuel capable by the end of the first term. Getting 1 million plug-in hybrids on the road by 2015. He wants the average Americans to do more, as well.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: We are going to ask all citizens to participate in that process, not just government. But each and every one of us are going to make commitments in terms of increasing fuel efficient in our cars, in our homes.

(END VIDEO CLIP)

HARLOW: What he's talking about is a renewed commitment to conservation. He wants 10 percent of electricity to come from renewable sources by the end of his first term. He wants to see Americans decrease their use of electricity by 15 percent by the year 2025. And besides just solving the energy problem, this plan for alternative energy is a big part of his job creation plan. Americans care a lot about that right now -- Kyra.

PHILLIPS: All right. Poppy, thanks.

Well, quiz time. One of these guys is 100 percent pure hologram. Can you guess which one it is? Well, you've got a 50/50 shot.

(COMMERCIAL BREAK)

PHILLIPS: Well, two days now after Democrats padded their majority on Capitol Hill. A meeting between Senator Joe Lieberman and Majority Leader Harry Reid. Lieberman, a Democrat turned Independent has caucus with Democrats. But, he actively supported John McCain for president. So, at issue today, Lieberman's future wit the caucus. CNN's Brianna Keilar joins us now live, from Washington.

Hey, Brianna.

BRIANNA KEILAR, CNN CORRESPONDENT: Hi there, Kyra.

Really two things in play here, today. Two questions. The first being, would Lieberman be able to retain his chairmanship on the Senate committee that's in charge of Homeland Security. This is obviously a huge post.

And before the election, Lieberman was really giving the Democrats their 51st vote. Maybe not on issues of the war or on homeland security, but on many other issues. And that 's why it was very important for them to in a way, tolerate the fact that he differed with them on homeland security, on his support for John McCain.

But the other question being whether Joe Lieberman would be altogether kicked out of the Democratic caucus. it appears at least at this point an aide saying that you know, even though Lieberman supported John McCain, even though he said, John McCain was a better choice than Barack Obama, and that John McCain had a proven record and Barack Obama didn't. It appears that the goal here is for Democrats to at least keep him in their caucus, basically their club of how they vote and not the kick him out of that.

But take a listen to Senator Lieberman just a short time ago at a press conference after his meeting with Senate Majority Leader Harry Reid.

(BEGIN VIDEO CLIP)

SEN. JOE LIEBERMAN (I), CONNECTICUT: The election is over. And I completely agree with President-elect Obama that we must now unite to get our economy going again and to keep the American people safe. That is exactly what I intend to do with my colleagues here in the Senate, in support of our new president. And those are the standards I will use in considering the options that I have before me.

(END VIDEO CLIP)

KEILAR: So, you hear there Senator Lieberman saying that he has options. But in terms of his future here on Capitol Hill, we understand from an aide that Harry Reid and Joe Lieberman, in this discussion a short time ago, they have different ideas on things. Both sides though saying, conversations are going to continue. And there's a bit of a deadline on this, Kyra.

The committee that decides how to appoint to different committees, they're going to have a meeting on the week of November 16th or 17th. And this is supposed to be resolved before then. That's the goal, according to an aide.

PHILLIPS: All right. Brianna Keilar, thanks so much.

Well, did you see Will.i.am the other day on CNN? He was absolutely beaming. Yes, we here at CNN are pretty proud of our cool new holograms. They're worthy of Superman's ice fortress. Hey, and Jay Leno's a big fan, too.

(BEGIN VIDEO CLIP)

JAY LENO, HOST OF "THE TONIGHT SHOW WITH JAY LENO": How many saw the hologram? Did you see it? Oh, yes. You know, it was a great idea. Apparently still haven't worked out all of the kinks. I guess they had some sort of intergalactic glitch earlier in the day.

KEVIN EUBANKS, THE "TONIGHT SHOW BAND": Intergalactic?

LENO: Yes. Show what happened when they did the hologram the first time.

WOLF BLITZER, CNN ANCHOR: Right now, I want you to watch what we're about to do. Because you've never seen anything like this on television.

LENO: Intergalactic.

EUBANKS: Intergalactic.

(END VIDEO CLIP)

PHILLIPS: Hey Rick Sanchez, that's kind of how I treat you. Just knock you around all over the place.

RICK SANCHEZ, CNN ANCHOR: A little back slap, huh? A little back slap. All right. I'll remember that.

PHILLIPS: Way to back slap it right into the next hour. Take it away, Rick.