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Unemployment Rate Rose to 6.5 Percent; Protecting Your Job; More Misery in Eastern Congo; Theft in Phoenix Could Put Some 40,000 Kids at Risk
Aired November 07, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: The economy is issue number one for Americans and the president-elect. Just out, new jobless numbers, it is an ugly picture. But part of our focus on Wall Street this hour.
Plus preparing to tackle the financial crisis. Barack Obama huddles with his economic advisers.
It is Friday, November 7th. I'm Betty Nguyen in for Heidi Collins. And you are in the CNN NEWSROOM.
Your money, your job, your latest reason to worry. New jobless numbers this morning and they are brutal. 240,000 more jobs lost just last month. And so far this year, listen to this, 1.2 million jobs have disappeared.
The new unemployment rate, 6.5, that is the highest rate since 1994.
Let's check it out overseas, those markets, well, they're mixed. The Nikkei closed down about 3.5 percent. Markets across Europe, though, are mostly up.
CNN's money team is in place to break it all down for you. So let's begin with CNN's Christine Romans in New York.
All right. Let's look at these numbers. Tell us what they spell out.
CHRISTINE ROMANS, CNN CORRESPONDENT: They spell out a rapidly deteriorating economy and a rapidly deteriorating labor market, and they spell out worries for pink slips and all kinds of different industries.
If you haven't already lost your job, you will be forgiven for worrying that you could, because we have seen 1.2 million jobs lost just in the first 10 months of this year and half of those coming in the last three months. And pretty much every industry affected.
So let's run through what kind of losses we saw just in October. Manufacturing, another 90,000 jobs lost, construction, 49,000, business services, 51,000, retail, 38,000, finance, 24,000.
Where there was jobs growth, health care. This is a trend we have seen again and again. There are growing jobs in health care, and the government and mining. That industry is adding jobs. Now a couple of things here. When the government is consistently the job creator, that is a sign of a weak economy, we've been saying that all year. And some of those health care jobs are coming in at the very low end of the pay scale and they don't have a lot of benefits.
Where there are good-paying jobs in health care, they are doctors and people who run the kinds of equipment in hospitals, the high-tech kinds of jobs, those kind of jobs have been seeing rapid growth and they are projected to keep seeing growth.
So that's a little bit of a bright spot in what otherwise is a very, very grim picture for the jobs market. This isn't seen as sort of the worst in a long line. This is seen as kind of the beginning of the rapidly deteriorating change in the trend here.
A lot of economists telling me they're expecting 200,000 jobs lost, you know, month by month, heading into next year. It is certainly a grave challenge for the president-elect and his economic transition team. And I'm sure this is "ISSUE #1" on their agenda today.
NGUYEN: All right, so the job loss is far from over. What do you do if, one, you have lost your job or you're on the brink of losing your job?
ROMANS: Well, first of all, a lot of people might have their job right now and be worried about their industry. Autos, for example. Ford announcing more job losses and layoffs here today. Anything that touches the -- consumer, there have been a lot of job loss.
Well, we asked Ben Dattner, a workplace consultant, who said, look, don't panic, get additional skills if you even have your job right now and you're thinking about maybe you need to find some additional skills outside your own skill set because those are not in very high demand.
Volunteer with the professional service. You know get out there and make sure you're networking with people in your industry. And avoid using the word unemployed if you lose your job.
You know, say you're between jobs, say you're looking for something new, you're looking for the next challenge, but there's a lot of negative connotations and baggage with the word unemployed.
He says avoid it and consider consulting in the meantime. You know you might not be able to get a job right away or you might be looking at settling it for much, much lower pay jobs much below your skills.
Consider consulting, because you know what? A lot of companies are going to be trying to cut costs, too. And if it means that hiring consultants or temporary labor instead of putting somebody on the payroll, that might be an opportunity.
NGUYEN: All right. Some good advice there. Christine Romans, thank you so much for that.
ROMANS: Sure.
NGUYEN: Well, you know the nation's battered auto industry adds to the bad news today. Ford announces more job cuts and billions of dollars in losses. And next hour, General Motors expected to follow suit.
So is the auto industry doomed? Well, CNN's Brooke Baldwin is outside a GM plant in Warren, Michigan.
All right. So we're hearing more possible cuts at GM. What's the word on the street today?
BROOKE BALDWIN, CNN CORRESPONDENT: Right, Betty, I think the word of the day, you mentioned "doom," also just devastating, devastating news from the already ailing automotive industry.
Two of the big three automotive giants are posing those third quarter earnings this morning. We're waiting for GM. We already have some hard numbers from Ford and let's get right to it.
You mentioned the $2.7 billion pre-tax operating loss for the third quarter. Also they have announced that they will reduce the salaried employment costs by 10 percent. They say that will result in job cuts but they're not giving us hard numbers just yet.
They also plan to cut 2600 hourly workers and plan to sell non- core assets to raise capital.
Take you back now to yesterday in Washington. The execs from the big three, also the president of the UAW, met with House Speaker Nancy Pelosi, other House leaders, to petition for the possibility of some kind of bailout for the auto industry. They're also asking Congress to provide them with a second $25 billion loan.
Now, today, here in Warren, Michigan. Now workers this morning -- we caught up with some when they were changing shifts. They're worried -- they're wondering, not only about this possible bailout for the auto industry, but they're worrying about their own future as they're waiting for this pending announcement from GM later this morning.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: And if -- the big three do go under, Michigan will be in really bad shape. So, all in all, you know, if they need help, I hope the government's there to help them.
UNIDENTIFIED MALE: There's supposed to be an announcement around 11:00 tonight -- 11:00 this morning. I'm sorry. So we'll see what happens then.
(END VIDEO CLIP)
BALDWIN: And you can bet, Betty, they will all be watching. I'm told there's some sort of Closed Circuit TV in plants like this, transmission plant here in Warren, Michigan. They'll be watching that announcement come down at 11:00 this morning.
We are all also watching Barack Obama -- President-elect Barack Obama. He'll be speaking about the economy later this afternoon from Chicago. Watching to see if he might make any kind of announcement about a possible big three bailout -- Betty?
NGUYEN: Yes. We'll be watching that, too, and bring it to you live.
All right, thank you for that.
You know jobs lost, workers worried, how you can survive a layoff. We'll have the latest on that.
And speaking of President-elect Obama, the Obama White House takes shape. And he will be taking center stage.
This afternoon, Barack Obama holds a new conference, his first since Tuesday's election. And this morning, there are new worries about the sour economy that helped clinch his victory.
CNN's Suzanne Malveaux is in Chicago.
So, Suzanne, are we expecting to hear anymore naming of Cabinet members today?
SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Betty, we've gotten word from the transition team, those officials who are actually in charge of all of that, say that they're not going to be anymore announcements, personal announcements this morning.
What they are going to do when it comes to this news conference is focus on the economy. Barack Obama this morning, he'd be meeting with his transition economic team, about 17 folks.
These are people who are head of Time Warner, Google, Xerox, Hyatt, the billionaire Warren Buffett, and many former treasury secretaries, are going to be sitting down, looking at those job numbers, looking at what's happening with Ford and GM and trying to figure out what is the next move.
It's all about Barack Obama trying to show that he is serious about dealing with this financial crisis and then afterwards, he'll be taking reporters' questions.
(BEGIN VIDEOTAPE)
MALVEAUX (voice over): From campaign mode to power mode. Barack Obama's transition is happening at lightning speed. This morning, he sits down with his economic team to address the global financial crisis.
Yesterday, he was behind closed doors. The country's top intelligence official to get his first presidential daily brief, a detailed assessment of all dangers threatening the U.S.
He also returned calls to nine world leaders, including those from England, Japan, France, Israel, and South Korea.
Obama's top priority now to select his Cabinet.
REP. RAHM EMANUEL (D), ILLINOIS: Hey, guys. How's everybody doing?
MALVEAUX: His pick for chief of staff, Illinois Congressman Rahm Emanuel.
EMANUEL: I made a series of phone calls to Democrat and Republican leaders to reach out. They said I don't know how to reach out. I've called it. I've received a lot of calls not only from Democratic colleagues but Republican colleagues who could not have been nicer.
MALVEAUX: The former Clinton White House strategist is widely credited with helping the Democrat seize control of Congress two years ago. He's a Washington insider who Obama says knows how to get things done.
Some Republicans worry Emanuel will set a partisan tone.
KEVIN MADDEN, REPUBLICAN STRATEGIST: The big question is going to be whether or not Barack -- whether or not Barack Obama can sort of reign in some of the partisan instincts that Rahm Emanuel have when he's trying to forge bipartisan coalitions.
MALVEAUX: Also very likely to follow Obama to Washington, his closest associates, top campaign strategist, David Axelrod, as his national adviser, and communications director Robert Gibbs as the likely press secretary.
(END VIDEOTAPE)
MALVEAUX: And Betty, despite the fact that we've given guidance that there are not going to be any personal announcements, it's noteworthy that some of the folks that he's meeting with, his transition economic team, those are some of the names that they're looking at for possible treasury secretary, including the former Federal Reserve chair Paul Volcker, as well as former treasury secretary, Larry Summers.
Those are just a couple of the people that are going to be in that meeting with Barack Obama. But we're told this morning he is going to go for a parent-teacher meeting with his daughters, as well as his wife Michelle. He's going to go to their school.
And then he's going to sit down with Joe Biden, obviously, and this economic team and then come out taking some questions from reporters about what his next moves are, what he believes is the best way to handle this economic crisis -- Betty?
NGUYEN: Yes. A lot of decisions to make. CNN's Suzanne Malveaux -- thank you, Suzanne.
You know, this afternoon, Barack Obama plans to hold his first news conference since being elected president. That time is now scheduled for 2:30 Eastern. So stay here, because we will carry it live.
Reynolds Wolf is in the weather center today.
Reynolds, getting ready for the big weekend. How is it shaping up out there?
(WEATHER REPORT)
NGUYEN: Well, you know, it's just another reminder that hurricane season is not over yet, folks.
WOLF: Yes, I know. Got the rest of November to deal with.
NGUYEN: All right. Thank you, Reynolds.
WOLF: Anytime.
NGUYEN: It has been called the most dangerous place on earth. And the clock is ticking on Pakistan even before Barack Obama takes office. Is the nuclear power a time bomb for the U.S.?
(COMMERCIAL BREAK)
NGUYEN: All right. Want to take a look at the numbers today as we are keeping a very close eye on Wall Street, waiting for that opening bell to ring in just minutes.
So how will investors react to the bleak new unemployment numbers?
We are live from Wall Street as soon as trading opens.
Another suspected U.S. missile strike inside Pakistan. Pakistani military sources say it happened today north of Waziristan, which is a stronghold of al Qaeda and Taliban forces. Nine people were reportedly killed. And it is unclear who those victims are.
Today's attack is the latest in a series of suspected U.S. military strikes in Pakistan. The Pakistan government is calling on the U.S. to stop the attacks, saying they are undermining public support for domestic anti-terror efforts.
So what's happening in Pakistan? That might -- may be one of President-elect Obama's biggest worries when he takes office in January.
Senior Pentagon correspondent Jamie McIntyre has this memo to the new president.
(BEGIN VIDEOTAPE) JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT (voice over): Mr. President, there's a reason Pakistan was the first stop for General David Petraeus after taking over the U.S. Central Command.
Its help is crucial to turning the tide in Afghanistan. And Pakistan's newly elected government is fuming about CIA air strikes in its ungoverned tribal area. Recently General Petraeus admitted to CNN he got an earful in that first meeting with Pakistan's leaders.
GEN. DAVID PETRAEUS, U.S. CENTCOM COMMANDER: We got certain messages with each of those with whom we talked today and some of those were very clear and we have to take those on board.
MCINTYRE: Pakistan says its desire to remain a U.S. ally was severely undercut by the Bush administration's support for former dictator Pervez Musharraf. It handed al Qaeda and the Taliban a winning argument.
HASSAN HAQQANI, PAKISTAN AMBASSADOR TO THE U.S.: The Jihadist groups in Pakistan were able to make the argument that fighting the Jihadists is essentially an American war and Pakistan is just being America's lackey.
MCINTYRE (on camera): In the range of problems facing the new president, where does Pakistan lie?
HARLAN ULLMAN, ATLANTIC COUNCIL: In terms of foreign policy, it's number one.
MCINTYRE (voice over): Harlan Ullman is a military thinker who famously coined the phrase "shock and awe,' though he claimed the strategy was bungled in Iraq. Now Ullman is focused on Pakistan where he sees potential disaster.
ULLMAN: You could see partition, you could see civil war, you could see a failed state. My view is we have about six months to get our collective acts together.
MCINTYRE: Ullman advises stopping and then better coordinating American cross border attacks. But the more immediate problem he suggests is Pakistan's precarious economy.
ULLMAN: They cut its food subsidies and its energy subsidies to reduce the budget deficit. As a result, you've got people starving. You got riots in Karachi.
MCINTYRE: Ullman says an immediate investment of about $10 billion, a tiny fraction of the $1 trillion U.S. financial bailout could go a long way to shore up a key ally.
(END VIDEOTAPE)
NGUYEN: And Jamie McIntyre joins us live.
OK, Jamie, so, if Pakistan is so upset about the CIA air strikes, will the Obama administration halt them? MCINTYRE: Well, you know, they're going to have to really think about that hard. Because while the U.S. believes these strikes have been effective and we've certainly seen a lot more of them in the waning months of the Bush administration aimed at Taliban and al Qaeda members in that sort of unreachable, ungoverned area of Pakistan, along the Afghanistan border, it really has undermined the political support within Pakistan and there's going to be a lot of pressure on President-elect Obama to change that policy, to dial that back.
Of course, he's going to want to consult with General Petraeus who just took over the U.S. Central commander for his thoughts on that. But it's one of those things where you're really going to have to weigh the cost benefit. And it may be a place where the new administration wants to chart a new course.
NGUYEN: All right. CNN's senior Pentagon correspondent Jamie McIntyre joining us live today.
Thank you, Jamie.
You know it was overshadowed somewhat by the presidential election, but California's new ban on gay marriage could be headed to the Supreme Court days after it was approved by voters.
The measure is still fuelling angry protests and CNN's Chris Lawrence has that story.
(BEGIN VIDEOTAPE)
CHRIS LAWRENCE, CNN CORRESPONDENT (voice over): Voters approved California's gay marriage ban on Tuesday, but it's already back in state Supreme Court. And if it stands, Proposition 8 could undo the "I dos" of thousands of couples.
ROBIN TYLER, MARRIED IN JUNE: It would not alter our personal relationship, but we would be very angry that they would deny equality to us as a couple.
LAWRENCE: Robin Tyler and Diane Olsen have just filed a lawsuit to overturn Prop 8. They've been together 15 years, and when the court ruled in May that same-sex couples have the right to marry, they did.
TYLER: We need to establish the precedent that a majority cannot take away rights from a minority.
LAWRENCE: They argue that Prop 8 is so far reaching, it is not just an amendment to California's constitution, but a more serious revision that removes basic rights.
TYLER: This is marriage segregation.
LAWRENCE: But exit polls show most African-Americans did not connect this issue to civil rights. 70 percent voted to ban same-sex marriage, which disappointed some. HELECIA ROBINSON, OPPOSES PROP 8: They were brought up in a church to believe that homosexuality is wrong and it's a sin, and I believe that's the only reason.
LAWRENCE: Supporters say these legal claims ignore the will of California voters.
MARVIN PERKINS, SUPPORTS PROP 8: We're saying let's not redefine marriage. You have the same rights, let's just leave marriage alone.
LAWRENCE: Marvin Perkins is Mormon. And his church also became an issue in the election. The Latter-Day Saints urged members to campaign for the ban.
(On camera): A lot of people weren't happy with that so they took to the streets blocking off part of Santa Monica Boulevard and chanting "Shame on you" outside the headquarters of the Mormon Church here in Los Angeles.
(Voice over): Some estimate Mormons gave more than half of the money raised in support of Prop 8. It passed on Election Day, but the fight's not over.
Chris Lawrence, CNN, Los Angeles.
(END VIDEOTAPE)
NGUYEN: Attacking the candidates' computers, behind the security breeches at the McCain and Obama campaign.
(COMMERCIAL BREAK)
ANNOUNCER: "Making Their Mark" is sponsored by...
NGUYEN: You know, it's Friday, and time to recognize the newsmaker who most shaped the week. That's an easy choice.
"Making Their Mark," Barack Obama, president-elect and the first African-American elected to the nation's highest office.
Minutes from now, at the bottom of the hour, we're going to take a closer look at the transition of power.
The U.S. Secret Service kept close watch on the presidential candidates during the grueling campaign season. But it looks like no one was protecting the campaigns from international computer hackers?
CNN's Brian Todd reports.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice over): In the midst of what was shaping up as a tight race, a major security breech of both presidential campaigns.
In mid summer, computers at the headquarters of the Obama and McCain campaigns were hacked by a foreign government or organization. That's according to a source with knowledge of the incidents, who told CNN, the intrusions were sophisticated and appeared aimed at gaining information about policy in order to have leverage in future dealings with whoever was elected.
We asked an Internet security expert how would this foreign entity get into the campaign systems.
RAY DICKENSON, INTERNET SECURITY EXPERT: If I want to penetrate an organization, I'm going to send e-mails to members of that organization. It'll be no problem at all for me to find somebody who's gullible enough to click on a link.
Once they do that, I know the computer that I've gotten on to, I know that I'm inside that organization and now I can start to spread within that organization.
TODD: The story was first reported by "Newsweek" whose reporter Daren Briscoe was embedded with the Obama campaign.
Briscoe found out about the breaches not long after they occurred. But under an agreement with the Obama team reached before the campaign started, he was not able to report any information until after the election.
Briscoe reports technology staff at the Obama campaign had detected what they first thought was a virus put in place to steal passwords or credit card numbers. Then...
DAREN BRISCOE, NEWSWEEK: The FBI and Secret Service show up at the campaign headquarters and announced to them that they have a much bigger problem than they -- actually understand.
The following day the campaign gets a call from Josh Wilson at the White House, and he says pretty much the same thing, like, look, you will have a serious problem and you need to deal with it.
TODD: Neither the FBI nor the Secret Service would comment on the story. It's believed both campaign's headquarters were hacked into about the same time last summer.
(On camera): We're told by a law enforcement source familiar with the investigation that when both campaigns were approached by federal authorities with information on this hacking, they both hired private companies that were able to mitigate the situation.
Brian Todd, CNN, Washington.
(END VIDEOTAPE)
NGUYEN: More job losses, will that lead to more market losses? Wall Street opening as new unemployment report comes out.
(COMMERCIAL BREAK)
NGUYEN: The opening bell is about to ring on Wall Street. Actually, I'm not sure if it already has. Yes -- no, we're waiting just a few seconds away. They're clapping in anticipation.
There you go. It has rung. Investors have a lot on their plates today. So, let's get straight to it, shall we?
Stephanie Slam joining us at the New York Stock Exchange for an early look at the trading day.
Good morning, Stephanie. The news hasn't been so good with the jobless rates. How are the markets faring?
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: That's true, Betty. The news was not good at all. And there's been a lot of downward economic pressure for the markets to deal with today. But futures actually held it together this morning. And we are actually seeing a positive open right out of the gate. Since Election Day, we've seen the worst two-day percentage drop for the Dow since October 1987. That's a drop of a total of 929 points.
Investors refocus on the state of the troubled economy today and the dismal job market. And here are the job numbers. We've got to take a look at this for October. The economy lost 240,000 jobs last month. That's terrible. And even more terrible than we expected. Jobs have shown a loss every month this year and are now pulling almost 1.2 million jobs that have been lost in this year so far.
And the unemployment rate, it rose to 6.5 percent. That's the highest it's been since 1994, and also worse than expected. Then on top of that, for the 28th month in a row, we've seen a decline in many manufacturing, with another 90,000 jobs lost in that sector. And we also know that more job losses are on the way. It's not done yet because we're in November.
And today, Ford announced more job cuts and promised to cut salary employment costs by 10 percent. Ford posted a $3 billion loss and went through an alarming amount of cash last quarter. Ford shares are actually up right now 4.5 percent. Then on to General Motors, it's supposed to report its earnings later on this morning. The big three are pleading for immediate financial help from Congress. House Speaker Nancy Pelosi said she wants taxpayers to get something back for their assistance, namely a faster rollout of more fuel efficient vehicles. GM shares are also up about 4 percent right now.
Then Obama, President-Elect Obama, meeting with a team of economic advisers, including Warren Buffet. No wonder the economy is issue number one for the President-Elect at this point. Let's go ahead and see where the numbers stand.
The Dow up 94 points, 87.90. I told you, they are holding on there. Nasdaq up 20 at 1628. The S&P 500 up right now, as well, Betty. So, we'll see what happens as the day progresses with these job numbers being ingested by investors at this point.
NGUYEN: Hey, it's not bad to go straight out of the gates with numbers in positive territory. We'll see if they'll hold on to that.
OK, thank you, Stephanie. ELAM: Definitely.
NGUYEN: You know, nothing affects your wallet more than your job. So, how do you protect your paycheck? CNN personal finance editor Gerri Willis joins us with some advice.
And we need a whole lot of it today, considering those jobless numbers, Gerri.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Yes. The numbers were not positive, Betty. But, you know, you probably don't have the power to fix the stock market, or keep home prices in your neighborhood from dropping. But there are a few things you can do to keep while your spending your debt in line and, of course, your job. Even when companies are laying off workers, you're going to improve your chances of just sticking around.
Betty?
NGUYEN: All right. You know, and speaking of sticking around, a lot of people just making sure that that job is, you know, something they can go to --
WILLIS: Right.
NGUYEN: Monday through Friday, so they can get that paycheck. But in order to stick around, you say suck up to your boss? Are you serious?
WILLIS: I'm telling you, Betty. Listen. You know, right now, bosses all across the country are deciding who will stay and who will go. You've got to make sure your boss knows you're a value to the organization. If you contributed to the bottom line or landed a valuable client this year, make sure that information has gotten through any middle managers and landed right on your boss' desk, so he knows you're the person who did what needed to be done.
Establish a niche that you can own. Make yourself indispensable. You've also got to raise your profile. Find ways to help your company save money. Look, all managers are focussed on cutting costs right now. If you can help do that, you're a big winner. Be creative. If the higher ups know you were responsible for the businesses latest, greatest idea, they won't want to see you go. And be sure to take on those additional projects, especially high profile projects or across departmental projects that will get your name out across the company. Make sure you're going above and beyond, put in those extra hours and, of course, as I say, suck up to the boss. It's that time to do it.
NGUYEN: All right. And keeping that in mind, would you tell Jon Klein, I said, hello?
WILLIS: That's my next call.
NGUYEN: OK, exactly. OK. But on top of that, I mean, you need to make sure that you are prepared, that you have all the skills that you need, and even acquiring new ones, should that be necessary, correct?
WILLIS: Right. You know, you've really got to ratchet up your skills here. If your company offers training classes, take them. Learn a new software system. Get up-to-date on innovations in your industry. And think about taking a class, maybe at a local college or even better, online college programs. They're inexpensive and it can be done easily. You know, when you're not working.
Maybe you can take a foreign language class or a business class. The more up-to-date your skills, the more skills you have, the harder it is going to be to fire you. Join a trade organization. Network with other people who can help you learn more about the industry, make connections for you and your company, and other companies. Because it's critical to have those connections outside your own company, as well.
NGUYEN: Absolutely. All right, Gerri Willis, with some really good advice. I never thought I'd ever hear it. But hey, suck up to your boss. That doesn't include, you know, just saying silly stuff or bringing flowers, or junk like that. I mean, this is just letting them know that you are important, here's why.
WILLIS: Exactly. Exactly. And of course, Betty, too, you want to get a mentor. Seek out somebody in the company who you respect, who can teach you about the company, what you can do there. Not only can that person help guide your career and keep you on track, here, she can also make you aware of great opportunities. Influence the higher ups when they're making those job cutting decisions. The more people you have watching your back, the better off you'll be when the boss start handing out those pink slips.
NGUYEN: Yes. You want people in your corner. Gerri Willis, thanks for being in our corner today. We appreciate it.
WILLIS: My pleasure. Thank you, Betty.
NGUYEN: Let's talk about world affairs and the economy right now. President-Elect Barack Obama made calls to nine heads of state yesterday. But today, he is focusing on the troubled economy. He's going to meet with a team of economic advisers. And this afternoon, he will hold his first news conference as President-Elect.
Now, yesterday, Obama was at FBI headquarters in Chicago for an intelligence briefing. He also named Illinois Congressman Rahm Emanuel as his White House chief-of-staff. A lot going on there. And this reminder that we will take you live to President-Elect Obama's first news conference that takes place today. It is set to get underway at 2:30 Eastern.
Texas's oil tycoon. T. Boone Pickens says Barack Obama understands what has to be done to fix the nation's energy problems. Pickens has outlined his own plan to reduce U.S. dependence on foreign oil. And last night, Pickens sat down with CNN's Larry King.
(BEGIN VIDEO CLIP) T. BOONE PICKENS, FOUNDER AND CHAIRMAN, BP CAPITOL MANAGEMENT: You've got to fix the energy issue because just look at the 40 years that have passed, no energy plan, zero. If we go forward for ten years with no energy plan, we got the picture in the last year. Go back five years and the OPEC nation's revenues were 250 billion. This year 2008 will be $1.250 billion. Now, go forward ten years and say we have no emergency plan. We will be import 75 percent of our oil, which is a huge security problem for America. And we will be paying $300 a barrel for the oil.
(END VIDEO CLIP)
NGUYEN: Be sure to tune in at 9:00 p.m. to CNN's "Larry King Live."
Barack Obama has to make some big decisions as he starts putting together his new government. So who will he choose as secretary of state to help guide his foreign policy agenda?
State Department correspondent Zain Verjee joins us live from Washington.
All right, Zain a lot of questions for you. You can tell us today. I understand that a few names already being mentioned. So, line them up, who are they?
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Absolutely. There's a lot of jockeying for the position of secretary of state. There are four prominent names out there. Republican senator Chuck Hagel is one of them. He's on the senate foreign relations committee. He's a Vietnam veteran. He traveled with President-Elect Obama recently to Iraq and Afghanistan, and he has been one of the Bush administration's toughest critics on the war in Iraq, on the war on terror.
Next up, Senator John Kerry. He was the 2004 Democratic presidential candidates. He's on the Foreign Relations Committee. He's a Vietnam veteran. And he actually helped normalize relations with Vietnam. The Republican Senator Richard Lugar is another name that's out there. He's a former chairman of the Foreign Relations and Agriculture Committees.
The Lugar non-program that he was involved -- and really destroyed more than 7,000 Soviet nuclear warheads. So, he really knows a lot about Russia, and that's something the U.S. is going to have to confront pretty soon. Also, Bill Richardson, the former secretary of energy and the former U.S. ambassador to the U.N. He's really been a global trouble-shooter. He's been going to places like Sudan, North Korea, and Iraq. So, those are some of the names out there, and a lot of behind the angling for the job, and there are a lot of qualified people.
Betty?
NGUYEN: Well, and speaking of those who might be qualified for this. Any of those dark horses in the race? VERJEE: Yes, there is one name that emerges as a possibility. General Jim Jones. He was the supreme allied commander for Europe. He's advised Secretary of State Rice on the Israeli-Palestinian crisis. And this man has a reputation of being very outspoken and independent. He's also highly regarded by the military, by Congress, and many say that he has a good understanding of the diplomatic components involved in the kind of work that he's done. On another note, Vice President-Elect Joe Biden, we should also look out and see how he handles things at the State Department too. Because he's a foreign policy heavy weight and he'll likely want a role in shaping foreign policy, even from the vice president's office.
NGUYEN: Yes. You know, he's going to weigh in. OK, Zain Verjee joining us, live. Thank you, Zain.
VERJEE: Thanks, Betty.
RUIZ: Secretary of State Condoleezza Rice says that she is confident the Mid-East Peace Process will ultimately succeed. Yesterday, the White House conceded, and Israeli Palestinian, peace deal will most likely not happen while President Bush is still in office. Now Rice is in the West Bank for talks with Palestinian leaders about Mid-East peace negotiations.
She met with Israeli leaders a little bit earlier today. Rice says while reaching an agreement by the end of the year is no longer realistic. Other, goals, reached at the peace talks in Annapolis, Maryland, last November are still very much alive.
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CONDOLEEZZA RICE, SECRETARY OF STATE: Moving forward on the peace process. But we remember that other pillars were established at Annapolis as well. And those pillars cannot be separated. Indeed, the work that is being done on the ground to improve the lives of the Palestinian people, the work that is being done to build the democratic institutions of a Palestinian state.
(END VIDEO CLIP)
NGUYEN: Rice and other mediators are scheduled to hold talks in Egypt on Sunday with Israelis and Palestinians.
All right, let's get a look at the weather center today. And our very own Reynolds Wolf talking a hurricane.
I see something moving behind you or a tropical storm.
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NGUYEN: All right. And I want you to stick around for this next story. It's really -- just stay here. Probably the only thing worst, Reynolds, than being a lame duck president, being a lame duck dog. Check it out.
Barney, the White House dog, look at those fangs. Apparently, in a very bad mood, bit -- yes, he tore the skin -- bit a White House reporter. Close shot, you saw the teeth there. The reporter was bandaged by a White House doctor and was prescribed antibiotics.
Again, look at the fangs on Barney. Who knew? First Lady Laura Bush said Barney was probably fed up with, quote, "paparazzi." Of course, news that a puppy is about to move into his house probably isn't helping his mood any in. Right now, we're being told that Barney so far still in the dog house.
All right. A small town gave him a vote of confidence, and now the new mayor is just busting to get to work.
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UNIDENTIFIED MALE: Honestly, I'm having more fun than a drunken cowboy with a brand new pick-up.
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NGUYEN: OK. Change is a real part of this, winning candidate's life.
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NGUYEN: All right. I want to give you a look at some of the stories that we are watching for you on this Friday. First up, the market's in positive territory. Look at the Dow, up 76 points. That is good news considering the jobs report that has been released today by the Labor Department.
For the month of October, we have lost 240,000 jobs. For the year as a whole, lost 1.2 million jobs. And of course, the economy is going to be on President-Elect Obama's mind today. He has a meeting dealing with his economic advisers and will hold a press conference following that at 2:30 Eastern today. We will take that live.
More misery in Eastern Congo to tell you about. Fighting broke out again today between rebels and Army forces just outside of the capital of Goma. The shooting lasted about 1/2 hour, panicking thousands who had fled their homes to escape the violence. A U.N.- sponsored Peace Summit is being held in Kenya. And CNN's David McKenzie is there. He joins us now live.
What are you hoping to hear today, David?
DAVID MCKENZIE, CNN CORRESPONDENT: Well, what we're hoping to hear, Betty, is some kind of solution to this awful situation in eastern Congo. As you said, there was a cease fire that had been broken down. They'd been fighting north of Goma, the provincial capital and north Kibu, that part of eastern Congo, that has seen years of protracted violence and problems for the civilians.
There's a top-level delegation here in Nairobi, including Ban-Ki- Moon, the U.N. Secretary General, and the leaders of the countries that are involved in this crisis. You know, Betty, I've been to this region a number of times in the past five years. And what strikes me is that no matter how things improve, they then just go back to what the situation was before. 5 million people have died in the Congo because of violence and disease in the past decade. But in the last few months, there's been a real upsurge of that. I spoke to a U.N. official who said over 250,000 people have been pushed from their homes because of rebel leaders, like Laurent Nkunda, the FDOR, which is a the Rwandan group -- I mean, a Congolese group. There's a protracted problem there for the civilians.
Betty?
NGUYEN: Well, hopefully, some progress can be made today. David McKenzie, joining us, live. Thank you, David.
Now, if you want to find out how you can help people in need. Here's what to do. Log on to our Web site cnn.com/impact.
Stealing identities. The theft in Phoenix could put some 40,000 kids at risk. It is a wake up call for all parents.
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NGUYEN: Well, we are keeping an eye on Wall Street. Less than a half hour after the opening bell, still in positive territory, up 37 points. How are investors reacting to the latest grim news on the job losses? We're going to have a live look at the big board, coming up a little bit later as well.
Well, you know, children, they are vulnerable to identity theft. Really, they are. An alert sent to parents in Arizona. You got to listen to this. A storage facility in Phoenix was broken into. And here's what happened. Missing a computer hard drive with the personal information of about 40,000 children. Everything an identity thief would need. So, here is some advice for parents.
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TODD DAVID, CEO, LIFELOCK: Contacting the social security administration and asking for a work history for their child. You want the answer to be "one does not exist." That's the right answer. But you want to regularly ask, at least once a year, make that request so that it's something has happened, you detect it early.
(END VIDEO CLIP)
NGUYEN: OK. So, although, they have issued the warning to parents, officials think that thieves may not know what they really have.
In other news, four marines charged with murder and robbery in California won't be arraigned for another two weeks. The men are accused of killing a fellow marine and his wife in their home last month. Prosecutors say the marines have broke into the couple's home, looking for valuables, and then sexually assaulted the wife before shooting both of them in the head, execution style. Documents say the marines confessed their crimes to investigators. A second day of jury deliberations in the Brian Nichols case. Nichols is accused of killing four people during his escape from an Atlanta courthouse in 2005. He faces the death penalty. Nichols say he was legally insane at the time.
And there are no charges for disgraced former New York Governor Eliot Spitzer. Prosecutors say they won't press charges in connection to the prosecutions scandal that forced Spitzer to resign earlier this year. Investigators say they found no evidence Spitzer misused public or campaign funds. He resigned in march after he was identified as client nine in the investigation of an escort service.
Well, change is definitely in the air this election. Take Stu Rasmussen, for example. He ran for mayor of an Oregon town, a post that he had previously held, but he was a different candidate this time around. And we're not talking about switching parties. Jack Penning from our affiliate, KGW, has the story.
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JACK PENNING, KGW CORRESPONDENT (voice-over): A small town of 10,000 in the heart of the Wulamad (ph) Valley, now a center of political attention.
UNIDENTIFIED FEMALE: Congratulations. Very happy, and everybody, is happy for you.
PENNING: The mayor-elect is the most popular guy here.
UNIDENTIFIED MALE: Stu, is a very, very devoted to this town.
UNIDENTIFIED FEMALE: He wants to maintain the integrity of Silverton.
PENNING: Stu won by 13 points even though Stu --
UNIDENTIFIED MALE: You're on the Water St. in downtown Silverton.
PENNING: Doesn't look like a Stu.
MAYOR-ELECT STU RASMUSSEN, SILVERTON, OREGON: Some guy's mid- life crisis is sports cars or motorcycles, or climbing mountains, or trophy wives, or whatever. I always wanted cleavage. So I went out and required some to be excellent.
PENNING: Don't get him wrong. Stu is still a man. He has a girlfriend.
RASMUSSEN: I identified mostly as a heterosexual male. But I just happen to like to look like a female.
UNIDENTIFIED FEMALE: Congratulations. I just want to say, hi.
UNIDENTIFIED MALE: Thank you. PENNING: Stu went public as transgender a few years ago. He wasn't sure what to expect.
RASMUSSEN: The first 30 seconds I think, am I in a freak show? Is there a camera behind me? What's going on here? And then we get down to discussing whatever the issue is, whether its city business or business or whatever, and they figure out, oh, well, this guy is different, but he knows what he's talking about. I was born here.
PENNING: Sure, Stu has been the target of insults and hate. But this little town gave him a huge vote of confidence.
RASMUSSEN: Well, I'm prejudice, but I think this is just about the coolest town on earth. A little emotion. Sorry.
UNIDENTIFIED FEMALE: I think it's amazing that a small town like this could be so open-minded to someone that's made a life change.
UNIDENTIFIED FEMALE: Lovely how it happens the way you want it to.
RASMUSSEN: It does.
UNIDENTIFIED FEMALE: Great. Good job.
RASMUSSEN: Thank you.
Hi, Cory.
UNIDENTIFIED MALE: You are very well known.
RASMUSSEN: Yes. I'm hard to miss.
PENNING: Never afraid to poke fun at himself, Stu can't wait to take office.
And honestly, I'm having more fun than a drunken cowboy with a brand new pickup.
UNIDENTIFIED MALE: This has always been a bar.
RASMUSSEN: Finally, confident enough to be himself as he runs his hometown in heels.
(END VIDEOTAPE)
NGUYEN: Well, Stu Rasmussen was born and raced in Silverton. He has been an elected official for 20 years.
Health care reform, a top priority for President-Elect Obama. Our Dr. Sanjay Gupta looks at the plan.
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