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Could Congress be Close to Deal for Automakers?; Interview with Quincy Jones; Big City Execs Look for Federal Money to Help Urban Problems; Merrill Lynch CEO Still Pushing for Bonus
Aired December 08, 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: The next hour of CNN NEWSROOM starts right now.
(BEGIN VIDEOTAPE)
PHILLIPS (voice over): Mayors mount up. A posse of big-city executives rides in to Capitol Hill aiming to score more money for urban problems.
The Blackwater five turning themselves in to face manslaughter charges. They say the bullets that killed 17 Iraqis were shot in self- defense.
A creative genius who changed the music world. A humanitarian working to change ours. Mr. Quincy Jones is being honored for his global good deeds. And he joins us live.
(END VIDEOTAPE)
PHILLIPS: And hello, everyone. I'm Kyra Phillips live in the CNN World Headquarters in Atlanta. You're live in the CNN NEWSROOM.
Relief from recession, big-city mayors want it, and analysts don't expect it and U.S. car companies may just get it but not as much as they're asking for. Here's where we stand right now. The mayors say that when cities prosper, America prospers and vice versa. They want a surge of federal spending on urban infrastructure. The employment trends index is on the skids and that's readings based on jobless data and it's dropped 13 percent in a year. Analysts say that it could signal 3 million lost jobs by the middle of the year. But help could be just around the corner for the Big Three. Lawmakers and the White House are said to be all but agreed on roughly $15 billion in emergency loans with strict government oversight.
Now, what do big cities have in common with the Big Three and the banking industry -- and overextended homeowners? Well, the cities are getting battered in the economic storm, too, and they, too, want federal help. Today in Washington, the mayors of New York, L.A., Chicago, and Miami sought to put a lot more federal money on the streets, literally.
(BEGIN VIDEO CLIP)
MAYOR MICHAEL BLOOMBERG, NEW YORK CITY: Instead of borrowing more money to dole out rebate checks that don't seem to stimulate growth, Washington, we think, should use our recovery funds to create middle-class jobs and invest in the future by rebuilding the key elements of our infrastructure. And by renovating and expanding our mass transit networks.
MAYOR MANNY DIAZ, MIAMI: We are not here for a bailout. We are here to help build out America and put Americans back to work, to support congressional efforts to stimulate our economy. And to strongly endorse President-elect Obama's call for a long-term economic recovery plan that creates or saves 2.5 million jobs over the next two years.
(END VIDEO CLIP)
PHILLIPS: Well, the mayor of Detroit is no doubt relieved to here a Big Three rescue plan is on track in Congress, after all. It isn't nearly as big as GM, Chrysler, and Ford say they need, and it comes with some pretty strict conditions. CNN's Dana Bash has the quickly moving developments on Capitol Hill.
Dana, what's the latest?
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: The latest is that the House speaker and her Democratic colleagues and some Senate Democrats are meeting behind closed doors, as we speak, here in the Capitol. But it looks as though, as far as the Democrats are concerned, they do have the draft of what they want to -- to send to the White House.
In fact, they might be sending it as we speak, Kyra; the draft of this loan program for the auto companies. It is, as you said, not as much as they had wanted. It is a short-term fix. It's $15 billion in loans that would go through very soon, by December 15th.
And the key really has been, for Democrats and Republicans alike, has been accountability, to make sure that any money that the taxpayers send to the auto companies will go along with some heavy restructuring. The way that the -- this is being written is to have the president appoint what is being known as a car czar, somebody who will be in charge of making sure that the companies restructure themselves. And that will be -- there will be deadlines that the car czar will give to Detroit on January 1st, according to the draft of legislation provided to us by Democratic sources.
Now, this is the clincher here, Kyra. If this car czar determines that there isn't enough progress being made in Detroit in terms of restructuring their companies by February 15th, by February 15th , these loans could be revoked. That would be up to this so-called car czar.
Now, an interesting aspect for people following the ins and outs of negotiations over this, there was discussion about having -- in addition to this single person -- an oversight board with Cabinet officials from across the president's Cabinet. I'm told by one Democratic source it looks like that is not going to be the case. Instead it will just be this one individual who will have a lot of discretion over this money.
But the bottom line is, things are moving. It looks like this is going to the White House for the White House's review. But listening to the White House Spokeswoman Dana Perino, this morning, it sounds as though, at least in the broad outlines, this is pretty much what they were looking for. But we have talked enough about legislation as it is going through the works here, the devil is in the details, and we'll wait to see what happens in the next couple of hours, Kyra.
PHILLIPS: All right. Dana Bash, we'll be tracking it with you. Thanks so much.
BASH: Thank you.
PHILLIPS: Union autoworkers are keeping up the pressure with a Michigan-to-Washington caravan. They set out yesterday, arrived today, and marched to Capitol Hill. The UAW is agreeing to renegotiate much leaner contracts to help keep the industry afloat.
Call it a bailout revival, Motor City style. Autoworkers in Detroit appealed to the Almighty yesterday for help keeping their industry rolling. Three white SUVs were parked next to the pulpit of the Greater Grace Temple, one from each of the big three. A Ford Escape, a Chevy Tahoe from GM, and a Chrysler Aspen. Thousands of parishioners prayed that automakers get the money they need. The bishop of the Greater Grace Temple and other Detroit ministers plan to fast until Congress acts.
Now to Chicago where a stand-off at a window factory has led to a government boycott of Bank of America. Susan Roesgen is there.
(BEGIN VIDEOTAPE)
SUSAN ROESGEN, CNN CORRESPONDENT (on camera): We still haven't heard anything from company management here about why they laid off 300 workers with just three days' notice. And because the company managers haven't said anything, the union workers say they smell a rat. They blame the company's lender, Bank of America, for cutting the funding. And the Governor Rod Blagojevich agrees.
GOV. ROD BLAGOJEVICH, (D) ILLINOIS: How come it's OK for some of these banks, who've messed things up in a significant, substantial way that it's trickled down to impact the lives of ordinary, average people, and ordinary, average Americans, who every day work?
ROESGEN: The Illinois governor says he is going to push for a temporary restraining order to try to stop the company from closing before it pays the workers their severance. Also, the governor says this state will no longer do business with "the rats". The governor says the state of Illinois will no longer conduct any business involving Bank of America, which could cost Bank of America millions of dollars.
Bank of America is supposed to meet with union leaders later today. We don't know if the company managers will be there or not. But everyone hopes this issue can be resolved.
Susan Roesgen, CNN, Chicago.
(END VIDEOTAPE)
PHILLIPS: The number of job cuts in the U.S. are mounting as the year draws to a close. Last week alone, nearly 45,000 lay-offs were announced. Susan Lisovicz at the New York Stock Exchange with the latest companies that are slashing workers and a look at how the market is faring now.
Hey, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hello, Kyra.
Well, stocks are rising, but the head count is shrinking at several well-known companies. Shortly before the opening bell, 3M said it would cut 1,800 jobs from its global workforce. It's also reportedly telling some workers to take vacation or unpaid time off these last few weeks of the year. In the last hour, Anheuser-Busch- Inbev announced it's cutting 1,400 positions in the U.S. or about 6 percent of its workforce. This is coming just weeks after its merger with the Belgian brewer. Also, Dow Chemical plans to slash 5,000 full- time jobs as well as close 20 plants. Still, shares of Dow are up 8 percent, right now.
Oftentimes investors like to see companies trying to get their financial house in order to get through these rocky times. The overall market, anything but rocky. It's been a very nice, smooth rally today. An extension of what we saw on Friday. The Dow industrials right now up 249 points or 3 percent. The Nasdaq and the S&P 500 up 3 percent as well.
Wall Street firms have also been certainly facing the most drastic downsizing since the Great Depression, but that's not stopping some executives from pursuing a big pay day. Sources tell CNN Merrill Lynch CEO John Thain is pushing for a bonus of up to $10 million. The company's compensation committee is pushing back. Merrill has sustained losses of nearly $12 billion this year and is being acquired by Bank of America. Thain's argument is that it would have been a lot worse without him at the helm for the past year.
The New York's Attorney General Andrew Cuomo calling Thain's request, quote, "nothing less than shocking and unjustified," end quote. The last half hour, we received word that The Tribune Company has filed for bankruptcy protection. The owner of "The L.A. Times," "Chicago Tribune," Wrigley Field and CareerBuilder.com has continued to be pressured by high debts. These are hard times that we're getting through right now, Kyra.
Back to you.
PHILLIPS: Yes, it sure is. Susan, thanks.
LISOVICZ: You're welcome.
Tough times all around, especially for the auto industry. We'll find out more about President-elect Barack Obama's plans to get the economy humming again.
And self-defense or something else? Five former Blackwater security guards surrender and face federal charges.
(COMMERCIAL BREAK)
PHILLIPS: Well, with the economy in the tank, Barack Obama is staring some tough times in the face as he gets ready for his swearing-in. He's already hard at work preparing for those tough days ahead. CNN's Elaine Quijano joining us live from Chicago with all those details.
Hi, Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hi there, Kyra.
President-elect Barack Obama is still avoiding putting any kind of specific dollar figure on his economic recovery plan, but analysts all agree it is going to have to be huge in order to jump-start to U.S. economy, somewhere in the neighborhood of hundreds of billions of dollars.
Now, Mr. Obama said yesterday that his administration is going to make decisions on that economic recovery plan with an eye towards America's long-term financial health.
(BEGIN VIDEO CLIP)
BARACK OBAMA (D), PRESIDENT-ELECT: Fortunately, as tough as times are right now -- and things are going to get worse before they get better -- there is a convergence between circumstances and agenda. The key for us is making sure that we jump start that economy in a way that doesn't just deal with the short-term, doesn't just create jobs immediately, but also puts us on a glide path for long-term, sustainable economic growth.
(END VIDEO CLIP)
QUIJANO: Now, the president-elect did shed some light on how he plans to deliver those 2.5 million jobs that he promised. He said that he plans to launch the largest public works project since the creation of the federal highway system back in the 1950s, certainly a big project. Now, Mr. Obama said as part of that plan, they're looking at doing things like modernizing schools and upgrading federal buildings to make them more energy efficient. Mr. Obama believes that will not only save taxpayer dollars but also help put people back to work, Kyra.
PHILLIPS: Over the weekend, we heard Senator Chris Dodd call for the head of GM to actually step aside. Does the president-elect share that view? Do you know?
QUIJANO: You know, we don't know, because in fact, President- elect Obama was asked that question yesterday during a news conference and he side-stepped that specific question about Rick Wagoner's future and whether or not he should step down. Instead, what the president- elect said is, look, these automakers and the managers at these companies know that there are some stuff decisions that are going to have to be made with this restructuring, if they're going to get any kind of government money.
If there are managers, he said, who are unwilling to make those decisions, those difficult business choices, then those managers should step down. But he did not answer directly, Kyra, when asked about whether or not Rick Wagoner of GM should step down, Kyra.
PHILLIPS: Well, it's going to be interesting to see who does step down, if any of them do. Thanks, Elaine.
QUIJANO: Sure.
PHILLIPS: Well, he's not the president yet, but Barack Obama is already being pressed to do more about the economy. So what can he do?
Here's CNN's Jason Carroll.
(BEGIN VIDEOTAPE)
JASON CARROLL, CNN CORRESPONDENT (voice over): When it comes to dealing with the housing crisis, the president-elect says the current administration isn't doing enough.
OBAMA: My team has had some conversations with the administration about that. If it is not done during the transition, it will be done by me.
CARROLL: Some are questioning why he isn't doing more now.
REP. BARNEY FRANK, (D) MASSACHUSETTS: He's going to have to be more assertive than he's been.
CARROLL: Especially since Obama says the country has not yet seen the depths of the economic crisis.
OBAMA: Things are going to get worse before they get better.
CARROLL: Some analysts argue more immediate action is needed. But action from the current president, the incoming one, or both? Obama has said there can only be one president at a time.
ROSS DOUTHAT, ATLANTIC.COM: Barack Obama doesn't want to be responsible for anything that goes wrong between now and the moment that he takes office.
CARROLL: Obama has assembled an economic team and says he'll jump start the economy by creating jobs through an ambitious infrastructure program.
FRANK: My problem is at a time of great crisis with mortgage foreclosures and autos, he says we only have one president at a time. I'm afraid that overstates the number of presidents that we have.
CARROLL: Ed Rollins is a long-time Republican strategist. ED ROLLINS, REPUBLICAN STRATEGIST: In fairness to Barack Obama, he's off to a very, very fast start, picking his team. I think what it really tells you, though, he may end up having more trouble with Democrats in the Congress than he's going to have with the Republicans.
CARROLL: Some Democrats say Obama is already taking more of a lead on dealing with the crisis than the president.
DONNA BRAZILE, DEMOCRATIC STRATEGIST: He has provided leadership at a time when some of the other people are missing in action. So I think it's important that President-elect Obama continue to focus on the transition, and to really make sure that he has all of the right solutions or the right answers.
CARROLL (on camera): Obama's critics say he could use his bully pulpit to push his economic agenda, or push Congress even more to do what he thinks is best for the country.
Jason Carroll, CNN, New York.
(END VIDEOTAPE)
PHILLIPS: Well, he and his family came to the U.S. as Vietnam fell to the Communists. Now Joseph Cao has a new destination, the halls of Congress. Cao won a House seat Saturday. The Louisiana Republican beat incumbent William Jefferson in an a heavily Democratic area near New Orleans. Jefferson had been expected to win a tenth term even though he's under federal indictment. Cao got some help from a light turnout at he polls. He will become the first Vietnamese- American congressman.
Deciding guilt or innocence in the time of war. The U.S. government unveils charges against former Blackwater security guards involved in the deaths of Iraqi civilians. Was it self-defense or something else?
Another heartbreaking sign of the times. Leaner cupboards. This is what happens when those little red kettles aren't seeing so much action.
(COMMERCIAL BREAK)
PHILLIPS: Well, trading the glamour of the White House for a new home in Dallas. We'll take a look at where President and Mrs. Bush will be living when they exit the stage in Washington. A live report right after this.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": President Bush and his lovely wife Laura have purchased a new home in Dallas, Texas worth $2 million. See, this is where President Bush has outsmarted everybody. People underestimate this guy. Five months ago he would have had to pay 10 million bucks for that house, but thanks to his economic plan, he got it at a bargain. The man is a genius! He is a genius!
(END VIDEO CLIP)
PHILLIPS: Jay Leno's writers are geniuses.
Well, just weeks from now, President Bush and the first lady will pack their bags and head back to Texas. They won't be roughing is back at the ranch in Crawford, though. Instead, they're moving into one of the most exclusive neighborhoods in Dallas.
CNN's Ed Lavandera tried to make a bid.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice over): It's the hottest tourist attraction in Dallas. An endless stream of gawkers peeking in on what's expected to be President Bush's new home.
UNIDENTIFIED FEMALE: I think it's great. We love Bush. We're glad to have him back in Dallas.
UNIDENTIFIED MALE: Get your hot chocolate!
LAVANDERA: The current homeowners aren't talking, but their kids are cashing in. Selling hot chocolate, about $100 in profits so far. This is life when a president moves next door.
UNIDENTIFIED MALE: Well, thank you, sweetie.
LAVANDERA: Doug Fletcher lives across the street and says the Bush family will love the neighborhood.
DOUG FLETCHER, DALLAS RESIDENT: It's quiet, very quiet. You know, people tend to mind their own business, and, you know, help out each other if they need it. I think that's probably where he'd like to live.
LAVANDERA: The first family already has visions of a simpler life here.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: She's got this great idyllic vision of me kind of with the little apron.
LAURA BUSH, FIRST LADY: Exactly, with the new barbecue tools.
BUSH: It says, "Barney's Dad" on it, you know, flipping burgers.
(LAUGHTER)
LAVANDERA: The five-bedroom, 8,500-square-foot home is tucked away in a quiet cul-de-sac. The house sold for $3 million, but in this neighborhood that's considered low-end. People here have estates. The Bush's new neighbors include Mark Cuban and Ross Perot. This is a majestic cocoon of wealth. But real estate agent Doug Newby says the Bush's home is not gaudy.
DOUG NEWBY, REAL ESTATE AGENT: This is a very quiet, subtle house. It's been renovated in a contemporary fashion.
LAVANDERA: Lots of Republicans in Preston Hollow, too, which makes it safe for a president with dismal approval ratings.
SKIP HOLLANDSWORTH, "TEXAS MONTHLY": The big rumor in town is where is Cindy Sheehan going to live?
LAVANDERA: But Skip Hollandsworth, who has written several profiles of the Bush family for "Texas Monthly" magazine, says Bush isn't coming home to the same Dallas he left 14 years ago.
HOLLANDSWORTH: No matter where he goes, he is not going to be met with adoring crowds. There are going to be just as many people sticking their fingers out the window at him when the motorcade drives by, even in Dallas.
(END VIDEOTAPE)
PHILLIPS: And our Ed Lavandera joins us live now.
I'm so sorry you didn't get the bid, Ed.
LAVANDERA: I was laughing about that when you mentioned it earlier. I couldn't even afford a mailbox in that neighborhood.
PHILLIPS: Maybe you could be the -- you could mow the lawn, maybe the pool boy for the Bushes.
LAVANDERA: Easy now.
PHILLIPS: That's right. I'm not going to cross that, never mind. You and I are too good of friends.
All right. We hear that there are some Obama supporters still in the neighborhood, though. Did you get a chance to talk with them? Are they a little nervous about him moving into the neighborhood?
LAVANDERA: You know what's so funny about this neighborhood, is one of the neighbors had said, it's almost like you have to whisper it like you're saying something really that you shouldn't be saying. One guy leaned over to us and he says, there are a couple of Obama signs around the corner here. You can just -- you know, you kind of laugh about it when we drive through this neighborhood those of us who have lived in Dallas a long time.
PHILLIPS: And you probably got a sense, too, I mean, this isn't going to be a normal neighborhood anymore. So I think that other -- not that it really is normal in the first place. It's very exclusive, I mean, his neighbor is Ross Perot, right? But with regard to the security detail, I mean, he's going to have to have that Secret Service the rest of his life. Will that affect, you know, the block parties? Will that affect, you know, anything of that nature? LAVANDERA: You know, a couple of things. The reason people are driving through this neighborhood now is because in a matter of months, it's very likely that you won't be able to do this. There's a lot of talk in the neighborhood that there will be a -- this will become a gated area, that they'll block off the seats. You won't even be able to see the cul-de-sac from one of the small streets here in the next couple of months. That's the talk in the neighborhood.
Also, this property backs up to the home of Tom Hicks, who owns the Texas Rangers and the Dallas Stars hockey team, plus a ton of other stuff. This guy has, from what we understand, many believe to be the most expensive house in all of Dallas, worth some $75 to $100 million. It comes with a ridiculous security system. This property backs up to that. Tom Hicks has his own helicopter pad there.
PHILLIPS: Oh, my gosh.
LAVANDERA: So, if President Bush wants to jump the fence and go over and see his buddy, he's open to do that. This is an incredible neighborhood.
PHILLIPS: Well, he'd probably get a free helo ride to any of the sports games, right?
LAVANDERA: Oh, you would hope.
(LAUGHTER)
PHILLIPS: All right, Ed. Let me know if you get that mailbox. I'll send you a letter.
(LAUGHTER)
LAVANDERA: Thanks.
PHILLIPS: All right.
Well, a mystery in the Midwest with possible roots to terrorists in Africa. Young men of Somali decent who disappeared from homes in Minnesota. What's happening to them? Well, the FBI has its own idea.
And he's probably best known for a lifetime of good music, but it's his good works that are about to earn Quincy Jones his latest honor. You'll hear from him, right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
PHILLIPS: It is 2:29 Eastern Time. Here's some of the stories we're working on in the CNN NEWSROOM right now.
The media conglomerate Tribune Company filed for bankruptcy protection today. The company says it took the move to try to deal with $13 billion in debt. It owns "The Chicago Tribune", "The Los Angeles Times", the Chicago Cubs, and other properties. The White House and congressional Democrats are said to be close to a deal on emergency aid for the big three automakers. It's expected to provide up to $17 billion, drawn from an existing loan program for the automakers.
And laid-off workers staging a sit-in at their closed factory in Chicago say they are going strong and have no plans to stop their protest. They're demanding severance and vacation pay. The plant suddenly closed when a bank canceled the company's financing.
Federal prosecutors mince no words in charging five former Blackwater security guards. They claim that the men mowed down unarmed Iraqi civilians with machine guns and grenade launchers last year. Blackwater says it was self-defense. Five of the men surrendered today in Salt Lake City.
CNN's Kara Finnstrom outside the court house.
Hi, Kara.
KARA FINNSTROM, CNN CORRESPONDENT: Hi, Kyra.
Well, the first court proceedings for those men, about to get under way just behind me in this courthouse in Salt Lake City. Those men filed into this courthouse earlier today, with their defense attorneys. And part of what we understand is going to be discussed inside today, via pre-trial notions, is a discussion of whether they will be released pre-trial. And also, a discussion of the venue.
The government would like to see this case tried in Washington, D.C. where it has been unfolding. Defense attorneys, at least some of them, would like to see it tried here. This is where at least one of the defendants is from. It's a conservative pro-gun state so arguably, they could get a more sympathetic jury.
Now, when the defense team arrived here this morning, they didn't know at that point the exact charges that their clients would be facing. But a short while later the Justice Department held a press conference announcing them. And here's part of that press conference.
(BEGIN VIDEO CLIP)
PATRICK ROWAN, ACTING ASST. ATTORNEY GENERAL: The consequences were devastating. The government alleges today that 34 unarmed Iraqi civilians, including women and children, were killed or injured without justification or provocation by these security guards in the shooting at Nisour Square. Today's indictment and guilty plea should serve as a reminder that those who engage and provoke in illegal attacks on civilians, whether during times of conflict, or times of peace, will be held accountable.
(END VIDEO CLIP)
FINNSTROM: So this promises to be a complex and very emotionally charged case here. These five men, the defense attorneys tell us, are there former military men. Some of them Marines. Some in the Army. All had receives numerous awards and commendations for their service. All are in their 20s.
We did speak with one of the defense attorneys as he was headed in this morning.
(BEGIN VIDEO CLIP)
FINNSTROM: Can you tell us a little bit about what your arguments will be today?
VOICE OF DAVID SCHERTLER, ATTORNEY FOR DUSTIN HEARD: No, we won't go into that right now. But, you'll hear them in court later today.
FINNSTROM: Can we hear anything from your client today? Any kind of reaction?
SCHERTLER: No, nothing from my client. Thank you very much. He's innocent, and we'll prove his innocence in court.
(END VIDEO CLIP)
FINNSTROM: Blackwater is an independent contractor that was hired by the U.S. government to protect diplomats. It has maintained that these men were fired upon by armed insurgents and returned fire in self-defense.
The Iraqi government has maintained that this was premeditated murder. Because of their investigation. And an early investigation done by the U.S. Military included some statements made by the first soldiers on the scene where they said they saw no evidence that these contractors had been fired upon first.
Kyra, again, this proceeding about to get under way in just about a half hour. And it will be the first court proceeding for these five men.
PHILLIPS: We'll follow it.
Kara, thanks.
Athens, Greece, engulfed in the what's called some of the worst rioting in the country since it's seen in years. Police today beat protesters during running street battles in Athens and other cities. The fatal police shooting of a teenager Saturday, sparked the rioting. Two police officers are under arrest. One charged with murder. About 30 civilians and several police officers have been hurt in the rioting.
And you're looking at pictures of a camp in Pakistan, allegedly used by the terrorists who attacked Mumbai, India. Pakistani troops raided the camp yesterday in Pakistan-Controlled Kashmir. Pakistan says more than a dozen people were arrested. It's apparently the first action by Pakistan against the Islamic militant group, Lashkar- e-Toiba. India blames them for the Mumbai attacks.
And for the families in Minnesota, it's a nightmare come true. Once again, the disappearance of their young sons, all of Somali decent. The FBI has a theory linking their fate to terror groups in Africa. Several families are speaking out. CNN's Kelli Arena reports.
KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Early November, Minneapolis. 17-year-old Verhan Hasaan (ph) tells his family he's getting a ride home with a friend. He vanishes.
ABDIRIZAK BIHI, MISSING TEEN'S UNCLE: We search his room and we found out that his passport, his belongings and everything was gone.
ARENA: He's not the only one. More than a dozen young men of Somali decent, many U.S. citizens, have disappeared from Minneapolis over the last six months. And the FBI has a pretty good idea where they went.
E.K. WILSON, FBI AGENT: A number of young Somali men have traveled from throughout the United States to include Minneapolis to Somalia, potentially to fight.
ARENA: And not just any fight. Many believe these young men have gone to Somalia to fight alongside terrorists. Some even called home to tell their parents not to look for them.
OMAR JAMAL, SOMALI JUSTICE ADVOCACY CTR.: Those I talked to were completely shocked and dismayed as to the -- as to what happened. They were completely in disbelief.
ARENA: The shock only magnified by what happened to one of them. A college student named Shira Ahmed (ph). On October 29th, Ahmed blew himself up in an apparent suicide bombing in northern Somalia. Why? One answer, Somalia is the new rallying cry for Muslims worldwide. Like Iraq, Afghanistan, and before that, Chechnya.
KARIN VON HIPPEL, SOMALIA EXPERT: If you go on to these al Qaeda-inspired web sites, Somalia is now listed as another place to go and fight the Jihad.
ARENA: And there's a lot of concern about what could happen if they tried to come home trained in urban warfare.
JAMAL: I don't see anything that would prevent from those kids to carry out suicide bombings right here.
ARENA: Officials say young men have also disappeared in Boston, Portland, Maine, and Columbus, Ohio. There's clearly recruiting going on, and the FBI is investigating. For a community that came to America to free their families from war and fear, a terrible feeling that their children are still at risk, even in the United States.
BIHI: All those mothers in our community and all those dads in our community are feeling deja vu again, that they are not safe. No matter where they go.
ARENA: Kelli Arena, CNN.
(END VIDEOTAPE) PHILLIPS: And another heart-breaking sign of tough financial times. The kettle running dry at the Salvation Army. With food donations down 30 percent and their pantry running on empty, the charity, which throws major lifelines to desperate families says it had to turn away 300 families last month.
(BEGIN VIDEO CLIP)
RON MCKINNEY, COORDINATOR, SALVATION ARMY: It hurts because you know for most people, they really don't want to come and ask in the first place.
ROBERTA MCKINNEY, SALVATION ARMY: We go to the homes. We know the people and we know the families and we know the hurts and we know the loss.
(END VIDEO CLIP)
PHILLIPS: Salvation Army also reports this is the first time in at least a year that they've had to buy food to make up for the short- falls in donations. You can of course, go online and donate to the Salvation Army.
Well, Quincy Jones is quite a man of music. He's a composer, a prolific producer. He can also add to the title now, author to his accolades' after penning his new memoir, "The Complete Quincy Jones." But tonight, he's being honored for his humanitarian work. AARP is giving Quincy Jones its Inspire Award, for his role of battling global poverty. And we're happy to have him as our live quest.
Quincy, AARP. You don't look a day past 21.
QUINCY JONES, MUSICIAN, PRODUCER, COMPOSER: You're absolutely right. I don't understand this. We did a (INAUDIBLE). I accompanied Maya Angelou. We reflected on 41 years of friendship. And this year, Michael, Prince, and Madonna got an AARP and all of them are older than I am.
PHILLIPS: That's right. You'll probably outlive all of them, as well, the way you're going. If you don't mind, the book is absolutely amazing. I mean, talk about every colorful detail of your life.
Let's start where it all began, 1933, the Chicago ghetto. It was during the depression. Your dad, a carpenter, struggling immensely to take care of all of you. You know, $55 bucks a week and I'm sure during the depression it was worse than that, especially when he lost his job.
Tell me about how your father really instilled a work ethic in you.
JONES: Well, he -- every day he would recite to my brother, Lloyd, and I, "Once a task has just begun, never leave it until it's done. Do the labor great or small. Do it well or not at all." He was a carpenter for probably the most notorious black gang system in the history of America, the Jones Boys, who we -- we were very friendly with. I just saw his daughter on my birthday.
PHILLIPS: Wow.
JONES: It was amazing time in my life. And at that time, all we ever saw were tommy guns and stogies and money and dead bodies all over the place. And so, we wanted to be gangsters until I was 11 years old. We moved to the northwest right after the Jones Boys got run out of Chicago, by Capone. And we went to the northwest. We broke into an armory and I saw a piano and that changed my life. Because when I touched it, I knew that would be the rest of my life I'd be involved in music.
PHILLIPS: Wow. All right. I want to get back to that moment for a minute. But, you know, you just touched on something that I want to go back to if you don't mind. I'm talking about the gangsters and the Mafia.
I remember Lionel Hampton telling me this story of how all of you used to play these private parties because the Mafia recognized what amazing musicians you are were. Yet, you know, discrimination reigned.
So they would pay for these extravagant parties and you would all meet each other, you'd jam together. I'm curious, is that when you sort of developed your mentors like Dizzy Gillespie and (INAUDIBLE) and of these amazing people that you pay tribute to in your book?
JONES: Yes. Well, that was prevalent back then. But, you know, all the way back to all the night clubs of the booking agents, the record companies which was all controlled -- clubs all controlled by Mafia then. And it was a very common thing so nobody knew the difference really.
PHILLIPS: Why did you like -- what was it about Ray Charles that really made an impression on you? You had said something about -- that somebody forgot to tell him he was blind.
Tell me that story. I love that quote.
JONES: Well, Ray was the most independent -- his mother trained him there would be no dogs and no tin cups or canes or anything. He would walk all over town. See, I met him when I was 14. He was 16. He was like 100 years older than me though, because he had his own apartment and a record player --
PHILLIPS: He was all grown up.
JONES: Two girlfriends, everything. Yes. You know, I'm still --
PHILLIPS: You made up for that.
(LAUGHTER)
JONES: Moi?
PHILLIPS: Yes. Innocent you.
JONES: How could you say something like that? You know I'm church people.
PHILLIPS: Oh, yes, I do. Praise the lord.
Now, Dizzy Gillespie, you had an amazing relationship with Dizzy.
JONES: Absolutely.
PHILLIPS: Pretty funny character, yes?
JONES: He what?
PHILLIPS: Pretty funny character, right? Great sense of humor.
JONES: Oh, yes, indeed. An absolute idol. You know, at that time, Charlie Parker, Dizzy, Miles Davis, Ray Brown. All the Bee Bop guys, that's the way we were. We came out of the Big Band era, into the Bee Bop thing. Which kind of crossed (INAUDIBLE) there.
PHILLIPS: So in 1969, you start traveling the world with your band. And I know this is when you went into debt and you were struggling. So, you had, I guess you should say -- and correct me if I'm wrong. You got the offer at Mercury to become an exec. And I remember the headline said that the first Negro to have that type of position. My gosh, you hear that word now and you just cringe.
Were you just struggling knowing that you'd have to go behind a desk to make money and leave, you know, your passion?
JONES: Well, the worst part of it was I had to get up every morning at 8:00 and put a tie on. That was the hard part. Because I don't start work until midnight. You know, and to get up at 8:00 and put a tie was the rough part.
But, I enjoyed it because it taught me another side of -- Irvin Green was one of my mentors, like Steve Ross at Time Warner. He said, you know, the music but you don't understand the music business. And I didn't.
But I learned the hard way. I was with 33 people for ten months in Europe struggling, going from Yugoslavia to folk parks in Sweden, all over the world. And that either makes you or breaks you. That's the closest I ever came to suicide, you know.
PHILLIPS: You definitely figured out how to do the business and you did very well and you did not forget your roots. You definitely give back. You continue to give back. You do all this work in Cambodia. You've got your foundation that goes from South Central to South Africa.
But, do me a favor. I remember the story that you tell 50 years ago when this 5-year-old young girl approached you in Tunisia, when you were playing in a club. Tell me what happened and why that moved you so. JONES: We were with Lionel Hampton in 1953. We played at Tunisia, at the end of a long tour all the way from Oslo. As we came out at 1:30 in the morning, I was with Clifford Brown and Mark Montgomery and there's this little 5-year-old girl with a little flower dress with no shoes on in the rain. And she had one hand behind her back and one out front and she said, mister, that's the begging. That's the first time I saw that that way. I'm from Chicago, so it was not new.
And she around the corner and gave the money to two grown-ups. The next day they told me that her uncle had chopped her left hand off so she could become a better beggar. And from there on in, identifying with my childhood, I said this is my part of my life. The Nobel doctors that take care of me now say the secret to life is love, live, laugh, and give. And that's my passion now.
PHILLIPS: Well, and you have proven that so. So, I'll tell you what we're going to do. Because you have given a lot. Folks have also given back to you tremendously, especially with your brush with death. I'll never forget that photo of you and Sydney Poitier.
But, you know, a big thing that you did that really moved -- and to this day, it still moves America. Is when you produced and took part and gathered everybody for "We Are the World."
So, what I want to do, as we wrap up this segment, Quincy, god, I could talk to you for hours. Is do me a favor and as we watch this and take it to break, when I think of how you talk about giving back and remembering where you came from.
What do you think your biggest achievement to the industry has been to this point as you come out with this book and you look back at your incredible career?
JONES: I don't think in those terms. I think it's this moment. The next thing that I'll do, I think, will be the most important. And I feel like -- literally feel like I'm just starting. I'm working with Nobel doctors now that are taking care of my health, thank god, because I didn't. And I feel like I'm just starting.
PHILLIPS: Well, you've said you make a living with what you get. And you make a life with what you give.
JONES: That's right.
PHILLIPS: You have lived that, Quincy. Thank you so much for just --
JONES: Thank you, Kyra.
PHILLIPS: It meant a lot to us.
JONES: Thank you, darling.
PHILLIPS: All right. We're going to go out with "We Are the World." Quincy Jones.
(COMMERCIAL BREAK)
PHILLIPS: Well, you may have noticed something different on the bottom of your screen. The CNN logo has turned green. And that's because the second installment of CNN's award-winning "Planet in Peril" debuts this Thursday, at 9:00 p.m. Eastern time. So, we want to remind you, we're keeping it green.
Well, the great white way is going green. New York City's theater district is looking to ease the load on Manhattan's electric grid.
CNNMoney.com's Poppy Harlow has our Energy Fix from New York.
Hey, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey there, Kyra.
Yes. New York's Mayor, Michael Bloomberg, he's been really vocal about one of his goals for the city. That's a 30 percent cut in greenhouse gas emissions by 2030. Broadway stepping in, joining the effort. 10 theaters replacing some 10,000 light bulbs with more energy efficient ones. The rest of Broadway theaters say, they'll do the same in the next year. They're pledging also to use eco-friendly materials to build their props and build their sets. Bloomberg says it's the focus on New York's landmarks that is unique.
(BEGIN VIDEO CLIP)
BLOOMBERG: In our case, only 20 percent of the carbon footprint comes from transportation. And 80 percent comes from buildings. If we can go and make all our buildings pollute less and use less energy, we really do have a chance to leave our children and grandchildren a better world.
(END VIDEO CLIP)
HARLOW: Well, that's something Obama was talking about over the weekend. But, as for Bloomberg's plan, not everything is going according to plan. A federal judge recently blocked a move to require most New York City taxies to be hybrids by 2012, saying only the federal government can set fuel-efficiency standards.
And now the city is trying a different tactic, offering financial incentives to fleet owners for going green. Take a look at those numbers. Drivers will pay about $3 more to use a hybrid every day, and that could generate about $2,000 in revenue per vehicle per year. The drivers of the hybrids would save about $5,000 on their gas costs.
But, Kyra, gas is falling every day, falling today for an 82nd straight day. That makes the equation a little bit tougher, Kyra.
PHILLIPS: All right, Poppy, thanks.
Well as always, Team Sanchez is back there working on the next hour of CNN NEWSROOM.
Hey, Rick. What you got going?
RICK SANCHEZ, CNN ANCHOR: We've got a couple of things. Actually, you know, I think that we may be hearing within the next hour that we're either -- we've either got a deal or we're real close to a deal.
This thing is interesting. It's being put together by an outgoing administration, an incoming administration and Congress working with the officials from three different automakers. So it gets complicated. But I think we could be close to some kind of announcement. And obviously, we'll bring it to you as soon as it's announced at the congressional level.
We know how Barack Obama feels about this. And we also now know how he feels about some of these car CEOs. Ain't nice, what he had to say about these guys. Let's just leave it at that.
We've got that. And then also, we're going to be following up on Shinseki's appointment to the cabinet. There's a lot to say about that, Kyra. And we'll let a whole lot of people do it when we bring you the news here at 3:00.
Over to you.
PHILLIPS: Sounds great. All right. See you in a minute, Rick.
SANCHEZ: Sure.
PHILLIPS: Quick break. We'll be right back.
(COMMERCIAL BREAK)
PHILLIPS: Time to call out the snow plows. Parts of the nation's heartland are getting ready for a big blast of wintry weather. Jacqui Jeras watching this storm unfold.
Boy, I remember those days, Jacqui.
JACQUI JERAS, AMS METEOROLOGIST: I know. I miss it.
PHILLIPS: Especially around the holidays. You want the snow.
JERAS: You do.
PHILLIPS: Yes, I know.
JERAS: You do. And there should be plenty of it for a lot of folks across the Midwest.
We do have a little breaking news which is related to that snow storm. It is driving the winds very strong across parts of the south. We've got a grass fire which is burning just north of Oklahoma City near the town of Edmond. I-35 is closed here because of the smoke from this fire. So it's a large grass fire continuing to burn. The winds are gusting around 40 miles per hour right now. So making it difficult to get a handle on this fire. We'll continue to keep you up to date on that situation.
In the meantime, the storm system starting to pick up moisture now from the Gulf of Mexico and it's going to be bringing some widely scattered showers and thunderstorms through this area as well. North side of the system, we've got all the cold air in place, so we're going to start to see the snow. Really, this is going to start taking place late tonight. You see this moisture on the map here. But most of this isn't reaching the ground at this time. You might see a little bit of light freezing rain or a little bit of light snow in the northern tier of it, but we think this evening, overnight, and through much of the day tomorrow is when the big show is going to begin.
There you see the red in place where we have the winter storm warnings in effect. Five to 10 inches of snow there. We'll likely see between 10 and 15 in the (INAUDIBLE) on the back side of this system. It's going to be fast, but it's going to be furious, Kyra. It's going to be out of here by Thursday.
PHILLIPS: All right. Thanks, Jacqui.
Well call it the latest casualty of the digital age. What was once an instant hit is about to be gone in a flash.
(COMMERCIAL BREAK)
PHILLIPS: It's been part of American culture for some 60 years, and even immortalized in the Outkast song, "Hey Ya." Now Polaroid is pulling the plug on its iconic instant film. This is the last month the company is making it. Digital cameras have just become too popular. Digital killed the Polaroid star.
Polaroid says you should be able to find the film in stores through part of next year. After that, Polaroid film is likely to become an instant memory.
Someone who we can never forget, Rick Sanchez. And he takes it from here.
