Return to Transcripts main page

CNN Newsroom

David Letterman's Sex Revelations; Make or Break Health Care in America; Chicago First to Be Eliminated as 2016 Host; 2016 Summer Games to Be Held in Rio

Aired October 02, 2009 - 12:00   ET

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

(COMMERCIAL BREAK)

TONY HARRIS, CNN ANCHOR: Time now for your top-of-the-hour reset. I'm Tony Harris in the CNN NEWSROOM. It is 1:00 P.M. in Rio de Janeiro, bidding to be the first South American city to host an Olympics. It is 6:00 P.M. in Madrid, a city hoping to bring the Olympic Games to Spain for the second time since 1992. Let's get started.

There are two contenders left, and we will have the winner before the hour is out, but already Chicago's dream of hosting the 2016 Olympics evaporated with the first round of voting.

(BEGIN VIDEO CLIP)

JACQUES ROGGE, INTL. OLYMPIC COMMITTEE PRESIDENT: The City of Chicago, having obtained the least number of votes, will not participate in the next round.

(END VIDEO CLIP)

HARRIS: Disappointment in Chicago - the president and First Lady, unable to convince the International Olympic Committee to bring the games to their hometown. Senior White House Correspondent, Ed Henry, live now from Copenhagen.

Ed, if you would, first talk us through the reaction to the news - shock, stunned people everywhere - and - and what have you learned since?

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, I think I would characterize it as shock and awe. We were here in the International Media Center just down the hall. I was with my producer, Erika Dimler (ph), and she was - had a camera trained and we were going to try to feed this video in as soon as we can so you can use it this afternoon of the Tokyo delegation as they were watching on big-screen TV, and a lot of media had gathered around them and there was an anticipation - maybe Tokyo would be eliminated first. And instead what you just played - played out and Erika captured some amazing video of - of the media around the Tokyo delegation just absolutely stunned.

Sort of a collective gasp through the Media Center in here. Reporters from all around the world, including Tokyo, some of the cities that were represented here, and they couldn't believe that Tokyo had survived and that Chicago had not. And I think that's because I've been talking to sources close to this process, many other reporters and other organizations - and Chicago and Rio have been seen by many members of the International Olympic Committee and many people close to the process as the real front-runners here.

Now, whether there was some sort of behind-the-scenes voting block that got together to eliminate Chicago earlier to pave the way for someone else, we're going to see that unfold over the next couple of hours of what really happened behind closed doors. But here's the bottom line for President Obama as he flies back still now to Andrews Air Force Base, because we know he hasn't landed yet. Essentially about 14 hours roundtrip, only four hours on the ground, 14 in the air. He used a lot of political capital to come here, to stand up for his adopted hometown.

This is obviously a blow to him on the international stage, because I know that the White House is likely to say, well, look, he gave it his all. They're going to move on. But if he had helped deliver this for Chicago, the White House would be celebrating right now, would be popping the champagne corks not only in Washington but in Chicago. But instead a much different atmosphere, I'm sure, right now on Air Force One, Tony.

HARRIS: Ed Henry, we are going to get White House reaction right now from David Axelrod. David is the Senior White House Adviser, and he's with us, joining us in the CNN NEWSROOM. And, David, what's your reaction to this news? I'll be frank with you, we were stunned here in the CNN NEWSROOM.

DAVID AXELROD, SENIOR WHITE HOUSE ADVISER: Well, obviously it was disappointing. We wanted Chicago to get this. We wanted the US to host the Olympics again. The president made, I think, a very strong appeal, and it didn't work out. But it was well worth the effort. Anytime this president has the chance to go and promote the interests of this country and promote the interests of a city or a state within this country on something of this magnitude, he's going to take that opportunity. And, you know, it didn't work out, but it was worth the effort.

HARRIS: Well, David, it not only didn't work out, Chicago didn't get past the first round of voting here. I mean, this president, as we all know, we've witnessed it, is hugely popular around the world. His adopted hometown is in the running for the 2016 Olympic Games, and the city, his adopted hometown, the place where the First Lady was born and raised, the First Lady who gave an impassioned speech before the committee - Chicago doesn't get out of the first round? That's got to be hugely disappointing.

AXELROD: Well, I don't view this as a repudiation of the president or - or the First Lady. I think that there are politics everywhere, and there are politics inside that room. You had the City of Madrid - the state - their bid being essentially led by a former president of the IOC, who had longstanding relationships with many members in that room. Rio obviously, it had a strong bid from the beginning, we knew that. So, you know, there are a lot of factors that go into this. So, I think that the president, and everybody in the room, I think, will acknowledge the president made a very strong appeal, the First Lady made a very strong appeal. It wasn't strong enough to overcome some of the internal currents there, but it was worth the effort, and he would do it again if he had the opportunity.

HARRIS: David, this idea of internal currents, what do you mean by that? Internal politics? What are you suggesting?

AXELROD: Well, I mean, I think that - I think that there - as with any process like this, there are all kinds of crosscurrents in the room. There are relationships. As I said, the president of the IOC, former president, was heading up the effort for Spain. I'm sure those relationships meant something. I'm not an expert on the internal machinations of the IOC, but, you know, I think that Chicago made a very strong bid. The president made a very strong bid. They went another way. It's - it is disappointing, but it was worth the effort, and I'm glad we made it.

HARRIS: Were you confident, taking the trip? You know, a lot of people saw this as, wow, the president is making the effort, a big effort, in the air - as long as he's in the air, to go to Copenhagen to make this. Did - did you think - did you go into this confident that if you made the effort, the president making the pitch himself, that that would close the deal?

AXELROD: Look, I think the reason the president went was because we knew it was a very competitive situation, and there were four strong bids, and that the hope was that we could help enhance Chicago's chances. But we knew there were no guarantees. So, we had no illusions going in that this was a done deal if he showed up. He showed - he came, he left at 7:00 last night, flew all night, stayed there for four hours, made the appeal, and now he's on his way back. He'll land back here shortly.

And, you know, he did the best he could. He made a great appeal. He made a great speech. It was very well received. He talked to as many people as he could. But as I said, I think there were other things at play there that we simply couldn't overcome, and that's - you know, that's - that's life. Life goes on.

HARRIS: Yes. I want to know more about those other things that you're suggesting here, David...

AXELROD: No. I - I'm not suggesting anything nefarious. There are all - there's a process here, intensive lobbying that goes on for months and months and months, and I'm not suggesting that anything untoward happened.

HARRIS: Sure, sure.

AXELROD: I think that there were, you know - I think that, you know, there are politics around every process, and there was here as well and there were relationships that paid off for some of the other - for some of the other cities.

HARRIS: Yes. I think we all would just like to - to know more about what goes on in that room.

AXELROD: I'm sure there will be - let me tell you, I'm sure there will be quite a bit of postmortems done on this and we'll all - and we'll know. Like I've said before, I'm - I'm engrossed in trying to figure out the politics of this town. I can't help you on the politics within that room.

HARRIS: Amen. Let me know how you do with that.

AXELROD: OK. All right.

HARRIS: Senior White House Adviser, David Axelrod with us.

AXELROD: Good day to you. Thank you.

HARRIS: David, appreciate it. Thank you.

The city of Madrid, still in the running and anxiously awaiting the announcement of the host city for the 2016 Olympics. CNN Madrid Bureau Chief Al Goodman joining us live, and if you would, Al, describe the scene. Madrid still very much in the running.

AL GOODMAN, CNN MADRIS BUREAU CHIEF: Hi, Tony. Well, let me just show you, the fiesta has started about 30 minutes ago. Now, the question is how long it's going to last? A lot of people in this country didn't think that Madrid would get to the finals this time, because Chicago and Rio were seen as being such strong candidates. But here they are, in the final. It's kind of a Latin face-off, and we will just have to see.

This has gone against the predictions of many, except for the Madrid bid committee, which has been expressing cautious optimism throughout and especially in the final closing days. As they said, all of the heavy troops - that's the Royal Palace behind me - King Juan Carlos was up in Copenhagen, the prime minister was up there, various sporting figures, Juan Antonio Samaranch is a former IOC president, his son, Juan Antonio Samaranch Jr., a kind of a full-court press all over the IOC. They met with dozens of them (ph), arm- twisting or lobbying, if you want to call it, trying to see if they could get this Madrid bid through.

So this is where we are. They're fighting, of course, the rotation principle which says the games theoretically aren't going to go to the next - two games aren't going to the same continent - London has it for 2012 - but we'll have to see, Tony.

HARRIS: Wow. OK, Al Goodman in Madrid for us.

Chicago had planned a big party downtown today, but the crowd at Daley Plaza, pretty much fading away now. Our Chief Business Correspondent, Ali Velshi, is still there. And, Ali, you know, there are upsets and then there are upsets, and this feels like an upset on the scale of, say, Buster Douglas takes out Mike Tyson. My understanding is that there was a wave of disappointment that washed over that crowd. ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Yes. You know, I was listening to you, and I was watching the screen and I was watching the crowd all at the same time. And your voice, when it happened, was an absolute reflection of what was going on in the crowd. I think you asked about three times, "Is Chicago out? Has Chicago been eliminated?"

HARRIS: Yes, yes.

VELSHI: And that's kind of what was going on in the crowd here. It wasn't a gasp like if you'd been waiting for the actual result and you found out you lost, there'd be a gasp and sighs and hugging - that wasn't what it was. It was absolute confusion. There wasn't - it hadn't been part of the thinking here in the crowd that Chicago might be eliminated right off the top.

So when that happened, people weren't sure what to think, you know? They were sort of - they were checking with each other to see did that really happen? And then it was just this dumbfounded look. Nobody could conceive of how this wasn't going to be the case. There were a number of people here who did have the impression that it's going to come down to - they seemed to have thought Rio and Chicago in the end, and that there was a possibility Chicago wasn't going to get it, but that Chicago had one very big chance at it. No one thought about this.

HARRIS: Wow, this is - this is absolutely stunning. And - and I'm wondering, you know, perhaps the - it's hard to say it this way now when Chicago is - is reeling a bit from the news, but, you know, cities lose money hosting Olympic games, Ali, so, maybe there's a bit of a blessing in - in disguise here.

VELSHI: Well, I've actually had a few people tell me that, and I feel like they were telling me that after Chicago lost the bid because it's not something they wanted to say before Chicago lost the bid. They didn't want to not - they didn't want to seem like they weren't on the side (ph), but a lot of people have said, you know, Chicago's been on a pretty good track.

Chicago is a great tourist destination. It's got world-class restaurants, world-class entertainment, one of the best uses of a lake of any city we've seen, a river, beautiful architecture, and - and they felt it was going on nicely. And I've had a few people tell me they're almost glad the distraction of the Olympics isn't there. The criticism is not going to be focused on - on what Chicago isn't spending its money on.

Chicago has, as we've discussed many times, a serious crime problem involving youth on the south side. There are a few people saying, you know what? We're almost there. This is a great city. Maybe this will allow us to just get back to it. One of the things Chicago has been trying to do, Tony, is to try to be one of the greenest big cities in America. This may focus attention back on what Chicago needs to do even without the Olympics.

HARRIS: Well said. All right, our Chief Business Correspondent, Ali Velshi, for us in Chicago. Ali, appreciate it. Thank you.

The 2016 host city revealed - Rio de Janeiro or Madrid? CNN live coverage of the Olympic announcement begins in just a few minutes, at 12:30 Eastern.

(COMMERCIAL BREAK)

HARRIS: The 2016 host city revealed. Where is that? What shot are we looking at? Is that Rio -- ok Rio de Janeiro or Madrid. A live shot there of Rio, a CNN live coverage of the Olympic announcement begins in just a few minutes in 12:30 Eastern time.

So which city do you think will win the bid to host the Olympics in 2016? Rio, Madrid -- all that's left right now. Tokyo is out, Chicago's out -- Chicago is out after the first round of voting. Give us your quick vote; just go to CNN.com/tony.

So let's take a look at the results so far, Rio way ahead and I'm told that this started to change late yesterday when we left the air. Chicago was way out in front. That made a certain amount of sense.

But at some point yesterday afternoon the voting changed and Rio took the lead, Tokyo at nine percent, Madrid still in the running at 10 percent. CNN.com/tony.

Funnyman David Letterman, stuns his "Late Show" audience. He admitted to having sexual relations with members of his staff. And he says those liaisons led to a $2 million extortion plot against him. Letterman says he received a package three weeks ago threatening to reveal details in a book and screen play.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, HOST, "LATE NIGHT WITH DAVID LETTERMAN": This whole thing has been quite scary. I had to go downtown to testify before the grand jury, yes. And I had to tell them how I was disturbed by this. I was worried for myself. I was worried for my family. I felt menaced by this.

And we get to what was it, what was all the creepy stuff that he was going to put into the screen play and the movie. And the creepy stuff was that I have had sex with women who work for me on this show.

Now, my response to that is, yes, I have. I have had sex with women who work on this show.

(END VIDEO CLIP)

HARRIS: Tom O'Neill, senior editor of "In Touch Weekly" talked about Letterman's "Late Show" confession on CNN's "American Morning."

(BEGIN VIDEO CLIP)

TOM O'NEILL, SENIOR EDITOR, "IN TOUCH WEEKLY": It was done in typical Letterman style. We were all put ill at ease while watching this. Was he joking when he talked about the terrible creepy things that he did.

At first, it didn't seem that way, it seemed as if he was really confessing to us. Then he built this like a good comic actor crescendo where everyone is laughing at the end.

And now you think -- well maybe -- maybe this is not a big deal. Look, David Letterman just got married in March. For 30 years he was a single man.

If this was consensual sex with his co-workers maybe that's not so bad, but we also have to wonder, is it that terrible that it gets into areas let's say, perhaps of sexual harassment.

(END VIDEO CLIP)

HARRIS: Yes, good point.

CBS identifies the suspect in the alleged extortion plot as Joe Halderman. The "48 Hours" employee has worked for CBS for more than 20 years according to the network.

New numbers out today point to the continued pain of being out of work in America. The Labor Department says the unemployment rate rose to 9.8 percent in September -- that's a 26 year-high, employers cut 263,000 jobs last month. Unemployment has been one of the biggest worries throughout the recession. Many economists expect the jobless rate to surpass 10 percent by early next year.

The push for health care reform clears a major hurdle. The Senate Finance Committee wrapped up work on its bill in the early hours of this morning. A final committee vote is expected next week.

Congressional correspondent, Brianna Keilar, joining us live from Capitol Hill. And Brianna, after all of this, all of this work, all of the hours, what does this bill look like now?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well Tony, overall, even after dozens of small changes, this bill looks very much the way it looked when the Senate Finance Committee got it a couple of weeks ago and went through just two weeks of grueling hours talking about and voting on these changes proposed by Democrats or Republicans.

So, here's what the plan remains at this point. The key parts of this plan: nonprofit health cooperatives; state-run health co-ops instead of, of course, that public option, that government-run insurance plan; and also an individual mandate, a requirement that all Americans have to get insurance.

And then to pay for this, a tax on those Cadillac health care plans, those high-end health care plans. So, bottom line here, Tony, after the last couple of weeks, Republicans were unable to make changes they wanted to make to this bill that Senator Max Baucus, the chairman of this committee, put forth.

And maybe more importantly, Tony, liberal Democrats who wanted to add that public option, that government-run insurance plan, were not able to do it.

HARRIS: And, Brianna, this committee isn't done with its work just yet. The committee still has to vote next week. And then what?

KEILAR: So there's the vote. And Senator Baucus says that he has the support he needs to pass this out of committee. And then what happens after that next week is this bill in the senate finance committee which is a more conservative one has to be melded with one from the senate health committee, which is a more liberal bill, includes that public option.

That's done under the eyes of senate majority leader, Harry Reid. And then Tony, the senate bill -- there will be one senate bill then -- it's expected to go to the floor after Columbus Day, that week of October 12, the week after this next one.

HARRIS: Brianna Keilar on Capitol Hill for us. Brianna thank you.

A check of your top stories coming up. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Let's get you caught up now on our top stories here in the CNN NEWSROOM. Despite a high-powered push from President Obama for Chicago to host the 2016 Olympics, it was the first city eliminated by the International Olympic Committee. Tokyo was the next to go, Madrid and Rio de Janeiro less than half an half an hour away from finding out if their Olympic dreams will come true.

President Obama met with General Stanley McChrystal, the top commander in Afghanistan for nearly a half hour of this morning. That meeting aboard Air Force One in Copenhagen -- the president was in Denmark to push Chicago's Olympic bid. The general wants more troops sent to Afghanistan.

An Israeli soldier abducted in 2006 is alive. This videotape is the proof Israel has been looking for. Gilad Shalit was abducted by Palestinian militants who crossed into Israel from Gaza. Israel released 19 Palestinian women prisoners today in exchange for the tape.

We will get another check of our top stories in 20 minutes.

We are getting closer to the announcement of which city will host the 2016 Summer Games. We will go live to Copenhagen right after this.

(COMMERCIAL BREAK)

HARRIS: Even a presidential pitch didn't do the trick; Chicago out of the bidding for the 2016 Games in the first round of voting in Copenhagen.

Senior white house correspondent, Ed Henry, is there. And, Ed, before we talk for a moment, what am I looking at? That's got to be Madrid and Rio. Is Rio at the top right of the screen -- ok -- and Madrid is just below.

Ed, I'm curious as to where the Chicago delegation is right now. And since the world watches CNN, has anyone from the IOC suggested any problems with the Chicago bid?

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: They have not. And we're waiting for that word.

And what's going to happen is the IOC is still behind closed doors, so we have not been able to get their reaction just yet. The reason they're behind closed doors is they've already done the vote. They've already selected between Madrid and Rio, but they're keeping that secret until we hear them in the next half hour or so. We don't know exactly when.

It could be any moment now, and that's why we're all standing by. Meanwhile the Chicago delegation is at a hotel across town from Copenhagen. We scrambled people trying to figure out, you know, to track down Mayor Richard Daley, others to get their immediate reaction. That's what we're trying to bring you, all of this in real- time.

Because I can't underscore how much of a shock this was here on the ground in Copenhagen to many of the people who have been following this process very closely.

I can tell you journalists from all around the world have started coming to me saying, what happened, you know? And saying to me, I'm sorry, we know you're an American reporter. What in the world happened to Chicago? They're shaking their heads saying that they were literally blown away by this news, Tony.

HARRIS: All right, Ed, we are moments away. The window is going to open and we're going to see -- if you take a look at the run of show -- it should be a terrific ceremony, the 2016 Olympic Summer Games selection ceremony in Copenhagen. And we are just moments away.

Let's go there live now.

UNIDENTIFIED FEMALE: (SPEAKING IN FOREIGN LANGUAGE).

UNIDENTIFIED MALE: (SPEAKING IN FOREIGN LANGUAGE).

UNIDENTIFIED FEMALE: Good evening, ladies and gentlemen, and welcome to Copenhagen and the 121st session of the International Olympic Committee.

UNIDENTIFIED MALE: And in particular, welcome to the announcement ceremony to the games of the 31st olympiad. Here, in just under half an hour, the president of the IOC, Jacques Rogge, will announce the host city for the 2016 Olympic games.

UNIDENTIFIED FEMALE: (SPEAKING IN FOREIGN LANGUAGE). And a warm welcome to you, Jonathan. Triple jumper and Olympic gold medalist. Good to see you again in Copenhagen.

UNIDENTIFIED MALE: Thank you, Lilly, it's a pleasure to be here on what has been a dramatic day. Four great cities, Chicago, Tokyo, Rio de Janeiro and Madrid have all been vying to land the biggest prize in world sport.

(SPEAKING IN FOREIGN LANGUAGE)

UNIDENTIFIED FEMALE: Yes, earlier today four cities presented their detailed plans to the IOC members. But before we look back at the events of today, let's just remember what's at stake tonight. And go back just over a year to the amazing spectacle of Beijing.

UNIDENTIFIED MALE: And it was truly amazing. Who could forget Usain Bolt?

UNIDENTIFIED FEMALE: Or Michael Phelps?

UNIDENTIFIED MALE: Or the Bird's Nest?

UNIDENTIFIED FEMALE: And what about the Water Cube?

UNIDENTIFIED MALE: All those breathtaking ceremonies. And, of course, the warmth and welcome of the Chinese people. But don't take our word for it. Watch this.

(VIDEO CLIP)

UNIDENTIFIED MALE: Some amazing memories there. Beijing was a truly exceptional games. But who will host them in 2016?

UNIDENTIFIED FEMALE: Well, in just half an hour, we'll find out. Tonight, Copenhagen is very honored to host this unique event, which will introduce a new Olympic host city to the world.

(SPEAKING IN FOREIGN LANGUAGE)

We are happy to welcome you to Denmark's capital city.

(VIDEO CLIP)

UNIDENTIFIED MALE: And you do have a very beautiful capital city, as do I. And in a little over 1,000 days' time, that city, London, will play host to the games of the 30th olympiad. 2012 is coming and we can't wait. (VIDEO CLIP)

UNIDENTIFIED FEMALE: (SPEAKING IN FOREIGN LANGUAGE)

But that's for 2012. But what about 2016? Well, that decision lies with the members of the IOC. They include some of the most influential names in world sports, led by the president, Jacques Rogge. Please welcome the men and women who will make that pivotal choice.

UNIDENTIFIED MALE: And it has been a very difficult decision, because as we're about to see, all of these four cities have shown themselves capable of hosting great Olympic games.

UNIDENTIFIED FEMALE: Yes, as you said, Jonathan, it has been a dramatic day here in Copenhagen, and it all began, bright and early, with the delegation of Chicago being the first city to present their candidacy to the IOC members, following previous bid for 1952 and 1956.

UNIDENTIFIED MALE: (SPEAKING IN FOREIGN LANGUAGE)

(VIDEO CLIP)

UNIDENTIFIED MALE: Well, next to take their turn was Tokyo, the only one of the four bidding cities that has already had the honor of hosting a previous Olympic games. And that was back in 1964.

UNIDENTIFIED FEMALE: (SPEAKING IN FOREIGN LANGUAGE)

(VIDEO CLIP)

UNIDENTIFIED FEMALE: Now, two down, two to go. And could it be third time lucky? As Rio staked its claim to be the first South American city to host the Olympics?

UNIDENTIFIED MALE: (SPEAKING IN FOREIGN LANGUAGE)

(VIDEO CLIP)

UNIDENTIFIED MALE: And last, but by no means least, and previously bidding for the games of 1972 and 2012, it was the Spanish city of Madrid.

UNIDENTIFIED FEMALE: (SPEAKING IN FOREIGN LANGUAGE)

(VIDEO CLIP)

UNIDENTIFIED MALE: So, that was the choice presented to the members of the International Olympic Committee during the course of today.

UNIDENTIFIED FEMALE: Yes, as we said, it was no easy matter. But the process is simple. One member, one vote. With the winning city being the first to gain an absolute majority.

UNIDENTIFIED MALE: Well, in the first round of voting, no city gained that majority. And as a result, the city with the least number of votes was eliminated. And that was Chicago. Commiserations, you did a great job.

UNIDENTIFIED FEMALE: Yes. And in the second round, again, no city won outright and we said good-bye to the city of Tokyo. Thank you very much for your excellent bid.

UNIDENTIFIED MALE: So the IOC was left with a straight choice between the cities of Madrid and Rio de Janeiro. And that vote has now taken place and the name of the winning city was placed in a sealed envelope by the president of the scrutiny (ph), its Mr. Thomas Spock (ph). This envelope has remained securely in his possession since that time.

We're delighted to welcome these two delegations in the auditorium today. To my left, please first of all welcome Madrid.

UNIDENTIFIED FEMALE: Yes. And to my right, please give a warm welcome to the delegation of Rio de Janeiro.

(SPEAKING IN FOREIGN LANGUAGE)

So, Jonathan, this actually means that we're just a hop, skip, and a jump away from knowing the name of the winning city.

UNIDENTIFIED MALE: Yes. Finally the moment we've all been waiting for. Please welcome the president of the International Olympic Committee.

UNIDENTIFIED FEMALE: (SPEAKING IN FOREIGN LANGUAGE)

Ladies and gentlemen, please stand for the Olympic anthem.

JACQUES ROGGE, PRESIDENT, INTERNATIONAL OLYMPIC COMMITTEE: I would like to thank the four candidate cities for their excellent bids and for their dedication to the Olympic games. Your projects are of the highest quality. Your vision for the Olympic movement is inspiring. Thank you for your hard work, energy, and commitment to sport and its values. Like in every competition, there can, however, only be one winner. UNIDENTIFIED FEMALE: And now, ladies and gentlemen, the envelope containing the result will be brought to the president by a young Danish athlete, the talented Ashina Bilison (ph), who will be competing in the very first youth Olympic games in Singapore next year.

ROGGE: Tonight, I have the honor to announce that the games of the 31st olympiad are awarded to the city of -- Rio de Janeiro.

HARRIS: Wow, that is -- that envelope moment is always pretty special, isn't it? Rio de Janeiro. The 2016 summer games heading to Brazil. My goodness.

At the center of the screen here, obviously, the reaction in Rio. Upper right, the disappointment in Madrid. But, yes, let's take this shot full here. This is the reaction in Rio. Wonderful, beautiful, multi-cultural, diverse Rio de Janeiro. Let's have a quick listen.

It is carnival. All right, a little early. A little early. I get that. I get that. But look at the celebration. That is wonderful.

So, Rio has won the rights to host the 2016 summer games. The celebration just getting started in a great, great city.

Let's see that split again. We've got the delegation -- was that Pele? Oh, soccer all-timer, Pele, just moments ago. I'm sorry we missed the shot. But we will turn that around. The celebration -- can you imagine that celebration in Rio? The delegation in Copenhagen celebrating as well.

Yes, split the screen. Let's show all of it here. Can you imagine that party?

Ed Henry, our senior White House correspondent, is standing by.

And, Ed, I was just saying a moment ago, that, boy, look, the IOC does this pretty well. You know, that envelope moment is always a gripping moment. And you open the envelope and there's the announcement. And then, boy, the delegation from Brazil, that was a good moment.

ED HENRY, CNN CORRESPONDENT: They certainly know how to put on a show. And it was sort of surreal for me to be listening to it because just down the hall from me is where all this is taking place. And after it was announced, there were some Brazilians running past us jumping for joy, literally, sort of jumping up and down and dancing and trying to tell everybody they could talk to with their phones and their Blackberries or whatever.

Bottom line, I think, also is to think about the pitch that we saw earlier today from Rio. They have a very charismatic leader in the leader of Brazil.

HARRIS: Oh, yes.

HENRY: In Mr. Lulu da Silva. And when you put him stacked up against President Obama on the world stage, two very charismatic leaders, and I think there were a lot of people around the world thinking that President Obama making this last-ditch effort, flying in, swooping in at the last minute, essentially sleeping on Air Force One so he could be on the ground just for a few hours here, many people around the world thought that would be such a big boost for Chicago. In seeing the contrast between the joy that Brazilians down the hall from me were shouting and cheering, compared to the sort of shrieks of just sort of -- just shock . . .

HARRIS: Right. Sure.

HENRY: Just maybe an hour or so ago when Chicago was the first one to be knocked out. And I think it's important to point out the case that Rio was making. President Lula da Silva was saying, number one, that he believes that this would help pull even more people out of poverty in Brazil. That this would bring a lot of economic development. A sharply developing economy there in Brazil obviously, number one.

But, number two, also the fact that South America has never hosted an Olympic games. That was a big part of the pitch, to make it fair, make it equitable and perhaps that resonated with these IOC members.

But, finally, there had been a lot of questions, as you know, on the negative side about safety in Rio. About whether they even have enough hotel rooms in Rio. Some of the logistics. All that is going to have to be dealt with. But, let's face it, they've got seven years to work that out. Right now they are celebrating, not just in Rio, but down the hall from me right here.

Tony.

HARRIS: And you make an interesting point, the president of Brazil is a really charismatic man. He and President Obama, by all accounts, have a really good relationship. And at some point it began to feel like, because all of the analysis was that it was Rio and Chicago, Rio and Chicago, and that it was going to come down to the personal personalities of these two high-voltage leaders and, at the end of the day, Chicago doesn't get out of the first round. And at the end of it all, there is Rio standing tall.

HENRY: And -- you're right. And I remember just a few days ago back in Washington, I sat right next to the first lady in the state dining room back in Washington, and she was at the White House at a roundtable with reporters and she recounted that just a week ago in Pittsburgh, President Obama was sitting down with President Lula da Silva in Pittsburgh at the G-20 summit.

And Mrs. Obama said that she sat down next to -- at a dinner in Pittsburgh last Thursday night, just over a week ago, next to Miss Lula da Silva, and Mrs. Obama told us that she said to her, I really adore you. I'm going to hugging you now. But then I'm coming after you. And she said it with a smile, of course. But she was, you know, doing a little fun trash talking, saying, look, we're coming after you.

And this was definitely a battle between the U.S. and Brazil. And let's also not forget that at a previous summit, I remember that after the Brazilian soccer team beat the U.S. soccer or football team, or whatever you call it, President Lula da Silva brought a Brazilian soccer jersey and handed it to President Obama. A little bit of in-your-face, here, enjoy this Brazilian soccer jersey, Mr. President. Our soccer team just beat yours. And now you think about what transpired last week in Pittsburgh and then what transpired today, one of the reasons why a lot of Brazilians today are pretty happy.

Tony.

HARRIS: Well, come on, I mean, the Brazilian soccer team, my goodness, I mean we are making great strides with soccer, football, in the United States. But that Brazilian soccer team is really something to behold.

HENRY: And a short time ago, before this announcement, I saw Pele going by.

HARRIS: Yes.

HENRY: I remember as a young boy watching him because after being a Brazilian soccer star, he was on the New York Cosmos, I think, in the professional soccer league a couple decades ago.

HARRIS: Yes.

HENRY: And the media crush around him was fascinating. I posted some of the photos at Twitter. And it's pretty fascinating because the U.S. had Oprah, they had the first lady. Pele among the celebrities that the Brazilians brought out. And in the end they won.

HARRIS: Ed, it's great to see you. Great job over there in Copenhagen. And I know you'll be joining Kyra in just a couple of minutes. Our senior White House correspondent, Ed Henry, in Copenhagen.

And we are pushing forward with the next hour of CNN NEWSROOM, after a quick break, with Kyra Phillips.

(COMMERCIAL BREAK)