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Chris Christie Stumps for Romney; Al Qaeda Recruiting in Libya; Syrian Government Faces Military Defectors; Preparing for New Year's Eve; Chris Christie Stumps for Romney; 2012 Economy: A Look Ahead; New Year's Apps

Aired December 30, 2011 - 09:00   ET

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

HALA GORANI, CNN ANCHOR: Hello, there. It's not quite 2012 yet. We still have some news to get to you before the new year. I'm Hala Gorani in Washington. Good morning to everyone. Kyra Phillips has the day off. And we begin with the latest out of the United States in terms of politics this morning.

Let's get you straight to Iowa. We're expecting any minute now, by the way, the New Jersey governor, Chris Christie, who will join Mitt Romney in Iowa. Christie is a rising star, of course many Republicans wanted in this presidential race. He endorsed Romney back in October and this will be their first joint appearance since then. Just four days before the Iowa caucuses.

And Mitt Romney is going into this confident, according to the polls, still leading four days as we said before these Iowa caucuses.

CNN political reporter Jim Acosta is awaiting the event. He's in west Des Moines this morning.

Hi, there, Jim. What can we expect today and how much might this appearance by Chris Christie help Mitt Romney?

JIM ACOSTA, CNN POLITICAL CORRESPONDENT: Well, it's going to help him a lot. Chris Christie, as you know, is a very popular figure inside the Republican Party. When these two get out on the campaign trail together it gets all kinds of talk going about whether or not this might be a potential ticket for the Republican Party heading into 2012.

You know, Mitt Romney, people are talking about Mitt-mentum in Iowa right now. There's a brand-new NBC poll out that which shows basically what our CNN/"TIME"/ORC poll showed earlier this week, and that is the former Massachusetts governor has pulled into a lead in this state and it's a pretty stunning turn of events because he's only on his eighth trip to Iowa during this campaign.

Contrast that with some of the other contenders in this field. Rick Santorum and Michele Bachmann have been to every county in Iowa and they're no where near Mitt Romney in terms of where he stands in the polls right now. So this is a big day for Mitt Romney and consider, Hala, just for a minute the campaign schedule that's coming up in the next coming days. So we understand, my colleague Lisa Desjardins from CNN Radio, just tweeted out a few minutes ago that Ron Paul, who was in second place, statistically tied basically with Mitt Romney in the state, will be spending the weekend in Texas with his wife getting ready for new year's eve, which is really sort of amazing because that is going to give Mitt Romney a big opening here, give him lots of air time to sort of put that closing argument out there to the people of Iowa heading into the caucuses.

Mitt Romney is going to New Hampshire later today but he will be back in Iowa for a big swing through the state, basically for the final days before the caucuses start and then he will be Des Moines on caucus night to watch those returns come in. So he is really going all in hoping that the big mo is swinging in his direction and from all appearances at this point, that is exactly what's happening -- Hala.

GORANI: So why would -- what is Ron Paul's campaign saying about why he's going back to Texas? It's a critical time, just a few days before the caucuses on Tuesday. What's the strategy there? What's the thinking behind --

(CROSSTALK)

ACOSTA: You know -- we're not hearing a whole lot in terms of what their strategy or thinking is about this. As you know, Ron Paul is a maverick inside the Republican Party. He is drawing libertarian support. The likes of which, I don't think the Republican Party was really prepared to see. And there are some of the GOP who say, wait a minute, this is just an Iowa situation. If he wins the Iowa caucuses, that doesn't necessarily translate into a nomination.

And that's probably true. But he does do fairly well in New Hampshire. There are a lot of libertarians there. And so Ron Paul is a force to be reckon with right now. He is certainly on a roll and it's going to be interesting to watch. He has the ground forces in place to win these Iowa caucuses.

Mitt Romney is debatable whether or not he has the ground forces to translate those poll numbers into a caucus victory. So a lot of drama here. We're going to be watching over the coming days, but no doubt about it, there -- Mitt-mentum is for real right now in Iowa -- Hala.

GORANI: OK. We'll it's the first test. Not of course necessarily an indicator of future performance but an important one nonetheless. And we are expecting any moment now Mitt Romney and Governor Chris Christie of New Jersey to make an appearance, a joint appearance, it's a rainy day there. You're seeing on the foreground at opened umbrella, "Romney for President" rally is what is happening in west Des Moines and we'll go there live as soon as the event starts for you.

Here's a quick look at where the Republican presidential candidates will be today, by the way. Beyond Mitt Romney. There's Michele Bachmann, she gets some help from Congressman Steve King on the campaign trail in early Iowa. Rick Santorum, who surged in the polls, tripled his support, he will be in Ames to host the first of two college football watch parties. He starts with the Pinstripe Bowl at 4:00. He heads to Johnston later for the inside bowl.

Newt Gingrich in Des Moines. Later he hold a tele-townhall meeting phone calls only for that one. Rick Perry will visit Waterloo and Ron Paul will be in Le Mars for part of the day.

Two candidates head to New Hampshire today. We heard there with Jim Acosta that Mitt Romney, in Merrimack, this afternoon, the host of "Romney for President" spaghetti dinner fundraising. And Jon Huntsman campaign in Plymouth.

This weekend is your chance to see the GOP presidential candidates offer their closing arguments, so to speak, uninterrupted and in their own words. The "CONTENDERS 2012" this Saturday and Sunday afternoon at 2:00 Eastern right here on CNN.

All right, let's turn our attention to international news. There is really a lot going on here on the last sort of home stretch before 2012.

Just months after NATO forces began pushing Moammar Gadhafi from power, there are some reports that al Qaeda now has at least 200 fighters in Libya. One source says they're ready to strike and their targets may be well beyond Libya's borders.

What's this about? CNN's Nic Robertson is following these latest developments and he joins us from London by phone.

So the reports are that al Qaeda essentially sent a pointman to Libya back in May and he was charged with putting together this al Qaeda fighting force in Libya, right, Nic?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Exactly. It's long been a concern that as instability increased in Libya, Gadhafi was forced out as the NCC was unable to consolidate a government that radically Islamist al Qaeda included would try to gain a foothold on what has happened here is that Ayman al-Zawahiri, the head of al Qaeda, who sent two top lieutenants to Libya to set up camps there.

One of them was captured as he was passing through Europe, the other one made it. The man who has made it, who has made it to Libya who has established this camp has a known track record of being a radical Islamist who is known to have, even in al Qaeda circles, to have very radical views. He was in training camps in Afghanistan in the 1990s. He has been a close ally of Ayman al-Zawahiri through the 1980s. That's why he's been trusted. That appears to be the reason why he's been given this mission. That and him being Libyan as well.

And you have other al Qaeda leaders as well who are also Libyans saying at the same time to Libyans, now you need to choose your destiny and your destiny is to build an Islamist -- is to built an Islamist base. And so what we are seeing here is al Qaeda now concretely. We have evidence for it. That they are establishing themselves, a base where there is a lack of government right now. And this does come after all that money and efforts spent by NATO to put a stable government into Libya.

GORANI: All right, well, we've seen it in other countries. In Yemen, for instance. So we'll see if there's pickup, if this is an organized fighting force that will be able to mount attacks.

Nic Robertson is reporting from London on this.

Now so much for hopes of a softer relationship between North and South Korea after Kim Jong-Il's death. A statement from the North's National Defense Commission says, quote, "South Korean puppets and foolish politicians around the world should not expect any change in policy."

Beyond that, the North says it's insulted that more South Koreans didn't attend this week's funeral ceremonies.

Let's take you to Syria now. A significant day. Huge anti- government protests are erupting across the country along with more reports of violence. At least eight protesters reportedly killed today. We have no way of confirming that independently. Outside journalists are still banned from Syria.

And you're seeing there some images from Homs today. Because these Arab League observers are in the country, people are feeling emboldened, we're hearing. They're going out and they're hundreds of thousands. Now because international journalists are barred from Syria, it makes this next piece of video all the more fascinating.

CNN has obtained exclusive video of the battle in Homs between government security forces and troops who have defected.

Our reporter there needs to remain anonymous. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: The Baba Amr neighborhood of Homs. Anti- Assad fighters took me into a house where their men were engaged in a shootout with snipers from the Syrian military.

These men say they are all defectors from Assad forces. They call themselves the Free Syrian Army. One of the men managed to take a rifle with a position scope with him when he defected. But most of the fighters from the Free Syrian Army are ill equipped, short on guns and ammunition, and with no heavy weapons.

Still, they have managed to kick Assad forces out of Baba Amr and hold that area. It's possibly the first place in Syria beyond government control.

Checkpoints like this mark the frontline.

UNIDENTIFIED MALE (Through Translator): Assad's troops are about 25 to 30 meters away from us with soldiers and tanks. We are here to prevent them from passing and killing young and old. UNIDENTIFIED REPORTER: The men introduced me to one of their leaders. Abdel Razzaq Tlas is one of the few willing to be identified. He was a lieutenant in Assad's army before defecting. His uncle is a former Syrian defense minister.

ABDEL RAZZAQ TLAS, DEFECTED OFFICER (Through Translator): We got orders in army that went against my oath as a soldier. I'd sworn to protect civilians but when I saw what the government forces were doing to the people, I defected on June 2nd.

UNIDENTIFIED REPORTER: People like Abdel Razzaq Tlas are heroes for the people of Baba Amr. He was cheered at an anti-government demonstration. But Baba Amr is surrounded by the Syrian military and constantly shelled by tanks and artillery.

At a meeting in a safe house, Abdel Razzaq Tlas insists that even though Assad has not used his air force against the uprising only a no-fly zone imposed by the international community could help the rebels win.

TLAS (Through Translator): We are in contact with soldiers who are in the army. They tell us that a no-fly zone is essential to prevent them from getting bombed if they defect.

UNIDENTIFIED REPORTER: For now, the men of the Free Syrian Army are fighting a guerilla war against an overpowering foe.

They smuggle fighters in and out of the neighborhood they control, evading government checkpoints. At night, they search everyone entering and leaving the area to stop government death squads, the so-called Shabiha, from getting in.

UNIDENTIFIED MALE (Through Translator): The street you see over there is controlled by the Shabiha. They are known to kidnap our women and children. We try to prevent this. When strangers come here, we stop and search them.

UNIDENTIFIED REPORTER: The people of this part of Homs are not afraid to take to the streets. There are regular nighttime rallies, but after months of casualties, they have long lost their faith in nonviolent protests. In Baba Amr, many believe that real change in Syria will only come from the barrel of a gun.

(END VIDEO CLIP)

GORANI: Remarkable, exclusive video from inside Syria, the epicenter of the revolt against President Bashar al-Assad. You'll only see this on CNN.

We've counted your votes and now we're just about 15 minutes away from revealing your top stories of 2011.

And Times Square is getting ready to kick 2011 to the curb. The final preparations for the big New Year's celebration in New York City are under way. A live report, next.

(COMMERCIAL BREAK)

GORANI: Live images from West Des Moines, Iowa. We are awaiting that Romney/Christie event. Governor Chris Christie of New Jersey endorsed Mitt Romney back in October. But this will be their first joint appearance since then and we're four days away from the Iowa caucuses.

So, this is something that is seen as being something politically positive, of course, for Mitt Romney, possibly increasing his support in Iowa. But, of course, only times will tell in terms of the polls, whether or not that will translate into actual support.

Just about time for that ball to drop, everyone. 2011 to go away.

New York is getting Times Square ready for the annual New Year's Eve party where you and about a million of your closest friends can welcome 2012. Workers are putting the final touches on the ball and making sure the lights and confetti machines are ready to go. That's the ball.

CNN's Susan Candiotti joins us from Times Square.

Tell us more about the -- hello. Let me see -- that's a 2012 --

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hello.

GORANI: Happy New Year. I have a feeling we will say happy New Year to each other several times over the next few hours.

Susan, tell us about these preparations. Can you see through these glasses?

CANDIOTTI: You know, I can. It's a light green tint. My favorite color. They come in a variety of shades, but I got mine early.

Yes, I can see through them, Hala. Not only give you a taste of not only this, but a little bit of confetti. What do you think? There it goes.

Anyway, they will be dropping a ton of that on New Year's Eve from all these buildings surrounding us and the streets empty here now in this area of Times Square. But 24 hours from now, forget about it. As you know, expecting about a million people here.

And if you take a look now, you can see that they're getting ready to set up barricades. These people that you see over to this side are here not as early as partygoers but they're in line to buy Broadway tickets. But up at the top of the Times Square building, you can see the poll where that beautiful Waterford crystal ball will be dropping when it is midnight tomorrow night.

And, of course, they will have big-name entertainment here, including the likes of Lady Gaga and Justin Bieber. The stage is set for our own Anderson Cooper, who will be joined by Kathy Griffin. So, they're all set for a lot of action here, Hala.

GORANI: Security. I imagine with Times Square, it's always a big concern and I see barricades behind you. How are authorities in New York managing the security situation for this big New Year's celebration? Yes.

CANDIOTTI: Of course, security is the number one priority every year for New York City police, as well as getting an assist from the FBI and a ton of federal agencies. They will be out in force tomorrow night in the huge area surrounding here. They've got 16 checkpoints leading into Times Square. Every one who comes in here will have to pass through a metal detector and wear backpacks.

But, of course, there's always a terror threat, the possibility of that out there. Although there are no current threats, but Ray Kelly says he is ready to take on any comers, they are ready.

GORANI: (AUDIO BREAK) Candiotti in New York.

Let's take you to West Des Moines, Iowa. The event Romney for president rally is under way. Mitt Romney is addressing his supporters there and Chris Christie is standing, as well, on the podium. Let's listen in.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: -- looking for the highest office in the land. I believe this race is not just about replacing President Obama, important as that is. It's also -- it's also a race about saving the soul of America. This is a time to decide what America is going to be over the coming years over this century.

And there's no one that has fought that battle more consistently and effectively than the governor of New Jersey. And so, I want to welcome the great governor of New Jersey, Chris Christie.

(CHEERS)

GOV. CHRIS CHRISTIE (R), NEW JERSEY: Thank you, Mitt.

Thank you all very much for being here this morning. Thank you for coming with me to welcome the next president of the United States of America, Governor Mitt Romney.

Listen, America is watching Iowa. As we always do every four years, we're watching Iowa, and Iowa is going to be the folks to help to start this process, to get us going and to make sure that the Republican Party nominates the very best person to take on President Obama in November.

Now, when you look at that (AUDIO BREAK) debates, I think you got to come to the conclusion I've come to. There is no person better qualified by his experience and his character to take on Barack Obama and to lead the United States of America than Governor Mitt Romney.

(CHEERS)

CHRISTIE: And this election is about our kids. It's about our kids and their future -- and that's what Governor Romney has talked about all across this country. He and Ann and their family have benefited greatly from all the opportunities that America has offered to them. They want the same thing for their grandchildren. And they want the same thing for your children.

And the fight to take back the White House starts on Tuesday night and it starts here in Iowa and we are counting on you to get out there. Take nothing for granted. Elections are decided by the people who show up, by the people who vote, by the people who care about their country enough to be out here on a Friday morning in Iowa in the rain and the cold because you love your country and because you believe this man can help lead this country back to greatness.

Now, listen, this is a fight just starts on Tuesday and it's going to continue right through November.

And the president of the United States, he's going to be out here and he's going to be trying to tell you a story -- a story that somehow America is doing better after his three years of leadership in the White House. Now, we know that's not true. We know that's not true. And the president is going to try to convince you somehow that he deserves to be rehired.

Well, let's be real clear. Let's be real clear. President Obama came out to Iowa three years ago and he talked to you about hope and change.

Well, let me tell you, after three years of Obama, we are hopeless and changeless and we need Mitt Romney to bring us back, to bring America back.

(CHEERS)

CHRISTIE: So, I want to thank you all for being here this morning. I am thrilled to be in Iowa. New Jersey is watching you, too. We're watching you really closely.

So, listen, we want to tell you something really clearly. I'm in a good mood this morning. I'm feeling happy and upbeat. I love being with Mitt and Ann, but let me tell you, you people disappoint me on Tuesday, you don't do what you're supposed to do on Tuesday for Mitt Romney, I will be back, Jersey style, people. I will be back.

But I'm much -- I'd much rather come back to Iowa this fall. I'd much rather come back this fall to campaign for Mitt Romney and to help you help him lead this country. All you need to know is this, I'll be there every minute that I could possibly be to help him because I believe in our country just as much as you do.

So, everybody, thanks for coming out this morning. I appreciate it very much and, it is my extraordinary honor to introduce to you the next president of the United States of America, Governor Mitt Romney.

(CHEERS)

ROMNEY: What a guy that guy is. Isn't he amazing? Gosh, we're so lucky to have him in our party and leading a great state like New Jersey, fighting the battles to take back America.

This morning I have -- well, someone I met in high school with me. I went to a party at Stu White's house.

I'd seen the girl in elementary school, but she was in the second grade, I was in the fourth grade. So, I didn't pay a lot of attention at that point. But when she turned almost 16, I thought she was pretty interesting. And I went over to here, she had come with someone else, someone else who brought her a ride to the party.

And I went up to him and I said, look, I live closer to Ann than you do. Why don't I give her a ride home for you? And he said, OK.

And we've been going steady ever since. My sweetheart, Ann Romney.

ANN ROMNEY, MITT ROMNEY'S WIFE: I got one. Thank you.

GORANI: Mitt Romney there endorsed by Chris Christie back in October. Chris Christie, the governor of New Jersey, making an appearance in West Des Moines, Iowa, saying that no one is better equipped to take on Barack Obama than Mitt Romney. And also, urging the Romney supporters to actually show up four days from now for these Iowa caucuses.

Turnout critical, of course, for Romney to maintain this lead. He is now in a statistical tie with Ron Paul in the latest polling, and aimed his criticism at Barack Obama, as well.

We're going to take a short break here on CNN. We'll continue to follow the campaigning out of Iowa from other candidates, as well, in the GOP field.

And after the break, this year, we saw regimes fall. We saw Capitol Hill bicker and we saw cities around the world occupied. So, what made your list for the top stories of 2011?

The countdown of your picks are revealed in just minutes. Stay with us.

(COMMERCIAL BREAK)

GORANI: 2011 was a year of highs and lows, big events and even bigger changes. So, we asked you, our CNN viewers to vote on the top ten stories that affected our world and changed our lives this year. Without further ado, let's count them down.

(BEGIN VIDEOTAPE)

GORANI (voice-over): Number 10: the royal wedding. Prince William and Kate Middleton become husband and wife. Sealed with a royal kiss and the ceremony watched worldwide, Kate the commoner is now Catherine the duchess of Cambridge.

Number nine: S&P lowers the U.S.'s credit rating after an 11th hour deal to raise the debt ceiling. In August, Standard & Poor's lowers America's credit rating from AAA, the best in the world, to AA plus, an unprecedented move. Why? In the days leading up to the downgrade, here was President Obama's take.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Not because we didn't have the capacity to pay our bills, we do. But because we didn't have a AAA political system to match our AAA credit rating.

GORANI: In the end, S&P gave two reasons for the downgrade: a broken political system and a last-minute debt ceiling deal that didn't cut far enough.

Number eight: U.S. unemployment remains high. Jobs, jobs, jobs. For much of the year, the unemployment rate stays around 9 percent before slipping to 8.6 percent in November. Still, that means around 7 million Americans are out of work.

Number seven: deadly tornadoes usher in a year of severe weather -- 200 tornadoes, four days, five states. A deadly April tornado outbreak has followed the very next month by the monstrous tornado that devastates Joplin, Missouri. Add to that, wildfires in Texas and hurricane Irene along the East Coast. 2011 was a year of dangerous weather.

Number six: the Occupy Wall Street movement spreads from New York City. A grassroots protest against policies that favor the richest 1 percent takes hold. Occupy Wall Street starts in New York and then spreads to cities across America and around the world.

(END VIDEOTAPE)

GORANI: Well, if we only had those five stories, it still would have been an incredible year, but our countdown has just begun. Coming up, we reveal your picks for the top five stories of 2011.

(COMMERCIAL BREAK)

GORANI: Back to our countdown of the top stories of 2011 as voted on by you, our viewers. Before the break, we revealed number 10 through six. Now, it's time for the top five.

(BEGIN VIDEOTAPE)

GORANI (voice-over): Number five: Apple founder Steve Jobs dies of cancer at 56. He was a pioneer, an innovator, a man who put the world in the palm of our hands. Steve Jobs started Apple in a Silicon Valley garage and built it into the world's leading tech company -- always leading edge, always cool. He lost his battle with cancer in October.

Number four: Congresswoman Gabby Giffords is shot in the head at a public event and survives. In January, accused gunman Jared Lee Loughner goes on a shooting rampage in Tucson, killing six, wounding 13, including the congresswoman, Gabby Giffords. She survived and is making strides in her recovery.

Number three: the Arab Spring spreads from Tunisia, regimes fall in Egypt and Libya. Around the globe, it's been a year of protests, of people power, of revolution.

And the Arab Spring started with the single fruit salesman in Tunisia who lit himself on fire in protests when officials prevented him from selling his goods on the streets. His desperate act set off a call for freedom that echoed across the region. The protests brought the downfall of Tunisia's leader and doomed the long-standing regime in Egypt. It helped spark a war in Libya. Dictator Moammar Gadhafi flees and is later killed.

Number two: Japan suffers a major earthquake, tsunami and nuclear crisis.

UNIDENTIFIED MALE: Oh, my God. That is the biggest earthquake to date. It is still going. Oh, my God, the building is going to fall.

GORANI: On March 11th, a devastating 9.0 earthquake strikes off the coast of Japan, but the worst was yet to come. The quake triggers a massive tsunami, sweeping away nearly everything in its path. Then, a partial meltdown at the Fukushima Daiichi nuclear plant, with radiation leaking into the air and sea.

Number one: U.S. commandos killed Osama bin Laden in a Pakistan raid.

OBAMA: I can report to the American people and to the world that the United States has conducted an operation that killed Osama bin Laden, the leader of al Qaeda and a terrorist who's responsible for the murder of thousands of innocent men, women and children.

GORANI: On May 2nd, Navy SEAL Team 6 raids a compound in Pakistan, killing Osama bin Laden, leader of al Qaeda, and the terrorist network that orchestrated the 9/11 attacks.

(END VIDEOTAPE)

GORANI: And there you have it. Your picks for the top stories of the year. You can explore all of them and look back at the year that was on CNN.com.

So, that was the year that was. That was 2011. What about 2012? Will the economy in this country be any better?

Coming up, a financial expert and author gives us his predictions.

Stay with us.

(COMMERCIAL BREAK)

GORANI: Well, Hollywood's box office was the worst it's been in 16 years, but 2011 does end with a bang, thanks to a pair of blockbusters. Look.

(VIDEO CLIP PLAYS)

GORANI: "Mission Impossible," you see that there and "Sherlock Holmes" are doing well. But overall, attendance at the movies hasn't been this low since 1995.

"Showbiz Tonight's" Nischelle Turner joins us now to break down the numbers.

What's going on? People aren't going to the theaters any more it seems.

NISCHELLE TURNER, SHOWBIZ TONIGHT: Yes. You know, Hala, this is the last thing that studios want to hear. And this has been a down year for Hollywood.

You know, after each weekend when the numbers would come out, there will be all sorts of predictions about how things would improve and they just never did. Not that there weren't hits. I mean, we saw the last Harry Potter film do very well. But it was more of a consistency thing. And now, the "Hollywood Reporter" is calling this the worst year at the box office since 1995.

Now, according to projections, domestic box office revenues for January 1st through the December 31st will reach roughly $10.2 billion. That is down 3.6 percent from the $10.58 billion collected last year. That means an estimated 1.2 billion people went to the movies in 2011, the lowest turnout since 1995, when 1.211 billion showed up at their local theaters. Attendance reached an all-time high in 2002 which was 1.57 billion.

And according to the National Association of Theater Owners, the only good news at the box office came internationally. That's where, according to the "Hollywood Reporter," the major Hollywood studios collected $13.35 billion in ticket sales. That is an all-time record. It's up 6 percent to 8 percent over last year.

Now, there's plenty of speculation as to why this happened. Number one, the poor economy may be keeping people home, in front of their big flat screen TV's with stereo sound, or it could be something like it just wasn't a very good year for movies, which I don't actually agree with because I think it was a good year for movie, Hala.

GORANI: Right. But I always heard in recessionary times, people actually go to the movies more. So, there has to be another explanation as to why box office numbers are lower this year. It will be interesting to hear --

TURNER: It could be --

(CROSSTALK)

GORANI: Yes, it could be.

Or it could be that people's TVs are getting bigger and they're enjoying watching movies at home. I mean, that could be a possibility, as well.

What about this -- OK, you're going to have to tell me about that -- special romantic Christmas gifts for a few high-profile celebrities. Romantic.

TURNER: Romantic. That means love is in the air, Hala. All over Hollywood, love is in the air.

We've all seen it. Christmas time is a great time to get engaged. And some celebrities -- well, they just pop the question.

Number one, Wynonna Judd. She's getting married for the third time. "People" magazine is reporting that her musician boyfriend, Cactus Moser, popped the question on Christmas Eve. So, congratulations to them.

But, also, Michael Jordan is apparently getting married. He's doing it for the second time. CNN has confirmed that he and his model girlfriend, Yvette Prieto, just got engaged.

And here's another repeat offender. It appears that Steven Tyler and his girlfriend, Erin Brady, might be getting married, too. Brady was seen out and about with what looks like an engagement ring. But Tyler's rep would only tell "Showbiz Tonight": no comment.

GORANI: What number would that be for Steven Tyler then?

TURNER: Oh, God, I think I lost count. I'm not sure.

GORANI: Because she's --

(CROSSTALK)

TURNER: No, I think maybe his third. I think it's his third. Yes, I think it's his third.

GORANI: Thanks, Nischelle. Well, by Hollywood standards, that's not too bad. Thanks, Nischelle Turner.

Want information on everything breaking in the entertainment world, be sure and watch "Showbiz Tonight" at 11:00 p.m., on HLN with Nischelle.

How will the job market look next year and how tough will it be to start a business? Coming up, a financial expert and author looks into his crystal ball. Stay with us.

(COMMERCIAL BREAK)

GORANI: Well, there's been some positive economic news in the United States in 2011. The unemployment rate has gone down. Will that trend continue next year? We want to know how the job market and three other pillars of the economy, crucial for the American economy will perform in 2012. Markets, housing and also entrepreneurship. How will they look next year?

Basically talking about retirement funds, your house and everyone's ability to start a business and keep it going. Clyde Anderson is a financial expert and author, he joins us live from Atlanta. Hi, Clyde.

Ok. So if you invested wisely --

CLYDE ANDERSON, FINANCIAL EXPERT: Yes.

GORANI: -- in stocks in 2011, you actually did pretty well. How will 2012 look as far as stocks are concerned? This is important for anyone with a 401(k) or stock funds out there.

ANDERSON: I think it's going to look even better in 2012. I think, you now, a lot of investors right now are breathing a sigh of relief. You know, they say tough times don't last but tough people do. And I think if you made it through this year, you're breathing that sigh of relief and knowing that you're going into more positive terms and more positive times.

Really what we're looking at is an election year. That's always a great thing. You know, a lot of times you see a more robust market in election years. And so we're going to have that and I think a lot of people will benefit from it.

A lot of people are breathing a sigh of relief also that we've avoided a recession. And so they're saying, ok, we've gotten through that. We won't see that. Of course, who knows what to predict as far as some of the things that have happened. Like who knew what was going to happen in Europe.

But I think we're going to see the uptick and on the brighter side of that and investors are in a good position.

GORANI: Of course historically, stocks, always a good investment longer term. So if you're planning on holding your shares for a while, many analysts will recommend that you buy in now.

But let's talk about the issue here in America. Housing prices, they are still falling.

ANDERSON: Yes.

GORANI: You think they will fall in 2012? This is important for Americans because perceived household wealth is what will push someone to go out and buy big ticket items, right?

ANDERSON: Right. Exactly. Exactly. We have to make the point that real estate is local. So it's going to look different in some markets but I think overall we're going to see the prices continue to drop. Foreclosures still the buzz word and it's still what we're hearing a lot of. And there's a lot of that out there, still.

And so we're going to see a lot. I think it's 1.4 million foreclosures as RealtyTrac says out there on the market. But what a lot of people are looking at is that shadow inventory that we've hear a little bit about. That's the inventory that still sits in the pipeline of a lot of these banks and financial institutions that hasn't even hit the market yet.

So we're going to see if prices continue to fall. I think for the rest of 2012. Still a great time to buy, but, again, for those people that sitting in neighborhoods and seeing their values still decline more.

GORANI: Ok, yes, this market does not need more supply. What about the jobless rate? Where is that going to go? We saw it fall under 9 percent this year. Do you think it will go down further next year?

ANDERSON: Yes. Who thought we'd be happy to see the job market fall below 9 percent and celebrate about. I think that's a great thing that is happening and we're going to continue to see that trend. I think we're seeing companies and employers are going to feel a lot more comfortable hiring, spending some of that cash that they've been sitting on and so I think we're going to see them go out and hire some more. You're going to see a lot of people that were in jobs that they maybe weren't happy with that they had to take; now exploring their options for some other opportunities.

Technology and health care continue to be the big ones that really kind of drive the market. Health care and home health is going to be huge. So I think really a lot of people are looking into what industry they want to be in, where they are and what other opportunities are out there for them. But I think this is the time to really to explore it,

And a lot of people are looking at the aspect that social media is really driving a lot of this. You know, 18 million people credited Facebook to finding jobs. And so really have to look at technology to help us explore those job opportunities as well.

GORANI: All right. Interesting. Clyde Anderson, thanks very much. Pleasure talking to you this morning.

ANDERSON: Thank you.

GORANI: Well, we're following many developments this hour. On the next hour of CNN NEWSROOM. Jim Acosta is live in West Des Moines, Iowa.

JIM ACOSTA, CNN POLITICAL CORRESPONDENT: Hi, Hala. That's right. I'm covering Mitt Romney's campaign for president here in West Des Moines, Iowa. And he is riding high on the polls and on the march to a victory in a state that could make him very hard to stop for the GOP nomination. I'll have a live report coming up in just a few moments.

GEORGE HOWELL, CNN CORRESPONDENT: I'm George Howell in Atlanta. It is a public safety threat in neighborhoods across the country. Instead of fireworks to celebrate the New Year some people turn to firearms and celebratory gunfire. We look at some of the things cities are doing to make people think twice. That story coming up here at the top of the hour.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: And I'm Alison Kosik at the New York Stock Exchange. So you say you want to pay your Verizon wireless bill? Well, some people are actually going to have to pay Verizon for the privilege of paying their bill. I'm going to tell you how you can avoid that new fee in the next hour -- Hala.

GORANI: All right. Please do, Alison. Thanks very much. And thank you to you all.

Also coming up next hour Iran's threats to shut down a crucial oil shipping route get louder as its navy plays war games. We're talking about how serious the threat is in the Strait of Hormuz, what it means for the White House contenders, and how it could hit your bottom line.

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GORANI: Checking stories across the country.

A volcano erupted on a remote Alaskan island sending an ash cloud 15,000 feet into the air. The U.S. geological survey is raising the alert to orange, the third highest of four possible warnings. It says more explosions are possible there.

Outside Los Angeles a teenage hiker and his dog wound up trapped on a steep cliff yesterday. The dog slid off the trail and Ivan Silis went after her. But they couldn't climb back up and both were in danger of sliding all the way down the mountain. L.A. Fire Department rescuers used ropes to rappel down and get them.

And in Las Vegas, something no one had ever seen before. An inventor debuted his fly board which allows him to zoom over any lake or ocean using a powerful jet stream of water. Kind of like a jet ski but for the air. He plans to market them for about $5,000 a piece if you're interested.

No matter what you have planned for New Year's Eve, there's probably an app to help you along the way. We take a look at the best options next.

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GORANI: Well, what are you doing New Year's Eve? Whatever it is there's probably an app for it. Karen Caifa in Washington with a look at some of the must have Smartphone apps for tomorrow night. So tell us, what is an app that might help people plan their New Year's Eve celebration, Karen?

KAREN CAIFA, CNN CORRESPONDENT: Well, good morning, Hala. As is the case with most of these things nowadays, there are a lot of apps out there. We decided to just take three of them that could be really useful and really enhance your New Year's celebration. Starting with the official app of the Times Square Ball Drop. Now Hala, I don't know if you've ever experienced New Year's Eve in Times Square, but it gets very chilly. And it also gets very crowded. The app takes all of that out of the equation and instead puts the countdown in the palm of your hand. You can send your friends greetings.

And actually if you want to read up on the history of the ball drop, which has taken place for over 100 years, they've got everything you need to know about that as well. And then you can join them back for the countdown at the stroke of midnight.

Another key element of a New Year's celebration is a toast. A lot of people are watching their wallets after the holiday season. The Ikea Stall app lets you do a virtual toast with a variety of glasses, champagnes, and wines. You can also clink smart phones with someone who is at the party with you to celebrate that New Year's toast. And you can take a picture to capture the moment.

And another important one to keep in mind, Hala, as people go about their new year's celebrations, if you do decide to drink tomorrow night, you think you've had a little too much, look for an app like the taxi magic app. What's it going to do. It's going to find you a variety of car companies and cab companies in your area that can just pick you up.

A lot of these cab companies will be doing free rides tomorrow for New Year's Eve. Even if they don't, you really can't put a price tag on your safety. So check out that app and get yourself a ride if you've had too much to drink.

GORANI: So I'm doing the checking off your apps here. I would choose the virtual Times Square celebration, the Real Champagne, and probably the Taxi Magic App. I don't know. It depends how far I stray from home. Thanks very much, Karen.

Ring in the New Year with Anderson Cooper and Kathy Griffin live from Times Square. Our live coverage starts Saturday night at 11:00 Eastern.