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Unemployment Rate Drops to 7 Percent; Remembering Nelson Mandela; Ice Storm Rolls from Texas to Tennessee; How Mandela Influenced Obama

Aired December 06, 2013 - 09:00   ET

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

CAROL COSTELLO, CNN ANCHOR: And the unemployment rate ticked two notches lower to 7 percent. That's the lowest unemployment rate in five years.

Our chief business correspondent Christine Romans is here to break down the numbers. Better than expected, so should we feel absolutely completely good about this?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: It really is. I saw some broad-based strength in these numbers from warehousing to retail to transportation to construction, so there's broad-based health care as well, so that's important here.

And, Carol, the trend, you know I always talk about the trend, how important that is. When you look at the last four months on average, 200,000 plus jobs over the last four months and, Carol, we are on track this year. We are on track for the most jobs created since 2005. We're on track for more than two million jobs created and that is a market improvement from what we've seen in recent memory. So this is good news, a 7 percent unemployment rate is still good news.

You'll hear people talk about their concerns about this number, this underemployment rate, 13.2 percent. Those are people who are unemployed or they're working part-time but they'd like a full time job. That number still too high. Shows we have work to do, shows that we still have in the next year, the next two years, need to be creating more jobs and were good paying jobs.

But in terms of the direction of the economy in the near term these numbers broad based, different sectors showing gains, the trend, the last four months, 200,000 plus jobs created, and unemployment rate now the lowest since November 2008, it shows that healing in the labor market is really gaining speed. I would say hiring is picking up, layoffs are slowing, and we're seeing these signs of strengthening in the economy.

You know, the one number I looked at this week that really got me were the car sales numbers. You don't buy a car, Carol, if you're not confident in your job, and you don't think that you can, you know, keep your job and move up at your job. And so with those car sales numbers doing better, it's a sign of maybe some confidence about the job market.

(CROSSTALK)

ROMANS: Still a lot of work to do. I don't want to overplay it.

COSTELLO: A surprising thing, though. Auto sales are up, new home sales are up, but the start of the holiday shopping season has been disappointing. Sales fell, what, for the first time since 2006.

ROMANS: Right. Right.

COSTELLO: So that kind of doesn't make much sense to me.

ROMANS: It makes perfect sense to me because these are smart -- people are smart, right? They -- the recent memory of the recession is still fresh so they're feeling better about things. If they're going to make a purchase it's going to be a home, it's going to be a car, it -- maybe they're going to, you know, college tuition. They're going to pay down some debt, they're going to make sure they're managing their credit card bills a little bit better.

I think this is a year, the first year in a long time I've seen consumers not completely outsmarted by the retailers over the holidays. I also think they know they're -- I think that's great, right?

COSTELLO: I do, too.

ROMANS: So --

(LAUGHTER)

ROMANS: So I'm going to take this as a solid economic report and another asterisk to all of the strengths. Don't get me wrong. But for a long time it was only weakness, and now you're starting to see these places where the economy is moving again. You know, will it last beyond four months? That remains to be seen.

Also, one last thing, the Fed. This might give the Fed ammunition to start its so-called taper to pull back on its stimulus early next year. They've got to be very careful about how they do that and when they do that. They don't want to hurt the labor market, you know, by pulling out the supports to the economy, so we're going to have some very interesting weeks and months ahead -- Carol.

COSTELLO: OK. What you just -- what you just said about the Fed might mean the stock market isn't spiking up as much as you might expect with these good jobs numbers. So let's head to Wall Street now in New York and Zain Asher.

What are stocks doing right now, Zain?

ZAIN ASHER, CNN BUSINESS CORRESPONDENT: Hey, Carol. Well, it's interesting. Because futures are reacting positively, very positively. Dow futures up by triple digits.

You know, it's interesting because if we had had these strong numbers just a few months ago, you would have seen the futures probably dropping sharply but that's what we're seeing. It looks as though the market is maturing and finally accepting that good news does actually mean good news. The economy is getting stronger.

You're also going to be seeing these numbers long-term investors who are betting on the economy actually buying in, short-term investors might be a little bit more concerned about what the Fed is doing. But I think overall, yes, as Christine Romans, my colleague, just mentioned, this does mean that there is a higher probability of the Fed beginning to taper at some point in the near future.

Obviously you have the Fed last -- the last meeting of the year coming up in two weeks, so people are going to be asking themselves, what will this mean for tapering? Obviously it's not just about the jobs numbers. You want to see consistency and other positive economic data as well. Obviously this week we've got car numbers, we've got jobless claims, we've got new home sales as well.

All of that coming in very positively. But I think that you do need to see consistency, but also you need to make sure that in the next couple of months you don't see a reversal, as in seasonal workers that were added for the holiday season, you know, being laid off or losing their jobs in the next few months. So yes, really do need to see consistency.

COSTELLO: All right.

ASHER: But yes, this does bring to light Fed tapering possibility -- Carol.

COSTELLO: All right. Zain Asher, reporting live from the New York Stock Exchange.

Let's head to the White House now because this is good news for the Obama administration, especially -- it comes on the heels of all the bad news about Obamacare.

Brianna Keilar is at the White House this morning.

Good morning, Brianna.

BRIANNA KEILAR, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good morning to you, Carol. And you're exactly right. This is very positive news for the Obama administration. We don't have official reaction yet, that normally comes a little later, generally in this hour, so we'll be looking for that. But I think the read -- we've been through so many reports I think we have a sense of what the reaction will be, which is that this is a positive trend. There's still more work to do.

And you said, Carol, this allows President Obama to focus on the economy, something he actually already tried to do this week in an address where he outlined some new economic initiatives like the minimum wage, like increasing investments and infrastructure and education, so this gives him a little fuel to do that as the rollout to Obamacare has been so rocky. But this is certainly something the White House is welcoming -- Carol.

COSTELLO: All right. We'll check back. Brianna Keilar live at the White House this morning.

And now let's head back to Washington and bring in Wolf Blitzer for more on our special coverage of the passing of Nelson Mandela.

Wolf, take it away.

WOLF BLITZER, CNN ANCHOR: Good morning, Carol. Thank you.

To the world, Nelson Mandela was a freedom fighting revolutionary who later rose to be a statesman and ultimately influenced others as an icon and ambassador of peace. But in his native South Africa he was simply and lovingly known by his clan name, Madiba, a symbol of the respect his countrymen had for their former president.

Moments ago the current South African president, Jacob Zuma, announced -- who announced Mandela's death yesterday spoke about his legacy.

(BEGIN VIDEO CLIP)

PRES. JACOB ZUMA, SOUTH AFRICA: We'll always love Madiba for teaching us that it is possible to overcome hatred and anger in order to build a new nation and a new society.

(END VIDEO CLIP)

BLITZER: President Zuma also announced funeral plans for Nelson Mandela, including a National Day of Prayer and Reflection this Sunday, an open air memorial service at Johannesburg Soccer Stadium next Tuesday, and his burial on December 15th.

And in Johannesburg and throughout South Africa, a variety of tributes now appearing among them. Flags that are flying at half staff. It's a mood echoed in the United Kingdom where the Prime Minister David Cameron said Mandela's dignity inspired millions.

Here in the United States White House flags were also lowered on the order of President Obama. And up on Capitol Hill the House Speaker John Boehner has issued a similar request.

Let's go to Johannesburg right now where crowds have been gathering since Mandela's death was announced.

Our senior international correspondent Arwa Damon is on the scene for us. Arwa, there has been a flurry of emotions from mourners, some in tears, others celebrating the life of their beloved former leader through song and dance. Tell us what you are seeing and hearing.

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Wolf, this is still a country that is very much processing what has taken place, and if you just take a look, this has been the atmosphere here in Johannesburg outside of Nelson Mandela's home where he did spend his final months and weeks and moments, when he was under intensive care, passing away in the house just down the street here.

And this has become something of a makeshift gathering point for all involved. There's been a lot of singing, dancing, chanting, a lot of celebrating at this stage. A man to whom this nation everyone we've spoken to will tell you owes just about everything.

We've spoken to a number of different people. To give you a few examples, a 23-year-old black university student who really wanted to point out that his parents did not live in a nation where they could easily speak with white people, where they could use the same transportation systems, work alongside one another, but he, because he said of what Nelson Mandela had done for this country, because he chose to reconcile rather than seek revenge, this young man now had the opportunity to go to school.

We also spoke with a white woman who was here with three of her children, laying flowers. She said she wanted to bring them here so that they would begin to learn and understand and live this moment, but that she also wanted to send them the message that those dark days of South Africa's past were most certainly a thing of the past.

A lot of emotions here at this stage quite naturally. The nation trying to grapple with what has happened. And people will tell you that even though Mandela's often referred to as being a hero, an icon, they themselves say that those words are not sufficient enough to describe what he has done for this country -- Wolf.

BLITZER: And I guess the whole country is getting ready for a lot of world leaders including President Obama to come to South Africa to pay their respects.

What are you seeing and feeling there in anticipation of all of these world leaders coming there?

DAMON: Well, there most certainly is the sense of appreciation and pride that a South African leader like Nelson Mandela put this country into the spotlight, and that his passing away is causing this attention, these global leaders to come into the country itself.

There's also a sense amongst people that perhaps this celebration, this aura of celebration is going to morph into a much more somber atmosphere, especially as we get closer and during the days when he is actually being buried, the day when of course that memorial for him is going to be taking place.

This has really been a moment for so many that we've been speaking to, to really feel that sense of pride in the country that's pride -- in fact that their country gave birth to an individual that's considered by so many global leaders to be such a hero and an icon -- Wolf.

BLITZER: Arwa, thanks very much. We'll check back with you.

Arwa Damon on the scene for us.

Still to come we'll have much more on the impact of Nelson Mandela and his legacy. Rick Stengel, Mandela's biographer, the former managing editor of "TIME" magazine, he'll be my special guest.

(COMMERCIAL BREAK)

COSTELLO: You can call it ice Friday. Take a look at the tower cam in Dallas, Texas, right now. Testament to the freezing rain that's falling as we speak. The lens of that camera just frozen over, it's only 29 degrees in Dallas this morning. Freezing rain is continuing to fall. They've already had an inch and a half of snow and ice.

Oh, man, the high temperature today in Dallas is only going to be 30 degrees, the low into the teens. The only comfort perhaps is that Dallas will not be alone because this is a massive winter storm system and it's dropping ice from Texas to Tennessee. It's knocking out power. It's messing up travel on the ground and in the air.

Snow was also falling overnight in Arkansas, parts of that state are under a category 5 catastrophic ice storm warning. People there could be without power for weeks. Let's talk about Dallas for a little bit, temperatures dropped there, 50 degrees over the last 24 hours.

CNN's Alina Machado was there to feel it all. Good morning.

ALINA MACHADO, CNN CORRESPONDENT: Good morning, Carol.

You know, just when you think this is easing up, it starts to pick up again. The wind starts to pick up, the sleet continues to fall here in downtown Dallas. And there are reports that in the Dallas-Ft. Worth area, there is up to a half inch of ice.

If you want to have an idea of what that looks like, you just have to look around me. Take a look at this chair. It is covered with ice. There is a bit of a glaze over it. These bushes behind me rock solid, frozen. The trees around here and also the roads, the roads are slick. They're slippery.

And that's probably why you're seeing these people taking their time out on the roads. There are already dozens of reported accidents in this area.

Let's talk about power outages, there are more than 230,000 people waking up today without power in this area. And, Carol, if this continues, this will likely continue to rise.

COSTELLO: I was just going to -- I'm sorry, I had a noise in my ear and couldn't hear the last part of what you said but I do hear the freezing rain falling onto the ground in your microphone. So, let's just allow people to listen so they can glory in the freezing rain, along with you.

MACHADO: Yes, it's definitely coming down here, and it will continue to come down it seems for a while.

Like I said earlier, when you think it's easing up, it picks right back up.

COSTELLO: I know, it's amazing. You can hear it fall.

So Alina Machado, thanks so much. We appreciate it.

Later in the show, we'll take you to Memphis. They're suffering there, too. We'll be back with much more in the NEWSROOM. (COMMERCIAL BREAK)

BLITZER: We want to take a closer look now at Nelson Mandela's political legacy, specifically his impact on President Obama, whom he met back in 2005, when Obama was then a junior senator, freshman senator from the state of Illinois.

Rick Stengel is joining us from New York. He's the former managing editor of "TIME" magazine. He's also collaborated on the important book "Long Walk to Freedom," the autobiography of Nelson Mandela. Stengel is also the author, by the way, of "Mandela's Way: Lessons on Life, Love and Courage."

Rick, thanks very much for joining us. Talk about this relationship between President Mandela and President Obama.

RICHARD STENGEL, FORMER MANAGING EDITOR, TIME MAGAZINE: You know, Wolf, I thought the president was very eloquent yesterday, talking about what President Mandela meant to him. I think, in many ways, Mandela was partly responsible for Barack Obama's own political awakening. And he said it was the first political, overtly political act that he had ever taken.

And I think one of the great legacies of Mandela, particularly in America is that it was an awakening for so many people, that people were looking at South Africa, this land that with terrible prejudice, terrible authoritarian government and we were looking at it as almost a proxy for what had happened in America during the civil rights movement, and I think it awakened and it was a revelation for many, many Americans.

BLITZER: I'm sure President Obama and I'm sure you'll agree was deeply disappointed when he was in South Africa earlier this year, with his family, he was not able to go and meet President Mandela, because he was so gravely ill. I'm sure he would have loved to have done that, but he obviously couldn't.

He'll head to South Africa in the coming days for the funeral. This will be an important event not only for President Obama but for the United States.

STENGEL: Yes, and again, Wolf, Mandela has not been himself for a number of years. I think it was understandable he wasn't able to meet with the president. Mandela is a man of such great pride. The last few years when his memory was failing him, he was -- he felt awkward, seeing people.

But I do think it's a great opportunity for President Obama, President Obama has had an important and deep focus on Africa, the young African leaders initiative that he started as something that he cares a great deal about. So, I think it will be an important moment when he does go over there for the funeral.

BLITZER: You and I were in Cape Town, South Africa, together a few years, a couple years ago, during the World Cup, when "TIME" magazine and "Fortune" magazine, CNN, we hosted an international conference and President Bill Clinton was the featured speaker.

His relationship, Bill Clinton's relationship, with Nelson Mandela was really, really powerful, wasn't it?

STENGEL: It was very powerful, Wolf. I know they both cherished it, President Mandela cherished it and I know President Clinton did. In some ways, maybe it's presumptuous to say it was a little bit of a father/son relationship.

I mean, Clinton looked up to Mandela. Mandela was an adviser to him and almost a very personal intimate way, and they shared a real bond, and that I loved those beautiful photographs of when Clinton went with Mandela to Robben Island and you see them both looking out of Mandela's old cell, very powerful.

BLITZER: I interviewed Nelson Mandela the day after that visit to Robben Island back in March of 1998. And during that interview, he spoke glowingly of President Clinton, but he also made it clear he did not a have a problem criticizing various U.S. policies and making it clear he had a different international agenda, there you see a picture of the former President Bill Clinton, he was president with Nelson Mandela in the cell in Robben Island and you see First Lady Hillary Clinton there as well.

Mandela was not reluctant to criticize the U.S. when he thought it was making a mistake globally.

STENGEL: Not at all, Wolf. He was a great believer you can disagree without being disagreeable. And he -- I think he made a distinction between the American people and American culture and the American government. I mean, remember, Wolf, in the 1950s, Nelson Mandela was considered a terrorist by the American government. He sought help in the '50s and early '60s from America and was always rebuffed.

And so, his legacy and relationship with American are America was not -- was a fraught one and was a mixed one, and so he never hesitated to criticize the U.S., but he never hesitated to understand the power of America on the international scene.

BLITZER: I'm going to talk about Nelson Mandela with Bill Clinton, my interview with the former President Bill Clinton will air in "THE SITUATION ROOM" later today, 5:00 p.m. Eastern.

Rick, thanks very much for joining us.

STENGEL: Great to be with you, Wolf.

BLITZER: "TIME" magazine is paying special tribute to Nelson Mandela with a commemorative issue, the photo on the cover was taken back in 1990 in Sweden during Mandela's first trip abroad after his release from that Robben Island prison. The issue includes tributes by Rick Stengel as well as by Bono and Morgan Freeman. The magazine hits newsstands Monday.

Still to come, the administration is working out the details for President Obama to travel to South Africa to pay his respects to Nelson Mandela and his family.

Our own Brianna Keilar is over at the White House -- Brianna.

BRIANNA KEILAR, CNN SENIOR WHITE HOUSE CORRESPONDENT: Wolf, good morning to you.

Nelson Mandela was a hero to President Obama from the time even that he was a teenager. I'll have a live report on their special relationship coming up.

(COMMERCIAL BREAK)

COSTELLO: Good morning. I'm Carol Costello. Thanks so much for joining me. We'll get back to our coverage on the death of Nelson Mandela in a minute.

Right now, we're keeping an eye on Wall Street, where investors may be taking a strong jobs report with a grain of salt. As I told you at the top of the show, 203,000 jobs were added in November and the unemployment rate dropped to 7 percent from 7.3 percent.

But while the economy continues to get stronger, it means Wall Street may not need the billions of dollars the Fed has been pumping into it, stimulating it.

Zain Asher is at the New York Stock Exchange with more on this.

Good morning, Zain.

ASHER: Hey, Carol.

Yes, we are in the green, the Dow up 32 points. I think in all of this, as the market is really reacting to the unemployment rate more than the payroll numbers. The payroll numbers came in better than expected, a little bit more than 200,000.

The real surprise to everyone, I think, was the unemployment rate which is really key, because the Fed has said several times they look to the unemployment rate when deciding when to taper. They wanted to get to 6.5 percent. Right now, it's 7 percent. So, we are inching closer.