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Hiring Surges In November; Dow Surges 100+ Points On Jobs Report; Lowest Unemployment Rate Since November 2008; How Mandela Influenced Obama
Aired December 06, 2013 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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CAROL COSTELLO, CNN ANCHOR: Good morning. I'm Carol Costello. Thanks so much for joining me for this special edition of CNN NEWSROOM as we remember Nelson Mandela. We'll have more on his life and legacy in just a minute.
First, let's start with some breaking news about the economy. Hiring actually surge in the month of November, 203,000 jobs were added last month and the unemployment rate hit 7 percent, which is the lowest rate it's bee in five years.
To discuss all of this, I'm joined by chief business correspondent, Christine Romans. She's in New York. Georgia tech professor of Economics, Danny Boston is with me and Zain Asher is at the New York Stock Exchange. So welcome to all of you.
Christine, I would like to start with you. I posted the good news, the good jobs reports on my Facebook page and people were very cynical about it, skeptical, they don't believe it.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Let me tell you a couple reasons why and the White House points this out in the statement about the job situation. All of the improvement in the unemployment rate, the reason it fell to 7 percent was because people newly laid off found work. People who have been out of work six months or longer, the situation is exactly it was in November as it was in October.
They're having a hard time finding work. People who have been out of work six months, they looking at them as if they don't have the skills and out of the loop, and they're not choosing the candidates. The other reason is the thing called the underemployment rate we talk about, 13.2 percent. It's coming down still too high.
This is the percentage of the American work force that is out of work or work part-time and wants to be working full-time. Over the past year, you've got the best job creation since 2005 and unemployment rate the lowest since November 2008. That is improvement. And this month we saw broad-based job gains, a lot of jobs in manufacturing, warehouse and transportation. There are reasons to be upbeat about this number. It's got to continue and spread.
COSTELLO: So Danny, I'll pose this question for you. As Christine said, the number of jobs grew over the past four months. That's a good thing. That shows we have sustained economic growth. A lot of people still unemployment. We would like the unemployment rate around 5 percent. Still, this is a positive report. So give us the glass half full.
DANNY BOSTON, GEORGIA TECH. DEPARTMENT OF ECONOMICS: Let me give you the glass half full. And I also hope that in discussing this unemployment report, all the issues that Christine just mentioned. The issue around Mandela's legacy, that this should be a part of that discussion. His legacy was about fulfilling the human potential. And part of that is creating jobs, high quality jobs and reducing this historic income inequality.
Now back to the numbers and the glass half full, in my opinion this is the most positive employment report we've had in four and a half years. If you look at where jobs were created, they were created across all major industries, all groups in the economy. Whether that's whites, blacks, Hispanics. They sustained signature reductions in unemployment.
When you add that to sectors, for example, manufacturing, and housing sector and home construction, those things are very, very important. This is a very, very positive report. Not where we want it to be, but it's something to build on.
ZAIN ASHER, CNN PERSONAL FINANCE/BUSINESS CORRESPONDENT: It's going to be interesting. I mean, people are fearing that the Fed tapering is going to be coming soon and we've had several resend economic data as Christine reported yesterday, auto sales are way up, new home sales are way up. Holiday shopping season wasn't great. But as Christine pointed out, people are spending their money wore wisely and not buying stuff they don't he need.
COSTELLO: The fed is looking at the unemployment rate. It's now down to 7 percent. So does that mean the fed going to soon stop stimulating the economy and how going to Wall Street react?
ASHER: It's going to be interesting. People are fearing that it's going to be coming soon, the fed tapering. There are several economic data reports that are in support of that. And they're going to try to do it in such a way as to not disrupt the market and more importantly, do it gradually, $85 billion is what they're buying in terms of stimulus. They're going to wind that down slowly.
The market has finally accepted that good news does equal good news. If you want to get on in this economic recovery, the place to be is stocks. But you knowledge when I talked to the traded downstairs, they say there is one sort of key issue in terms of today. One of those things is low volume. And when you have low volume in the market, that does mean, tends to mean volatility.
So the big question is what's going to be happening towards the end of the day? Are people going to be using this opportunity to sell? The Dow is up 21 percent so far this year. It might be an opportunity for investors to start taking money off the table.
COSTELLO: We'll see. Thanks to all of you.
Let's talk about the weather. It's nasty, a massive winter storm sweeping from Texas to Tennessee. Dumping snow and ice and sending temperatures down ward. Slick roads in North Texas are slowing the drive down. Nearly a quarter million people are without power right now in the Dallas area. Storms affecting air travel nationwide. Flightsaware.com reporting more than 1200 flights has been canceled already.
Alina Machado is in Dallas where freezing rain has fallen all morning. Good morning.
ALINA MACHADO, CNN CORRESPONDENT: Freezing rain has been falling all morning, so has sleet at times. And right now, it seems -- it seems like we're getting a bit of a break. We do have the occasional wind gust, but it is still very cold. And it has been falling for hours. So we hear reports that this area, the Dallas Fort Worth area has seen up to a half inch of ice.
Look around me. This entire around in downtown is frozen. This chair is frozen. This isn't snow, this is really hard ice. I mean this is ice. The bushes are frozen. The roads are slushy. Take a look at the highway behind me. People are taking it easy and taking their time because the roads are slick. This is a treacherous driving situation throughout this part of Texas.
Now, power outages, we're talking about at least 200,000 people without power today here in the Dallas Fort Worth area. We're also hearing of cancellations at the Dallas Fort Worth international airport, departure cancellations. And we know that airlines are doing what they can to get the flights out of here. But they're busy de- icing the planes so that they can take off.
COSTELLO: Yes, better safe than sorry. Alina Machado, thanks so much. Alina reporting live from Dallas, Texas this morning.
Let's head to Wolf Blitzer for more on Mandela.
WOLF BLITZER, HOST, CNN'S "THE SITUATION: Hi, Carol. Thank you. A flurry of emotions for the people of South Africa as the nation pays tribute to its beloved former president. Mandela's Johannesburg home has become a gathering place tore so many people. Some cried as they left candles, flowers, and other mementos.
Others upon hearing of the death of the man they called Madiba celebrated his life and legacy through song and dance. Jacob Zuma, the current president of South Africa had this to say to a nation in mourning.
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PRESIDENT JACOB ZUMA, SOUTH AFRCIA: We sincerely thank all South Africans for the dignified manner in which they have respected and responded to the monumental loss of this international icon who was a symbol of reconciliation, unity, love, human rights, and justice in our country and in the world. (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.
Pope Francis in a statement this morning praised Nelson Mandela's commitment the -- reconciliation and truth. The pope also prayed that South Africans, quote, "Forging a new South Africa built on the firm's foundations of non-violence, reconciliation and truth.
The pope also prayed that South Africans, quote, "Put justice and the common good in the forefront of their political aspirations." CNN's Erin McLaughlin is in London with more now and that reaction is powerful.
ERIN MCLAUGHLIN, CNN CORRESPONDENT: Hi, wolf. Well, people here outside the South Africa house in London are celebrating the life of Nelson Mandela. As you can see, they're singing and dancing. Songs that were sung during the struggle against the apartheid as the world reflects on Nelson Mandela's legacy.
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UNIDENTIFIED MALE: Tonight, one of the brightest lights of our world has gone out.
MCLAUGHLIN (voice-over): News of his death traveled swiftly around the world. In the U.K., Prince William and Kate heard the news while attending the U.K. premiere of the film freedom.
PRINCE WILLIAM: We're just reminded what an extraordinary and inspiring man Mandela was.
MCLAUGHLIN: And just hours before, British actor who portrayed the South African icon in the film, shared this story from one of Mandela's daughters.
UNIDENTIFIED MALE: He told me this, he said I'm not sick, I'm just old.
MCLAUGHLIN: But after hearing of his passing, the actor said in a statement to CNN, what a honor it was to step into the shoes of Nelson Mandela. My thoughts and prayers are with his family. Across the globe, world leaders reflected on the legacy Nelson Mandela leaves behind. At the United Nations, silence, a remembrance of his enormous impact.
BAN KI-MOON, U.N. SECRETARY GENERAL: No one did more in our time to advance the values and aspirations of the United Nations. Nelson Mandela showed what is possible for our world and leading each one of us, if we believe.
MCLAUGHLIN: Today he is remembered in every corner of the globe. The Australian prime minister -- TONY ABBOTT, AUSTRALIAN PRIME MINISTER: Nelson Mandela was one of the great figures of Africa, arguably one of the great figures of the last century, a truly great man.
MCLAUGHLIN: And in Canada, where in 2001 he became the first honorary citizen of Ottawa. The prime minister said the world has lost one of the world's great moral leader.
UNIDENTIFIED MALE: Mr. Mandela left prison with his mind closed to any settling of scores and his heart open to those he had fought against.
Mandela in his fight for equality -- office's been an inspiration, not just for South Africa, but around the world.
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MCLAUGHLIN (on camera): Earlier today, the British prime minister was here to sign a book of condolences. The general public has lined up around the block to be able to do the same. This used to be an area of anti-apartheid protest during Nelson Mandela' incarceration. Now it's a place where people are coming to pay tribute, one of many around the world.
BLITZER: Erin McLaughlin, thank you.
We'll have much more on Nelson Mandela and his legacy. Rick Stengel, he'll be my special guest.
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UNIDENTIFIED FEMALE: When I had chance to speak with the daughter and granddaughters of Nelson Mandela, I found it interesting. One of the comments that the daughter said that so many people believed that Nelson Mandela fell from the sky and it stopped me in my tracks. Because I'm like, didn't he? Didn't he fall from the sky. He seems like such a larger than life person.
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BLITZER: Inspiration and a personal hero. That's how President Obama refers to Nelson Mandela. A man he met some eight years ago at a meeting here in Washington, D.C. when Obama was still a freshman senator from Illinois. Yesterday, the president spoke out about Mandela's impact on his life.
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BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: The day he was released from prison gave me a sense of what human beings can do when guided by their hopes and not by their fears. And like so many around the globe, I cannot fully imagine my own life without the example that Nelson Mandela set.
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BLITZER: Joining me now is Rick Stengel, the former managing editor of "Time" magazine. He collaborated on "Long Way to Freedom: The autobiography of Nelson Mandela. He is also the author of "Mandela's Way, Lessons on life, love and courage." Rick, thanks for joining us. The president will be heading over to South Africa to pay his respects and America ago respects to Nelson Mandela. What should we be paying attention to?
RICHARD STENGEL, FORMER MANAGING EDITOR, "TIME" MAGAZINE: Wolf, I think every world leader, including President Obama wants to borrow a little bit from the halo of Nelson Mandela. But in the case of President Obama, a mixed-race president, a man whose father was from the continent of Africa, the same continent as Nelson Mandela, I think he's looking to touch base with some of his roots and also be a part of this grand increase in human freedom that Nelson Mandela helped usher in and which he has talked about. Even last night he used that great line from Martin Luther King about the world bending towards justice. And I think -- Nelson Mandela helped the world bend in that direction.
BLITZER: You were showing viewers a lot of video and pictures of you and Nelson Mandela. You spent an amazing amount of time with this great man. And you know, in recent years since the revolution, since he became the first black president of South Africa, since there was de democracy, he almost single-handedly kept that place OK. Shouldn't we be worried now about the future of South Africa now that Nelson Mandela has moved on?
STENGEL: Wolf, I would love for people to feel like we have learned the lessons of Nelson Mandela. We will keep the fire alive. He would say that himself. He would say that South Africa can succeed in part based on what he helped create. But it's no longer necessary for him to be around on a day-to-day basis. In fact, he hasn't been for the last five to ten years. I think he would hate it if his legacy was undermined by the fact that he was no longer alive to preside over it. That is the big challenge that South Africa faces, however.
BLITZER: If anyone could have been bitter or angry and sought revenge, it could have been Nelson Mandela after 27 years in prison. How did he get over that?
STENGEL: You know, Wolf, I've said it wasn't as though he was actually without bitterness or without anger. He understood what happened to him. His life was taken away from him. His family was taken away from him. But he learned and decided in prison that the only way that he could become the leader of this country, that he could achieve justice for his country was through reconciliation and not revenge.
He understood that from the moment he got out of prison he could never, ever let anyone see any bitterness or anger or frustration. He would say, let us forget the past. This was wonderful to the ears of the South African whites and less pleasing to the years of South African blacks who had been denied justice for all of these years. But he knew he had to reconcile his people to achieve harmony and democracy.
BLITZER: An amazing man, indeed. Rick Stengel did a wonderful job writing about Nelson Mandela over all of this years. Rick, thanks very much.
STENGEL: Thank you.
BLITZER: Let's go back to Carol. She is monitoring a lot of other important news - Carol.
COSTELLO: Yes. Like the weather, terrible ice storm out west and down south. This stuck truck shows the danger on the roads from Texas to Tennessee. We'll show you where a massive ice storm is now and where it's heading next.
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COSTELLO: We'll continue our special coverage of the death of Nelson Mandela in just a minute.
But first some other stories this morning at 27 minutes past. An ice storm is knocking out power and making drive dangerous all the way from Texas to Tennessee. And snow is also falling in Arkansas, felt all night there. The weather is being blamed for one death already there. And nearly a quarter million people are without power in the Dallas area alone. And they're warning for catastrophic conditions for parts of Arkansas and Tennessee. And Chad Myers, I'm almost afraid to hear the forecast.
CHAD MYERS, AMS METEOROLOGIST: I have a Google earth and I can draw all the way around the ice storm, 120,000 square miles right now being covered up by ice. So if you have power lines down in that large of an area, these power crews aren't going to be able to get the lines up very quickly. It's going to take some time. This is all snow. And that's great.
Right through here, the purple and the pink, that's the issue. This is where it's raining and it's 28 or raining and 30. Those are ugly numbers because it's liquid. How can that possible happen? How can it rain in 28? Why doesn't it snow? Because the loft is 50 degrees and it's raining down into the shallow area of cool air at the surface and freezes when it hits.
If it makes noise it's called sleet. And if it doesn't make noise, then it's called -- I would love for everybody to get sleet. Sleet you get traction with that and when you get wet ice on the ground and it's raining on top of that ice, there's no traction. Memphis is just about ready to change over.
Indra Petersons is right there. The rain is over, about to ice up on that and even icing to Nashville and parts of Kentucky and parts of Ohio. And D.C., Washington, D.C., you're not in it for this storm, but there's another one for you Sunday night. They are going to be an ice storm in the nation's capital Sunday night. But can you imagine, that won't be a good city to drive around in on --
COSTELLO: I'm going to be there Monday morning, and I have to drive into work.
MYERS: Well, then you better get there now.
COSTELLO: I'm leaving right after this show.
Other top stories we are covering for you. The engineer behind the controls of the commuter train that derailed in the bongs now suspended without pay. Four people died when that train jumped the tracks on Sunday. A funeral for one of those victims schedule for today.
Frightening scene at the airport in the U.K, yesterday, winds at the Birmingham airport was so strong, this plane was forced to abort its landing moments before touching down. Wind gusts as high 140 mph nearly turned the plane sideways as it approached the tarmac.
