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American Morning
Retailers Anticipate Post-Christmas Gift Card Redemption
Aired December 24, 2004 - 08:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: In a few moments, the political side of this equation. What would help the secretary to smooth things over with his critics back in Washington?
Good topic for our "Gimme A Minute" crew. And we'll get to that.
KELLY WALLACE, CNN ANCHOR: Yes, indeed, Bill.
Also, was the holiday season a bust for stores? Some retailers are complaining, but maybe they just always complain. We will look at a little catch in how the numbers are crunched that could paint a different picture. That's coming up.
HEMMER: A little bit of that going around, huh, from time to time?
Daryn Kagan is here with us, too.
Hey, Daryn. Good morning to you. Looking at the headlines now.
DARYN KAGAN, CNN ANCHOR: Good morning. For the record, Bill, I did my part with the stores.
HEMMER: Did you?
KAGAN: Yes, I did.
HEMMER: Did you tear them up pretty good?
KAGAN: Yes. According to the American economy, I did. I must have get on the economic record there.
HEMMER: Daryn Kagan stands for GDP.
KAGAN: Absolutely. Thank you.
Also stands for headlines. Let's check in on some of those right now.
Are you trying to make it home for the holidays? Hundreds of travelers trying to make their way out of this holiday morning, buried in a major snowstorm in the Midwest. Take a look at these pictures.
Highways in Ohio are clogged with more than two feet of snow. Traffic is reported to be at a standstill. At least a dozen deaths are being blamed on the weather.
Chad will be along in just a bit to tell us more on what we can expect coming up today.
The woman accused of killing an expectant mother and stealing the baby from her womb is being moved to federal custody. Lisa Montgomery yesterday waived the right to a preliminary hearing, paving the way for a transfer from Kansas to Missouri.
That is where the alleged crime took place. Her initial court appearance before a federal judge is scheduled for Tuesday.
To health news, some four million older Americans could soon get Medicare help in kicking the habit. Medicare is announcing its expanding coverage to include counseling for recipients who smoke and have smoking related illnesses.
The new coverage is expected to take effect by the end of March.
And a Christmas care package is on the way to the international space station. A shortage of food and supplies has gotten so bad NASA has ordered the crew to cut back on meals.
But a Russian ship loaded with cargo blasted off today. It's due to arrive on Sunday. Now, a note to you space buffs out there, NASA says the space station could be visible from Earth throughout the holiday weekend.
Supposedly it looks, if you look up in the sky, it's supposed to look like a little white dot making its way across the dark sky.
But Bill?
HEMMER: Yes?
KAGAN: You know who else that could be?
HEMMER: Oh, that's right. Big red.
KAGAN: There you go.
HEMMER: Hey, what's going on in space? What, do you eat too much? How does that happen?
KAGAN: Well, I think they've had trouble, you know, getting things back and forth ever since the space shuttle.
HEMMER: Big diets, too, huh?
But, did you finish your shopping, my dear?
KAGAN: I am done shopping, but I'm not done packing.
HEMMER: Yes.
KAGAN: For the record. I have no time to be here today, but for you, I am here.
HEMMER: Thank you, Daryn. Talk to you later. Attention procrastinators, here on the same topic that Daryn and I were discussing here. Alan Chernoff is at a mall in Short Hills, New Jersey. One final day left.
Alan, good morning.
ALAN CHERNOFF, CNN CORRESPONDENT: Good morning to you Bill.
And some of the stores have actually been open since 07:00 this morning. We only have a handful of early birds, though. But in a few hours, you can be sure this place is going to be packed with shoppers hoping to meet that Christmas deadline.
For the retailers, though, this is not the end of the holiday season.
(BEGIN VIDEOTAPE)
CHERNOFF (voice-over): It's down to the wire for holiday shoppers.
UNIDENTIFIED FEMALE SHOPPER: I usually try to have everything done before Thanksgiving. But this year I missed that target, and so I'm out last-minute shopping.
CHERNOFF: But for retailers, the holiday season is not nearly finished, not even close.
A growing number of shoppers are planning to spend heavily after Christmas, over 20 percent of their holiday budget, according to one survey. The quest is to get more for their money.
UNIDENTIFIED MALE: Post Christmas shopping now is more important than it's ever been in history of retail. The main factor here is gift cards.
CHERNOFF: Gift cards, and easy solution at the last-minute, are extending the shopping season. No longer perceived as the lazy man's gift, Americans are buying a record number of gift cards.
It's especially important for retailers since gift cards don't count as sales until their cashed in.
UNIDENTIFIED FEMALE: A significant percentage, up to 30 percent, spend twice the face value of the gift card, a tremendous opportunity for retailers to focus on.
CHERNOFF: It's a second chance for retailers, many of whom have had a challenging holiday season, discounters in particular.
Wal-Mart has said it expects sales in December may rise only 1 percent from the year ago period. Some of the money shoppers might have spent on gifts this year instead has gone to fill the gas tank, 20 percent more expensive than last year.
UNIDENTIFIED MALE: It could take as much as $10 out of each customer's pocket, per week for every car that they have. And that has an impact on what they are available -- what they have to available to spend for Christmas gifts.
CHERNOFF: JC Penney is doing better than most department stores, some of which have been struggling to meet modest sales targets of gains in the low, single digits.
But upscale stores like Nordstrom, Neiman Marcus and Sax, whose customers barely feel the pinch of higher gas prices, are filled with the cheer of ringing cash registers.
(END VIDEOTAPE)
CHERNOFF: Today is likely to be one of the busiest days of the holiday shopping season because of an American tradition, procrastination -- Bill?
HEMMER: With a capital "P" this time of year. Thanks, Alan. Have a great holiday.
Kelly?
WALLACE: Thanks, Bill.
Every time -- every Friday at this time, our "Gimme A Minute" crew weighs in on the week's big stories.
Joining us this morning, from Washington, Democratic consultant, Julian Epstein. Julian, good to see you.
JULIAN EPSTEIN, DEMOCRATIC CONSULTANT: Good morning, Kelly.
WALLACE: In New York, Republican consultant, Tara Setmayer. Tara, nice to see you as well.
TARA SETMAYER, REPUBLICAN CONSULTANT: Good morning.
WALLACE: And here inside our studios, not too far away, Andy Borowitz from borowitzreport.com. Andy, great to see you as well.
ANDY BOROWITZ, "BOROWITZREPORT.COM": Good morning.
WALLACE: Well, let's begin.
Defense Secretary Donald Rumsfeld making a surprise visit to meet with the U.S. troops in Iraq. Julian, will this trip quiet his critics? Won't it be difficult to say that he doesn't really care about those soldiers?
EPSTEIN: Probably not. He's becoming less and less our John Wayne and more and more our Baghdad Bob. This is a guy who's badly mismanaged the war. He has shortchanged the troops -- the prison scandal, the auto-pen scandal.
He has become kind of the goat of this war. He goes to Baghdad on -- or he goes to Iraq, Mosul, on bended knee. But I think the troops are not particularly in the holiday spirit when it comes to this defense secretary.
WALLACE: Tara, let's get you to respond.
SETMAYER: Well, Baghdad Bob is -- to compare our defense secretary to someone who was a -- the main, chief propagandist for a tyrant and a...
EPSTEIN: Tongue and cheek.
SETMAYER: ... terror mongerer is absurd.
But this trip shows that Secretary Rumsfeld is the capable leader. He is -- the troops rally around him. He knows what's going on. There have -- mistakes have been made, and we've acknowledged that.
But to say that there is all these scandals, auto-pengate and all, it's ridiculous.
At least I'm glad that our secretary doesn't -- didn't have to go through sensitivity training.
WALLACE: There goes the bell, but we've got to get Andy in there. Andy, go ahead.
BOROWITZ: I think his critics were encouraged that he went to Iraq but disappointed that he's coming back.
WALLACE: All right.
Topic number two, in Washington state, the third recount -- yes, that's right, the third. This one showing that the Democratic candidate, Christine Gregoire, is the winner, leading with a 130 vote victory.
So Tara, let me begin with you. Is this the end of it? Is the Democrat the winner here?
SETMAYER: Well, I'm sure the voters in Washington state would hope that this is the end of it, but it doesn't look like it will be.
Unfortunately, there have votes that have shown up that weren't there before. There are some questionable practices. But to say that the process isn't working, I think, is incorrect.
I think the process is working. However, we've become so sensitive to recounts, I'm surprised we're not counting down, you know, day 37, like we did in Florida or Ohio or what we were expecting.
So, hopefully, it will be resolved for the voters of Washington state.
WALLACE: Julian, is the process working? Should we have three recounts to determine the winner of a gubernatorial race in a state? EPSTEIN: Well, first of all, it's an embarrassment to, I would admit, to a Democrat, in a particularly blue state like Washington that it's so close.
Secondly, it's a great opportunity for us to sit -- the Democrats -- to sit back and look at the Republican hypocrisy. Republicans repeatedly attack the courts and repeatedly say courts shouldn't intervene in elections.
Now they're running to the courts when it's particularly convenient for them. I actually agree with the Republicans, it should be the courts and not the legislature that determine disputed ballots.
WALLACE: The second bell. This must be a "Gimme A Minute" record.
Andy, weigh in there.
BOROWITZ: I say give it to the Democrats. It's Christmas, and they have so little.
WALLACE: Oh, your heart is so warm.
All right. Topic number three, Martha, Martha, Martha. That's right, Martha Stewart in prison, but she posted on a statement on her Web site yesterday urging people to fight for prison reform, sentencing guidelines, reforming those guidelines so women are not incarcerated as long as they are.
Let me begin with you, Julian. What do you make of this?
EPSTEIN: Well, let's hope it's not the Stockholm syndrome. I don't think it is. This -- the idea of giving inmates education was part of the "Being Tough But Smart" policy of the Clinton years. But like prosperity has gone to hell in a hand basket under the Bush years, so have a lot of good ideas.
WALLACE: Well, Tara, could Martha Stewart come out of prison and be a new activist for this cause?
SETMAYER: I think that is ridiculous that Martha Stewart is still in the news. She's in prison. She lied. She deserves to be there. And it shows you that being privileged and having money allows you -- gives you a podium because I don't think the other women that are in prison get the same coverage or the same medium to give their viewpoint.
So that's my feeling on Martha Stewart.
WALLACE: Drum roll here for Andy on Martha Stewart.
BOROWITZ: You know, I was very moved by the letter. She said that the food is bad and the stock tips are terrible.
WALLACE: All right.
Last question here -- the most under-covered story of the week. Tara, let's begin with you.
SETMAYER: I believe that at this time of the year it's important for us, considering we have men and women who are in war overseas, that are fighting for democracy, that we acknowledge them.
And we can see that there are many there that believe strongly what they're doing. And there are successes in Iraq that we have yet to focus on.
Despite the shortcomings, there are a series of successes in Iraq that we need to focus on and let our men and women who are fighting for democracy know that the American people support them.
In 1920, there were 11 democracies. Now there's 119. And in January, it will be 120 thanks to our American soldiers.
WALLACE: We certainly heard some of that from the soldiers in Iraq today.
Julian, what's the story that didn't get attention this past week?
EPSTEIN: The Palestinian-Israeli conflict, the epicenter of our conflict with the Muslim world.
Tony Blair doing the work of trying to find a solution; George Bush continuing now what will be the fifth year of basically sitting on his hands.
WALLACE: And Andy?
BOROWITZ: Well, news from medicine, Kelly, if pain killers are banned but Viagra is not, women will say they have headaches more than ever before.
WALLACE: It's always an impossible act to follow. Andy Borowitz, thanks so much.
EPSTEIN: I'm glad he goes last.
WALLACE: Yes, exactly. Me, too.
Tara Setmayer and Julian Epstein, thanks so much to all of you and have a very happy and healthy holiday.
BOROWITZ: Happy holidays to you.
EPSTEIN: Happy holiday to you.
SETMAYER: Merry Christmas.
WALLACE: OK, Bill.
HEMMER: Thanks. Check of the weather now. Here's Chad Myers. Keeping you busy again, today, Chad. How are you? Good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Bill.
(WEATHER REPORT)
MYERS: Back to you.
HEMMER: Chad, thanks for that.
With all the FDA warnings on pain killers, lately, an ancient remedy may be the way to go for relief. We'll get to that.
Before the break here, also another tune from Rockapella on AMERICAN MORNING.
(ROCKAPELLA SINGING "SILVER BELLS")
(COMMERCIAL BREAK)
HEMMER: Welcome back, everybody, on Christmas Eve.
Sanjay is off today, but there's a new advisory about which relievers you should use. Our medical correspondent, Elizabeth Cohen, has more on this.
Good morning at the CNN Center.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Good morning, Bill.
Bill, it's been quite a week for people who use pain relievers. There's been news now about two popular pain killers and the possible dangers that they might pose. So the Food and Drug Administration has now decided to help clarify things a little bit, and they've issued some guidelines for people who use pain relievers.
Let's take a look at what they say about over-the-counter medications. What they say is:
Follow the label directions.
Don't use anything for longer than 10 days.
And, you need doctor's supervision if you're planning on using them for anything long-term.
And that last point, let's talk about that a little bit, the length of time that people take these drugs. In the studies that showed that Aleve and Celebrex, those two drugs, caused problems. People were taking these drugs day in, day out, month after month, in many cases, up to three years.
And that's where you saw the increased heart attack and stroke risk. And many people, of course, are only taking these drugs, let's say they sprained their ankle and so they're taking it for a week or two, or they're having other problems that are short-term.
That's a different situation than someone who, let's say, is using these drugs for months and months. And so, you need to talk to a doctor about your particular situation and what would be best for you.
HEMMER: Specifically, Bextra, Celebrex, what's the advice there?
COHEN: Right, Bextra and Celebrex are sort of sister drugs, if you will. They are both cox-2 inhibitors. And there have been some heart attack and stroke concerns about both of them.
So let's take a look at what the FDA says to do with the two drugs. They say, use only if you're at risk for gastrointestinal bleeding from other drugs. In other words, if other drugs are going to cause GI problems, than think about using Celebrex and Bextra.
Also, use if the other drugs provide no relief. And in addition, the FDA has said, use these drugs at the lowest possible dose.
HEMMER: Also, one more thing here, Elizabeth, if you want to get outside prescriptions, alternative remedies, what are you advising in that area?
COHEN: That's right, when people are in pain, they don't always have to take drugs. There are alternatives.
Now, the National Institutes of Health actually looks at alternative medicine. And they funded a study that looks at what works and what doesn't. So, let's take a look at what this -- what the NIH -funded studies have done.
They have found that acupuncture can be effective, for example, for knee osteoarthritis. This is a relatively new study that finds that it can be useful.
It can also be helpful for people who suffer nausea caused by surgical anesthesia or cancer, and also effective for dental pain experienced after surgery.
So again, an NIH-funded study that shows that acupuncture can be helpful for those three things.
HEMMER: Thanks, Elizabeth.
COHEN: Thanks.
HEMMER: Programming note, "House Call" over the weekend -- Sanjay is back -- "Life Beyond Limits."
You might have seen this earlier in the year. It's coming back this weekend, 8:30 a.m. on Saturday and again on Sunday. A little Sanjay on Christmas morning for you.
WALLACE: Spend your Christmas with Sanjay Gupta.
HEMMER: That's right.
WALLACE: Exactly. Well, coming up here on AMERICAN MORNING, Christmas, as you know, often a time for reflection. In a moment, Jack taking a special look at 2004, the year in pictures. Stay with us. Don't go away.
(COMMERCIAL BREAK)
HEMMER: Radio City Music Hall, we're right across the street from there, as a matter of fact.
The final "Cafferty File" for 2004.
WALLACE: Drum roll, please.
HEMMER: I've got to tell you. This is a huge moment, Jack.
WALLACE: It is big.
JACK CAFFERTY, CNN ANCHOR: A lot of people are grateful.
2004, a year dominated by the war in Iraq, but there were a lot of other stories that captured our interest along the way.
Here now, a look at the pictures that made the headlines.
(IMAGES OF 2004 VIDEOTAPE)
CAFFERTY: My producer, Jennifer Madreaux (ph), put that together.
WALLACE: Kudos to her.
HEMMER: Very nice.
CAFFERTY: It's good stuff.
WALLACE: It's really tough looking at all of those pictures, especially of the troops.
CAFFERTY: Yes, I hope next year is a better one.
WALLACE: Absolutely.
CAFFERTY: Yes.
HEMMER: Thank you, Jack.
WALLACE: Thanks.
HEMMER: Christmas Eve surprise for the U.S. troops in Iraq -- Donald Rumsfeld dropping in on the men and women serving in Iraq and his heartfelt message and emotion as well, in a moment.
First, greetings from overseas as we go to break.
UNIDENTIFIED MALE, 42ND INFANTRY DIVISION, U.S. ARMY: Merry Christmas and seasons greetings from Camp Yur (ph) in Kuwait, from the 42nd infantry division.
Hi, Kathy. Hi, Elizabeth. Hi, Rachel. I miss you a lot. Merry Christmas! Enjoy the holidays, and I'll see you soon.
UNIDENTIFIED MALE, U.S. SOLDIER: Of course I want to say a very happy holidays and a big I love you to my wife, Kelly, my three kids, Sam, Alexa and Delaney. I miss you guys with all of my heart.
I want you guys to be safe for the winter, and I'll be safe myself.
UNIDENTIFIED FEMALE, U.S. SOLDIER: My family, I love them dearly, and I just want to make sure that they know that I love them and miss them very much.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
DONALD RUMSFELD, SECRETARY OF DEFENSE: And you are on the side of freedom. And that's the side to be on.
So God bless each of you. God bless your families. And God bless our wonderful country.
And merry, Merry Christmas.
(END VIDEO CLIP)
HEMMER: It is a Christmas surprise from Don Rumsfeld, delivering a message to the troops in Iraq.
Stranded for Christmas, Indiana coming to a near standstill in parts. A massive snow storm making some highways impassable and impossible.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired December 24, 2004 - 08:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: In a few moments, the political side of this equation. What would help the secretary to smooth things over with his critics back in Washington?
Good topic for our "Gimme A Minute" crew. And we'll get to that.
KELLY WALLACE, CNN ANCHOR: Yes, indeed, Bill.
Also, was the holiday season a bust for stores? Some retailers are complaining, but maybe they just always complain. We will look at a little catch in how the numbers are crunched that could paint a different picture. That's coming up.
HEMMER: A little bit of that going around, huh, from time to time?
Daryn Kagan is here with us, too.
Hey, Daryn. Good morning to you. Looking at the headlines now.
DARYN KAGAN, CNN ANCHOR: Good morning. For the record, Bill, I did my part with the stores.
HEMMER: Did you?
KAGAN: Yes, I did.
HEMMER: Did you tear them up pretty good?
KAGAN: Yes. According to the American economy, I did. I must have get on the economic record there.
HEMMER: Daryn Kagan stands for GDP.
KAGAN: Absolutely. Thank you.
Also stands for headlines. Let's check in on some of those right now.
Are you trying to make it home for the holidays? Hundreds of travelers trying to make their way out of this holiday morning, buried in a major snowstorm in the Midwest. Take a look at these pictures.
Highways in Ohio are clogged with more than two feet of snow. Traffic is reported to be at a standstill. At least a dozen deaths are being blamed on the weather.
Chad will be along in just a bit to tell us more on what we can expect coming up today.
The woman accused of killing an expectant mother and stealing the baby from her womb is being moved to federal custody. Lisa Montgomery yesterday waived the right to a preliminary hearing, paving the way for a transfer from Kansas to Missouri.
That is where the alleged crime took place. Her initial court appearance before a federal judge is scheduled for Tuesday.
To health news, some four million older Americans could soon get Medicare help in kicking the habit. Medicare is announcing its expanding coverage to include counseling for recipients who smoke and have smoking related illnesses.
The new coverage is expected to take effect by the end of March.
And a Christmas care package is on the way to the international space station. A shortage of food and supplies has gotten so bad NASA has ordered the crew to cut back on meals.
But a Russian ship loaded with cargo blasted off today. It's due to arrive on Sunday. Now, a note to you space buffs out there, NASA says the space station could be visible from Earth throughout the holiday weekend.
Supposedly it looks, if you look up in the sky, it's supposed to look like a little white dot making its way across the dark sky.
But Bill?
HEMMER: Yes?
KAGAN: You know who else that could be?
HEMMER: Oh, that's right. Big red.
KAGAN: There you go.
HEMMER: Hey, what's going on in space? What, do you eat too much? How does that happen?
KAGAN: Well, I think they've had trouble, you know, getting things back and forth ever since the space shuttle.
HEMMER: Big diets, too, huh?
But, did you finish your shopping, my dear?
KAGAN: I am done shopping, but I'm not done packing.
HEMMER: Yes.
KAGAN: For the record. I have no time to be here today, but for you, I am here.
HEMMER: Thank you, Daryn. Talk to you later. Attention procrastinators, here on the same topic that Daryn and I were discussing here. Alan Chernoff is at a mall in Short Hills, New Jersey. One final day left.
Alan, good morning.
ALAN CHERNOFF, CNN CORRESPONDENT: Good morning to you Bill.
And some of the stores have actually been open since 07:00 this morning. We only have a handful of early birds, though. But in a few hours, you can be sure this place is going to be packed with shoppers hoping to meet that Christmas deadline.
For the retailers, though, this is not the end of the holiday season.
(BEGIN VIDEOTAPE)
CHERNOFF (voice-over): It's down to the wire for holiday shoppers.
UNIDENTIFIED FEMALE SHOPPER: I usually try to have everything done before Thanksgiving. But this year I missed that target, and so I'm out last-minute shopping.
CHERNOFF: But for retailers, the holiday season is not nearly finished, not even close.
A growing number of shoppers are planning to spend heavily after Christmas, over 20 percent of their holiday budget, according to one survey. The quest is to get more for their money.
UNIDENTIFIED MALE: Post Christmas shopping now is more important than it's ever been in history of retail. The main factor here is gift cards.
CHERNOFF: Gift cards, and easy solution at the last-minute, are extending the shopping season. No longer perceived as the lazy man's gift, Americans are buying a record number of gift cards.
It's especially important for retailers since gift cards don't count as sales until their cashed in.
UNIDENTIFIED FEMALE: A significant percentage, up to 30 percent, spend twice the face value of the gift card, a tremendous opportunity for retailers to focus on.
CHERNOFF: It's a second chance for retailers, many of whom have had a challenging holiday season, discounters in particular.
Wal-Mart has said it expects sales in December may rise only 1 percent from the year ago period. Some of the money shoppers might have spent on gifts this year instead has gone to fill the gas tank, 20 percent more expensive than last year.
UNIDENTIFIED MALE: It could take as much as $10 out of each customer's pocket, per week for every car that they have. And that has an impact on what they are available -- what they have to available to spend for Christmas gifts.
CHERNOFF: JC Penney is doing better than most department stores, some of which have been struggling to meet modest sales targets of gains in the low, single digits.
But upscale stores like Nordstrom, Neiman Marcus and Sax, whose customers barely feel the pinch of higher gas prices, are filled with the cheer of ringing cash registers.
(END VIDEOTAPE)
CHERNOFF: Today is likely to be one of the busiest days of the holiday shopping season because of an American tradition, procrastination -- Bill?
HEMMER: With a capital "P" this time of year. Thanks, Alan. Have a great holiday.
Kelly?
WALLACE: Thanks, Bill.
Every time -- every Friday at this time, our "Gimme A Minute" crew weighs in on the week's big stories.
Joining us this morning, from Washington, Democratic consultant, Julian Epstein. Julian, good to see you.
JULIAN EPSTEIN, DEMOCRATIC CONSULTANT: Good morning, Kelly.
WALLACE: In New York, Republican consultant, Tara Setmayer. Tara, nice to see you as well.
TARA SETMAYER, REPUBLICAN CONSULTANT: Good morning.
WALLACE: And here inside our studios, not too far away, Andy Borowitz from borowitzreport.com. Andy, great to see you as well.
ANDY BOROWITZ, "BOROWITZREPORT.COM": Good morning.
WALLACE: Well, let's begin.
Defense Secretary Donald Rumsfeld making a surprise visit to meet with the U.S. troops in Iraq. Julian, will this trip quiet his critics? Won't it be difficult to say that he doesn't really care about those soldiers?
EPSTEIN: Probably not. He's becoming less and less our John Wayne and more and more our Baghdad Bob. This is a guy who's badly mismanaged the war. He has shortchanged the troops -- the prison scandal, the auto-pen scandal.
He has become kind of the goat of this war. He goes to Baghdad on -- or he goes to Iraq, Mosul, on bended knee. But I think the troops are not particularly in the holiday spirit when it comes to this defense secretary.
WALLACE: Tara, let's get you to respond.
SETMAYER: Well, Baghdad Bob is -- to compare our defense secretary to someone who was a -- the main, chief propagandist for a tyrant and a...
EPSTEIN: Tongue and cheek.
SETMAYER: ... terror mongerer is absurd.
But this trip shows that Secretary Rumsfeld is the capable leader. He is -- the troops rally around him. He knows what's going on. There have -- mistakes have been made, and we've acknowledged that.
But to say that there is all these scandals, auto-pengate and all, it's ridiculous.
At least I'm glad that our secretary doesn't -- didn't have to go through sensitivity training.
WALLACE: There goes the bell, but we've got to get Andy in there. Andy, go ahead.
BOROWITZ: I think his critics were encouraged that he went to Iraq but disappointed that he's coming back.
WALLACE: All right.
Topic number two, in Washington state, the third recount -- yes, that's right, the third. This one showing that the Democratic candidate, Christine Gregoire, is the winner, leading with a 130 vote victory.
So Tara, let me begin with you. Is this the end of it? Is the Democrat the winner here?
SETMAYER: Well, I'm sure the voters in Washington state would hope that this is the end of it, but it doesn't look like it will be.
Unfortunately, there have votes that have shown up that weren't there before. There are some questionable practices. But to say that the process isn't working, I think, is incorrect.
I think the process is working. However, we've become so sensitive to recounts, I'm surprised we're not counting down, you know, day 37, like we did in Florida or Ohio or what we were expecting.
So, hopefully, it will be resolved for the voters of Washington state.
WALLACE: Julian, is the process working? Should we have three recounts to determine the winner of a gubernatorial race in a state? EPSTEIN: Well, first of all, it's an embarrassment to, I would admit, to a Democrat, in a particularly blue state like Washington that it's so close.
Secondly, it's a great opportunity for us to sit -- the Democrats -- to sit back and look at the Republican hypocrisy. Republicans repeatedly attack the courts and repeatedly say courts shouldn't intervene in elections.
Now they're running to the courts when it's particularly convenient for them. I actually agree with the Republicans, it should be the courts and not the legislature that determine disputed ballots.
WALLACE: The second bell. This must be a "Gimme A Minute" record.
Andy, weigh in there.
BOROWITZ: I say give it to the Democrats. It's Christmas, and they have so little.
WALLACE: Oh, your heart is so warm.
All right. Topic number three, Martha, Martha, Martha. That's right, Martha Stewart in prison, but she posted on a statement on her Web site yesterday urging people to fight for prison reform, sentencing guidelines, reforming those guidelines so women are not incarcerated as long as they are.
Let me begin with you, Julian. What do you make of this?
EPSTEIN: Well, let's hope it's not the Stockholm syndrome. I don't think it is. This -- the idea of giving inmates education was part of the "Being Tough But Smart" policy of the Clinton years. But like prosperity has gone to hell in a hand basket under the Bush years, so have a lot of good ideas.
WALLACE: Well, Tara, could Martha Stewart come out of prison and be a new activist for this cause?
SETMAYER: I think that is ridiculous that Martha Stewart is still in the news. She's in prison. She lied. She deserves to be there. And it shows you that being privileged and having money allows you -- gives you a podium because I don't think the other women that are in prison get the same coverage or the same medium to give their viewpoint.
So that's my feeling on Martha Stewart.
WALLACE: Drum roll here for Andy on Martha Stewart.
BOROWITZ: You know, I was very moved by the letter. She said that the food is bad and the stock tips are terrible.
WALLACE: All right.
Last question here -- the most under-covered story of the week. Tara, let's begin with you.
SETMAYER: I believe that at this time of the year it's important for us, considering we have men and women who are in war overseas, that are fighting for democracy, that we acknowledge them.
And we can see that there are many there that believe strongly what they're doing. And there are successes in Iraq that we have yet to focus on.
Despite the shortcomings, there are a series of successes in Iraq that we need to focus on and let our men and women who are fighting for democracy know that the American people support them.
In 1920, there were 11 democracies. Now there's 119. And in January, it will be 120 thanks to our American soldiers.
WALLACE: We certainly heard some of that from the soldiers in Iraq today.
Julian, what's the story that didn't get attention this past week?
EPSTEIN: The Palestinian-Israeli conflict, the epicenter of our conflict with the Muslim world.
Tony Blair doing the work of trying to find a solution; George Bush continuing now what will be the fifth year of basically sitting on his hands.
WALLACE: And Andy?
BOROWITZ: Well, news from medicine, Kelly, if pain killers are banned but Viagra is not, women will say they have headaches more than ever before.
WALLACE: It's always an impossible act to follow. Andy Borowitz, thanks so much.
EPSTEIN: I'm glad he goes last.
WALLACE: Yes, exactly. Me, too.
Tara Setmayer and Julian Epstein, thanks so much to all of you and have a very happy and healthy holiday.
BOROWITZ: Happy holidays to you.
EPSTEIN: Happy holiday to you.
SETMAYER: Merry Christmas.
WALLACE: OK, Bill.
HEMMER: Thanks. Check of the weather now. Here's Chad Myers. Keeping you busy again, today, Chad. How are you? Good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Bill.
(WEATHER REPORT)
MYERS: Back to you.
HEMMER: Chad, thanks for that.
With all the FDA warnings on pain killers, lately, an ancient remedy may be the way to go for relief. We'll get to that.
Before the break here, also another tune from Rockapella on AMERICAN MORNING.
(ROCKAPELLA SINGING "SILVER BELLS")
(COMMERCIAL BREAK)
HEMMER: Welcome back, everybody, on Christmas Eve.
Sanjay is off today, but there's a new advisory about which relievers you should use. Our medical correspondent, Elizabeth Cohen, has more on this.
Good morning at the CNN Center.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Good morning, Bill.
Bill, it's been quite a week for people who use pain relievers. There's been news now about two popular pain killers and the possible dangers that they might pose. So the Food and Drug Administration has now decided to help clarify things a little bit, and they've issued some guidelines for people who use pain relievers.
Let's take a look at what they say about over-the-counter medications. What they say is:
Follow the label directions.
Don't use anything for longer than 10 days.
And, you need doctor's supervision if you're planning on using them for anything long-term.
And that last point, let's talk about that a little bit, the length of time that people take these drugs. In the studies that showed that Aleve and Celebrex, those two drugs, caused problems. People were taking these drugs day in, day out, month after month, in many cases, up to three years.
And that's where you saw the increased heart attack and stroke risk. And many people, of course, are only taking these drugs, let's say they sprained their ankle and so they're taking it for a week or two, or they're having other problems that are short-term.
That's a different situation than someone who, let's say, is using these drugs for months and months. And so, you need to talk to a doctor about your particular situation and what would be best for you.
HEMMER: Specifically, Bextra, Celebrex, what's the advice there?
COHEN: Right, Bextra and Celebrex are sort of sister drugs, if you will. They are both cox-2 inhibitors. And there have been some heart attack and stroke concerns about both of them.
So let's take a look at what the FDA says to do with the two drugs. They say, use only if you're at risk for gastrointestinal bleeding from other drugs. In other words, if other drugs are going to cause GI problems, than think about using Celebrex and Bextra.
Also, use if the other drugs provide no relief. And in addition, the FDA has said, use these drugs at the lowest possible dose.
HEMMER: Also, one more thing here, Elizabeth, if you want to get outside prescriptions, alternative remedies, what are you advising in that area?
COHEN: That's right, when people are in pain, they don't always have to take drugs. There are alternatives.
Now, the National Institutes of Health actually looks at alternative medicine. And they funded a study that looks at what works and what doesn't. So, let's take a look at what this -- what the NIH -funded studies have done.
They have found that acupuncture can be effective, for example, for knee osteoarthritis. This is a relatively new study that finds that it can be useful.
It can also be helpful for people who suffer nausea caused by surgical anesthesia or cancer, and also effective for dental pain experienced after surgery.
So again, an NIH-funded study that shows that acupuncture can be helpful for those three things.
HEMMER: Thanks, Elizabeth.
COHEN: Thanks.
HEMMER: Programming note, "House Call" over the weekend -- Sanjay is back -- "Life Beyond Limits."
You might have seen this earlier in the year. It's coming back this weekend, 8:30 a.m. on Saturday and again on Sunday. A little Sanjay on Christmas morning for you.
WALLACE: Spend your Christmas with Sanjay Gupta.
HEMMER: That's right.
WALLACE: Exactly. Well, coming up here on AMERICAN MORNING, Christmas, as you know, often a time for reflection. In a moment, Jack taking a special look at 2004, the year in pictures. Stay with us. Don't go away.
(COMMERCIAL BREAK)
HEMMER: Radio City Music Hall, we're right across the street from there, as a matter of fact.
The final "Cafferty File" for 2004.
WALLACE: Drum roll, please.
HEMMER: I've got to tell you. This is a huge moment, Jack.
WALLACE: It is big.
JACK CAFFERTY, CNN ANCHOR: A lot of people are grateful.
2004, a year dominated by the war in Iraq, but there were a lot of other stories that captured our interest along the way.
Here now, a look at the pictures that made the headlines.
(IMAGES OF 2004 VIDEOTAPE)
CAFFERTY: My producer, Jennifer Madreaux (ph), put that together.
WALLACE: Kudos to her.
HEMMER: Very nice.
CAFFERTY: It's good stuff.
WALLACE: It's really tough looking at all of those pictures, especially of the troops.
CAFFERTY: Yes, I hope next year is a better one.
WALLACE: Absolutely.
CAFFERTY: Yes.
HEMMER: Thank you, Jack.
WALLACE: Thanks.
HEMMER: Christmas Eve surprise for the U.S. troops in Iraq -- Donald Rumsfeld dropping in on the men and women serving in Iraq and his heartfelt message and emotion as well, in a moment.
First, greetings from overseas as we go to break.
UNIDENTIFIED MALE, 42ND INFANTRY DIVISION, U.S. ARMY: Merry Christmas and seasons greetings from Camp Yur (ph) in Kuwait, from the 42nd infantry division.
Hi, Kathy. Hi, Elizabeth. Hi, Rachel. I miss you a lot. Merry Christmas! Enjoy the holidays, and I'll see you soon.
UNIDENTIFIED MALE, U.S. SOLDIER: Of course I want to say a very happy holidays and a big I love you to my wife, Kelly, my three kids, Sam, Alexa and Delaney. I miss you guys with all of my heart.
I want you guys to be safe for the winter, and I'll be safe myself.
UNIDENTIFIED FEMALE, U.S. SOLDIER: My family, I love them dearly, and I just want to make sure that they know that I love them and miss them very much.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
DONALD RUMSFELD, SECRETARY OF DEFENSE: And you are on the side of freedom. And that's the side to be on.
So God bless each of you. God bless your families. And God bless our wonderful country.
And merry, Merry Christmas.
(END VIDEO CLIP)
HEMMER: It is a Christmas surprise from Don Rumsfeld, delivering a message to the troops in Iraq.
Stranded for Christmas, Indiana coming to a near standstill in parts. A massive snow storm making some highways impassable and impossible.
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