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American Morning

Herman Cain Facing Past Allegations of Sexual Harassment; Some House Lawmakers Urging Super Committee to Cut More than Originally Asked; Will Sexual Harassment Allegations Sink Herman Cain?; Deadly Shootings on Bourbon Street; "Occupy" to Target Iowa Vote; Cain: "I Was Falsely Accused"; Trial of Michael Jackson's Doctor; The Global Gender Gap; Herman Cain Defends Sexual Harassment Allegations; $138.888 Kardashian Wedding Price per Day of Marriage; Bracelets Used for Smoking Pot; Study Says Happy People Live Longer

Aired November 01, 2011 - 06:59   ET

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


(BEGIN VIDEO CLIP)

HERMAN CAIN, (R) PRESIDENTIAL CANDIDATE: I am unaware of any sort of settlement.

I was aware that an agreement was reached.

CAROL COSTELLO, CNN ANCHOR: Herman Cain's changing story about claims he sexually harassed two women ahead. What he thinks triggered one of those complaints.

CHRISTINE ROMANS, CNN ANCHOR: His time is up. Its decision day in the trial of Michael Jackson's doctor, and this could be a game changer. Will Conrad Murray take the stand?

COSTELLO: A new global gender gap report is out. Which country ranks the best and why some say empowering women could be the key to kick starting the economy.

ROMANS: And don't worry, be happy, because there's good news for those of you with the glass half full approach to life, the key to living longer on this AMERICAN MORNING."

(END VIDEO CLIP)

COSTELLO: Good morning to you. It is Tuesday, November 1st. Welcome to AMERICAN MORNING.

ROMANS: All right. Up first, Herman Cain now saying I never sexually harassed anyone. The GOP frontrunner defending against a "Politico" report citing unnamed sources that claimed two women accused him of inappropriate behavior during his tenure at the National Restaurant Association in the 1990s. The candidate and campaign seemed to have trouble getting the response straight in the past couple of days. First Cain denied he knew about any settlement in the case.

(BEGIN VIDEO CLIP)

CAIN: I am unaware of any sort of settlement. I hope it wasn't for much because I didn't do anything. But the fact of the matter is I'm not aware of a settlement that came out of that accusation.

(END VIDEO CLIP)

ROMANS: But then just a few hours after that, he changed his story.

(BEGIN VIDEO CLIP)

CAIN: I was aware a settlement was reached. The word "settlement" versus the word "agreement," I'm not sure what they called it. I know there was some sort of agreement, but because it ended up being minimal, they didn't have to bring it to me. My general counsel and the head of human resources had the authority to resolve this thing. So it wasn't one of those things where it got above a certain authority level and I had to sign it. If I did, and I don't think I did, I don't even remember signing it, because it was minimal in terms of what the agreement was.

(END VIDEO CLIP)

ROMANS: All right, many Cain supporters rallied around their candidate, defending the GOP frontrunner and slamming the objectivity and sourcing of that report.

COSTELLO: And after acknowledging he was falsely accused of sexual harassment, Cain said he tried to think back on what could have been perceived as offensive. Here is what he said.

(BEGIN VIDEO CLIP)

CAIN: But here's the one incident that I recall as the day has gone on. She was in my office one day and I made a gesture saying -- and I was standing close to her, and I made a gesture, "You're the same height as my wife," and brought my hand, didn't touch her, up to my chin, and said "You're the same height as my wife because my wife comes up to my chin," my wife of 43 years.

And that was put in there as something that made her uncomfortable as part of the sexual harassment charge. That one little incident about the height thing was in my office, door open, plain view. My secretary was sitting right outside the office. But in reviewing her case, she couldn't find anybody to corroborate her story.

(END VIDEO CLIP)

COSTELLO: Cain also said he had an office on the same floor as the woman, but he insisted he never traveled with her when he would go on speaking engagements.

ROMANS: Campaign watchers wonder how Cain's team was caught so off guard by all this. Joe John is live for us in Washington. Good morning, Joe. Some are saying it looks like he is reaching back in his memory to figure out what happened. Others are saying, you know, look, this is not presidential and it looks like he's trying to cover his tracks. I mean, either way his team was caught flat footed.

JOE JOHNS, CNN SENIOR CORRESPONDENT: Absolutely. And it was not 24 hours ago he called it a witch-hunt, says there was internal investigation at the National Restaurant Association where he worked in the 1990s. That investigation he said determined there was no factual basis for what he called false allegations.

But in hindsight it took a long time for Cain himself to come out publicly and admit there had been a complaint, false or otherwise.

(BEGIN VIDEOTAPE)

JOHNS: It's never a good day for a presidential campaign when the candidate's name appears in the morning headlines in a story about alleged sexually inappropriate behavior. But from a campaign management standpoint, this may be a textbook example of how not to handle a crisis. "Politico," which broke the story, says there was plenty of warning. It first asked the campaign about this 10 days before this confrontational interview outside CBS on Sunday.

CAIN: I'm not going to -- I'm not going to comment on that.

JOHNS: And when the campaign's chief of staff was asked about "Politico's" allegation two women received settlements, he seemed confused too, saying he was not aware of any just hours before the candidate said publicly that he had been "falsely accused," Herman Cain's words, of sexual harassment.

CNN political analyst Rich Galen says it sounds like there was plenty of time for the campaign to prepare for the story to hit.

RICH GALEN, REPUBLICAN STRATEGIST: This is the kind of thing that you see with campaigns that aren't very skilled and very experienced. Every campaign will have a bad time. Every campaign is going to have to explain something they didn't think they were going to have to explain. But you practice it, try to get ready for it, and when it does happen, if it does happen, you just have to execute on the plan.

JOHNS: Here's how one reporter at "Politico" responded when we asked if the story came from another Republican presidential campaign.

JONATHAN MARTIN, SENIOR POLITICAL REPORTER, POLITICO.COM: Now, my colleagues and I have been reporting this story the last three weeks. In the course of that time we talked to dozens of current, former employees at the organization, current and former board members at the organization, and a lot of folks in Washington who are close to the organization. So this has been an extensively reported story, a thorough story. And we have a half-a-dozen sources telling us about various aspects of these claims against Mr. Cain.

(END VIDEOTAPE) JOHNS: The problem for the campaign is that when you have a story like this, people want to know more. The campaign strategy so far has been to try to turn it into a media story, accusing the media of drumming up false allegations in an attempt to discredit the candidate, which could work unless new details start trickling in to keep the story alive. Guys?

ROMANS: What does it say about the political savvy of the team around him?

JOHNS: Well, it certainly says they had some problems, some challenges. And it is very interesting it took so long for them to figure out how they're going to proceed on this. It looked like, as one Republican analyst told me, it looked to them like nobody wanted to go to the candidate and give him bad news and start planning for contingencies.

ROMANS: Because the news had been so good for them up to that point, they hadn't suffered any set back like this in terms of strategy and planning. Real interesting stuff. Thanks, Joe.

Also new this morning, it was a bloody Halloween night on Bourbon Street in New Orleans. Police say one person died and as many as seven were wounded in a shooting after midnight. A reporter at the scene says officers shut down Bourbon Street for hours. And not far from the scene, another person was injured by gunfire. Police say it appears to be an unrelated incident.

COSTELLO: It could be Friday before 1.7 homes and businesses in five northeastern states have their power restored. At least 13 people died because of the freak weekend storm that triggered emergency declarations in New York, New Jersey, Connecticut, and Massachusetts.

In the meantime, JetBlue is now apologizing this morning for leaving passengers on the tarmac seven hours in Hartford on Saturday. The airline releasing this video message on YouTube.

(BEGIN VIDEOTAPE)

ROB MARUSTER, COO, JETBLUE: We know we let some of you down over the course of this weekend, and for that, we are truly sorry. Going forward, we plan to fully participate with the Department of Transportation in cooperating with their investigation into events over the weekend, and we're also going to conduct internal evaluation so we can learn from this event.

(END VIDEO CLIP)

COSTELLO: JetBlue faces fines of $27,500 per person stranded on that plane. Add them all together, because there were 200 passengers aboard, that's about $5 million.

ROMANS: Those people get a nice apology but do not get their seven hours back. All right, heavy rain causing severe flooding in south Florida. Coastal areas in Miami-Dade and Broward Counties are under flash flood warnings, last night they were. Police have already rescued several stranded drivers, and in some neighborhoods people are warned to stay in their homes as the rain continues to fall.

COSTELLO: It could be a big day in the trial of Michael Jackson's doctor. Conrad Murray has until the start of court this morning to decide if he will testify in his own defense. As of yesterday, Murray said he was undecided. If he chooses to stay silent, then testimony in the trial is likely to end today. Closing arguments could begin as early as Thursday.

ROMANS: A new movement bubbling right now. Occupy Wall Street protesters threatening to shut down the Iowa caucus. Organizers say they plan to gather in Iowa one week before the vote is held on January 3rd. They're calling it the first in the nation caucus occupation. They plan to occupy the campaign offices of all of the candidates. That includes President Obama offices in that state.

COSTELLO: Secretary of State Hillary Clinton cancelling a scheduled trip to Britain and Turkey because according to the State Department her mother is ill. No other details of her mother's illness were disclosed. Dorothy Rodham made several campaign appearances with her daughter during Clinton's run for president in 2008.

ROMANS: And President Obama gets a clean bill of health. According to the recent physical, the 50-year-old commander in chief is said to be fit for duty and in excellent health. The report also says the president is tobacco free. This is the first official confirmation of what the president's spokesman has been saying for much of the past year, that the president has quit smoking.

COSTELLO: Still to come this morning, a new report is out measuring the global gender gap. Which countries fair the best? We'll talk to one of the authors straight ahead.

ROMANS: And pressure mounts as we get closer to the debt panel deadline, and now a bipartisan House group urging the super committee to go big. So what does the group want? We'll find out.

And if you're happy and you know it, you'll certainly want to clap your hands after you hear what researchers discovered about happy people.

You're watching American. It's 10 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: It's 12 minutes past the hour. Welcome back to American.

Solving America's debt crisis, yes, right. That is the job of the high profile super committee, six Republicans and six Democrats. They have just 23 days to come up with a way to reduce the deficit by $1.5 trillion. Yes, that's a big task. And this morning the committee is urged to go big by a group of bipartisan house members.

Joining me now is Democratic Congressman Jim Cooper of Tennessee and Republican Congressman Reid Ribble from Wisconsin. Welcome, gentlemen.

REP. JIM COOPER, (D) TENNESSEE: Good morning, Carol.

REP. REID RIBBLE, (R) WISCONSIN: Good morning, Carol.

COSTELLO: Good morning. Thank you for being here. It is nice to see a Republican and Democrat together and talking. So you have written a letter, you have about 100 members signed up in support of this letter. So tell us what the 100 lawmakers have agreed to, and give us an idea how many Democrats and how many Republicans you've signed up, Representative Cooper.

COOPER: We're asking the super committee to be brave, to do the right thing for America. If they do that, we've got their backs. Basically we want everything on the table.

COSTELLO: You say "be brave." So Representative Ribble, what does that mean, be brave, have courage?

RIBBLE: I think for us, we want the super committee to feel empowered to go much larger than $1.5 trillion. If we look at $1.5 trillion in the course of a decade, that's only reducing spending about 2.7 percent. If they could go to $4 trillion, now we are at 9.5 percent. That's going to take some courage, and we're encouraging them to do so and to lead with courage.

COSTELLO: Congressman Reid, the biggest hurdles have been entitlement reform and taxes. Is everyone who signed up ready to compromise on these issues? I mean, are Republicans in favor of some tax increases? Are Democrats in favor of reforms to entitlements?

RIBBLE: I'll take it on the Republican side, Carol. I think what we're looking for is to encourage the committee to look at three things. We want whatever they come out with to be fair, to have sound policies, and to recognize the economic realities of what we're facing today. Tax rates really don't correlate much to what actual revenue is, but if we would remove some of the subsidies and tax giveaways, we would actually have the money to reduce rates and spur economic growth which would increase revenue.

COSTELLO: Would that satisfy things on this super committee, do you think? I mean, the Republicans especially?

RIBBLE: I think that that's a place to start. And that's the whole purpose of the letter, to show them that there is some bipartisan support for them to look at this in a much bigger, long term approach.

COSTELLO: So, you know, you're sending this letter, and there are 100 lawmakers that have signed on, but they don't really have, you know, the super committee is acting on its own. You guys are sort of outside the mix. So how much clout will this letter really have? COOPER: I think you'll see it has a great influence because the super committee wants to know that whatever they recommend and it's coming out on November 23rd that it will be able to pass Congress. And we have to vote on it by December 23rd, by Christmas. And 100 signatories on the letter means that it has a lot of momentum. And I think that will encourage the super committee to do the right thing.

COSTELLO: Congressman Ribble, I want to ask you about the approval rating of Congress because -

RIBBLE: Yes.

COSTELLO: -- there was a new "New York Times" poll. It's down to nine percent. That means like only your relatives and friends pretty much support you guys. I mean, what does that feel like?

RIBBLE: Well, I mean, as a new freshman member, I expected some of this to happen, but I'll tell you, the American people have a right to be a little cynical. I came into this job cynical back in January and there hasn't been a lot that I've seen today to make me less cynical.

However, here's a case where Congressman Cooper and I have become friends. We're a little bit more pragmatic. We want to see the future better for our children and grandchildren. And, you know, we all have to lay down our swords, stop poking each other in the eye and try to get something done here. It's time that we start to walk the walk and talk the talk. I mean, that's just the reality of it.

COSTELLO: Well, that sounds like such a simple thing to do. It's like sit down, talk it out, and compromise. So Congressman Cooper, why can't Congress do that?

COOPER: Well, you're right, Carol, we should be able to do it, it's for the good of the country. We should be able to come together and compromise. Democrats often times want to completely protect all entitlement programs forever, Republicans don't want to even hear the "T" word about taxes.

But there's got to be a solution somewhere there in the middle to reduce deficits and debt so that we have a stronger financial future for our country. We can do this.

COSTELLO: Congressman Ribble, we hear that all the time. I mean, we hear it from lawmakers like you that, yes, compromise is possible and, yes, we should be doing these things, but we don't see it in action.

RIBBLE: Well, we see it sometimes in action, and we see it with this letter that's being written. I think one of the - the mysteries and maybe the wisdom of the super committee is that you're doing something in a bicameral way with both House and Senate. You're doing some of it bipartisan.

If you're going to address the big drivers of our debt, which are defense spending, Medicare, Social Security, the best way to do it is if we together step into that - that pond and say we're going to do it together and what that will do is it will force the political parties and their committees to - to not be able to use it as a weapon against each other.

We have to take those - those weapons away, and we have to be able to talk like grownups. Sometimes I feel like I'm in a classroom of six-year-olds, I've got to tell you.

COSTELLO: I think many Americans would probably agree with you.

RIBBLE: I think they would.

COSTELLO: I hope your letter makes a difference. I'm sure many Americans are because that super committee doesn't have much time to come up with whatever plan they're going to come up with.

Representative Cooper and Ribble, thank you so much for joining us this morning. We appreciate it.

RIBBLE: Thank you, Carol.

COOPER: Thank you, Carol.

ROMANS: And if you cut $1.2 trillion or $1.5 trillion out of your deficits, you're still running up the national debt. That doesn't even begin to start eating away at the national debt. So that's where the whole go big strategy is coming from that even what they have to do which is politically dangerous and difficult still isn't enough. More has to be done down the road.

All right. Speaking of down the road, we are shoveling down the road here in the - in the northeast, a lot of people don't have power still. Rob Marciano, it's 19 minutes after the hour. Good morning.

ROB MARCIANO, AMS METEOROLOGIST: Good morning, guys.

You know, the numbers are coming down slowly, but there's so many people without power, there's just not enough manpower to get those power lines back up. And you've got to clear the roadways and clear the lines.

Here is some fresh video coming in to us from Connecticut where - that's probably one of the hardest - the hardest-hit states. Even at this hour, 690,000 people remain without power. And you bet that everyone in the communities, especially upstate are having a hard time just clearing what needs to be cleared to get those power crews in there to get the job done. And it'll probably be at least until end of the week before everybody is up and running.

Twenty inches of snow at Bradley International Airport. And another nor'easter developing right now. Here it is. Doesn't look very impressive. It's not going to head out to sea. Just a couple of light showers across the immediate shoreline. That is it. So don't worry about this.

Dry weather, fairly mild weather. Although in the areas that still have snow on the ground, temperatures are right around the freezing mark. The snow is actually refrigerating the ground. But will continue the melting process today. Temperatures will get well up above the freezing mark into the 50s. But we actually average in New York City close to 60 this time of year, so 56 is still a little below average. We'll see a little bit mild - more mild air coming in over the next couple days.

Meanwhile, there's another system dropping down into the Colorado Rockies and in the mountains of Wyoming and through the high plains of Western Nebraska. Winter storm warnings are posted for this area. Could see several inches of snow and a couple of feet potentially at the higher elevations.

If you are traveling today, it shouldn't be too much of a bear. Kind of an in between day. Some low clouds and some wind resulting in a little bit of delay in some - delays across the northeast. But other than that, quiet. And in Southern California, for those of you waking up super early or going to super late, Santa Ana winds should be cranking up tonight and tomorrow it will be sunny, but dry and obviously breezy.

Guys, back up to you in New York.

ROMANS: All right. Thank you, Rob.

MARCIANO: You bet.

COSTELLO: Thank you, Rob.

Now is your chance to "Talk Back" on one of the big stories of the day. The question for you this morning, will sexual harassment accusations sink Herman Cain?

You've heard his ever-shifting story by now. It started out with a story in Politico. Two women accused Cain of sexual impropriety back in the '90s, back when Cain was chief honcho for the National Restaurant Association.

At first, Cain's camp said the Politico story was false, a witch hunt. Then Cain denied there had been a cash settlement, until he didn't.

(BEGIN VIDEO CLIP)

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: I am unaware of any sort of settlement.

I was aware that an agreement was reached.

(END VIDEO CLIP)

COSTELLO: Yes. By the time Cain was on FOX News, he had an epiphany. Not only did he remember there was a cash settlement, he remembered the exact gesture that made one of his accusers uncomfortable.

(BEGIN VIDEO CLIP)

CAIN: She was in my office one day and I made a gesture saying, oh, and I was standing close to her and I made a gesture, you are the same height as my wife. And brought my hand - didn't touch her - up to my chin and said you're the same height as my wife because my wife comes up to my chin.

(END VIDEO CLIP)

COSTELLO: None of this means Cain is guilty of anything, but his ever shifting story matters to those who represent victims of sexual harassment. If Cain is elected president, he will be head of the largest workplace in the nation.

As attorney and women's advocate Gloria Allred told me, "The president must be the gold standard of employers. Didn't we learn anything from the Clinton era?"

So the "Talk Back" question for you this morning - will sexual harassment accusations sink Herman Cain? Facebook.com/AmericanMorning, Facebook.com/AmericanMorning. I'll read your comments later this hour.

ROMANS: All right. Still ahead, is nothing sacred? A favorite lunchtime staple is about to get a lot more expensive.

COSTELLO: Not PB and J.

ROMANS: Oh, yes, and I'll tell you why.

COSTELLO: That's not all. The pool, the gym, the rollaway bed, turns out there's a fee for those items in some hotels.

It's 23 minutes past the hour.

(COMMERCIAL BREAK)

ROMANS: Welcome back. "Minding Your Business" this morning.

U.S. stock futures are down after a bad day yesterday to what was a pretty good month. Stocks falling sharply yesterday. The Dow was off 276 points, that's about two percent. That sell-off fueled by concerns about Europe.

And also, former New Jersey Governor John Corzine's company MF Global filing for bankruptcy after millions of dollars in bets on Euro went wrong.

Boeing will soon be setting up shop in an old space shuttle hangar at NASA Kennedy Space Center. Boeing is going to use that space to build and test a new capsule that's designed to ferry astronauts and cargo to the International Space Station. That deal is expected to create more than a hundred jobs.

The list of major banks retreating now from those wildly unpopular debit card fees is growing. SunTrust and Regions Bank announced that they're going to stop charging customers $5 a month for debit card purchases. That leaves Bank of America the only major bank still planning to charge the new fee. But even BofA is testing some new ways that more people will be able to avoid the fee, like direct deposit of their paychecks.

Now, hotels are piling on a bunch of new fees for services that used to be free, like using the pool, maybe getting a rollaway bed or a crib. According to a study out of New York University, U.S. hotels are expected to collect a record $1.8 billion in fees, that's up 80 percent from a decade ago. Hey, it worked for the airlines.

Whether you prefer creamy or chunky, one thing stays the same. The cost of peanut butter is going up. Manufacturers are raising prices of the lunch staple by as much as 40 percent. The reason - a poor peanut harvest this year. So your peanut butter prices are going up.

Don't forget, for the very latest news about your money, check out the all-new CNNMoney.com.

AMERICAN MORNING will be right back after a quick break.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you. Welcome back. It is 31 minutes past the hour. New developments to tell you about now from a violent Halloween night on Bourbon Street in New Orleans.

Two people were killed and 15 others wounded during four separate shootings that's according to CNN affiliate, WWL. CNN is working right now to confirm those numbers.

ROMANS: A 1.7 million people still without power in five states in the northeast. And they're being told it could be until Friday before their lights and heat come back on.

The death toll now stands at 13 from this weekend's freak snowstorm. Governors in Connecticut, Massachusetts, New York, and New Jersey are all seeking federal disaster relief.

COSTELLO: From bankers to the ballot, "Occupy Wall Street" protesters are threatening to shut down the Iowa caucus. Organizers say they plan to gather in Iowa one week before the vote is held on January 3rd. They plan to occupy campaign offices of all candidates that include President Obama's offices in Iowa.

ROMANS: Herman Cain now saying he never sexually harassed anyone after a report that at least two women accused him back in the 1990s. Last night on Fox News, he alson talked about a gesture that may have triggered one of those claims.

(BEGIN VIDEO CLIP)

CAIN: Here is the one incident that I recall as the day has gone on. She was in my office one day, and I made a gesture saying, and I was standing close to her, and I made a gesture, you're the same height as my wife.

And brought my hand, didn't touch her, up to my chin, and said you're the same height as my wife because my wife comes up to my chin, my wife of 43 years. And that was put in there as something that made her uncomfortable as part of the sexual harassment charge.

(END VIDEO CLIP)

ROMANS: Cain also now acknowledging there was a payout involved, big change from his denials earlier yesterday.

COSTELLO: The trial of Michael Jackson's doctor is wrapping up. This morning, a crucial decision, will Dr. Conrad Murray take the stand? Here is Ted Rowlands with a look at what we can expect.

TED ROWLANDS, CNN NATIONAL CORRESPONDENT: Carol and Christine, in a few hours, we'll find out definitively one way or another if Dr. Conrad Murray will take the stand.

At the end of court yesterday, the judge after the jury left asked Murray flat out are you going to take the stand or aren't you, and Murray said he hasn't made up his mind yet. The judge said well, you better hurry up. You have until tomorrow morning before court.

So at 8:30 Pacific Time, Murray is expected to tell the judge one way or another if he takes the stand. Of course, that would be a bombshell if he decides he does want to get up in front of the jury.

On Monday, there were some fireworks in court between David Walgren, the lead prosecutor in this case, and Dr. Paul White, the defense expert and star witness.

Walgren tried to dismantle the defense theory about how Michael Jackson died. He also attacked White in the way that Dr. Conrad Murray acted after he found Jackson unresponsive, specifically he asked White about the fact that Murray waited 20 minutes to call 911.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There's no justification for what Conrad Murray did in failing to immediately call 911, is there?

DR. PAUL WHITE, ANESTHESIOLOGIST: As I said earlier, I think he should have called 911 sooner. I do not, however, think it would have made any difference in the outcome of this case.

(END VIDEO CLIP)

ROWLANDS: Now, White is still on the stand, so he'll be back on the stand to finish up his testimony when court resumes later this morning. Then the defense has one more witness. This is assuming Murray doesn't testify.

This is a late add if you will. So that will extend the defense case in chief by a few hours, although they told the judge after court they do expect to finish up their case at some point tomorrow.

Again, that is assuming that Dr. Conrad Murray does not take the stand -- Carol, Christine.

COSTELLO: Thank you, Ted. Be sure to check out our sister network, HLN, your place for expert coverage of the case against Dr. Conrad Murray.

ROMANS: All right, still ahead, where in the world is it best to be a woman? We're going to give you a hint. The United States is not on the top of the list.

New info out this morning on the global gender gap including where do we rank and where we're falling short. It's 35 minutes after the hour.

(COMMERCIAL BREAK)

ROMANS: Good morning, New York City. Mostly cloudy, 47 this morning, sunny and 56 later so some of that snow can melt. So the work crews can get out there in the northeast and start fixing all of those power lines.

All right, the global gender gap, that's inequality of men and women with political, educational, and economic opportunities. No country has yet to achieve true gender equality.

Many say empowering women is the key to unlocking potential and stimulating economies, getting the economy to grow again by empowering women.

The World Economic Forum is releasing its annual global gender gap report today. We're joined by the forum's senior director and the report's author, Saadia Zahidi. Thank you for joining us today.

SAADIA ZAHIDI, SENIOR DIRECTOR, WORLD ECONOMIC FORUM: Thank you for having me.

ROMANS: Four measures that you bring in the index, economic participation, education, political empowerment and health and survival. So factoring all of these things in, where is it the best place to be a woman today?

ZAHIDI: Today, if we look at the rankings as a whole, it's really the northern countries that come out on top. These are the countries that have closed the gaps on health. They've closed the gaps on education a long time ago.

They've got the returns on that investment by insuring that women are able to participate in the economy and they're part of decision making structures.

However, they have not yet closed the gender gap. So the highest ranking country in the world, Iceland, has closed about 85 percent of its gender gap.

ROMANS: Wow, so that means -- what does mean, 85 percent means that a little bit more and there could be true gender equality there?

ZAHIDI: Essentially what's lacking is still the parity in terms of leadership positions in both politics and in the economy.

ROMANS: We saw the U.S. ranked 17 on that list. When you look at the trouble spot here for the U.S., it may well be political empowerment.

Women make up 17 percent of the House and Senate. There's never been a female president. What if there was more female representation in Washington, D.C.?

Perhaps maybe there wouldn't be all this gridlock and such a low approval rating. I don't know. Maybe there'd be more opportunity for women there. U.S. would have better prospects.

ZAHIDI: Well, there are two things that I think we can reasonably say based on previous research. One is a very logical one, the equity argument, right? So women make up 50 percent of the population. They should be represented at the very top of decision making structures.

The second is some interesting evidence that's come out of India that's looked at the quote as that we're put in place at the local levels of government. And what they found is women make different choices.

They make different spending decisions when they're responsible for budgets. So they actually make choices that are better for longer term community development versus men. So yes, it would be a different set of choices.

ROMANS: Interesting because you mention India, but when you look at those the BRICs, Brazil, Russia, India, China, those countries. They actually rank farther down the list than the U.S. at 17.

So they have a lot of work to do as well. When you look at countries, I mean, what's the number one thing you can say this is the way to get more representation for women in business, in politics, to close that gender gap?

ZAHIDI: So the countries that are the best poised to essentially make that leap are the countries where women already makeup not even equal numbers, but the majority of those that are in, for example, in higher education.

In primary, secondary education, women in a lot of countries in the world are actually starting to be the majority and so these countries are best poised to make that next leap. They have to remove the barriers to women's economic participation.

So we take two extreme examples, Japan, for example. Close the gap on education a long time ago, very highly skilled women, and yet the labor force participation rate is about half that of men. So the next stage of development would essentially be to remove the barriers to women's economic participation. Make it possible for women to be able to combine work and family essentially.

ROMANS: When you look at the U.S. last week, I was reporting the headline that "Fortune" record number of women running Fortune 500 companies. Some 18, I think when I started my reporting career, it was a record number at 11.

You know, I mean, it's taken so long just to get the 18 and when you think about only 18 out of Fortune 500 companies, that's essentially what is the issue here. That any kind of progress is very incremental, isn't it?

ZAHIDI: You know, when we look at the entire 114 countries that have been covered in the last six years, there's actually good news, 85 percent of these countries have made progress. A little progress, a lot of progress, depends on the country.

Fifteen percent are either staying the same. They're plateauing out or they're moving backwards. So by and large, the world is making progress and I think that's fairly positive news now after six years of producing the index.

ROMANS: All right, so the gender gap, Iceland, Norway, Finland, those are the top three. U.S. ranked 17. Some of the fast growing economies are much lower. It's very nice to meet you. Thanks for coming by.

ZAHIDI: Thank you.

ROMANS: I'll see you again soon -- Carol.

All right, Carol, I've got a "Romans' Numeral for you, my dear. It's 138,888. It's coming up. Here's the hint. It is the wedding that was worth every penny of it or was it, every minute of every penny of it. You know which one I'm talking about. It is 43 minutes after the hour.

(COMMERCIAL BREAK)

COSTELLO: It is 45 minutes past the hour. Here are the morning headlines.

Two people were killed, 15 others wounded during four separate shootings last night on Bourbon Street in New Orleans. That's according to WWL. CNN is working right now to confirm those numbers.

Herman Cain now saying he never sexually harassed anyone after a report that at least two women accused him of that back in the '90s. Cain also now acknowledging there was a payout after denying he never knew about any such agreement earlier.

A big day in the trial of Michael Jackson's doctor. Conrad Murray has until this start of court this morning to decide if he will testify in his own defense. Closing arguments and jury deliberations could begin as early as Thursday.

Occupy Wall Street protesters threaten to shut down the Iowa caucus. Organizers say they plan to gather in Iowa one week before the vote is held on January 3rd. They're calling it the first-in-the nation caucus occupation.

Right now, markets are on track to extend losses from yesterday. The Dow, NASDAQ, S&P 500 futures all trading lower because of, what else, concerns about Europe's bailout deal.

1.7 million people without power in five northeastern states. They're being told they may have to wait until Friday before the lights and heat come back on. Almost half of all those outages are in Connecticut where dozens of shelters have been set up. Last weekend's freak snowstorm left at least 13 people dead.

Flash flood warnings in south Florida. Heavy rain causing big problems in Miami, Dade and Broward Counties. Police already rescued several stranded drivers and, in some neighborhoods, homeowners are told to stay inside.

And a special honor for the crew of the space shuttle "Atlantis." They get to meet the president in the Oval Office this afternoon. "Atlantis," of course, was the last mission for NASA's shuttle program.

And that's the news you need to start your day. AMERICAN MORNING, back after a break.

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ROMANS: Nice clear morning in Atlanta. About 40 degrees now. But, Carol, it will be sunny and 68 later today.

COSTELLO: There you go.

ROMANS: Atlanta has the greatest weather.

COSTELLO: I know, except when it doesn't.

(LAUGHTER)

ROMANS: When it is hot and steamy.

Welcome back. This morning's "Romans' Numeral," a number in the news today, the number $138,888. That is the price tag if you prorate Kim Kardashian's wedding costs --

(LAUGHTER)

ROMANS: -- over the length of her entire 72-day marriage.

(LAUGHTER)

ROMANS: 138 grand a day it was that -- 72 days! Can you believe that?

COSTELLO: Well, I'm just surprised everybody thought that was a real wedding. (LAUGHTER)

COSTELLO: Like, with real love shared between the two. Everybody is like, oh, she took us for a ride. Well, duh!

ROMANS: Oh, gosh. Well, Kim Kardashian did release a statement about her divorce from the basketball player, Kris Humphries, saying it was not an easy decision, Carol --

(CROSSTALK)

ROMANS: -- after 72 days, that prorates to 138 grand a day to cover the cost of the wedding, and that sometimes, quote, "things don't work out as planned."

I will also point out that the cost of that wedding was covered by other people.

(LAUGHTER)

COSTELLO: Didn't they make something like $17 million off the wedding?

ROMANS: Yes. I mean -- yes, everything was sponsored and --

(CROSSTALK)

COSTELLO: I read the real reason was he wanted to move back to Minnesota and live a quiet life and she said, oh, no way, I'm a career girl.

(LAUGHTER)

COSTELLO: That's just like ridiculous.

(LAUGHTER)

COSTELLO: Anyway, moving along, school officials now warning parents about new bracelets that kids are wearing that are a lot more than just a fashion craze. When you take the bracelets off, it actually turns into a pipe. A pipe used to smoke pot.

(BEGIN VIDEO CLIP)

UNIDENTIFIED GIRL: Looks like a bracelet maybe or a necklace.

UNIDENTIFIED FEMALE: But, it -- it --

UNIDENTIFIED GIRL: Or --

UNIDENTIFIED FEMALE: But it must have something to do with drugs.

UNIDENTIFIED GIRL: Yes.

UNIDENTIFIED MALE: There's a cap that you undo and the entire thing --

UNIDENTIFIED GIRL: Becomes a pipe.

UNIDENTIFIED GIRL: If I saw that on one of my friends, I would not think twice about it. I would be like, oh, a new bracelet.

UNIDENTIFIED GIRL: Honestly, it's smart.

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED GIRL: I mean, they would have never figured it out. It's really smart.

(END VIDEO CLIP)

COSTELLO: Whoa. And these things have been popping up all over central Florida. Schools are now suspending students just for having them. And they're expelling kids if they've been used to store or take any drugs.

ROMANS: All right, in "A.M. House Call," and here's a nice reason to smile this morning. A new study shows people who report feeling happy don't just live better, they may actually live longer. He, who laughs last laughs, longest, and best.

Senior medical correspondent, Elizabeth Cohen, joins us more from Atlanta with more.

Are you feeling happy this morning, Elizabeth?

(LAUGHTER)

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: I am feeling happy because I've learned how useful it is to feel happy.

ROMANS: It is. And you can gleefully enjoy that your mean boss will not live as long as you.

(LAUGHTER)

COHEN: That's right. That's an excellent point. I hadn't thought about that.

ROMANS: I don't know if revenge makes you feel -- last longer.

(LAUGHTER)

COHEN: Maybe because I love my boss. So I don't -- so I didn't think about that. But, yes, that is an excellent point. This is such an interesting study that they did in England. They looked at 4,000 people, ages 52 to 79, and they measured their happiness. What they found is that if they were happy, they were 35 percent less likely to die during the five-year course of the study. So, there you go. There seems to be a relationship between happiness and long life.

COSTELLO: How happy exactly do you need to be to live longer? (LAUGHTER)

COHEN: You need to be ecstatic!

(LAUGHTER)

No, I'm kidding. You don't need to be that happy. These people weren't like crazy happy. They were just people who were happy and satisfied with life.

COSTELLO: OK, happy and satisfied. That's all it took.

ROMANS: And how did they determine if they were happy?

COHEN: What they did is they asked the people to rate their happiness four times a day. When they woke up in the morning and then when they went to bed at night and two times in between, and they asked them to rate how happy they were feeling.

COSTELLO: It's just -- I understand why there would be a connection. You know, the power of positive thinking and all that. But I can't understand how they would actually link the two. So they studied a number of people over a certain number of years and they've answered those questions you were talking about. But then -- really?

COHEN: Really. And there seems to be a biological mechanism here. One of the mechanisms might be that when you're happier you have fewer stress hormones circulating throughout your body. And stress hormones are bad for your cardio vascular system as well as other parts of your body, so --

COSTELLO: OK. So what if I am a negative person? Which I admit that I am, OK?

COHEN: I don't think so.

COSTELLO: At what point do I need to become really, really happy --

(LAUGHTER)

-- to prolong my life?

COHEN: I want to make a distinction here between someone who is a critical thinker, such as yourself, Carol Costello --

(CROSSTALK)

COSTELLO: -- I kind of like that.

COHEN: -- between someone who wants to make sure that they do a good job and they're aware that they want to perform well. You know, that's not an unhappy person. That's a person who wants to do their job well. That's something different. So, we're talking about unhappiness versus happiness. And to answer your question, it's never too late to be happy. You could -- doctors say that you can get positive medical outcomes by becoming happier later in life. And, in fact, some people that doctors, at your annual checkup, ought to acquire as to your level of happiness because that's an important part of your health.

COSTELLO: Well, OK. I'll work on being happier more often.

(LAUGHTER)

ROMANS: Thanks, Elizabeth.

COHEN: Thank you.

COSTELLO: Well, I exercise and eat right so I might as well add that into the mix too.

ROMANS: You do smile when you're --

(CROSSTALK)

COSTELLO: Better than a multivitamin.

ROMANS: At mile five, just remember to smile.

COSTELLO: Yippee!

(LAUGHTER)

We ask you to "Talk Back" this morning. The question this morning, will sexual harassment accusations sink Herman Cain?

Linda says, "Herman Cain will sink Herman Cain. This soft-shoe back-pedaling he's doing in regard to the subject is laughable. The idea that anyone would consider him as presidential material, even before this matter, shows how delusional people are in this questionable political climate."

This from Cynthia, "Someone compared Herman Cain to Clinton. Well in Clinton's case, the issue was consensual, and sexual harassment is never consensual. Thus, there is no comparison. I think Cain is sabotaging his own campaign. You can tell, whoever is coaching him for media appearances, are not doing their job because he keeps contradicting himself. Why can't he just come clean and move on"?

This from John, "I could care less what happened 20 years ago. I care about now."

This from Cela, "What will sink Mr. Cain in light of these accusations is not that he keeps flip-flopping or even that there was a settlement. it is that he thinks the incidence of a woman accusing him of sexual harassment is too meaningless to even recall."

Keep your comments coming. Facebook.com/Americanmorning. Facebook.com/Americanmorning. We'll read more later on in our show.

ROMANS: We had a lot of thoughtful comments.

Top stories when we turn. Plus, it's Governor Rick Perry like you've never seen him before. The unusual speech in New Hampshire that has now gone viral.

COSTELLO: It is unusual.

And JetBlue respond after their flight to New Jersey leaves travelers stranded on the tarmac for seven hours. Well, we're going to let you hear JetBlue's apology for yourself.

It's five minutes until the top of the hour.

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