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In his second weekly video address, Barack Obama announced a broad economic recovery plan that would create 2.5 million jobs by 2011. Those jobs would come from “rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels, fuel-efficient cars and the alternative energy technology.” Obama said that details of the plan are still being worked out, but he hopes to implement it shortly after taking office on January 20. He also signaled a willingness to listen to Republican ideas for the stimulus plan, but added, "what is not negotiable is the need for immediate action."
The Democratic primary may have been a no-holds-barred slugfest, but Barack Obama and Hillary Clinton have been growing ever closer since he won the primary and then the election. The New York Times has a behind the scenes look at how the onetime foes became confidants, including details about personal phone calls he made to her and a friendly plane ride to their first campaign event together after the primary. Insiders tell the Times that the discussions the two political powerhouses have had about the secretary of state position show that have a "working chemistry." But while Obama and Clinton are no longer the rivals that Richard Nixon and Secretary of State Henry Kissinger were, they're also not the best buds that George W. Bush and Condoleezza Rice are. They're somewhere in the middle. “I think that Obama and Clinton could form a perfect partnership based on respect for each other’s view of the world,” said Walter Isaacson, the author of The Wise Men, a history of America’s postwar foreign policy establishment.
General Motors Chairman and CEO Rick Wagoner told lawmakers last week that bankruptcy is not an option for the ailing automaker, but according to the Wall Street Journal, members of GM’s board of directors disagree. Though the board has strongly supported Wagoner in the past and agrees that government funding is the best way to rescue the company, it remains unwilling to dismiss the possibility of filing for bankruptcy. In early November Wagoner said, "We're convinced the consequences of a bankruptcy would be dire and extend far beyond General Motors and therefore we are going to take every action we possibly can to avoid it." GM shares closed at $3.06, up 18 cents from the previous day but down from about $42 a year ago.
As expected, Barack Obama has named campaign communications director Robert Gibbs to be his White House press secretary. The President-elect also named Ellen Moran, executive director of EMILY’s List, to the role of communications director and Dan Pfeiffer, also a communications director on his campaign, to the position deputy director of communications. Moran has a long political resume while Pfeiffer came from the office of former Senate Majority Leader Tom Daschle. “This dedicated and impressive group of public servants includes longtime advisors and a talented new addition to our team, and together we will work to serve our country and meet the challenges of this defining moment in history,” Obama said in a statement.
A U.S. missile strike has killed British-born Rashid Rauf, the suspected mastermind of a 2006 al Qaeda plot to blow up 10 trans-Atlantic jets with liquid explosives, according to reports in Pakistan. An unmanned drone killed Rauf and at least four other al Qaeda militants in the North Waziristan region of Pakistan. The missile strike was one of at least 20 similar and controversial American assaults on al Qaeda targets in that region. The Pakistani government, which maintains that the drone attacks are fanning the flames of anti-Americanism and Islamic extremism, would prefer to deal with terrorists on its own. But the American military has become increasingly impatient with Pakistan's efforts to curb terrorism within its borders. Despite complaints, Pakistani President Asif Ali Zardari has said that he will not cut off anti-terror cooperation with America. He hopes Barack Obama will focus more on equipping Pakistani troops so they can root out terrorists within the country.
After a huge $35.7 million opening night for blood-sucking teen drama Twilight, one thing is definitively clear—vampires are the new zombies. Twilight’s big Friday is thanks in part to the popularity of midnight screenings of the much-hyped movie on Friday. Production company Summit Entertainment, which already has a sequel in the works, expects the adaptation of Stephanie Meyer's novel to bring in $74.3 million by the end of the weekend. Much of Twilight's success can be attributed to a rabid teenage girl fan base that got a little rambunctious during the film's press tour, mobbing its stars and requesting bites from leading man and rising star Robert Pattinson. Quantum of Solace, the latest entry into the James Bond cannon, was number two Friday, with an $8.6 million showing, bringing its eight-day earnings to $91.4 million.
Now that the Obamas have chosen a school for Sasha and Malia, the family can turn to the equally important task of choosing a church. According to the Washington Post, there's already a "spirited competition among Washington churches to land the most sought-after Christians in town." Some pastors are pitching their congregation's diversity and church's proximity to the White House, while others are touting their records with community service. So why all the excitement? Churches are eager to land the first African-American president and fill the role of the Obama's disgraced former advisor, Reverend Jeremiah Wright. But a decision won't be made until January, giving churches at least another six weeks to make their pitches. "I can't recall another situation where there is this kind of interest before the president even takes office in terms of where he is going to go to church, and churches campaigning for his attendance," said Gary Scott Smith, author of Faith and the Presidency.
Over at Slate, Daniel Gross has a quick rundown on Timothy Geithner, Obama's reported choice for Treasury Secretary. Geithner had never worked as a big banker, CEO of a Fortune 500 company, been a distinguished economist, or held elective office. But he, like Obama, has worked as a community organizer for years. “Of course,” Gross writes, “the community Geithner has been trying to organize—with limited success—is the international and domestic financial community.” Geithner has been a key behind-the-scenes player in the financial crisis, so his familiarity ensures a smooth transition. Unlike Larry Summers, his main rival for the post, he is establishment “without exhibiting self-importance and arrogance.” Unlike Henry Paulson, he relies as much on statistics as he does telephone calls to Wall Street CEOs.
Want an idea of what the recession diet is going to look like? Campbell Soup Company’s recent successes offer an indication. Campbell’s has led the S&P Packaged Foods Index over the past three months, and its 1.5 percent gain this year outperforms the S&P 500 by 44 points. An analyst for Bloomberg gives Campbell’s shares a 12-month target price of $44.50, 23 percent higher than today’s $36.27. One analyst predicts 2009 will be “the year of condensed soup, driven by the backdrop of severe economic pressure on the consumer.” Campbell’s, which is 129 years old, has survived 28 recessions.
After 27 hours of negotiations between the Screen Actors Guild and the Alliance of Motion Picture & Television Producers, it’s increasingly looking like SAG is heading toward a strike. Shortly before 1 a.m. Saturday morning negotiations for a new contract broke off, leading SAG to “launch a full-scale education campaign in support of a strike authorization referendum.” No time frame was given for when a vote would be taken but a strike authorization does not necessarily mean the union will instantly go on strike. Rather, SAG intends to use the authorization as a bargaining tool to give it more leverage in the negotiations. The union needs 75% of its members to vote in favor of strike for authorization. Much like the debate that led to last year’s writer’s strike, the conflict between SAG and the AMPTP revolves around payments for distribution through new media. "We remain committed to avoiding a strike but now more than ever we cannot allow our employers to experiment with our careers," SAG said.
With all the trouble in Somalia, it’s a good time to remember that the United States’ first international crisis, at the dawn of the republic, was with the Barbary Pirates, who were devastating Mediterranean trade. In today’s Wall Street Journal, historian Michael B. Oren writes that the solution to Somalia “can be gleaned from America's experience with Barbary.” In 1790, without its own navy, the United States government was paying an astounding 20 percent of its federal income to the Barbary pirates. By 1801, it had built six frigates, and a trek by U.S. marines across 500 miles of Libyan desert to Tripoli in 1805 resulted in the pirates’ capitulation. Today, “any attempt to bargain with [the pirates] and to pay the modern equivalent of tribute will beget more piracy. Now, as then, the only effective response to piracy is a coercive one.” Luckily for the United States, Europe, which would not help in Barbary, is willing to do so today.
Speculation over Obama’s Cabinet may still be raging, but the second most popular guessing game in Washington is over. The Obama family has chosen to send Malia and Sasha to Sidwell Friends School, the private Quaker school in northwest Washington D.C. Chelsea Clinton attended Sidwell, and Joe Biden has grandchildren currently at the school. Washington Mayor Adrian Fenty lobbied hard to have the girls attend a public school, but according to Michelle Obama’s spokeswoman, “In the end, the Obamas selected the school that was the best fit for what their daughters need right now.” Sidwell was established in 1883 and its tuition runs up to $29,442 a year.
In September, as Lehman Brothers was exploding, Damien Hirst auctioned off $200 million of his art. That might seem to indicate immunity from the recession, but possibly not: The artist is laying off 17 of the 22 workers he employs to make his drug cabinet series, and three more who make his butterfly paintings. A spokesperson for Hirst said the layoffs were due to the fact that the artist is discontinuing those series, but a source tells the Telegraph that "It was unexpected, especially after Hirst made a killing from the Sotherby's sale." Earlier this month, Hirst admitted that his work was overpriced and looked forward to selling it at cheaper rates.
How close is funnyman Al Franken to the Senate? According to his campaign, his deficit against Norm Coleman is down to less than 100 votes. The state has so far recounted 51.1 percent of the votes, and Franken’s team is including in that calculation some 800 contested ballots that it believes will easily be resolved. A lawyer for Franken adds that “there are more Democratic areas with votes left to be counted than Republican.”
A dispatch from The New York Times-Wall Street Journal war: According to Bloomberg, the recession is likely to increase competition for advertising revenue between the two papers, and the Journal is setting its sights on the Times’ clients. The Journal’s expansion of general news coverage and a new lifestyle magazine have attracted desirable luxury advertisers to the paper. Saks Inc. recently began advertising in the Journal, after buying in the Times since 1924. Dolce & Gabbana’s and Louis Vuitton’s parent companies also started advertising in the Journal. The Times, meanwhile, is expanding financial news coverage and Bill Keller can name more than 25 business stories where the Times beat the Journal this year. As of September, the Journal’s circulation had risen 2.4 percent to 1.4 million from the previous year, while the Times’ fell 5.5 percent to 858,985.
How’s Mayor Bloomberg’s third-term election bid looking? Not too hot according to a new poll from Marist University. Bloomberg led likely rival Anthony Weiner 51 to 37, but Marist pollster Lee Miringoff said “51 percent is about as slim as a majority as you can have at this point.” Weiner and other potential rival, Bill Thompson, have been railing against Bloomberg’s revoking of New York City’s term limits. Bloomberg’s approval rating also fell to a three-year low of 59 percent.
When did Citigroup’s financial woes start? The New York Times points to its failed acquisition of Wachovia earlier this year, when Wells Fargo swooped in with a higher offer. “That collapse began a steady decline in Citigroup shares that snowballed this week.” According to one analyst, Citi now has two options: “a federally forced merger or nationalization.” The bank is struggling to raise $20 billion in capital to offset losses, despite receiving $25 billion from the federal government in October. Citi’s problems have existed since its creation 10 years ago, but were easily overlooked in the era of prosperity. “They never spent the time, the money or the energy to integrate all of the businesses,” says another analyst. “It’s not a functional family. And because it’s not a functional family, it’s extraordinarily expensive to operate all the separate businesses, and you don’t get any of the advantages.”
Curiosity may have killed the cat, but it only resulted in paid leave for some Verizon Wireless employees. In a press release last night, Verizon CEO Lowell McAdam announced that employees had "accessed and viewed" Barack Obama's personal cellphone account, which was inactive. The accessed device was a regular flip-phone, so no emails or other data was involved. According to the release, those "employees with legitimate business needs for access will be returned to their positions," while others will join the ranks of the recently unemployed. "We apologize to President-Elect Obama and will work to keep the trust our customers place in us every day," McAdam said in a statement.
Been wondering what those new boxes popping up on Google’s results page are? In an effort to make their search engine more interactive, Google has launched WikiSearch, and, so far, the reactions are mixed. Googlers can now read and write comments on search results, and customize results by reordering and deleting links. Michael Arrington at TechCrunch comments that Google search was "one of the few things on the Internet that isn't [broken]" but finds the new layout "a mess of arrows and troll comments." Google will track their users’ preferences in order to improve the product.
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