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WEEKEND EARLY START

Anonymous Declares War On U.S. GOVT.; Arctic Blast Grips Much of U.S.; Wall Street Takes A Bit Out of Apple; The Week That Was; USADA Gives Armstrong Until February 6th to Testify; Azarenka Wins Australian Open; Burt Reynolds Hospitalized

Aired January 26, 2013 - 06:00   ET

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


RANDI KAYE, CNN ANCHOR: From CNN world headquarters in Atlanta, this is EARLY START WEEKEND.

Flights canceled. Hundreds of car wrecks. And all the result of an arctic blast along the East Coast. Are we close to a thaw or maybe more of the same?

VICTOR BLACKWELL, CNN ANCHOR: The stock in freefall. Analysts shaking their heads after a worldwide love affair. Is it the Apple apocalypse?

KAYE: Let the countdown begin. No, not to the Super Bowl, to those ads. We'll give you a peek at a new one and talk to its creator.

It is Saturday, January 26th. Good morning, everyone. I'm Randi Kaye.

BLACKWELL: I'm Victor Blackwell. Thanks for starting your day with us.

KAYE: We start this morning with a developing story. The online hacking group Anonymous has declared war on the U.S. government after hacking the Federal Sentencing Commission's website overnight. Here's what the site looks like right now. Take a look. Over the last hour, it's been going from being totally shut down to showing this strange video right here, along with a long letter of demands written in black and green.

BLACKWELL: Yes, the video and the letter addressed to "citizens of the world" threatens, quote, "chaos" if the government does not give them what they want. Nick Valencia joins us now.

Nick, a really bizarre story that's developing. What is this group, Anonymous, demanding? And, really, can they execute this? What's the real threat?

NICK VALENCIA, CNN CORRESPONDENT: Well, it's important to note, Victor, that this group has a lot of credibility online and a lot of clout. There's not just someone sitting behind their computer eating Cheetos, you know, trying to send this message to the U.S. government. They have a very real message here and they're threatening to do more. They've already hacked into the ussc.gov website earlier this morning. They said that they have fissile material for multiple warheads. They're not going into much detail about what these warheads are or, in fact, what they can do. But we've seen earlier this morning that they did hack this website and they're threatening to release more sensitive files and information.

KAYE: And you mentioned these warheads, Nick. I mean they're named for the Supreme Court justices. I mean do we know if they have information about the Supreme Court justices or they're just -- they're just naming them after them?

VALENCIA: Yes, we looked into that earlier this morning, Randi, and we just don't know. And even, in fact, this message that they released, it doesn't go into any detail about what these files contain, but they are named after U.S. Supreme Court justices. Scalia.warhead1. kennedy.warhead1 is another one of them.

And they said they hacked the ussc.gov website. It was a very symbolic move in nature. What they're mad about and what they're angry about is overzealous prosecution. You'd mentioned that the co-founder of Reddit, Swartz, who committed suicide just two weeks ago, he was facing 35 years in jail and $1 million in fines. And they're just saying that the U.S. government is going overboard and being overzealous in the charges that they're giving toward these hackers.

KAYE: So they must have thought that they were too hard on him?

VALENCIA: Yes, that they were too hard on him and they've been too hard on others as well.

BLACKWELL: And you mentioned this group does have a certain level of credibility.

VALENCIA: Sure.

BLACKWELL: Ussc.gov today. Not the first time it's hacked a government website.

VALENCIA: No, not the first time its hacked a government website. Not the first time we've heard from them either. They've taken on cartels in Mexico. They got involved recently in an Ohio rape case after they felt that the people -- the suspects in that rape case weren't prosecuted and they didn't face justice early enough. So this is not the first time we've heard from them. Probably not the last time we're going to hear from them. We're going to be following this story as it develops throughout the morning. I'm sure we'll get more information.

KAYE: Yes. All right, Nick, we'll let you get back to digging on that.

VALENCIA: Thank you.

KAYE: We'll check in with you later. Thank you.

BLACKWELL: Well, now to Lance Armstrong and the deadline from the U.S. Anti-Doping Agency. They say he's got less than two weeks to testify if he wants to ever overturn that lifetime ban. But Armstrong's attorney says that that's not going to happen. He cites scheduling conflicts as one reason. The other is that Armstrong and his attorney doesn't believe the U.S. agency has any real power. So they want to talk to international sports authorities instead. Remember, it was a week ago that Armstrong admitted to using performance-enhancing drugs. But he also said that he didn't really think he was cheating at the time. Here's how the head of the U.S. Anti-Doping Agency reacted to CBS' Scott Pelley.

(BEGIN VIDEO CLIP)

TRAVIS TYGART, CEO, U.S. ANTI-DOPING AGENCY: It's amazing. I mean, Scott, you could go to almost any kindergarten in this country or frankly around the world and find kids playing tag or four square and ask them what cheating is. And every one of them will tell you it's breaking the rules of the game. No real athlete has to look up the definition of cheating. And it's offensive to clean athletes who are out there working hard to play by the rules.

(END VIDEO CLIP)

BLACKWELL: But Tygart says the USADA, U.S. Anti-Doping Agency, will go ahead with their investigation whether Armstrong cooperates or not.

KAYE: To politics now. President Obama calls it one of the worst kept secrets in Washington. At the White House yesterday, he announced that one of his closest aides will be his next chief of staff. Denis McDonough, here on the president's right, succeeds Jack Lew, who is now the Treasury secretary nominee. Mr. Obama says nobody outworks McDonough.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: He's been one of my closest and most trusted advisers on my presidential campaign, on my transition team. He has been an indispensable member of my national security team as well. Denis has played a key role in every major national security decision of my presidency.

(END VIDEO CLIP)

KAYE: McDonough will be Mr. Obama's fifth chief of staff as the White House tackles the budget, immigration and gun control.

Vice President Joe Biden says the country cannot remain silent about gun violence after last month's Connecticut school shooting. He headlined a roundtable discussion at Virginia Commonwealth University yesterday. The vice president said the 2007 Virginia Tech massacre shows how important background checks are to keep guns out of the wrong hands.

BLACKWELL: President Obama and Secretary of State Hillary Clinton are parting ways. Clinton is leaving her job at the State Department next week. They sat down together for an interview with "60 Minutes." And we'll have some of that for you in about 30 minutes.

KAYE: For much of the country this morning, it is cold. The National Weather Service is warning of bitterly cold conditions this weekend across much of the Northeast, the Mid-Atlantic, and the Midwest. Several inches of snow fell yesterday on parts of the Ohio Valley, then pushed through to the East Coast. The system brought an arctic blast that forecasters say could be deadly. Warming centers are open now in Pennsylvania, New York, and New Jersey. Some Superstorm Sandy victims there still, believe it or not, don't have basic utilities to keep warm. And the Tennessee Valley and the Carolinas are also on ice. Freezing rain is blamed for more than 200 wrecks around Charlotte and the airport there had to cancel 100 flights.

But here's how you can tell it's really, really cold. A polar bear plunge. That's where people take a swim in that frigid water for fun, as they say. Well, one was called off in Asbury Park, New Jersey, because organizers said the single digit wind chill made it just too dangerous. That's when you know it's bad.

BLACKWELL: Cold water is the point, though, right?

KAYE: Yes, but cold -- there's cold, then there's cold.

BLACKWELL: There's cold and then there's whoo.

KAYE: That's frigid.

BLACKWELL: Yes.

KAYE: That is frigid.

BLACKWELL: All right.

KAYE: All right, so the question, of course, is, is there any warm-up in sight anywhere in the U.S.?

ALEXANDRA STEELE, AMS METEOROLOGIST: Hi.

KAYE: Hey, Alexandra.

STEELE: All right, too cold for a polar bear plunge?

KAYE: Yes.

STEELE: All right, that's off the charts, right?

KAYE: Yes.

STEELE: Hi, everyone. Good morning.

Well, you are freezing from Maine to Macon, Georgia, that's for sure. But, dot, dot, dot, there's some good news ahead. Temperatures really on the aggregate for the country warming up, especially the East Coast. But just give you a little taste how cold it is.

Right now in Boston, you're waking up, walking out the door to 3. It's 5 in New York. Washington having in between about an inch and an inch and a half of snow. We forecast it yesterday and it happened. Nineteen there. New York had a little bit as well.

Chicago right now feeling like zero. And they finally -- they had not had an inch of snow. There was more snow in Texas than Chicago has had thus far this season. An inch finally fell in Chicago, breaking the record. They had not seen an inch of snow since last February 24th. So finally that came.

Current temperatures in Richmond, Virginia, it's only 19. It's 33 in Asheville, North Carolina.

So here's a perspective. Are we warming up? Yes. So New York, five-day forecast, on average, you should be at 40. Today, only 34. By Tuesday, you're at 48. You're in the 50s on Wednesday. Good news. There's a little caveat here, though. Sunday could see -- Sunday into Monday, a little ice and snow, perhaps. We'll talk about that.

Washington, D.C., you should be at 45. Hey, you get to the 60s on Tuesday, 64. So we're going to pick up about 20 degrees. Chicago too, almost 60. On Tuesday, 57. You should be at 35. So temperatures on the whole are warming up.

There is another ice maker. And even for Chicago, maybe not even a snowmaker, guys, but some ice. Sunday night into Monday. And I'll kind of timeline that out for you and tell you why. It will be ice instead of snow coming up in just a bit.

KAYE: OK, Alexandra, nice to see you this morning. Thank you.

BLACKWELL: All right.

STEELE: You too. Sure.

BLACKWELL: Some good news for your 401(k) this morning. The S&P 500 closed the week above 1,500 for the first time since 2007. Better than expected corporate earnings are helping to push the index to pre- crisis highs.

KAYE: A stunning fall from grace. No, not Lance. Is the cult of Mac over? Well, some investors are saying, yes, it is.

Also, LeBron James tackles a fan at center court. We'll tell you what got the NBA's premier player so darn excited.

(COMMERCIAL BREAK)

KAYE: Welcome back, everyone, to EARLY START WEEKEND.

It has been a disappointing week for Apple. It's no longer the most valuable company in the world with its stock prices now falling.

BLACKWELL: Alison Kosik has more from the New York Stock Exchange.

ALISON KOSIK, CNN CORRESPONDENT: Hi, Randi and Victor.

Apple's fall back to earth accelerated this week. Record profits weren't enough to stop the slide in the price of Apple's stock. Shares have tumbled more than 35 percent since hitting an all-time high of $705 a share in late September. The stock closed at $440 a share on Friday.

Investors continue to worry about Apple's profit margins. Consumers are buying Apple's lower price offerings, the iPhone 4 instead of the 5, the iPad mini instead of the regular one, and that puts pressure on the bottom line.

Competition, that's also become a factor. The tablet and smartphone market, it's become crowded with quality alternatives. And some analysts are beginning to doubt whether Apple, under CEO Tim Cook, can come out with other revolutionary category-killing devices like those of the Steve Jobs era.

On the other hand, the company still sold 488 million iPhones last quarter. And with $137 billion in cash on its balance sheet, the company is in extremely good health. So this might be just a chance to scoop up the shares at a bargain price.

Randi, Victor.

KAYE: Alison, thank you very much.

Probably a lot of investors think that it is quite the bargain right now. They might buy some at a discount.

But let's put this whole Apple story in perspective for you this morning. Say you lost $52 from your wallet. I mean that would be a bummer, right?

BLACKWELL: That's a really bad day.

KAYE: But what if you lost $52 billion? That is really a bad day.

BLACKWELL: Yes. Apple is learning firsthand what it's like. That's how much money the company lost on Friday. That's just one day of trading.

KAYE: Yes. And the company's stock prices has dropped nearly 20 percent since January. And if you go all the way back to September, it's dropped 37 percent.

BLACKWELL: Look at this. OK. To put this into perspective, $52 billion, they lost that on Friday. You see these other companies here? $40 billion for Target. $40 billion for Starbucks. $48 billion for Nike. That's their entire market share.

KAYE: So they've lost all of that.

BLACKWELL: They've lost more than those companies individually.

KAYE: Wow. Now, Apple's star, of course, may have dimmed a little bit on Wall Street, but it was very bright at the Sundance Film Festival Friday night. It seems that, you know, it's the big movie coming out about Apple and Steve Jobs.

BLACKWELL: Yes.

KAYE: But it seems that the cult of Mac is still very much alive thanks to the premiere of this film about the late Steve Jobs, the man himself played by Ashton Kutcher.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE, ACTOR, "JOBS": Nobody wants to buy it (ph).

ASHTON KUTCHER, ACTOR, "JOBS": This is freedom to create and to do and to build as artists, as individuals.

UNIDENTIFIED MALE: But, look, you're overreacting. Even if you were developing this for freaks like us, and I doubt you are, nobody wants to buy a computer. Nobody.

KUTCHER: How does somebody know what they want if they've never even seen it?

(END VIDEO CLIP)

KAYE: I think it looks pretty good. I mean it --

BLACKWELL: It does look good.

KAYE: People were so fascinated with Steve Jobs and his whole life and, of course, they're fascinated with Ashton Kutcher.

BLACKWELL: Yes.

KAYE: I think he's going to get some pretty good attention.

BLACKWELL: You know what? I've read on Gizmodo, Steve Wozniak, the other character in the scene, he wrote in and said, first, that never happened. It'd be good that this is, you know, an entertaining movie --

KAYE: You're already debunking the movie. That --

BLACKWELL: No, no, no, he is. I'm just reporting. But here's the thing. He says, first of all, we never dressed like professionals. I was never in a tie because we were kids and, you know, we saw the pictures from that era, they weren't.

KAYE: Yes.

BLACKWELL: But he says that it's really entertaining thus far, and he says that some of the things, though, so far in this scene, just aren't accurate.

KAYE: All right. Well, I guess we'll have to watch it and figure it out. We'll compare. We'll compare notes.

BLACKWELL: It's entertaining, you know? It's a movie.

All right. Well, some say Beyonce faked it, Manti Te'o says he's the real deal, and Republicans pick a fight with Hillary Clinton. In case you missed it, here's a look back at the week that was.

(BEGIN VIDEOTAPE)

HILLARY CLINTON, SECRETARY OF STATE: I take responsibility.

SEN. RAND PAUL (R), KENTUCKY: I think it's inexcusable. WOLF BLITZER, ANCHOR, CNN'S "THE SITUATION ROOM": The dramatic, new confession --

UNIDENTIFIED FEMALE: Manti Te'o speaking out to ABC's Katie Couric.

MANTI TE'O, NOTRE DAME FOOTBALL PLAYER: What I went through was real.

UNIDENTIFIED MALE: The controversy rages on.

UNIDENTIFIED MALE: Did she lip sync or not?

UNIDENTIFIED MALE: An ongoing scandal.

UNIDENTIFIED FEMALE: Did you sing the thing live or not?

ANDERSON COOPER, CNN: I just don't care.

BLACKWELL (voice-over): Did she fake it? Did he lie about it? And what did she know, when? Republicans wanted an answer to that question this week when they hammered Hillary Clinton on the attack in Benghazi.

UNIDENTIFIED MALE: You let the consulate become a death trap.

PAUL: Had I been president at the time, I would have relieved you of your post.

UNIDENTIFIED MALE: We were misled that there were supposedly protests and then something sprang out of that, an assault sprang out of that.

BLACKWELL: Hammer, meet Hillary.

CLINTON: The fact is, we had four dead Americans.

UNIDENTIFIED MALE: I understand.

CLINTON: Was it because of a protest or was it because of guys out for a walk one night who decided they'd go kill some Americans?

WHOOPI GOLDBERG, CO-HOST, "THE VIEW": I was waiting for her to go, say what? What did you say?

BLACKWELL: It wasn't all sparks, though. There were some tears.

CLINTON: The sisters and brothers, the sons and daughters --

BLACKWELL: And some lighter moments.

Huh, I bet Beyonce wasn't laughing this week after that big flap over the lip flap.

BEYONCE, MUSICIAN (singing): O say can you see --

BLACKWELL: Actually, no, we can't. Is this thing on?

BEYONCE: The bombs bursting in air --

STEPHEN COLBERT, "THE COLBERT REPORT": Was there a second singer on the grassy knolls?

BLACKWELL: And, who cares, right, Anderson.

COOPER: So what. It's not like she pulled a Milli Vanilli.

BLACKWELL: Touche.

Prince Harry certainly was not faking it as captain Wales. The Apache pilot is back home after a 20-week deployment in Afghanistan. And, ladies, he's looking.

PRINCE HARRY: If you find the right person and everything feels right, then it takes time, especially for myself and my brother.

BLACKWELL: Speaking of love, there's a lot of it at the Sundance Film Festival this week. Maybe a little too much.

UNIDENTIFIED MALE: Are you comfortable (ph) with physical contact with like other dudes?

BLACKWELL: Yes, sex, the center of several of this year's feature films. Some critics call them filthy films.

UNIDENTIFIED MALE: I think that's ridiculous.

UNIDENTIFIED FEMALE: No, it's not on the verge of pornography at all. You know it's love making. These are two people that are in love.

UNIDENTIFIED MALE: Yes.

BLACKWELL: These two people definitely are not in love.

UNIDENTIFIED FEMALE: I've never met Manti Te'o in my entire life.

BLACKWELL: In his first TV interview, the star linebacker says, OK, sure, his online girlfriend was not real, but his emotions were.

TE'O: What I went through was real. You know, the feelings, the pain, the sorrow, that was all real.

KATIE COURIC, HOST, "KATIE": Well, either you're the most naive person on the planet or this is the saddest story, I think, ever written.

BLACKWELL: We couldn't agree more. And that's the week that was.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLACKWELL: Hey, something special in Miami. It happened last night. Check this out. This is a fan. One arm hits the hook from half court. Then, look at this, he's tackled by LeBron James. This guy's name is Michael Drysch. He's now $75,000 richer. The money came from the LeBron James Family Foundation. Drysch was chosen by the foundation. Look at it again. Chosen by the foundation. They flew him in from his home in Illinois. Now Drysch says he's been practicing this shot for two days, but had only made it once. Clearly saved the best for last. A $75,000 shot.

Also, millions of us now are getting ready to watch the Baltimore Ravens -- Baltimore being the U.S.'s charm city, one of the greatest cities in the country, my hometown -- they're going to take on the 49'ers of San Francisco in the Super Bowl. But, of course, the other big draw of the night are the commercials. And you might remember Doritos slingshot baby from last year. Watch.

(VIDEO CLIP)

BLACKWELL: Now, that commercial went on to win the Doritos fan favorite ad contest last year. I spoke with Nathan Scoggins, one of the creators. And check out his new ad that could air during the Super Bowl.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Daddy, can you play princess (INAUDIBLE) with me?

UNIDENTIFIED MALE: Sweetheart, I'd love to, but the guys, they're outside waiting for me.

UNIDENTIFIED FEMALE: I've got Doritos.

UNIDENTIFIED MALE: Steve, what is the hold-up?

(END VIDEO CLIP)

BLACKWELL: Yes, Nathan has three daughters. And earlier we spoke about there being the obvious inspiration for that ad.

(BEGIN VIDEO CLIP)

NATHAN SCOGGINS, "FASHIONISTA DADDY DORITOS" AD: We could have probably just turned on the camera and just filmed me documentary style and it would have been the same thing.

BLACKWELL: Yes.

SCOGGINS: But we didn't -- you know, it was actually funny. We were trying to figure out, OK, so we've got my little girl. Now we need to find someone who looks like her dad and clearly we went with the better casting choice.

BLACKWELL: So here's my question. Last year's ad had the flying baby. This year's ad has the daughter. Good ads involve kids? I mean that old rule of kids and animals?

SCOGGINS: Yes, I mean, it's funny because the old rule usually is, you know, never work with kids and animals. And we decided to go in the opposite direction. So we like to make it as hard on ourselves as possible. And -- but I think this year it turned out -- it turned out great. So it's -- next year maybe we'll cast teenagers. We'll kind of incrementally every year to do a different -- do a little bit different -- different thing.

BLACKWELL: Yes. Yes.

So let's talk about the contest. Is there a budget limit here?

SCOGGINS: You know, there isn't. It's kind of like whatever, you know, we've heard of people who spent $5,000, who spent $3,000. We spent $300, mostly on the dresses, which I bought the day before, and on bags of Doritos. So we kept our costs pretty low, mostly because it was just a lot of friends who wanted to pitch in and help out. And so we just -- we got a bunch of people who said, you know, here's what we can do. And so we, fortunately, didn't have to spend all that much. And it kind of, you know, it worked out well for us.

BLACKWELL: So your ad is one of five finalists. And --

SCOGGINS: Yes.

BLACKWELL: And people will be able to vote for them. How do they vote for these ads?

SCOGGINS: You know, people can vote for our ad by going to fashionistadaddy.com. We've got videos, we've got a game that we made. We're trying to have it be as fun a voting experience as possible, because we really do need everybody to vote in order to -- in order for us to air during Super Bowl. And people can vote twice a day on the computer, through Facebook, and also on their cell phones. And when people go to fashionistadaddy.com, we have all the links so that they can do that because we need everybody's -- we need all the love we can get.

BLACKWELL: What makes a memorable ad with so much competition?

SCOGGINS: Some of the other ads have other memorable things, as well. But for us, the idea of a bunch of football-loving guys suddenly, you know, rocking out in dresses on the catwalk, for us that was just kind of -- that had big funny, that had big heart. It really positioned Doritos well because, you know, this is a father who will do anything for his daughter. And, you know, even if it means diving into, you know, six bags of Doritos. So, for us, it felt like a great kind of mixture of things that we love, you know, Doritos, dads, and comedy. So we kind of wrote it all the way.

BLACKWELL: Well, Nathan Scoggins, you do great work. And, man, we wish you success with your fashionista dads ad. Thanks for being here.

SCOGGINS: Thank you so much. I appreciate it. Thanks.

(END VIDEO CLIP)

BLACKWELL: And you know how much 30-second spots are going for advertisers this year? How much it's going to cost them? A new record high, about $4 million.

KAYE: Hillary Clinton is ready to go. Leaving the State Department after four years. Now talking about why she accepted the president's invitation in the first place.

(COMMERCIAL BREAK)

KAYE: It is 30 minutes past the hour now. Welcome back, everyone. I'm Randi Kaye.

BLACKWELL: I'm Victor Blackwell, it's good to be with you.

Here are five stories we are watching this morning. First, is Lance Armstrong. The U.S. Anti-Doping Agency says Armstrong has until February 6th to testify if he ever wants that lifetime ban overturned. But Armstrong's attorney says that's not going to happen. He cites scheduling conflicts is one reason, the other is that Armstrong and his attorney do not believe the U.S. agency has any real power. So they want to talk to international sports authorities instead. Remember, it was a week ago Armstrong admitted to using performance- enhancing drugs.

Story 2, and let's go to sports. They just crowned the champion at the Australian Open. It's the first major of the year. Victoria Azarenka, the defending champ, now has two in a row. She beat Li Na. That was your pick?

KAYE: Oh, yes.

BLACKWELL: The match was stopped three times, twice for injuries, one for a fireworks celebration celebrating Australia Day. You think they could kind of call that.

Here's some sad news, though, Burt Reynolds is in intensive care in a hospital in Florida. He's 76 years old, he is being treated for the flu. His representative said the star of "Gun Smoke" and "Deliverance" was suffering from dehydration. He's expected to be moved to a regular room soon.

A big legal blow for President Obama could have far-reaching consequences. A federal appeals court said Mr. Obama abused his executive authority when he put three people on the National Labor Relations Board last year as recess appointments. The court said the Senate technically was in session, even though it was on a holiday break. The ruling could invalidate hundreds of decisions by the NLRB and end up in the Supreme Court.

In just a few hours, thousands of people are expected to march on the National Mall in Washington to support tighter gun control measures. Organizers say they were inspired by last month's Connecticut tragedy. They want Congress to enforce a ban on military-style assault weapons and require universal background checks. We have a live report later this morning.

KAYE: Hillary Clinton is ready to go. She has one week left as secretary of state before leaving Washington and the Obama administration. Clinton had a sort of exit interview with CBS's "60 Minutes," and guess what? Her boss was there, as well. Here he is, the president, explaining why.

(BEGIN VIDEO CLIP)

STEVE KROFT, CBS NEWS: Why did you want to do this together? A joint interview?

OBAMA: The main thing is I just wanted to have a chance to publicly say thank you. Because I think Hillary will go down as one of the finest secretaries of state we've had. It has been a great collaboration over the last four years. I'm going to miss her. Wish she was sticking around. But she has logged in so many miles, I can't begrudge her wanting to take it easy for a little bit. But I want the country to appreciate just what an extraordinary role she's played during the course of my administration, and a lot of the successes we've had internationally have been because of her hard work.

CLINTON: A few years ago, it would have been seen as improbable, because we had that very long, hard primary campaign. But, you know, I've gone around the world on behalf of the president and our country. And one of the things that I say to people, because I think it helps them understand, I say, look, in politics and in democracy, sometimes you win elections, sometimes you lose elections. And I worked very hard, but I lost. And then President Obama asked me to be secretary of state. And I said yes. And why did he ask me? And why did I say yes? Because we both love our country.

(END VIDEO CLIP)

KAYE: Clinton is expected to spend this last week in Washington. No more trips, but I mean, come on, she already set the record for the most countries visited by a secretary of state. Clinton topped the 100 mark last July.

All right. You have to admit, it seemed like an odd pairing at the beginning, Obama and Clinton. Early on, experts wondered whether their partnership would implode in a very public way. But as Kate Bolduan reports, they, instead, became trusted friends.

(BEGIN VIDEOTAPE)

KATE BOLDUAN, CNN CORRESPONDENT: Barack Obama and Hillary Clinton have faced questions together before. Here in a 2008 presidential debate with CNN's Wolf Blitzer.

(BEGIN VIDEO CLIP)

OBAMA: I don't want to just end the war, but I want to end the mind- set that got us into war in the first place. That's the kind of leadership I intend to provide as president of the United States.

CLINTON: And, of course --

WOLF BLITZER, CNN ANCHOR: Senator Clinton, that's a clear swipe at you.

CLINTON: Really?

(END VIDEO CLIP)

BOLDUAN: Back then, it was a very different relationship in the midst of an already bitter rivalry. OBAMA: While I was working on those streets, you were a corporate lawyer sitting on the board of Wal-Mart.

CLINTON: You were practicing law and representing your contributor, Rezko, in his slum landlord business in inner city Chicago.

BOLDUAN: But that relationship quickly changed.

CLINTON: I endorse him and throw my full support behind him.

BOLDUAN: Just as Hillary Clinton showed her support for President Obama, Obama showed his faith in Clinton.

OBAMA: I have no doubt that Hillary Clinton is the right person to lead our State Department and to work with me in tackling this ambitious foreign policy agenda.

BOLDUAN: What was Hillary Clinton's initial reaction when you told her, look, they're actually considering you as a possibility for secretary of state?

PHILLIP REINES, DEPUTY ASST. SECRETARY OF STATE: She didn't believe it.

BOLDUAN: Philippe Reines is one of Clinton's closest aides.

REINES: I e-mailed her, I think it was the Friday after election day after hearing it from two reporters. And I'm pretty sure her reply was something along the lines of, not for a million reasons.

BOLDUAN: If she was hesitant, why not just say no?

REINES: I think she did, or came awfully close. I think the president was very persuasive.

SEN. JOHN KERRY, D-MASSACHUSETTS: We're delighted to welcome Senator Clinton, secretary of state designate.

BOLDUAN: Clinton was quickly confirmed. But how would she get along with the man who defeated her campaign? Could she work for him?

ELISE LABOTT, POLITICAL AFFAIRS CORRESPONDENT: Everyone expected, including myself, that there would be a lot of division, a lot of Secretary Clinton going behind the president's back.

BOLDUAN: So was there any tension coming in between the two people at the top?

LABOTT: I think everyone's been surprised.

BOLDUAN: Surprised that while Secretary Clinton and President Obama have been separated often as she travels the world, they have maintained a unified front.

REINES: They very early on set a tone of, this is how it's going to be. She is my secretary of state, and from her point of views, he is our president. And she brooked no anything contrary to that. There are not a lot of people in the world who go through what they do. And, you know, it's the President H.W. Bush/Bill Clinton relationship, it's Carter/Ford, you know, McEnroe-Connors. Whatever it is when you're on the court, after the fact, you're like, hey, you're more like me than not, we're bonding. For good or bad, we've been put together. And it's always going to be like that.

BOLDUAN: From rivals to partners, the evolution of this friendship has been something to watch over the last four plus years, and is now entering a new phase as President Obama takes on his second term and Hillary Clinton heads towards her last day as a top member of his cabinet. Randi, Victor?

(END VIDEOTAPE)

KAYE: A Catholic hospital at odds with the church. Fighting a malpractice case by arguing that fetuses are, in fact, not people. Full story straight ahead.

(COMMERCIAL BREAK)

KAYE: The Catholic Church is usually one of the most staunch anti- abortion voices, firmly believing that life begins at conception.

BLACKWELL: But after a mother and her twin boys died during the birthing process, a Catholic hospital in Colorado is arguing that fetuses are not people. CNN's Kyung Lah has more.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT: Randi, Victor, this story does center on a legal case. But there's another question, a moral one. A Catholic institution deciding when it is Catholic or not.

JEREMY STODGHILL: There wasn't one person that went into that E.R., there were three.

LAH: Jeremy Stodghill's wife Laurie, seven months pregnant with his twin boys. It was new year's day 2006, Laurie was vomiting and couldn't breathe. Jeremy rushed her to St. Thomas More Hospital in Canyon City, Colorado.

STODGHILL: Laurie has looked up at me and then her head went down on her chest.

LAH: In the lobby of the emergency room, she went into full cardiac arrest from a pulmonary embolism. Laurie Stodghill, just 31 years old, died. And so did her 28-week along unborn twins.

STODGHILL: I didn't even get to hold them. I have an autopsy picture. That's all I got.

LAH: Stodghill sued the hospital and its owner, Catholic Health Initiatives, which operates nearly 80 hospitals in 14 states. He filed the wrongful death suit on behalf of his wife and his unborn twin sons. In court, he was stunned to learn the hospital's defense. How many people does the hospital say you lost that day?

STODGHILL: One. Since they weren't born, they weren't people. They weren't -- they did not qualify as a person.

LAH: That's right. Catholic Health Initiatives has argued that under Colorado law, to be a person, one must at some point have been born alive. A glaring contradiction to Catholic Church teachings, which says life begins at conception.

Catholic Health Initiatives would not speak to CNN on camera, but said in a statement, "In this case, as Catholic organizations, we are in union with the moral teachings of the church." That doesn't appear to add up in this case. As a Catholic organization, the hospital is supposed to follow the church's teachings, laid out in the ethical and religious directives from the U.S. Conference of Catholic Bishops. No abortions, no contraceptives, no direct sterilization like vasectomies. And it clearly states, "Catholic health care ministry witnesses the sanctity of life from the moment of conception until death."

While the moral debate continues, so does Jeremy Stodghill's legal battle. After he lost in the lower courts, the defense lawyers for the doctors and the hospital owned by Catholic Health Initiatives went after him for $118,000 in legal fees, garnishing his wages.

UNIDENTIFIED FEMALE: OK. Bye.

LAH: He's now bankrupt and struggling to care for his daughter, 9- year-old Libby, on his own.

STODGHILL: Tears, the pain, the heartache. Still. Seven years later.

LAH: That pain is why he won't give up. He's now appealing to Colorado Supreme Court, asking them to decide if his sons were people under the state's laws.

Will it make you feel better to get some sort of answer from the Catholic Church?

STODGHILL: I don't know. Perhaps it'll be closure.

LAH: A permanent reminder next to his heart.

STODGHILL: That's the footprints of the boys.

LAH: A tattoo. Two sets of footprints and the words "our sons." Children in his eyes fighting to get a state and church institution to see them that way, as well.

The Catholic bishops of Colorado would not speak to CNN on camera, but released this statement saying, quote, "we will undertake a full review of this litigation and of the policies and practices of Catholic Health Initiatives to ensure fidelity and faithful witness the teachings of the Catholic Church, an apparent back peddle from the hospital's current legal assistance. Randi, Victor? (END VIDEOTAPE)

BLACKWELL: Remember Casey Anthony? She was acquitted of murdering her 2-year-old daughter Caylee back in 2011? Well, she's on a mission to clear her name, convincing a Florida appeals court Friday to throw out two of her four convictions of lying to authorities in the murder investigation. Anthony's vowed to, quote, keep fighting. And can still appeal the remaining two convictions to the Florida Supreme Court.

KAYE: In wickedness and wrongdoing, ranging from gunmen to good grief. Here's your week of crime in 60 seconds.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I heard about six shots.

KAYE: Three people were injured after a shootout at Lone Star College in Houston. None of the injuries were fatal.

A 15-year-old New Mexico boy admitted murdering his mother, father, and three siblings Sunday.

UNIDENTIFIED FEMALE: We've never had a case like this as far as I know.

KAYE: Officials say his original plan, a Wal-Mart killing spree and death by cops shootout. He'll now stand trial as an adult.

A doctor found dead, bound, and burned in a Philadelphia basement.

UNIDENTIFIED FEMALE: It's just beyond comprehension that this could happen on our block.

KAYE: The man in custody, Jason Smith, an exterminator who was at the victim's apartment for a service call. Police say that before the murder, the two had never met.

And finally, Peter Robbins, the voice of Charlie Brown, was arrested Wednesday. The charges, stalking and making criminal threats. He's pleaded not guilty. That's your week of crime in 60 seconds.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

KAYE: Welcome back, everyone. And good morning, Washington. Nice shot of the Capitol there in Washington, D.C. Folks waking up, starting their day. So glad you're with us here on EARLY START WEEKEND.

BLACKWELL: Hey, if you're not already sniffling and coughing and sneezing, you might be soon. This week, the flu was widespread in 47 states. And it doesn't seem to be letting up at all.

KAYE: Cases of the flu have decreased in Georgia and Hawaii. But cases in western states are on the rise. And eight more children died from causes related to the flu this week. This is according to the latest data from the CDC.

All right, so if you're sitting down right now, you're probably not giving your core a very good workout, but it's very easy to change that. We're going to show you.

BLACKWELL: Yes, with one of these. A stability ball. Yes, that's Desiree's stability ball moving. You may have seen your co-workers sitting on one of these at the office instead of a chair. I thought about getting one of these. So this segment is the right time for me. They may be at school, some schools are now actually using them to help kids stay fit, but a lot of people may be using them incorrectly.

KAYE: So with us to show us exactly how to use these things is Desiree Nathanson, certified nutrition expert, former Miss Fitness New Mexico and the official personal trainer for the Atlanta Hawks cheerleaders. All right, good morning.

DESIREE NATHANSON, CERTIFIED NUTRITION EXPERT: Good morning.

KAYE: So how do these -- we see them all the time, we see them at the gym, we see them in offices. Do they actually help keep you in shape?

NATHANSON: Absolutely. Stability balls have been around since about 1960, but for the past decade, they've gained popularity in mainstream fitness, personal trainers, exercise boutiques. So they help improve balance, they really enhance the neutralizer and stabilizer muscles, they engage your core muscles.

(CROSSTALK)

BLACKWELL: I can't feel it. Do you feel it?

(CROSSTALK)

BLACKWELL: I don't feel anything.

NATHANSON: You don't feel anything? I'll make you feel it in a sec.

BLACKWELL: OK. All right. We all have a different-sized balls, right? How do I know which size to buy?

NATHANSON: First, most boxes have the sizes on them and say which height it's for. You want to blow it up so that it's fully inflated, and so when you touch it, it's firm to the touch.

When you sit on the ball -- now, yours is going to be different because you've got some sassy heels on, but you want to make sure that your thighs are parallel to the ground. OK? If you have a bad back or back problems, it can be a little higher so that your thighs are a little less than parallel.

KAYE: And you use it differently at home than at the office?

NATHANSON: Yes, at the office, you are going to want to have it a little less inflated so it's softer on your bum, because sitting on that hard surface for so long is going to be a problem. Also, you don't want to sit on it for too long of a period of time, because your core is going to get tired. So maybe do, you know, interval training with your ball. So 20 minutes on the ball, 20 minutes on a regular chair.

BLACKWELL: And there's more than just sitting on it. You could use it for weight lifting.

KAYE: Absolutely. Show us. Let's see it.

NATHANSON: This is where our props come in handy. So, Randi, you're going to watch us, and Victor, you're going to play.

BLACKWELL: That's why she's so excited, let's see, because I'm doing it. All right.

KAYE: I'm in a dress, I can't participate.

NATHANSON: We're going to do a couple of upper body exercises and a couple of lower body exercises.

BLACKWELL: OK.

NATHANSON: Let's start with upper body. I don't have any dumbbells this week.

(CROSSTALK)

NATHANSON: So you're going to walk it out, first we're going to do an incline bench press.

BLACKWELL: I didn't know that was going to happen this morning.

NATHANSON: Sink your butt down.

(CROSSTALK)

NATHANSON: We're going to do an incline bench press first. Pretend these are dumbbells or water bottles, and just press it so we're working our pecks here. Get a nice little burn. If you want to work --

(CROSSTALK)

KAYE: Ten more.

BLACKWELL: No, six is enough.

NATHANSON: If you want to work your butt a little more, lift your butt off the ground, squeeze the buns. Yes, more bun squeezing. You're good at that.

BLACKWELL: OK.

NATHANSON: And then from here, we're going to roll back just slightly and we're going to work our abs.

BLACKWELL: OK.

NATHANSON: So we're going to do a nice little crunch, and just lift towards the ceiling.

BLACKWELL: Towards the ceiling. You know, this hurts my neck. And I've always wondered, should I keep like my face parallel to the ceiling? Or should it be curling forward?

NATHANSON: Well, you should be trying to go toward the ceiling, you want to think about squeezing your belly button back in your spine like your ribs and your pelvis are trying to meet.

KAYE: All right. I think we got it.

NATHANSON: We got it.

KAYE: We'll let him keep doing his exercises.

NATHANSON: Once you get really good, you can start to -- you can balance.

BLACKWELL: No, I'm not doing that.

KAYE: That's impressive.

BLACKWELL: That's not going to happen.

KAYE: All right, very nice to see you as always.

(CROSSTALK)

KAYE: We've got you feeling healthy, right? And now it's time for a little (inaudible), a special edition of late night laughs coming up next.

(COMMERCIAL BREAK)

KAYE: Good morning, Atlanta. Take a look at that. City's just waking up. A little bit of traffic downtown there. But the lights are on. We're sure glad you're with us here on EARLY START WEEKEND on this Saturday morning.

A late night takeover.

BLACKWELL: Yes, Matt Damon finally got a little revenge on his pseudo enemy Jimmy Kimmel this week when he took over the late night show with his buddy Ben Affleck.

KAYE: Take a look at what might be the best late night laugh of the week.

(BEGIN VIDEO CLIP)

JIMMY KIMMEL: Sincere apologies to Matt Damon. We ran out of time for him tonight, we'll get him on the air again soon.

Matt Damon, apologies, we ran out of time.

Apologies to Matt Damon, we ran out of time.

I just want to apologize to Matt Damon. We ran out of time for him.

Matt Damon. Matt Damon. The extremely overrated Matt Damon. Ran out of time.

MATT DAMON, ACTOR: Now, I am going to be making a few changes tonight. Please welcome, legendary actor Andy Garcia.

Are you prepared to be my faithful sidekick?

ANDY GARCIA, ACTOR: See, I brought my taser.

DAMON: What are you -- oh, come on, man.

BEN AFFLECK, ACTOR/DIRECTOR: I'm sorry.

AFFLECK: Forget it, Matt, I couldn't do it to Jimmy.

DAMON: You've never done this show? Why not?

NICOLE KIDMAN, ACTRESS: He's just -- he's not classy.

(END VIDEOTAPE)

KAYE: That is definitely the best takeover ever. And some of the best laughs. I love Ben Affleck popping up with the cue cards.

BLACKWELL: Yes, apparently that was pretty funny.

KAYE: Apparently I guess he's -- he finally got his revenge. He's said this for years.

BLACKWELL: He deserves this. Matt Damon has taken a lot from Jimmy Kimmel. It was a funny show.

KAYE: It sure was. Good to see him finally get some good revenge there.

Well, thanks so much for starting your morning with us. We've got much more ahead on CNN's SATURDAY MORNING, which starts right now.