Sasha Obama wandered into President Obama's bed early Tuesday morning to have a chat with her parents.

MOSCOW, Russia (CNN) — An unexpected visitor wandered into the bedroom of President Obama and First Lady Michelle Obama in the wee hours of Tuesday morning — but the Secret Service wasn't worried about a security breach.

The visitor was 8-year-old Sasha Obama, who's touring Russia along with her older sister Malia. The younger girl could not contain her excitement about Dad's fifth foreign trip in office, so she decided to wake her parents to tell them about it, the president cheerfully recounted in a CNN interview.

"Sasha this morning around 4 am just wandered into our bed and plopped down and started chatting," Obama said in the interview a few hours later. "That was sort of a highlight, although I'm a little groggy now as a consequence."
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President Obama on Tuesday called Michael Jackson a 'core part of our culture.'

MOSCOW, Russia (CNN) – As millions around the globe prepared to watch the public funeral of Michael Jackson, President Obama told CNN on Tuesday the entertainer's legacy will be a man who had extraordinary talent "matched with a big dose of tragedy."

In a CNN interview focused on his diplomatic efforts at a two-day summit in Russia, Obama took a question about Jackson's cultural impact and called him "one of the greatest entertainers of our generation."

"I think like Elvis, like Sinatra, like the Beatles he became a core part of our culture," Obama told CNN. "His extraordinary talent and his music was matched with a big dose of tragedy and difficulty [in] his private life and I don't think we can ignore that."

But Obama added it's important to "affirm what was the best of him and that was captured by his music."

"Music that Michelle and I listened to from the time we were little kids," said Obama. "I remember listening to 'A, B, C' when I was 8 or 9 or 10, and he kept on producing extraordinary music for years after that."

More bad news for the newspaper industry, as President Obama's top aides signal it will not be getting a government bailout.

WASHINGTON – This just in: More bad news for the newspaper industry, as President Obama's top aides signal it will not be getting a government bailout. With the Boston Globe just the latest big-city newspaper teetering on the edge of shutdown, White House spokesman Robert Gibbs brushed aside a question about whether the federal government will consider stepping in to help save newspapers, as it has with so many other industries.

"I don't know what, in all honesty, government can do about it," Gibbs told reporters. Gibbs signaled one difference from bailouts for the auto industry and financial firms is that it's a "bit of a tricky area" for the White House to be helping media companies that cover the President, given the potential for conflicts of interest.

It's not like the President, who is routinely spotted with a newspaper tucked under his arm when he's getting into a motorcade, is completely unsympathetic to the industry. Gibbs said Obama feels "concern and sadness" over the plight of the print media, though the spokesman couldn't resist a poke at some of the reporters in the briefing room who had recently posed skeptical questions about the President's push to trim a small amount of federal spending.

"You guys didn't think $100 million meant a lot a few weeks ago," Gibbs said. "But looking at some of the balance sheets, $100 million seems to mean a lot." Ouch.

President Obama will announce Kanasas Gov. Kathleen Sebelius as his pick for HHS, sources say.

WASHINGTON (CNN) –President Barack Obama on Saturday asked Kansas Gov. Kathleen Sebelius to be his nominee for Health and Human Services secretary, according to two White House officials.

The officials told CNN that Obama is expected to make the announcement Monday afternoon. The officials asked not to be named because the announcement has not yet been made.

Chu is Obama's choice for energy secretary, sources tell CNN.

WASHINGTON (CNN) – President-elect Barack Obama is likely to name Dr. Steven Chu, a physicist who runs the Lawrence Berkeley National Laboratory, as his new Energy Secretary, three Democratic officials close to the transition told CNN.

The three officials said the announcement is expected to come next week in Chicago and that Obama will also unveil Carol Browner, former administrator of the Environmental Protection Agency in the Clinton administration, as the newly-created "climate czar" inside the White House itself.

Chu won the 1997 Nobel prize in physics and is highly respected in energy circles. But some Democrats have privately expressed concern that Chu has no political experience as he takes on the monumental task of passing a landmark energy reform bill early next year.

While Browner is seen as a shrewd inside player who could help the incoming Energy Secretary navigate Capitol Hill, Obama will face questions about how effective his team will be going up against oil companies and other special interests that do not want to change the status quo.

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Obama is now calling on Blagojevich to step down.

(CNN) – President-elect Barack Obama Wednesday joined calls for Illinois Gov. Rod Blagojevich to resign.

"The president-elect agrees with [Illinois] Lt. Governor Quinn and many others that under the current circumstances it is difficult for the governor to effectively do his job and serve the people of Illinois," Obama spokesman Robert Gibbs said.

On Tuesday Blagojevich was arrested on federal conspiracy charges. Prosecutors alleged in their complaint that Blagojevich pressured candidates to replace Obama in the Senate for campaign contributions and other benefits.

Gibbs said Obama also supported legislation that will be considered by Illinois lawmakers on Monday to authorize a special election to choose his successor.

Obama believes Illinois lawmakers should "put in place a process to select a new senator that will have the trust and confidence of the the people of Illinois," Gibbs said.

Full story

CHICAGO (CNN) — The Obama transition team has just set up a special team to interact with the State Department’s Operations Center as well as the office of the Director of National Intelligence, according to an Obama aide. That information is then being filtered to President-elect Obama, who is getting regular updates at his residence here in Chicago. He is scheduled to be home all day Thursday celebrating Thanksgiving with family and friends.

An Obama spokesman told reporters the president-elect had spoken by phone with both Secretary of State Condoleezza Rice and Indian Ambassador Ronen Sen.

Orszag is expected to join Obama’s team tomorrow.

(CNN) — Two sources close to the transition tell CNN that on Tuesday, President-elect Barack Obama will officially unveil Peter Orszag as his nominee for director of the Office of Management and Budget at a press conference in Chicago.

Obama hinted at this at an event Monday, when he suggested his Tuesday event would focus on finding cuts in the federal budget to help dig the nation out of the fiscal crisis.

“Full recovery will not happen immediately,” Obama told reporters. “And to make the investments we need, we’ll have to scour our federal budget, line by line, and make meaningful cuts and sacrifices as well, something I will be discussing further tomorrow."

(Updated 6:25 p.m.: Bill Richardson is still on track to be named Commerce Secretary, but not Tuesday.)

CHICAGO (CNN) — The logistics for today's economic team rollout had a taste of Chicago baseball mixed in. The room was divided into two sides: reporters on the south side of the room have small White Sox tickets on their seats. Those on the north have tiny Cubs scraps of paper, complete with semi-official MLB insignias. The President-elect, of course, is a South Sider who roots for the Sox.

Bill Richardson is expected to be named as the Secretary of Commerce, two Democrats tell CNN.

(CNN) — Two Democrats close to the transition tell CNN that New Mexico Gov. Bill Richardson is now expected to be nominated as Secretary of Commerce by President-elect Barack Obama, pending the final vetting process.

Richardson, one of the leading Hispanics in the Democratic Party, had been seeking the Secretary of State post but lost out to Sen. Hillary Clinton. Obama aides have told CNN that Obama is “on track” to nominate Clinton as his secretary of state after Thanksgiving.

The precise timing on the announcement of Richardson’s appointment is unclear.

Two Richardson advisers said privately that Richardson had been hoping State would be his prize after facing political heat for picking Obama over Clinton, but the governor is willing to accept another post in hopes that he will move up in the Cabinet later in the administration.

Richardson served as Energy Secretary and U.S. Ambassador to the United Nations in the Clinton administration.

Obama’s pick will now mean that at least three former rivals from the Democratic presidential primaries will be in senior posts in the Obama administration — Richardson, Clinton and Vice President-elect Joe Biden.

The Obama girls on their way to school in Chicago

(CNN) – Obama spokeswoman Stephanie Cutter confirms to CNN the Obama daughters will attend Sidwell Friends school in Washington, DC.

"They looked at a lot of great schools but they felt Sidwell fit their best interests," spokeswoman Stephanie Cutter told CNN.

Chelsea Clinton also attended the school when her father was in the White House.

After dropping out of the presidential race, New Mexico Gov. Bill Richardson, who had worked in Bill Clinton's administration, endorsed Barack Obama.

CHICAGO, Illinois (CNN) — Gov. Bill Richardson of New Mexico is a serious contender for commerce secretary in the Obama administration, two sources close to the transition said Friday.

The same sources, however, cautioned that Richardson could be tapped for another senior post as well. They do not consider Richardson's appointment to the Commerce Department to be a done deal.

Richardson, 61, was a candidate for the 2008 Democratic presidential nomination. Currently in his second term as New Mexico's governor, he previously served as ambassador to the United Nations and energy secretary in the Clinton administration.

Jones is the leading candidate to be Obama's national security advisor.

CHICAGO, Illinois (CNN) – Two sources close to the Obama transition team tell CNN retired Marine Gen. Jim Jones has emerged as President-elect's leading choice to become national security adviser in the White House.

The sources said Jones has been given the impression by the President-elect that the job is his if he wants it. But the officials said there are still private discussions underway and no final decision has been made.

The discussions are focused on precisely how much power Jones will have in the staff job since he is used to being in a command role. Among his many posts, Jones served for several years as the operational commander for NATO.

In the third and final presidential debate, Obama noted that he deeply values advice from Jones, who has four decades of military service.

One person close to the transition noted Jones is a bipartisan figure who has warm relationships with both current Defense Secretary Robert Gates, who may stay on the job for at least a brief period, as well as Sen. Hillary Clinton, who is now on track to be nominated as Secretary of State after Thanksgiving.
CNN first reported last week that Jones was getting serious consideration for either national security adviser or Energy Secretary.

Sources tell CNN Tom Daschle is Obama's choice for Secretary of Health and Human Services.

CHICAGO (CNN) — Three sources close to the transition and in a position to know tell CNN that former Sen. Tom Daschle is President-elect Barack Obama's choice to be Secretary of Health and Human Services and the former Senate Majority Leader has indicated he wants the job.

Most significantly, Daschle negotiated that he will also serve as the White House health "czar" — or point person — so that he will report directly to the incoming President. The significance is this guarantees that by wearing two hats Daschle, and not White House staffers, will be writing the health care plan that Obama submits to Congress next year.

The sources said the precise timing of the announcement has not been worked out, but Daschle is likely to officially join the Obama transition team as the lead adviser on health issues in the next few weeks. An Obama transition official had no comment.

Daschle is billed as a "special public policy advisor" in the Washington office of the lobbying firm Alston Bird, though he is technically not a federally registered lobbyist. But his wife, Linda Daschle, is a registered lobbyist at the powerful firm Baker Donelson, which does have some health clients.

Obama officials are looking into the former president's finances. (Getty Images)

CHICAGO (CNN) – Two Obama transition officials confirm they have begun taking a look at former President Bill Clinton’s finances and post-presidential dealings as part of the early vetting process into whether or not there’s any negative information to wave President-elect Barack Obama off from consideration of Sen. Hillary Clinton as Secretary of State.

The officials said the transition team is seeking unspecified records from the former president to get a better handle on issues related to his foundation work and presidential library to try and deal with potential conflicts of interest if Sen. Clinton is nominated for the post.

While the officials refused to say how quickly the information is being turned over, they are refuting a Politico report suggesting transition officials are exasperated by slow cooperation from the Clintons.

“That is just not true,” said one of the Obama transition officials.

(CNN) — Three officials close to the transition say prominent Washington lawyer Greg Craig is under strong consideration to be named White House counsel, the powerful post of the president's top lawyer.

Craig first gained prominence representing President Clinton in the Senate impeachment trial, but he endorsed Barack Obama over Hillary Clinton in the Democratic primaries and later played a key role in Obama's vice presidential vetting process.

"He's a very strong possibility," said one person close to the transition, who added Craig is "highly regarded" and trusted for his discretion by Obama.

A second official close to the transition was more bullish, calling it "all but a done deal" that Craig will be selected. A third official called Craig a "strong" contender at the top of the short list for the post.

Craig did not return a call seeking comment.

ST. PAUL, Minnesota (CNN) — A White House official says first lady Laura Bush and Cindy McCain will speak briefly from the podium at the Republican convention tonight, urging delegates and television viewers to help hurricane victims. Mrs. Bush herself said at a Louisiana delegation breakfast Monday morning that she will give a speech tonight, and noted she will talk a bit about what a terrific first lady Cindy McCain will make. The Republican National Committee will reveal more details within the next hour.

Watch: Laura Bush reacts to the storm

Watch: CNN's Ed Henry reports on what real people in Ohio are saying about the GOP choices for Vice President..

WASHINGTON (CNN) — With John McCain touring Pennsylvania Monday with his good friend and the state's popular former governor, Tom Ridge, the buzz is inevitably building about whom the Republican presidential candidate will select as his running mate.

If chemistry winds up being a key factor for McCain, Ridge has to be high on the so-called short list of veep possibilities — and the fact that Pennsylvania is such a critical swing state doesn't hurt. Plus, as a moderate Republican, picking Ridge could help give McCain even more street cred with independent voters as he tries to re-build the maverick image that faded a bit as he grew closer to President Bush in recent years.

But on the other hand, choosing Ridge could alienate social conservatives because of the former governor's long support for abortion rights. Given the reactions I gathered on my recent trip to another key battleground, Ohio, Republican rank-and-file voters want a conservative to fill out McCain's ticket and help get the party's base to the polls.

Their overwhelming favorite is Romney — not Ridge.

While I was in Lima, Ohio, last week I decided to ask Republican voters waiting on line for a McCain town hall meeting what they think, in order to gauge their passion.

The overwhelming favorite, no question, was former Massachusetts Gov. Mitt Romney. More than a dozen Republicans told me Romney would be McCain's best choice, especially with the economy emerging as issue number one on the campaign trail. "McCain's no businessman," said Sherry Key, adding of Romney: "I think he's good at economics and that's what John McCain needs. It's the only thing he's lacking."

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New Jersey Mayor Richard Gerbounka will endorse McCain Monday.

(CNN) — Sen. John McCain will get an endorsement Monday afternoon in New Jersey from a Democrat-turned-Independent, Linden Mayor Richard Gerbounka, according to two Republican sources.

McCain advisers are eager to tout the endorsement as the Senator continues to try and show he has crossover appeal as a "maverick," though Gerbounka is clearly not a household name.

Gerbounka, whom Mc Cain advisers describe as a lifelong former Democrat, was elected in 2006 as an Independent. His move to back McCain comes as the Senator ramps up efforts to appeal to independent voters.

New Jersey is one of several battleground states that McCain and Sen. Barack Obama are both pushing hard to win. A recent CNN analysis finds Obama has the edge in the state.

Vice President Cheney will speak at the GOP convention in September.

WASHINGTON (CNN) – The campaign camp of GOP presidential candidate John McCain has invited Vice President Dick Cheney to speak at the Republican National Convention, a spokeswoman said.

There had been concerns that Cheney had not been invited to address the gathering.

Cheney spokeswoman Megan Mitchell said it is likely Cheney will speak on the first night of the convention, but the exact day and time haven't been set.

The convention will be held September 1-4 in Minneapolis-St. Paul.

"The vice president looks forward to participating in the Republican national convention and continuing to work for the election of Senator McCain and other Republican candidates in the coming months." Mitchell said.