CNN Student News Transcript: November 18, 2008

(CNN Student News) -- November 18, 2008

Quick Guide

Japan in a Recession - Examine the factors behind an economic power's declaration of recession.

Shrinking on the Shelves - Consider why some popular food products are coming in smaller packages.

Crisis in Congo - Discover what could be the biggest cause of violent clashes in Congo.

Transcript

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

CARL AZUZ, CNN STUDENT NEWS ANCHOR: It is Tuesday, November 18th, and you're right on time for the start of a new edition of CNN Student News.

First Up: Japan in a Recession

AZUZ: First up, recession. No country wants to use the word to describe the state of its economy. But Japan, one of the world's biggest economic powers, is in one. The nation's government made the announcement yesterday. A recession is a significant decline in economic activity, and the Japanese economy, like many others, has been battered by the global financial crisis. Kyung Lah examines some of the factors behind Japan's announcement and what it could mean for the country.

(BEGIN VIDEO CLIP)

KYUNG LAH, CNN REPORTER: You've heard the phrase, "If it looks like a duck and walks like a duck"? Well, this is the report that officially says that Japan's economy, the world's second-largest economy, has now slipped into recession for the first time since 2001.

Now why? There are a number of factors, but the biggest factor, if you talk to any economist here, is that the U.S. consumer -- that all-important consumer, Japan's number one customer -- just is not buying. They cannot get the loan for that big Japanese automobile. They also don't feel like spending on the smaller-ticket items, like the Wii. So, what that amounts to is that Japan's brick-and-mortar companies, the companies that you know -- Sony, Toyota, Honda, Nissan -- those companies are struggling in the global slowdown. And so what that means is that those companies make less money, and then that translates into job losses and a weakening of Japan's real economy. So, this is something that puts an official ticker on what many people had already believed was happening, is that Japan's economy is in a recession.

(END VIDEO CLIP)

Shrinking on the Shelves

AZUZ: Times are tight here in the U.S., too. That's why some companies are making changes to our food. Not the price, but the packaging. Chris Lawrence takes us down the supermarket aisle, where some items are shrinking before our eyes.

(BEGIN VIDEO CLIP)

CHRIS LAWRENCE, CNN REPORTER: There's a surprise underneath the jar of Skippy: It just developed a dimple, a curve in the jar that cuts out 10% of the peanut butter. Less product; same price.

JAN HUTCHESON, SHOPPER: I think they're kind of trying to take advantage of people not paying attention.

LAWRENCE: Skippy skimping? Well, they're not alone. In the last year, a lot of your favorite products have been on some heavy duty diets. Dial soap is still $2.99, but it's 5 ounces lighter. There's less ice cream in the cartons. And the Cheerios box is smaller.

BRIN ASHER, SHOPPER: And they don't advertise it at all, so really I didn't even notice.

LAWRENCE: From the front, these boxes look the same as always. Kellogg's just making them less deep.

JULIE HOLMES, SHOPPER: They always want to tell you if it's the new, bigger size; the new, better taste. But they obviously aren't gonna tell you, "We're skimping on you a little bit."

LAWRENCE: We contacted these companies to find out why. Kellogg pointed to a dramatic rise in the cost of grains. Dreyer's says, "Our ingredient costs have risen by 30-60%." Skippy's parent company Unilever says, "Manufacturing and transportation costs have also increased significantly." So, why not just raise prices, even 10-20 cents?

DREW CONRAD, PRICING CONSULTANT, SIMON-KUCHER & PARTNERS: Consumers tend to have these psychological price thresholds in their head. So, they say, "I don't want to pay more than a dollar for a bar of chocolate."

LAWRENCE: Pricing consultant Drew Conrad says when products break that threshold, sales suffer. So the old 8-ounce Hershey bar slims down, as more companies keep the price the same and cut the quantity.

LAWRENCE: When consumers figure all this out, are they just going to stop buying certain brands?

CONRAD: Most people don't. They're very brand loyal. Do you change your breakfast cereal? People get into certain habits. They trust certain brands.

LAWRENCE: Experts say shoppers should be checking the small labels that tell you exactly what you're paying per ounce, because ultimately, it is up to the consumer to be vigilant. Chris Lawrence, CNN, San Francisco.

(END VIDEO CLIP)

Is this Legit?

ERIC GERSHON, CNN STUDENT NEWS: Is This Legit? The Santa Ana winds are dry because they originate in the desert. This is true. The Santa Ana winds originate in the Great Basin, and they typically heat and speed up as they blow downslope across southern California.

In the Headlines

AZUZ: Those winds have been fueling the wildfires that are scorching across parts of southern California. But the winds let up a little yesterday, allowing some residents to return to their homes. The danger, though, far from over. Multiple fires are still burning through the region, and officials say it could take several more days to get these flames under control. The largest blaze has already destroyed more than 200 buildings and is threatening thousands more.

AZUZ: Moving to Chicago, where President-elect Barack Obama and Senator John McCain met this week for the first time since they faced off as presidential candidates. The former rivals discussed issues like the economy, energy and national security, in what they described as a "productive conversation." And they said that they hoped to work together to confront the challenges facing the country.

AZUZ: And the space shuttle Endeavour is helping out with some home improvements on the international space station. The shuttle and its seven-person crew arrived at the orbiting outpost on Monday, and brought along a whole mess of stuff to help upgrade the ISS: New sleeping compartments, exercise equipment, a new fridge and toilet. But the strangest item, get this, might be a new recycling system that, believe it or not, is designed to turn urine and sweat into drinking water.

Promo

AZUZ: Mmm, sounds disgusting! Even more gross: NASA engineers ran a taste test on some of these samples. They swear it's fine, but I'm not gonna be the first in line to try it. How about you? Besides it sounding nasty, what are your thoughts on this urine-into-water idea? Head to our blog and tell us what you think.

Fast Facts

GERSHON: Time for some Fast Facts! The Democratic Republic of Congo, or DRC, got its independence in 1960. Civil war erupted in the African nation in the late 1990s, and the violence drew in several neighboring countries. In 2000, the United Nations started sending troops to help end the fighting. The DRC's civil war ended in 2003, but more than a million people had been displaced by the fighting.

Crisis in Congo

AZUZ: That civil war may be over, but violence is raging through the African nation yet again, as government forces clash with rebels. This has been going on for several weeks now. The U.N. had brokered a cease-fire between the groups, but that appears to have been broken by renewed fighting. Jim Clancy looks at what could be the biggest cause of the conflict.

(BEGIN VIDEO CLIP)

JIM CLANCY, CNN REPORTER: Cause and effect: This is eastern Congo, where a rebel conflict and the humanitarian crisis that comes with it have dragged on for about a decade. An estimated 50,000 people have been displaced since violence flared up last month. That brings the total to about a quarter of a million displaced since August, according to the U.N. Conditions in the camps are desperate.

IBRAHIMA COLY, U.N. HIGH COMMISSIONER FOR REFUGEES: There is a sentiment of panic here. The security is the first priority; the second priority is food.

CLANCY: And there's not enough of either to go around. U.N. peacekeepers, who struggle to protect the displaced, are feeling the strain.

ALAN DOSS, U.N. SPECIAL REPRESENTATIVE: We have approximately one soldier for every 10,000 citizens in the Kivus. We have 10,000 soldiers roughly in the Kivus; ten million people. So, that shows you the scale of the challenge we face.

CLANCY: And the blue helmets are sometimes targets themselves. Rebels recently fired rockets at a U.N. convoy in North Kivu. Even some of the displaced are taking out their frustration on U.N. troops. The biggest obstacle to peace may be the DRC's abundance of mineral resources, including gold, tin ore and coltan, a key component in cell phones and laptop computers. The international watchdog group Global Witness says all sides in the conflict are involved in illegal mining or related activities, and they all have a financial incentive to keep the war going.

CARINA TERTSAKIAN, GLOBAL WITNESS, DRC TEAM LEADER: These armed groups wouldn't be able to trade if there were nobody to buy these minerals.

CLANCY: Western diplomats are trying to pressure leaders to implement existing agreements, such as a January cease-fire that was signed by the DRC and 22 rebel groups. But until the international community confronts the plunder of mineral wealth, it is hard to imagine a lasting peace coming to this region. Jim Clancy, CNN, Atlanta.

(END VIDEO CLIP)

Before We Go

AZUZ: Now before we leave you today we want you to check out this one guy's hair-raising new record. Eric's locks are a little long - nothing really record-breaking about that. That is, until you start shaving, combing it out, hair-spraying, blow-drying. Oh yeah, and don't forget to smash it between a couple giant boards. That's what it takes when you're aiming to have the world's most massive mohawk! At 27 inches, Eric's hair stands head and shoulders above the rest.

Goodbye

AZUZ: And he did it all for charity, using his spiky hairstyle to really make a point. That's where we cut and run for today. I'm Carl Azuz.