. >> woodruf now, president obama takes on the banksnd rollout new plans to cut them wn to size. the president open with another rbal assault on the tion's mega-banks, accusing th of taking reckless risks in pursuiof quick profits. >> we have to ent common-sense rerms that will protect erican taxpayers and the erican economy from future ises as well. fo while the financial system is far stronger today an it was one year ago, 's still operating unr the same rules at led to its near-collapse. >> wdruff: in effect, mr. ama said, the banks want to rake in profits when their gales pay off, but they want taxpayers to bl them out when things go south. w, he said, it's time for congress to adopt two addional majoreforms. rst, to reduce risk, he call for a ban commercial banks owning, investg in, or sponsoring hedge fun and ivate equity funds. he'dlso bar financial institions from investing ney for their own benefit-- reoring curbs similar to those firsenacted in the great pression. send, the president said he wants limit the size of any single firm in the fancial sector. he saiamericans

cheers and applause >> woodruf president obama ended onof the toughest weeks he's had in office at a to ll meeting in elyria, ohio. it came three days after esday's stinging loss of a maachusetts senate seat, an outcome that derailed demoatic hopes of a quick, final vo on alth care. mr. obama acknledged today it was like hittinga little bit of a buzz sa" but he insisted he won't give on health care. >> i didn'take up this issue to boost my poll numbers you knowhe way to boost your poll numbers inot do anything. that's how you do it-- you don offend anybo. i'd ve real high poll numbers. all of washington wod be saying, "what a genius ( laughter and i am not going twalk away just because its hard. we're going to keep on wking to get this done with demoats, i hope witrepublicans-anyone who is wilng to step up. >> woodruff: the president ao brought a new populist edge himessage on jobs and the econy in a state where unemployment is ne 11%. >> so long as i ha the privilege of serving ayour president, i will nostop fighting for you. i will take my lumps, t i won't stop fhting to bring back

. >> woodruf cynthia talker. coming back to this notion jo harris put out of the publi versus the washington audiee. do youee that same divide, two audiences hhad to reach? >> i dot think the tune i don't know spee was the place for him lay out the legislative and political strategy f the job that he is trying toaccomplish. the legislation thate wants t get passed. i think s jobas to shore waiverring democrats. i'm not going to r for the hills andou shouldn't, either. in the comin days he'll beut on the trail as heas today getting voter pport ande's going to be doing a t of arm-twistingehind the scen to get his agea passednd in at sense heas a much higher chance of moving democrat tha he does republans, i think. >> woodruff: whaabout that, john harris? what is th.. what'syour sense in was it smart for him toake this appeal to bipaisanship and to say to his collgues "don't run for the hills"? >> absolutely and i wanto clarify my point. i don't think a te i don't know speech would be the appropate place to lay out

president obama talkabout thwarting future terroattacks >> woodruf and i'm judy woodruff. on the newshour night, we'll talk to denimcdonough, chief of sff for the national security council, d get reaction tthe president's proposals. >> lehrer: then, the sained u.s. jdan relationship, after a jordanian dole agent killed seven cia emplees and himself at a base in afghanian. >> woodruff: jeffreyrown looks at a treasurtrove of national geographic images fromround the world,ever seen before by the public. >> i didn't ow if i had the piureç at all, but i was gog to do everything i possibly cld, within reason. wiout being eaten. to try to gethatÑi photograph. >> lehrer: and we ta the pulse of theation's economy at the start of the new year. that's all ahead, ononight's pbs newshour. major fundg for the pbs newshour is prided by: >> this is the eine that connectsbundant grain from the americ heartland to haran's best selling whole wat, while keepin60 billion pounds of carbon out of the atmosphe every year. bnsfthe engine that connects us. intel. supportingath and science ucation

. >> woodruf the u.s. and brith embassies remain closed after that sa al qaeda off-shoot ised new threats on sday. other western embasss curtailed activity. and yemeny security forces kill two militants in a raid ouide the capital. back in waington, secretary of state hillary clinton sai the american embassy would reop as conditions permit. and she sa the situation in yemen is a t concern. >> the spillover effec from instability direly impact the neighbors. obviously we seelobal implications frothe war yemen and the ongoin effort by al qaeda in yemen to use it as a basfor terrorist attas far beyond the region. >> woodruff: on sundayrennan, the present's deputy national secury advisor, sa the u.s. will help yemen deal with al qda. >>e're not going to let al qaeda continue to so of make gas in yemen because we need toake whatever steps neceary to proct our cizens there as well as abroad. >> could that mean u.s. oops on the grounin yemen? >> we're not talkingbout that at this point at l. >> woodrf: in the mea

. >> woodruf that's all ahead on tonight's "pbsewshour." mar funding r the pbs newshour is provided by: >> wt the world neednow is ergy. the energy to get the econom humming again. the energy to tackle cllenges like clite change. what if that energy ca from an energy company? every da chevron invests $62 million in pple, in ideas-- seeking, teachg, building. fueling growth around the rld move us all ahead. this is the power of human energy. chevron. pacific life. toyota. grt thornton. and the williaand flora hewlett foundation, woing to solve soci and environmental problems at home and around e world. and th the ongoing support of these institutions a foundations. and... this program was made possle by the corporaon for public broadcasting. and by contributions to yo pbs station from viewe like you. thank you. >> wdruff: president obama offered a smalpeek today at wh he'll say wednesday night in his state of the ion address. it was a n attempt to offer help to the cotry's long- strugglingiddle class. >> today's announcement was the presiden

. >> woodruf the president's proposal to frze outlays for three years is expected toome nexteek, when he submits his budget to congress. it would take effect in tober, and leave untouched programs like medicarand social curity, and national defense ite house spokesman robert gibbs said the cuts uld be stragic. >> the president wilcut programshat are duplicative or see what he believes is no important purpos and instead inve in, as families do, investments for the ture. >> woouff: the proposal would freeze $7 billion out of the $3.5 trilliobudget, or about 17% ofederal spending. it's designed to sav$250 billioover the coming decade. republic leader mitch mcconnell iticized the idea as too all. >> freezg non-defense domestic discretionary spding would be a go idea. however,f you put into the baseli the stimulus, tp, and you account for inflation,t's not nearly as big a step as e american people are asng us to take. >>oodruff: the president is expected to dress the deficit, among otheeconomic issues, inuding unemployment, in his state of the union msage tomorrow night. in an interview wi

." >> woodruf we look at the state of u.s. intelligencefter the botched attempt blow up an airliner. >> we fi those and put them together. much easier to -- >> lehr: paul solman reports on why small business aren't increasing their hing. >> woodruff: plus, theeekly analysis omark shields and david brooks. >> lehrer: that's all ead on tonight's "pbs newshr." major funding for the pbs newshour is provided b >> lehrer: more americs losing jobs, and even more ging up hope of findg them. that was the gist of decembes unemoyment report. jeffrebrown has the story. >> brown: e labor department numbertoday fell well short of hos in some quarters that the economy might havedded workers at t end of 2009. instead,5,000 americans lost theijobs last month, led again by hits in the constction and manufauring sectors. thunemployment rate held steat 10%, but that's becausmore than 660,000 people gave up oking for work. president obama cited th numbs this afternoon, as he announced w spending to create jobs in newable energy. >> t jobs numbers

i'm judy woodruf lehrer: and i'm jim lehrer.e'll see you -line and again here tomorrow evening th mark shields d david brooks, among others. thananu and goht. major funding for the pbs newshour is provided by: >> what the rld needs now is ergy. the ergy to get the economy hummg again. thenergy to tackle challges ke climate chang what if that energy camerom an energy company? everyd, chevron invests $62 million in people, in idea- seeking, teaching, buiing. fuelg growth around the world to move all ahead. this is the power of human energy. chevron. when someone you count on not responsive, d things could haen. grant thornton believes it's importt to be responsive through direct clienaccess to our paners. grant thornton. >> and by e bill and melinda gates foundation. dicated to the idea that all people deserve t chance to live a healthy proctive life. and with the ongng support of the institutions and foundations. and... this program w made possible by the corporation f public broadcastin and contributions to your pbs station from

. >> woodruf so finally where do you seeotential areas where you n work withhe president? >> well, think i just mentioned one d that has to do with tax reliefor small businesses. alwayshe devil's in the details. i would like to see th. the esident has state of the ion mentioned he would like to see free-tra agreements passe i think those will create jobs. i think republicans will rk with him on that. but we're not gog to work with him on the nationalization ofhe health-ce system. we're not going to work wi him to plunge the nation in to deeper debt. but on ite where there is some common ground, is isn't abousaying no. this is finding common ground to he create jobs in america andnsurance we don't ave unconscionable immore ral debt upon our children and gndchildren. >> rresentative japanese yen nsarling of texas, we thank you very much. >> thank you. >> lehrer: wll talk to shields and brooks about t meeting right afr the other news of the day. and for that, we go hari sreenivasan in our nsroom. >> sreenivasan: u.s. econoc growth at the end of 29 was the best in six years. n