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."

• Watch Obama's address
• Bush says economic outlook is "demanding."

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.

• Leslie Klinger on the virgin vampires of Twilight

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.

• Sally Quinn recommends the Washington National Cathedral

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.

• WSJ: Geithner pick lifts stocks.

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.