From NBC's Harry Enten
With Virginia's Democratic gubernatorial primary less than a week away, two new public polls show state Sen. Creigh Deeds leading his better-known rivals, although within the margin of error.
 
In a new Suffolk University survey, Deeds is favored by 29% of likely primary voters, while former DNC Chairman Terry McAuliffe is at 26%, and former state Del. Brian Moran is at 23%. More than a fifth of the voters (23%) remain undecided. 
 
A Daily Kos/Research 2000 poll also has Deeds in the lead with 30%, but it's Moran at 27% who holds the second spot. McAuliffe is in third at 26%, while 17% of the electorate is undecided. 
 
Deeds has gained an impressive 17 percentage points since the last Daily Kos/Research 2000 poll conducted two weeks ago. In that May poll, McAuliffe led with 36% of the vote, Moran was in second with 22%, and Deeds was well back in third at 13%.
 
Still, whoever emerges victorious next Tuesday will still face an uphill climb in the general election against Republican Bob McDonnell.
 
According to the new Daily Kos/Research 2000 poll, McDonnell leads Deeds 46%-34%, McAuliffe 46%-33%, and Moran 43%-35% in potential general election match-ups.

From NBC's Domenico Montanaro
Three more Obama bundlers have been given ambassadorships by President Obama.

Video: President Obama names some big campaign donors and fundraisers to serve as U.S. ambassadors in plum posts overseas. NBC's Lisa Myers reports.

Donald Gips (nominee for Ambassador to South Africa) and Nicole Avant (Bahamas) both raised more than half a million dollars for candidate Obama, and David Jacobson (nominated for Ambassador to Canada) bundled between $50,000 and $100,000 for President Obama, according to a bundler list compiled by the Center for Responsive Politics.

As we reported a week ago, three other ambassador nominees -- to the U.K, France and Japan -- were also bundlers.

As we wrote then for context: Top campaign fundraisers have long gotten these plum posts in past administrations -- Democratic and Republican alike. And then-President-elect Obama, in a Jan. 9 press conference, said, "There probably will be some" ambassadors chosen who were top donors. "It would be disingenuous for me to suggest that there are not going to be some excellent public servants but who haven't come through the ranks of the civil service," Obama added.

Bios, per the White House:

Gips: Currently serves in the White House as Assistant to the President and Director for Presidential Personnel, per the White House. "Prior to serving in the White House, Gips helped lead then President-elect Obama's Presidential Transition Team as a Co-Chair for the Agency Review team," the release says. "From 1998-2008, Gips was Group Vice President of Global Corporate Development for Level 3 Communications, where he led merger and acquisition efforts and was the Chief Strategy Officer. Gips previously served in the White House as Chief Domestic Policy Advisor to Vice President Al Gore. Mr. Gips also was Chief of the International Bureau at the Federal Communications Commission where he was responsible for the WTO negotiations and all spectrum policy, and helped launch the Americorps Program at the Corporation for National Service. Before entering government, he was an Executive Manager at McKinsey & Company. Gips his MBA from the Yale School of Management and received his undergraduate degree from Harvard University." 

Jacobson: Currently serving as Special Assistant to the President for Presidential Personnel. Prior to serving in the White House, Mr. Jacobson spent 30 years gaining expertise in the areas of complex commercial, class action, securities, insurance and business litigation as a partner at the law firm Sonnenschein, Nath & Rosenthal LLP. While working as a partner at Sonnenschien, Mr. Jacobson also founded AtomWorks, an organization to bring together corporate, civic and academic leaders in order to foster nanotechnology in the Midwest. He also served as a member of CEOs for Cities, a national bipartisan alliance of 75 mayors, corporate executives, university presidents and nonprofit leaders organized to advance the economic competitiveness of cities. Mr. Jacobson received a J.D. from Georgetown University Law Center and was the Administrative Editor of the Georgetown Law Journal. He received his B.A. from Johns Hopkins University.

Avant: Serves as Vice President of Interior Music and Avant Garde Music Publishing. A business woman, philanthropist and activist, she has been recognized for her tireless efforts to mobilize the younger generation towards greater charitable and political involvement. She has worked as an academic counselor at The Neighborhood Academic Initiative, a USC mentorship program for high school students. Ms. Avant serves as a board member for the Bogart Pediatric Cancer Research Program, the Center for American Progress and Best Buddies, and was named one of the American Cancer Society Next Generation Leaders in 2007.

From NBC's Domenico Montanaro
The Senate Judiciary Committee posted the full Sotomayor Supreme Court questionnaire this afternoon. Here are the financial takeaways and what she listed as potential conflicts of interest:

Assets:
-- Net Worth: $740,053
-- Liabilities: $418,350
-- Cash liquid: $31,985
-- Total Real Estate: $1,017,500 (one house $997,500 and a $20,000 1/3rd shared interest in a condo.)
-- Total value of cars: $108,918

Video: The Senate Judiciary Committee has released Supreme Court nominee Sonia Sotomayor's 173 page judicial questionnaire detailing her speeches, cases and rulings. NBC's Kelly O'Donnell reports.

Debts:
-- Mortgage: $381,775
-- Credit Card debt: $15,823
-- Dentist bill: $15,000
 -- Accounts/Bills Due: $5,752

Potential conflicts of interest: "Actual or apparent conflicts of interest could arise from matters involving my longtime former client Fendi; attorney John Siffert or his firm, Lankler Siffert & Wohl LLP, with whom I taught a class at New York University Law School for a number of years; and Princeton University, for which I currently serve as a Trustee. In addition, actual or apparent conflicts could arise from matters involving close personal friends, some of whom are attorneys, or recently-departed law clerks. Finally, a conflict of interest would arise from any appeal arising from a decision issued by a panel of the Second Circuit that included me as a member."

Sotomayor represented Fendi in the 1980s. One event, attended by Carla Fendi herself, was something called the "Fendi Crush." It's aim: to expose those making Fendi knockoffs.

"Our aim is much like a drug operation," Sotomayor told the New York Times Nov. 11, 1986, as the the company's lawyer at Pavia & Harcourt. "We attempt to go after suppliers and secure information that leads back to the manufacturers. We go after U.S. retailers to the degree that we send cease-and-desist orders and request that they voluntarily cooperate and turn over the counterfeits. ... We have yet to meet a retail seller who admits 'I knew.' It is our position that if they had used a standard of diligence and compared them to a genuine Fendi, they would have known."

From NBC's Luke Russert
In his weekly press conference, House Minority Leader John Boehner (R-OH) came out swinging at prominent Democrats, specifically Speaker Nancy Pelosi (D-CA) and President Obama.

Boehner called on Pelosi to respond to his request for a bipartisan group to investigate whether or not the CIA lied to her in 2002 regarding America's use of enhanced interrogation techniques.

"Allowing this to hang out there is unconscionable, and I think the silence from Speaker Pelosi is deafening," Boehner said, adding, "The ball is in the speaker's court. She needs to bring up evidence to back up her claim."

Boehner proclaimed, "She believes that this is all just going to go away. Trust me, it's not going to away."

Boehner also was critical of President Obama's speech this morning in Cairo, saying that it was inappropriate for the President to suggest that Israelis and Palestinians share equal responsibility for the lack of a peace process.

"To put them in the same box, I am a bit concerned about that," Boehner said. "Hamas is a terrorist organization; they have been funded by the Syrians, and the Iranians, and I don't think the Israelis deserve to be put in the same category with terrorists."

On the issue of Iran, Boehner criticized President Obama's position that he would talk with Iran with no preconditions.

"He continues to say that he will sit down with Iran without any preconditions," he said. "I think that puts us in a position where America looks weak in the eyes of their rulers. And given the outrageous statements their leaders have made, I don't know how we can continue to sit down and talk to them without preconditions. I think it makes America look weak."

With regard to President Obama's comments in his speech about his desire to close the Guantanamo Bay prison, Boehner said, "He made clear today he wants to close Guantanamo without having a plan in place for what to do with the detainees that are there."

On the economy, Boehner repeatedly made the point that the actions of the Democratic Party were having a substantial negative impact on the American middle class.

"This is not what the American middle class expected when they voted for change," he said, addding, "The pattern here is pretty clear; every time the president makes a so-called 'tough decision,' it is the American middle class that gets hit the hardest."

From NBC's Mark Murray and Katelin Schartz
Here's the take from the Atlantic's Jeffery Goldberg, a well-respected observer of the Middle East. "An African-American President with Muslim roots stands before the Muslim world and defends the right of Jews to a nation of their own in their ancestral homeland, and then denounces in vociferous terms the evil of Holocaust denial, and right-wing Israelis go forth and complain that the President is unsympathetic to the housing needs of settlers. Incredible, just incredible."

MJ Rosenberg writing on Talking Points Memo: "Mission accomplished. For the first time in memory, an American President spoke to Muslims and Arabs not as antagonists who need to take certain actions before achieving US acceptance but as equals... Arab leaders who were listening to this speech might want to consider a similar speech of their own to their people. That is not going to happen. But they have to realize that this speech will significantly raise expectations among their own people. This is the kind of speech they have never heard before, and they will expect something like it, but from their own potentates next time." 

Al Rodgers from the liberal DailyKos site: Less than six months ago, Arabs threw shoes at George Bush.  Today, in a address bound to go down in history, President Obama was unexpectedly greeted by a standing ovation in the heart of the Arab-Muslim world. In a towering speech before 4,000 Egyptians in the Grand Hall of Cairo University, and to another 1.4 billion Muslims world-wide, the President was interrupted 30 times by applause and people shouting, 'we love you.'"

The conservative Hugh Hewitt: "The world is the worse for this speech because it was not honest about the situation in the Middle East, not honest about the threat from Iran, not honest about Israel's deep desire to be allowed to live in peace, and not honest about the determination of Hamas, Hezbollah and Iran to destroy Israel and to gain the weapons necessary to do so in an instant. No speech so deeply dishonest in its omissions or so rhetorically misleading its assumptions and arguments can do anything other than communicate extraordinary weakness on the part of the United States.  It will indeed be a famous speech, for all the wrong reasons."

Erick Erickson of RedState: This is perhaps one of the most disturbing parts of Barack Obama's speech to the muslim world. While insisting on the reality of the holocaust, something many muslims deny, Barack Obama puts the genocide of 6 million Jews in the same category of what has happened to the Palestinians — something largely inflicted on themselves through their suicide bombings, calls for the destruction of Israel, etc. He treats them as morally equivalent."

Rich Lowry of National Review Online: "I have to go back and read it carefully, so I reserve the right to extend and revise my remarks. But on the whole I thought it was pretty good and I basically agree with Max Boot's take here. Yes, there were many things about which to cavil, there were missed opportunities, and he betrayed the disturbing weakness of his policy in certain key areas, Iran foremost among them. But the speech was an act of diplomacy and as such, it inevitably was going to skate over some inconvenient truths and tilt its presentation in a way to try to make it more persuasive to its target audience. Fundamentally, Obama's goal was to tell the Muslim world, "We respect and value you, your religion and your civilization, and only ask that you don't hate us and murder us in return." Bush tried to deliver the same message over and over again. The difference with Obama is that people might actually be willing to listen."

From NBC's Domenico Montanaro
House Speaker Nancy Pelosi outlined House Democrats' top immediate priorities -- health care, energy and "fiscal responsibility."

She said she has asked Democratic Committee Chairs to come back to her with ways to cut waste, abuse and fraud. Pelosi didn't say what specifically she'd want cut or what's been proposed to be cut.
 
"Fiscal discipline is one of the key components of how we go forward," the speaker said at her weekly news conference.

Pelosi said she even brought up America's renewed effort at fiscal responsibility under President Obama -- and her leadership in the House -- during her congressional delegation to China. She said she also stressed human rights and climate change with the Chinese, adding that she was "pleased" by their initiatives on the climate change.

Fresh off her trip, Pelosi will be holding events today remembering when tanks rolled in Tiananmen Square, killing hundreds of demonstrators. It took place 20 years ago today.

Pelosi declined to comment on the ongoing controversy stemming from her comments on CIA briefings and interrogation memos.

But House Minority Leader John Boehner, in a later press conference, came out swinging, continuing to push the issue and again challenging Pelosi to bring forward evidence that she was lied to by the agency.

"The silence from the speaker is deafening," Boehner said, adding, "There's no evidence … She's made this outrageous claim and believes this will all just go away. … And I can assure you, it won't."

On other issues, Pelosi said the Senate may well go ahead of the House on health care, but the timeline is still to be determined; on energy, she said she's pleased with the progress made in committee; on the war supplemental, she said the final version has still not been settled. (The White House is pushing to get the $50 million in Guantanamo funding put back in. It was stripped out by Appropriations Committee Chairman David Obey.)

On President Obama's speech about U.S.-Muslim relations, she said he "made us all very proud."

From NBC's Ken Strickland
After being soundly rejected in its request for money to close the Gitmo prison, the Obama administration is back on Capitol Hill to give it another try. And so far, it's not going very well, according to sources.

Video: MSNBC's Richard Wolffe discusses the Senate's vote against Obama's request for money he would need to close the U.S. Detention Center at Guantanamo Bay.

Later yesterday afternoon, three senior administration officials from the National Security Council and the Justice Department made their case to a hastily called closed meeting of Senate Democrats. More administration officials are expected up here again today.

The exact details of how much money or what authority the administration seeks is unclear. But here's what I've been able to piece together: The emergency war-funding bill (a.k.a., "the supplemental") that's moving its way through Congress strictly prohibits ANY money from being used to bring GITMO detainees into the United States. That not only prohibits money given in the supplemental, but prohibits any other money already given to the administration from being transferred for the purpose of moving detainees.

The problem for the administration is that it appears it would like to move -- but not release -- some detainees to the U.S. for trial, either in federal courts or military commissions. But if Congress passes the war-funding bill, they would be prohibited from even doing that.

From NBC's Athena Jones

GIZA, Egypt -- The pyramids outside of Cairo boast tombs, camels and relics thousands of years old.

What about an image reminiscent of the 44th president? 

The great pyramid is one of the Seven Wonders of the World and during a brief stop here Thursday after delivering a major speech aimed at Muslims around the world, President Obama spotted another notable sight: a hieroglyphic that showed the face of a man with big ears.

Obama entered the tomb and saw it right away.

"That looks like me!" he said. "Look at those ears!"

Dr. Zahi Hawass, the secretary general of the supreme council of antiquities -- who played tour guide to Obama and his entourage -- went on to explain to the president, his Press Secretary Robert Gibbs and others the history of the tomb of Kar, who was a priest, a scholar and a judge.
 
A few moments later, when aides Rahm Emanuel, Valerie Jarrett, David Axelrod and Reggie Love descended into the tomb, Obama went back over and showed them the big-eared image, sparking laughs.

From NBC's Athena Jones

CAIRO, Egypt -- In a wide-ranging, nearly hour-long speech, President Obama called on the people of the United States and Muslims around the world to find common ground and to work together to combat extremism, to educate and to innovate.

Taking a page from his campaign playbook, the president called on young people to "reimagine" and "remake" the world, saying his faith in other people was what brought him to this center of Islamic culture.

During much-anticipated remarks delivered at Cairo University, the president touched on the own Muslim heritage -- his Kenyan family has Muslim roots -- and spoke of the need for America and the Muslim world to gain a better understanding of what they share.

Obama also addressed the issue of Middle East peace, restating America's commitment to Israel and its support for a two-state solution, while notably using the word "Palestine" and making perhaps his strongest statement yet about the need for Israel to stop building settlements in the occupied territories.

He mentioned the events of Sept 11th three times early in the speech to stress the need for more trust and understanding between the world's Muslims and America.

"So long as our relationship is defined by our differences, we will empower those who sow hatred rather than peace, and who promote conflict rather than the cooperation that can help all of our people achieve justice and prosperity," he said, calling for an end to a cycle of suspicion and discord.

"I have come here to Cairo to seek a new beginning between the United States and Muslims around the world; one based upon mutual interest and mutual respect; and one based upon the truth that America and Islam are not exclusive, and need not be in competition," he continued. "Instead, they overlap, and share common principles – principles of justice and progress; tolerance and the dignity of all human beings."

Obama spoke about ending the war in Iraq, engaging Iran -- repeating his belief that countries have a right to peaceful nuclear energy, American efforts in Afghanistan and Pakistan and issues like democracy, human rights and women's rights -- areas in where many countries in the region often fall short.

The packed auditorium erupted with applause repeatedly throughout the remarks, cheering when Secretary of State Hillary Clinton arrived moments before the speech began, applauding and shouting Obama's name when the president appeared on stage and even clapping for the sound check man who prepared the venue ahead of time.
 
The president, who appeared in front of six pairs of American and Egyptian flags standing side by side, spoke about innovations the Islamic world has provided, from algebra to poetry and quoted the Koran several times, along with the Talmud, the Bible and US presidents John Adams and Thomas Jefferson.

He reprised a theme that has shaped him as a public figure ever since the Democratic National Convention in 2004 when he said there is "not a liberal America and a conservative America -- there is the United States of America" -- a line meant to stress areas people have in common.

In that same speech, he began to try to bridge the divide between Muslims and non-Muslims, saying "if there's an Arab-American family being rounded up without benefit of an attorney or due process, that threatens my civil liberties. It is that fundamental belief -- it is that fundamental belief -- I am my brother's keeper, I am my sister's keeper -- that makes this country work."

In Cairo, he borrowed from that speech by using the phrase "out of the many, one" as he stressed the theme of common ground over and over again.

"Let there be no doubt: Islam is a part of America and I believe that America holds within her the truth that regardless of race, religion, or station in life, all of us share common aspirations – to live in peace and security; to get an education and to work with dignity; to love our families, our communities, and our God," he said. "These things we share. This is the hope of all humanity."

He drew applause and an 'Obama, I love you' when he quoted a verse from the Koran that condemned violence and at one point, Obama even used The Golden Rule -- 'Do unto others as you'd have them do unto you' (without mentioning it by name) -- to try to illustrate the importance of finding areas of shared interest.

Advisers took pains not to characterize the president's comments on the Israeli-Palestinian peace process as a "plan", instead saying he was calling on both sides to adhere to obligations that had already agreed to in earlier negotiations, such as halting the  building of Israeli settlements the Palestinians need to reduce violence and incitement -- points Obama has reiterated in recent weeks during meeting at the White House with Israeli Prime Minister Benjamin Netanyahu and with Palestinian Authority President Mahmoud Abbas.

"If we see this conflict only from one side or the other, then we will be blind to the truth: the only resolution is for the aspirations of both sides to be met through two states, where Israelis and Palestinians each live in peace and security," he said to applause.

Obama said America's bonds with Israel were "unbreakable" and said Palestinians should draw lessons from the non-violent quest for rights in the American Civil Rights movement and in similar fights in South Africa and South Asia.

In previewing the speech, Obama aides used rhetoric like "positive partnership" and  "deep engagement", while repeatedly stressing the idea that this speech was just one of many ongoing efforts to reach out to the Muslim world, including being the first president to use the word "Muslim" in an inaugural address, interview with Al Arabiya television -- the first interview he gave as president -- his Nowruz message marking the Iranian New Year and his speech in Turkey in April.

Senior adviser David Axelrod said Obama's goal was to repair "an undeniable breach between America and the Islamic world" but said that breach had been years in the making and would not be reversed overnight or even perhaps in one administration. He said Obama hoped to open up "avenues of understanding" so that small groups of extremists could no longer exploit mistrust of America to further anti-American ends.

Reaction
Many in the crowd, especially in the balcony, were young people -- including women wearing the traditional hijab covering.

Some in the balcony chanted "O-ba-ma" at the end of the speech. One young Cairo University student, 22-year-old Sarah Roshdy, said she was thrilled by the speech.

"He spoke (about) every issue we're concerned about," she said.

Outreach and preparation
The president has been talking about plans to deliver a major speech to the world's more than a billion Muslims world since the campaign and aides said he cast a wide net in drafting his remarks, talking with experts inside and outside of government in Washington and also made a point of consulting with Muslim-Americans about their views. He made revisions to the speech up until the last minute.

White House Press Secretary Robert Gibbs said the administration was using new and old forms of media to help get the president's speech to a wide audience. The State Department was set to put out free text messages of the speech in Arabic, Persian, Urdu, and English on www.america.gov/sms/html and the speech itself will be translated into 13 languages. It was being webcast simultaneously on www.whitehouse.gov and networks around the world planned to air the speech live.

The White House also planned to make speech excerpts and video translations available on YouTube, MySpace Twitter and Facebook, which Gibbs called the largest social network in Muslim countries, with nearly 20 million users.

Obama laid out several initiatives designed to help bridge the divide with the Muslim world, including supportfor  expanded literacy programs for girls, micro finance and scholarships and internships to bring Muslim students to America.

From NBC's Andrea Mitchell

People close to Nancy Reagan say Michelle Obama hit all the right grace notes at yesterday's White House lunch for the former first lady.

Most notably, Michelle brought out the Reagan china, which Nancy loved seeing, and made sure to decorate the table with her favorite flowers, peonies.

Mrs. Reagan told friends at a dinner in the Capitol last night that she was wowed by both President and Mrs. Obama and their hospitality.

She was toasted by a bipartisan group, including Democratic Sen. Dianne Feinstein, Republican leaders Mitch McConnell and John Boehner, Supreme Court Justice Clarence Thomas, and former Reagan speechwriter Peggy Noonan.

From NBC's Mark Murray
The reactions -- so far -- to President Obama's speech this morning have been both positive and negative.

Said Sen. John Kerry (D):

President Obama's blunt, honest address in Cairo was absolutely critical in signaling a new era of understanding with Muslim communities worldwide. He shattered stereotypes on both sides, reminded the west and the Muslim world of our responsibilities, and reaffirmed one of America's highest ideals and traditional roles -- that those who seek freedom and democracy, Muslim and non-Muslim alike, have no greater friend than the United States of America.

Added Sen. Russ Feingold (D):

"The president's historic speech was delivered with the kind of honesty and boldness needed to help secure a more peaceful and secure future.  Though it emphasized broader themes more than specific steps, it was precisely the kind of public diplomacy that must be a greater part of our national security strategy. 

The Republican Jewish Coalition's Matthew Brooks:

President Barack Obama, in his major speech in Cairo this morning, struck a balanced tone with regard to the Israeli-Palestinian conflict, and that's what was wrong with this speech. American policy should not be balanced - it should side with those who fight terror, not those who either engage in it or are too weak to prevent it. This conflict will not reach a peaceful conclusion until the Palestinians put an end to terrorism, violence, and incitement against Israel.

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** Breaking down the speech: In his much-anticipated, wide-ranging address from Cairo this morning, President Obama called for a "new beginning" between the United States and the Muslim world, urging the two "to listen to each other, to learn from each other, to respect one another, and to seek common ground." There wasn't much new from Obama in the speech; in fact, George W. Bush said some very similar things when he was president. The problem for the former president, however, was that there wasn't much follow-through from his administration. And that also will be the challenge for Obama. As Secretary of State Hillary Clinton told reporters this morning, "[Obama] set forth a clear challenge to us and all in the world who share hope for peace and security. Now we have to get to work to translate that into concrete action." In other words, the speech was the easy part…

Video: President Obama delivers an address to the Muslim world from Cairo, Egypt.

*** Words for Americans and Muslims: Still, his address was classic Obama: It was nuanced and called for an honest discussion about the circumstances that currently divide Christians, Jews, and Muslims. "As the Holy Koran tells us, 'Be conscious of God and speak always the truth.' That is what I will try to do -- to speak the truth as best I can." The first part of his speech was directed more at Americans than at the world, making the case why Islam is a peaceful religion. "Partnership between America and Islam must be based on what Islam is, not what it isn't." But Obama then contended that the Muslim world needed to stop its stereotypes about the United States. "Just as Muslims do not fit a crude stereotype, America is not the crude stereotype of a self-interested empire."

*** Opposing violent extremism: Also in the speech, Obama maintained that the global world demanded partnership and shared progress. But he argued that the world can't ignore current conflicts, and he devoted the rest of his speech to addressing the thorny issues the world "must finally confront together." The first one he touched on was combating violent extremism and Al Qaeda. "The Holy Koran teaches that whoever kills an innocent, it is as if he has killed all mankind; and whoever saves a person, it is as if he has saved all mankind… Islam is not part of the problem in combating violent extremism -- it is an important part of promoting peace." The president also mentioned the situation in Afghanistan, the war in Iraq (saying it was a reminder of the need to use diplomacy and international consensus), and his calls for ending torture and the prison at Guantanamo Bay.

*** Israel and Palestine: That's right we wrote the word "Palestine," something American presidents usually don't utter. But Obama said the word -- twice. (*** UPDATE *** NBC's Andrea Mitchell points out that Bush 43, in his first UN speech, made a very big deal about using the term Palestine, and it was a big story at the time.) When Obama turned to the intractable Israel-Palestinian conflict, you could almost feel the tension in the room, per one of us who was there. The president once again calling for a two-state solution. He offered empathy and criticism to both sides. For Israelis, he said that the bond between the U.S. and Israel was "unbreakable," and he denounced those who still deny the Holocaust. But he also talked about how Palestinians have suffered in pursuit of their own homeland, said that his government doesn't accept "the legitimacy" of Israeli settlements. "If we see this conflict only from one side or the other, then we will be blind to the truth," he said. "The only resolution is for the aspirations of both sides to be met through two states, where Israelis and Palestinians each live in peace and security." Drawing on history of the civil-rights movement in the United States and the anti-apartheid crusade in South Africa, Obama also contended that continued violence -- on both sides -- won't solve the conflict. "That is not how moral authority is claimed; that is how it is surrendered."

*** Iran, democracy, religious freedom, women's rights: Next, Obama addressed Iran's pursuit of nuclear weapons, saying that the U.S. wants to prevent a Middle East arms race, but that all nations -- including Iran -- should be able to have the right to peaceful nuclear power. He called for democracy around the globe, claiming that governments that promote free speech, equal application of justice, transparency, and human rights for all its citizens are "more stable, successful, and secure." He also touched on religious freedom, women's rights in the Muslim world ("Our daughters can contribute just as much to society as our sons"), and economic development.

*** "Our work here on Earth": The president concluded his remarks by saying that achieving those goals won't be easy -- and that dwelling on the past certainly won't help the world meet them. "All of us share this world for but a brief moment in time," he said. "The question is whether we spend that time focused on what pushes us apart, or whether we commit ourselves to an effort -- a sustained effort -- to find common ground, to focus on the future we seek for our children, and to respect the dignity of all human beings." He then quoted passages from the Koran, the Talmud, and the Bible that spoke of peace and common bonds. "We have the power to make the world we seek, but only if we have the courage to make a new beginning… The people of the world can live together in peace. We know that is God's vision. Now, that must be our work here on Earth."

*** The rest of Obama's day: After his speech, the president attended a lunch and roundtable with Egyptian reporters, and then began a tour of the pyramids. He departs for Dresden, Germany at 11:05 am ET, arriving there at 2:50 pm. One other observation about Obama's speech: For those that wonder why it didn't have the normal amount of Obama flourishes they've become accustomed to, realize that the speech was being translated into 13 different languages and translating a flourish from English to Farsi, for instance, doesn't compute. Obama's words had to be less flowery for English and more straight-forward in order to make the translations have similar meaning.

*** Sotomayor's day: Another day, another round of Sotomayor courtesy calls on Capitol Hill. The Supreme Court nominee meets with New Jersey Democratic Sen. Bob Menendez (at 11:15 am ET), Minnesota Democratic Sen. Amy Klobuchar (at 12:15 pm), Texas GOP Sen. John Cornyn (1:00 pm), and Delaware Democratic Sen. Ted Kaufman (at 4:15 pm). Also today, apparently seeking to capitalize on some the conservative rhetoric aimed at Sotomayor, Senate Majority Leader Harry Reid holds a press conference with Latino leaders from the National Council of La Raza, the National Hispanic Bar Association, and the Mexican American Legal Defense and Educational Fund.

*** Yes, Virginia, there is a race: A week ago, the Conventional Wisdom was that Terry McAuliffe was clearly ahead in Virginia's three-way Democratic gubernatorial primary against Creigh Deeds and Brian Moran. But with just five days until Primary Day, that no longer appears to be the case. The Pollster.com aggregate has Deeds at 27.4%, McAuliffe at 25.3%, and Moran at 21.9%. Translation: This contest may very well be a jump ball, especially since no one knows who will turn out. In particular, analysts believe Deeds is surging after picking up the Washington Post's endorsement. As for McAuliffe, he has the advantage in money and has focused like a laser on the economy. But some Virginia political experts, like Larry Sabato at the University of Virginia, wonder whether the issue of electability -- which played an important role in the '06 Dem primary that Jim Webb won -- could be dragging down McAuliffe. "There's a nagging belief, if you talk to Democrats, that McAuliffe can't win" in November against Republican Bob McDonnell, Sabato tells First Read. But McAuliffe adviser Mo Elleithee disagrees, arguing that the Macker's fundraising ability, his organization, and his business experience make him the most electable Democrat. "The general election is going to be about who can create jobs for Virginia," Elleithee says. "When we put Terry's background up against Bob McDonnell's, the choice couldn't be any more clear."

Countdown to VA Dem primary: 5 days
Countdown to Election Day 2009: 152 days
Countdown to Election Day 2010: 516 days

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"Quoting from the Quran for emphasis, President Barack Obama called for a 'new beginning between the United States and Muslims' Thursday and said together, they could confront violent extremism across the globe and advance the timeless search for peace in the Middle East. 'This cycle of suspicion and discord must end,' Obama said in a widely anticipated speech in one of the world's largest Muslim countries, an address designed to reframe relations after the terrorist attacks of Sept. 11, 2001, and the U.S.-led war in Iraq."

Video: Obama addresses the Muslim world 

Politico: "The 55-minute speech was remarkable and historic not so much for the delivery or even the words, but for the context, the orator, the moment. Obama included blunt talk about the U.S. , Israel, Iraq, his predecessor and al Qaeda."

According to the New York Times, "Some of Mr. Obama's language drew appreciative applause from his audience at Cairo University as he delivered a sweeping message that was forceful — and at times scolding — promoting democracy in Egypt, warning Israelis against building new settlements, and acknowledging that the United States had fallen short of its ideals, particularly in the Iraq war."

The Washington Post: "Even as Obama spoke, however, the Arab satellite network al-Jazeera aired new excerpts of an audiotape message issued yesterday by al-Qaeda leader Osama bin Laden, urging Muslims to 'brace yourselves for a long war against the world's infidels and their agents.'" 

From Cairo, NBC's Tom Aspell previewed Obama's speech: "Egyptians are immensely proud that President Barack Obama has chosen Cairo University as the site for his speech addressing the world's 1.5 billion Muslims on Thursday. They see it as a gesture of respect, and an acknowledgement that their capital is the seat of Islamic-Arab culture. Workmen cleaned the university's gates this week as students hurried across the manicured campus. Final exams are only days away, yet the talk was all about the American president's visit."

Per the New York Daily News, "The White House tried to ease Israeli concerns over President Obama's fence-mending speech Thursday to the Muslim world, insisting he remains loyal to the strong U.S. relationship with the Jewish state. In an e-mail sent to some Jewish groups and the U.S.-based lobby for Israel, the White House insisted Obama's outreach to the mainstream Muslim majority is no threat to relations with its key Mideast ally."

Covering Obama's day yesterday, the New York Post, of course, finds the most smiley picture of Obama with the Saudi King that it can to put on its cover. Headline: "The King and O."

The Boston Globe leads Obama's letter to Sens. Baucus and Kennedy on health care: "Laying out in the clearest terms yet what he wants in a healthcare overhaul, President Obama told Congress yesterday that he strongly believes Americans should have the choice of a new public health insurance plan that would compete against private insurers."

The AP: "President Barack Obama says he's open to requiring all Americans to buy health insurance, as long as the plan provides a 'hardship waiver' to exempt poor people from having to pay. Obama opposed such an individual mandate during his campaign, but Congress increasingly is moving to embrace the idea."

Politico writes, "Obama's promises of change are falling short for one core Democratic constituency: gays and lesbians, whose leaders say Obama's administration isn't keeping up with the times… His most important campaign promises repealing the Defense of Marriage Act and the military ban on openly gay and lesbian service-members have not been fulfilled. And the news, which emerged quietly earlier this year, that he'd supported same-sex marriage back in 1996, then changed his mind, especially rankles. As mainstream Democratic politicians such as Sen. Chuck Schumer (D-N.Y.) move to support same-sex marriage, gay rights advocates say that the barrier-breaking president looks increasingly odd for opposing what they see as full equality."

Speaking of… "New Hampshire became the fifth state in New England yesterday and the sixth in the country to allow same-sex marriage, as lawmakers approved and the governor signed revised legislation designed to balance personal and religious freedom," the Boston Globe says.

The Washington Post looks at Sonia Sotomayor's early career as a prosecutor. "The five years Sotomayor spent in the Manhattan district attorney's office, say several friends and colleagues, shaped her as a criminal prosecutor and helped form her worldview as a judge. The experience, combined with her later years as a trial judge, would make her unique among her new colleagues at the Supreme Court should she be confirmed and would bring a firsthand exposure to the court's consideration of criminal procedure and sentencing."

"Sotomayor - who made her first series of courtesy calls yesterday to Senate leaders and members of the Senate Judiciary Committee and has more scheduled today - won plaudits for what senators in both parties described as her intellect and energy," The Boston Globe writes. "But while Democrats urged swift confirmation of the woman who would become the high court's first Hispanic justice, Republicans said they want more time to review Sotomayor's 17 years as a federal judge and more of an explanation of her views on equality under the law."

Roll Call:

"Sen. Lindsey Graham (S.C.) has emerged as the GOP's leading critic of Supreme Court nominee Sonia Sotomayor, arguing that Republican Senate opposition to her installment should be expected given how President Barack Obama treated former President George W. Bush's high court picks… Although Graham said he would not use the word racist to describe Sotomayor, he indicated that her past statements raise concerns that, as a Supreme Court justice, she may not treat white males fairly. 'Being an average, everyday white guy, that doesn't exactly make me feel good,' Graham said."

"House Democrats on Wednesday tried to neutralize a months-long Republican attack on senior Democratic appropriators' ties to the now-defunct lobbying firm PMA Group by calling on the ethics committee to disclose whether it is investigating the matter," Roll Call says.

Per the AP, House Republicans are proposing $23 billion in cuts, a response to "a White House tiff between Obama and House GOP Whip Eric Cantor of Virginia."

"House Speaker Nancy Pelosi on Wednesday issued an ultimatum to her committee chairmen: move climate change legislation by June 19 or risk losing jurisdiction over the bill," The Hill writes. "By imposing the deadline, Pelosi (D-Calif.) is asserting her authority over Ways and Means Committee Chairman Charles Rangel (D-N.Y.) and Agriculture Committee Chairman Collin Peterson (D-Minn.), among others, in an effort to unhinge her signature issue, which has been mired in intra-party politics."

VIRGINIA: Brian "Moran, trailing his two rivals in polls, went on the offensive with direct attacks on former Democratic National Committee Chairman Terry McAuliffe and state Sen. Creigh Deeds in an interview sponsored by ABC 7/WJLA-TV, POLITICO, Google and YouTube," Politico writes. "Playing to his party's liberal base in vote-rich Northern Virginia, where the interview aired Wednesday night, Moran highlighted his opposition to offshore oil drilling, voiced support for stricter gun laws and reiterated his opposition to the state's constitutional amendment banning gay marriage."

From NBC's Mary Murray
HAVANA, CUBA -- There's no immediate reaction today from the Castro government to the Organization of American States vote that revoked the 1962 measure that suspended the Cuban government from holding active membership in the regional organization.

However, recent public statements indicate that Havana holds little interest in rejoining the organization, but clearly supports the move that wipes the suspension off the books.

Last Tuesday, the Granma newspaper (local press) quoted Cuba's Foreign Minister, Bruno Rodriguez, dismissing the idea of rejoining the OAS: "One way or another, the OAS is totally anachronistic; it serves other interests, and we feel that our past, Cuba's past, is one of Latin American and Caribbean integration, without a presence from outside the continent…."

Retired president Fidel Castro has written a number of blogs recently criticizing the historic role of the OAS in isolating Cuba and "following" Washington's lead on many regional issues. Today's blog, entitled "The Trojan Horse," Castro applauds the Latin American unity he sees as implicit in the vote, but reiterates the notion that the organization is obsolete: "Having waged this battle is in itself a heroic deed of those who are the most rebellious. The date of June 2, 2009 will be remembered by future generations... The OAS was an accomplice to all the crimes committed against Cuba…."

Sources tell NBC News that tonight's Mesa Redonda (Cuba's early evening talk show) will be on the OAS and may carry an official reaction.

From NBC's Katelin Schartz
It's 1,252 days until Election Day 2012. But in American politics, it's never too early to try to see who's up and who's down.

According to a recent CNN/Opinion Research poll, the Republican race for 2012 is a dead heat, with no distinguishable front-runner. The poll shows that 22% of Republicans would support former Arkansas Gov. Mike Huckabee for the party's nod, 21% would throw their support behind Alaska Gov. Sarah Palin, and another 21% would pick former Massachusetts Gov. Mitt Romney.

Also in the poll, Newt Gingrich got 13%, and Jeb Bush got 6%.

From NBC's Scott Foster
RIYADH, SAUDI ARABIA -- White House officials are claiming the bin Laden message aired today on Al Jazeera is proof al Qaeda feels threatened by the President's outreach to the Muslim world.

A senior administration official noted yesterday's release of a Zawahiri tape, along with today's new tape, explaining, "You wouldn't see two videos this close together if they thought this was going well."

From NBC's Domenico Montanaro
President Obama issued a public letter to Sens. Ted Kennedy and Max Baucus, the two Democrats seen as most key to the design of potential health-care legislation.

In the letter, the president sets the ambitious timeline of having health-care reform passed by October.

It also gives the appearance that Democrats are all on the same page. Earlier in the week, the narrative was building that there was some disagreement between Kennedy and Baucus factions on how health care should be dealt with.

Obama also expresses explicit support for a public health insurance option in the letter and calls on Republicans to jump on board.

"I strongly believe that Americans should have the choice of a public health-insurance option operating alongside private plans," Obama writes. "This will give them a better range of choices, make the health care market more competitive, and keep insurance companies honest."

He concludes, "I know that you have reached out to Republican colleagues, as I have, and that you have worked hard to reach a bipartisan consensus about many of these issues. I remain hopeful that many Republicans will join us in enacting this historic legislation that will lower health care costs for families, businesses, and governments, and improve the lives of millions of Americans. So, I appreciate your efforts, and look forward to working with you so that the Congress can complete health care reform by October."

Full letter below:

June 2, 2009

The Honorable Edward M. Kennedy

The Honorable Max Baucus
United States Senate
Washington, D.C. 20510

Dear Senator Kennedy and Senator Baucus:

The meeting that we held today was very productive and I want to commend you for your leadership -- and the hard work your Committees are doing on health care reform, one of the most urgent and important challenges confronting us as a Nation.

In 2009, health care reform is not a luxury. It's a necessity we cannot defer. Soaring health care costs make our current course unsustainable. It is unsustainable for our families, whose spiraling premiums and out-of-pocket expenses are pushing them into bankruptcy and forcing them to go without the checkups and prescriptions they need. It is unsustainable for businesses, forcing more and more of them to choose between keeping their doors open or covering their workers. And the ever-increasing cost of Medicare and Medicaid are among the main drivers of enormous budget deficits that are threatening our economic future.

In short, the status quo is broken, and pouring money into a broken system only perpetuates its inefficiencies. Doing nothing would only put our entire health care system at risk. Without meaningful reform, one fifth of our economy is projected to be tied up in our health care system in 10 years; millions more Americans are expected to go without insurance; and outside of what they are receiving for health care, workers are projected to see their take-home pay actually fall over time.

We simply cannot afford to postpone health care reform any longer. This recognition has led an unprecedented coalition to emerge on behalf of reform -- hospitals, physicians, and health insurers, labor and business, Democrats and Republicans. These groups, adversaries in past efforts, are now standing as partners on the same side of this debate.

At this historic juncture, we share the goal of quality, affordable health care for all Americans. But I want to stress that reform cannot mean focusing on expanded coverage alone. Indeed, without a serious, sustained effort to reduce the growth rate of health care costs, affordable health care coverage will remain out of reach. So we must attack the root causes of the inflation in health care. That means promoting the best practices, not simply the most expensive. We should ask why places like the Mayo Clinic in Minnesota, the Cleveland Clinic in Ohio, and other institutions can offer the highest quality care at costs well below the national norm. We need to learn from their successes and replicate those best practices across our country. That's how we can achieve reform that preserves and strengthens what's best about our health care system, while fixing what is broken.

The plans you are discussing embody my core belief that Americans should have better choices for health insurance, building on the principle that if they like the coverage they have now, they can keep it, while seeing their costs lowered as our reforms take hold. But for those who don't have such options, I agree that we should create a health insurance exchange market where Americans can one-stop shop for a health care plan, compare benefits and prices, and choose the plan that's best for them, in the same way that Members of Congress and their families can. None of these plans should deny coverage on the basis of a preexisting condition, and all of these plans should include an affordable basic benefit package that includes prevention, and protection against catastrophic costs. I strongly believe that Americans should have the choice of a public health insurance option operating alongside private plans. This will give them a better range of choices, make the health care market more competitive, and keep insurance companies honest.

I understand the Committees are moving towards a principle of shared responsibility -- making every American responsible for having health insurance coverage, and asking that employers share in the cost. I share the goal of ending lapses and gaps in coverage that make us less healthy and drive up everyone's costs, and I am open to your ideas on shared responsibility. But I believe if we are going to make people responsible for owning health insurance, we must make health care affordable. If we do end up with a system where people are responsible for their own insurance, we need to provide a hardship waiver to exempt Americans who cannot afford it. In addition, while I believe that employers have a responsibility to support health insurance for their employees, small businesses face a number of special challenges in affording health benefits and should be exempted.

Health care reform must not add to our deficits over the next 10 years -- it must be at least deficit neutral and put America on a path to reducing its deficit over time. To fulfill this promise, I have set aside $635 billion in a health reserve fund as a down payment on reform. This reserve fund includes a number of proposals to cut spending by $309 billion over
10 years --reducing overpayments to Medicare Advantage private insurers; strengthening Medicare and Medicaid payment accuracy by cutting waste, fraud and abuse; improving care for Medicare patients after hospitalizations; and encouraging physicians to form "accountable care organizations" to improve the quality of care for Medicare patients. The reserve fund also includes a proposal to limit the tax rate at which high-income taxpayers can take itemized deductions to 28 percent, which, together with other steps to close loopholes, would raise $326 billion over 10 years.

I am committed to working with the Congress to fully offset the cost of health care reform by reducing Medicare and Medicaid spending by another $200 to $300 billion over the next 10 years, and by enacting appropriate proposals to generate additional revenues. These savings will come not only by adopting new technologies and addressing the vastly different costs of care, but from going after the key drivers of skyrocketing health care costs, including unmanaged chronic diseases, duplicated tests, and unnecessary hospital readmissions.

To identify and achieve additional savings, I am also open to your ideas about giving special consideration to the recommendations of the Medicare Payment Advisory Commission (MedPAC), a commission created by a Republican Congress. Under this approach, MedPAC's recommendations on cost reductions would be adopted unless opposed by a joint resolution of the Congress. This is similar to a process that has been used effectively by a commission charged with closing military bases, and could be a valuable tool to help achieve health care reform in a fiscally responsible way.

These are some of the issues I look forward to discussing with you in greater detail in the weeks and months ahead. But this year, we must do more than discuss. We must act. The American people and America's future demand it.

I know that you have reached out to Republican colleagues, as I have, and that you have worked hard to reach a bipartisan consensus about many of these issues. I remain hopeful that many Republicans will join us in enacting this historic legislation that will lower health care costs for families, businesses, and governments, and improve the lives of millions of Americans. So, I appreciate your efforts, and look forward to working with you so that the Congress can complete health care reform by October.

Sincerely,
BARACK OBAMA

From NBC's Danielle Weisberg
In a break with a usual silent tradition for Supreme Court appointees, Sonia Sotomayor spoke animatedly in an appearance with Sen. Barbara Mikulski (D-MD) this morning. Not on recent GOP attacks, nor on the question of being a judicial activist, but rather to highlight her unique personal story, which began with a love for the law through Nancy Drew books, she said.

"When I started reading," Sotomayor began, "and that was when I went to a local public school, the librarian there gave me my first Nancy Drew book. ... I would start waiting with great anticipation, but mine was a local branch, and they didn't get the new one right away. So that's when mom began to buy them for me, because she saw how enamored I was."

Mikulski ticked off additional commonalities with the judge -- besides Nancy Drew.

"We both went to the same kind of schools -- the nuns, very strong mothers," Mikulski said. "My father lived to see me come to Congress which I'm sure your father would so cherish seeing you graduate."

When asked for a response to former House Speaker Newt Gingrich's recent retraction of comments, in which he called Sotomayor a racist, Mikulski said, "We're not going to let loose lips sink this ship."

Apologizing for keeping Sotomayor waiting, Mikulski joked, "I was in a traffic jam. It was worse than a filibuster." 

From NBC's Luke Russert and Domenico Montanaro
In his weekly off-camera briefing with reporters House Majority Leader Steny Hoyer (D-MD) said House Democratic leadership will move bills along at a quick pace for the rest of the summer, as President Obama wants to continue to push several big-ticket items. 

On healthcare and energy reform: Hoyer said that President Obama, as well as the Democratic leadership, want to "accomplish both of these issues prior to the August break." However, Hoyer went on to say that there is no specific deadline to pass health care or energy reform at this time.

On which bill will be voted on first, Hoyer said that whatever bill goes to the floor first will be based on which one can get out of committee the quickest. Hoyer reiterated that the Democratic leadership does not want to pass one ahead of the other and quite simply that "the scheduling of these bills will be based on the progress made in committee."

An important thing to note is that the energy reform bill has already started to go through the "mark-up" process, as opposed to the health-care bill, which is still being drawn up. Hence, the energy bill at this point is further along.

On the government takeover of GM: "I think this is Congress' view on both sides of the aisle and that is that this is not something that Congress would have chosen to do." Hoyer then stated that it was a reactionary measure taken in response to the ongoing U.S. financial crisis.

"We have not created a specific oversight for the automobile issue at this point and time," Hoyer said, going on to reiterate the Obama administration's position that the government has no interest in the day-to-day operations of General Motors.

Hoyer then said the government takeover of GM was a "short-lived position" and part of a "broad discretion used to meet the economic crisis."

On the upcoming war-funding bill: Recently House Republicans have said they will vote against the war-funding bill for Iraq and Afghanistan if it contains the $5 billion that the White House wants for the International Monetary Fund. 

"I hope that we have the votes," Hoyer said. "Previous Republican administrations have supported the IMF, and I hope it goes forward."

From NBC's Carl Sears
In the Capitol Rotunda today, former First Lady Nancy Reagan attended the unveiling of the bronze statue of her husband, former President Ronald Reagan. Dignitaries included House Speaker Nancy Pelosi and Majority Leader Harry Reid, GOP congressional leaders Mitch McConnell and John Boehner, former Secretary of State James Baker, and several hundred invited members of Congress and friends of the Reagans.

Mrs. Reagan, accepting the warm welcome from various speakers for the strength she gave Ronald Reagan, was deeply moved and spoke softly. "The statue is a wonderful likeness of Ronnie, and he would be so proud (she paused to cover her heart)... You know the last time I was here was for Ronnie's service, so it's nice to be back under happier circumstances... I want to thank everyone for being here." 

Mrs. Reagan said she especially wanted to thank Pelosi for organizing the ceremony and unveiling. Earlier, the speaker had said, "President Reagan and Mrs. Reagan had one of the great love stories of all time... Mrs. Reagan, with your presence here today, I hope we honor you not only for your support for the president, but for your support for stem-cell research that has ... given hope [to so many]."

From NBC's Libby Leist
Hillary Clinton's deputy Jim Steinberg was in South Korea today for meetings on North Korea. Speaking to reporters, Steinberg said the U.S. is focused on maintaining a "common approach" with the regional allies -- Japan, South Korea, China and Russia -- as they respond to the recent North Korean nuclear test and missile launches, as well as any crises that arise from the apparent succession underway in North Korea.

"We recognize that there are events that may be taking place there," he said, "but what we focus on is how we can continue to work together to make sure that no matter what happens in North Korea, that we have a common approach."

Steinberg also reaffirmed U.S. security commitments to South Korea. His next stop on the trip is Beijing June 5.

Meanwhile, discussions at the United Nations are still underway to produce a resolution condemning the nuclear test and missile launch. Steinberg would not talk about what financial sanctions might be included in that resolution.