Return to Transcripts main page
CNN Newsroom
Dow Numbers Shining Light on the Nation's Dim Financial System; Zimbabwe Brought to its Knee; United States' Relationship with North Korea Changed
Aired October 13, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: World financial markets show a spark overnight, but will that spark help ignite U.S. markets. The big board lights up in 30 minutes. We have got our eyes on Wall Street. And check the calendar, three weeks, one day and plenty of ground to cover the candidates taking their campaigns to the battleground states. We are on the trail.
Plus, fire and ice, battling one and playing in the other.
Good morning, everybody. I'm Heidi Collins. It's Monday, October 13th. You are in the CNN NEWSROOM.
Your money on this Monday morning, overseas markets are rallying back this hour. Trading from Europe to Asia looking a whole lot different today. The reason? An unprecedented global effort that shows just how worrisome things really are.
Over the weekend, governments around the world banded together to try and get a grip on the deepening financial crisis. Optimism running high on Wall Street, so are U.S. stock futures. Things are looking up as Wall Street gets ready to open at the bottom of the hour.
So we have the CNN money team standing by, of course, to bring you all of the latest in this volatile economy.
CNN's Paula Newton is in the London this morning and Christine Romans is in New York.
Let's begin with you, Christine. Look at the big picture for us. Things could look a whole lot different even though it is a Monday, right?
CHRISTINE ROMANS, CNN CORRESPONDENT: That's right. Well, the Dow futures are showing maybe 360 points on the up side in the very early going. And keep in mind, a 360-point rally in the Dow if it were to happen in 29 minutes or so here would be just about a little over a third of the entire range of the Dow on Friday.
Friday was such a wild day, so a bounce expected today based on the performance of those Asian markets and then the follow-through that we were seeing in Europe.
And why? Well, there's a feeling that global policymakers are doing absolutely everything they can. Over the weekend and again and again you heard global central bankers and presidents and global officials saying this is what they're doing to fight this fire.
The U.S. may actually be buying stakes in banks. We started to hear this late last week. It looks like that's on the books here. That's -- looks like what the U.S. is going to do and that's something that a lot of economists were saying is needed at this point.
The Fed is offering unlimited cash to three central banks -- the Bank of England, the ECB and the Swiss Central Bank, and then that will allow those central banks to loan the money out to banks and private institutions and that's all part of getting this frozen credit market thawed.
The UK is investing $63 billion in three British banks so pumping a bunch of money into the system this morning. And then over the weekend, an emergency meeting of European leaders where Europe is moving to protect bank depositors and guaranteeing lending between banks.
All incredibly important, this whole idea of restoring confidence. You know you can't buy confidence...
COLLINS: Yes.
ROMANS: But I'll tell you, a lot of people certainly are trying to. Now we're looking for this rally today, Heidi, I think it's really important to put it in perspective. The Dow last week had an absolutely miserable week. We were all here, we all witnessed this.
The Dow down 18 percent last week. The NASDAQ down...
COLLINS: Yes, in just one week.
ROMANS: In just one week and -- some of these global markets are down a third to a half just this year, lost half of their value, like the Hang Seng and also almost -- the Japanese market almost -- cut almost in half, I think, 45 percent this year.
So the losses have been so steep that we need to put any kind of a bounce into that perspective, I think.
COLLINS: Yes. Well, that's for sure. And we are going to be watching today because everybody is wanting a little bit of good news...
ROMANS: That's right.
COLLINS: ... any way that we can get it.
Christine Romans in New York for us this morning. Thank you, Christine.
ROMANS: You're welcome.
COLLINS: So this morning a progress report on the bailout plan and your $700 billion that's funding it. Just last hour, we heard from Neel Kashkari who's overseeing the rescue plan. He told the Institute of International Bankers guidelines are now being developed for the buying of bad assets from banks.
(BEGIN VIDEO CLIP)
NEEL KASHKARI, ASST. TREASURY SECRETARY: Treasury is implementing its new authorities with one simple goal -- to restore capital flows to the consumers and businesses that form the core of our economy.
Achieving this goal will require multiple tools to help financial institutions remove illiquid assets from their balance sheets as well as attracting both private and public capital.
Our tool kit is being designed to help financial institutions of all sizes so they can grow stronger and provide crucial funding to our economy.
(END VIDEO CLIP)
COLLINS: Kashkari also said he's consulting with legal experts now on how the government will take partial ownership of troubled banks. He offered few details on how the overall rescue plan will actually be carried out.
Optimism overseas. World markets are up this morning. Investors, apparently, feeling pretty good about weekend efforts by world leaders and they are scrambling to stabilize their own financial system and diffuse the threat of a global recession.
CNN's Paul Newton is watching the world markets from London this morning.
Good morning to you there, Paula.
PAULA NEWTON, CNN CORRESPONDENT: And good morning, Heidi. You know we've really been lucky to hang on to the gains that we've had today. European markets broadly up. Why? Because all the governments have moved in to do what Christine was saying, which was shore up those national banks, either taking stakes in them on a marginal sense or in some cases, outright nationalization.
And believe me, a lot of people around here are saying, can you believe it? Can you believe the government is taking stakes in these banks?
You know Christine said, Heidi, that we're buying confidence on this trading floor. Look, they know it's coming at a big price, Heidi, although we are seeing some type of a relief rally going on here.
These people behind me feel hung over. They're going to try to hang on to the gains throughout the day. They're actually anxiously waiting to see what happens to the Dow when it opens at 9:30. As Christine was saying, we are expecting a little bit of a bounce. What we're looking, though, for, Heidi, is a very complicated week. Nobody should be under any illusion that the worst of this is over.
And in terms of the market reacting in the mood I'm seeing here is not as buoyant as one would expect. And that's really what we're going to be keeping an eye on.
You know we were just talking about that tool kit having to be remade. A lot of people are wondering if that is really going to cut it, how long that's going to take and how long it is before you and I actually see the benefits of that.
COLLINS: Yes, a lot of people certainly asking that question. And we also heard over the weekend that British prime minister, Gordon Brown, saying actually the first financial crisis of the global age. I mean those are some pretty profound words.
We sure do appreciate. CNN"s Paula Newton in London this morning, thanks a lot.
A new banking giant is born. The Federal Reserve board has approved Wells Fargo's multibillion dollar acquisition of Wachovia. The buyout must still be approved, of course, by Wells Fargo shareholders.
And less than two weeks since the deal was first announced, Wachovia shares lost more than a fourth of their value. And that alone shaves $4 billion off the value of this merger.
We are waiting for the open of Wall Street where U.S. futures are pointing to a higher start as we have mentioned here. Opening bell just a few minutes away at the bottom of the hour. We're going to go there live, of course, as the new trading day begins.
Gas prices keep going down. The average price for regular unleaded now just under $3.21 a gallon. That is down a little more than four cents from just the day before. And it's the 26th day in a row, in fact, that prices have dropped.
On the campaign trail, today they are stumping in four different states. Next hour Joe Biden will be in Rochester, New Hampshire. John McCain and Sarah Palin have a rally in Virginia Beach during the 11:00 hour. And McCain then heads to South Carolina. Barack Obama addresses a rally in Toledo, Ohio in the early afternoon.
After the GOP ticket hangs out together this morning, Sarah Palin is on her own for an afternoon rally in Richmond. And that's where we find our Ed Henry right now.
So, Ed, why are both John McCain and Sarah Palin in Virginia together?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Heidi. That's really the question of the hour and it tells you all you really know about the state of this race right now.
John McCain and Sarah Palin in Virginia Beach this morning and as you mentioned Sarah Palin coming here to the Richmond Speedway where they do a lot of cash races, NASCAR and the like.
And the bottom line is that this is a state that John McCain should have wrapped up a long time ago. Democrats have not won here in 44 years. Later today John McCain going to North Carolina, yet another state that Republicans should have wrapped up.
It shows you the Republicans are on defense, Barack Obama is on offense right now trying to pick up some of those red states, turn them into blue. Nevertheless, John McCain yesterday here in Virginia talking tough when he met with some of his volunteers about what he plans to do with Barack Obama in Wednesday's third and final debate.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: After I whip his you-know-what in this debate, we're going to be going out 24/7.
(END VIDEO CLIP)
HENRY: So a little bold, a little colorful with the language. Normally politicians like to sort of downplay expectations before a big debate. But let's face it, John McCain only has one debate to try to shake this race up. So he's raising expectations a little bit.
He's also going to be walking a fine line in that final debate about how tough to get, how to rough to get, how negative to go, Heidi.
COLLINS: So given all of this news that's happened over the weekend, certainly pertaining to the global markets and the economic situation, are we going to hear anything new, any idea, Ed, from McCain on the economy today?
HENRY: Over the last couple of days, we have been hearing about the possibility of John McCain unveiling some sort of a new economic proposal. At this point, aides say he doesn't have any thing imminent.
Instead, what they say we should expect is sort of yet another message change from John McCain. He's going to come out today and basically saying he's a fighter, that he's going to be -- he's the underdog in this race, he's going to fight back and win this race, and if he's elected president, he's going to fight for the American people.
We've been keeping track, he's been -- you know, basically one message was that Barack Obama was not experienced enough. Another is John McCain the maverick, Barack Obama's risky, now it's that John McCain is the fighter.
Obviously a lot of Republicans hoping he settles on a message for the final three weeks to try to hammer something home and try to come back here in the final days, Heidi.
COLLINS: CNN's Ed Henry for us this morning in Richmond, Virginia.
Thank you, Ed.
On the other side of the campaign, Barack Obama's running mate Joe Biden is in New Hampshire. We're going to check out his rally in Rochester coming up near the top of the hour.
You can call them rescue dogs. These guys saved a neighbor. A barking dog's story that you're definitely going to want to hear.
(COMMERCIAL BREAK)
COLLINS: Burning out of control. Firefighters are being ferried across San Francisco Bay now to historic Angel Island. Strong winds fan the fire overnight sending campers packing. Look at those flames. Angel Island is where many immigrants first arrived back in the early 1900s.
In Southern California, firefighters and residents are bracing for the worse. Santa Ana winds are kicking up again and the 2,000 acre wildfire outside of Los Angeles that was actually quiet over night and is now flaring up once again. And that is often the concern, obviously, when you have those winds.
Rob Marciano standing by now to talk a little bit more about that. So it was calm and nice overnight and then the wind comes back.
ROB MARCIANO, CNN METEOROLOGIST: Yes, we're getting this time of year when we get storms to go through the intermountain west. Cold air to kind of get into the mountains and when that cold air gets heavier and wants to drain into the valleys. So -- as that happens, you get the winds -- the Santa Ana winds going, we have dry air and this air compresses and heats up.
(WEATHER REPORT)
MARCIANO: But this thing, Heidi, eastern Caribbean, this has a little bit more promise. They're going to fly recon aircraft to do it this afternoon. They may even name it or give it a tropical depression classification here before this newscast is even up, so we'll watch for that potentially here in the next couple of hours.
COLLINS: Yes. Please do, obviously. Hey, you know, also we're watching for snow, believe it or not?
MARCIANO: Yes. We have some big-time accumulations in parts of the Rocky Mountains. Got some pictures?
COLLINS: I think we do have some pictures.
MARCIANO: All right.
COLLINS: In fact, iReporter Diana Gross took this of her daughter enjoying an early -- would you look at that? They live in Columbus, Montana which, Rob, is on the banks of the Yellowstone River, I guess, right?
MARCIANO: Yes, western Montana.
COLLINS: Yes.
MARCIANO: I guess, you know, higher elevations.
COLLINS: Look at that.
MARCIANO: Oh that is nice. Now, come on.
COLLINS: Gorgeous. Why are we not there?
MARCIANO: Let's just skip over Halloween and get right to Christmas.
COLLINS: I love that.
Snow is also piling up in south central Idaho. Look at this. IReporter Robert Weaver says 23 inches fell at his home in Heyburn, the most ever this early, in fact.
So what's up with that? Why so much snow so early?
MARCIANO: They're just getting us ready.
COLLINS: Yes?
MARCIANO: You know, (INAUDIBLE), Sun Valley, got a couple of good ones up there in Idaho. And it helps to insulate potatoes...
COLLINS: OK.
MARCIANO: ... for the...
COLLINS: You know I hadn't thought of that.
MARCIANO: I don't know. I just made that up.
COLLINS: And the tractor apparently.
MARCIANO: It makes for pretty pictures and we -- we're certainly -- you know, the kids get fired up about it this time of year. So you definitely...
COLLINS: Kind of.
MARCIANO: If you have snow in your backyard, send us your iReports for sure.
COLLINS: Absolutely. It's gorgeous. Boy, I can look at it all day.
All right, Rob, thank you, we'll check back a little bit later on.
MARCIANO: OK. See you, Heidi.
COLLINS: To the Doyle family, they are the heroes next door, Gibson and Tallie, the Springer spaniel and the Australian shepherd who saved their lives. In the middle of the night, the dogs started barking and wouldn't stop. So their owner woke up to find the neighbor's garage on fire.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I called 911 and ran over to my neighbor's house to get her out. And my wife ran to get her kids who live next door to her.
LARRY KATZ, DOG'S OWNER: The doorbell rang and I came running down the stairs, I went outside and all of a sudden I hear the crackling and the flames.
(END VIDEO CLIP)
COLLINS: Wow, the garage and the vehicle inside -- look at that -- a total loss. The siding of the house had already melted by the time the firefighters arrived. But the Doyles say all that can be replaced of course and they are now stocking up on doggie say all -- all that can be replaced, of course, and they are now stocking up on doggy treats, the really good ones.
Dozens of credit cards are a reminder of darker days for Katrina Clements. Once $30,000 in debt, now living debt free. How did she do it? We've got her story.
(COMMERCIAL BREAK)
COLLINS: Just about 10 minutes away now from the opening bell on Wall Street. As we've been saying all morning long, even though it's Monday, we're hoping for a nice rally today.
Futures are pointed up given the news over the weekend, of course, at the emergency meeting where the European and British banks decided that they would be getting government help.
Global leaders are going to really rush towards this world financial fix and European nations are going to be guaranteeing lending. So what sort of affect will that have on the U.S. stock market?
Of course, we'll be watching it very, very closely. We will bring it to you as the bell rings.
Climbing out of debt and living within your means, easier said than done for some people, but certainly not impossible. Just ask Katrina Clements.
CNN's Kate Bolduan has her story.
(BEGIN VIDEOTAPE)
KATE BOLDUAN, CNN CORRESPONDENT (voice over): Well, high anxiety and threatened economic panic spread throughout the country, Katrina Clements feels none of it.
KATRINA CLEMENTS, CLIMBED OUT OF DEBT: It's carefree but carefree with responsibility, being able to actually breathe, to really, really smell the coffee and smell the roses, and not just look at it.
BOLDUAN: Ten years ago Clements was $30,000 in debt holding about 100 credit cards with nowhere to turn. She finally found financial rescue in a surprising place - church.
With the help of this chorus at the First Baptist Church of Glenn Arden in Maryland, Clements was death free in 15 months and remains so today, weathering the current financial storm with ease because of what the class called biblical financial principles.
CHARLES ELLERBE, FINANCIAL FREEDOM TEACHER: God tells us that life is cyclical. OK? Nothing is -- you're not going to be up all the time, you're not going to be down all the time. Life is cyclical.
You have to prepare when life is good, knowing that the bad times are coming.
BOLDUAN: Clement worked out a deal with her credit card companies to pay down the debt. She also cut back to the bare necessities.
CLEMENTS: No more eating out. Simple things like coffee and Danish in the morning was a ritual that ceased.
BOLDUAN: It's the kind of discipline the former money watchman under the Clinton and Bush administration says the federal government desperately needs.
(On camera): It's not going to be easy, correct?
DAVID WALKER, FORMER U.S. COMPTROLLER: We have to get back to basics. We need to be able to re-establish tough budget controls. We need to reform Social Security, our tax system, our health care system.
BOLDUAN: David Walker has been warning of the dangers of a debt- ridden government since he left office. He's now the star of a documentary on the topic called "I.O.U.S.A."
WALKER: People need to understand how to budget. They need to prepare for a better tomorrow. And so does the United States government.
BOLDUAN: Clements says the road to debt freedom was long and tough. She made a credit card collage as a reminder and she hopes to serve an example. CLEMENTS: And a lot of people do try to keep up with the Jones's, but my advice to them is stop trying to keep up with the Jones's because they're broke.
BOLDUAN: Kate Bolduan, CNN, Waldorf, Maryland.
(END VIDEOTAPE)
COLLINS: So how are you coping in these financial troubling times? If you've got a story to tell us, of course, we would love to hear it. Just send it to us at ireport.com.
John McCain and Barack Obama waving their campaign banners today in battleground states. We're breaking down the electoral map and bringing you the latest polls.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: On Wall Street, stocks are coming off their worst week ever. But today we could finally see a turnaround. Sounds like music to the ears, is it not?
Susan Lisovicz is at the New York Stock Exchange with a look at the early market action.
Good morning to you there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Good morning.
Just -- all I can say is TGIF. I'm so glad there were two days in between...
COLLINS: Yes.
LISOVICZ: ...before we get started in two minutes, Heidi. You know the major averages plunged between 15 and 18 percent in five trading sessions last week. And if you want to know a dollar value, $2.5 trillion in total market value.
That wasn't good enough, though. Friday was the most volatile day ever for the Dow Industrials. Point wise, percentage wise, worse week ever and then the most volatile day ever that was a 1,000 point swing, Heidi. I know you witnessed a lot of it in the morning.
We're gearing up for a big relief rally at the open, after Hong Kong's Hang Seng surges 10 percent and as European markets showed sharp gains -- or are showing sharp gains as well. The rebound comes as U.S. and European authorities pledged to aid the crippled banking system.
We also heard from a new voice today on the global voice today on the global financial crisis.
COLLINS: Yes. LISOVICZ: Neel Kashkari.
COLLINS: Tell us about him a little bit. Can you, Susan?
LISOVICZ: Well, he's -- you know, he is someone that -- our treasury secretary knew from Goldman Sachs. Yet another person who's making his way to Washington. He's 35 years old and he is running the $700 billion bailout -- 35 and running the $700 billion...
COLLINS: Wow.
LISOVICZ: ... bailout since the U.S. government basically working with private law firms on the best way to buy ownership shares in several banks. He didn't give a lot of details on the program but -- he did stress that the government is moving quickly and his title is an interesting one, Heidi, some interim secretary for something about financial stability.
COLLINS: OK.
LISOVICZ: It's an interesting -- it's an interesting title, these are interesting times.
Separately, the Federal Reserve since it will lend an unlimited amount of dollars to the central banks of England, Switzerland and the European Union in exchange for collateral, we're watching shares of Morgan Stanley getting a huge cash infusion to the tune of $9 billion.
There is the opening bell.
We've been watching Morgan Stanley tanking last week. It was -- there were fears that that deal was in doubt. But there -- there was a new deal that was negotiated and it -- in futures that leaves its shares were flying. And we're also a positive start in the first few seconds -- Heidi.
COLLINS: What is it?
LISOVICZ: Right now, the Dow is up 100 points in 18 seconds. 100 points. You know, things just don't happen in subtle sort of ways here.
COLLINS: No, no.
LISOVICZ: Everything is extreme. The Nasdaq, meanwhile, is up 85 -- 5 percent for the Nasdaq in less than a minute. 30 seconds of trading. The Dow is up 2-2/3. The S&P 500 is up 2-1/2.
COLLINS: OK.
LISOVICZ: That is a bounce back, Heidi. It's 45 seconds since trading. It's also Columbus Day. The bond market is closed. Obviously global markets are open. A lot of people have been taking time off so we'll be watching, you know, a long weekend. We'll watch the volume today. That can exaggerate the moves, as if we needed any exaggeration in the moves in the market. COLLINS: It's kind of like a slingshot.
LISOVICZ: But I think a lot of people, you know, are asking the question. You know, is this something -- did we find the bottom? Because the market was swinging wildly back and forth on Friday. Did we finally, sort of, get to an area where we can try to climb back, and that's obviously not. And after, given the first minute or so, we're really in the first couple of days of trading, and this is very typical when you're deep in the claws of a bear market.
COLLINS: Yes. Look at that now, up 365 -- 357, yes, all over the place.
LISOVICZ: Enjoy it. That's a gain of better than 4 percent, Heidi.
COLLINS: Yes, right there in the first minute of trading.
LISOVICZ: We haven't seen something like that in a while.
COLLINS: No, we haven't. Can you keep it that way, Susan? We would appreciate it. We'll check back a little bit later on. Susan Lisovicz at New York Stock Exchange.
LISOVICZ: You got it.
COLLINS: Thank you, Susan.
LISOVICZ: You're welcome.
COLLINS: On Capitol Hill today, your money and the prospects of new relief. House Democratic leaders are putting together a second economic stimulus package now. They say it would give citizen the kind of financial relief that's now being funneled into the financial sector. The goal -- extend jobless benefits, bolster food stamps and finance things like building roads and bridges. A vote expected after the elections. Critics say, though, this is not the time for government to shell out another $150 billion.
Overseas, investors seem to be in a bargain hunting mood, if you will. We asked our correspondents in Hong Kong, London and Moscow to take a look at how markets there are responding. First, we go to Adrian Finighan in London.
(BEGIN VIDEOTAPE)
ADRIAN FINIGHAN, CNN INTERNATIONAL CORRESPONDENT (on camera): Good morning, Heidi. A typically gray British day here in London, but a much brighter mood on the markets today after Britain began to implement it's bank bailout plan and leaders in the Euro zone pledge to implement a similar plan along the lines of the British one.
Prime Minister Gordon Brown says a $63 billion banking bailout will help to hold the global financial turmoil. It's providing the funds in the form of fresh capital. The three British banking groups -- Lloyds TSB, The Royal Bank of Scotland and HBOS. All of them have suffered losses as the credit and housing markets crumbled. The extra capital designed to put them on a sounder financial footing.
European market much higher today. They all open around 5 percent to 6 percent higher as people spot some potential bargains after the polls we've seen over the past days and weeks.
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT (on camera): I'm Matthew Chance in Moscow. And despite financial bailouts around the world, Russia's stock markets are still under intense pressure forcing financial regulators to step in again and to suspend trading. Markets here had already been closed since Thursday in a bid to stand the roller coaster volatility that has really dogged Russia's commodity rich stock exchanges. And seen share prices here plunged more than 65 percent since their highs.
ANDREW STEPHENS, CNN INTERNATIONAL CORRESPONDENT (on camera): I'm Andrew Stephens in Hong Kong. The relief in Asia, Monday, was clear. You could just about taste it. After their worst week since the crash of 1987, investors spent the weekend on eggshells waiting for news from Central Banks and government which would stop the panic in global stock markets, and it appears they got at least some of what they were looking for.
From Sidney to Shanghai and across the India market soared, and perhaps even more important, they held on to those gains. Hong Kong stands out and closed more than 10 percent higher. Japan closed today for a public holiday. Well, bank stocks led the charge pretty much across. From Australia to China, and through to India, investors snapping up institutions which had taken the brunt of the selling last week.
(END VIDEOTAPE)
COLLINS: All right. Quickly, let's take another look to the big board now. We are just, by my clock, about four minutes, almost five into the trading day, and boom. We saw that number. Dow Jones Industrial Averages go over 400 already. Now we're resting at about 387. You see it there. We will continue to keep a very close eye on that big board today. Nasdaq also up I believe and the S&P up as well.
So meanwhile, 22 days and counting. Election Day now just over three weeks away. Paul Steinhauser part of the Best Political Team on Television is joining us now from Hempstead, New York. It's the site of Wednesday's final presidential debate.
Paul, so how's the race looking in the battleground states now?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Heidi, it's all about the battleground states, because, remember, this is a race for those states and their electoral votes. Let's start with Ohio. This is the state that decided it all four years ago. The state that put George Bush over the top for his reelection.
Take a look at our latest CNN poll of polls in Ohio, which is basically an average. A compilation of the latest state's surveys there and it is tight. 49 percent for Obama, 46 percent for John McCain, with five percent of voters undecided. Which basically means it's a dead heat. It's a tie. That's why you're going to see Barack Obama there today and tomorrow. You've seen John McCain there and he will be back. They're going to be spending a lot of time and money in Ohio these remaining 22 days.
John McCain today, this is interesting, John McCain and Sarah Palin they're going to Virginia. Now Virginia, Heidi, that's a state that hasn't voted for a Democrat in the presidential election since 1964. Can you believe it?
COLLINS: Yes.
STEINHAUSER: But -- yes, I mean, it's a reliably red state, you think for Republicans. Not anymore. Take a look at our latest CNN poll of poll there. You've got Barack Obama up by 4 points -- 49 percent to 45 percent. Six percent of voter there undecided in our latest poll of polls. So once reliably red state, now basically up for grabs. Same thing in North Carolina. That's where McCain is going later today. Our latest polls there show it's dead even.
What about the big picture? Our CNN electoral map. We take a look at the whole country. And we say, if the election were held today, we estimate that Barack Obama would win 264 electoral votes. John McCain 174, 100 up for grabs, and remember, 270 needed to win the whole enchilada.
COLLINS: Yes, so I'll let you estimate all that, though. That's a little scary for me. Three weeks down, you never know. In fact, Paul, obviously one more debate to go as we mentioned. And when we look back at the last one now, and we look at the polls, any indication whether or not the last one made a difference?
STEINHAUSER: It seems like it did make a difference and it seems like it made a little bit of a difference in Barack Obama's favor. Take a look at our latest CNN national poll of polls. And you can see Barack Obama up now by eight points, 49 percent to 41 percent. 10 percent of voters undecided. That's a little bit larger of a lead than he had prior to the second debate which was last week in Nashville.
Now, again, he can't say -- we don't know if all that lead increase -- that increasingly came from the debates, but he has widen his lead a little bit. He's made some gains. We got the last one as you mentioned, Heidi. And it will be right behind me, right here at Hofstra University in Hempstead, suburban New York on Wednesday. They'll be setting up this same table. The moderator, Bob Schieffer of CBS News, and the questions about the economy.
Heidi?
COLLINS: Yes. We'll be watching. How closer they're going to sit? I mean, will there be enough space between them, do you think, Paul?
STEINHAUSER: They're not going to be shoulder to shoulder, but they are going to be around the same table. That may kind of prevent them from going on the attack against one another.
COLLINS: Yes, we'll see. All right. Paul Steinhauser from New York this morning. Thank you, Paul. Join The Best Political Team on Television for debate night in America. The final face-off for John McCain and Barack Obama, Wednesday night, live, as you just heard from Hempstead, New York.
A beautiful day in New York City has the big apple gets ready to celebrate Columbus Day. Yes, it's Columbus Day today. The 64th Annual Parade kicks off at noon. Mayor Michael Bloomberg plans to lead the marchers all the way from Fifth Avenue and 45th Street up to 79th Street. Lady Liberty there, a gorgeous shot of New York City, and we have Rob Marciano to thank for that. The power of Rob Marciano is just amazing.
ROB MARCIANO, AMS METEOROLOGIST: Well, you know, I'm going to be a token Italian today. We try to deliver a nice forecast from New York City.
COLLINS: And so (INAUDIBLE) with the president today, too.
MARCIANO: Oh, you said that very well.
COLLINS: Thank you.
MARCIANO: Nice work.
(WEATHER REPORT)
COLLINS: All right. 50/50, we like that. All right, thank you, Rob. We sure do appreciate that. Quickly, I'm just going to point out to everybody again. We're looking at the Dow Jones Industrial Averages today. A big, big day that we had expected. These futures pointed up now almost 430 points to the positive.
Meanwhile, a sign of the times, that's for sure. Sleepless nights, eating disorders, headaches, ulcers, we are talking about financial anxiety and how you can deal with it.
(COMMERCIAL BREAK)
COLLINS: Well, it's Monday, but, boy, it looks a lot better than Friday, that's for sure. Another live look for you of the Dow Jones Industrial Averages, up 384 points now. We are watching very closely. We sort of expected the futures to be higher today. We'll keep our eye on it for you.
Markets tank, your money shrinks, your stomach then churns. So, are you ready for some financial therapy? More and more Americans are turning to experts for help in dealing with the stress.
CNN personal finance editor Gerri Willis is here now to explain.
Gerri, I can't understand how this could be a very good idea for people.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right. Well, everybody is talking about their money these days, right?
COLLINS: Yes.
WILLIS: But could your financial stress be affecting your emotional health? Now some folks are turning to financial therapy during these economically tough times.
(BEGIN VIDEOTAPE)
SANDY HERBST, TEACHER: I needed someone to talk to. I need someone to listen to me, to see what I need.
WILLIS (voice over): Sandy Herbst didn't realize just how stressful handling her finances could be until her husband passed away five years ago.
HERBST: It was very nerve wracking. You don't know where to turn, you don't know what to do, and my husband did handle a lot of the bills and a lot of the things that we did, so it was everything was just switched back to me, totally to me.
WILLIS: So Sandy sought help.
UNIDENTIFIED MALE: I think we'll just take it out of the main account and transfer it over to your checking account.
HERBST: OK.
WILLIS: With the help of a financial planner, Sandy was able to get a better grip on her finances and her fear of handling them.
MORRIS ARMSTRONG, REGISTERED INVESTMENT ADVISOR: You have to listen. And you have to hear people's concerns. You cannot brush them aside.
WILLIS: With the financial crisis taking a toll on the stock market, it's also beginning to take a toll on American psyche.
ARMSTRONG: They come to you for comfort. I'm the equivalent of comfort food.
WILLIS: The American Psychological Institute finds 83 percent of women and 78 percent of men are stressed by money, so stressed that a growing number are turning to mental health professionals.
DR. ROSALIND DORLEN, CLINICAL PSYCHOLOGIST: We're seeing people come in with sleep problems. Sleep is a big casualty of anxiety, especially about money. We're seeing people with eating problems, people who are excessively worrying. So, we're seeing an overall increase of symptoms that relate to anxiety. And in this case, the anxiety is money.
WILLIS: An important step towards combating this anxiety, opening up.
DORLEN: You know, money is a big taboo. People are much more comfortable talking about sex, I think, in today's culture. They're more comfortable talking about death, but money is a taboo subject. So, just getting people to take an inventory and a careful accounting of recording their expenses, their level of debt and seeking the kinds of problem solving techniques that will help them reduce anxiety from a financial perspective.
WILLIS: But for some Americans, easing years of financial worry may be harder than it sounds.
HERBST: I do a lot of worrying about it. I do, I think about it a lot. I wonder what's going to happen next.
(END VIDEOTAPE)
WILLIS: If your financial stress is taking a toll on your emotional health, there are some steps you can take. First off, consider a financial planner. Look, a second pair of eyes and a comforting ear may ease some of your worries about money. And if you need to turn to a psychologist, find one at psychologist.org to find a nationally registered psychologist in your area.
Heidi?
COLLINS: Some people might be wondering though, Gerri, is it a good idea to ask financial advisors for emotional support?
WILLIS: Well, look, I know they're all doing a lot of hand holding right now. But the people I talk to in the business say they're spending all their time on the telephone. But at the end of the day, if these problems are making you stay up all night, lose weight, if you can't eat, if your problems are really thorough going, you should find an expert who's a psychologist rather than a money manager because they can really help you more than money managers. The money manager is great at fixing your money problems but not your head problems.
COLLINS: Yes, very good point. All right, CNN's personal finance editor, Gerri Willis. Thank you, Gerri.
WILLIS: My pleasure.
COLLINS: Experts say in these tough economic times, you need to protect yourself by stockpiling an emergency fund. Ali Velshi has some safe places to put that cash in today's "Right on Your Money."
(BEGIN VIDEOTAPE)
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT (voice-over): Protect yourself. When it comes to this economy, having easy access to cash gives you a safety net for the unexpected, like losing your job. So, you should have enough on hand to cover your lifestyle for several months.
WALTER UPDEGRAVE, SENIOR EDITOR, MONEY MAGAZINE: For my emergency reserves, these three to six months that I need, your primary concern here is safety. You're not trying to get the absolute highest yield.
VELSHI: The key is putting your money in an investment you can withdraw from any time without penalty.
UPDEGRAVE: Security is of utmost importance. So, you want to stick primarily to savings account, money market accounts, short-term CDs. You want to do the best that you can within those categories.
VELSHI: So, shop around. And remember, this is a low risk, low reward investment. That's why finding the best rate is your best bet.
UPDEGRAVE: You're still probably a little bit below 4 percent so you maybe still losing out a little bit to inflation, but you can still do a little bit better than, for example, just getting the average return, just going, automatically going to your local bank.
VELSHI: And that's "Right on Your Money." Ali Velshi, CNN, New York.
(END VIDEOTAPE)
COLLINS: A nation in turmoil. Empty shelves, empty lives and an inflation rate that is absolutely staggering. Zimbabwe brought to its knees.
(COMMERCIAL BREAK)
COLLINS: The United States' relationship with North Korea has changed. The communist country no longer part of the axis of evil. Here now CNN's Zain Verjee.
(BEGIN VIDEOTAPE)
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): It was a dramatic save. The Bush administration risked criticism at home to rescue the nuclear deal with North Korea.
SEAN MCCORMARK, STATE DEPARTMENT SPOKESMAN: The Secretary of State this morning rescinded the designation of the DPRK as a state sponsor of terrorism, and that was effective with her signature. North Korea has stated it will resume disablement of its nuclear facilities.
VERJEE: The U.S. agrees to take North Korea off the terrorism sponsor list immediately, earlier than previously planned. Other sanctions remain in place. North Korea agrees to inspectors on the ground and other checks to prove its revealing nuclear secret.
PATRICIA MCNERNEY, PRIN. DEP. ASST. SECRETARY OF STATE: Verifying North Korea's nuclear declaration will be a serious challenge. So we're not going into this naively. This is the most secret and opaque regime in the entire world.
VERJEE: North Korea had turned up the pressure, taking steps to restart its nuclear reactor that produces plutonium for nuclear bombs. Administration point man Christopher Hill flew to North Korea last week to salvage the deal. President Bush made the final decision Friday night. The administration is now coming under fire from fellow Republicans, including presidential candidate, John McCain, who wanted verification first before removing North Korea from the terrorism black list. They say the administration is rewarding bad behavior and North Korea can't be trusted.
MCCORMACK: We're not going to talk about the politics. We're not going to talk about political campaigns. But I can tell you, the Secretary and the President wouldn't take these kinds of decisions if they didn't think that these decisions would help us, the United States, ultimately get to the goal of de-nuclearizing the Korean peninsula, again, without compromising on principle.
VERJEE (on camera): The State Department says North Korea will have to tell what it has and what it knows, including down the road its suspected uranium enrichment program and whether it shed any nuclear expertise with other countries, including Syria. Zain Verjee, CNN, New York.
(END VIDEOTAPE)
COLLINS: The financial market is opening with a flurry, soaring over 400 points in just the first few minutes of trading. We are at the stock exchange, of course. And get ready to ride. CNN's Election Express were taking you to New Hampshire.
(COMMERCIAL BREAK)
COLLINS: A power sharing deal in jeopardy. South Africa's former president Thabo Mbeki heads for Zimbabwe to mediate the deadlock. It's just the latest stumbling block in the country where many are struggling to survive.
Here CNN's Nkepile Mabuse.
(BEGIN VIDEOTAPE)
NKEPILE MABUSE, CNN INTERNATIONAL CORRESPONDENT (voice-over): Once the envy of many countries in Africa, Zimbabwe is falling apart. People here gone for days without electricity and months without water. They line up to get just about everything from gas to money.
UNIDENTIFIED MALE: We come in the morning then go without even getting money.
UNIDENTIFIED MALE: People are just (INAUDIBLE).
MABUSE: The policies of Robert Mugabe government have brought not only international isolation, they have brought the country's economy to its knees. Millions of Zimbabweans have fled, unable to cope with the highest inflation rate in the world now officially sitting at over 200 million percent. The Zim dollar continues to depreciate at such a staggering rate. Many store owners now trade in foreign currency. 80 percent of the population is unemployed, and even with the job, life is tough in Zimbabwe. As one of the better paid teachers, Mlungisi Velemphini earns the equivalent of ten U.S. dollars per month. The only reason he has so far managed to survive he say is because his salary is paid in food and accommodation. Employers are even paying workers with fuel.
MLUNGISI VELEMPHINI, ZIMBABWEAN TEACHER: If you are driving to work everyday and you earn cash and you don't earn fuel, you probably find almost salaries which you can earn for professionals above. Thus, you wouldn't be able to afford to drive yourself to work every day. Because compared to how much you earn, the fuel is very, very expensive. Because the fuel is index for foreign currency and U.S. dollars.
MABUSE: Mugabe's government has recently imposed price freezes in yet another futile effort to deal with an economy that is in freefall. As a result, some stores have simply shut.
(on camera): (INAUDIBLE) and many other supermarkets has absolutely nothing on the shelves, anyway. And the reality is it is the black market where government restricts don't apply. That is the real economy in Zimbabwe today. And the only way those with disposable cash manage to survive.
(voice-over): Zimbabweans purchase big basics such as bread on the black market. And if you want to exchange money, you can find a dealer on almost every street corner in the (INAUDIBLE). A few Zimbabweans are cashing in on the economic crisis.
VELEMPHINI: It's very difficult to motivate children to aspire to be lawyers and doctor, when lawyers and doctor can't afford to buy a vehicle.
MABUSE: The Food Program estimates that nearly half of the population will need food assistance by early next year.
UNIDENTIFIED MALE: (INAUDIBLE), the president.
In stark contrast to the daily suffering here, Mugabe still manages to drive around in a vintage Rolls-Royce. He's signing a power sharing deal with opposition leader Morgan Tsvangirai last month briefly bought some hope that things may change for the better here. But experts say that in the unlikely even that the agreement is implemented and seem to be working, it will take years for normalcy to return to Zimbabwe.
Nkepile Mabuse, CNN, Zimbabwe.
(END VIDEOTAPE)
COLLINS: Sparks on Wall Street. The Dow numbers shining light on the nation's dim financial system. But will this glow fade? We're keeping our eyes on the big board.
Also, Joe Biden in New Hampshire right now. Who's ahead, who's struggling? We've got the latest polling numbers and we'll take you live to the site of the last presidential debate. I'm Heidi Collins, it's Monday, October 13th. You are in the CNN NEWSROOM.
