Return to Transcripts main page

American Morning

North Korea Appears to be Fueling Missile; Obama's First G-20 Summit; Obamas Meet the Queen

Aired April 02, 2009 - 08:00   ET

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


CAROL COSTELLO, CNN CO-ANCHOR: Let's get on to this morning's top stories. Here's what's on our agenda this morning. Stories that will be breaking down -- that we will be breaking down in the next 15 minutes.

Leaders of the entire industrialized world on one stage. These pictures just in. The class photo, including President Obama. They are all meeting right now in London at the G-20 summit. They represent countries that control 85 percent of the world's GDP in the middle of an economic meltdown. The president also meeting with the leaders of Saudi Arabia, the world's biggest oil exporter and that will happen later this morning.

Breaking news coming from talks overnight. President Obama warning North Korea, promising a stern united response to a possible North Korean missile launch. The north also coming out with some of its signature over the top rhetoric. We'll have more on that in a moment.

And another story just coming in to us. A manhunt underway right now for a man who went on a rampage with an ax, killing a child on a Jewish settlement in the west bank. Authorities say the attacker killed a 13-year-old child and wounded a 7-year-old. They believe the suspect is Palestinian and that he was also wounded by security guards before he took off.

JOHN ROBERTS, CNN ANCHOR: Well, more now on our top story. Right now, leaders from around the world, including President Obama, are trying to narrow their differences and fix the economic crisis. They all got together for a class photo earlier this morning.

President Obama and South Korea's leader also putting money aside, momentarily, talking security, warning North Korea that there will be a, quote, "stern united response to any missile launch." And that missile, according to the U.S. military was fueled up overnight and could be ready for launch in a matter of hours.

COSTELLO: CNN's Kyung Lah is tracking the latest developments live from Tokyo. Hello!

KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT: Good morning, Carol. These next few hours are going to be very closely watched by the State Department, the Pentagon, and those leaders around the world. Let's give you the very latest on the status of this long-range rocket.

According to a senior U.S. military official who talked to CNN, this long-range rocket has begun being fueled. What that signals to military officials is that the final stages have begun, and this launch could happen as soon as Saturday as North Korea has indicated. Now North Korea has been contending that this is a peaceful space mission to launch a satellite into space, but the U.S. and its allies believe that this is a cover.

That what North Korea is trying to do is to test this missile technology so that one day, it could have a long-range missile that could hit the West Coast of the United States.

As far as what's happening in Japan, preparations here, military preparations are under way. There are two preparations. On the land, PACT 3 Patriot missiles are poised pointing to the sky ready to fire if, and only if debris starts to fall toward Japanese territory. The other is destroyers in the Sea of Japan, also south of Japan. These destroyers could also have missiles that launch into this space -- Carol.

COSTELLO: Kyung Lah reporting live for us this morning. Thanks.

ROBERTS: Battle of words breaking out between world leaders at the G-20 summit in London and North Korea. The U.S. says the secretive state is getting ready to test a long-range ballistic missile, the one that's being fueled right now. President Obama and South Korean officials promising a, quote, "Stern united response."

For more in all of this, let's bring in our chief international correspondent Christiane Amanpour. So the North is saying this is not a ballistic missile test. This is simply a rocket. It's got a satellite on the top of it. The United States not quite sure what's going on. What do you think is going on?

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, it's hard to tell. What is clear, though, John, is what a difference a year makes. And I mean that because this time last year, we were in North Korea. Yes, with the New York Philharmonic Orchestra, but, yes, we also got access to the nuclear power plant. It was shut down, they were disarming, engaged with the United States. We saw them blow up the cooling tower. And then, coincident with the election of the new South Korean president, the rhetoric on both sides started to heat up.

North Korea has had -- you know, has fallen back on its commitment to monitor all its nuclear disarmament. But now we are at this stage. This missile, or rocket launch, or satellite launch has been talked about now for the last several weeks. Analysts don't know exactly what it is. They don't know whether it's just a satellite launch, whether it's just a bluff, but they are preparing for a launch. Analysts are watching it now. It is a violation of the Security Council. And President Obama has said there will be a tough Security Council punishment if it happens. Japan threatening to shoot it down, and rhetoric and saber rattling high on that peninsula.

ROBERTS: All right. Well, it could come to a hit the next couple of days. Stay with us, because lots to talk about this morning, Christiane. Thanks. COSTELLO: And we're going to talk about the queen and the first lady. And I know you want to know more. (INAUDIBLE).

ROBERTS: It's her favorite topic.

COSTELLO: Well, it is. It's all the buzz this morning. The president and the first lady meeting her majesty, Queen Elizabeth, for the very first time. Watch the moment they came face-to-face.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Thank you so much for this wonderful hospitality.

QUEEN ELIZABETH: You landed last night?

MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: Last night. We're still trying to stay awake.

B. OBAMA: I was going to say it.

QUEEN ELIZABETH: It's an awful time lapse, isn't it?

M. OBAMA: It is, it is. But he's been busy in meetings, and I've been a little less busy.

QUEEN ELIZABETH: You have to get breakfast.

(END VIDEO CLIP)

COSTELLO: Yes, photographers and reporters were eavesdropping. And it's just normal chitchat, really.

Of course, they went into those private meetings, and we all want to say, we all want to know what they said on those private meetings. And here with more on that and the burgeoning royal friendship is author Robert Jobson, who is live from London.

Good morning, Robert.

ROBERT JOBSON, ROYAL AUTHOR: Good morning.

COSTELLO: OK. So we're all talking about the touch. So, apparently, it's very unusual for the queen to really touch anyone, yet, there is word that she made the first move and touched Michelle Obama, although Christiane Amanpour is denying that. It was Michelle, she said, who touched the queen first. What do you say?

AMANPOUR: No, I'm just looking at the pictures.

JOBSON: Well, let's not get too political about this. The reality is -- I spoke to the palace this morning about this, and clearly, the queen did make the first move on the first lady. So, she embraced her. It was quite a small room that they were in. Quite a lot of people in there. And she just pulled her close, and then let Michelle respond. So it's not -- the first lady hasn't breached any real protocol here. I mean, if this was an Australian prime minister like Paul Keating in '92, there would be a growl about it. But actually, as the first lady didn't do anything wrong at the moment, I think it's fine as far as London is concerned.

COSTELLO: You know, I was talking with another royal watcher earlier this morning. And he said, it's unusual for the queen to touch her own son. So was there any -- I mean, did she instantly like Michelle Obama?

JOBSON: I don't think it's unusual for her to touch her own son. She kisses him every time she greets him. But the reality is, this isn't a big political football here. All this happen is they got close and they had a little cuddle. And the first lady seems to be very popular with the queen.

I don't think there's -- I think all this stuff about protocol can get out of hand. I mean, the royal family and the queen aren't that bothered about anybody who courtesies to her or bows to her. In fact, they say it's up to you. It's up to you what you do. Things have moved on a pace since ten years ago when Diana died. They've learned a lot of lessons, and then nowhere near as stuffy.

COSTELLO: OK. Well, that's good to hear. Because I guess that makes me feel better about the queen, because it seemed perfectly natural to me, being a touchy-feely person myself.

They also had some private meetings. And people are wondering what went on in those private meetings. Can you shed any light on that?

JOBSON: Not really, because everyone says they know what went on in those private meetings. And I'd be extremely surprised, because the only people inside the meetings are would be the president, the first lady, Prince Philip and actually the queen. There would be no aides in there. Nobody else. It's rather like when the prime minister meets the queen. There is nobody in there. And so unless you are a fly on the wall, you just won't know.

COSTELLO: Did she like the iPod?

JOBSON: She got two other iPods, actually. Prince William gave her an iPod, and she was given one, I think by -- somebody else gave her an iPod. But this was particularly good, because the White House and Buckingham Palace aides -- I spoke to one of the aides that dealt with it today, they really were happy about that gift exchange, and it all been cleared beforehand.

So, she's quite -- actually, the queen, she's up with all the latest gadgetry. She's got the same BlackBerry as the president so she is not that far behind.

COSTELLO: Cool.

ROBERTS: There you go. COSTELLO: Awesome. You know, you can never have too many iPods.

Thank you so much for joining us this morning. We appreciate it.

JOBSON: It's a pleasure.

ROBERTS: At least she didn't say, oh, not another iPod. I already got those. Well, the queen, not the only one smiling. Smiles on their faces, money on their minds. Check out this photograph.

Some of the most powerful men on the world striking a pose at the G-20. Christiane's chin just hit the floor. This becomes an instant profile pic on Facebook for any of them. President Obama all smiles with the Italian prime minister and the Russian president, the Chinese premier and Saudi king in front of them.

Christiane, what do you think?

AMANPOUR: I think it's an amazing shot. I mean, it's fantastic. All sorts of reaches of usual stuff is going on.

COSTELLO: Pretty cool.

AMANPOUR: And I think it's -- I think it's great. I think the moment between the queen and Michelle Obama is fantastic. Thank goodness for Robert Jobson who put it in perspective. It's a great personal moment. Pasta enough already.

ROBERTS: Well, we certainly hope, though, that the results of the G-20...

AMANPOUR: Well, people -- you know, President Obama meeting President Medvedev for the first time. Coming to -- you know, it wasn't big news. They are going to have a summit. That's a breakthrough. But we already knew that he was going to go forward on the nuclear arms reduction treaty. Now they say they are going to reduce their nuclear warheads. It's good business. It's putting the relationship back on an even keel and getting it back to where it should be. At least trying to do so.

COSTELLO: And actually, it's kind of nice to see them acting as normal people. You know, you forget sometimes they are just people with really hard jobs.

AMANPOUR: Yes, with the whole world in their hands waiting for a solution to this crisis, which is hurting everybody. Not just the rich and the developed world, but really the poor and the underdeveloped world as well.

ROBERTS: Interesting dynamic that we're seeing there, though.

COSTELLO: Yes.

ROBERTS: Who would have thought it? Christiane, thanks so much.

COSTELLO: Thanks, Christiane. Answer this. What the heck is a G-20 anyway? And who are all these people gathering in London? We hit the streets to see how much America really knows about the summit. And we got some surprising answers.

And another round in the battle over bonuses. A company is getting federal bailout money. The House passing a bill that gives the Treasury more power to determine reasonable compensation. Congressman Barney Frank joins us live. It's 10 minutes past.

(COMMERCIAL BREAK)

ROBERTS: Well, Washington tries again another bill designed to avoid an AIG-style bonus backlash. The House passing the Pay for Performance Act to limit paying bonuses and financial firms getting your money. Can it work? Can it pass the Senate?

Massachusetts Congressman Barney Frank chairs the House Financial Services Committee, and he joins us now from Capitol Hill.

Congressman, this new bill would not allow, quote, "unreasonable or accessible bonuses." How do you determine what is unreasonable and excessive?

REP. BARNEY FRANK (D), MASSACHUSETTS: Well, there's a little confusion in it. It says no unreasonable or excessive compensation. It says performance bonuses -- those are separate categories. Performance bonuses are allowed. You have the federal regulators do this.

Now we have two choices. We can either set dollar limits in the legislation ourselves which, I think, would not work. You've got a vast number of organizations with different capacities. You have time which changes things. Or you delegate it to somebody.

Now, obviously, delegation is never perfect, but if you're not willing to delegate to somebody, then you have no restrictions whatsoever. Unreasonably excessive, I think, would be this. If you're running a company, your effort is to try and spend as little as you can. You try to pay your suppliers as little as you can. You pay your employees frankly as little as you can to get them to work.

They make an exception, unfortunately, at the very top levels to some extent by giving themselves much more money. The CEOs have acknowledged that. So, by unreasonable and excessive, it would be what do you need to keep the company functioning? What do you need to keep people working?

ROBERTS: But would there be a standard formula or would this be a case-by-case basis? I'm trying to figure out how you determine what is unreasonable and excessive.

FRANK: Well, I'm trying to explain it. Would your preference be that we have no standard whatsoever, no rules? There are two choices -- or three, and there are no perfect ones. But when you only talk about the limitations of the one, you ignore the options. One is to say people who get TARP money. By the way, this only applies to people who are getting at least $250 million in capital from the federal government. It doesn't apply to the people who are participating in the other programs to try to help lending of small business or auto dealers. And it says if you've taken more than $250 million from the federal government -- by the way, any bank that has taken this money that doesn't like these restrictions can give the money back. The restrictions end. So, this is simply as long as they've got federal money.

And then you have three choices. You could have no restrictions at all. You can say, here's the deal, take the money and do what AIG did and there are no rules against it. Or, Congress could set dollar limits. I think that's impractical. Or give competent administrative authorities and bank regulators, these are financial institutions on the whole who have experience with bank regulation and say, excessive and unreasonable is a lot more money than would be needed to run the company. So that if people at the top echelon are paying themselves disproportionately, that's a mistake, that's the answer.

We also say this kind of bonuses where people extort and say, you know what, I have all the secrets, I'm going to quit if you don't pay me, we don't want those. We do want bonuses. But we want the bonuses to be performance bonuses. That is, if you do well, you make more money. If you do badly, then you do not.

ROBERTS: Now, taxpayers are looking at all of this and they're watching Congress fall all over themselves trying to fix the problem going forward, and they say to themselves, where was Congress, where was all this sense of outrage and this desire for oversight when the original TARP program was put in place last fall, $350 billion virtually disappeared and nobody knows where it went?

(CROSSTALK)

FRANK: We had resistance from the Bush administration. As a matter of fact, we made progress. I don't think we're falling (INAUDIBLE). By the way, one thing which you didn't mention which is very important in this bill, there was a good deal of concern because when Congress passed the economic recovery bill, Senator Dodd, to his credit, tried to extend the restrictions...

ROBERTS: And then pulled back.

FRANK: ... and a language was adopted that said they weren't retroactive. The bill we voted on yesterday repeals that restriction on retroactivity. So, what would I think that's very important. It shouldn't go unmentioned. Because there was a lot of complaint and a lot of the Republicans who are denouncing the administration -- how did you let this happen? And I found it ironic. And we put up a bill to undo what they had been complaining about. That piece saying no retroactivity, they voted against it.

In the original bill, we did put in compensation restrictions. Experience has been that they haven't been tough enough. Now I will give the Obama administration credit. They've been much tougher than the Bush administration to the point when many of the recipients of TARP funds are now telling us that because we made the restrictions so tough, they're giving it back. But the AIG experience showed -- I guess I'll put it this way -- we put limitations on it at the top levels and we thought that would be enough, although under Bush, they weren't enforced very well, they've been enforced better under Obama.

But what we found from AIG was there were some cases where the number of bonuses and excessive payments being given went into the hundreds, far beyond the top people. So that's what the bill that we did yesterday has done. It extends it to not just the top few, but in case of abuses -- and I'm sure there will be very few...

ROBERTS: Got you.

FRANK: ... to other people. So we did have compensation restrictions, but first they're still based on experience.

ROBERTS: All right. And we'll see if this one passes the Senate.

Congressman Barney Frank, thanks for being with us this morning.

COSTELLO: He had his coffee this morning, didn't he?

ROBERTS: He always had his coffee. Everyone.

COSTELLO: He certainly does.

And let's talk more about the G-20 protest in London. How does it feel to be in the middle of the demonstrations? We'll speak with one protester live and ask him why he was there.

And how much did you know about the G-20? Could you name the heads of state who gathered there, and I don't mean President Obama or the British Prime Minister Brown -- the other guys. Street quiz. Know your world leaders. It's funny. It's 17 minutes past the hour.

(COMMERCIAL BREAK)

COSTELLO: Welcome back to the Most News in the Morning. The G- 20 summit, it sounds impressive, right? But how much does the average American man or woman on the street know about the gathering in London? Do they even know what the G-20 is?

CNN's Richard Roth has been checking into that, and you took pictures out onto the streets and actually tested people.

RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: Yes. They made me go out into the street, Carol. Good morning.

They are making decisions that could affect all of our lives, but do we really know them? I got out of a car on Fifth Avenue and started asking questions.

(BEGIN VIDEOTAPE)

ROTH (voice-over): The G-20 in London. The G-20!

(on camera): What is the G-20?

UNIDENTIFIED FEMALE: I have no idea.

UNIDENTIFIED FEMALE: The G-20? I don't know.

ROTH (voice-over): The G-20 wasn't gee whiz to some Americans.

UNIDENTIFIED MALE: The G-20 is a summit of leaders.

UNIDENTIFIED FEMALE: They gather together to decide on economic and environmental issues.

ROTH: World visitors get to stay.

UNIDENTIFIED MALE: It's the 20 industrial nations that meet and I guess basically decide our fate.

ROTH: But just who are these guys and gals?

UNIDENTIFIED MALE: That's Angela Merkel.

UNIDENTIFIED MALE: Who is this man? You know, I always see on TV. I might -- I can get these. I do not know who this man is.

ROTH (on camera): Who is this?

UNIDENTIFIED FEMALE: Sylvester Stallone?

ROTH: No, that's not Sylvester Stallone. That's Sarkozy, the president of France. Maybe his wife calls him Rambo when we're not looking in the Champs-Elysees.

UNIDENTIFIED MALE: That is the prime minister of Great Britain.

ROTH (voice-over): So many leaders, hard to keep up.

(on camera): Whoa, that was the...

UNIDENTIFIED MALE: Medvedev.

ROTH: That was the Russian president who almost fell off down Fifth Avenue.

UNIDENTIFIED MALE: That is the dictator of Venezuela.

ROTH: No, it's the prime minister of Italy.

UNIDENTIFIED MALE: Manmohan Singh.

ROTH: All right. You got that cold. Where are you from?

UNIDENTIFIED MALE: I'm Indian. Next.

ROTH: Oh, yes, wise guy? Who's this? UNIDENTIFIED MALE: He's the Japanese -- he's the Chinese guy.

ROTH: No, Secretary General Ban Ki-moon. Next.

UNIDENTIFIED MALE: Bye-bye.

ROTH (voice-over): One leader was recognized by everyone.

UNIDENTIFIED FEMALE: President Obama.

ROTH (on camera): You don't know Gordon Brown? Where are you from?

UNIDENTIFIED MALE: Gordon Brown, right.

ROTH: Where are you from?

UNIDENTIFIED MALE: Gordon Brown.

ROTH: Where are you from?

I'm not fighting with you.

(voice-over): One man heatedly criticized the TV street quiz.

UNIDENTIFIED MALE: The assignment is, go out and support the theory that Americans or people on the street are uninformed about world matters. OK, they're not informed. They're uninformed. But we already know that.

ROTH (on camera): Well, who is this?

UNIDENTIFIED MALE: You going to test me now? Berlusconi.

ROTH: Very good. Who is this?

UNIDENTIFIED MALE: Very good? I don't think it's very good. Keep going.

(END VIDEOTAPE)

ROTH: We did slip photos of famous actors into the pile, and more people recognized Robert Downey Jr. and Glenn Close than the presidents of Indonesia and Mexico. But I would -- I mean, that's expected.

COSTELLO: Right. Because you don't see those people everyday. They're not on television every day.

ROTH: No, I'm not going to commit professional suicide by quizzing you now on all of these people.

COSTELLO: That guy needed a sense of humor. I can't believe he was so serious about this.

ROTH: Well, I mean, he thinks that we should cover more -- show how people do know things and encourage learning than make fun of those who don't.

COSTELLO: You weren't poking fun. You were having a discussion with Americans on the street about the G-20 summit.

ROTH: I mean, there's G-7, G-5. I mean, there's room for more pieces like this.

COSTELLO: And I'm sure you'll be going out on the street to dig them, too. Thank you very much, Richard.

So, if you're still unclear on what the G-20 exactly is, we have more in our "AM Extra." The G-20 consists of finance ministers and central bank governors from the European Union and 19 countries.

That will make this man happy, how we are educating now.

Those people represent 85 percent of the world's gross domestic product. So what are they all doing in London? Well, they are trying to come up with a global stimulus package. Prevent protectionism by individual countries, which means, basically, they don't want countries putting up tariffs and barriers to protect their own industries and hurt other countries.

G-20 leaders are also trying to help develop nations hit hard by the recession. Another objective? Toughening regulations on financial markets. So now you know -- John.

ROBERTS: The president sitting down face to face with several of America's allies. What we can expect from the first day of President Obama's first-ever G-20 summit.

And a protester who was smack in the middle of the London street chaos will be with us, live. Why he did it, and why he is going back for more today. Twenty-four and a half minutes after the hour.

(COMMERCIAL BREAK)

COSTELLO: President Obama is in closed door sessions right now, but he is also getting a chance to meet face-to-face with several world leaders. Our White House correspondent Suzanne Malveaux live in London.

And Suzanne, some big sideline meetings coming up for the president today. Tell us about them.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Sure, Carol. Well, we've actually got a chance to see, obviously, the class photo -- all those world leaders together at the G-20 summit. But what's really important, too, equally important, is what happens on the side here. President Obama, earlier today, of course, meeting with South Korea's President Lee.

They've talk about the nuclear -- possible nuclear threat of North Korea. But looking ahead to later this morning, very important meeting, he's going to sit down with India's prime minister saying they are going to talk about a very sensitive issue. As you know, the president saying there is going to be more money, more investment into Pakistan, India's rival. Obviously, that is meant to go after al Qaeda and the Taliban to try to build up the people in Pakistan. That is a concern of India's, so they are going to sit face-to-face and address that very sensitive issue.

The other meeting that's going to be taking place as well, that is Saudi Arabia's King Abdullah. And that is going to be -- also important, too, Carol, because, as we know, day one, President Obama made Middle East peace a priority. He said he was going to be very much invested.

We've seen Secretary of State Hillary Clinton in the region, and reaching out to folks. Also, oil prices. Huge deal, very much connected to our own economic situation. So those are two side meetings that are going to take place.

We saw the same thing covering the Bush administration. Sometimes those meetings, the face-to-face meetings, really either form impressions or move forward an agenda, or even put someone at ease with the very sensitive issue that is equally as important as these big, big meetings -- Carol.

COSTELLO: Yes. Speaking of putting people another ease, did you see the class photo? I mean, I guess they were the outtakes of the class photo.

MALVEAUX: Well, I have to tell you -- I mean, it's pretty funny to watch. It's pretty funny to see these guys mugging for the cameras. Maybe they just kid out themselves. They are like -- you know, at least 50 photographers that gather around because you don't get to see this kind of picture. It's very, very rare. Twenty world leaders all in the same spot. Usually, Carol, you can pick out the women. They're wearing the bright colors. They stand out. But these guys, it seems like they just couldn't help themselves. And it's a good thing to watch, though.

Because you get a chance to see the body language, they are a little bit more relaxed than some of these formal settings. And that might be a good indicator of how they are going to get along.

Do they like President Obama? Can they sit down together and talk about some of these sensitive issues -- and, you know, without getting very tense? This is just the beginning of that relationship building that you're seeing.

COSTELLO: I think it was Mr. Berlusconi from Italy who instigated this, as I suspected. And you can see the Russian leader there as well.

So, I don't know. Maybe it's a good sign of things to come, who knows. Suzanne Malveaux reporting...

MALVEAUX: Oh, we hope so.

COSTELLO: We do. Suzanne Malveaux, thanks. Suzanne will be Twittering throughout the president's trip. Find out how to follow her on our Web site. The address -- cnn.com/amfix.

ROBERTS: We're just about half past the hour now. It's 8:30 Eastern time, and checking our top stories.

The second day of protest in the streets of London. But so far this morning, things quieter near the site of the G-20 summit. We'll speak with one protester, coming up, live.

President Obama promising a, quote, "Stern united response to a possible North Korean missile launch." The president's comments coming out of the G-20, together with South Korea's leader, as we receive word that a rocket is being fueled for launch in North Korea.

And global market are showing confidence as the G-20 leaders are meeting to discuss the global economic crisis. Huge gains in Asia. Japan's Nikkei up 4.4 percent. Hong Kong's Hang Seng up almost 7.5 percent. Perhaps that's why we saw the thumbs-up in the class photo. Stocks also making steady gains across Europe this morning.

Well as we just mentioned, protesters are out for a second day in London, where world leaders are meeting at the G-20 summit. The scene so far nothing like yesterday, when protests turned violent. Some battled briefly with riot police.

John Rees was part of the peaceful demonstrations. He is the co- founder of Stop the War Coalition. And he joins us now live from London this morning. John, thanks for being with us. You protested yesterday at the U.S. embassy. Another day of protests today and you are also planning on organizing protests at the NATO summit in Strasbourg Kehl. What are you protesting?

JOHN REES, CO-FOUNDER, STOP THE WAR COALITION: I think in common with many millions of people around the globe, we are very, very worried about a world which seems to be increasingly both economically unstable and militarily unstable. And the secretary-general of the United Nations Ban Ki-moon writing in "The Guardian" this country this morning made precisely this connection.

ROBERTS: So it would seem too that the leaders share your concern about the problems with the economy, and certainly they are also trying to address the situation in Iraq and Afghanistan. So to some degree, are you not on the same page with these G-20 leaders?

REES: I think not. I think the talk of troop withdrawal in Iraq is overstated at the moment and, certainly, there are plans for very, very large numbers of U.S. troops to remain there. It seems to me almost indefinitely. And of course, in Afghanistan, the very opposite of troop withdrawal is happening. There are far large number of troops being deployed in the NATO summit this weekend, which immediately follows the G-20 meeting, that is precisely what they will be talking about.

So, no, I don't think they're in the process of solving those problems. In fact, as the American military now refers to AF-PAK, Afghanistan and Pakistan and the war seems to be spreading over the border I think we're going in and precisely in the wrong direction.

ROBERTS: Well, what do you think would happen if troops were pulled out of Afghanistan?

REES: Well, I think the Afghan people would have to sort their own affairs.

ROBERTS: And how do you think that would turn out?

REES: Well, however it would turn out, it's better than the colonial system where the major power simply because they are rich, simply because they have large amounts of armament at their disposal - I think they can help people in the third world...

One of the messages of the G-20 should be if you can't put your own economy in order stop telling other people how to run their own country.

ROBERTS: But do you think there will be a good chance that the Taliban could retake Afghanistan and would that be a favorable outcome?

REES: I think the only people who can decide whether or not the Taliban or somebody else should run Afghanistan are Afghanis. And until there is a domestic solution to these problems, there can't be no foreign imposed solution. What we're finding, of course, is that the Taliban have been massively strengthened by the foreign presence. They have united Afghanis behind them in a way they weren't before this invasion took place.

ROBERTS: All right. John Rees for us this morning. John, we'll be watching the protests very closely today. Thanks for joining us.

REES: You're welcome.

COSTELLO: You know, as we mentioned, Barack Obama attending the first official G-20 meeting right now. And now we're learning what Michelle Obama is up to this morning. Sarah Brown has just welcomed G-20 spouses and others, including J.K. Rowling at the Royal Opera House in Covent Garden and we just wanted to keep you abreast of all of what Michelle Obama is doing.

Turning our attention to economic worries here at home though. Dare we hope for a bright spot? New jobless claims out moments ago. We will break them down for you. That's just ahead. And President Obama is accomplishing a lot of the G-20 summit so far but Mrs. Obama seems to be making an even bigger splash. A first lady frenzy, if you will. While, she is taking London by storm. It's 34 minutes past the hour.

(COMMERCIAL BREAK)

ROBERTS: Thirty-seven minutes after the hour. And just in to CNN, new numbers on jobless claims. Our Christine Romans is breaking them down for us. And we were hoping for some good news today but, unfortunately, didn't get it at least in the big picture. CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: A surprising jump in the number of people who filed for first-time unemployment benefits in the last week. 669,000 people lining up for jobless benefits for the first time. And the other number that we look at here is something call continuing jobless claims. This is basically the number of people that are getting a check from the government for jobless benefits.

It is a record again -- 5.728 million. These are a lot of numbers, folks. But what this tells you is that the labor situation remains very weak here. Tomorrow, we're going to get the big granddaddy monthly report and we are expecting that to show, you know maybe 700,000 jobs lost in the month of March. So we know that the situation remains kind of tough. I dug in here and dug in here, Carol, for a bright spot for you. And I found one.

There were fewer people signing up for jobless benefits last week in Texas, 4,000 fewer than the week before. And it looks like the pace of layoffs was slowing down a little bit in Texas and a couple of other states as well. So there are places where you're seeing at least week-by-week the trends, kind of slow down a little bit.

COSTELLO: I love that that you dug for good news because you know, I always make fun for being the grim reaper in the morning, sometimes.

ROMANS: There is something going on in Texas, I will say. Because in some of these states, there are lower than average unemployment rates and there is something happening in Texas where it's been able to weather a little bit better than other states.

ROBERTS: Christine, thanks for that.

ROMANS: Sure.

ROBERTS: In light of these jobless numbers, what's going on right now. The G-20 summit in London is especially important to you here at home. How? Here's a little more in an "AM Extra." Some economists say the biggest thing that could from come from the summit is renewed consumer confidence.

If all of these leaders can sit down and show they are on the same page for reviving the economy, that could inject a little more stability into the global market. The G-20 should also allow leaders to propose new regulation for better policing big banks and private financial companies though there was a disagreement how much between the U.S., Germany and France. The summit will also focus on boosting aid to help developing countries around the world.

COSTELLO: What is with the frenzy over the first lady? Because I mean they love her in London. They really love her. Even the queen seems powerless to resist Mrs. Obama's charm. It's 39 minutes past the hour.

(COMMERCIAL BREAK)

(MUSIC PLAYING)

COSTELLO: The president has made major inroads already at the G- 20 summit, but the frenzy over the first lady could be stealing the show. Today she's at the Royal Opera House and visiting an all-girls school and joining me now on why Michelle mania is taking over London is "Washington Post" style reporter Robin Givhan. Welcome.

ROBIN GIVHAN, STYLE REPORTER, "THE WASHINGTON POST": Thank you.

COSTELLO: So, you know, this is about more than fashion, isn't it? I mean, we watch what Michelle Obama, you know, is dressing in, but it's more than that, isn't it?

GIVHAN: Sure. You know, it's about the symbolism of so many of these events. It's about a sense of national pride. And what she represents as she goes abroad. And I think, to some degree, the reason that we're sort of breathlessly waiting to see how she is received is because I think there is still a little bit of intimidation when Americans sort of look at how they are perceived in Europe.

I mean, we, as a lot of women, still believe that the French know something incredibly mysterious about how to look good and do great things with a scarf. So I think there is a little bit of that going on as well.

COSTELLO: So before we jump into the fashion part, let's talk a little bit about what exactly Michelle Obama is doing. She is visiting an all-girls school today.

GIVHAN: Right.

COSTELLO: And that's really part of the persona that she wants to build in this country and throughout the world.

GIVHAN: Yes, I think it's very consistent with the things that she has done so far as first lady. She has clearly shown an interest in wanting to reach out to people who may feel they have been disenfranchised or held at a distance from the power structure. I think she also really wants to underscore her own background and the idea that this person who comes from very modest means, who comes from a minority group can rise through the ranks of her own effort, and, you know, get to this point. I think that is also something she is trying to say.

COSTELLO: So she builds this very strong respected persona. How could this help her husband lead the country and talk with world leaders?

GIVHAN: Well, I think some of it has to do with the idea of sort of a charm offensive. You know, which helps people to get more human side of the administration. And also I think that for many people there was to some degree, a sense of being closed off to the rest of the world or closed off to those who are kind of outside of the mainstream by other administrations and I think this is a way of trying to build those bridges in a way that is very nonconfrontational and a way that people can understand no matter where they are coming from.

COSTELLO: OK. Let's jump into the fashion for just a second because we can't neglect that. I know that the French president's wife isn't there, Carla Bruni.

GIVHAN: Right.

COSTELLO: But Michelle Obama will be meeting with her in France, I think, tomorrow, right?

GIVHAN: Yes.

COSTELLO: And of course, Carla Bruni and Michelle...

GIVHAN: There is no competition.

COSTELLO: People are saying it's going to be this fashion smackdown.

GIVHAN: Right. It's like an "I Love Lucy" episode and they are ripping brooches off each other. Now I don't think that's going to happen but I do think that people are curious about is that Carla Bruni has really embraced the highest levels of French fashion. She wears Dior. She wears Hermes. These are brands that do not make any attempt to sort of make themselves available...

COSTELLO: No one can afford that...

GIVHAN: Exactly.

COSTELLO: Except someone with inherited wealth like Carla Bruni.

GIVHAN: Exactly. But I also think she represents in many ways how the French people feel about their fashion industry. It is a source of national pride. And for Americans that are grappling with the idea of fashion, still perceiving it as something that is a bit elitist, I think that's going to be sort of the tricky thing that Michelle Obama has to negotiate.

COSTELLO: Yes. We'll hope she wears J. Crew. I think that would be a cool thing to do. It's like sticking it right in her face. Thank you so much for joining us this morning.

GIVHAN: My pleasure.

COSTELLO: Appreciate it. John.

ROBERTS: Well, the queen's new gift of an iPod came fully loaded including footage of her majesty's last visit to the U.S. during the Bush administration, when the former president almost accidentally said that the queen helped celebrate America's bicentennial in 1776. He got the 17 part out before correcting himself.

The royal iPod was also filled with 40 show tunes form popular Broadway shows, including Ethel Merman's "There's No Business Like Show Business" from "Annie Get your Gun," some fitting titles like "Diamonds are a Girl's Best Friend" and some ironic ones like "The Best of Times."

COSTELLO: I think it's a nice gift even though the queen had two iPods already.

ROBERTS: Apparently, it's her third iPod.

COSTELLO: But she is a technophobe. Not a technophobe, I'm sorry. She is technically savvy.

ROBERTS: Right. She's a techie. Apparently she has a BlackBerry just like President Obama's. Do you think she got his e-mail? There is this morning's question.

COSTELLO: That's right. She could have his e-mail address.

ROBERTS: Yes.

COSTELLO: I should have ask the royal watcher then.

ROBERTS: Hives, name-brand outfit, and some really dumb protesters. A look at the highlights and low lights from the G-20 summit in London. It's 47 minutes after the hour.

(COMMERCIAL BREAK)

(MUSIC PLAYING)

ROBERTS: Forty-nine minutes now after the hour. Let's fast forward to stories that will be making news this morning. Former Atlanta Falcons quarterback Michael Vick is expected in court today in Virginia. The judge wants to know more about his bankruptcy plan, which is based on Vick's goal of resuming his football career after he gets out of prison for bank rolling the dog fighting rink.

Indictments could be filed against former Illinois Governor Rod Blagojevich as early as today. Today is the last scheduled day that the grand jury meets before the April 7th deadline for filing the indictment. Sources close to the investigation say Blagojevich's wife and campaign committee are also possible targets. Blagojevich is accused of trying to sell President Obama's former Senate seat. He denies any wrongdoing.

In just about 10 minutes time, a tsunami warning will go out along the Eastern seaboard. Don't worry, it's only a test after a simulated earthquake in Puerto Rico. It's the first-ever test of the tsunami warning systems in the Atlantic and Gulf of Mexico, designed to alert coastal communities of the potential danger from huge waves caused by earthquakes.

And the CNN weather radar this morning indicating the threat of severe weather in the South and the Midwest, with thunderstorms and tornadoes possible in parts of Alabama and Tennessee. So stay tuned to either your local television station, to the radio, or if you've got one of those NOAA weather radios, make sure that it's functioning today -- Carol. COSTELLO: Thanks, John. It's Thursday. That means it's time to open up Sanjay's mailbag. Dr. Sanjay Gupta, live at the CNN center this morning. Good morning, Sanjay.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Good morning, Carol.

COSTELLO: So, am I supposed to read the question here?

GUPTA: Yes.

COSTELLO: It's about kidney stones.

GUPTA: Got the new gal anchoring today.

COSTELLO: I know...

GUPTA: Come on.

COSTELLO: I try my best. Anyway, I know that you take your questions from your Twitter followers, right?

GUPTA: Yes.

COSTELLO: And they are asking this question this morning, what are the primary causes of kidney stones and how can you prevent them?

GUPTA: Well, in full disclosure, I've had a kidney stone, so I can speak this a bit as a doctor but also as a patient. And anybody who has had a kidney stone knows this can be very, painful. Oftentimes a lot of pain sort of in your flank region but it's a pretty distinctive pain, sort of shoots down and shoot up into your rib area down as well. Small stones will typically pass without much problem. You'll get the pain but there won't be much of a problem beyond that. Larger stones sometimes need surgery.

The good news is these kidney stones, while they are very painful, hardly ever cause any long-term damage. Most importantly, for people who want to avoid kidney stones in the first place, there are a few things you can do. First of all, think about just drinking a lot more water. If you're someone who doesn't drink enough fluids, think about this. Also limiting caffeine. Caffeine can sort of act as a diuretic which can be dehydrating as well and alter your diet.

Carol, there are typically two types of kidney stones. There are calcium stones and uric acid stones. Calcium stones are the most common and when you alter your diet for those, you want to avoid foods like beets, soy products, almonds and certainly things with a lot of calcium in it as well. So those are some tips from Ma Parker, I guess, from our tour cam. Thanks.

COSTELLO: Oh, I'm glad I never had a kidney stone that is I have to say. For more medical information, just go to our blog at cnn.com/amfix. You can read more from Sanjay, you can send in your own questions and Sanjay might answer those questions next Thursday. ROBERTS: Head-bangers in the streets of London. A look at protests and protocol at the G-20 summit. Our Jeanne Moos gives all the royal treatment. The president's pick is still alive. So how is he going to catch the NCAA championships, the final four in Europe? The White House says the matter has come up. Is there a plan? Find out next. It's 52 minutes after the hour.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": You know it's an awkward moment yesterday as President Obama was leaving to go to the G-20 summit. Hillary Clinton called and said, can I run the country please? Can I? Can I? Please?

(END VIDEO CLIP)

COSTELLO: Oh, they just won't let the Hillary jokes go.

You know, President Obama's NCAA pick is still alive, UNC. Of course, as you know, the president is in Europe during the Final Four on Saturday, and he is only heading back home on Monday, the day of the championship game. White House Press Secretary Robert Gibbs says this important matter has come up.

(BEGIN VIDEO CLIP)

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: We've already had high level meetings about how it is we're going to watch the Final Four in the final game. I'm not entirely sure we've come up with a satisfactory outcome.

UNIDENTIFIED MALE: Is that going to be on the record? Are you going to tell us about that?

GIBBS: We'll bring you senior administration officials to brief you on those meetings. No. We've got to figure out some way to watch -- some way to watch the finals.

UNIDENTIFIED MALE: Are you going to be able to do that?

GIBBS: We're working on it. The last thing...

UNIDENTIFIED MALE: I bet you are.

GIBBS: The last thing we want to hear is just what the final score was and not see the game. So, we're working on that.

(END VIDEO CLIP)

COSTELLO: Tivo! You know North Carolina is the president's pick, and North Carolina is still in it.

ROBERTS: Yes. Boy, he is getting a lot -- involved in a lot of NCAA stuff. He's ringing in the BCS and how you pick the rankings for the football teams. Final Four.

COSTELLO: He wants control over everything.

(LAUGHTER)

ROBERTS: Now you said that, not just me. So just forget the global economic crisis, London's G-20 summit is all about first lady fashion, palace protocol, and some hardheaded protesters? CNN's Jeanne Moos looks at the summit's highs and lows.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): While some of the language outside was salty...

UNIDENTIFIED MALE: (EXPLETIVE DELETED) man.

MOOS: ... inside, Barack Obama was practicing his languages, copying Russia's president saying thank you.

B. OBAMA: (SPEAKING FOREIGN LANGUAGE) I'm still working on my Russian.

MOOS: Saying hello in Arabic. All that shoving involving protesters...

UNIDENTIFIED MALE: Move back!

MOOS: ... contrasted with the touchy-feely moments inside. President Obama with the British prime minister, Obama with Hillary, Sarkozy with Hillary, Michelle Obama and the queen, a meeting the first lady had been contemplating.

B. OBAMA: Michelle has been really thinking that through.

MOOS: Mrs. Obama began the day in a J. Crew cardigan and a pencil skirt. J. Crew says the sweater sold out in no time. But what to wear to Buckingham Palace to see the queen? Hillary Clinton wore a pantsuit. German chancellor Merkel wore pants, while the queen wore white gloves.

And Mrs. Obama? She wore an Isabel Toledo dress covered by another J. Crew cardigan in cashmere, $158. But the cardigan disappeared at the next stop at the 10 Downing Street dinner. Mrs. Obama brandished her biceps.

MOOS (on-camera): And then there's the minor matter of how to greet the queen. Is it curt not to curtsy?

(voice-over): Some did curtsy. Some bowed, including U.S.Treasury Secretary Geithner. The president bobbed and Mrs. Obama shook hands. As a gift, the Obamas gave the queen an iPod, loaded with video and music from her majesty's 2007 trip to the U.S.

The world leaders attracted fans and fanatic protesters, who tried to let the air out of police vans and literally broke the bank, though photographers shooting the melee outnumbered the window breakers.

UNIDENTIFIED MALE: You're giving us all a bad name!

MOOS: Some snatched police hats and danced in them. The favorite slogan was "Eat the Bankers." This protesters just ate his meal in the middle of the street.

(voice-over): There was one demonstrator who primarily demonstrated how dumb he was. He used his hard hat to try to break the glass, ended up cutting his hand, let out nerve-racking screams. But his dumbest move was this. Now that's the summit of stupidity.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

ROBERTS: Trying to break the window with your head.

COSTELLO: He had a hard hat on!

ROBERTS: He did.

Thanks so much for joining us on this AMERICAN MORNING. We will be back again bright and early tomorrow. Hope you will join us.

COSTELLO: I hope so too. Right now, here's CNN NEWSROOM with Heidi Collins.