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American Morning
Banks to Get Stress Test Results; Markets Rally; Obama Meets Israeli President Shimon Peres; John Edwards Under Investigation on Campaign Spending; Taliban Vows to Kill U.S. Soldiers in Afghanistan; Rush Limbaugh Defends Sarah Palin; Autism Study Examines Role of Head Size
Aired May 05, 2009 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Thanks very much for being with us. We're crossing the top of the hour now. It's Tuesday, it's the 5th of May. It's -- wait, what day is it?
KIRAN CHETRY, CNN ANCHOR: Now you're scaring me. It is Tuesday. It's Tuesday, all day.
ROBERTS: It's Tuesday, yes. It's Cinco de Mayo, not Cinco de Quatro.
Thanks for being with us this morning. I'm John Roberts.
CHETRY: And I'm Kiran Chetry. Sleep deprivation's certainly set in today. Here's what's on the agenda, though. We're breaking down stories for you in the next 15 minutes.
It's a huge day for the economy. The nation's largest banks getting their stress test results today. The government will be talking about the stress test today. Results still going to be trickling out, but whether or not 19 banks may need more taxpayer money to weather the recession.
Middle East peace will be the focus of the White House today. For the first time as president, Mr. Obama will be meeting with Israeli President Shimon Peres. The administration is pressing for a two-state solution between Israel and the Palestinians, hitting a bunch of roadblocks along the way already though. Israel is also expected to emphasize the threat from Iran.
And Elizabeth Edwards is sitting down with Oprah, opening up about her husband's affair. The sex scandal could now put John Edwards in some legal trouble.
Federal investigators want to know more about the cash that John Edwards' campaign paid to a production company that was owned by his former mistress. Edwards and his wife deny any wrongdoing. CNN senior legal analyst Jeffrey Toobin will be taking a closer look at that investigation.
ROBERTS: You know, I absolutely knew it was Tuesday. I just wasn't confident of it.
We begin this morning with glimmers of hope. Wall Street seeing a pulse in the economy. It's something that you may have noticed in your 401(k)s.
The Dow surging, up 214 points, the highest point of the Obama administration. Right now, stocks overseas trying to keep the rally alive.
Japan's Nikkei broke even. Stocks in Hong Kong eked out a 39- point gain, and London's FTSE surging three percent. The broader S&P 500 index, something most of your 401(k)s are tied to, back in positive territory for the year. It surged past 900 for the first time since early January and is up 35 percent from its lows in March.
And new incentives on the way from Chrysler. The now bankrupt member of the big three is expected to announce a new program to get you to drive home a new car. Industry insiders say it could involve big cash incentives for dealers which could translate into showroom deals.
Our Christine Romans following this good news this morning, and she joins us now "Minding Your Business."
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Can you believe it, the S&P 500 is now back in the black for the year. That's the broadest sort of gauge that's tied to our 401(k).
ROBERTS: This is why I got screwed up in the days of the week because, you know, my sequence has been bad news Monday, bad news Tuesday, bad news Wednesday. You get some good news thrown in there somewhere, I'd like to -- screws me up.
ROMANS: I know. Well, look. There's still a lot of bad news but there's a fact that there's little glimmers of good news out there so people keep focusing on, frankly. And the stress test that the banks are going through come out Thursday and we're going to know more about that because the feeling in the market, the feeling among people that, look, there might be some banks that have to raise more money. The government might say you need to raise more money. Maybe they'll be able to do that, but nobody's insolvent here. Maybe the situation is a little bit better with the banking system than we thought.
So, let's talk about the S&P 500 up 35 percent from those March lows. Gosh, you saw that chart, John, that you showed on the wall. It's just incredible.
A big "Z" (ph) snapback, up 34 percent. Some signs of life in pending home sales. Still have these stress tests to get through. Think of it like this.
You know, you get on a treadmill, and you know, it's meant to see how much stress and how much, you know, aggravation your system can take. Well, that's what they're doing to these banks to see, you know, how much more that they can take and what would they need (ph) in the worst case scenarios. And so that's what we're going to find out from the banks.
Now, Kiran, you asked me a question when I was up here last hour. You said, so you know, where are we compared with, you know, the whole -- the whole stock market rally?
CHETRY: Because people are very worried about their 401(k)s, people are getting ready for retirement especially. And, you know, the people who held tight for the long haul then it was a little bit too late for them to pull out. So where are we now? Are we OK?
ROMANS: They're still down 42 percent from the October highs. And the S&P 500 is still down. No, not everybody's portfolio is straight stock.
ROBERTS: But they're not down 47 percent which they were a couple of weeks ago.
ROMANS: That's right. They're not down 47 percent.
ROBERTS: Things are looking up.
ROMANS: So John is going to look for the bright side on Wednesday, Thursday -- no, Tuesday, John, this Tuesday. Now, we have three more days to get through this, but it has been an incredible rally. It really has.
I mean, you can't pick a bottom in either the economy or the stock market. But things at least looking further out, people are saying things look a little better.
ROBERTS: It'll be nice to think things are beginning to turn around a little bit.
ROMANS: Yes, could be.
ROBERTS: It would be a good thought for a Tuesday morning.
Quick footnote to some of the economic optimism this morning. Two top federal officials are jumping on the upbeat bandwagon saying the recession could end this year. One of them, Richmond Federal Reserve President Jeffrey Lacker, even upped the ante saying that we will see growth by the end of this year.
CHETRY: All right. Well, it isn't the economy topping today's agenda at the White House. President Obama is sitting down with Israeli President Shimon Peres. The two will discuss Iran's saber- rattling as well as the possibility of a two-state solution to try to bring Israeli and Palestinian peace.
Our Suzanne Malveaux is live at the White House this morning. So, you know, as we were talking about with Jamie Rubin, who's a former assistant secretary of state, there's a lot of challenges ahead for this administration in dealing with both problems on the Israeli side as well as the Palestinians.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: And, Kiran, you know, it's really a unique opportunity here. It's a unique time.
There is a new Israeli leadership, so the Obama administration is going to a place where so many other administrations have failed before. And so they're trying to make this a priority early on in the administration to give a better chance of this whole thing succeeding.
(BEGIN VIDEOTAPE)
MALVEAUX (voice-over): For President Barack Obama and Israeli President Shimon Peres, it's a first step.
SHIMON PERES, PRESIDENT OF ISRAEL: Let me make it clear, we trust the leadership of President Obama.
MALVEAUX: The two leaders top priority, peace in the Middle East starting with the Israelis and Palestinians.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I am a strong supporter of a two-state solution.
PERES: I have a simple question. Why wait? Israel is prepared today to bring peace closer. Today.
MALVEAUX: But even the Israeli leadership is split over whether that's even possible. Israel's newly elected prime minister, Benjamin Netanyahu, has not endorsed the two-state solution. Mr. Obama would like that to change.
OBAMA: My hope would be that over the next several months that you start seeing gestures of good faith on all sides.
MALVEAUX: Already, some Arab states are encouraged by Mr. Obama's early outreach to the Muslim Arab world.
KING ABDULLAH II, JORDAN: That has gone down extremely well, and really begins, I believe, a new page of mutual respect and mutual understanding between cultures.
MALVEAUX: But Iran continues to threaten the region with its nuclear ambitions. The U.S. and Israel believe the regime is intent on developing nuclear weapons.
PERES: Iran is not threatened by anybody.
MALVEAUX: But President Obama believes opening a dialogue with Iran's regime could change its behavior.
OBAMA: Tough, direct diplomacy has to be pursued without taking a whole host of other options off the table.
MALVEAUX: Former Republican House Speaker Newt Gingrich slammed the president's approach telling the "Jerusalem Post" it was a fantasy, part of a policy very dangerous for Israel. But Peres told CNN's Wolf Blitzer he didn't have a problem with Mr. Obama reaching out to talk to Iran's leader.
PERES: Look, if they'll be successful, God bless them. Who wants a war? We're not crazy.
(END VIDEOTAPE) MALVEAUX: And, Kiran, obviously Shimon Peres, a very well- respected elder statesman but really has a ceremonial post. It is the newly elected prime minister, Benjamin Netanyahu, has much of the power.
And as we had mentioned before and Jamie Rubin as well as you had mentioned, is that he is not advocating at this time a two-state solution. So you can see where the problem begins. Obviously this is a six-decade-long conflict and the Obama administration is just getting started here -- Kiran.
CHETRY: All right. Suzanne Malveaux for us this morning. Thanks.
ROBERTS: New this morning, the June 30th deadline for U.S. combat troops to leave Iraq is being called non-extendible, according to a spokesman for Iraq's prime minister. The departure of armed combat troops is important psychologically to many Iraqis who are eager to regain control of their country after six years of war. But a commander in the north up in Mosul says he may not be able to make that deadline because of lingering violence.
We may have turned a corner with swine flu in Mexico and the U.S. The countries in the southern hemisphere like Australia could get slammed next. Flu spreads more easily in the winter. It's already fall there. Experts fear that swine flu and regular flu may collide there, causing two outbreaks at once.
And exactly what type of legal trouble could John Edwards be in if an investigation into his presidential campaign spending ends badly? Our senior legal analyst Jeffrey Toobin will break it all down for us.
It's coming up now on nine minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: All right. Good morning, Nashville. This is coming to us courtesy of WKRN, our affiliate there, where it's cloudy and 59 right now but shaping up to be a pretty decent day there, sunny and 76 degrees.
Meanwhile, it is 11 minutes past the hour. We fast forward now through the stories that will be making news later today.
At 3:30 p.m. Eastern, the man who attacked the pirate with a knife and held him hostage during the attack on the Maersk Alabama will tell his story at a congressional hearing. Congress is examining piracy on the open seas and the different measures that ships can take to protect themselves.
Meanwhile at 9:30 a.m., Vice President Joe Biden will be making some closing remarks at this year's conference of the American Israel Public Affairs Committee, or AIPAC, as it's called. Senator John Kerry is also scheduled to speak at that event. And stress test results for the bank today. Fed Chair Ben Bernanke and Treasury Secretary Tim Geithner will make the official announcement on Thursday, but the banks will be briefed today on just how much capital they'll be expected to raise.
And that's what we're following this morning -- John.
ROBERTS: A sex scandal ruined his reputation. Now, former presidential candidate John Edwards could be in legal hot water. Federal investigators want to know more about the money his campaign paid to his former mistress. It's over $100,000. Here now to take a closer look in the investigation, senior legal analyst Jeffrey Toobin.
Good morning, Jeff.
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Good morning, sir.
ROBERTS: So $114,000 was paid by John Edwards campaign to Reille Hunter, his mistress, for video production services. That's what the money was actually going toward. Is there a problem here?
TOOBIN: There is no scandal if that's the case. The good news for John Edwards legally is that Reille Hunter did in fact work for the campaign. So, payments to her might have a legitimate explanation. There is a certain pattern in the payments and the amount is such that there are certain suspicions, but, if it's simply payment for video services, there's no scandal.
ROBERTS: Right. So, how difficult will it be to prove that these were not legitimate payments, if, in fact, they were payments to her as his mistress under the guise of legitimate services provider?
TOOBIN: Well, that's where the detailed investigation comes up. And there's always at least one occasion where it does look like there's a very suspicious pattern.
He had a pact as well as a campaign. At one point, there was a $14,000 payment from the campaign to the PAC and the form says it was for furniture services. At almost the same time, that PAC then paid Reille Hunter $14,000 suggesting that money might have been laundered from the campaign through the PAC to real hunter. The question, of course, is will the campaign, will the people who cut the checks have a legitimate explanation for what looks like a curious transaction?
ROBERTS: You know, in politics, you don't necessarily have to actually deliver something concrete either. You know, it could be a consulting fee, it could be anything. You could say, well, we tried to make a spot and it didn't work. We incurred a cost of $14,000. It hit the cutting room floor and never saw the light of day. I don't know where it is.
TOOBIN: Exactly. And campaigns are almost by definition kind of disorderly operations. They don't always have perfect recordkeeping. We don't put people in jail for those kinds of mistakes.
If, however, this was the only transaction within months regarding this PAC and that sort of amount, it again begins to raise suspicions. But this is why we have...
ROBERTS: So, you say we don't put people in jail for certain political things.
TOOBIN: Correct.
ROBERTS: Do you put people in jail if you laundered money through a PAC from a campaign to a mistress?
TOOBIN: Absolutely. The law is clear that if you have campaign money in a PAC or in a campaign itself, it can't go for personal use. You can't put it in your pocket. You can't give it to your mistress. You can't give it to the charity of your choice.
There are certain broad rules about what you can do with campaign money and giving it to a girlfriend or keeping it yourself is clearly illegal, and there have been prosecutions for that. Not often, but it has happened.
ROBERTS: All right. Jeffrey Toobin for us this morning breaking it all down.
Jeff, good to see you. Thanks -- Kiran.
CHETRY: All right. Well, Mitt Romney takes a shot at one of his own and then Rush Limbaugh comes to her defense. So what does Sarah Palin still seen wide as she seem to be such a lightning rod in her own party? We're going to talk about that.
Also the leader of the Taliban in Afghanistan vowing to kill every U.S. soldier in the country. Our Nic Robertson gets a one-on- one interview with a high-ranking spokesman for terrorists. It's an interview you'll see only on CNN.
Fifteen minutes past the hour.
(COMMERCIAL BREAK)
CHETRY: All right, beautiful shot this morning from our -- one of our cameras from a viewer in London. Isn't that pretty? Makes you want to go there, doesn't it?
It's afternoon right now. It's partly sunny, 55 degrees in London.
Well, a chase scene gets too real on Broadway this morning. Take a look. This is video from the "New York Post."
A Ferrari jumping a curb crashing during a shoot for an upcoming Nicholas Cage movie in Times Square. The sports car took out a lamppost as you see there, a newsstand, and right in front of a Sbarro's pizza. That was not what was supposed to happen.
One onlooker was actually knocked to the ground. You can see a lamppost landed on the right leg of another bystander. But the "Post" says that both of them were hospitalized, neither though seriously hurt.
Time to check on some of the other top videos right now on CNN.com. A Georgia state patrol car in hot pursuit sped off the road and got tangled up in his power pole wire. The car was dangling precariously on that wire for a little while. The trooper made it out OK. No one was hurt in that accident.
Also, police in Troy, New York arrested this man who'd been on the run from the law since he broke out of jail nearly 29 years ago. He was serving time for robbery. Yesterday, he spoke with reporters and says he's been around the world and finally got caught "for now."
And the first lady announcing yesterday the very first White House summer intern program. Lucky students from the D.C. public school system will get the opportunity to spend their summer working at the White House with the president and the first lady.
ROBERTS: The Taliban in Afghanistan is vowing to fight U.S. troops promising to kill every soldier the Pentagon sends there. The secretive spokesman for the Afghan Taliban leader, Mullah Omar, sat down for a rare and exclusive interview with CNN.
(BEGIN VIDEO CLIP)
ZABIULLAH MUJAHID, SPOKESMAN FOR TALIBAN LEADER MULLAH OMAR (through translator): I will clearly tell you if there are more, we will kill them more. If there are few, we will kill them few. If the Pentagon is thinking of changing its policy, we, too, are thinking of changing the policy. If they want to send 20,000 to start a new campaign, this is a war. And we will see the war and make our policy.
(END VIDEO CLIP)
ROBERTS: Our senior international correspondent Nic Robertson landed the amazing one-on-one, and he joins us now live from the Afghan capital.
Nic, how does the spokesman think that the Taliban can win against the world's most powerful army?
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: You know, John, when I asked him that question, he was laughing about it, actually laughing. I said why are you laughing? He said, look, the United States may have the most sophisticated equipment in the world, unmanned aerial vehicles, capable of firing missiles, huge bombs that they can drop on us, he said, but this war is being fought on the ground.
We've got suicide bombers, roadside bombs. We know the terrain and we can win it. He said the main thing, he said essentially was we're not afraid of dying. He said we've got volunteers that will come forward, fight and die. And that's why, he said, they're not afraid of losing. He went on to say that Afghanistan will be President Obama's Vietnam -- John.
ROBERTS: Nic, you also asked about him upcoming elections in Afghanistan. Let's listen to a little bit of that.
(BEGIN VIDEO CLIP)
MUJAHID (through translator): This is not election. It is selection. People are selected from the White House. This is just a joke. We ask from our Muslim brothers and our population not to take part in this election.
(END VIDEO CLIP)
ROBERTS: So, Nic, what does this mean for the elections? Can they be held? Will they be fully representative (ph)? And does the Taliban plan to disrupt them at all?
ROBERTSON: Absolutely. I asked them if they were going to disrupt them. He said we'll target parliamentarians. We'll target people that are working with officials to put the elections on.
He warned Afghans to stay away from these types of places because they're going to target them. He said they don't want to kill civilians. That sort of flies in the face. A lot of the evidence on the ground here, but it's a very serious campaign.
It appears to try and stop the elections or at least in some parts of the country where the Taliban holds sway, put people in fear so they don't come out and then perhaps target the polling stations themselves. That really puts in question how you could have an effective election for a president here and parts of a country are facing this kind of intimidation, John.
ROBERTS: Yes. One of the other questions you put to him too, Nic, was about the difference if there is one between the Taliban in Afghanistan and the Taliban in Pakistan. Let's listen to how he responded.
(BEGIN VIDEO CLIP)
MUJAHID (through translator): We do not want to interfere in the Pakistan-Taliban affairs. We are asking the Taliban and our policy is clear against the foreign troops. The second thing, yes, sympathies between the two sides is there. Yes.
(END VIDEO CLIP)
ROBERTS: So, Nic, curious, what did he say about the relationship between the Taliban and al Qaeda?
ROBERTSON: Close ties is the relationship that the western intelligence officials worry about most, about people coming with al Qaeda, getting training in Taliban camps and then taking that military expertise back to the United States, back to Europe. He said, look, we're the boss in this country. We're fighting for the liberation of Afghanistan. This is a national fight. Our relationship with Al Qaeda is we'll take their support, we'll take their help. But we determine what happens here and we don't tell them what to do. He said we are getting plenty of foreign fighters though coming from the al Qaeda pipeline if you will, and from other places. Then he said, we don't even need those fighters.
This was a very, very strong and bold and I have to say articulate and clearly thought through position by the Taliban that they really will continue this fight here against what are obviously incredible odds. They seem committed and no point of backing down.
But I did ask him if they could win by military means alone. And he did say that, yes, the Taliban believes that they will come a point where they do have to sit down and get into talks. Of course, that terms for those talks at the moment are not something anyone is going to give them -- John.
ROBERTS: A great interview for us, Nic. A wonderful opportunity to sort of peer behind the curtain there with the Taliban. Our senior international correspondent Nic Robertson live in Kabul this morning. Nic, thanks so much for that.
You can see Nic's entire exclusive interview with the secretive Taliban spokesman on "ANDERSON COOPER 360." That's tonight, 10:00 p.m. Eastern, only on CNN.
CHETRY: Alaska Governor Sarah Palin was a polarizing figure during last year's election. Well, now, she's being attacked and also defended by powerful members of her own party. We're following the back and forth just ahead.
And they don't see any silver lining. Many homeowners are still underwater and danger being left on the street. We'll follow one woman's emotional battle with the bank and why the president's plan may not help her at all.
It's 25 minutes past the hour.
(COMMERCIAL BREAK)
CHETRY: Twenty-seven minutes past the hour. Welcome back to the Most News in the Morning. Alaska Governor Sarah Palin still seems to be rubbing some members of her own party the wrong way. Rush Limbaugh actually defended the governor after Mitt Romney took a shot at Palin for making "Time" magazine's "100 Most Influential" list. Listen.
(BEGIN VIDEO CLIP)
MITT ROMNEY, FORMER REPUBLICAN PRESIDENTIAL CANDIDATE: There are a lot more influential Republicans. I think there are a lot more influential Republicans that I would suggest. But was that the issue on the most beautiful people or the most influential people? I'm not sure. If it's the most beautiful, I understand. We're not real cute.
(END VIDEO CLIP)
CHETRY: Joining me now is Jonathan Martin. He's a senior political reporter for the "Politico" and wrote an interesting article about this situation. So, Mitt Romney going after Palin. I mean, he was making a joke. But why would he do that?
JONATHAN MARTIN, SENIOR POLITICAL REPORTER, "POLITICO": Yes, he was laughing and smiling when he said it and his spokesman said that he was trying to be self-deprecating. But I think what is interesting about the comment -- humor or not, is those reflect what I think, Kiran, is a sense of deep unease among many GOP establishment types.
These folks, I think, recognize the grass-roots appeal that Sarah Palin has but are deeply worried if she is the face of the party for a couple of reasons.
First of all, in some cases, they're potential rivals of her. But secondly, I think they're worried about the polarizing nature of Sarah Palin. There's a considerable swath of this country that has no regard at all for Sarah Palin and probably never would. And I think that these folks are concerned about her being the face of the party. It's just very interesting that we're in May of 2009 and Sarah Palin is still able to sort of drive the conversation the way she is.
CHETRY: Yes, interesting because Rush Limbaugh also went off about it yesterday.
MARTIN: He did.
CHETRY: Let's listen to what he said to his listeners about the Mitt Romney comment.
MARTIN: Sure.
(BEGIN VIDEO CLIP)
RUSH LIMBAUGH, HOST, "THE RUSH LIMBAUGH SHOW": They despise Sarah Palin. They fear Sarah Palin. They don't like her either. She's -- according to them, she's embarrassing.
Clearly, in last year's campaign, the most prominent articulate voice for standard, run of the mill good old-fashioned American conservatism was Sarah Palin.
(END VIDEO CLIP)
CHETRY: Right. So, you know, Rush Limbaugh is somebody who's smart, who wants to advance the party...
MARTIN: Right.
CHETRY: ... at least the conservative ideals. But why is he defending Sarah Palin the way he is?
MARTIN: I think there are a couple of reasons. I think, first, Rush sees her as a truly charismatic figure who I think can speak the sort of old-time religion in a fashion that he doesn't see anybody else out there on a conservative landscape being able to do. But I do also think that there is something at play whereas I think Rush likes Sarah Palin because he sees a bit of himself in her in this sense. Liberals go crazy over Sarah Palin. They can't stand her. Similarly, they can't stand Rush Limbaugh and so I think Rush admires her in part for who her enemies are as well.
CHETRY: It's interesting though because you write there's almost a sense of exasperation among party elites over the media coverage of Sarah Palin and Rush Limbaugh, attention which, in Palin's case, is widely seen as a product largely of her good looks and tabloid-fodder family troubles.
MARTIN: Yes.
CHETRY: You know, but a largely issue about her stealing the headlines is, you know, asking the question if the GOP wants to rebuild who is their viable candidate in 2012, and what you've been talking about this polarizing nature.
MARTIN: Right.
CHETRY: As we've seen most people, the latest poll, 38 percent say I'm an independent. I'm not affiliated with either party.
MARTIN: Right.
CHETRY: That is not going to work for the Republican.
MARTIN: Exactly, Kiran. That is the concern that we would rally the grass-roots base of the party, the kind of folks who are activists republicans who show up at party fund raising dinners, who watch, you know, TV closely, follow the (INAUDIBLE) closely. But the sort of average voters, the nominal voters are going to have a tough time, you know, buying in to Sarah Palin.
I think that exactly is the concern that you're talking about. For us -- let me just fast mention something -- we talked to folks here in Washington who are Republicans and they really are exasperated. They think that Sarah Palin still gets the coverage she does, not because of merit or because of any ideas that she's throwing but because she's something of even a diversion, that is good fodder for the media because she has this, you know, one family travail after the next.
That's the reason she gets coverage. They view her increasingly as a distraction to their larger process of rebuilding but there are folks in the party like Rush who say, no, no, no -- she is the one who is out there, the one true figure who can really articulate our message. So it's a fascinating sort of conversation going on right now. Largely overshadowed by President Obama, of course, but still fascinated nevertheless.
CHETRY: Right, absolutely. All right. You can read more about it on the "Politico" Web site. Jonathan Martin, thanks.
MARTIN: Thanks, Kiran.
CHETRY: John. ROBERTS: Thirty-one minutes after the hour. And here are the top stories we're tracking for you this morning.
Four Americans can still be under quarantine in China because of swine flu fears there. Officials at the U.S. Embassy in Beijing are being tight-lipped this morning, only confirming that two Americans are still under quarantine.
An embassy spokesman would say that -- would only say that one couple was in Beijing, the other two people in a southern province. Markets overseas surging this morning after Wall Street's solid start to the week. The biggest gains are in London, where the FTSE is up three percent now. In yesterday's session, the Dow closed up 214 points. That's up over 2.5 percent. Japan's Nikkei is closed today and again tomorrow because of public holidays.
New video this morning of the Somali pirate attack on the U.S. ship last month that shows a speedboat heading away from the Liberty Sun after firing a rocket-propelled grenade. Later you can hear gunshots as the crew ducked for cover. The pirates took off. All the members were OK. The video is going to be shown today in a Senate hearing on preventing pirate attacks.
President Obama is scheduled to meet with Pakistan's President Asif Ali Zardari tomorrow. Right now his country is entrenched in a power struggle with the Taliban. Just this morning, police say a suicide bomber killed five people including one soldier on the frontlines of that battle. The violence is raising concerns in Washington that Pakistan's nuclear arsenal could fall into the wrong hands.
Hussein Haqqani is Pakistan's ambassador to the United States. He joins me now in Washington. And Ambassador Haqqani, thanks for taking the time.
Secretary of State Hillary Clinton at a hearing not too long ago described Pakistan as a mortal threat to the world because of its failure to contain Taliban insurgents and other extremists. My question this morning is, why can't the civilian government of Pakistan put down the Taliban and root out Al Qaeda.
HUSSEIN HAQQANI, PAKISTAN AMBASSADOR TO THE UNITED STATES: I think that my answer to that would actually be a question. Why hasn't the United States with all the money at its disposal been able to put down the Taliban and Afghanistan since 9/11? The fact of the matter is that these guerilla fighters, they come in one place, fight, go away.
So, the important thing is a concerted effort and Pakistan and the United States are in fact planning to make that concerted effort. Pakistan, Afghanistan, and the United States will come up with a coherent plan. And once we work together, we will be able to do it. But I must warn your viewers, it's not going to happen tomorrow.
ROBERTS: Is the Pakistani military equipped to fight a counterinsurgency? HAQQANI: Pakistan's military, of course, has to worry about our eastern frontier as well as about the Taliban. I wish that our eastern neighbors would help us in this by decreasing the tensions between our two-countries and I think that the Pakistani military has some means but it needs greater means which I hope that the United States will willingly provide.
The most important thing is will. And John, please understand, the overwhelming majority of Pakistanis do not like the Taliban. They do not want the Taliban and they certainly do not want the Taliban to over run our country.
ROBERTS: Mr. Ambassador, many officials in this country shook their heads when the government of Pakistan signed that peace agreement with the Taliban in the Swat Valley. Many people not believing they would ever adhere to the language in that agreement. In fact, we saw them move into the Bruner province. Was it a mistake to sign that deal with the Taliban?
HAQQANI: John, it's important to understand that while fighting an insurgency, you have to have various levels of tactics and strategy. The important thing is that in this political area, the Taliban were gaining the support of the people and you have to drive a wedge between the people and the Taliban by appearing to at least engage those who wanted to lay down their arms, or claim that they would.
When they did not, now the people are turning back to the government saying it's the Taliban who have broken their word. So now if the government goes guns blazing, then the people will be on the side of the government. And I think in that sense, it was a good strategic move. Pakistan still has the means to go back and fight the Taliban in Swat as and when the need arises.
ROBERTS: But do you not allow them to become more powerful and therefore more difficult to dislodge from those areas?
HAQQANI: I don't think so. The most important thing to understand is that the United States is the world's militarily, world's most powerful nation and Pakistan is a nation that is committed to rooting out extremism, Talibanization in our region.
As partners, we can certainly contain the Taliban. The important thing is that we don't get in a shouting match with one another. Understand that we are in this together.
ROBERTS: A big worry about all of this, Mr. Ambassador, is the fact that you got nuclear weapons. Nobody on the outside is exactly sure how many you have. It's thought to be somewhere between 25 and maybe 55. But the Secretary of State said she was also concerned because those nuclear weapons are not all in one place.
According to her, they've been dispersed throughout the country. What can you say this morning to assure the American people that those nuclear weapons will never fall into the hands of the Taliban or other extremist groups? HAQQANI: I would only tell the American people that your own intelligence service, your own military knows perfectly well how safe Pakistan's nuclear weapons program is. Look, we did not acquire nuclear weapons to threaten the world. We acquired them because of the conventional superiority of our neighbor, with whom we've had disputes that we are trying to resolve.
And also because our neighbor has nuclear weapons. We have very good safety precautions and arrangement and, the American government knows that even though they express concern every now and them. And I think expressing concern is good because it keeps everyone on their toes. There's no threat...
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ROBERTS: Let me just ask you, Mr. Ambassador, if I could, to reconcile those two things. You said that the American government knows well how secure they are. But it seems the Secretary of State expressing that concern. And you're saying, well, they're just expressing concern to express it. Do you not think she's genuinely concerned?
HAQQANI: Well, I don't think I'm going to get into semantics on what "generally concerned" means, but I would just say that the American military, the American intelligence network knows. And the safety arrangements that are in place are arrangements that are known to both countries.
ROBERTS: Maybe you could clear up one point. Is there a plan, Mr. Ambassador, that if those nuclear weapons were to be threatened, and it looked like the Pakistani military could not keep them secure that the American military would swoop in and secure them?
HAQQANI: John, you know that diplomats never answer hypothetical questions. The need for that is unlikely to arise in the foreseeable future and unforeseeable future, I don't think you and I should scare the American public about it.
The important thing is it's the Taliban we are fighting and the Taliban certainly are not a nuclear-equipped group. They're a bunch of people who terrorize individuals, who terrorize villagers, and we will fight them, we will defeat them, and we will make sure that they do not become a threat to the rest of the world. And we need to root out Al Qaeda forever, Pakistan and the United States.
ROBERTS: Ambassador Hussein Haqqani, it's good to catch up with you this morning, sir. Thanks for taking the time, appreciate it.
HAQQANI: Thanks for talking to you, John.
ROBERTS: All right. We'll see you again soon.
CHETRY: Well, homeowners left behind their underwater to qualify for federal help. Now the banks are coming calling. We're going to follow one family struggle. It's 39 minutes after the hour.
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CHETRY: Yes, it's still night in Vegas. A shot coming to us courtesy of KLAS. Clear and 76 degrees. It's going to be sunny and 93 a little bit later today.
You know, the locals have been going bust, though, sometimes faster than tourists at the blackjack tables. The foreclosure capital of the U.S., still. One of President Obama's priorities in the first 100 days is to try to keep more people in their homes but many are still drowning and there's no relief in sight.
CNN's Allan Chernoff joins us now. You know, there's many people despite some of these programs, the federal government is trying to get up and running, that are falling through the cracks.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: And it's not only in Las Vegas, Kiran. The trouble really is that if you're having so much trouble paying your mortgage, the president's foreclosure prevention plan may be able to help. But if you dip underwater with little hope of ever being able to pay off your mortgage, the president's plan may not be able to offer much hope.
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CHERNOFF (voice-over): Meet Geraldine Nelson, a three-time loser in the refinancing game. Three times, she fell victim to unscrupulous mortgage brokers. As a result, her mortgage today is nearly doubled the $89,000 she borrowed to buy her home in 2000 when she was still employed. Collection agent calls are a constant irritant.
GERALDINE NELSON, FACING FORECLOSURE: Sell it, if you can't afford it, sell it. Where am I going to go? I have nowhere to go? I'm going to be moving my things on the street?
CHERNOFF: To pay her monthly mortgage requires paying 97 percent of her income virtually all of which come from social security. So Geraldine has been unable to make payments for months. And the foreclosure moratorium Chase Bank granted Geraldine is now expired.
NELSON: It is stressful. I have cried so many times, you don't know. Nobody would know how many times I've cried.
CHERNOFF (on camera): On March 24th, Geraldine's lenders sent her a letter saying she might be eligible for the president's new Making Home Affordable Program. Three weeks later the bank sent a letter saying it was beginning foreclosure proceedings immediately.
(voice-over): Her Bridgeport, Connecticut neighborhood is littered with homes that have already been foreclosed. To prevent Geraldine from being the next victim, her housing counselor Julissa Soto of ACORN Housing is asking Chase to make big concessions.
Drop Geraldine's interest rates by nearly six percent, down by two percent, extend the term by 10 years to 40 years and chop $30,000 off the principal. Even then, Geraldine's mortgage would still be too much debt for her to qualify under the Obama criteria for a loan modification. Chase would have to make an exception.
JULISSA SOTO, ACORN HOUSING COUNSELOR: Honestly, it's going to be hard. It's going to be really hard.
CHERNOFF: Chase won't speak to Geraldine's case, citing reasons of privacy but the bank says "we continue to modify thousands of mortgages each week to help families stay in their homes, but unfortunately there are some borrowers who do not qualify for the modification programs.
President Obama says his plan will help millions of Americans facing foreclosure but millions more may get nothing.
SHAUN DONOVAN, U.S. SECRETARY OF HOUSING AND URBAN DEVELOPMENT: This plan cannot help every single homeowner that's in trouble.
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CHERNOFF: Geraldine bought more house than she could afford and she allowed herself to fall victim to mortgage brokers who repeatedly put her in to bad loans like so many other Americans. While President Obama uses billions of taxpayer dollars to prevent foreclosures, the money is going to accomplish only so much. Some of the most vulnerable Americans are still likely to lose their homes. Kiran.
CHETRY: It's a sad situation. You feel for her. You really do.
CHERNOFF: It is tragic. And she is not alone. I mean there are so many people who were taken in by these vultures, who were masquerading as mortgage brokers.
CHETRY: Allan Chernoff, thanks. John.
ROBERTS: With the GOP trying to revamp the party's image, will democrats try and kick the republicans while they're down? We're talking to James Carville coming up in our next hour. It's 46 minutes now after the hour.
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ROBERTS: Forty-eight minutes after the hour. Rob Marciano tracking all of the extreme weather across the lower third of the country. This morning, he's at the weather center in Atlanta talking tornadoes and some pretty significant damage behind you there, Rob.
ROB MARCIANO, AMS METEOROLOGIST: Yes, there was only a couple of tornadoes yesterday, John, but this one touched down about 100 and change miles, west of New Orleans in a rural community. One woman actually was injured trying to run from her home to her mother's home. And obviously some of these damage are pretty significant and caught in that cross fire would do some damage. The tornado itself about 50 to 100 miles wide at times. We have a threat for tornadoes today. I don't think these would be tornadic, eastern parts of Georgia and through parts of South Carolina. Some thunderstorms rolling through that area. And more of a gentle rain across the Northeast. But I think this is going to start to fill in.
We'll see an area of low-pressure wrap around some moisture here. And as that happens, maybe some flight delays. Actually, let's talk about that. New York City metros, Boston, D.C., usual spots we'll see some flight delays and a threat for severe thunderstorms that could include potentially a big time hail and some tornadoes across well tornado alley later on this afternoon. John, back up to you.
ROBERTS: How's the weather there in Atlanta for charity golf tournaments today?
MARCIANO: You got a tee time?
ROBERTS: Not me, no.
MARCIANO: Not too bad, 40 percent to 50 percent chance of showers. But I think it will be a good bet if somebody will get wet here in the Atlanta metro area. If not today, certainly tomorrow.
ROBERTS: All right. Rob, thanks so much for that.
MARCIANO: OK.
CHETRY: Well, the invaluable first grandma. She keeps a low profile, but see how Sasha and Malia's beloved grandmother is getting adjusted to her new life at the White House.
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CHETRY: Fifty-one minutes past the hour now.
There's a new study finding out the size of your toddler's brain may be able to help experts predict if and when your child could develop autism. We're paging our chief medical correspondent Dr. Sanjay Gupta. There's a lot of interest. A lot of people wanting to know how do you tell if your child even has autism. So what is this new study showing us?
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: You know, for some time researchers have noticed that children with autism, while not having a noticeably larger head circumference than children without autism did seem to have it if you measure their head circumference.
And researchers at North Carolina decided to take it a step further, trying to figure out whether specific areas of the brain that were different. This is a fascinating new study. One of the first types of this type of study being done in children with autism. What they found specifically was when you start to peer deep into the brain, you spin that brain around and you look at an area called the amygdala. These are these almond-shaped areas that is sort of in the front of the brain. They are called subcortical areas.
What's so important about this particular area of the brain is that it is responsible for one's ability to process emotions, to process faces, to process threat and to put that all together, something known as joint attention behavior. What they found specifically, Kiran, is that children with autism, at least in this study, seemed to have amygdala that were about 13 percent larger than children without autism.
Again, the first sort of sign that maybe there is a structural difference at someplace within the brain. Also, interestingly if you sort of follow that study along, you find that at age four, while the amygdala grew fast between 0 and age two, it really didn't seem to change in size up to age four.
So again, this is an area of the brain that is responsible for your ability to process things. Like you told the child look at that clock, for example, a normal child would simply look at the clock. A child with autism may not be able to process that and may not be able to not be threatened by that as well. So early study, but an interesting one. Kiran.
CHETRY: So what's the take away for parents? I know when kids go for physicals, they measure the circumference of their head at every physical.
GUPTA: Yes, you know, I'm not sure that they know for sure yet what to do with this. Although again when we're talking about autism there are so many different factors that seem to come into play here. If there is a structural difference like they seem to point to and figure out when the structural difference changes.
So the next step, for example, for researchers is to maybe do these MRI scans early to find out if a child is born with a larger amygdala, or is there some predisposition to it, or does it just happen after a child is born. It's just unclear.
I don't know that there is a -- you know, this is going to lead to a therapy yet, but, you know, again, trying to figure out autism, trying to unlock this mystery is I think the goal of a lot of researchers out there.
CHETRY: All right. Sanjay Gupta, thanks for the info.
GUPTA: Thank you.
CHETRY: Protecting Pakistan's nukes, the Taliban is making new gains in that country right now. What will President Obama say when he meets Pakistan's president tomorrow? We'll take a look at what could be the president's biggest security challenge.
And Pennsylvania Congressman John Murtha coming under scrutiny this morning. "The Washington Post" uncovering his nephew received $4 million in Pentagon work. For what exactly? And what does Murtha's nephew have to say about it? We'll talk with reporter Carol Leonnig, who broke this story, coming up. It's 55 minutes after the hour. (COMMERCIAL BREAK)
