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American Morning
New Day in Egypt After 30 Years Under Mubarak; Arcade Fire Wins Grammy for Best Album of the Year; President Obama Releasing Budget Plan this Morning; The Dangers of Energy Drinks; Diamonds are a Girl's Best Friend
Aired February 14, 2011 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
T.J. HOLMES, CNN ANCHOR (voice-over): Good morning. It is a new day in Egypt after 30 years under Hosni Mubarak. The military is now in control. They suspended the constitution. Parliament has been dissolved. And now, a big question is exactly where is the former leader on this AMERICAN MORNING.
(END VIDEO CLIP)
HOLMES (on-camera): Seven o'clock eastern time. Good morning to you all on this Valentine's Day. Welcome to AMERICAN MORNING. I'm T.J. Holmes.
KIRAN CHETRY, CNN ANCHOR: I'm Kiran Chetry. Glad you're with us. We have a lot ahead this hour. Grammy stunners, the Indie rock band, Arcade Fire, grabbing the Grammy for Album of the Year. We're going to get a full wrap-up of last night's winners and losers.
HOLMES: Also ahead on this Valentine's Day, we will have armed guards here in studio with us. Why? They are here to protect the diamond that your wife's diamond wants to be. 110 karats. Live in studio with us this morning.
CHETRY: They washed that thing with old spice.
The president is releasing his big budget plan this morning, and it's not a matter of whether to cut but just how much and what programs are on the chopping block. One we know of is $100 billion in funding for higher education, and most of that will come out of the Pell Grant Program. Students will no longer be eligible for more than one of these $5,500 grants per year.
The plan also reduces loan subsidies for grad students, meaning at some time these were diverted. You were able not to have to pay them until you were out of grad school for a number of years. That was on the tab of the American taxpayer. That is going away as well.
We're going to have much more on the budget proposal when we join budget director Jacob Lew. We're going to talk to him in just about 15 minutes.
HOLMES: Also this morning, a fire that destroyed 18 homes in Washington state appears to now be under control. But take a look at some of the pictures here. It was happening on an Indian reservation. It started on Saturday. I said 18 homes destroyed, but this started at a fire at one home. They have been dealing with issues there of high winds, 45 miles per hour, and some of the winds apparently whipped up the flames and caused this fire to spread from home to home. Officials say two firefighters were treated for minor injuries but no residents were injured.
CHETRY: They're still trying to figure out what happened -- actually we're going to bring you that story in a second. Thousands of conservatives have spoken. They want Congressman Ron Paul to run for president. His supporters at the annual C-PAC convention of conservatives over the weekend, and he won the straw poll. He led all potential candidates with 30 percent of the vote.
Former Massachusetts Governor Mitt Romney was the runner-up with 23 percent of the vote. Nobody else cracked double digits, with Newt Gingrich, Tim Pawlenty, Sarah Palin all receiving some support, but, again, single digit support. Paul joined us here on American morning a short time ago.
(BEGIN VIDEO CLIP)
REP. RON PAUL, (R) TEXAS: I talk about personal liberty, personal choices, which is something the others don't talk about.
And the foreign policy is quite different. You know, I make sure they know that I never want to reinstitute the draft. They will have no draft registration. I don't ever want to go to war without declaration. And they see war and our foreign policy as a drain. I think that is a very strong message.
(END VIDEO CLIP)
CHETRY: Earlier in the conference Donald Trump announced to the crowd that Paul had no chance at winning the presidency.
Well, now to Egypt where Egyptian state TV just announcing that because of the country's unstable bank situation Egypt's stock market will be closed until further notice. It was supposed to reopen on Wednesday, but the post-Mubarak era just beginning to take shape.
There are some new questions this morning as well about former president Hosni Mubarak, his whereabouts and health. Since resigning he's been staying at his palace residence in at the Red Sea resort of Sharm-el-Sheikh in Egypt. Senior correspondent Nic Robertson is in Sharm-el-Sheikh for us this morning. And I'm sure you're heard some of these rumor and buzz about where he may be and what his condition is. What do you think this morning, Nic?
NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: All the indications are that he's staying in his presidential palace complex which is on the seafront here on Sharm-el-Sheikh. The reason people believe he is there is he was seen landing at the airport a few days ago. His motorcade was seen traveling towards his palace residence. And there is very, very tight security around that residence. We were in a hotel just right immediately next door to it, to that compound yesterday. And there was a heavy machine gun set up on the roof of the hotel, providing security at the back of Hosni Mubarak's compound.
The hotel security staff and all the security in the area, plainclothes police, policemen on policemen, were very, very tense. Indications are that's where he is at the moment. Not clear how many family members are with him or what his immediate plans are at the moment. But he will certainly be aware of some of the growing calls to investigate his financial dealings and his responsibility in the death in these protestors.
CHETRY: All right, Nic Robertson for us this morning, again, in Sharm-el-Sheikh, Egypt, where Hosni Mubarak is believed to be at his presidential palace this morning. Thanks so much.
Coming up at 7:40 eastern we're going to speak with former undersecretary of state Nicholas Burns about Egypt's road to democracy.
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CHETRY: They say money can't buy love, but they say folks are expected to send a little bit more this Valentine's Day. Our Christine Romans, author of "Smart is the New Rich," joins us now. Maybe they're spending more because certain things cost more.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Maybe. And you know other people see this as a holiday of love. I see this as a holiday of money. The dollar sign on this holiday are so big. It's so true. The American Express spending and saving tracker, a survey, found that Americans plan to spend on average $181 on Valentine's Day this year. And guilted into it or not, men are more likely to be spending than women -- 70 percent of men in relationships plan on spending money and just a little more than half of women in relationships plan on buying gifts, dinner, or something special for their other half.
This is the holiday of romantic love, right? Another survey by the national retail federation found that people are spending more money on coworkers and friends, children and parents. We asked etiquette doyen Lizzie Post what to do if you get an unexpected gift or unexpectedly expensive gift.
(BEGIN VIDEO CLIP)
LIZZIE POST, THE EMILY POST INSTITUTE: Thank them for the gift. Focus on the gift and that gesture, because the moment you start feeling like you have to explain why you don't have something or why you don't have something more, the focus goes to that and not to what this person has taken the time and sometimes the money to do for you.
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ROMANS: OK. First thing, don't run out and buy something to try to even the score. It's probably not going to be a sale, either. Gift giving shouldn't be quid pro quo. Valentine's Day or any other day when you're giving a gift.
You don't have to break a bank. And old-fashioned handwritten valentine, it's better than a box of chocolate or bottle of perfume. If you haven't paid off Christmas yet you should not be buying anything. Here's my familiar advice, right? I mean, that's just crazy. Somebody who loves you -- if someone is your friend, co- worker, or parent, they don't want you to go broke buying something full price because it happens to be the 14th.
CHETRY: You can do breakfast in bed, a nice massage, a note.
ROMANS: You can make Valentine's with your kids, all sorts of things to do. This is one of those big holidays where people spend money and it's just right on the heels of Christmas and the New Year's. So just be careful about spending money.
Speaking of spending money, stocks were up Friday. You're seeing this in your 401(k), boys and girls, 273, the NASDAQ, the S&P is above 1300. Futures are kind of flat to slightly lower right now, still watching what's happening in Egypt, still watching oil prices, trying to figure out what is the next course of action for stocks.
CHETRY: T.J., do you know guys who would break up with women right before Valentine's Day so they didn't have to buy anything, and then get back together in March?
HOLMES: I don't know any guys like that. I hang around withstand-up kind of guys.
(LAUGHTER)
ROMANS: What about the guys who propose on valentine's day or propose on Valentine's Day because they only have one gift to think about.
CHETRY: You guys are cynical.
HOLMES: No, you think we do. We don't do that. We really don't.
ROMANS: You don't?
HOLMES: We really don't. Maybe we broke up with you, it just happened to be the month.
(LAUGHTER)
CHETRY: You just really got on our nerves right around the middle of February.
HOLMES: Sorry.
ROMANS: The holiday of love you start to think, mmm, I don't love you. Are you worth a dozen roses? I don't know.
CHETRY: Marked up 10 percent because it's the 14th.
HOLMES: Great, Christine. Come on back. (LAUGHTER)
CHETRY: Nine minutes past the hour. Here's what else is new this morning. One South Carolina lawmaker says his state needs its own currency. Republican Lee Bright is behind the proposal. He says they need a backup in case people lose faith in the dollar. He argues that a state currency could protect South Carolina if the strained Fed breaks down.
HOLMES: Listen up you coffee drinkers out there. Starbucks about to go single serve, expected to announce a single cup coffee product soon. A lot of you all are familiar with this. And the company says they would even possibly make their own machines for this single serve coffee. A spokesperson says Starbucks wants to revolutionize single serve coffee the way Apple revolutionized mobile phones.
CHETRY: It's a cup of coffee, people.
Well, Madison Square Garden has gone to the dogs again. The Westminster Dog Show gets under way tonight, more than 2,500 canines all competing for the coveted "Best in Show" title. Sadie, the petite black Scottish terrier who won it all last year may not be back to defend her title. That's not her. That means there will be a new winner this year.
HOLMES: that threw me off.
CHETRY: One of those was an Afghan hounds with their long hair, yes.
HOLMES: Is that what that was?
CHETRY: Yes.
HOLMES: Well, we're going to turn from dogs to the budget, all right. The president's brand new budget is just a couple of hours from being out. We're going to get a bit of a preview from the White House budget director.
CHETRY: Also, doctors are warning parents be on the lookout about what your kids are drinking. These energy drinks they're guzzling several times throughout the day, they can actually overdose on caffeine and some of the other ingredients. Elizabeth Cohen here with new information on a new study just ahead.
(COMMERCIAL BREAK)
HOLMES: It's 12 minutes past the hour here on this "American Morning." President Obama is releasing his budget in just a few hours. This is just going to be a starting point, many would say, but according to some of the reports out there already it will cut some $1.1 trillion from the deficit over the next ten years. Two-thirds of the cuts will be spending cuts, another third will come from increased taxes.
Let me give you now a look at one of the things where the president is going to save money, and this is getting a lot of attention and a lot of people saying how can you cut this? It's for the low-income housing assistance program.
Let me put it up for you and show it to you now. Now, back in 2008 you will see here the level of spending was around $2.5 billion. Then you see people had been struggling in this country with this recession and they increased the funding for this program to almost double in 2009. Well, the proposal now coming from the president's budget would cut this program in half. Again, this is a low-income heating assistance program that helped people keep their heat on, quite frankly, during the winter.
These are just some of the tough choices the president is possibly having to make now.
Let me bring in Jacob Lew, the White House budget director, who joins me know.
Mr. Lew, we appreciate you being here. We know we're just a few hours of get all of the details, but we have a few details now, so let me talk to you about them.
Sir, on that one program that's getting some attention, the low-income heating assistance program, take people -- I just want to use that to help you get me and our viewers inside the room. Help us all understand the budget process and where we are in that people can sit around in a room and say that that program is not worthy, it doesn't make the cut to keep that money to keep the heat on for millions of people in the country. Help us understand how we get to that point.
JACOB LEW, WHITE HOUSE BUDGET DIRECTOR: Good morning.
And let me start by saying that this is a tough budget. It's a budget that takes $400 billion out of discretionary spending by freezing it over the next five years. And that means making the kinds of trade- offs where it's no longer just cutting things that we would call waste or fraud or abuse, but it means taking programs that, in other circumstances, we would not cut and making reductions because, like every American family, we have to win within our means and invest in the future.
To talk to the point that you raised, and I go way back on this low- income home energy assistance program. Thirty years ago I worked on creating it. It's a program that's done an enormous amount of good to help people pay their bills. But in 2008, the reason it doubled from $2.5 to $5 billion was because of a rapid spike in energy prices and it was a way of addressing the fact that energy prices had gone up to a very, very high level. Energy prices now are much more in line with where they were in 2008 before that price increase. And you know, we looked at the budget and we said we can't just level off at the new funding level.
We have to look at the kind of basic reason it went up and we took it back to where it was when energy prices were roughly where they are right now. It's a tough decision. And we didn't make it lightly and we don't make it saying that it's a wasteful program. It's a good and important program, but we do have to make these tough trade-offs. HOLMES: Well, Mr. Lew, the way you put it there it sounds like no one would be adversely affected by you cutting this program in half. Rather, you make it sound as if the pricing levels would even out. Is that what you're saying?
LEW: No.
HOLMES: How many people do you think would be affected if this program went away?
LEW: I think it would be wrong to say that nobody would be affected. The program was never designed to meet all needs. So whatever funding level it's at, there will be people you could help more. The question is what is the goal of the program, what is the normal size of the program and can we afford to remain at a level that was doubled when energy prices spiked?
We're looking at investing in things that help poor people in many ways. Look at education. One of the most important things for our future is to make sure that students of modest means can go to college and get the kind of education that they need to compete in the world economy. We have made it possible for nine million students to go to college using what they call Pell Grants.
HOLMES: Yes.
LEW: They get $5,550 each to go to school as a grant. We protected that even though the cost of that is tens of billions of dollars. So we've made tough trade-offs. In a year when I think we all agree that we need to cut spending and live within our means, they're going to be tough, tough choices.
HOLMES: So you said you're protecting Pell Grants. A lot of people would say and see the other side of that and say you're making it more difficult because there are some changes that are coming to that Pell Grant program, at least proposed changes, I should say, which wouldn't allow two Pell Grants in the same year. You would cut out some kids wanted to go to use the Pell Grant to go to summer school. That's not going to happen. So I know you say protect it, but there are some changes that are as well going to adversely affect some students in this country.
LEW: You know, I think even within the areas where we're investing it's very important to ask what are the core goals, what are we trying to accomplish? In the Pell Grant program, historically summer school was not covered. Recent years it was expanded to summer school and the cost was supposed to be under a billion dollars but it came out to be closer to $8 billion or $9 billion. We don't understand exactly what's driving that summer school cost. What we do know is that to make sure that students can go and finish their education we need to protect the school year Pell program and that's the kind of tradeoff that we think is the right decision to make, to make sure that kids can go to college.
HOLMES: Well, sir, and last thing here and I want to hit on kind of couple of those two things to kind of bring it home. I know we're going to get more details later, but people can certainly relate to those two programs. We'll see a lot more. But finally here, the president spoke in his State of the Union about this country doing big things. Does the president think he has done a big thing in this budget? Some argue no, given that he didn't tackle some of the biggest expenditures out there, being Medicare, Medicaid, social security and defense. Does the president think he's done big things in this budget to tackle the deficit?
LEW: You know, when the president took office two years ago, he inherited a deficit that was growing to over 10 percent of the economy. He's put forward a budget today that cuts it in half by the end of his first term and brings it down to a level where by the middle of the decade we stop adding to the debt. He's done that by addressing the whole budget. He's addressed many of the things that you've just mentioned. He has big defense reductions. He has savings in health care programs. He's done it by putting everything on the table and doing it in a balanced way. I think if you look at our budget it's the only plan out there where we can say we reduce spending and we reduce the deficit and hit that target.
HOLMES: Well, let the debate begin, Mr. Lew. You know, Republicans take issue with a lot of what you just said and they have let it be known. And we'll be talking about it plenty. But here's the starting point for this conversation and debate. So we appreciate your time. I know we'll be talking to you plenty down the road.
LEW: Thank you.
HOLMES: Thanks so much, Mr. Lew.
LEW: Look forward to talking to you again.
HOLMES: All right, Kiran.
CHETRY: Well, next on AMERICAN MORNING, Lady Gaga's "eggs-travagant" entrance. She didn't just come to the Grammys, she actually hatched at the Grammys. We'll have details on a full night of Grammy surprises.
Also ahead, it's no secret that girls love diamonds, right? Well, I mean, we don't need to get this crazy. A 110 karats? Oh, yes, it's a sneak peek at the world's largest and rarest yellow diamond. It's coming here to the studio and it has its own security.
Twenty minutes past the hour.
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HOLMES: Twenty-three minutes past the hour on this AMERICAN MORNING. It was a night of upsets and some upsetting things actually at the Grammy Awards. But no doubt I think the biggest surprise last night.
You recognize that group? Well, if you don't recognize the group, you'll recognize the name at least, right? Arcade Fire? Maybe you don't recognize that. This is a Canadian Indy rock group that won Album of the Year for their album "The Suburbs" but they beat out some of the biggest names in the industry that you would know, you know, the Eminems of the world, the Lady Antebellums, the Lady Gagas of the world.
CHETRY: All the ladies.
HOLMES: Yes.
CHETRY: They looked so shocked themselves and excited to be there, so congrats to them.
Lady Antebellum didn't have a bad night. The country trio took home the most Grammys, five, including Song of the Year, Record of the Year and Best Country Album for their hit "Need You Now."
HOLMES: And meanwhile, as we said, Eminem, he walked out at least in the biggest category of the night but he was nominated for 10 awards. Well, a lot of people thought he'd have a really big night but he ended up taking home two statues. One for Best Solo Rap performance and also for Best Rap Album of the Year for "Recovery."
CHETRY: And the Biebs, Justin Bieber, beaten out for Best New Artist but one of his back-up dancers had a little bit of a spill on the stage, I guess you could say. He was trying to do a flip during the end of his routine. We have it highlighted there in white. And he ended up slipping and falling pretty hard on the stage. You see him get up, so (INAUDIBLE) terribly hurt but he was holding his back. That's quite a feat, I mean, just to try to flip like that and land in the first place. Looks a little dangerous.
HOLMES: Yes. Hope he's going to be OK.
Also, Lady Gaga, she won three Grammys, but so what? Right? That's what everybody is talking about today. You see that weird cocoon looking thing? That's supposed to be an egg. That's what she arrived in on the red carpet last night.
CHETRY: That's one way to avoid having to talk to reporters on the red carpet.
HOLMES: Well, there's some report out that she was actually supposed to get out of the thing on the red carpet but there was a malfunction and she couldn't actually get out of the thing. There was a hatching issue. She wasn't quite ready to hatch. Now she got to the stage and she did finally hatch from that thing and she performed from that new single, called "Born This Way." I actually doubt it.
CHETRY: There you go.
Well, coming up, a warning for teens and kids, put down those energy drinks. And parents, if you're letting your kids guzzle these throughout the day, there's a new study finding that there may be some hidden dangers. We're going to tell you what those are and how to spot the warning signs when Elizabeth Cohen joins us.
HOLMES: Also, Egypt taking its first steps towards democracy. What exactly can we expect now in the coming days, weeks, even months? We're talking to Nicholas Burns ahead. It's 25 minutes past the hour.
(COMMERCIAL BREAK)
HOLMES: Welcome back to this AMERICAN MORNING on this Valentine's Day. Of course it's a big time of the year for florists out there. Sales expected to be up, as well they should be. One gift that's probably leading the sales as well, diamonds. But if this particular diamond we have this morning leaves, somebody is going to get arrested. A live look in 20 minutes at that -- 110 karat diamond. It comes complete with its own security and it will be here with us this morning.
CHETRY: How do you make that into a ring? That's going to be a little bit of a challenge.
HOLMES: Oh, I'm sure they can find a way.
CHETRY: Exactly. Wear it around your neck. Just walk around like this all day.
HOLMES: Yes. Welcome back to you all. The bottom of the hour here. I'm T.J. Holmes.
CHETRY: I'm Kiran Chetry. A look at the top stories now.
President Obama is unveiling his budget plan today. And you can expect some deep cuts. But will they be enough?
The White House says that they're going to be slashing deficits by nearly 1.1 trillion over the next 10 years. Sources say that social programs will be squeezed. One of the low-income heating assistance program known as LIHEAP on the chopping block. Also expect cuts to airport grants to aid to water treatment facilities. Republicans though many say they're unimpressed that they're not tackling some of the biggest drains to the budget. And they're gearing up to reject that proposal.
HOLMES: Also this morning, take a look at what a difference a week makes. On the left side of your screen, a picture of Tahrir Square. That's what it looked like last week during the protest, during the chaos, and, yes, during some of the violence. But take a look at Tahrir Square today. The military has cleared out most of the protests, so they're going home. And now some signs of life and normalcy are back in that square as cars are now able to get around and many of shops once again are opening.
CHETRY: We have a great update for you. Congresswoman Gabrielle Giffords continuing to make amazing steps in her recovery. Five weeks since she was shot in the head during that rampage in Tucson, well, now Giffords' rep says that she's speaking. That she was lip syncing to songs and verbalizing and in a video she even mouthed happy birthday as a surprise for her husband. Giffords began intensive rehab at a Texas hospital last month. During the Tucson shootings, six people were killed and 13 others injured.
HOLMES: We turn now into an AMERICAN MORNING's "House Call." A study out there now saying that kids can actually overdose on energy drinks. They're dangerous for children. Elizabeth Cohen live for us in Atlanta with this.
Elizabeth, good to see you as always. How much - can we start with this? How much is considered a lot for a kid to be drinking when it comes to an energy drink?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: You know, pediatricians tell us one too many energy drinks is probably one because the thing is we have no idea how much caffeine is in these things. All we know is that it is probably a lot. We're talking energy drinks. I have examples of four, of course, Red Bull is one of the most well-known of them.
And the American Academy of Pediatricians is telling, no pun intended, parents and doctors to wake up to the dangers of these things. They say that kids are drinking these things. Parents think of them as just being like, let's say a soda, when they're not.
And pediatricians are having kids come into the office with certain symptoms and the pediatricians aren't thinking energy drinks, they're not recognizing how many kids are drinking these.
Well, what are the symptoms? Some of the symptoms of having had one too many, which as I said could often can be just one, energy drinks are nausea, dizziness, rapid heart rate, and seizures. And, T.J., these are especially dangerous for kids with any kind of chronic disease like diabetes or kids who have ADHD and are taking drugs like Ritalin because those drugs are also stimulants. And if they drink these on top of it, that can just put them over the edge.
HOLMES: OK. Help me as well, parents might be trying to figure this out. What age - it's never really OK. Adults shouldn't be drinking a lot of this stuff, it seems. But what age are we talking about, up to 17, 18, anything younger than that you really shouldn't be drinking? What age are we talking about?
COHEN: Right. There's no reason to be drinking these things. They are full of stimulants. There is no reason for a child or a teenager to be drinking these at all. Not only do they have caffeine, but they have two other stimulants called guarana and taurine. So you got these three stimulants in here. And again, we don't know how much are in these because they won't put it in there. So you know, even if your kid let's say has a Coca-Cola or a cup of coffee, at least you kind of know what's in there. We don't know how much caffeine is in these drinks.
HOLMES: OK. We're talking energy drinks here. Sports drinks, are they OK?
COHEN: Right. Sports drinks don't have those stimulants that we just saw. So we're talking like a Gatorade or PowerAde, that's a whole other category. Those are fine for kids to drink. These, however, have the caffeine, the guarana and the taurine. That's what you don't want your kid to have.
HOLMES: OK. Should I stop drinking this stuff, too, Elizabeth?
COHEN: Yes.
HOLMES: I should, OK. All right. Thank you, Elizabeth Cohen, this morning, as always. We appreciate you.
And still to come this morning, the world's largest yellow diamond. 110 karats. It will be here. That's how it arrived. You're asking, where is the diamond? Well, don't worry about it. OK? Those fellows -
CHETRY: It's in that plastic bag, seriously? It's in a plastic bag.
HOLMES: That's who came in with the diamond this morning.
CHETRY: We really played up the security aspect. It came in in a plastic bag.
HOLMES: The security aspect is that one, two, three, four, five people are escorting this diamond in. Now, it's in a box of some kind. Don't let - don't get caught up in the plastic bag, OK?
CHETRY: Don't let the plastic bag fool you. There's no getting to that diamond.
All right. Also, what's ahead for Egypt after the people's revolution. We're going to be speaking with former undersecretary of state Nicholas Burns on what happens now. 34 minutes past the hour.
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CHETRY: 37 minutes past the hour. It's the new normal in Egypt right now. The military now in command dissolving parliament, suspending the Constitution and promising to keep things OK as they move toward the election process. This morning politicians, military leaders and Egyptians who helped bring down President Mubarak are all trying to figure out what's next.
Joining us from Providence, Rhode Island this morning is Nicholas Burns, former undersecretary of state and now a professor of diplomacy in international politics at Harvard's Kennedy School. Good to see you again this morning, Ambassador Burns. So the first thing I want to ask you about is a lot of speculation about the whereabouts of Hosni Mubarak. We know he apparently going to his seaside resort in Sharm El-Sheikh but questions about his health this morning. How does our government go about figuring out how he is?
NICHOLAS BURNS, FM. UNDERSECRETARY OF STATE: Well, I think our government is probably focused on the ruling party now, the military and Cairo. But Hosni Mubarak has a house in the Red Sea in Sharm El- Sheikh and as you said, the big question is is he going to be allowed to stay in Egypt or will he have to seek refuge overseas? There are calls from some of the protesters that his family has amassed a major fortune and that the government should go after that. So I don't know how long he can stay in Egypt. CHETRY: You know, the other interesting thing, it was very surreal. I mean, you saw the jubilation on the faces of the protesters on Friday as that announcement was made as Mubarak was going to leave. He was actually going to step down as president and then you hear and now the military is in charge. It seems that wouldn't be what you would expect after days and days of protests for pro-democracy. So explain what that means in the context of Egypt.
BURNS: Well, you're right. This is an extraordinary moment. It's day three of the transition after the revolution. The big question is, can the revolution succeed now because the military has all the power and the people have very little power on paper. They don't have freedom of speech. They don't have freedom to mobilize political parties. And so I think the government - the challenge now is to see if the government, the military, is willing to give up some of its power to allow a free transition, to allow public debate, to foster and flower and to allow free and fair election which Egyptian governments in the past, including military governments, have never been willing to allow. So will the government give up power during that period of transition.
CHETRY: And who do they give up power to as we're watching this (INAUDIBLE) movement take hold?
BURNS: Well, that's the other key question. You saw all that idealism and energy in the streets of Cairo in Tahrir Square over the last three weeks. Can the protesters now organize themselves into a coherent body, can they translate all that idealism and energy into political power? Can they negotiate with the government, can the small group of them be appointed to have a political platform that would lead to democracy?
That's an open question as well because the opposition, of course, spans the political spectrum in Egypt from democratic-oriented people to Islamist parties. And so the two big questions are will the military give up power and can people mobilize themselves to take power in a political process through the elections that the military is planning for six months from now.
CHETRY: And in the meantime there is still a lot of unrest. We talked about the stock exchange remaining unclosed. It is due to re- open on Wednesday. We have protests this weekend. Police officers were out there, bank employees, others, protesting low pay and they're protesting corruption. So you're not really seeing a calm after all of that fighting for the past two weeks to get the Mubarak regime out. So what's next in terms of that discord?
BURNS: There's a relative calm, but strikes are to be expected, I think, and the fact that the police were protesting yesterday and threaten to strike is a very ominous sign. I think the military's concern is going to be to impose law and order and to return the country to a period of calm so that banks can open and businesses can reopen and people can go back to work. And the military holding such power may be tempted to use it to impose order on the streets. And so that's the danger right now for Egypt that they won't be able to get through this transition in a calm way. And the country needs a period of calm so that people can begin to act normally in a political sense, organize themselves and have a national debate about what these elections should result in?
CHETRY: And that's my other question because there were so many commentators saying these are people who have never known democracy. They've all grown up their entire lives they've been, you know, under the authoritarian rule. So are they getting some guidance internationally by the U.S., by the United Nations, whoever it may be, from the outside on what to do next? I mean, how do you even begin?
BURNS: Well, they sure were impressive over the next three weeks. They did it all by themselves. They didn't need help from Americans or Europeans or anybody else. But the battle now is can they begin to build political parties? Political parties had been outlawed for many, many years. Can those parties begin to speak to 85 million Egyptians on a national basis before a campaign and can millions of people who are on the street now look towards maybe five or six people, people like Mohammed ElBaradei, the former Nobel peace prize laureate, can they begin to lead a reform effort to be a counter balance to military power?
I think history would argue against this succeeding, but they surprise us over the last three weeks, the people of Egypt. So I wouldn't count them out. We should all hope that this reform movement can continue now through a political process.
CHETRY: Absolutely. All right. Well, undersecretary, former undersecretary of state, now professor at Harvard's Kennedy School of Government, Nicholas Burns. Always great to see you. Thanks so much.
BURNS: Thank you.
CHETRY: T.J..
HOLMES: All right, coming up, a bit of a warm-up? Really. Is that possible? Rob Marciano will be along with the latest on our weather including still something you need to be watching out for this week.
It's 43 minutes past the hour.
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HOLMES: Quarter until the top of the hour here on this AMERICAN MORNING.
Turn to Rob Marciano, standing by for us in Atlanta, which is going to look different than it seems all winter, Rob.
ROB MARCIANO, AMS METEOROLOGIST: Yes, temperatures, you know, the big melt is under way across much of the northern tier. Places like Chicago will shed half of the snow that they gained in the past two weeks, just over the weekend. So, we'll take the warmer weather.
But there's going to be some pulses of not only cold weather but some windy weather as well. That's what you're feeling across the I-95 corridor from D.C. all the way up through Boston. Winds are gusting this morning and you look further north and west, over 30 miles an hour in places like Buffalo. There this is going to be ushering in another batch of cooler air, but before it does so, we could see winds gust to 40 or 50 miles an hour. Wind advisories are posted for a good chunk of the north eastern third of the country.
So, that's going to slow down some travel certainly at some of the suspect airports like LaGuardia, D.C. as well. Over an hour expected later on this afternoon. Philadelphia and Boston might see some delays.
Chicago, Atlanta, Detroit, also on the breezy side. And San Francisco, finally getting rain after a spectacular weekend down around Monterey Peninsula if you got to see the Pebble Beach tournament there. It was pretty toasty.
But there's a series of storms that's rolling across the Pacific Northwest not only today but through the rest of the week. It's going to be a pretty stormy pattern for them. And this system, albeit dry, is certainly going to bring in some gusty winds and eventually some cooler temperatures.
But look at the big warm-up across the mid-section of the country. Record highs yesterday, Imperial, Kansas, 72; Kearney, Nebraska, 71; Colorado Springs, 71; Marshfield, Wisconsin, the ice pack of the country, International Falls, usually having temperatures well below zero, 40 degrees. So, there's your snow melt.
Some of this -- some of this will get to the Northeast but not until Wednesday or Thursday.
Guys, back up to you in New York.
CHETRY: Let's hear it for International Falls, 46. Usually, it could be negative 46 wind chill, right, and they wouldn't bat an eyelash.
MARCIANO: Yes, with just week ago where it was. So, they're rebounding nicely.
CHETRY: That's a lot of snow to melt. Thanks, Rob.
HOLMES: Rob, thanks so much.
Well, anyone will tell you the key to a happy relationship is communication. But how can you have good communication if you and your significant other don't even speak the same language? Well, we'll tell you how to speak your partner's love language and maybe how you can go ice skating with them --
CHETRY: That is so cute. I love it.
HOLMES: Cutest thing ever. Yes, darling.
CHETRY: Don't forget the helmet if you're not good.
It's all the rage during this year's fashion week. We're not talking at hemlines, haute couture. We're talking about some interesting new designers out there. They have one thing in common, their heritage. Alina Cho will be joining us, first day of fashion week, her favorite day of the year.
Forty-eight minutes past the hour.
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HOLMES: Happy Valentine's Day, Mrs. Holmes.
(LAUGHTER)
HOLMES: I'm going to try to make it out -- no, I'm not going to try to make it out.
But, hello to you and welcome back, everybody.
You're seeing there what you cannot have. What you cannot afford. That is a 110-carat diamond here in studio with us. People think about diamonds today, cross this one off your mind.
CHETRY: Oh, yes. I mean, it's just exciting to look at. I mean, honestly, it's very, very beautiful sight, 110 carats. It is the largest yellow pear-shaped diamond in the world. It's from Cora International. It is called the Cora sun drop.
And we're joined by Cora International Suzette Gomes. Good to see you this morning.
SUZETTE GOMES, CORA INTERNATIONAL: Hi. Thank you for having me.
CHETRY: I see you are dripping in diamonds. So, yes, I like the earrings.
GOMES: Thank you.
CHETRY: Tell us why this is such a stunner, besides, I mean, it's the largest yellow diamond out there.
GOMES: With colored diamonds, this is a bit yellow, the fact that it's a pear shape is very important. And it would be make it, it's the largest pear shape in the world.
You know, diamonds with strong saturated color are very rare and make up a very small percentage of all diamonds. So, anything with a strong saturation of color is very important. And this is an historical stone. Although I have to add that at Cora, we do all sizes. We got under one carat to over 200 carats. So, there's something for everyone.
HOLMES: What are you supposed to do with one now? Are you expecting someone to buy this? Is this a show piece? What do you with it?
GOMES: Eventually someone will buy it.
HOLMES: And they'll pay you for what for it? GOMES: I can't really divulge.
CHETRY: Say, in the eight figures.
GOMES: In the eight figures, yes.
HOLMES: High, low?
GOMES: High.
CHETRY: You can't afford it? OK. Neither did I. None of us can really --
HOLMES: But who's going to buy that? I mean, what kind of market is there for something like this?
GOMES: Collectors buy this.
HOLMES: OK.
GOMES: And there's a huge trend today in diamonds as an investment. People are seeing it as an investment. It's something tangible. And also, it's something that you can wear and enjoy. That's the other benefit.
CHETRY: Could you also just hold it up for us? I want the camera to be able to see. I mean, when you talk about the largest pear, that thing is -- it's gorgeous.
Now, I'm not being (INAUDIBLE) -- can you have this set into a ring? I mean, could you have this set into a ring? Or is it just this thing (ph)?
GOMES: No, I think you can. I know a lot of people with lovely beautiful hands that wear large stones --
HOLMES: Wait. That one diamond going to one ring?
GOMES: I think that something could make it -- yes, look at this. Isn't that fabulous?
HOLMES: Oh, stop.
CHETRY: Is that too much?
GOMES: I think it's beautiful.
CHETRY: I'm sold. I like that.
GOMES: And also, a pendant. You can make a beautiful pendant.
CHETRY: Yes.
GOMES: So, you know --
CHETRY: I think -- I think that it would be a beautiful necklace, right, T.J.?
GOMES: A beautiful necklace.
HOLMES: I don't know.
CHETRY: What is it about yellow diamonds that are so rare as well?
GOMES: Well, yellow diamonds, there's a very small percentage of nitrogen in the diamond which creates the yellow color. And lately, we've seen the trend towards yellows and pink. There is a great demand for yellow and pink, which is wonderful, you know? So, there's something for everybody.
HOLMES: Where did this one come from?
GOMES: This comes from Africa. When we had it, we got it five months ago and it took us four months to manufacture because when it comes in, you have to study the stone and we make models of it and then we send for sawing and then we start the process. And it's really a work of art.
HOLMES: Is anyone else allowed to touch it?
GOMES: Well, you want to touch it?
HOLMES: I would love to.
GOMES: You can. I'm going to put it down.
HOLMES: OK.
GOMES: You want to hold your hand on the box.
HOLMES: I had to do it over the box.
GOMES: And then there you go.
CHETRY: What does it feel like?
GOMES: You can also hold it if you like.
CHETRY: She's so sweet. She's like letting me.
HOLMES: Oh, well.
CHETRY: Now, we're officially fans of the diamonds. Let's just take a picture.
HOLMES: Now, where does -- how does this travel? We saw some video earlier and you got the fellows over that close by.
GOMES: It travels by armored car. And we don't divulge the details on how the route, or how they go.
CHETRY: But we saw it coming in and look -- was that within a box in a bag? GOMES: That's true. Yes. So, we don't know how it got here.
CHETRY: Give it back, T.J.
HOLMES: I don't want to make any sudden moves here.
CHETRY: It is --
GOMES: It looks fantastic on you.
CHETRY: Thank you. It looks fantastic on your hand.
(CROSSTALK)\
CHETRY: It's pretty amazing. And, you know, I knew there was going to be people that will ask us, do you guys ensure, you know, the integrity of where you get these diamonds just to make sure it's not a conflict diamonds?
GOMES: Of course. There's a process in place which is a governmental process called the Kimberley Process and all governments are required to follow the process and to make sure that there isn't any conflict attached to the stone. So, that's very in place and it's working very well.
And this diamond is shortly on its way to the Natural History Museum in London where it could be showcased in the vaults for anyone to enjoy it. And that's really the whole. It's not just for us. It's for everybody to see, because it's -- you know, it's marvelous.
HOLMES: Well, we appreciate you bringing it and allowing us and our viewers to enjoy it. A lot of people think of diamonds on Valentine's Day, nothing quite like that. But still --
GOMES: We have small ones, too.
HOLMES: All right.
CHETRY: I won't make any sudden moves either.
GOMES: Thank you.
CHETRY: Suzette, thank you so much.
(CROSSTALK)
CHETRY: That was a thrill. That was fun. That's the closest I will come to one like that. But it was fun.
We're going to take a quick break. We'll be right back.
(BEGIN VIDEO CLIP)
DIKEMBE MUTOMBO, NOTHING BUT NETS: I am Dikembe Mutombo. I am impacting the world on Malawi. (INAUDIBLE) young man, being from Africa, witnessed children dying every year because of this epidemic of malaria. It was so hard for me. And also being a victim of malaria myself, where I suffered malaria after my visit to Africa. So, I felt that there was something that we have to do to make a difference.
So, join the movement, "Impact Your World," CNN.com/Impact.
(END VIDEO CLIP)
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