Return to Transcripts main page

CNN Newsroom

Suspicious Package Found Ahead of G-20 Summit; Can Summit Fix Global Mess; GM & Chrysler On the Clock: Is Bankruptcy Inevitable?; Earthen Levees Under Pressure; Long Wait for Flood Victims; Bumpy Flight Forecast

Aired March 31, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Tuesday, March 31st, and here are the top stories in the CNN NEWSROOM.

The new American president due in London in less than four hours. Barack Obama takes the European stage, his next act in his search for financial solutions.

The Red River falls, but a spring snowstorm increases flood fears in North Dakota.

Detroit marches to Washington's drumbeat. Does government intervention make bankruptcy more likely for GM and Chrysler? I'll ask my guests.

Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

So, President Obama is jetting across the Atlantic at this moment. He is on his first presidential trip to Europe. Tackling the world financial crisis tops the agenda for his eight-day tour. The first stop for the president will be London for the G-20 summit of the world's financial powers.

How about this? President Obama and the other G-20 leaders will likely face a noisy reception in London. Protesters jamming the streets in advance of the summit.

Thousands of people, including anti-capitalists and environmental groups, demonstrated over the weekend. Protesters are venting their anger over the global economic meltdown.

Some protest drama expected inside the summit as well, from France's president, no less. We'll get to that in just a moment with our Christine Romans in New York.

But first, to set the scene for us in London, CNN's Paula Newton.

And Paula, I was set to ask you what kind of reception these world leaders can expect in London. And then we get news of this suspicious package found near the bank of London.

What are you learning?

PAULA NEWTON, CNN CORRESPONDENT: That is the kind of reception they can expect. You know, as coincidence has it, I was in the center of London, they evacuated just outside -- the streets just outside the Bank of London, the very symbols of financial power here in London. Saw a suspicious package, performed a controlled detonation, I heard it. Gave the all clear, everyone was out.

They do not know if protesters were behind that, but what police say to me is their moles inside this protest groups say that's the kind of disruption they want over the next few days. That's what Obama and certainly the leaders around them will be hearing about.

It is designed to keep certainly the police and security authorities here on their toes. But also to send a clear message to people participating in this G-20. Look, we're not thrilled about the way you've handled the economy in the past few decades. Listen to us going forward -- Tony.

HARRIS: Well, Paula, I'm sort of curious. That begs the question of the kind of security measures that are in this place for these world leaders.

What can you tell us?

NEWTON: Certainly security. Two different parts to it, two different moving parts.

I'm here at 10 Downing Street. Security here obviously impeccable. Obama will be arriving here tomorrow morning. He's going to give a joint press conference with Gordon Brown.

The other equation though is where the G-20 conference is going on, on Thursday. That is by the old London Docklands, boarded on one side by concrete and glass, the other side by water, the River Thames. So police are pretty secure there.

What we just talked about is what they're concerned about, these little hot spots, these flare-ups, these protesters moving around, you know, certainly from different parts of the city, keeping everyone on edge. The key thing here, Tony, though, is to keep in mind, this city, this country, remains on a severe footing in terms of its threat alert. That means that an attack is likely.

HARRIS: Right.

NEWTON: We have been in that state, really, since the London bombings of 2005. So this is the kind of security atmosphere that's going on here right now.

HARRIS: Yes. Yes. And one more quick one.

What is -- let's talk about expectations very quickly here for this summit. They seem to have been dampened over the last few days.

NEWTON: Look, they don't want the push and pull. Who is they? We, Tony. We don't want this push and pull anymore.

We've got people talking about more regulation, you've got people talking about more stimulus. The struggle now is, when you get these leaders to the table to be able to, you know, nod, nod, wink, wink, nudge nudge, come up with something coherent, something we can all attach some hope to. That's what they hope is going to happen, when the personalities really start to come together around that table on Thursday.

HARRIS: And let's hear from the British Prime Minister Gordon Brown on that very point.

(BEGIN VIDEO CLIP)

GORDON BROWN, BRITISH PRIME MINISTER: What conquers fear of the future is our faith in the future. Faith in who we are, and what we believe, and what we are today, and what we can become. Faith, most of all, in what together we can achieve.

So we are not here to serve the market. It is here to serve every one of our communities.

(END VIDEO CLIP)

NEWTON: Now, can you imagine, Tony, he gave that quote from the pulpit, from St. Paul's Cathedral here this morning, really trying to set the tone that, look, we're trying to get this right. And we want to talk about shared values and a way to move forward, so that prosperity, any kind of economic growth, is fair for all -- Tony.

HARRIS: Well, he may need some divine intervention to get something meaningful out of this summit.

Paula Newton for us.

Paula, good to see you. Thank you.

You may remember those same world leaders met just, what, four months ago at an emergency summit called by then-President Bush in Washington? Most of those who pledged to fight protectionism and support free trade have broken their promises, so the question is whether this time will be any different.

(BEGIN VIDEO CLIP)

STEVEN SCHRAGE, INTERNATIONAL BUSINESS ANALYST, CSIS: The last statement was really a toothless tiger. Everyone ignored it and went ahead and enacted protectionist measures, 17 out of the G-20.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): Even President Obama is accused of backpedaling.

SCHRAGE: The administration set major commitments to open up markets and free trade, but it allowed things like "Buy America" to go forward. Are we walking away from those commitments? It's going to be a critical question for the world, and it's making a lot of people nervous.

(END VIDEO CLIP) HARRIS: Well, together, the G-20 leaders represent 85 percent of the world's economy. So the stakes are pretty high for trying to fix the global financial meltdown.

Christine Romans with us now from our CNN money team. She's in New York.

Christine, as always, yes, you're back, good to see you.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi, Tony.

HARRIS: You know, the French president wants stricter financial regulation, and something about -- of a financial overlord here. The president and British Prime Minister Brown want a global financial stimulus plan.

You know, you could hold a summit on each of these individual steitems. So in that context, isn't it likely nothing substantial will come out of the summit?

ROMANS: Well, you know, I can guarantee you that they have been working on this, and their finance ministers and treasury secretaries and treasury departments have been working on these things for some time now. And, in fact, we know that the work is probably going to continue long after the photo-op and the handshakes are done this week.

The goal here is going to be showing global cooperation. I mean, George Soros said this is a make-or-break event. He's the global financier, and he is saying what a lot of other people are saying, too, that global markets cannot see discord this week in this event. They have to see some kind of movement toward a common goal into stabilizing the financial system.

HARRIS: Well, you know, if you wanted something other than discord, based on a reading of the tea leaves, maybe the leaders should have followed the advice of our Richard Quest from just a couple of weeks ago. You'll remember this, Christine.

Oh, roll the clip.

(BEGIN VIDEO CLIP)

HARRIS: What's the best that can come out of the G-20 economic summit in London? They're laying the groundwork for it with this visit.

RICHARD QUEST, CNN CORRESPONDENT: Oh. Look, I wish I could say something decent and pleasant about the G-20 process.

When it happened in November, I was like a naive child who had been taken and handed a lollipop. I thought something might come out of it. But frankly, I think they maybe should save the air tickets, stay at home, and have a conference call on the phone, because I have heard nothing that suggests that this G-20 is going to be Bretton Woods three, four, five or six. (END VIDEO CLIP)

HARRIS: Well -- so clearly -- go ahead, Christine.

ROMANS: Well, I want to say, Bretton Woods, for anybody who doesn't know, is the post-World War II confab of leaders that basically set up the current system that we have today, a system that, of course, has been humbled and some would say shaken to the very core.

HARRIS: There you go.

ROMANS: And that's why the U.S. and the U.K., western-style capitalism has lost a lot of moral authority, hasn't it?

HARRIS: Absolutely. So, clearly, the leaders didn't pay attention to Richard, weren't watching the newscast that day in their meeting in London.

So -- and, of course, President Obama is on his way over there now. What kind of a reception can he expect when so many in Europe are looking at the United States and saying, you know what, you caused this? So don't come over here with your demands on what we should do, and your ideas for fixing this crisis. You fix the crisis that you created.

ROMANS: I'm less concerned about the anti-capitalists and environmentalists in the street, because even in times of prosperity, we always see the anti-capitalists and the environmentalists in the street.

HARRIS: World Bank summit.

ROMANS: They don't like this stuff.

HARRIS: Absolutely.

ROMANS: Even when times are good. But what I'm more concerned about is making sure that, you know, the tone from other leaders is not petulant, is not divisive, is not to play to their home markets, but it really is this agreement on what we think is going to be in this G-20 communique, which is going to be, you know, renouncement of protectionism, although, you know, pointed out that they've done this before and haven't followed through...

HARRIS: Yes.

ROMANS: ... but protectionism, global cooperation, financial regulation. And, you know, the -- our administration and others are trying to downplay the rift, Tony, the rift between should we spend more or should we regulate more?

HARRIS: Yes.

ROMANS: The president says we have to do both. But again, the world is watching, and in a very nervous -- nervous confidence of the world is watching. So, you know, I don't want to make light of it, but it's a serious matter that they're undertaking this week.

HARRIS: Well, I don't have time to get your response to this, because I think there is probably something in this threat from Sarkozy not to be missed here. If you come out of the summit with nothing really concrete, and you end up with countries going their own way, there is the potential -- and when I say in their own way, in this idea of a kind of uncoordinated effort, I mean, there is the risk here, isn't there, Christine, that the crisis could actually get worse and protectionism could rise?

ROMANS: I mean, history is clear on that point. History is very clear on that point. We've heard it from our treasury secretary and our leaders many, many times, that we've got to do this together.

The problem is, is that so many other people are just blaming it squarely on us. And, you know, you could argue about how complicit everyone else is into all of these years of cheap money and spending what we didn't have. But, you know, here we are. I mean, "global cooperation" are the two words that I think we need to -- the buzzwords for this week.

HARRIS: Good stuff, Christine. Thank you.

ROMANS: Sure.

HARRIS: AND just so you know, here is a quick breakdown on just who the G-20 is.

The group is made up of top financial officials from 19 of the world's leading economies, plus the European Union. Combined, they represent about 90 percent of the world's gross national product. Those nations conduct 80 percent of world trade and control two-thirds of the world's population. The group's chairmanship rotates annually.

A lot of you want to put the brakes on those bailout loans for the auto industry. This iReporter questions why taxpayers should come to the rescue when companies are in trouble.

(BEGIN VIDEO CLIP)

SID GAUR, CNN IREPORTER: The companies got themselves into this mess themselves, so they need to find a solution to it themselves. The government can't always be there for them, and just can't be, like, their sugar daddy, giving them money when they need it to survive. It's ridiculous.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

HARRIS: Let's do this -- let's get straight to Fargo, North Dakota, right now. A blizzard is bearing down, putting stress on the already stressed-out levees.

CNN's Reynolds Wolf -- there he is. Reynolds, what are you -- well, you've got a shovel, that makes sense with a blizzard bearing down. You're in the neighborhood of Oak Grove? Is that correct?

REYNOLDS WOLF, AMS METEOROLOGIST: You are correct, my friend. We're in the neighborhood of Oak Grove. Let me show you around.

You know what's funny about the shovel, Tony, is although we've gone really from a flood story, and now we're to a snow story, the hardware has not changed. You know, we were using some of these things...

HARRIS: Yes. Good point.

WOLF: ... sandbags, and now we're moving snow.

And we've got photojournalist Steve Shorewood (ph). You'll notice the snow gets pretty deep out here.

Steve, by all means, don't follow me. I guess he's going to follow me.

(CROSSTALK)

HARRIS: Yes, he is.

WOLF: But I'll tell you, Tony, the big issue we have, of course, right now is the snow. It is coming down, with some areas around here could see easily a foot.

And we're talking about the entire region, not just Fargo, behind me, which is in the stretch of trees way off in that distance, or even over in this area. We have Minnesota on the other side of the flooded Red River.

The snow is just coming down in buckets. And the big issue we have with the snow is, of course, not just the heavy snow, but also the wind that's coming with it. How it might actually go up and push some of the dams and the sandbags is a big concern.

Something new that just came in moments ago for you. The mayor of Fargo is now allowing some people, people who might need some extra care, say, like the elderly, someone who may have some kind of impairment, they're allowing those people now to go back to their homes, in some of the flood-ravaged areas. So that is certainly some good news for some people.

But still, I mean, they're staying vigilant out here. I mean, you have to remember, this is still a major flood. It has dropped considerably, which is some wonderful news. But people are still out and about.

Like I tell you, the people in Fargo and Minnesota, they're very tough people. We've even seen some trains that have been going up and down this track here behind me. So other than the heavy snow and other than, still, the major floodwaters, things are pretty much normal. It's a normal spring day in this part of the world.

HARRIS: Yes. But schools are closed right now. Would that be correct?

WOLF: Indeed, they are.

HARRIS: Yes. Yes.

WOLF: The schools are indeed closed.

HARRIS: OK. And you're talking about power lines down and that sort of thing?

WOLF: There have been some, but you have to remember, this is an area that's actually used to dealing with this kind of weather, this kind of snow.

HARRIS: OK.

WOLF: I mean, it's nothing unusual for them. And in speaking of a lot of the kids, kids really haven't had much school at all. Many of them have been out of school, and they've put to work on those -- on the front lines.

HARRIS: That's right. That's right.

WOLF: You know, putting sandbags together and whatnot. So it has been a full community effort, and will continue to be until these waters recede all the way.

Back to you.

HARRIS: Reynolds, good to see you. Stay warm, my friend. Stay warm.

WOLF: Doing my best.

(WEATHER REPORT)

HARRIS: Accounting for -- listen to this -- $700 billion of your tax dollars. The numbers are just in. The Senate Finance Committee is holding a hearing on the bailout known as the TARP. It has been six months since the program was signed into law. The original intent, you may remember, was to buy up bad assets from banks and other financial institutions.

We'll keep an eye on the hearing.

(COMMERCIAL BREAK)

HARRIS: Ford is borrowing a page from Hyundai's playbook and offering a payment protection plan. Lose your job after buying a new car, and Ford will make your payments, up to $700 a month, for a year. Ford is the only one of the big three that hasn't accepted federal bailout money. Does that give GM and Chrysler a competitive edge?

(BEGIN VIDEO CLIP)

MARK FIELDS, FORD MOTOR COMPANY: We don't feel we're being disadvantaged, because we have been restructuring our company over the past three years. We have been investing in high-quality, fuel- efficient vehicles over the last couple of years, which are just starting to come to the marketplace.

So our approach is continue to work this plan, continue to make sure that Ford remains competitive, both today and in the future. And continue to work with our stakeholders to make sure that happens.

(END VIDEO CLIP)

HARRIS: And how about this -- Ford also announced zero percent financing today on certain models.

GM today also announcing a buyer protection plan. The company says it will make up to nine payments of up to $500 if you lose your job. The new CEO of GM talked about the future of the company and the need to turn things around quickly.

(BEGIN VIDEO CLIP)

FRITZ HENDERSON, CEO, GENERAL MOTORS: The reinvention of General Motors includes both improving the competitive operations, but also, we absolutely must -- we can only win if we get the job done in revenues -- selling, marketing, selling great GM cars and trucks today, and selling great GM cars and trucks tomorrow and in the future.

(END VIDEO CLIP)

HARRIS: Well, some in the auto industry are sounding off over President Obama's get-tough plan for automakers. The administration told GM and Chrysler they need to step up their restructuring plans if they want more taxpayer loans. Some workers see it as a lack of faith in the industry.

(BEGIN VIDEO CLIP)

ROB KRALL, GM SUPPLIER: The trickle-down effect that this is going to have for us as suppliers, especially with this whole re-org from somebody in Washington, I just think is not fair.

EARL FULLER, GM EMPLOYEE: If they don't have the faith that we're going to recover, it's pretty much resigning on the American dream, in my eyes.

(BUSINESS REPORT)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DANIEL GRAY, IREPORTER: You need to give the American people a real choice of vehicles that are fun to drive and get great mileage. The fastest way to do that is to through rapid adoption of clean diesel technology. Audi, BMW, Volkswagen, Mercedes-Benz all have wonderful clean diesel engine vehicles here right now that drive like a dream and get great numbers on the highway.

Why don't we have it? You've got ask the American carmakers.

(END VIDEO CLIP)

HARRIS: That's CNN iReporter Daniel Gray, making the point of many of our viewers about why the U.S. auto industry is tanking.

Washington's mandate to Detroit, fix it our way if you want more taxpayer money. CNN's Anderson Cooper talked with chief business correspondent Ali Velshi about the future of the automakers. He says, much of what plays out in the coming days may be beyond the reach of GM and Chrysler.

(BEGIN VIDEO CLIP)

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: There are two things going on right now. One is, can these automakers restructure, can they get their costs lower, can they lower their debt, can they get investors? That's a challenge that's been put to both Chrysler and General Motors.

But here is the other one. And that is that cars are just not selling. This is the chart of the last year. The yellow is Chrysler, the blue is General Motors.

The bottom line is, people are buying fewer cars and that is not right now as reflective of the state of the U.S. auto industry. This is something that's going on across the world. This is because of credit problems, as we mentioned, and the fact that with a falling economy, with jobs being lost, or the fear of jobs being lost, buying a car may not be at the top of everyone's priority list. They may make their old clunker go a little bit longer.

So that's the challenge. These companies have to get their act in order, but the economy has to come back a little bit in order to help these companies out. So it's a big, big challenge for the automakers, and at this point, for the government.

(END VIDEO CLIP)

HARRIS: You know, some experts think the government's hard line with GM and Chrysler will inevitably push them into bankruptcy. Let's talk about that with Sarah Webster automotive editor for the "Detroit Free Press."

Sarah, great to see you.

SARAH WEBSTER, AUTOMOTIVE EDITOR, "DETROIT FREE PRESS": Thanks for having me.

HARRIS: I want to go straight to something I saw yesterday in your paper, some of the reactions to the plans announced by the president. Actually, some of the analysis in the paper this morning.

This is from a representative from Michigan, Harrison Township, you know where Representative Candace Miller who says that I get that as a political statement -- here it is. We're going to put it up in just a second here.

"Today is another tough day in a long-running series of tough days for Detroit and our domestic auto industry..." and it goes on to say, "the President and the Auto Task Force have now determined that they know better how to run these complex manufacturing organizations and are going to force changes."

Now, I get that is kind of a shot at the president, kind of a broadside, I understand that. But in your view, are the automakers -- is the president's task force, is the president himself reviewing all of the options that are available to fix this crisis in the auto industry?

WEBSTER: Absolutely. It was always going to be a tough line for this administration to work with these companies, and do it in a way where they were not accused of being too involved or, you know, too little involved. I mean, it was always going to be tough for them.

The administration has said that they don't want to force these companies into bankruptcy, but at the end of the day, it's really out of the hands of the companies and really out of the hands of the administration. It's going to be up to all the stakeholders and whether they're will to go give up what they need to give up outside of the process of bankruptcy...

HARRIS: Sarah, let me stop you right there. Will you drill down on that?

WEBSTER: Sure.

HARRIS: When you tell us that it is in many respects out of the hands of the automakers and in the hands of the stakeholders...

WEBSTER: Absolutely.

HARRIS: .. they're kind of with the puppet strings here going on. What do you mean by that?

WEBSTER: Well, GM has bond holders who are owed a lot of debt. And you know, GM has been negotiating with them, the administration has, from what I understand, been acting as sort of a facilitator in that process to try to get them to take cents on the dollar of the debt that they're owed. If they aren't going to agree to do that outside of bankruptcy, outside of the process in court, then they're going to end up in court.

HARRIS: Well, bankruptcy wipes them out, doesn't it?

WEBSTER: Not necessarily.

HARRIS: Really? WEBSTER: At least, in the court hearing, they could negotiate. They would at least have a fair hearing where they would be able to go to court and make their case, and argue, you know, their point.

HARRIS: But Sarah, isn't the only real leverage here for these stakeholders, the president is leveraging this idea of either you negotiate something now, or run the risk of getting wiped out in court?

WEBSTER: Sort of. But, you know, if they go to bankruptcy, you know, they're going to get less. But it's really just a matter of strategy on the part of the bond holders.

And the bond holders aren't the only stakeholders here who have some -- you know, who would benefit from going into a bankruptcy. You also have thousands of car dealers who GM has struggled and, you know, Chrysler has struggled for years to pare down their dealer body to a level that's the rational.

And so what you have is, if we don't go into bankruptcy, how are they going to get rid of these dealers, because right now the dealers have independent contracts with these companies. Those contracts are still valid outside of bankruptcy.

HARRIS: Gotcha.

WEBSTER: If they go into bankruptcy, then we can start talking about redoing the contracts.

But, you know -- but you know, really, these companies are already bankrupt. I mean, so these stakeholders, really, it's in their best interest to just acknowledge that and do what they would do in a court bankruptcy, but do it out of court and make it faster for everyone.

HARRIS: So they're already in bankruptcy, in many respects here. And so what does that -- what does that really mean? I mean, are these companies going to survive? Is this idea of renting them in a bankruptcy -- what the heck does that even mean?

WEBSTER: Well, you know, it sounds really nice on paper.

HARRIS: Yes.

WEBSTER: But, you know, I don't know how fast any bankruptcy proceeding ever is. I mean, we have been covering some bankruptcies for years here in Detroit.

It's a really nice idea. I hope that, you know, that they can make that work, if that -- if it comes to that. But, you know, these companies -- when I say they're bankrupt, you know, when you can't pay your bills and you have to go get a loan from the federal government, you're bankrupt. I mean, you're out of money to run your business. You're bankrupt. So that's what I mean by that.

HARRIS: Yes, yes. I get it. Sarah, appreciate it. Sarah Webster from the "Detroit Free Press" with us this morning.

WEBSTER: Thank you.

HARRIS: Sarah, appreciate it. Thanks for your time.

And this just in just a short time ago, the company that owns the "Chicago Sun Times" and dozens of other newspapers and websites filed for bankruptcy protection. The Sun Times Media Group says it will continue to publish its papers and run its websites while it tries to restructure, settle its debt, and find a new buyers. The "Sun Times" owes the IRS more than $600 million in back taxes and penalties incurred under previous management.

Hundreds of people can't get to their homes, their work or their city right now. High water along the Red River still causing many problems.

(BEGIN VIDEO CLIP)

EMILY KJONAAS, CNN IREPORTER: Water is all the way up. Just exactly like 1997. And over there is Fargo. I'm on the Moorhead side right now. And the water is all way up to here.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

HARRIS: The Red River is slowly receding, but Fargo, North Dakota isn't out of danger yet, and it may not be for many weeks. Let's get you back now to Reynolds Wolf; he's live with us.

Now Reynolds, where are you now?

WOLF: I am actually still pretty much same location. We kind of moved around a little bit. We're just near the Oak Grove Community.

HARRIS: What's that behind you?

WOLF: We're kind of sheltered for the time being -- this is actually -- we step out a little bit, it's kind of a wooden shelter, kind of a wooden building kind of like a log cabin. And we're using it to kind of prove a point. When you get here, it's not that big a deal, but when you step out here and get into the full brunt of the wind, well it makes a little bit of a difference. It makes life a little more miserable.

And this is an important point to make, Tony, for you and our viewers all across America that are tuning in, that see the snow move right across your TV screen. As you step over here, you've got to remember, this snow, and, of course, the wind -- the wind is pushing against a lot of these earthen levees. They've been stretching for hundreds of miles along the river.

And you have to remember as this wind pushes the water against the levees, you see the water right out there, the levees are mostly made, of course, of dirt. Earthen levees. Check this out. As you get closer and as Steve Storm (ph) zooms in a little bit, this stuff is really porous. Notice how it just kind of breaks apart pretty easily. So when you have the water that is pushing up against it nonstop with the strong winds, it's going to test the strength of the levees, and that's why the National Guard is coming along and checking these stretches twice every single hour to make sure they maintain the strength. But they're going to do that until the waters recede.

Let's send it back to you guys.

HARRIS: OK, Reynolds, appreciate it. Thank you.

We're trying to catch up with as many people as we can now who are in this position of waiting for the river to fall. And as you know, it's particularly hard on the evacuees and we're trying to reach them and talk to them as best we can. We have got one such person on the line with us now. William Batten is with us.

William, good to talk to you. Thanks for taking the time with us.

WILLIAM BATTEN, EVACUATED FROM HOME (via telephone): Thank you.

HARRIS: And how long have you been out of your home, William?

BATTEN: Since last week. So about five, six days ago.

HARRIS: Do you have any idea what kind of shape your home is in?

BATTEN: As of yesterday morning, speaking with my landlord, he told me that apparently they had some sewage back up, got caught up in the basin areas. So it's probably going to be another week or so before the building can be deemed...

HARRIS: So they have to go in and inspect the building, your home, before they'll allow you back in. That makes sense, but is that the process that lies ahead of you?

BATTEN: Yes, sir, it is.

HARRIS: And about how long did you say it would be before you get some indication as to when you'll be let back into your home?

BATTEN: As of yesterday, they said that they would -- April 5th is the date that they would definitely let people know whether or not we could move back into the place or not. And...

HARRIS: Well, heck, that's another week, William.

BATTEN: Yes, sir, I know.

HARRIS: What have you been doing?

BATTEN: Well, currently I'm at the Moorhead - the gymnasium. (INAUDIBLE) And the American Red Cross and everything. And just trying to -- just trying to buy time right now. You know, just trying to -- just trying to hang in there with everybody.

HARRIS: I mean, what do you do? I mean, really, I'm just trying to figure out. What do you do with your time? I've never been in a situation like this, and many people watching haven't found themselves, fortunately, in a similar situation.

What do you do with your time? Is it reading books? What do you do? I know you're wearing your iPod, and the battery is probably dead ten times over. But what do you do?

BATTEN: It differs people to people. Some people are just pretty much sitting back, reading. Others are trying to socialize and trying to keep a -- just a little social network going on, just to kind of, you know, just try to, you know, keep some kind of hope a little bit so that everyone's not getting too, too depressed. Trying to find some kind of laughter and that kind of thing.

HARRIS: Well, are you avoiding being depressed about the situation?

BATTEN: Not really avoiding it so much. I mean, it's -- when you lay down at night and, you know, it's kind of just -- it kind of hits you then, you know, that you're kind of surrounded, you know, in an environment that's kind of unfamiliar. So it's about then that that -- for myself, that's when it kind of starts to kind of hit me. But, you know, I try to do whatever I can just to kind of stay busy throughout the day.

HARRIS: Well, William, do that. Stay busy. Thanks for your time.

And, you know, maybe we'll reach out to you in a week and find out if your situation has improved at all, or send us an iReport, if you can, all right?

BATTEN: Yes, sir.

HARRIS: William, appreciate it. Thanks for your time.

BATTEN: All right. Thank you, sir.

HARRIS: You can help the flood victims all along the Red River. Log on to CNN.com and click on "Impact Your World." You'll see several organizations that are helping in the relief effort right now.

Let's get you to Rob now. And Rob, I had to ask the question about whether or not you can avoid this whole idea of getting depressed in this situation, because it's difficult for so many people, and maybe there is a little comfort that so many people are in the same situation. Maybe you can buck up the spirits of your neighbors there, hopefully.

ROB MARCIANO, AMS METEOROLOGIST: Yes, that, plus the fact that the river is going down. That's a good thing.

HARRIS: That's good news. MARCIANO: But I suspect even when it goes down even further, Tony, they're going to keep those levees in place, until the spring thaw is completely done.

HARRIS: Yes. Good point.

MARCIANO: The rivers may very well come back by the time April rolls around.

But I can tell you this, for the next two weeks it will remain cold enough for that not to be an issue. So weather will not contribute to the floods getting worse, unless one of those levees breaks, because of the winds. And we'll see those winds for the next - in the next 12 to 18, even 36 hours up there.

And I should also mention what's going on down across the south. Severe thunderstorm warning there, or a watch, I should say.

Heavy snow across parts of the Dakotas and northern Minnesota right now. And winter storm warnings are posted, and also blizzard warnings for parts of eastern South Dakota. Six to 12 inches of new snow on top of what they already have. And then the winds that will be gusting at times, 20, 30, even 40 miles an hour. And that will be fairly steady, Tony, right through tonight and into tomorrow morning.

HARRIS: Boy, that is a lot of snow. Wind on top of everything that's already on the ground there.

Rob, appreciate it. Thank you, sir.

MARCIANO: All right. You got it.

HARRIS: You know, it may be a bit stormy in London this week, and not because of the weather. French President Nicholas Sarkozy already is threatening to leave the G-20 summit before the financial meeting begins.

(COMMERCIAL BREAK)

HARRIS: Just want to give you a quick update and bring you the latest video that's into CNN of the situation in London right now. We told you about at the top of the newscast and now we can tell you that police in London have given the all-clear after a security scare near the Bank of England, just, what, a couple days before the G-20 international summit in the British capital.

So once again, according to our Paula Newton and also pictures that you can see here, police have now given the all-clear to the situation very near the bank of England. A suspicious package, it was detonated, and now the all-clear has been given.

President Obama scheduled to land in London three hours from now. He is on his first presidential trip to Europe, to deal with the global economic crisis at the G-20 summit in London. France's president is already skeptical about the success of the summit.

Let's go live now to Paris and CNN senior international correspondent Jim Bittermann.

Jim, what's at the heart of this little dust-up here with the French president?

JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I think, Tony, it's basically the French president is saying that he considers this G-20 meeting to be extremely important. The French have a very strong vested interest in this summit. They basically believe that they put together the first G-20 summit back in November in Washington after urging outgoing Bush administration to gather leaders together there.

So they believe that it's very important that something happen at this summit, something big happen, something concrete happen. And so President Sarkozy said if they don't see forward movement on the - and progress being made at this summit, that he might just get up and walk away.

I talked to his chief diplomatic counselor, John David Levitte after he made that statement, after the president made that statement. Here's what Levitte had to say in response to my question.

(BEGIN VIDEO CLIP)

JOHN DAVID LEVITTE, CHIEF DIPLOMATIC ADVISER TO FRENCH PRESIDENT: We must be ambitious. That's what the people of the world expect from us. And to reveal confidence in the future of the world economy is really the message from the G-20 summit. So we cannot fail. That's the message.

(END VIDEO CLIP)

BITTERMANN: That was the message that John David Levitte repeated again and again, we cannot fail. Basically, the world is turning its eyes toward what's happening in London, and so these leaders must make some progress, some concrete process. The French would like to see that in the area of rules and regulations, international rules and regulations, to control the financial markets -- Tony.

HARRIS: Well, that's interesting. Is the French president, in your view, serious about this? You know him as well as anyone and you've covered him for some time now. Is he serious about the idea that if he feels nothing concrete is -- nothing big is happening here, that he will actually make such a statement with so many other world leaders in the room at the table, in the building, to get up and walk away?

BITTERMANN: Well, I think - you know, this, I think, is laying down a kind of marker in the sand before the summit begins. Basically saying, they should take this very seriously and they shouldn't let this opportunity go by and just come out with some more, as the French say, long dubouise (ph) sort of wooden language that's basically is meaningless. What he's wanting is some real progress on very concrete rules and regulations internationally. What the Americans would like to see here is some more bailout stimulus packages, but the French president likes the idea of more rules and regulations.

HARRIS: OK, Jim Bittermann, for us. Jim, appreciate it, thank you. And if you can, we'll talk to you again next hour.

More on the G-20 summit straight ahead next hour. I will talk to our White House correspondent Suzanne Malveaux about what President Obama hopes to accomplish.

Plus, a look live at security concerns at the summit with so many world leaders gathered in one place.

And are you ready to buy into the auto bailout plan? Two companies have new payment promises to get you into a new vehicle. We'll look at whether it's enough to rev you up.

(COMMERCIAL BREAK)

HARRIS: Travel to Cuba has been banned for 47 years, but that could all change if some U.S. senators get their way. Today, in Washington, they're expected to introduce a bill that would lift restrictions on travel and trade with the island. The group has tried before with no success, but they say it may be easier to pass the bill now that democrats control Congress and the White House.

Because of the recession, the airlines and ultimately you and me are facing a pretty bumpy ride right now. Fewer flights and bigger fares. CNN's Jeanne Meserve has the story.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): The numbers are stunning and sobering. The Federal Aviation Administration predicts the number of passengers boarding U.S. airlines will plummet 7.8 percent this year. Hardest hit? The major airlines, which haven't seen passenger levels this low since 1995.

RAY LAHOOD, U.S. SECRETARY OF TRANSPORTATION: I think business travel is down, I think leisure travel is down. But it's all as a result of a very lousy economy that all of us are facing.

MESERVE (on camera): Have you ever seen an economic event hit travel like this has?

PAUL RUBEN, AMERICAN SOCIETY OF TRAVEL AGENTS: Not in my lifetime, and I've been around a few years.

MESERVE (voice-over): Based on White House economic forecasts, the FAA projects there will be a slight increase in airline travel next year and a steady two percent to three percent increase each year after that through 2025.

DARRYL JENKINS, AVIATION CONSULTANT: I don't believe it for a minute.

MESERVE: Aviation consultant Darryl Jenkins believes economic worries are too deep for a quick turnaround. JENKINS: Even if the economy begins to turn around, that does not mean that consumers will be out there spending a lot. So I'm very pessimistic this year and next.

MESERVE: The airlines are expected to compensate for the lack of passengers by cutting capacity, perhaps by as much as five percent or 10 percent. That means fewer flights in and out of some cities, and crowded planes. It could also be bad news for travel bargain hunters.

RUBEN: If you believe in the fundamentals of economics, as price goes up, demand will go down.

(END VIDEOTAPE)

MESERVE: The FAA once talked about the number of airline passengers reaching one billion by the year 2016, but the economy has hit the airline industry so severely, they're now pushing that benchmark back to 2021. That's a delay of five years, Tony.

HARRIS: OK, Jeanne Meserve for us in Washington. Jeanne, good to see you, thank you.

MESERVE: You bet.