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Securing the Summit: A World of Precautions for G-20; Lose Your Job, Keep Your Car; President Obama Lands in London; Red River Receding; New GM Head Warns of Tough Road
Aired March 31, 2009 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Well, assuming that they do agree on everything, and they won't, what can the leaders of the world's top economies do that isn't already being done? And who are those leaders anyway? Well, our Candy Crowley is going to join me with those answers later this hour.
Well, the new head of General Motors said that more plant shutdowns, more employee buyouts, even bankruptcy may be down the road. Fritz Henderson spoke with reporters just a day after President Obama announced GM's former CEO had been ousted as a condition of continued government aid. Other conditions include drastic cuts in costs and obligations with or without a bankruptcy filing.
(BEGIN VIDEO CLIP)
FRITZ HENDERSON, CEO, GENERAL MOTORS: General Motors, if we do need to resort to a bankruptcy process, that they will work with us on an expedited or quick resurgical (ph) basis. So I thought that the support received was unprecedented and was very, very clear and unequivocal and we're very appreciative of, again, both the automotive task force within the administration as well as the president's remarks and support.
(END VIDEO CLIP)
PHILLIPS: Well, Ford is alone among the big three in not receiving bailout billions from taxpayers and not undergoing a government-mandated overhaul, and it hopes to keep it that way.
(BEGIN VIDEO CLIP)
MARK FIELDS, EXEC. V.P., 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)
PHILLIPS: Well, get a loan, buy a car, lose your job. The next step could be, lose your car. But now both Ford and GM are offering to cover your payments at least for a time. Poppy Harlow joins us later in the hour with details on both deals.
Well, the media group that owns The Chicago Sun-Times newspaper has just filed for bankruptcy. The company's chairman says that he wants to reorganize operations while saving as many jobs as possible. This means both of Chicago's major newspapers are operating under bankruptcy protection.
For now The Sun-Times and its sister papers and Web sites will keep running as is. Besides the regular industry woes, well, the company struggled with $608 million tax liability racked up by its old management.
Right up there with the pain of bankruptcy is losing your home to foreclosure. But there's something that might be even worse, a bank walking away from your foreclosed property. The New York Times is reporting it's something that's happening across the country right now.
And you, the former property owner, are left on the hook. You may be hit with taxes on a home that you believed you no longer owned or maybe ordered to make repairs at a huge cost.
World, meet Michelle Obama, the first lady making her first overseas trip to Europe that's ready to be wowed. Some insight into how she's perceived and how she will be received.
(COMMERCIAL BREAK)
PHILLIPS: There you go to the live picture here as we come to you live from Washington, D.C. As you know, it happens every year, but someone we never get tired of seeing it. Why? Because look how beautiful it is. The gorgeous cherry trees blossoming along Washington's Tidal Basin there and around the city. I'm told that peak bloom is from tomorrow through Saturday or so. So I made it here just in time.
We're going to continue more from our Washington, D.C., bureau in just a second.
(COMMERCIAL BREAK)
PHILLIPS: Well, you're going to be hearing a lot about the G-20 this week, but what exactly is it? The G-20 is made up of top financial officials from 19 nations and the European Union.
And topping the G-20 agenda this week, a possible global stimulus package, finding ways to keep countries from limiting trade just to protect their own businesses and helping developing nations where the recession is hitting hard and also coming up with better ways to regulate financial markets.
And now that you know what the G-20 is, what, if anything, will be accomplished? And will it help or hurt President Obama? Here, of course, with our take, CNN senior political correspondent Candy Crowley. You know, I've got to tell you, I read that, right? Like finding ways to limit trade and protect our own business and helping developing nations the recession is hitting hard. And part of me is like, oh, boy, how do I get excited about this as average joe American?
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Absolutely. And, listen, the excitement will probably be in -- you get 20 people here. And there is the potential for someone to pop off at the U.S. for their economic policies because there's a lot of unhappiness.
So that tends to be what the news is. But just the picture is important. Just the idea that leaders of 19 nations and the E.U. are getting together to talk about some sort of mutual way to approach this. It can reassure markets, it can reassure the global population in particular.
They'll come up with a communique, it will be like a normal communique where you can read it 40 ways, and they will. Actually, they'll read it 20 ways. And then they'll all go home and do what they want to do.
PHILLIPS: OK. You have covered so many of these, though. Do you ever remember a moment where you left the summit and went oh, my gosh, major breakthrough?
CROWLEY: No.
(LAUGHTER)
PHILLIPS: There you go. Bottom line.
CROWLEY: I really don't. I mean -- no, but, I mean, there is value in coming together. There is value in talking about these things. I think in the end, they will come up with all of those things that you talked about. They will come up with agreement that there needs to be perhaps more stimulus in certain countries, that there needs to be more regulation of financial markets.
But maybe it has to be in each of the nations, not some big sort of uber financial regulator, you know, across the globe. So they will come up with something. And there's value in that, if they can get on at least mostly the same page.
PHILLIPS: You bring up a good point, I think, how often do I get to come face to face with you? It's always via satellite. And here we are in person and already I'm feeling much more love.
CROWLEY: Absolutely. And you should. That's exactly right.
PHILLIPS: You're right, it's the face to face, it's the interaction. We can't discount that, especially when we have to all work together nation to nation and decide on policies. I mean, popular president, like you said, with a lot of unpopular policies.
CROWLEY: Absolutely. There's a dichotomy here. And remember, he's new to them, too. And so they want to kind of size him up. But he has got -- it's really interesting because, remember, this is the guy that said, we have to cooperate with the rest of the world.
So he has to both kind of project American power, because that's -- that certainly America still sees itself and indeed most of the rest of the world sees itself as an economic superpower. So you have to sort of project that power and at the same time be multinational about it.
So always a balance for him and he's also representing unpopular policies, his economic policy as well as sending more troops to Afghanistan at a time when NATO wants out.
PHILLIPS: OK. Final question. You know we have been kind of hyping up this Sarkozy saying, oh, I'm going to walk out if I don't get what I want. Is this just a little dog-and-pony show, or is it possible that he could create some drama? I mean, this is somebody like you mentioned that was right by Obama's side as he was getting ready to -- or as he was running for president. And now all of a sudden...
CROWLEY: I think with Sarkozy, you always have to have a caveat in there that all things can happen. But I think by and large, you need to look at this as the leader of a country who believes he will get something about financial regulation, financial market regulation, and therefore says, I'm going to walk out if I don't get it, thereby looking as those he got it.
So I mean, I think you'll see a lot of that, because they have to -- they have to come back home with stature, with, hey, I played with the big boys.
PHILLIPS: With something, right.
CROWLEY: ... and I was there, we are a big boy. So I think that has to do with that.
PHILLIPS: All right. Candy Crowley, thanks so much.
CROWLEY: Sure.
PHILLIPS: Well, President Obama does sweep into London with some economic baggage but also a secret weapon. Michelle Obama is making her first overseas trip as first lady. And if you thought she was pretty popular here at home, well, she's something of a superstar across the pond as well.
Here's more from CNN's Erica Hill.
(BEGIN VIDEOTAPE)
ERICA HILL, CNN ANCHOR (voice-over): In the U.K., where celebs and royals keep the present running, Mrs. Obama is already seeing some ink of her own. Making headlines for her Vogue and Oprah covers, her organic garden she helped start at the White House, and, yes, those much documented and coveted arms. But this international love affair isn't just about what you see on the outside.
BECKY ANDERSON, CNN INTERNATIONAL ANCHOR: People like Michelle Obama because she doesn't just talk the talk, she walks the walk as well. She really gets involved in issues that count. And certainly in Europe and around the world, that is what has impressed people.
HILL: Issues like education, which she has pushed since day one, most recently with a visit to a high school in one of Washington, D.C.'s, poorest neighborhoods.
MICHELLE OBAMA, FIRST LADY: And I lived in a community where being smart wasn't necessarily the cool thing to be.
HILL: In London, Mrs. Obama will visit a school for underprivileged girls. She'll also venture out on her own to the Jewish Quarter in Prague, visits that could have a lasting impression not just in Europe but also at home.
CARL SFERAZZA ANTHONY, HISTORIAN, NATL. FIRST LADIES LIBRARY: We so often look at what our first lady does in our own country, but the truth of the matter is, what they do overseas really makes them, literally, figures of world power and influence.
HILL: Of course, it's important to remember this visit isn't about the first lady's agenda. It's about the president's.
ANTHONY: If anything, the two of them will only end up bolstering each other, sort of like, you know when you have Hollywood actors marrying each other, you know? It will really be a popular team. But I don't think that her popularity, as great as it is, is going to eclipse his.
HILL: The comparisons to the Kennedys can't be avoided. Jacqueline Kennedy's visit as first lady in 1961 charmed the continent and Americans alike, giving her a boost in popularity back home. While Mrs. Obama may not need much of a boost Stateside, any help for the U.S. overseas will be welcomed. And you can bet the world is watching.
Erica Hill, CNN, New York.
PHILLIPS: Flood fighters in the Midwest have a high-tech weapon in their arsenal to help them watch over those fragile dikes along the swollen Red River.
(COMMERCIAL BREAK)
PHILLIPS: Well, I-Reporters are sharing their stories about the threatened levees and flood dangers along the Red River in Fargo, North Dakota. These images are from Jay Raisen. The water level is actually slowly falling, but the danger is not over. Raisen says that he's proud of the way his community came together to beat the Red River. And right now everyone is pretty much exhausted.
Fargo city officials will be on the alert the next few days, melting snow from the blizzard hitting the area today could create more flood dangers. Volunteers and National Guard troops are being a vigil on those dikes and levees using helicopters and unmanned Predator drones now. Keeping an eye on things for us on the ground, of course, is our Reynolds Wolf.
Hey, Reynolds.
REYNOLDS WOLF, CNN METEOROLOGIST: Hey, Kyra. We have got all kinds of news for you coming out of this part of the world. And we are talking about directions. We have got the river that is going down, we have the snow that is beginning to pile up. We have wind that is coming in sideways. It's just a big mess here in this part of the world.
You know, the snow they can handle. They've dealt with snow here in this part of the world. Certainly not unusual for parts of Fargo or certainly over towards Minnesota and Moorhead. But when you get a lot of snow, when you have the wind coming in at the same time, you get the flooding situation we have over at the Red River, the combination of all of this makes things a little troublesome for people here.
And let me tell you, this part of the world, Americans live in this area, very hardy people, but, still, this will test just about anyone's patience. The snow that has been coming in at times has been just almost like sheets. What you are seeing now at home as it goes from right to left across your screen, I guess it would be, yes, left to right, for you folks at home, has been pretty deep in a few spots.
We have had some places where it has been near a foot, with the wind, of course, it drifts in higher piles. That's certainly something we have been seeing. And the wind has also been pushing a lot of this water and a lot of this ice up against these earthen levees that the National Guard has been inspecting at least twice per hour. And tell you what, they still have a lot of work cut out for them.
We still see certain things, certain things, certain signs, trees. We notice that basketball goal over there in the distance. Even the rooftops of a couple of garages that are submerged, almost look like little turtles that you see, just the shells popping out of the water almost.
What we are seeing more and more of that as the water slowly begins to retreat. But the thing is, this river could crest again later on in April, because all of the snow that we have on the ground, well, this is going to melt.
Probably won't reach the same magnitude of what we had, you know, a couple of days ago, certainly, but, still, it's something that they're going to be concerned about. The concerns we have are not just on the river but also on many of the roads.
Parts of I-29, stretching from Grand Forks southward into portions of South Dakota is going to be closed. So that is going to be a rough time for people who plan on getting out and about. Part of the crew tried to sneak out and get something eat a little while back between our live shots, I'll tell you, the roads here are just awful. In terms of city services, the city buses are not working. Strangely enough, though, we did see a garbage truck. And we still some sightseers that are coming by, taking a look at the historic footage.
Of course, the river is still at major flood stage, but dropping back the hour. So too is the snow. Back to you.
PHILLIPS: All right. Reynolds Wolf, appreciate it so much.
Let's get more now, details on the impact of the blizzard that could have an impact on the impact of that blizzard that could have an impact on the Red River.
Chad Myers, you're following it for us.
CHAD MYERS, CNN METEOROLOGIST: I have some pictures as well that I'm going to show you what we are really concerned about here. It's the wind here that is spinning around this low that is shoving wind from east to west, making significant lake-effect snow on the wrong side of the lake, by the way, of Lake Superior. But these wind speeds, 28, 24, 27 miles per hour.
We are going to show you some areas here where the wind has taken the ice from Lake Superior and shoved it onto the shore. Well, Lake Superior is a long fetch, it is a long lake, there is a long way to push that ice. Look how tall it is, like 20 feet tall these ice shoves that are coming off of the lake.
That's a piece of concrete that the ice picked up and moved somehow. Well, if this was part of the river system, this ice may be knocking down these sandbag barriers. Thank goodness, it's not. Thank goodness this is a 1,000- or 500-mile lake and not only half- mile wide river.
But some of these little pieces of ice along the Red River may be pushed into these barriers, into these sandbags and those sandbags could breach. That's the big threat of the wind at this point. Yes, there is going to be more snow. And at some point this spring, as Reynolds was saying, that snow has to melt, and we could be back up there again watching another flood in a half a month or so.
But for today, windy conditions, six to 12 inches of snow, a lot of the freeways are closed up there. The interstate is shut down because of the ice and blinding conditions.
(WEATHER REPORT)
(COMMERCIAL BREAK)
PHILLIPS: Well, questions about credit card debt and worries about investments with AIG, those sound like issues for personal finance editor Gerri Willis. Gerri and her team tackling your money questions for us. (BEGIN VIDEOTAPE)
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: We want to get you answers to your financial questions. Let's get straight to "The Help Desk." Doug Flynn is a certified financial planner and founder of Flynn Zito Capital Management. Carolyn Bigda is with Money magazine. And Jack Otter is a financial journalist.
Abby in California asks: "My husband has two credit cards with really high interest rates. I have one with low interest. We've been trying to pay his down since you told us to pay high-interest credit cards off first."
True, I did.
"Is there any way to transfer his debt to my credit card? We thought about using those low-interest checks my credit card sends, but you said those are bad as well. Is there anything we can do?"
All right, Doug. I want to start with you. This is almost a trick question here, I think.
DOUG FLYNN, FOUNDER, FLYNN ZITO CAPITAL MANAGEMENT: Well, I don't think she can actually transfer his credit card balances to her, but those credit card checks that you get are not good for normal payments of anything. But in this case, typically it's a 3 percent fee to do it.
So if the total savings in the first year is going to net you more, and if you're going to take several years to pay it off, it may make sense to pay that 3 percent for the convenience. Normally, I wouldn't do it, but in this case it may, depending how their interest rates stack up.
WILLIS: You've got to do the math.
What do you think, Jack?
JACK OTTER, FINANCIAL JOURNALIST: Well, the very first thing he should do is of course call the credit card company and try to get them to lower his rate. But presumably, they've tried that. So then I'm with Doug.
I mean, I hate those checks. I rip them up. I want to call the bank and yell at them. But this is one case I think it's a good idea, as long as the marriage is secure and they're staying together. Otherwise, she's stuck with all of the debt.
WILLIS: How about we get a new credit card? If I were him, I'd try to get a new card with a low rate. That's where I'd go with this.
Let's get on to the next question. All right. Jim in Florida asks: "What if you have VALIC," that's AIG, "annuities as your 403(b)? How safe is it?"
Carolyn, we've seen AIG in the headlines here. Lots of worries about that company. What do you say?
CAROLYN BIGDA, MONEY: Yes, there are lots of worries. But with this, the investment is basically as safe as anything can be in today's market.
AIG might be on the name of the annuity policy, but it's actually held through a subsidiary of that company which is a separate entity. Its assets are not really intermingled with the holding company that's in trouble today. So they can feel pretty confident about it.
And another thing to keep in mind is that the state insurance departments are keeping watch over these things. So they have to follow strict rules, too.
WILLIS: All right. So those people should feel pretty secure. "The Help Desk" is all about getting you answers. Send me an e-mail to gerri@cnn.com, or log on to cnn.com/helpdesk to see more of our financial solutions.
And the help desk is everywhere. Make sure to check out the latest issue of Money magazine on newsstands now.
(END VIDEOTAPE)
PHILLIPS: Well, protecting one country's leader is tough, imagine guarding 19 at a time in a major world capital. We will see how the Brits are securing the G-20 summit.
(COMMERCIAL BREAK)
PHILLIPS: Take a look at the Dow Industrials right now, up 159 points. It's moving up there, still up at -- remember last -- what was it, a week-and-a-half ago? We got up to about 500 points. So we're hoping for another rally. We will keep watching the numbers for you on Wall Street.
And a world of issues. The world's most powerful leaders, a powerful attraction for protesters, rabble-rousers, attention seekers, or even worse. So security is paramount at the G-20 Summit. And CNN's Paula Newton walks us through some of it.
(BEGIN VIDEOTAPE)
PAULA NEWTON, CNN CORRESPONDENT (voice-over): The location is far from glamorous and it's miles from Big Ben. London's old dockyards and the ExCeL Centre will host the world's G-20 leaders. And as far as Britain's security services are concerned, it's perfect.
A marine unit will patrol the waters on one end, concrete and barriers will cocoon the leaders on the other. So far so predictable.
JACQUI SMITH, BRITISH HOME SECRETARY: We have some of the best in the world at dealing both with public order and with any other risks that emerge.
NEWTON: There is no specific security threat to the G-20, according to British authorities, but it's what could go on in the city's financial center and through landmark streets of London that is preoccupying police and the government here.
(PROTESTERS CHANTING)
Saturday's G-20 meltdown protest was just a warm-up for what security services worry will be some spectacular stunts still to come.
(on camera): And one of those stunts may have already kicked off. Police here near the Bank of England have performed a control detonation of a suspicious device. It turned out to be nothing, but police taking no chances. They even advised people here in the city - bankers -- not to dress as bankers over the next couple of days.
UNIDENTIFIED MALE: So, if you come in wearing a pinstripe suit and smart shirt, you're going to look like an obvious target. So obviously the message is dress down, try and not stand out from the crowd.
NEWTON: And then there are the truly random acts of protests -- shoe-throwing, green slime-chucking, banners aflapping -- all of it police are trying to get under control, placing moles inside protest groups they believe could upstage the G-20.
SIMON O'BRIEN, METROPOLITAN POLICE: There's a lot of aspiration in the conversations that we're monitoring. They are quite open. Some people about their aspirations to cause destruction and havoc.
NEWTON: So the show will go on with the country still under a severe threat alert and authorities on stand-by for protest stunts that aren't typical security threats but a real menace for politicians hoping for a flawless summit.
Paula Newton, CNN, London.
(END VIDEOTAPE)
PHILLIPS: Well, across the channel in France, workers facing layoffs at a Caterpillar factory, they're holding their bosses hostage. The workers are upset the company plans to slash more than 700 jobs without negotiating. One of the five executives was released today because of health problems. Those still being held have been given food and water.
And it's still not easy following all of the bailout dollars the government has pumped into banks and firms. Overseers complained to Congress that the Treasury still doesn't make bailout recipients show what they did with the money. We do know the Treasury's invested in 364 banks so far and of the $700 billion in the original TARP, less than $110 billion remains.
Well, good news, you're going to start getting a little extra money in your paycheck. Bad news, I do mean little. Next pay period, your portion of the government stimulus package kicks in and lasts through next year. How much money you'll see depends on a bunch of factors but generally, single people should get an extra $10.00 to $15.00 a week. Married folks filing jointly, $15.00 to $20.00 per week.
Right now more than five million people in the United States need a job but can't find one. That's why we're bringing you tools to help. Check out this interactive map in our CNN.com website. It shows where job fairs are throughout the country right now. All you do is click on to your city and dates and locations will just pop up.
Well, one of those jobs fairs is actually happening in Atlanta, not far from the CNN Center. And that's where we're doing our "30- Second Pitch." We're actually giving jobseekers a chance to tell potential employers who may be watching why they should be hired. And you guessed it, they get 30 seconds to do it.
Joining me now, Conchetta Tuckson. She lost her job three weeks ago due to the bad economy.
Conchetta, can you hear me?
CONCHETTA TUCKSON, JOB SEEKER: Yes, I can. How are you?
PHILLIPS: Good. Well I'll tell you what, I'm in a good place, but my heart is going out to you. I read about what happened. You actually had a bad feeling at work and went in to ask your boss how the day was going. Tell me what happened.
TUCKSON: Well, he said it wasn't going to be a good day for me that day, and it wasn't. But that's OK.
PHILLIPS: Well, that's amazing.
TUCKSON: I am now in the job market.
PHILLIPS: I'll tell you what, you're keeping a pretty positive attitude. I was reading your story and yet you were positive about networking and contacts. So what kind of work are you looking for, Conchetta?
TUCKSON: I'm an IT audit manager and I'm looking for work in general compliance, fraud investigation, in regulatory compliance, and in audits. Sarbanes, Oxley and Stats 70.
PHILLIPS: All right, my dear, well, we're going to put up your Gmail address. I see it right here, we're going to get it up on the screen. OK, I'm going to ask all possible employers now to listen to your 30-second pitch. Are you ready?
TUCKSON: I am ready.
PHILLIPS OK. Otis (ph0, let's start the clock. Go for it, Conchetta.
TUCKSON: Hi, my name is Conchetta Tuckson. I'm an IT audit manager. I specialize in process improvement, audit, IT audit, regulatory compliance, general compliance and fraud investigation. I have over 15 years of experience, dedicated worker, looking for an opportunity to help the company better their bottom line by reducing -- by reducing waste and by increasing their bottom line dollar. I want to be a value added employee.
PHILLIPS: You know, everyone's going to love to hear that bottom dollar, reducing costs, saving money. Conchetta, you had all of the key words right there.
Conchetta Tuckson, there's the Gmail address. Let us know what happens, we want to follow up, OK?
TUCKSON: Thank you, I appreciate the opportunity.
PHILLIPS: We appreciate you. Thanks, Conchetta.
Voters in upstate New York are going to the polls in a very Congressional election. Some people see it as an early referendum on President Obama. Democratic businessman Scott Murphy is opposing veteran republican lawmaker Jim Tedisco. The vacancy was created when Democrat Kirsten Gillibrand was appointed to replace Hillary Clinton in the Senate. Well, President Obama endorsed Murphy and both national parties have pumped a lot of money into that race.
Buy our cars, please. The big three doing some major wheeling and dealing to win you over. We're going to weigh some of the latest offers with Poppy Harlow.
(COMMERCIAL BREAK)
PHILLIPS: Well, Hyundai did it first. Now GM and Ford are offering new buyer protection plans just in case you lose your job. CNNMoney.com's Poppy Harlow has more from New York.
Hey, Poppy. What do you have for us?
POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: Hey, Kyra.
Well, we all know auto sales have fallen off the cliff. Ford and GM making a big announcement this morning trying to jump-start their business, also one-up each other in the process. Both companies offering to pick up your monthly car payments if you buy a new car this year and you lose your jobs.
Here are the details, folks, that you need to know. Ford will make up to 12 months of payments of up to $700 on a new car if you lose your job this year. That offer starts today and ends the first of June. Now, Ford hasn't taken any bailout money, proving customer confidence is the key here.
I want to go to GM quickly. GM is going to offer up to nine months of payments of up to $500 a piece. This applies to new GM vehicles that are purchased in the month of April. So Kyra, that starts tomorrow - Kyra.
PHILLIPS: But isn't GM offering the same type of protection against your new car possibly losing value?
HARLOW: Yes, they are. It's a bit complicated. Here's one example, what happens is if you buy a new GM car today, within six years you want to perhaps trade it in for a new one but the one you have is worth less than, well, basically, the one you still owe. What they'll do is they will cover the difference up to $5,000 if you trade it in for another GM vehicle. So that's what's going on there, Kyra.
It's interesting, when Hyundai came out with this a few months ago, I didn't think so many people would jump on board, but now it's going to be interesting to see what other automakers join this cause now GM and Ford made a big announcement this morning.
PHILLIPS: Well, what do you think, as that comes forward? Will the plans be enough to jump-start sales?
HARLOW: You know, I don't know if they're going to be enough to jump-start sales, because a lot of industry analysts say this is just a sales ploy. But at the same point, this, a lot of experts say, is going to cost them less than rebate offers of thousands and thousands of dollars, Kyra, to all their customers because they can choose based on risk what customers they actually approve of for these cars. So, we'll see what it does. Hopefully, it's going to help them all, Kyra.
PHILLIPS: All right. We will track it. Thanks, Poppy.
HARLOW: Sure.
PHILLIPS: Well, GM and Chrysler are clearly fighting for their lives and that's hurting business even more. Almost 80 percent of people polled said that they are not likely to buy a new car from an automaker in bankruptcy.
Personal financial editor Gerri Willis here with what you should know about buying a car from a struggling company.
You know, we were talking about this today in the bureau, Gerri, thinking, hey, it's a really good time to buy. They're offering no financing.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right.
PHILLIPS: It just seems like a no-brainer.
WILLIS: It does. But there are things to watch out for.
Look, one of the biggest concerns out there for car buyers is that if you purchase a car from a manufacturer facing bankruptcy, your warranty is not going to be honored. But now, of course, Uncle Sam standing behind GM and Chrysler warranties. They call the program New Warranty Commitment Program and it's going to be funded by a blend of taxpayer manufacturing money. It covers consumers who buy a new GM or Chrysler period during the reconstruction period, which began yesterday.
Now you don't have to do anything to qualify. There might be some fears out there but the things you should be wary of, if you do decide to buy one of these cars from a struggling automaker, think about depreciation. You probably already know new cars, once you drive them off the lot, depreciate 20 percent. It's 30 percent total after the first year. But if you buy a car from one of these troubled companies, you can lose 50 percent of its value in just two years.
Now, if you're one of those people who likes trading your car every few years, you'll want to stay away buying cars from distressed companies. Of course, if you intend to run your car into the ground, the depreciation probably won't matter much to you. Also, if you live in a small town, the local dealership could go out of business and that means you might have to travel further to get your car serviced. So there's lots of little things to think about it.
PHILLIPS: Sounds like me, I usually drive them until they completely fall apart and there are so many miles they don't go anymore, Gerri.
WILLIS: That's a good strategy.
PHILLIPS: All right, good. I'm glad I'm doing one right thing in my life.
Well, the people who are on the fence by buying American, is there any silver lining for those folks?
WILLIS: Well, the whole reason you would do it is because of the big deals, great deals here. Manufacturers and dealers are rolling out heavy incentives, not just on the SUVs and trucks. Take a look at some of the best deals here.
Cash-back deal, thousands, literally thousands of dollars back in some cases, low APR, zero percent financing. It's back. Special pricing programs. Chrysler has employee pricing plus, where they get employee pricing plus additional discounts on cars.
Look, the bottom line here, if you shop around looking for a new car, you have got to look all over the place. You really got to check out a lot of manufacturers. There are manufacturing deals plus there are discounts from the dealership itself. Make sure you contact several dealerships since pricing can vary. So check that out. Definitely want to look around and make sure that you're getting the very best deal out there. But rest assured, you'll get a good one now.
PHILLIPS: All right. Gerri, thanks so much.
WILLIS: My pleasure.
PHILLIPS: Well, millions of Americans are looking for work, and I'm just now being told we're giving another one a chance to reach out to potential employees who may be watching CNN NEWSROOM. We call it the "30-Second Pitch." We're going to go back to our crew at the Women's Job Fair in Atlanta. And now I'm being told we're joined by Cheryl Pane-Bright. She's actually looking for a job since the newspaper company she worked for downsized in January.
Cheryl, where did you work?
CHERYL PANE-BRIGHT, JOB SEEKER: I worked for Cox newspapers, on downtown Atlanta. PHILLIPS: OK, so what do you think -- this is perfect, because we're all journalists. So maybe we can help you out here also where we work as well. What did you do there? And when did you find out they were letting you go?
PANE-BRIGHT: OK. I was the support services manager over all the production systems as well as the helpdesk and all of the governance policies and procedures, change, management and issues management, as well as offshore resources. I found out that my position was going to be eliminated back in September, and I was kept on for an additional month in order to help the other resources and downsizing efforts take place.
PHILLIPS: All right, Cheryl, here we go. We're going to get your e-mail up and I'm looking for the banner here. There it is, cpbright@bellsouth.net, correct?
PANE-BRIGHT: That's absolutely correct, yes.
PHILLIPS: All right. Let's go, Cheryl. You've got 30 seconds. Give us your pitch. Go ahead.
PANE-BRIGHT: OK. I am definitely an IT professional with over 15 years experience, specializing in quality assurance and integration testing, developing organizations, managing and coordinating all of the efforts associated with quality assurance, as well as developing test cases, strategy and also tactics that are used for integration testing. So I also have done research management performance reviews.
PHILLIPS: Outstanding. Cpbright@bellsouth.net. I know it's not easy to get on CNN and give the pitch, but Cheryl, you did one heck of a job. We're going to follow up. Let us know if you get any contacts, OK?
PANE-BRIGHT: OK, thank you.
PHILLIPS: Thank you, Cheryl Pane-Bright.
Well, if you're watching me on Air Force One, get those tables and seat backs in upright positions, cause you're about to land in London and we're going to be right there with you.
(COMMERCIAL BREAK)
PHILLIPS: Well, it's something Cuba and many Americans have been waiting a long time for, lifting the 47-year-old U.S. ban on travel to the gritty (ph) island nation. With a new president that's called for a new strategy towards Cuba, well, that time may have arrived. Some key senators are unveiling a bill that would remove the restrictions that have barred most Americans from traveling to Cuba.
(BEGIN VIDEO CLIP)
SEN. BYRON DORGAN (D), NORTH DAKOTA: However, this issue today with respect to the travel restrictions, is a failed policy that failed for 50 years and it's long past the time to change the policy. I want to show you how absurd the policy has become. Punishing the American people in our effort to somehow deal a blow to the Castro government has not made any sense at all.
(END VIDEO CLIP)
PHILLIPS: Well, another senator in the group, Republican Richard Lugar of Indiana, said that it's also time to reconsider the U.S. economic sanctions on Cuba.
The economy is taking a toll on people's travel plans. The evidence is in the numbers, with airlines really feeling the pinch.
CNN's Jeanne Meserve takes a look.
(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 predicted that the number of airline passengers would grow to one billion a year by the year 2016, but the economic skid has hit the airline industry so hard, they are now pushing back that benchmark to 2021, a delay of five years, Kyra.
PHILLIPS: All right, Jeanne Meserve, thank you very much.
Hey, we want to get you back to London now. This is the first stop of the first trip abroad for the Obamas as president and first lady. And they have just touched down right there in London. And of course, Suzanne Malveaux is going to tell us where they go from there.
Suzanne, he's probably going to want to get some sleep, but he may have to get busy with the prime minister and then Queen Elizabeth and all of the members of the group 20.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Kyra, we are watching the pictures as you are. Air Force One touching down at London International Airport.
And of course, it is going to be a very busy agenda. Today, not so much. He'll be a - there'll be a greeting there, obviously, at the airport, then he will go ahead and be greeted by American officials as well. And then headed for some good sleep, some rest, before tomorrow, because tomorrow will be an incredible day for the president as well as his wife.
Barack Obama, the president, will be meeting with the queen, Queen Elizabeth II. Also going to be sitting down and having a bilateral meeting, some very important meetings with world leaders. We are talking, obviously, from Britain but also from China, from Russia, from Saudi Arabia, India and South Korea, sitting down with all of them to talk about some of the priorities of the administration.
Clearly, the goal is to try to come up with some sort of way of dealing with this global economic crisis that everyone seems to find themselves in and has been impacted in such a way. So that really is going to be high on the agenda.
There's also going to be a press conference. We are going to see the president, as well as Gordon Brown, taking questions from the media. This is going to be quite early, Kyra. We're talking about close to 5:00 in the morning Eastern, but obviously, we're five hours ahead here in London. That's where they will be fielding questions. And then, of course, meetings will start in earnest with this group, with the G-20 summit.
And this is a unique gathering. You can see Air Force One obviously taxiing there. It's a unique gathering because it really is representation of 20 leaders from countries. They represent 85, 85 percent of the economic activity across the globe. So you can imagine the emphasis and also the varying agendas that you have from all of these different leaders coming together. The question is really whether or not they'll be able to get that much done, whether or not they there will be consensus because this is such a large group. PHILLIPS: Suzanne, let's talk about that for a minute. As a matter of fact, I have a couple of questions for you.
But I'm looking right now at the notes here of some of the notables there traveling on Air Force One with the president. Timothy Geithner with him. Of course, I guess we should expect that when talking about economic issues. Also Jim Jones, his national security adviser, there on the airplane with him. Maybe we should start with those two.
I think the obvious part is what Geithner and Obama plan to do economy-wise, you know, talking to these 20 economic nations on how to improve not only relations but also a failing economy here in the United States, which is adding, you know, contributing to the domino effect that we are seeing across the country.
MALVEAUX: Certainly. And there really is -- there is a difference of opinion here on the approach. Obviously, all of these leaders looking to their economies, unemployment, the stock markets plummeting, looking to try to come up with a way to fix it. And they've got different ideas. We have seen president Obama really emphasizing putting a lot of money, a huge infusion of money of money, of cash into the economy to stimulate economic growth. That is something that he strongly believes in.
Now, there's some other world leaders who are looking at the regulatory system. They say we should regulate financial institutions in a way that this doesn't happen again, that we hold them accountable and responsible. President Obama has said before that he thinks it's a false choice, you don't have to have one or another. That perhaps there's a combination of the two that some of the leaders can agree on.
But we have seen a difference in emphasis. The German chancellor Angela Merkel, has spoken out saying she doesn't necessarily think economic stimulus is the best way to go. We have also heard from the French president, Nicolas Sarkozy, who has said the same thing. He has even, Kyra, as we know, has suggested that perhaps he will walk out of the G-20 summit if...
PHILLIPS: Suzanne?
MALVEAUX: Yes.
PHILLIPS: Do you think he will do that? This was someone that was basically -- Candy Crowley and I were talking about this earlier on - that, you know, Sarkozy has been right there at President Obama's hip, all the way up to when he won the presidency, wanting to be attached to him, a part of him, involved in conversations with him.
Do you really think that he would do something like that, or is this part of his, you know, he's known to create a lot of theater at times, shall we say. Do you really think he would just pick up and walk out? I mean they're going to achieve something.
MALVEAUX: If you talk to the political observers and the journalists here, they see this as somewhat posturing on his part. That obviously that these are strong statements that are meant for public consumption at home.
And there is a certain gamesmanship, if you will, before these meetings start where people come out and they talk about what it is they want for their -- for their populous and their economic situation, what they think is best. And then they back away and they get down to the hard business of sitting down across, looking eye to eye with other people who disagree.
And so there's a sense here that, no, he probably is not going to bluster out and make any kind of statement that way. As a matter of fact, he's going to have a joint press conference with the German Chancellor, Angela Merkel, tomorrow. So it should be very interesting to see the tone, the body language between those two as we look to Barack Obama as well as Gordon Brown.
PHILLIPS: And, you know, you mentioned Angola Merkel. Also as he heads to NATO, that will - we'll probably talk more about this tomorrow -- his first foreign policy issue, talking about Afghanistan. I think there are a lot of people paying attention to that to see how those conversation go and what comes out of that, Suzanne.
MALVEAUX: And Kyra, the expectations for that are rather low. I talked to White House aides, there's no one who's thinking that they're going to get any kind of great promise from NATO allies to contribute more troops inside of Afghanistan. The contrary.
But what they are seeing and something that the envoy to Afghanistan and Pakistan, Richard Holbrooke, told me just a couple of days ago when he was giving his briefing in Washington D.C., is that they do have allies in countries that are going to come together and come forward with commitments.
Now they're not talking about additional troops, but they are talking about people who are willing to go there and help train the Afghan police, the Afghan army people -- a country like Japan, who says it's actually going to be footing the bill for a lot of these -- the Afghan training that happens in the first six months or so. So they'll have financial contributions. There will be people who will be on the ground to help with kind of the civilian side of things, Kyra.
PHILLIPS: All right, Suzanne Malveaux, stay with us. This is going to wrap it up for us here in Washington D.C. Of course, we will be following the summit all throughout the week. We're going to toss it over now to Rick Sanchez as he picks it up from here - Rick.
