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G-20 Seeking Money Agreement; Inside G-20 Protests in London; Avoiding Student Loan Defaults; Congress to Vote on Budget
Aired April 02, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Happening now. The soggy southeast braces for more storms. We're watching from the severe weather center. And going for a global rescue. The leaders of the world's biggest economies launched a huge mission. Firming up financial markets and turning around the recession.
And faces of autism. We're marking World Autism Awareness Day this hour. Their fears of insurance coverage grow as their children do.
It's Thursday, April 2nd. I'm Heidi Collins. You are in the CNN NEWSROOM.
We begin this morning with breaking news on the weather front. Parts of the southeast could be in the eye of dangerous storms today. The National Weather Service has issued tornado watches for southern Alabama, the Florida Panhandle and southwest Georgia.
You are watching some live pictures of Atlanta right now. The National Weather Service has issued a high-risk warning for potentially dangerous weather across the state of Georgia.
We're watching it all from our Severe Weather Center. We'll have more details in just a couple of minutes. And, of course, we will keep you updated all day long right here in the NEWSROOM.
Now to the G-20 summit. Politics, money and a diplomatic minefield. This hour, President Obama and the other world leaders are attending their last group meeting. Their goal? Come up with a collective vow to better regulate financial markets and get a grip on the global recession, all while avoiding the trade dispute that could derail the talks.
We are also keeping a close eye on the protesters. Yesterday, the anger turned to violence. 86 people were arrested, one man in the crowd collapsed and, later, died.
We are covering all of the angles for you this morning. Suzanne Malveaux is following the president at the center of the world stage. And Christine Romans looks at the risks forming between the U.S. and its allies.
We want to begin with the big picture, though. And Suzanne Malveaux joining us from London in the city's famed landmark, the Marble Arch.
Suzanne, the president met with the president of South Korea today. What came out of that discussion? SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Heidi, very important. Obviously, they're all eyes on North Korea whether or not it is actually going to conduct a missile or a rocket launch. Obviously, both of these leaders very much looking at that closely.
They released a rather stern statement saying that there needed to be a stern and united international response if that actually happens. We know that President Obama, as well as U.S. officials, have reached out to all members of the six-party talks, those countries that have been involved in trying to push North Korea to give up its nuclear arsenal, that those calls have been made.
And one thing that the president said earlier, the White House indicating that if North Korea launches this rocket would be in violation of a U.N. Security Council resolution. If that is the case, the U.N. Security Council that the president would reach out to see if there is any kind of retribution or punishment that they would go ahead and conduct against North Korea.
Obviously, Heidi, a very serious situation. They're keeping a very close eye on what happens with North Korea.
COLLINS: Sure. Of course. What other important meetings are going to be taking place today, though?
MALVEAUX: Well, one of the things you'll see that the class photo that the G-20 summit, obviously, all these world leaders getting together. But equally important when you go to these summits is those sideline conversations, those meetings that the president has.
One of them, very important with Saudi Arabia's King Abdullah. That's going to happen momentarily. They're going to be talking about one of the priorities that the president outlined first day, day one of his presidency was the Middle East peace process. Moving that forward.
Also, obviously, oil prices very much connected with our own economic situation. And then later he is going to be meeting with the prime minister of India, Singh. That is going to be important, too, because he's going to try to explain to the prime minister, put at ease some of his concerns about a lot of that aid that the U.S. announced is going to Pakistan...
COLLINS: Yes.
MALVEAUX: ... India's rival, to go ahead and create a better life for people who are there and to go against the Taliban and al Qaeda. Very sensitive subject but when you put these leaders together face-to- face, the idea is to get them comfortable, to meet each other and to relax and be able to talk about -- at least start to talk about some of those really sensitive topics.
COLLINS: Yes. Indeed. All right, we're watching closely. Suzanne Malveaux for us this morning. Thanks, Suzanne.
Police in London are bracing for the possibility of more protests today. Yesterday, the demonstrations erupted into violence. Protesters and police officers were injured, dozens of people arrested. Today the protest moved from the heart of the city's financial district to the doorstep of the G-20 meetings.
Phil Black is there in the Docklands district and joining us with more.
So what's the situation like right now there, Phil?
PHIL BLACK, CNN CORRESPONDENT: Hello, Heidi. Just where I'm standing, just to give you some context is just down the road from the ExCel Center. You might just be able to see a little bit of it over my shoulder down there. That is the convention center, if you like, where world leaders are meeting to discuss the world's economic ills.
Here where I am on the security perimeter that's been established around that site. I am surrounded by -- well, a pretty colorful mix of protesters here. This is a special area that's being designated for protesters here. It's a mix of people. The loudest, biggest group here over here just to give you a sense of the issues they're talking about.
This crowd over here, they're angry that the Ethiopian prime minister is among the guests being hosted here in London at the moment. There are peace campaigners, environmentalists and people who genuinely care about the economic crisis. A broad mix.
As I say, colorful but pretty peaceful. Very different to those scenes that we saw about three miles west of here yesterday in the financial district of London, where thousands of people crammed outside the Bank of England to protest and many with the intention of causing deliberate trouble.
A sad story to yesterday's protests was the death of a person near there. The protesters believe that could have been a protester. Police haven't identified that dead person yet. But another protester is being held as we speak in the city of London to -- among protesters demanding answers to find out who that person was and just how he died. Heidi?
COLLINS: Boy, what a shame. And always seem to ramp things up when the camera is turned on, too.
CNN's Phil Black, sure do appreciate it, though. Thank you.
The G-20's some of the biggest bumps came even before the first meeting, but over the last 24 hours, French president Nicolas Sarkozy and German chancellor Angela Merkel have toned down their unhappiness with the general direction of the talks.
Let's get the very latest on that now from Christine Romans joining us from New York this morning.
So, Christine, tell us more about this rift, if we can call it a rift, with the United States.
CHRISTINE ROMANS, CNN CORRESPONDENT: Well, you know, and the Obama administration, of course, is downplaying that there is a rift or has been a rift. And Nicolas Sarkozy, as you know, earlier this week said that, you know, if we didn't get a crackdown on tax havens and real substantive regulatory reform at this meeting, he was going to walk.
And then asked more recently, he said walk? I just got here. So you can see that maybe some of the language has toned down a bit.
So what is the story here with the G-20 and fixing the problems? Well, everyone agrees they have to fix problems but how do to do that is where there are the disagreements or at least the different approaches.
You have the United States which is talking about stimulus and global stimulus and also the United States platform for regulatory reform. Timothy Geithner, the treasury secretary unveiled just recently to Congress coordinated stimulus, spending money by governments to get us out of this mess along with regulatory reform.
And then you have Germany and France focusing more on the regulatory reform part of this. In fact, Nicolas Sarkozy...
COLLINS: Yes.
ROMANS: ... talking about a super global regulator, something that a lot of economists I talked to and people who study these things they just probably is not very likely. You have sovereignty of different countries. It can be very difficult to have a super global regulator. Much more likely that you would try to get everyone to raise their standards, their individual national standards and do it that way.
COLLINS: Yes. It seems really strange to me, but watching it very interestingly, obviously. What do we need to actually see to come out of this meeting and maybe it is on the face of this regulatory stuff that we've been talking about for several weeks now in order to consider the G-20 a success?
ROMANS: Well, we need to see this sign of global cooperation. It's what the global markets want to see. It's what George Soros has said is incredibly important. This agreement that there will be better regulation to get us out of here and, you know, playing down any of these differences.
You know I think you're going to see talk about maybe an oversight board, quite frankly. There are international organizations that have been small and we don't normally talk about that might very well get to more clout in all of this. We'll probably see more money for the IMF to help the developing nations.
I think you're going to see some things like this on this front and I think you're going to see maybe a pledge from people that, yes, we are all going to redouble our efforts to improve regulation, to regulate hedge funds, to, you know, get rid of -- at least open up offshore tax havens, to try to look into this shadow banking system, these non-bank financial institutions like Bear Stearns, like Lehman Brothers and others that have been so dangerous to the economy. COLLINS: All right. Well, we're, obviously, watching all of these meetings and trying to figure out what is going to come out of it. But we also have some new numbers to talk about this morning right here in the U.S.
ROMANS: Yes.
COLLINS: Unemployment numbers.
ROMANS: And it underscores exactly what the problem is and what they're talking about at the G-20 quite frankly. 669,000 people in this country lined up for unemployment benefits in the most recent week, Heidi. It was a surprise jump. And the number of people getting a jobless check right now, 5.7 million people. That's the most recent reading on that one. Five -- for 10 weeks in a row, the continuing claims, that second number there, have been at a record high.
COLLINS: Wow. All right. Christine Romans coming to us from New York this morning. Thanks, Christine.
ROMANS: Sure.
COLLINS: Want to get you back to the weather now. A stretch for storms and tornadoes across much of the southeast. Powerful thunderstorms overnight brought heavy rains to counties around Albany, Georgia and today tornado watches are in place in southwest Georgia including Albany and for southern Alabama, along with Florida panhandle.
Roads and rivers are already flooded in southwest Georgia. Residence of low-lying areas are being urged to stay indoors. Business owners are hoping to protect their property with sandbags.
And our Bonnie Schneider is standing by now with the very latest on all of this.
And Bonnie, I got to tell you, driving in this morning, it was really treacherous. Some of the hardest rain I have ever been through, I think.
BONNIE SCHNEIDER, CNN METEOROLOGIST: I'm sorry to hear that but that is true. And it's only going to get worse. We already have a tornado warning right now including city of Troy and that's in Pike County in Georgia -- in Alabama, rather, just south of Montgomery.
(WEATHER REPORT)
SCHNEIDER: These are flood watches and warnings posted right now, Heidi. Expect up to four inches on the high side of the rain in and around southern Alabama on the border with Florida.
COLLINS: Ugh, Bonnie, it's spring break next week. We've got to clear this thing up.
SCHNEIDER: Yes, a lot of rain coming in. COLLINS: Yes. Definitely. All right, Bonnie, we'll stay on top of it with you. Thank you.
To this now. North Korea getting ready to launch. The U.S. military says the North Korean missile is being fueled up. President Obama reacting to the threat this morning.
ANNOUNCER: "First 100 Days" is sponsored by...
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COLLINS: President Obama met this morning with South Korea's president. The two discussed the possibility of a North Korean missile launch which could happen as early as this weekend. They agree the international community needs to have a strong and united response. They also agree to keep working together to dismantle North Korea's nuclear program.
President Obama also pledged to keep pushing for peace and stability in the region but stability may be threatened now with North Korea moving ahead with that planned rocket launch.
CNN's Kyung Lah has more now from Tokyo, Japan on this morning's development.
KYUNG LAH, CNN CORRESPONDENT: Well, Heidi, a senior U.S. military official says that fueling has begun on North Korea's long range rocket. What it signals to military officials is that North Korea now is in the final stages of preparing for those launch and that launch could happen as soon as Saturday.
North Korea says this is all for a peaceful mission, to launch a satellite into space for its space program. But the U.S. believes that this is actually a cover for a ballistic missile program.
Now Japan says it is preparing as well on the ground here in Japan. There are PAC-3 patriot missiles. These are missiles that will launch if and only if there is any debris from this rocket that is falling toward Japanese territory.
There are destroyers at sea, two in the Sea of Japan and one in the Pacific Ocean. They will also launch if debris starts to head toward Japanese territory.
Now North Korea says if its rocket is intercepted, it will be viewed as act of war and it will attack Japan's military and other, quote, "major targets." Heidi?
COLLINS: Well, all right, we're watching that story for you here in the Newsroom.
Meanwhile, police and soldiers in the West Bank are looking for a man who attacked two children with an ax. It happened in the Jewish settlement of Bat Ayin south of Jerusalem. Medics say a 13-year-old boy was killed and a 7-year-old badly wounded. Police say the attacker may also be hurt. They have closed all of the roads around that settlement.
It's almost unthinkable but still a reality for some parents of children with autism.
(BEGIN VIDEO CLIP)
PETER BELL, SON HAS AUTISM: I've heard some people say I hope my child dies before me.
(END VIDEO CLIP)
COLLINS: Growing up with no insurance coverage or safety net.
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COLLINS: On this World Autism Awareness Day, we're bringing you stories about families dealing with the disorder. Parents of children with autism have fears for their children's future, not just how they will develop into adults, but how they will be able to afford health care.
CNN's chief medical correspondent Dr. Sanjay Gupta joining us now.
Boy, it is expensive, to say the least.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: It's so emotion. We've been covering this so many years now. And the idea of trying to get health insurance is exhausting for these families that we found...
COLLINS: Sure.
GUPTA: ... both financially and emotionally. I think the heart of the issue is this. Should autism be treated like other diseases? Should it be compensated in terms of insurance like things like diabetes or cancer? That's what we're trying to find out.
(BEGIN VIDEOTAPE)
GUPTA (voice over): When he was born, Darian Sepulveda had his mother's personality. And his father's eyes. For 18 months, he laughed. He cried. He even spoke. At 2, it all disappeared.
ADA SEPULVEDA, SON HAS AUTISM: I was losing my child, basically, in front of my eyes. He was just dying on me.
GUPTA: Darian was diagnosed with autism. While his family began waging a battle against his disease, another fight was brewing. With Darian's health insurance company.
A. SEPULVEDA: I had absolutely no problem with coverage until Darian was diagnosed.
OK, open the?
DARIAN SEPULVEDA: Door.
A. SEPULVEDA: Door. Very good.
GUPTA: Now Darian is 10. His diagnosis began a financial spiral for his family -- years of denied claims, unpaid bills, mortgages, loans, debt that has become untenable.
A. SEPULVEDA: I call him the billion-dollar baby or the billion- dollar boy because it's very costly.
KEVIN WREGE, COUNCIL FOR AFFORDABLE HEALTH INSURANCE: Health insurance policies currently cover medical diagnosis and medical treatment for autism.
GUPTA: But many families say not all treatments are covered. For example, Darian's speech and neurological problems and some medications were not paid for. Insurance companies say most autism treatments are experimental, unproven. Covering them would cause everyone's insurance rates to spike.
A. SEPULVEDA: You don't tell a person that has a diabetic child, oh, well, you know, there is no cure for this. You give them insulin. You treat them.
UNIDENTIFIED FEMALE: Good job. Keep your fingers up.
TYLER BELL: Keep your fingers up.
UNIDENTIFIED FEMALE: Excellent.
GUPTA: Those insurance problems continue into the teenage years, into adulthood. 16-year-old Tyler Bell is about to graduate high school.
P. BELL: Who is your favorite musician?
T. BELL: Tyler.
P. BELL: Tyler.
GUPTA: Peter Bell is Tyler's father. He's a spokesperson for the advocacy group Autism Speaks. He's been fighting for insurance coverage for most of Tyler's life. Now he is concerned about Tyler's transition to adulthood.
P. BELL: The face of autism is changing. We're talking about kids that are now started to shave and do all those things that teenagers do and will eventually become adults.
GUPTA: Adults with autism with no insurance coverage and no other safety net to provide for them.
P. BELL: I have heard some people say, "I hope my child dies before me." And I don't know any other disease or disorder where that is the case. That's my biggest fear. That if we're not here to provide for him, who will?
(END VIDEOTAPE) GUPTA: That's remarkable doing these stories. One thing to note is that some of the laws are starting to change. There's an advocacy group, Autism Speaks, you just heard from some of them in there.
COLLINS: Yes.
GUPTA: They are trying to mandate private insurance companies to cover some of these treatments for autism. Eight states have signed on so far and they say more may sign on in the future. But you can see some of the struggles.
COLLINS: Yes. So clearly, that would be a state issue, not the a federal one?
GUPTA: That's right. And President Obama has been asked about this and has -- seemed to show some support for possibly having some federal support as well for, again, these mandated insurance companies to cover autism treatments.
Whether or not it will get done, whether or not you can classify these treatments from experimental and to things that can be covered by insurance, there are lots of little roadblocks along the way but you're starting to see some momentum.
COLLINS: Yes. Maybe not so little roadblocks. See, there are sometimes...
GUPTA: That's right.
COLLINS: ... pretty big ones, for sure. All right. Well, you'll see us posted on that definitely.
GUPTA: I will.
COLLINS: Thank you, Dr. Sanjay Gupta, appreciate that.
And autistic boy's best friend. This is a story you do not want to miss. How a specially trained dog is a calming influence for a special needs child. We've got a story you won't forget.
A Brazilian spear fisherman says never more. He's recovering in the hospital after shooting himself in the head with a spear. Not surprisingly he says he felt this sharp pain when the spear hit him, as I sit next to the neurosurgeon. He meant to hit a fish but the spear bounced off a rock.
He now says his spear fishing days are over. Surgeons removed the sphere and he is expected to recover. Unbelievable.
In New York, police say more than just pizza was being served up at a Bronx pizzeria. Six people have been arrested on charges of selling cocaine out of the restaurant. Investigators say the store manager and his crew concealed the drugs in pizza boxes and even offered their customers the option of delivery or takeout.
Police raided the pizzeria Tuesday and seized nearly 20 pounds of cocaine, about $20,000 in cash and four guns.
(BEGIN VIDEO CLIP)
BRIDGET BRENNAN, SPECIAL NARCOTICS PROSECUTOR: During our investigation, it appeared that the proceeds of the organization was several hundred thousands dollars so they were making a lot of money.
(END VIDEO CLIP)
COLLINS: Authorities say the owner of the pizzeria was not involved in drug dealing and faces no charges.
Getting down to business and hoping for progress. The G-20 economic summit is officially under way in London. We'll get you there live.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: Signs of hope for the economy have pushed stocks higher for two straight days. Can Wall Street make it a three-peat?
Susan Lisovicz is at the New York stock exchange with a preview as we are getting ready for the opening bell today.
Hi there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. And the early answer is yes.
COLLINS: All right.
LISOVICZ: It could be a three-peat at the open. Yesterday, we had a pulse. We just had a pulse in the housing market. Imagine that. And news from the automakers was bad, but not as bad as it once was. And that's encouraging. As the opening bell, that sparks optimism, rather, that auto sales may have brought them down.
There's more optimism on Wall Street this morning. We are expecting a big rally. Investors also seem to be encouraged by reports that the world leads at the G-20 summit have agreed to ramp up funding for the IMF. That money would go to help developing nations which have been hard hit by the recession affecting the industrialized world.
And there's word of big changes in accounting rules regarding those toxic assets crippling the banking industry. The change is, which could be retroactive, will relieve banks...
SUSAN LISOVICZ, CNN CORRESPONDENT: Investors also seem to be encouraged by reports that world leaders of the G-20 Summit have agreed to ramp up funding for the IMF. That money would go to help developing nations, which had been hard hit by the recession affecting the industrialized world.
And there's word of big changes in accounting rules regarding those toxic assets crippling the banking industry. The changes which could be retroactive will relieve banks from taking further heavy losses on investments still on their books. And if they get them off the books, maybe they will start lending and that would be good.
Investors are shrugging off another big number on the jobless front. About an hour ago, we learned the number of people applying for new unemployment benefits, jumped to 669,000 last week, continuing claims, hitting another record high of 5.7 million.
We do have some job cuts to tell you about. Plane-maker Bombardier cutting 3000 jobs in the U.S., Canada and elsewhere. Company says demand is weak. But there's a lot of demand on Wall Street in the first minute of trading, Heidi.
Check it out. The Dow registering triple digit gains. Can you say Dow 8,000?
HEIDI COLLINS, CNN ANCHOR: I can! I can say it loud and clear.
LISOVICZ: The Dow is up 160 points. The NASDAQ is up 27. Nice gains. And ringing the opening bell -- I wanted to mention this, Heidi...
COLLINS: Yes.
LISOVICZ: ...because you and Sanjay were just talking about it, that was former NBC CEO Bob Wright on World Autism Awareness Day. He and his wife, Suzanne, are cofounders of Autism Speaks, which provides a voice to hundreds of thousands of families dealing with autism. And the Wrights are also grandparents of a child with autism.
And you may recall that the CEO of the NYSC is the father of an autistic child. It is something that affects so many of us.
COLLINS: That's absolutely true. The entire month is awareness as well. So we will be doing several stories here.
All right. Susan Lisovicz, thanks so much for that. Appreciate it.
LISOVICZ: You're welcome.
COLLINS: President Barack Obama and other world leaders are talking money at the G-20 Summit in London this hour. They're trying to come up with a unified agreement on how to clean up the global financial mess. CNN's Paula Newton is live from the Excel Center now in London.
So, Paula, what kind of resolution are we going to see at the end of today most likely?
PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: Well, what we're going to see really are a bunch of measures that are going to regulate the financial markets. Not just for you and me in the United States, Heidi, but finally, some kind of coordination in the world to really do a few things. In terms of regulating things like hedge funds, credit rating agencies, getting a handle on executive compensation for the banks.
You know, U.S. Treasury Secretary Timothy Geithner has been quite clear, there is no use the United States going through all this regulation if they are just going to be loopholes and havens around the world. That's a key part of the agreement. Other than that, for what's in it, for people back home, Heidi, not so much.
You know, Barack Obama came here talking about a stimulus. He was talking about it again yesterday. He's not getting any agreement on that, whatsoever. Perhaps, the most he can hope for is leaders saying, look, if things get worst, maybe we will consider more stimulus further down the road in a few more months.
Heidi?
COLLINS: The president does have sideline meetings, if you will, a little bit later today. Who is he going to be meeting with, and what do we expect there?
NEWTON: Well, I think the thing is that he is talking to Saudi Arabia. And I think later today, this will mean a lot in terms of, you know, where oil prices are going and where are those negotiations lead. I think that right now he is holding so many bilateral meetings that he can barely keep up with the news out of here. And it's been big.
We've had Russia and arms control agreement, visits with China. You know, but he's also has bilateral meetings coming up with France, coming up with Germany. All of these very important, especially, Heidi, just to kind of try and tone down the America bashing that's been going on over here.
And I think the president is doing the best he can on the charm offensive. He's had some stiff words from the French President Nicolas Sarkozy and from Angela Merkel from Germany. He sat next to one of them at dinner last night. I saw him trying to buddy up to another today. I think that's what these bilaterals are about. And wow, he's really whipping through a lot of them in the next few days here, Heidi.
COLLINS: All right. Well, we are definitely trying to keep up with all of the news. Paula Newton, thanks so much. Joining us from London this morning.
Crowds of protesters slowly building this morning. Thousands have massed outside the Excel Center, where the G-20 meeting is just now getting underway. Thousands more are gathered in the heart of the financial district, where peaceful demonstrations turned violent yesterday. Some protestors were injured. Dozens more were arrested.
We took you live to London yesterday, when the protest first turned to violence. CNN's senior international correspondent Nic Robertson was there with a CNN camera crew. Here's his story from the middle of the mayhem.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): See the man with the shoe in his hand; single-handedly he's about to turn this protest ugly. Wielding shields as if in a medieval battle, police push forward and a peaceful demonstration becomes chaotic and we're caught in the middle.
(on camera): The police have just run forward. They've charged into the line here and now -- and now they're pulling back. But that's what's happening.
The police came forward, tried to grab a few people. They pushed again and the crowd ran back in panic. And the police pulled back and they're getting into that stand off again now.
(voice-over): We are in the heart of London's financial district, penned in by police on all sides and so are the demonstrators. In the front line, protesters are rowdy, crass and liquored up, but they are not the majority.
UNIDENTIFIED MALE: Well, I look at myself as something that is an innocent bystander. I actually work in the mayor's office.
ROBERTSON: It is one part carnival, two parts malevolent and several parts serious message: "Fix the broken economy, protect jobs or the environment or stop the bank bailouts."
LASER, PROTESTER: We're having the governments bail out all these bankers and all these corporations all over the world with our tax paying dollars, our hard earned money, our tax paying dollars and then the bankers are lending back our own money to us at interest.
ROBERTSON: The crowd here shifts gears quickly. One moment quiet the next all fired up, charging the police. A British lawmaker wearing a bright jacket marked "legal observer" warns that confining protesters like this could make them explosive.
TOM BRAKE, BRITISH PARLIAMENT MEMBER: What I'm worried about now though is that everyone is being contained and there are quite a large number of protesters here today who would actually like to go home. And I think that is going to -- there is a risk that it'll raise tension unnecessarily.
ROBERTSON (on camera): And can you leave right now?
BRAKE: I've been told I can't leave either. So I'm in the same boat as everyone else.
ROBERTSON: You're a Member of Parliament, and you can't leave.
BRAKE: I'm a Member of Parliament. That's right. I've been told I can't leave. ROBERTSON: What do you think about that?
BRAKE: Well, we have some significant civil liberties issues here.
ROBERTSON (voice-over): Police say demonstrators should have expected this. In the violence, some protesters smashed windows and got inside a bank, RBS, which has had the biggest government bailout.
With our press passes we're allowed to leave. We find out later that at the same moment a protester is found dying.]
Nic Robertson, CNN, London.
(END VIDEOTAPE)
COLLINS: The man who collapsed in the crowd died at the hospital. Bystander called the police, but officers and emergency workers were forced to retreat when they were pelted with bottles. The death is now under investigation. More than 80 people were arrested during the clashes with police.
We've got a lot of iReports on the London protest. Our Josh Levs is putting together the best of them for us right now. He is going to share them with us in just a few minutes.
We want to get over to Bonnie Schneider now standing by in the severe weather center, because, boy, to say the least, there's an awful lot of activity going on, southeast is what we're talking about today.
(WEATHER REPORT)
COLLINS: Yes. And boy, we are experiencing such a terrible drought for so long here. Hopefully, we are out of that now. Yes, we would like to see those lake levels get back up as well.
All right, Bonnie, thank you. Let us know if we need to come back to you.
Meanwhile, if you are near the Atlantic Coast or the Gulf of Mexico this morning, and you hear a tsunami warning, don't be alarmed. It is only a test. Authorities want to make sure the new system works before hurricane season begins in two months. The TV and radio messages are also airing in Puerto Rico and the Virgin Islands.
Spring is here as you know and the season of denial is over. Is it time to finally lose some weight? We'll show you small changes that can lead to big results.
(COMMERCIAL BREAK)
UNIDENTIFIED ANNOUNCER: Live, breaking news, unfolding developments, see for yourself in the CNN NEWSROOM.
COLLINS: Spring is here, and that means you can't use those bulky sweaters and big overcoats to hide those few extra pounds you might have gain. So how do you win that battle of the bulge as you face the milestones of 30,40 and 50? CNN medical correspondent Judy Fortin has some tips.
(BEGIN VIDEOTAPE)
JUDY FORTIN, CNN MEDICAL CORRESPONDENT (voice-over): If laughter is the best medicine, then Alaina Harris is pretty healthy. A member of an improv troop and a public health analyst, Harris knows what's good for her.
ALAINA HARRIS, DIETER: As I'm getting older, it's become more about long term, my health, what my long-term goals are.
FORTIN: So when her weight began to creep up, she decided to take action and began training for a triathlon. She's lost 30 pounds and hopes to lose more.
HARRIS: So my goal is to drop some pounds, to make that triathlon an easier experience.
FORTIN: Want to drop a few pounds before summer? Strength training can help. When you get into Alaina's age bracket, the body becomes less limber and you begin losing muscle mass.
DR. ARTHUR FRANK, GEORGE WASHINGTON UNIVERSITY: The muscle is what burns calories. That's the machinery of the body. That's what's burning calories. And so if you have less muscle, you burn fewer calories.
FORTIN: Start counting calories now. Jot down what you eat even if you're munching on it.
FRANK: If you write it down while you're doing it, you're much more likely to have it affect your behavior.
FORTIN: And share your plans. Alaina has a buddy system, where friends keep her on the right track.
HARRIS: It helps for me just having other people to help me validate what I've done.
FORTIN: Hitting middle age? Your metabolism slows down. That means your body isn't burning as many calories as it used to so even small amounts of food can cause you to gain weight. To rev up our metabolism, vary your exercise routine. Walk one day, work with small weights the next, but keep moving. A 30-minute walk for an average person can burn up to 120 calories. That's a couple of cookies!
FRANK: You keep moving. Walk up the stairs, you walk down the stairs, you walk down the hall, and you do all kinds of little things, and you have to make a point of keeping yourself active.
FORTIN: And eat on a regular basis. Throughout the day. Don't save your big meal for the evening. And drink plenty of water. It gives a kick to your metabolism. Follow these tips and you could be carrying fewer pounds by the summer. Something that Alaina Harris hopes to do.
Judy Fortin, CNN, Atlanta. (END VIDEOTAPE)
COLLINS: Voluntary testing. Authorities say that is how a potential problem with pistachios was found. Kraft Foods notified the FDA last week that it found salmonella in roasted pistachios during routine testing. Now that prompted a government warning and a recall, which took two million pounds of the nuts off the market. The nationwide scare has increased calls for more stringent food testing.
More and more people are falling behind with their student loan payments. What you can do to keep from going into default.
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COLLINS: It's a growing problem. People not making their student loan payments. But there are ways you can keep from going into default. Our Gerri Willis is here now with some advice on that.
So, Gerri, good morning to you.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, good morning.
COLLINS: How many defaults are we talking about here?
WILLIS: A lot. A lot. According to recent data, these student loan defaults are up to 6.9 percent for 5.2 percent a year earlier. Now we're talking here about federal loans, not private student loans. Let's just take a look at the trend here.
In 2003, the default rate was 4.5 percent. In '04, the rate go was 5.1 percent. So up a little. In 2007, the latest figures we have, the rate jumped almost seven percent. Now, we dove deep into Sally May's 10K filing. Sally May is one of the biggest private student loan providers. And we found that private student loan defaults are up 3.37 percent in 2008 from 1.47 percent in '06.
The increasing amount of student loans, well, it doesn't really come as a surprise. During the recession, the job placement rate for grads declined so grads can't start repaying their huge debts. It's that simple.
COLLINS: Yes. How do you best avoid defaulting on these loans, though?
WILLIS: Look, if you're afraid, you may not be able to make your federal loan payments, talk to your lender first. That's job number one. There are programs out there to help. Here's what they're called, Forbearance and Deferment.
Now in both cases, you can stop making payments for a little while. The debt doesn't go away, but the interest doesn't continue to accrue, even if you don't make payments. There is one exception. If you have a subsidized staffer, the government pays the interest.
If you're looking to get deferment, you usually have to meet criteria. But if you're unemployed, you'll likely qualify. COLLINS: Yes. Are there different ways to pay back your student loan, though?
WILLIS: Yes. OK, so if you're looking for a more permanent solution to your debt problem, you're looking for a career, maybe you're going to be in a career that doesn't pay a lot like a teacher or a public defender. Here's what you want to think about, what they call, Income Contingent Repayment or Income-Based Repayment.
You can qualify for the Income Contingent Repayment Plan right now. It pegs your monthly payments to your income, family size, the amount of your loan. Now, Income-Based Repayment Programs will be available this July. You have to wait a little bit. This will cap your monthly payments at a percentage of your discretionary income.
Now to figure out if you're eligible, it takes some complicated calculations. But there are calculators you can use. Go to thinaid.org. Devil is in the details here, Heidi. But people need to get active, get in front of the problem, because there are solutions out there for people who cannot repay these loans.
COLLINS: Absolutely. All right. We appreciate that. Gerri Willis, thank you.
WILLIS: My pleasure.
COLLINS: Here are some of the headlines we are watching now from The Hill. General David Petraeus will be facing questions again next hour. He's testifying at a house hearing on the Obama administrations new strategy for Afghanistan and Pakistan. That's strategy includes more U.S. troops and more money.
Democrats in the House and Senate are on track to give President Obama a budget victory. Votes are expected today on slightly paired back versions of his $3.6 trillion budget. Both versions are expected to pass. Meanwhile, Republicans in both chambers are putting forward alternatives with more emphasis on tax cuts and less on spending.
And Congress tackles the AIG bailout again next hour. Former AIG Chairman Maurice Greenberg faces questions from a House Oversight and Reform Committee. Lawmakers are looking into the collapse and federal rescue of the insurance giant, and the impact that is having on the U.S. economy.
A lot happening this morning. And our correspondents are hard at work keeping us up-to-date.
Good morning to you, everybody.
JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT: I'm Jim Acosta in Washington. Are you mad about the bailout? Wondering who is minding the bailout store? Well, meet the bailout cop. That's coming up in the next hour of CNN NEWSROOM.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: I'm Elizabeth Cohen. Help for a boy with autism from man's best friend. That's coming up at the top of the hour.
BONNIE SCHNEIDER, CNN METEOROLOGIST: I'm meteorologist Bonnie Schneider, tracking severe weather and flooding across the southeast. We have heavy downpours and thunderstorms all along the areas of Alabama, the Panhandle of Florida. Watch out for heavy rain and the threat for flooding over the next two days. That, plus two tornado watches. I'm tracking all of this severe weather in the CNN NEWSROOM. Heidi, I'll have more at the top of the hour.
COLLINS: Great. All right, guys, thanks so much for all of that.
We will also be talking about a 35-hour work week. What would you think about having more time off?
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COLLINS: First-hand accounts from the ground and the views of people all over the world. We're getting both in our iReport inbox this morning from the G-20 Summit in London. Our Josh Levs has his eye on all of them for us.
Hey, Josh.
JOSH LEVS, CNN CORRESPONDENT: And Heidi, you saw earlier on the show, we're piecing through them right here. They just -- they keep coming in, coming in more and more. And they're really interesting. In fact, let's zoom in on the board. I'm going to show you some of what we're seeing here.
These are just some of the latest images we're getting that involve the G-20. These are some protests. Scott Collonico (ph) is in London. And he's been taking some photos from the protest that he's been at. And he has been sending us these pictures from right there on the ground. Some more right here.
Also, people weighing in on different sides about whether they have hope for this. This is from Tim Hayes in Chile, which is "Hope for better, Prepare for worse." You can see the picture he chose to use there to represent there.
And he says he is hoping for economic stability, but preparing for hyper inflation. We also got something that is interesting here. It's a slide show from a protest, just outside Berlin. Take a look.
(BEGIN VIDEO CLIP)
STEFFI BRANDIT, IREPORT: Enough is enough. The politics of wasting must have an end. Human values have to run our lives. People are tired of being the game ball of politicians and managers, because they're greed for money is the reason of the global crisis. Now it's time that the common sense rules our world.
(END VIDEO CLIP)
LEVS: You saw that one there from Steffi Brandt. One more thing, Heidi, we're keeping a close eye on Twitter today, because so many people there and around the world are having conversations through this brief little messages on Twitter. In fact, it's the top topic on Twitter. We'll zoom back in. I'm going to show you just a few that we found that kind of represent the diversity of what people are saying.
Barry Johnson right here, "Complains that the G-20 has travel snarled. It's hard to get around for a pint after work. He says it's bloody outrageous." That's someone who lives there.
Then just someone else saying, "I wish I could be at the G-20. How interesting. I want to meet the Queen and the Obamas."
But some people are talking serious economic policy. AMartinBishop, right here. "I think we could see upside in commodities out of G-20, any thoughts on this theory?"
People then weighing in right there. You can weigh in. Go ahead and send us your iReports at ireport.com -- your photos, your videos, your stories. Whatever it is you've got. Also as you know, right here in the NEWSROOM, you can always e-mail us, cnnnewsroom@cnn.com. I've got my Facebook going, Josh Levs CNN. We've got it all up and running, and we're going to hear what you have to say about the G-20.
Heidi?
COLLINS: You are so connected.
LEVS: I'm doing my best. I feel like an octopus right now.
COLLINS: That's good. All right, Josh, thank you.
LEVS: Thank you.
COLLINS: Making headlines right now. Pro-football player Dante Stallworth is expected in court this morning to face a manslaughter charge. Cleveland Brown's line receiver accused of killing a pedestrian while driving drunk. It happened March 14th in Miami. Prosecutors say they'll ask that Stallworth be held on $200,000 bond.
Former Illinois Governor Rod Blagojevich could be indicted as early as today. He is accused of selling President Barack Obama's Senate seat, among other things. Today is the last day the grand jury meets to discuss the case. Federal prosecutors have been given until next Tuesday to secure the indictment against Blagojevich.
New unemployment numbers were released just a short time ago, and the news not encouraging. New claims for unemployment benefits are up to more than 650,000. Economists had expected a decline. Meanwhile, the number of continuing claims is up for the tenth straight week to 5.7 million people.
It is a busy morning in the NEWSROOM, and several stories happening right now. When it comes to your wallet, there may be no more important gathering at this hour than the G-20 summit in London. Later this hour, we should learn more about the efforts to get a grip on the global recession. Your money closer to home on Capitol Hill. Lawmakers are looking at the stimulus plan and the taxpayer bailout of AIG. Is there still outrage over how your billions were spent? And in the eye of the storms, warnings are issued across several southern states as fierce storms move in. We'll let you know just as soon as the siren sounds.
In fact, let's get some more now on that news from the weather front. Severe storms are firing up, and CNN meteorologist Bonnie Schneider is on top of all of it for us today.
So Bonnie, give us the very latest. What should we be concerned about here?
