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G-20 Summit Continues, Amid Protests and Meetings; Examining Ways Companies Are Battling the Recession; More Severe Weather in the U.S.

Aired April 02, 2009 - 10:00   ET

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

BONNIE SCHNEIDER, CNN METEOROLOGIST: Thanks, Heidi.

We're concerned about tornadoes because we have two tornado watches in effect, but we're also very concerned right now about flooding in and around the Tallahassee area, and the panhandle of Florida. That's where it has been raining. We've accumulated several inches over the past few days. More is to come. The tornado watches extend northward all the way into Georgia, southward into Florida and then back out further to the west, well into Alabama. This means that we are watching this area for the threat for tornadoes throughout the day. The tornado watches actually extend straight until 3:00 p.m.. We're also tracking flooding, warnings and watches are posted. I'll have more throughout the hour, Heidi.

HEIDI COLLINS, CNN ANCHOR: All right. Very good. Bonnie Schneider, thank you.

The G-20 summit now entering its final minutes. The leaders of the world's biggest economies are looking for ways to blunt the world recession. Also looking for ways to better regulate financial markets. Leaders of France and Germany have publicly voiced concerns the meetings will not accomplish much. We should know more in just a few minutes from now when the leaders wrap-up their meeting in London's district. They are due to hold a news conference a little bit later this hour.

Throughout the morning, protests have been building. We're going to check in on that in just a moment. But first, let's begin with the big picture at CNN's Suzanne Malveaux. Suzanne joining us now live. The president met with the president of South Korea today. Wondering what came out of that meeting?

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, certainly all eyes are on what's happening with North Korea. This potential threat of launching a rocket. And this is something that both of the leaders are looking at very, very closely. This morning, they released a statement, a joint statement saying that there needed to be stern, international response to any kind of action that happens like that. We also understand that President Obama, as well as U.S. officials, reaching out. They've already reached out to all members of the six- party talks to countries that have been involved from the very beginning under the Bush administration to try to put pressure on North Korea to give up its nuclear arsenal.

The President also making it very clear that this would be a violation of a U.N. security council resolution. So in punishing North Korea, it would take it back to the U.N. security council. That is the body that would deal with this. But obviously, there is a bit of concern about this, and they are keeping a very close eye to see what happens in North Korea. Heidi.

COLLINS: Yes, we were just talking a little bit earlier with our Paula Newton, Suzanne, and she is explaining to us about all of these sort of side bar meetings that are going on as well for President Obama. Talk to us a little bit about the issues and the goals that the president and his counter part are really after today.

MALVEAUX: Well, certainly, I mean, covering a lot of these summits, you see these pictures, the class photos of all of these leaders getting together, obviously very interesting, rare moment. But really, a lot of what takes place here, are those side meetings, equally as important. President Obama is going to be meeting with Saudi Arabia's King Abdullah. They are going to be talking obviously about a priority since day one of President Obama Middle East peace. Also, oil prices, very much influencing our own markets back at home.

And then secondly, he's going to be meeting with the Prime Minister of India, Singh. They are going to be talking about a very, very sensitive issue and that is the U.S. putting in so much money, new money into Pakistan, India's rival to try to help those people there, to go after the Taliban and Al Qaeda, give the people in Pakistan another way of life. India quite concerned about what that might mean in terms of disrupting the balance of power there. So they're going to have a very important talk about that, Heidi.

COLLINS: All right. Suzanne Malveaux for us this morning. Thank you, Suzanne. Just a quick reminder, a look at the president's day. As you heard Suzanne mentioned, later this hour, he is expected to meet with the leaders of Saudi Arabia. Next hour, he'll meet with leaders of India. Just a couple hours from now, President Obama is due to hold a news conference.

So far today, protesters are getting their message across peacefully. That's a welcome change from yesterday, when violent clashes with police erupted in the city's financial district. CNN's Becky Anderson is watching the crowds.

BECKY ANDERSON, CNN CORRESPONDENT: Well, there are all still demonstrations in the financial district of London today, but the focus is very much moved. About three-and-a-half miles to the east of the city to the ExCel Center where we are now, just ahead to my left, you can see where these G-20 leaders are currently gathered. There are protesters here - hold on. There are protesters here, and who have very real grievances. Perhaps less today protesting today about the state of the world economy, more on political issues, which I guess is absolutely fair enough.

Let's just walk this way. Let's just walk this way, and you can see where we have got some police presence today. Do expect as this protest gathers momentum to see perhaps as many if not more police than we saw in the - in the financial district yesterday. But it is, as you can see, a very peaceful protest at this point. The police will be minded, but if anything gets out of hand, they are prepared to deal with that. But as you can see at the moment, it's a fairly nice day, as far as the weather is concerned. And the police certainly keeping people in tow. But no sense of aggravation here at the ExCel Center in London. I'm Becky Anderson. Back to you.

COLLINS: So while the protesters gather outside, the leaders are inside, working on all of those tough issues. We're following everything that's going on at the G-20 summit. We will go there live at the bottom of the hour.

Meanwhile, I want to check out the Dow Jones industrial averages now, because look at that, we're up more than 200 points at this point in the trading day, about 35 minutes into it or so. Just hovering below that 8,000 mark that we were talking with Susan Lisovicz about a little earlier today. So we'll keep our eye on those numbers for you today, as always.

Also, live pictures from Capitol Hill now, the man who built AIG into an insurance powerhouse being questioned by lawmakers from the house. Many are still angry over the bonuses paid to executives after the government bailed out that company.

Christine Romans is with us from New York to tell us more about Maurice Greenberg. So, Christine, what do you think he'll be telling lawmakers today? And remind everybody, if you would, who exactly he was and when he was in charge of AIG.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hank Greenberg built this company up into a global insurance powerhouse. I mean he ran this company for maybe 40 years. He was ousted in 2005 over an accounting scandal there that he was not ultimately charged with or tied to in any way. So he is somebody who ran this company for a very long time until recent years, and actually, the credit default swap business that essentially took this company down in the end was something that started under his tenure at a small shop that got bigger and bigger when he was actually running this company.

Now, you're going to hear I think a lot from the folks on the Hill asking him about the mistakes that were made and how we got here. And he, according to his testimony, he has a way out. He wants to talk to them about how to get the government out of the insurance business, basically. He thinks that private investors can be recruited to buy back this company from the government, and he is going to try to sell Congress on his solutions for this problem. He says that this wouldn't have happened on his watch, this entire debacle.

COLLINS: Yes.

ROMANS: And he's got some solutions for them. So we'll see if congress wants to talk about the solutions, or whether they want to talk more about, you know, what might have been happening when he was leaving this company, when the problems began.

COLLINS: Yes. It's going to be pretty interesting. A lot of people may not realize where this all sort of started. And how this company came to be as big as it is right now. Christine Romans, sure do appreciate this. Unfortunately, we've got to get over to Bonnie Schneider who is standing by now, breaking news to update us on some of the weather situations that are happening. Bonnie, I'm understanding a tornado warning now in Florida to talk about?

SCHNEIDER: Right. In Bay County and that does include the city of Panama City. It also includes the cities of Lynn Haven and Callaway, this is until 9:45 Central Time. So we're tracking a very strong storm system that on Doppler radar has indicated some rotation. And when there are tornado warning that means a tornado can touch down at any time. You can see the steady flow of moisture coming from the Gulf of Mexico, in and around the Panama City area.

As I zoom in, this is the cell we're watching right here coming on shore. So the tornado warning, once again, goes for about another 40 minutes, and it does include the city of Panama City, as well as Callaway, into Bay County, as well as Lynnhaven. So this means that the Doppler-radar indicated tornado, part of a bigger scale situation that we're watching including two tornado watches that cover most of the southeast and flood watches and warnings throughout this region. Very heavy rain, Heidi, over the panhandle of Florida for today, southern Georgia and into Alabama. I'm tracking it for you. We'll have more in just a bit.

COLLINS: All right. Bonnie, sure do appreciate that. Thank you. Busy, busy day weather-wise.

Meanwhile, other lawmakers are focusing on what's up with the economic recovery plan. Is the money going where it's supposed to? CNN's Jim Acosta talks with the man in charge of tracking every penny.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): Lashing out at bankers is all the rage these days.

UNIDENTIFIED FEMALE: When do we want it?

UNIDENTIFIED MALE: Now!

ACOSTA: Much of the outrage is over the taxpayer bailout on Wall Street and how several bailed out firms have doled out big executive bonuses and bought lavish corporate jets, all of it begging the question -

Where has this bailout money gone? Do we know?

NEIL BAROFSKY, BAILOUT SPECIAL INSPECTOR GENERAL: We're finding out.

ACOSTA: Neil Barofsky is determined to find out as the Treasury Department's special inspector general investigating the bailout or T.A.R.P. as it's been known in Washington. He's been called the bailout cop. So you don't mind being referred to as the bailout cop?

BAROFSKY: No, that's actually one of the most important parts of my job.

ACOSTA: He knows the job well. As a federal prosecutor, Barofsky took down REFCO CEO Philip Bennett who went to prison for defrauding investors.

BAROFSKY: I'm honored to appear before you today.

ACOSTA: Just three months on his new beat, Barofsky has launched an audit of those AIG bonuses and he says he has opened up at least a dozen criminal fraud investigations into bailout recipients, based on tips from whistleblowers. He wouldn't offer details but he explained what he's after.

BAROFSKY: One example, a bank lies. In order to get funding from some of the investments that you've heard about, they have to present financial information to the Treasury before they can get that money. If there's a lie, if they're cooking their books, if they're shaving away their accounting for those assets, that's a crime.

ACOSTA: Because the banks were never told just how they could use the bailout money -

BAROFSKY: It was left up to the banks what to do with the money.

ACOSTA: Barofsky cautions those corporate jets may not amount to a crime. He's asked 364 banks and financial firms to reveal just how they've spent their bailout funds. Some of it, he adds, has gone to legitimate purposes.

BAROFSKY: The part of the problem is that when banks receive this money, they weren't told to keep track of the money. We've made a recommendation that they should be required to do so, but they weren't, so some banks -

ACOSTA: They weren't told to keep track of this money?

BAROFSKY: They were not. They were not.

ACOSTA: So it's possible at this point that we may never know? Where all of this money has gone?

BAROFSKY: We're going to do our best to find out.

ACOSTA (on-camera): Neil Barofsky says any tips on bailout fraud should go to his website sigtarp.gov. If Barofsky and his team of attorneys are able to make a criminal case, he says he will turn it over to the Justice Department for prosecution. His next report on the bailout is due out in three weeks. Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

COLLINS: On the lookout for tornadoes in parts of the southeast. We're in the severe weather center tracking it, keeping you posted.

(COMMERCIAL BREAK) COLLINS: As you well know, when you have severe weather, the situation can often change rapidly. And Bonnie Schneider is standing by in the severe weather center now to give us an update. Are we still looking at tornado warnings here in Florida?

SCHNEIDER: That's right. Just checking if anything else came in. But right now, we are still where we were just a minute ago. We still have a tornado warning, which includes the city of Panama City. Now, a tornado has not been spotted and a water spout hasn't been spotted over the waters in the Gulf of Mexico either. But Doppler radar is indicating for the areas of Bay County in the panhandle of Florida that we are getting rotation in the thunderstorms.

And take a look, I'll open it up so you can see on the bigger picture, that we do have quite a bit of activity in terms of heavy rain, as well as a threat for strong, damaging winds and large hail with this system. Currently, some of the strongest in terms of thunderstorms is coming off shore. But it's all coming on shore rather quickly. This is an area that has seen heavy rain for the past few days so more rain is going to exasperate the situation in terms of flooding.

We want to show you a live picture of Tallahassee, Florida, another city that is under the gun for severe weather today. And you can see the rain on the camera lens, this is courtesy of our affiliate WTXL in Tallahassee, Florida. Tallahassee is under a tornado watch right now. This will extend straight until 3:00 this afternoon. A second tornado watch has been issued further east in advance of this system. This includes the city of Jacksonville, Florida. So Florida, particularly, going to see some very bad weather, as well as southern Georgia. We had some really, really strong thunderstorms through the Atlanta area earlier this morning. That's all pushed south.

Albany, Georgia, faced flooding, over the past few days, more rain is coming down in Albany, as well as Macon, Alabama, Montgomery. You can see the warnings that are posted in and around the Tallahassee area. We also had some flash floods report into areas of southeastern, into the southeastern parishes of Louisiana, south and east of New Orleans. This area for today is listed as a moderate risk, that is very serious situation, Heidi, that's when we tend to see more frequent tornadoes and a wider spread area, as well as large, damaging hail and strong, gusty winds that could exceed 58 miles per hour.

This threat will persist throughout the day, so we'll be keeping it here and letting you know whether we get anymore warnings in. But right now, that one for Panama City does continue for another about 35 minutes.

COLLINS: OK. Yes. And looking at that map there, that moderate risk, it is a really large area, so obviously let us know if we need to come back to you. Bonnie, thanks so much.

SCHNEIDER: All right.

Meanwhile, we want to get you back to this story, because we thought it was just really unbelievable. A spear in the head. An underwater accident left a Brazilian fisherman with what he described as a sharp pain. You think? No kidding. That's what he said. CNN chief medical correspondent Dr. Sanjay Gupta joining us now. Every time I look at that picture, I just cringe. A spear in the head, I mean, it doesn't really look like it would be something you can walk away from.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: But remarkably, you can, and he did. It is pretty startling to look at, when you look at an image like this, obviously you're looking at the back of his head. You see this large spear sort of going in, but it doesn't tell you a lot of information, how far is it in, where exactly. So what surgeons and doctors will often do right away is start to get more images.

One of the things they get immediately is something like this, Heidi, which is a sort of a 3d reconstruction, trying to figure out exactly what happened. Obviously, you see the spear going in here, you see its proximity to the eye. You know some of the major vascular blood vessels are going to line this area, so you go ahead and strip away the skin and you can tell even more information when you do that. That's what it looks like.

Again, here is the eyes down here. Here's what this spear is going in. There is a lot of high-price real estate, if you will, where the spear went in. No surprise, again, as you mentioned, that he had pain with this sort of thing. Although what might surprise a lot of people is that the brain itself doesn't hurt. A lot of people do operations on the brain while the patient is awake. The pain really comes from the skin and this area around here. So they certainly had a task in front of them, Heidi.

COLLINS: Well, now, listen, you're a neurosurgeon so when you look at those x-rays, this is something that is not quite as disturbing to you. But when we look at that, we really - it's absolutely unbelievable. I guess the surgeries took something like five hours in order to get it out? I imagine very, very carefully. Because you don't ever, at least my understanding is, want to just pull something like that out, right?

GUPTA: That's right. You sort of have the old cartoon videos where someone literally stands up and pulls it out. You don't want to do that. The real key I think from a surgical perspective is you want to check and see exactly what is happening here. So probably what you get is a - is a test that determines where all of the blood vessels are, and what the relationship to this particular spear is. Then they do an operation where they start to remove bone in this area. And they - and they may start to gently start to pull this out.

All the time, monitoring for any bleeding or anything else that might occur. It can take a long time. Mainly because you're tracing the spear all the way down its entire route and then pulling it out very slowly, very gently. As we heard, Heidi, good news. He woke up from the operation, sounds like he is doing fine.

COLLINS: Yes. GUPTA: Again, you know, how many long-term effects he might have from this, a little bit harder to say. But it sounds like it was a successful operation, overall.

COLLINS: Yes. Wow. Unbelievable.

GUPTA: It is unbelievable.

COLLINS: All right.

GUPTA: We don't see this every day, that's for sure.

COLLINS: Yes, absolutely. All right. Dr. Sanjay Gupta, thanks for coming back to talk about that one. Appreciate it.

Meanwhile, we are looking at some of the latest research on autism. And an autism assistant's dog helps bring a boy back physically and emotionally. You're going to want to stick around for this one.

(COMMERCIAL BREAK)

ANNOUNCER: Covering the angles, uncovering the details, see for yourself, the CNN NEWSROOM.

COLLINS: Health and Human Services nominee Kathleen Sebelius is answering more questions today. You are actually looking at her live at the Senate finance hearings and considering her nomination by President Obama. The potential Health and Human Services secretary is expected to be asked about plans for health care reform and possibly about tax problems that were revealed earlier this week. And the finance committee will decide whether to send the nomination to the full Senate.

It's the second annual world autism awareness day, and treatment of the disorder is a big issue on Capitol Hill today. We have been talking about it this morning, and our senior medical correspondent Elizabeth Cohen joining us now with more on that. Good morning to you.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Good morning. Good morning. Lawmakers, Heidi, today are introducing a bill or plan to introduce a bill that would increase funding for the treatment of autism, for services for people with autism, and we actually caught up with a young man here in Georgia who has a very interesting therapist for his autism. This therapist has four legs.

(BEGIN VIDEOTAPE)

COHEN (voice-over): Justin Kinninger loves to play hide and seek.

JUSTIN KINNINGER: We're ready, mom!

COHEN: It's not just a game. It could save his life.

UNIDENTIFIED FEMALE: We have done so many things in Wal-Mart, Toys R Us and the mall. It's been very, very scary.

COHEN: But now it's less scary.

KINNINGER: Hey, you guys!

COHEN: Justin has autism, and now if he wanders away from his parents, his best friend is always the first to find him.

UNIDENTIFIED FEMALE: Look! Where is he? Go find him.

COHEN: Luke is Justin's specially-trained autism assistant dog. He is learning how to pick up Justin's scent. Now next time he gets lost at the mall, Luke will be there to find him. Another advantage of an autism dog? He helps calm Justin down.

UNIDENTIFIED FEMALE: He knows the signs when Justin is about to have a meltdown. And he will go up to Justine.

KINNINGER: He kind of can help me. He kind of helps me. Calm me down.

COHEN: If Justin feels sick, Luke is there. While we were visiting, Justin had a terrible headache.

UNIDENTIFIED FEMALE: He helps Justin out more than me and my husband can.

COHEN: Sometimes other kids make fun of Justin at school, and he comes home upset and Luke is who he turns to.

UNIDENTIFIED FEMALE: He helps Justin feel better about himself. He gives Justin the opportunities to teach people about autism, too.

(END VIDEOTAPE)

COLLINS: Oh, I love it. Isn't that sweet?

COHEN: Yes. Very good. People probably wondering, how much does it cost to train a dog like that?

COLLINS: Well, the family has to pay $12,000, and go to a special training course. Yes, that's exactly right. It's very expensive. And the Kinningers, like many families, received contributions from friends and neighbors, church groups will sometimes raise money to buy dogs for these families. There is so much more to learn about autism, and I really encourage people to go to cnnhealth.com. We have so many articles up today about autism in honor of World Autism Day.

COLLINS: Yes, very good. Love that story, by the way.

Before you go, though, it is Thursday. That's "Empowered Patient" day. Tell us a little more about that.

COHEN: Well, we received so many e-mails, Heidi, asking us, hey, should I get screened for prostate cancer or should my husband get screened for prostate cancer? The answer is not easy. It's not a slam dunk. So if you're a man or if you have one, go to cnnhealth.com. And you will see our article, what is a dude to do? Get screened or not? And if you have any questions for us tomorrow is "Empower me, Friday" and you can send us an e-mail, empoweredpatient@cnn.com. And send us all your questions about prostate or any other body part.

COLLINS: All right. What's a dude to do? I like that.

COHEN: Yes.

COLLINS: Very good. All right. Thank you very much.

Well, you've seen the crowds, large, rowdy, and trying to make a point. Some of them, anyway. Just what are the G-20 demonstrators protesting? Find out in the NEWSROOM.

(COMMERCIAL BREAK)

ANNOUNCER: Live from the CNN NEWSROOM, Heidi Collins.

COLLINS: An awful lot going on right now. Here's what we're watching. A tornado warning in effect until the top of the hour for parts of the Florida panhandle. There are watches in effect today, as well in Georgia and Alabama.

On Capitol Hill, a closer look the at your money and how it's being spent. Lawmakers are looking at the taxpayer bailout of AIG. What led to the catastrophic collapse of this insurance giant? And minutes from now, we'll find out what's been decided at the G-20 summit. Leaders of the world's biggest economies are trying to get a grip on the global recession, and create stronger safeguards for the financial systems.

So, tackling the global recession a big part of the summit meeting. World leaders say they're making headway in coming up with an agreement to fix the world's financial crisis. Meanwhile, smaller crowds are out protesting the G-20 summit today. London police report only three arrests compared with nearly 90 yesterday.

CNN's Paula Newton is live now in London with more on this. So Paula, what kind of resolution are we actually likely to see at the end of this meeting?

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: Well, we should be minutes away, really, from the final communique. What's in it really not going to affect too many people back home. But I think Barack Obama saying that what they got out of it was the best they had hoped for, and that's some more concerted action when it comes to financial regulation.

There has been some tussling back and forth about if there was going to be a global regulator. U.S. Treasury Secretary Timothy Geithner fighting hard against that. At the same time, you know, continental Europe saying look, we want tough regulations here, and really trying to convince the United States, China and others that the regulation really has to have some teeth in order for them to sign up to this.

Other than that, you know what we can say is, no new stimulus. You're not going to get this big, global stimulus that perhaps the United States wanted to see. That's just not going to happen. They're trying to see whether or not they can maybe move forward in the next few months with maybe even another meeting, if it's needed. But right now, a broad consensus that really we might have bottomed here and stabilized -- Heidi.

COLLINS: All right, Paula Newton, thanks for the update. Appreciate that.

And so, what exactly are the G-20 protesters protesting about? CNN's Jim Boulden looks at the protesters and various causes.

(BEGIN VIDEOTAPE)

JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT (voice-over): Some came on bikes. Some brought their tents. Some brought their kids. And some came to cause trouble. The London protests brought out all kinds.

UNIDENTIFIED MALE: Time to reclaim the city from the bankers who screwed it up.

BOULDEN: Hardline protesters made their point about capitalism.

(on camera): Back there behind the police vans is the Bank of England. That's the central bank full of protesters that have been hemmed in by the police at this moment. But out here are other groups and other people also trying to make a statement.

UNIDENTIFIED MALE: I'm missing college today, to make the point that I think the G-20 looks like a talking show. And I'd rather it gave strict regulations to banks so they couldn't just do what they please, and I don't want to be the one paying for their crisis.

BOULDEN: Since this is London's financial district, this man decided to enlighten us about the use or misuse of derivatives.

(on-camera): "Derivatives, the banksters are stealing you life savings, pensions and your children's future."

UNIDENTIFIED MALE: This says something that's not in the news. You guys don't use the word. It's not in the controlled media, so we're trying to get the word out.

Do people realize the value? Look at this number.

BOULDEN: 1.6 quadrillion. Is that a real word?

UNIDENTIFIED MALE: Yes. That's a thousand trillion.

BOULDEN: OK.

UNIDENTIFIED MALE: That's the black hole that we're trying to look out of at the moment.

BOULDEN (voice-over): Then there are those whose message is a little unclear.

(on camera): Okay. You're representing yourself. What is it you're trying to say?

UNIDENTIFIED FEMALE: Well, for a start, it's lovely to have no traffic in the city today, isn't it?

BOULDEN (voice-over): As the day wore on with alcohol flowing, there were those who clashed with police and those with a serious message.

UNIDENTIFIED FEMALE: We're just trying to make a point and draw attention to the big problem there is, and the fact that there seems a lot of money awash in the system to bail out banks but not when there are real things that we need. Environmental things I'm interested in.

BOULDEN: As evening set in, the climate campaigners set in for a long night, while others kept up the stronger protests against capitalism. A myriad of signs and symbols ahead of the G-20 summit.

(END VIDEOTAPE)

COLLINS: And also want to let you know, President Barack Obama will be having a news conference on the G-20 summit. Now, that's going to be coming your way about 12:45 Eastern, 9:45 Pacific. So, we'll be watching for that, of course.

Meanwhile, on Main Street, a new report shows unemployment lines just keep growing. But on Wall Street, stocks are in rally mode. Look at that. Up now, Dow Jones industrial averages, Susan Liovilisovicz, by 182 points. Trying to sort all of this out. Hi there.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right. There is often a disconnect between Main Street and Wall Street, and today is a perfect example of that, Heidi.

Before we talk about that, let's just talk about the number of weekly jobless claims. It is another eye-popping number -- 669,000 people in one week filed for initial jobless claims. That's big. Also big and another record is continuing claims, 5.7 million people now, and that of course doesn't include people who have just simply dropped out of the work force, stopped looking.

The labor market, obviously, one of the biggest challenges of this recession, which is now in its 17th month, and that is the longest since World War II. But Heidi, there is another rally. It's a three-peat at this point, and it's the reason why there is a sense that the worst may be over, or that the end, we're starting to see signs of life. And check it out for yourself, the Dow industrials up 177 points. They're flirting with 1000.

COLLINS: I know! if we sit on it long enough, maybe it will happen. I don't know.

LISOVICZ: It's not 14,000, but at least it's moving in the right direction. And the Nasdaq is showing another big surge, as well. It's up 41 points, Heidi.

COLLINS: Yes, and where I'm from, you know, we call that a hat trick. Hockey country. (INAUDIBLE) Usually, though, back to these unemployment numbers in the reports, they do move the markets, so it's kind of weird, isn't it?

LISOVICZ: It is weird. And you know, on another day at another time frame, we could have a completely different outcome. The jobs report tomorrow from the government is expected to be another whopper. The estimate is 650,000 jobs lost in the month of March. Remember, this economy should be creating 100,000 jobs a month, just to keep pace with the population growth.

Why is there this disconnect? Yesterday, for instance, we detected a pulse in the housing market, Heidi. We got horrible auto sales numbers, but they were better than expected. So, it's that weird disconnect, and they were improved from the previous month. We have hope -- Wall Street has hope of real progress of the G-20, which Paula was talking about.

And finally, there are reports that accounting rules that have so bedevilled the banking industry are going to change and make it easier for them to deal with these toxic assets. All of that combined accounts for the optimism and the growing optimism that we have seen in Wall Street.

Is it a bear trap? Can't say yet. Is it the beginning of a bull market? Can't say yet. But let's just enjoy it for what it is, and that is three days of gains so far, Heidi.

COLLINS: All right. Very good. Susan Lisovicz, thank you.

LISOVICZ: You're welcome.

COLLINS: Craig Graham has a new job and a closet full of new clothes. He says he owes his new attire to the kindness of strangers who read his mass e-mail plea for clothes on Facebook.

(BEGIN VIDEO CLIP)

CRAIG GRAHAM (PH), SOUGHT CLOTHES: I'm just excited, and then they said, we go by the books. And by the books, you have to be in suits.

(END VIDEO CLIP)

COLLINS: Graham got three suits, several jackets, ties and pants. He also got $200 for dry cleaning and alterations. Now, Graham plans to return the favor. He is asking people with clothing needs to contact him at suitsforothers@gmail.com. His goal is to pair them up with people willing to suit them up. General David Petraeus back on Capitol Hill this morning. These are live pictures of the House Armed Services Committee hearings. Petraeus, the man in charge of U.S. Central Command, was talking to the Senate Armed Services hearing yesterday. He is in Washington to talk about his U.S. strategy in Afghanistan and Pakistan. Keeping our eye on that for you.

We are also following a developing story out of Mexico. Police there have arrested one of the country's most-wanted drug suspects. Thirty-two-year-old Vicente Carrillo Leyva was nabbed while exercising in a Mexico City park. He also is the son of a drug kingpin who died while undergoing plastic surgery to change his appearance. The arrest comes as Mexico and the Obama administration are to discuss the drug cartels that have fueled violence on both sides of the border.

Michelle Obama a big hit in London. We'll follow the first lady's first world tour.

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COLLINS: We've been following the protests surrounding the G-20 meeting in London. One of their big grips, world leaders aren't moving fast enough on climate change. CNNmoney.com's Poppy Harlow has our "Energy Fix" now this morning. Hi there, Poppy.

POPPY HARLOW, CNNMONEY.COM: Hey there, Heidi. Well, yes, we know the focus of the G-20 meeting is the global financial crisis, how we're going to get out of it, regulation, et cetera.

But a lot of environmentalists and activists are worried that climate change as a part of that has really been put on the back burner. Many of the protesters in London demanding action on global warming and other energy issues. Take a look at this video here of of protesters camped out in London's financial district. We should note, though, in contrast to the other protesters, Heidi, the climate campers, they've been pretty peaceful as a bunch.

And we know the financial stimulus, we know that's one of the main things the G-20 leaders are discussing. Environmentalists, though, they want specific commitments by each country involved on spending on green technology.

What has been leaked is a draft communique that came out over the weekend suggesting it's not what we're going to see, Heidi. The draft -- we looked at it -- pretty general, lacking a lot of specific commitments. And activists say world leaders are missing an opportunity to talk about economic recovery, as it's connected to energy and the environment, Heidi. So we'll see if the actual communique has any more specifics.

COLLINS: Yes. Is climate change even part of the discussion, though?

HARLOW: It is. But it's a brief mention in what we've seen so far. That draft communique that I've been talking about includes a renewed pledge by G-20 leaders to reach a climate change agreement when they meet in Copenhagen this December. What it would do is replace the Kyoto protocol, but as you know, the U.S. never signed on to Kyoto.

There are a lot of issues still to work out with the new agreement concerning how emissions will be measured, what role the developing world is going to play and really whether the U.S. will get on board or not. An expert we spoke with from the World Wildlife Fund says there could be an agreement this year, he thinks, especially since we know President Obama has made cutting greenhouse gas emissions a top priority in this entire process.

So, we'll see, Heidi. But we'll bring you more if we get that final communique a little later today.

COLLINS: OK, very good. Poppy Harlow, thank you.

HARLOW: You're welcome.

COLLINS: So, what do you think about the G-20 summit? We've been asking our viewers, what do you hope will come out of the summit? You can e-mail with us your view, CNNnewsroom@CNN.com, and we'll read some of them coming up the next hour of the CNN NEWSROOM.

It's her first world tour as America's first lady, and Michelle Obama is standing out in the crowd of first wives gathered for the G- 20 economic summit. Here now, CNN's Alina Cho.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT (voice-over): America's fascination with the first lady has been well-documented. But across the pond, Michelle Obama is a brand-new star. The headlines say it all.

UNIDENTIFIED FEMALE: She's so stylish, and she's a good right- hand woman to have for Barack Obama.

UNIDENTIFIED FEMALE: We think she looks very good.

UNIDENTIFIED FEMALE: For her age.

CHO: As America's first lady embarks upon her first trip to Europe, the world is watching the royal family of the United States.

ALLAN LICHTMAN, AMERICAN UNIVERSITY: How the royal family and not just the head of government is received is very important for perception back here at home.

CHO: Most of all, the first lady. What will she wear? How will she act? On today's schedule, tea with the queen. And insiders say the queen and America's queen bee will be fast friends.

TINA BROWN, CO-FOUNDER, "THE DAILY BEAST": Well, what the queen really likes is authentic women. She likes women who are strong, who are unpretentious and who are into their family.

CHO: When France's first lady, Carla Bruni Sarkozy, met the queen, she courtesied, and London went mad for her. On this leg of the trip, Mrs. Sarkozy is no-show.

BROWN: I think she recognizes that next to Michelle, she's going to be badly compared.

CHO: And don't forget, the French first lady is a former supermodel. In 1961, Jacquelyn Kennedy wowed French President Charles DeGaulle with her flawlessless French and impeccable style.

LICHTMAN: So much so that Kennedy said at one point, I am the man who is accompanying Jacquelyn Kennedy to Paris.

CHO (on camera): President Obama often jokes that Michelle is the boss, and historians say that as America tries to rebuild its image on the world stage, Mrs. Obama will be key. Visiting schools and hospitals, showing off her style is the ultimate international soft sell.

Alina Cho, CNN, New York.

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COLLINS: We expect to hear from the first lady's husband in a couple of hours. President Barack Obama set to hold a news conference today at the G-20 summit. And, of course, we will bring it to you live. Set to happen, 12:45 Eastern, 9:45 Pacific.

Many of us keeping a wary eye on the sky today. Our Bonnie Schneider is here with a new tornado watch to talk about.

BONNIE SCHNEIDER, AMS METEOROLOGIST: Absolutely, Heidi. A new tornado watch issued, and this time further west. Often they're issued east in advance of the storms, but now we're watching out for areas in Arkansas and especially Mississippi, including the cities of Jackson and Hattiesburg. So, now we have a total of three tornado watches in effect.

The tornado warning for Panama City has expired. But don't rule out more severe weather coming into this region. Heavy downpours of rain working their way across the panhandle. Plus we're getting reports from Douglas County that emergency management reporting that streams and drainage ditches are nearly at (INAUDIBLE), so sandbags are being placed into you vulnerable flood-prone areas. I'll have more on the extreme weather we are facing here across the country, the tornado watches in the Southeast. That's all coming up on CNN NEWSROOM.

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COLLINS: Want to get you straight to severe weather center now, and Bonnie Schneider standing by to talk more about what is going on in the south. Really, under the gun today, Bonnie.

(WEATHER REPORT)

COLLINS: Forty-hour work weeks, why some companies are looking to cut it to 35. Plus, what do you hope will be coming out of the G- 20 summit? That's our e-mail question today. We want to hear from you, so send your responses to CNNnewsroom@CNN.com, and we'll read some of them on the air.

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COLLINS: American companies now taking a page out of the European playbook, doing away with the 40-hour work week in an evident are effort to keep workers happy and employed. CNN's Alina Cho takes a closer look.

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I came here to put forward our ideas, but I also came here to listen.

CHO (voice-over): How about this idea, a 35-hour work week, mandatory vacation of at least a month. The European way of life. Relax more. It seems like a radical idea. But in hard times, it's a way to save jobs.

HEATHER BOUSHEY, CENTER FOR AMERICAN PROGRESS: Firms could cut back hours a bit, continue to keep people on payroll, continue to keep that money flowing throughout the economy. That's far better off for the whole economy than to just cut some people off.

CHO: In the 1970s, Americans and Europeans worked about the same number of hours. These days, Europeans work nearly 50 percent less, and yet per hour worked, in many cases Europeans are more productive. But American businesses are traditionally resistant to the idea of cutting hours to cut costs. When times are tough, U.S. companies rely mostly on layoffs.

TRUMAN BEWLEY, YALE UNIVERSITY: Layoffs save much more money than work sharing because you get rid of the fixed costs of employment.

CHO: Sigma, an ad agency in New Jersey, decided otherwise. The company recently saved four jobs by cutting back the hours of eight employees to 32 hours a week or less.

PATRICIA PARIS, HR MANAGER, SIGMA: You definitely have to budget. You have to, you know, find a way to, you know, work within a smaller salary.

CHO: Sigma workers say they've come to enjoy the time off. They're working less and getting more done while they're on the job.

PRACHI GOKHALE, COPYWRITHER, SIGMA: I'm just more productive. I'm doing better work. I'm more focused.

BOUSHEY: It may actually be that by cutting hours and giving folks more time to relax and to rejuvenate, you actually get more creativity out of your employees.

CHO: Sigma says the move is temporary. Eventually when the economy turns around, they hope to get everyone back to full-time status, which could be a difficult adjustment. Workers here have come to appreciate the time off.

(on camera): French workers so closely guard their time off that when President Sarkozy announced plans to scrap the 35-hour work week, there were massive demonstrations. The bill passed in June, eliminating the 35-hour cap, but there's no real indication the French are working more. "Relax" still seems to be the mantra in Europe.

Alina Cho, CNN, New York.

(END VIDEOTAPE)

COLLINS: So, have you ever heard of the six degrees of office annoyance? Probably not. It's a pretty new list. See if you fall into any of these categories.

The Interrupter. This person always breaks into other people's conversations, usually with an unfunny anecdote. Mr. No Manners. These people can't bring themselves to say please or thank you. Chances are their kids probably aren't very well-behaved either.

Then there's the Messy Eater, always messing up common areas like the break room. This person's desk often has a funky smell, as well.

Number four is the F-Bomb Bum. These people are never in newsrooms, number one, lace their conversations with profanity, not only in mixed company but with pretty much everybody in the company.

Then we have the Loud Talker. This is the person we've all heard on their phone, in the restaurant or movie theater, and now they are in your office. And finally, we have the Avoider. This person, for some reason, just won't look you in the eye or say hello when you walk by. Chances are, you really don't want to acknowledge their presence either, but it's the polite thing to do.

Global efforts playing out right now at the G-20 summit in London. President Obama and other leaders of the world's biggest economies are looking for ways to get a grip on the world recession.

I'm Heidi Collins. CNN NEWSROOM continues with Tony Harris and the very latest from London.