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New Jobs In March; U.N. Attacked In Afghanistan; Exit Strategies In Libya; Protesters Back In Tahrir Square; The Cost Of A Meltdown; Moms Over 40 Birth Rates Rise; Republicans Up in Arms Over U.S. Pull-Back in Libya; War Amid Talks of Peace in Libya

Aired April 01, 2011 - 13:00   ET

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

SUZANNE MALVEAUX, CNN ANCHOR: If your choice did not win or you just want to check out the runner's up, I'll have the links to them on my Facebook page, it's Facebook.com/suzannecnn. CNN NEWSROOM continues right now with Randi Kaye, in for Ali Velshi.

Hey, Randi.

RANDI KAYE, CNN ANCHOR: Hi there, Suzanne, thank you. After Gadhafi, what then? He's not gone yet but people are talking about it.

After the revolution in Egypt, protesters wonder what really changed?

And almost two years after the official end of the great recession, the job market begins to catch up. And that is where we begin, a banner month for hiring and not a second too soon.

Let me show you better than expected numbers from the labor department. I have them for you, right here, 216,000 jobs created in March and just as important, a stair step trend in the right direction. You can see it there now. The economy has added one and a half million jobs since early 2010.

Another good sign, the jobless rate is trending down, 9 percent at the start of 2011, 8.8 percent now, that is the lowest in two years. Where are these new jobs coming from?

Well, in March, business services hired 78,000 people and it was another good month for health care, leisure and hospitality, and manufacturing as well, you can see there.

Joining me to put these figures into context is a financial planner who wants to make all of us a little smarter about money. Ryan Mack is founder and president of Optimum Capital Management in New York. Ryan, nice that you're with us today. Are we now seeing what you would call a meaningful improvement in the labor market?

RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Well, his is definitely a positive step in the right direction. As you said, one point five million jobs over the past year since businesses started to hire. Private sector jobs, 230,000 jobs is the public sector, that's had a little bit of a problem over the past couple months. I mean, we lost 14,000 jobs in the last month. Over the last year or so in the public sector, we've lost a quarter million jobs, over half of those coming from teachers and firemen and firefighters and what not.

So, we are public sector not so good, private sector is definitely a right step in the right direction.

There's a report in the "New York Times" that did say if there's a one negative aspect of this, many of the new jobs that individuals are hiring, many people are still finding it hard to pay for their basic living expenses and they're still living check to check, even with this additional job.

So, again, I would like to see a little bit -- the personal income did uptick this week, I would like to see a little bit more individuals be able to, maybe, cut their living expenses down so they can within their means more effectively.

And then, again, the bigger picture in this whole thing is looking at the housing market to make sure that we start seeing a recovery and a turnaround in that sector, because many people still have homes under water, foreclosures still, about a million individuals in foreclosure. So, moving forward, it's positive, but still have work to do.

KAYE: Sure, and getting back to the job numbers, I mean, do you think that we're starting to make up actually for the millions of jobs that were wiped out in the recession?

MACK: I mean, we are. Again, we saw almost eight -- as you state, almost eight million jobs that we lost completely, but we still have, again, 13.5 million people unemployed, we still have about maybe eight million individuals who are underemployed or working part-time and four million individuals who are just -- completely say said, forget about it, I just don't want to look for any work any longer.

So, we have to start creating jobs. I think the manufacturing sector, is one of those positive upticks. If we start seeing a lot of those jobs start upticking, because when you start creating things here in America, that is going to start being able to create more jobs that we've lost in all that or that we shipped overseas, that was a positive thing we did, see. But, again, we're definitely moving a step in the right direction. Again, I'll just -- again, manufacturing and that sector, I would like to see a little bit more strong in the next -- in the next month.

KAYE: All right, we'll live it there. Ryan Mack for us from New York, today. Thank you, Ryan.

Overseas, now, in a deadly attack on U.N. staff in Afghanistan, at least 12 people were killed at the U.N. assistance mission in Risara (ph) Shareef after a protest over the reported burning of a Quran (ph) in Florida.

You may remember pastor Teri Jones who stirred up disgust when he planned to torch the Muslim holy book on the ninth anniversary of the 9/11 attacks. Well, he backed off then, but reportedly followed through last month with little notice outside his congregation.

We don't know yet all the details from the violence in Afghanistan, nor does the U.N., but the U.N.'s special envoy is headed up there as we speak and we'll bring you more as this new information comes out to us.

Now to Libya where both sides appear to be mulling a common strategy, an exit strategy in fact. Moammar Gadhafi still has the rebels on the run but his own top officials are fleeing as well. Foreign minister Moussa Koussa to Britain, former foreign minister Ali Alusadam Treki (ph) to Egypt.

Now, sources close to the Libyan dictator tell CNN Gadhafi may be open to dialogue with the opposition, possibly even open to giving up power, but only to someone within his inner circle. Possibly his son's safe, and only after rebels stop fighting.

A senior aid to save Gadhafi is reportedly in London for back channel talks with the Brits (ph). In the opposition capital of Benghazi, leaders today called on Gadhafi to back down and step down, but a visiting U.N. envoy says both sides to seize fire.

And that's not in the plan today. Rebels, led by army units that have switched sides, are mounting yet another push near the town of Al Brega, a town that's changed hands now six times in six weeks.

Libya's neighbor to the east, Egypt, helped inspire protests throughout the Arab world. Weeks of demonstrations forced its long- time president Hosni Mubarak from office.

Things quieted down for a while but thousands of protesters are back in Cairo's Tahrir Square today. And that's where we find CNN's Ivan Watson. Ivan, Egypt was seen as a model, as we've said many times, really an inspiration for so many other uprisings in the region. But has anything really actually changed there is our question for you today?

IVAN WATSON, CNN CORRESPONDENT: Well, there's certainly a demonstration taking place in the now world famous Tahrir Square. I'll get out of the way so that you can see that it's night time here and the sun is set and there's still thousands of people there, Randi. This is being billed as the save the revolution Friday here. And the reason is because some of the revolutionaries, some of those secular liberal groups, the youth, that helped topple a dictator about two months ago, they are frustrated.

They feel they are being marginalized by the current ruling military council here, that they're being left out of crucial decisions and they're so far behind on forming themselves as a formal political movement, far behind the Islamist groups here who have been battling against the secular government for decades, that they feel they are being left behind and they are trying to re-inject some life into what they are claiming as their own revolution, Randi. KAYE: Well, they accomplished so much before so I'm sure they are hoping to do the same this time around. But I want to talk to you today about the human rights abuses that we're hearing about. What have you been able to find out there on the ground?

WATSON: Well, one of the complaints that the crowd behind me has is that there is still military rule and emergency law in place for more than 20 years and the new law proposed that would make these types of protests illegal. Now, so far the authorities have allowed this to take place peacefully, but on March 9th, the army came in and broke up a similar rally using force.

One of the people who was caught up in the detentions was a musician named Rodney Esom (ph) who we interviewed, we saw him playing rebel music in the square night after night during the revolution in January and February. He was detained and actually beaten by soldiers for hours, he says, in the Egyptian museum, which effectively became a torture chamber that day for many demonstrators. And we saw his terrible wounds and bruises after that incident took place. Take a listen to what he told us a few days later.

(BEGIN VIDEO CLIP)

REMY ESSAM, MUSICIAN (translator): The torture took four hours. They removed my clothes, they used sticks, metal rods, wires, ropes, hoses, whips, there was also electrocution. There was an officer who had purposely jumped in the air and landed on my face with his legs.

(END VIDEO CLIP)

KAYE: And Ivan, that is such a horrific story and I'm sure not the only one that you've heard.

WATSON: No, no, no, I've talked to a number of people who have described being pulled in by soldiers here and beaten when they've tried to organize protests.

Now, we've repeatedly asked the ruling military council about this, they flatly deny any charges of torture, they've even denied the reports in "Amnesty International" of 17 female demonstrators who were detained, in some cases strip searched and photographed by male soldiers and even subjected to what they called virginity tests. The military flatly denying all of this. These are, of course, signs of concern for people who really hope for major changes after Hosni Mubarak was overthrown.

KAYE: Yes, and that change can't come soon enough. Our Ivan Watson there in Tahrir Square for us. Thank you, Ivan.

Well, we do have some good news to share with you out of Syria, a man we told you about yesterday from Houston, who was detained in Syria for alleged espionage is now free. If you were watching, you saw his mother's desperate plea.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I want to see my son. I have no idea where he is.

(END VIDEO CLIP)

KAYE: She now has an answer. Thirty-two-year-old Mohammed Radwan (ph), an Egyptian American, was released today to the Egyptian embassy in Damascus after being held by Syrian authorities for a week. He had been working for an oil company in Syria and had taken part in protests in Egypt. His family last saw him on state TV this past Saturday, being interrogated and accused of trying to export Egypt's revolution to Syria, a cousin says she spoke with Radwan on the phone and hoping to return as soon as possible. That's certainly good news.

We're watching this nuclear disaster in Japan and wondering, could it ever happen , and if it does, who might pay the cost of that destruction? We break it down for you, right after this quick break.

(COMMERCIAL BREAK)

KAYE: A number of major developments today in the Japan nuclear disaster. Today, we learned that tens of thousands of people who were evacuated from the area near the Fukushima Dai-ichi plant may not be allowed to go home for months.

Beef as well as chicken and pork are being tested for radiation after reports of beef contamination. And check this out, Japan's prime minister said, today, that Tokyo Electric will pay for the nuclear disaster but the government could foot some of the bill as well.

So, what if anything like this happens in the United States? Who pays for the nuclear disaster in this country? Well, take a look at these numbers that we have here for you and the cost of a meltdown. The nuclear regulatory commission, here in the U.S., commissioned a study back in 1982 to determine the cost of a nuclear disaster.

They estimated 50,000 deaths and 314 billion in property damage, adjusting that amount for inflation brings us to the 720 billion that you see here in today's money. Now back in the 1950s, the government capped the liability for utility companies, that cap adjusted for inflation over the years is currently $12.6 billion.

But I want to take you over here now to our chalk board so we can compare those numbers. We're saying that the cost is $720 billion, right? And then the utilities' liability would actually be just 12.6 billion. So, the difference, if you do the math, $707.4 billion. Well, who's going to pay that? Who do you think?

All of this great research comes from the folks at CNN money.com and joining us now live from our New York studios is Senior Writer Steve Hargreaves. Steve, who pays the difference?

STEVE HARGREAVES, SENIOR WRITER, CNNMONEY.COM: Well, we would. The government has no, you know, emergency fund for this set up beyond the industry's 12.6 billion. So the taxpayers would have to pay it and the government would have to go out and raise that money anew. KAYE: And let's talk about that $720 billion number. How accurate would you say that is? Because I know there are -- I understand there's a little bit of controversy behind it.

HARGREAVES: Right. Well, obviously, you know, it's an old study. It's from 1982. The government has since backed away from that number. They say that they're working on a new study and their new models show any type of radiation release would be much slower and much less. They wouldn't give us a new number. They say their new study focuses more on the impacts of human health. But they did suggest it will be much lower. Yet other outside experts have told us that that 700 billion is in line with models that they've done.

KAYE: And when you think about paying for this, a lot of folks are probably wondering about insurance. Does insurance cover a disaster like this one?

HARGREAVES: No, it doesn't. Any personal insurance you have, homeowner's insurance, property insurance, that does not cover a nuclear disaster. The government specifically exempted that back in the 1950s when they set up this cap (ph). So, you know, you would have to go and wait in line with everyone else. You know, a lot of people that live within that 50 mile range that could see fallout in the event of a disaster, they're concerned about this. You know, they're concerned that the government wouldn't step up and actually pay the full value for the property that could be damaged.

KAYE: Well, really, it's a terrible scenario because even if you're lucky enough to survive this, you've probably lost your home, you've probably everything you own. Your bank might have even been wiped out. So I'm wondering, is there a push for change here possibly to increase that cap for a utility company?

HARGREAVES: No, I haven't heard too many people calling for that. Some Democrat lawmakers would like to see it raised. But this liability cap was just approved just a couple of years ago for another 20 years. So people say it's fairly unlikely that it will be changed any time soon.

KAYE: Well, that is quite a bill for the taxpayers if we did see a nuclear meltdown or disaster like that one.

Steve, thank you. Appreciate you breaking that down for us.

HARGREAVES: Thanks.

KAYE: Unlike their younger counterparts, women over 40 are having more babies. Elizabeth Cohen will tell us why this is happening and what health risks might be involved. That's right after the break.

(COMMERCIAL BREAK)

KAYE: A new CDC study shows that fertility rates among women over 40 are going up. CNN's Senior Medical Correspondent Elizabeth Cohen joins me here to break down the numbers. What's so interesting though is that overall birth rates are going down, right?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right. But, you know, three cheers for us women over 40.

KAYE: Yes.

COHEN: We're helping get those numbers up, right? I'm one of those.

KAYE: You're helping. I don't know about me, but I know you're helping.

COHEN: That's right. I even had my last one at 40, so I get to fall into this category.

KAYE: Because it is 40 plus?

COHEN: It's 40 plus, right. It's 40 plus. So if you look at births 2006 to 2009 -- or it was 2007 to 2009, rather, up 6 percent. That's a pretty big increase in just two years.

KAYE: Yes. Why is this happening?

COHEN: You know, I think more women are aware of fertility drugs that they can take and the drugs have gotten much better. And, also, more women are just putting off childbirth because they, you know, they have a career and they say, well, I can wait until after 40. They've heard about egg donations.

KAYE: There's a lot to do before you're 40. We're very busy.

COHEN: There is. We're very busy, right.

KAYE: What about, though, on a more serious note, the health risks? Because as we age, we do hear that it is a little more dangerous for the child and even for the mom.

COHEN: That's right. Well, first of all, you're less likely to be able to get pregnant in the first place.

KAYE: Sure.

COHEN: And there's a higher likelihood of things like Down's syndrome, diabetes, preeclampsia. But the numbers are not huge. I mean the increases are huge, but the raw numbers aren't. So, still, your -- the odds are way, way, way with you that your child is going to be fine.

KAYE: And we said that overall the birth rates are down. So what's happening with younger women?

COHEN: OK, these numbers really sort of made my eyes open. I mean take a look. I want to give you that statistic again. For older woman, up 6 percent. For women between 20 and 24, that fertility (ph) rate went down 9 percent in that same time period. So while older women were, you know, going there, these younger women were saying, you know, maybe I'm going to hold back a little bit.

KAYE: I find it kind of inspiring.

COHEN: It is sort of inspiring, although --

KAYE: All the women of that age.

COHEN: Of that age, right, that it can happen. But I think the reasons why those younger women aren't having babies isn't so inspiring. It probably has a lot to do with the economy. I mean the economy was really suffering during that time and I think a lot of families decided they probably just couldn't handle it at that time.

KAYE: Well, I'm sure you know with what -- how many children do you have?

COHEN: Four.

KAYE: Four. You know how expensive it is to raise a child.

COHEN: Yes, that is true. That is true.

KAYE: So you can certainly understand that.

COHEN: Yes.

KAYE: All right, Elizabeth, thank you.

COHEN: Thanks.

KAYE: Appreciate it. Good to see you.

Two Chicago police officers face scandalous accusations. Claims they played strip poker and had sex on duty. Those details next.

(COMMERCIAL BREAK)

KAYE: Twenty-five minutes past the hour and time to update our top stories, starting with encouraging news about jobs today. The economy added 216,000 jobs last month, more than many economists had even expected. And the unemployment rate fell to 8.8, the lowest rate in two years.

An American Airlines flight made an emergency landing at Dayton International Airport this morning after several people reported feeling ill. According to airport officials, American Flight 547 from Washington to Chicago diverted to Dayton after several passengers complained about the air quality on board. Reports say at least two passengers were taken to the hospital.

In Afghanistan, at least 12 people were killed in an attack at the operation center of the U.N. Assistance Mission in Mazar-e- Sharif. Officials say eight international U.N. workers and four Afghans were killed and 24 other people were wounded in the attack that followed a demonstration against the reported burning of a Koran in Florida last month.

All right. Now, this very interesting story that had a lot of us talking. A Michigan woman gave birth to twin miracles yesterday. You see, she was born with two uteruses though. And that condition makes it hard to get pregnant. But she did get pregnant in both uteruses, in fact. The twin girls were born seven weeks early and will spend the next three weeks in the NICU where doctors are confident that little Valerie and Kaylin will both be fine. What a miracle. Double miracle. This is only the fourth time that this type of birth has been reported anywhere in the world.

We'll hear from legendary Texas oil and gas executive T. Boone Pickens next. He's talking alternative energy. You don't want to miss it.

(COMMERCIAL BREAK)

KAYE: Time now to update you on the latest headlines and some of the stories you may have missed.

Let's start with some encouraging economic news. Unemployment hit its lowest level in two years in March and businesses are hiring more. Take a look at the latest numbers, 216,000 jobs were added in March. That's better than what economist were expecting. The unemployment rate edged down to 8.8 percent as well, the lowest since March of 2009.

In Libya, opposition leaders gathered in the rebel stronghold of Benghazi. They extended the offer of a cease fire with Moammar Gadhafi's forces, but only under certain conditions that include pulling his forces outs and giving Libyans freedom of expression.

On the front lines, rebels are moving to push Gadhafi's forces back, but his troops are turning up their attacks in various cities along the coast. In classified briefings, the CIA told Congress that Gadhafi's troops are killing a substantial number of people in towns where the media is not present.

And now there are growing signs his inner circle is cracking under international pressure. Just a day after his current foreign minister defected, we're learning that another of Gadhafi's men has defected. This time Gadhafi's top choice, his U.N. ambassador. Ali Abdussalam Treki defected to Egypt.

Moving further south in Africa, in the Ivory Coast, gunfire and explosions erupted in Abidjan, the commercial center and largest city. The political power struggle is escalating into what appears to be its final stages. Forces loyal to the government, who is internationally recognized as president here, attacked the home of his opponent Laurent Gbagbo today. French and U.N. troops are beefing up their presence on the streets. Gbagbo is refusing to give up power after a disputed election.

Two Chicago police are being investigated for allegedly sexually assaulting a woman while on duty. The city's police department has relieved them of their police powers. CNN's affiliate WLS-TV reported the alleged attack on a 22-year-old woman took place Wednesday after she accepted a ride home from on-duty officers.

Citing a police report, they say the woman initially accepted sexual advances and allegedly had sex with one of the officers in his police SUV, then later playing strip poker with the two officers. The woman told police she was too afraid to refuse. Neither officer has been charged, but the investigation goes on.

Lightning from a powerful storm caused minor damage to the Space Shuttle Endeavor. So far, NASA says, from what they can see, there is minor damage from the insulation at the top of the fuel tank. The bad weather is keeping them from closely inspecting the shuttle for additional damage.

Endeavour is scheduled to launch in a little over two weeks to the International Space Station. The shuttle's six astronauts, including Congresswoman Gabrielle Giffords' husband Mark Kelly, were getting ready for their launch dress rehearsal.

With Libyan rebels getting pounded by Gadhafi's tanks and artillery, the U.S. is withdrawing power from the battlefield, and that has some Republicans up on Capitol Hill up in arms.

(BEGIN VIDEO CLIP)

ROBERT GATES, SECRETARY OF DEFENSE: We would not be participating in the strike missions.

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: The idea that the AC- 130s and A-10s and American air power is grounded unless the place goes to hell is just so unnerving I can't express is adequately.

(END VIDEO CLIP)

KAYE: Is the Obama administration making a serious mistake here? We'll touch base with our Pentagon correspondent right after this.

(COMMERCIAL BREAK)

KAYE: There's no letting up for retreating Libyan rebels who are being pounded by a relentless barrage of government tanks and artillery fire. At the same time, the U.S. military is making a major shift in strategy, one that could further weaken the rebels already tenuous position.

CNN's Chris Lawrence reports.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice-over): The U.S. is calling off its missiles and jets that have been bombing Moammar Gadhafi's tanks and troops.

ROBERT GATES, SECRETARY OF DEFENSE: We would not be participating in the strike missions.

LAWRENCE: U.S. senators say America has holstered its most effective weapons when they are need most in Libya.

SEN. JOHN MCCAIN (R), ARIZONA: The fact is that your timing is exquisite.

LAWRENCE: Senator John McCain says Gadhafi has routing the rebels.

MCCAIN: That's when we announced that the United States is advocating its leadership role and removing the most valuable assets.

LAWRENCE: The fight is over these A-10 and AC-130s used to attack Gadhafi's forces in and around cities. They fly low, closer to the target and shoot machine gunfire instead of just dropping bombs.

UNIDENTIFIED MALE: You pulled them off, they are not flying and there's no --

UNIDENTIFIED MALE: I haven't pulled them off.

LAWRENCE: Bad weather in Libya grounded the gunships the last few days, and in that gap, Gadhafi forces regrouped. The planes will fly for just a few more days until NATO takes total control.

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: The idea that the AC- 130s and the A-10s are grounded unless the place goes to hell is just so unnerving I can't express it adequately.

LAWRENCE: Senator Lindsey Graham argued the U.S. needs to do more, not less.

GRAHAM: Would it be unlawful for some nation, including ours, to drop a bomb on him to end this thing?

GATES: Well, President Reagan tried that.

GRAHAM: Well, that doesn't mean we shouldn't try again.

GATES: I don't think so because I think it would probably break the coalition.

GRAHAM: Who would be mad at us if we dropped the bomb on Gadhafi and why would they be mad?

LAWRENCE: And there's the rub, there doesn't seem to be agreement on exactly what the allies want. Does Gadhafi have to be killed? Hauled before an international court? Or as an incentive to stand down, given sanctuary in another country?

SEN. SUSAN COLLINS (R), MAINE: I just don't see how this ends.

(END VIDEOTAPE)

KAYE: And Chris Lawrence joins us now from the Pentagon.

Chris, good to see you.

Is there an answer to Senator Collins question?

LAWRENCE: Well, Secretary Gates laid out a couple possible ways it could end, including a member of his own family killing Gadhafi, the Libyan army fracturing, or the lack of supplies and the allied attacks degrading the Libyan army to the point where the rebels regain that upper hand.

KAYE: And what about NATO forces? Are they capable of filling the role of the U.S. warplanes when we talk about the U.S. laying off the air strikes?

LAWRENCE: That's going to be the big question and especially, do they have the will and mandate to continue some of these strikes on Gadhafi's forces.

They don't have anything specifically like the A-10 or the AC- 130, but those planes will be sort of put on standby. Meaning that if the situation ever got dire enough, the NATO commander could come back and ask the U.S. for those, although it would have to come back to the United States and go up our chain of command.

But look, Secretary Gates has argued that between Iraq, Afghanistan, troops also helping out in Japan, that there's not enough manpower, and even a reduced mission in Libya is going to cost American taxpayers about $40 million a month. He also says there's just not enough money to go around.

KAYE: All right, Chris Lawrence at the Pentagon. Thank you, Chris.

Ali Velshi is on assignment in New York and earlier today, he spoke with billionaire oil man and entrepreneur T. Boone Pickens about alternative forms of energy and reducing the American addiction to foreign oil.

Here's some of that conversation.

(BEGIN VIDEO CLIP)

T. BOONE PICKENS, CHAIRMAN & CEO, BP CAPITAL: The thing that is going to carry us -- and I hate to say this, it's not because it's patriotic, not because it's clean and all, it's cheap. Natural gas on gasoline gallon is $1 to $1.50 cheaper than diesel and gasoline. And so, when you look at one mcf of natural gas is about $5.

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Right.

PICKENS: And it's equal to 7 gallons of diesel, which is $25. That is not sustainable. You cannot have commodities doing the same job and be that far apart on price.

So natural gas is going to move up on price. But when it does, it then triggers your wind. You cannot have a wind project because it's priced off the margin, which is natural gas.

VELSHI: So you need natural gas to cause people -- you need oil prices to cause people to use more natural gas, which then puts pressure on natural gas prices, which cause people to get into wind and solar?

PICKENS: Yes, but you've got to have $6 natural gas to finance a wind project. So when that happens, then you'll go back to work on the wind.

(END VIDEO CLIP)

KAYE: And be sure to join Christine Romans for "YOUR BOTTOM LINE" Saturday morning at 9:30 Eastern.

And for the entire interview with T. Boone Pickens, tune into "YOUR MONEY" with Ali Velshi Saturday 1:0 p.m. Eastern and Sunday at 3:00 p.m.

As Libyan rebels plug it out with government forces, the opposition issues conditions for a cease-fire. The latest in a live report from Libya coming your way next.

(COMMERCIAL BREAK)

KAYE: Welcome back.

Every day on this show at this time we do a segment called the "Big I." It's about big new ideas and innovation in this country and around the world. Well, today's "Big I" is all about clean energy.

Today, President Obama announced a new national clean fleet partnership that works with major companies to cut gasoline consumption. He traveled to a UPS in Landover, Maryland today to make the announcement, and we're talking about the five companies with some of the largest fleets of vehicles in the country.

Take a look at this pie chart that we have for you. On the left, there is how we consume oil. The majority of our total consumption comes from oil, 37 percent. The president thinks clean energy is the answer to getting us off oil.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Investments in clean energy have the potential to create an untold number of new jobs and new industries here in the United States.

So for all of these reasons, I set a new goal for America. When I was first elected to this office, America imported 11 million barrels of oil a day, 11 million barrels. A decade from now, I want us to have cut that by one third. That is achievable, it is necessary, it's good for our future and we are going to get it done. I'm confident we can.

(END VIDEO CLIP)

KAYE: And here are the companies participating in the partnership -- UPS, AT&T, FedEx, Pepsi and Verizon. According to the White House, these companies will incorporate electric vehicles, alternative fuels and fuel-saving measures into daily operations.

And when we talk about alternative fuels, we're talking about cars powered by electricity, natural gas, ethanol, hydrogen or propane. The plan is to deploy more than 20,000 of these advanced technology vehicles.

President Obama's program pushes to reduce U.S. oil imports by a third by 2025. And with oil at a two-year high today, we all need to worry about those oil imports for sure.

All right, now we want to take you to Libya. More fierce fighting in Libya today with government forces pounding rebel- controlled cities with tank and artillery fire. At the same time, both sides in the civil war are talking about ways to end the conflict.

CNN's Nic Robertson joins us now from Tripoli on the phone.

Nic, tell us first what you can about this refer offer of a cease-fire. Any movement on that?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (via telephone): It's a conditional cease-fire, and the principle condition is that there will be raging change at the end. But the condition of the cease-fire in the battle field is that Gadhafi's forces must remove their snipers and militias and they're mercenaries, according to the rebels, and that they must end the seizures of the towns like Misrata and others where rebel forces, tiny rebel forces are surrounded by Gadhafi's army.

That's what the rebels are saying. There's no indication that the government is going to go for that at this time. However, we do understand that an envoy of Saif al-Gadhafi, one of the son's of Moammar Gadhafi, the one who has taken a principle leadership role here in the past four years, is in London. It's not clear what kind of meetings he's having there, but it does seem to indicate that some diplomatic channels are being pursued at this time.

So, hearing the rebels talk about ways to end the fighting and from the regime side, there are indications in the background, there have been for some time that ultimately Gadhafi could go once the fighting is over in the country. The two positions are not dissimilar. But they are still quite far apart. A lot of diplomatic legwork if it can be done still remains to be done, Randi.

KAYE: Such interesting developments. Nic, I know you had actually spoken with that aide to save Gadhafi (ph) before he left for London, if I recall that correctly. Did he give you any indication if there was a transition of power to his son? Would Gadhafi have any type of role? Would Moammar Gadhafi have any type of role in this government?

ROBERTSON: The indications are that he would -- he even now characterizes himself as sort of the father of the nation, and he says we all misunderstand him, that he's the leader. Look, he is the leader and there's no two ways about it. But it's not how he views himself.

How he views it and how I understand other people close to leadership view it is that he would remove himself from the day-to-day political process of running the country, that he would essentially completely take himself out of the real political running of the country, and he would see himself as some kind of distant father figure for the nation. It's unlikely that that vision is one that's going to fly for the rebels. It's not something that I think they would trust.

It does seem to indicate that perhaps there is some mutually agreeable ground where Gadhafi is not running the country. But of course, so many questions remain. Who represents each side? Who trusts whom? How do you build that trust? And can really the opposition stomach having one of Gadhafi's sons playing a principle role in that process?

KAYE: And Nic, really quickly, I just want to ask you, what do you make of the high level defections that we're seeing from the regime?

ROBERTSON: It's significant. Someone like Moussa Koussa will be attuned to what's going on about the regime. There will likely be decisions that the regime has taken that he's unhappy with, and he may well have decided that's this was the time to jump ship, the foreign minister and - the former foreign minister. And there will be others that look at his decision and wonder if it's time for them to jump, too. So, there's no doubt it gives concern to Gadhafi, but it's not going to bring him tumbling down overnight. Others will be looking at this and that will be a worry for him.

KAYE: Nic Robertson with more terrific reporting for us out of Tripoli in Libya. Nic thank you.

Lyndsey Addario, one of the New York journalists who was captured by pro-Gadhafi forces in Libya, spoke to CNN's Anderson Cooper about her harrowing experience.

(BEGIN VIDEO CLIP)

LYNDSEY ADDARIO, WAS CAPTURED BY GADHAFI FORCES IN LIBYA: A guy reached over from the front seat and started caressing my hair, like a mother would a son or a daughter. And then he started touching my face, very - sort of gently and saying this phrase over and over.

And I said to Anthony, what is mort (ph)? Right? I said, what is he saying? Anthony said, he's telling you you're going to die tonight. And I just -- I mean, what can you say?

(END VIDEO CLIP)

KAYE: Don't miss the second part of an "AC 360" primetime exclusive tonight. "The New York Times" journalists that were captured by the Gadhafi regime share more of their story with Anderson. That's "AC 360," 10:00 p.m. Eastern. You won't want to miss that interview. This year's college basketball tournament is coming to a close, but that doesn't mean the excitement has died down. We'll have a live report from Houston next.

(COMMERCIAL BREAK)

KAYE: All that March Madness is coming to a head this weekend in Houston as the last four teams standing in the college basketball tourney duke it out. SI.com's B.J. Schecter joins us from Houston. Hey, B.J. How you doing?

B.J. SCHECTER, SI. COM: Good. Randi, how are you? How's your bracket?

KAYE: Not well. It's terribly sick.

SCHECTER: You're not alone.

KAYE: No. But I want to talk about these unlikely Cinderella stories here, Butler and VCU. Both underdogs, yet they made it this far.

SCHECTER: It's really a great story, and it encapsulates what the NCAA tournament is all about. When you compare it to college football where we have the BCS system, which is really an exclusionary system when you talk about some of the smaller schools, the NCAA tournament is now 68 teams. We now have a first four where VCU came from.

And to think that, if the tournament hadn't expanded to 68 teams this year and was 65 like it was last year, VCU wouldn't have even gotten in. Not only do they get in, they played one more game than the other three teams here, but they're in the final four. When you think about it, that's really crazy, and the fact that Butler and VCU are playing one another, one of these two small school is going to be playing for the national championship, that really says something.

KAYE: And what about UConn and Kentucky? What's at stake here? Two powerhouse basketball schools. What's your take on that one?

SCHECTER: Well, this is really a match-up of heavyweights. Usually when people study the NCAA tournament and the reason why they love it is there's all these upsets and Cinderella stories. Most of the time by the Elite 8 or the Sweet 16, the heavyweights, the blue bloods, the big programs are where are we are in the final four right now. That's where we find UConn and Kentucky.

Two powerhouse programs. Jim Calhoun has been at UConn for 25 years and has really built from the ground up. John Calipari started at UMass and was rivals with Jim Calhoun. They don't like each other very much. Now he's at Kentucky, one of the real blue bloods in this tournament. They're going to go head to head -- they're both fairly young teams but very, very storied programs. I think it's going to come down to the two guards. Campbell Walker of UConn has really carried that team. And Brandon Knight of Kentucky who has really grown up and showed great maturation to lead Kentucky here to the final four.

KAYE: All right. So, I want to put you on the spot. Who's your pick?

SCHECTER: Well, I like Butler to beat VCU. It's hard to go against VCU. I like Kentucky very slightly to beat UConn. And then it's very hard to pick against the underdog, but I like Kentucky to cut down the nets on Monday night.

KAYE: All right, thank you, B.J. We won't hold you to that. Don't worry.

SCHECTER: All right, Randi.

KAYE: Congress is fighting over what to cut from the federal budget. But do we really know what they're actually fighting over? Jessica Yellin will show us the results of a budget I.Q. test after the break.

(COMMERCIAL BREAK)

KAYE: With the government funded just through next Friday, members of Congress are fighting over what to cut from the federal budget. Billions of dollars, we all know, are at stake, but do we really know what they are actually fighting over? CNN's Jessica Yellin has the results of a fascinating budget I.Q. test.

(BEGIN VIDEOTAPE)

JESSICA YELLIN, CNN CORRESPONDENT (voice-over): On Capitol Hill, they're on the verge of a government shutdown. Because Congress wants to slash federal spending. But Republicans and Democrats can't agree on how much to cut. The biggest fights are over just a handful of programs including -

REP. RAND PAUL (R), TEXAS: Foreign aid.

UNIDENTIFIED MALE: NPR.

UNIDENTIFIED MALE: Food stamps.

YELLIN: If trimming those programs will rein in spending they must make up a huge part of the federal budget. Right? Well, that's what most Americans think.

(on camera): What percentage of the federal budget do you think we spend on foreign aid?

UNIDENTIFIED FEMALE: 40 percent.

UNIDENTIFIED MALE: Foreign aid? 20 percent.

YELLIN (voice-over): A new CNN/Opinion Research Poll finds most Americans think foreign aid makes up 10 percent of this year's federal budget. Reality check? It is not even close. Foreign aid, 0.6 percent of the 2010 budget. UNIDENTIFIED FEMALE: Really? Wow! Yes, I thought it was like a big thing.

YELLIN: So we asked about a few more.

(on camera): Government pensions.

UNIDENTIFIED MALE: Government pensions. That was probably the 10 percent.

UNIDENTIFIED MALE: That's probably 10 percent.

YELLIN (voice-over): According to the poll, that's what most Americans think. But the reality - just 3.5 percent.

(on camera): For public broadcasting, NPR.

UNIDENTIFIED FEMALE: Zero now, right?

UNIDENTIFIED FEMALE: Maybe 15.

YELLIN (voice-over): Most folks think public broadcasting gets five percent of the federal budget. Reality - less than 0.1 of one percent. Overall, Americans believe foreign aid, government pensions, education, food and housing assistance and public broadcasting account for 52 percent of the federal budget. In reality, it is just 11.3 percent of the budget. The bulk of our spending goes to defense, social security, Medicare and Medicaid.

UNIDENTIFIED FEMALE: We have very skewed perspectives.

YELLIN (on camera): Why do you think that is?

UNIDENTIFIED FEMALE: Probably the media.

YELLIN: We in the media can take some of the blame but it's also the politicians who are making a small part of the budget a huge part of the budget fight. They're not talking about or touching the biggest challenges. Social security, Medicare and Medicaid.

Jessica Yellin, CNN, Washington.

(END VIDEOTAPE)