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CNN Saturday Morning News

Mubarak Defies Demands for Him to Leave Egypt; Egyptian Government Formally Resigns; Calm Prevails as Families, Students, Young Professionals, Find a Celebratory Tone in the Streets; Dow Tumbles Over Concern About Egypt

Aired January 29, 2011 - 06:00   ET

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

RANDI KAYE, CNN ANCHOR: Good morning.

It is a new day in Egypt, where we are just starting to see the physical and political damage done after days of violent clashes. There are reports in Arab media of dozens killed. And we are just getting reports that President Hosni Mubarak's government has now officially resigned.

But he's keeping his 30-year grip on power. Will that concession be enough to satisfy protesters? Will it satisfy loyal allies, like President Obama, who now has to wonder if Mubarak will really survive this. It's an extraordinary change that could shake up U.S. policy and impact our fragile economy.

It is early and we are on it.

From CNN Center, this is CNN SATURDAY MORNING. It is January 29. Good morning, everyone. I'm Randi Kaye.

And because of the global implications of the chaos in Egypt, I'm joined this morning by CNN International anchor Jim Clancy.

Good to see you, Jim.

JIM ANCHOR, CNN INTERNATIONAL ANCHOR: Good to be with you.

An important day for the Middle East, an important day for the United States as it looks on and sees one of its most important, really crucial allies in the Middle East struggling. And "struggling" is the word today.

KAYE: Sure. And we have a lot to get to.

Take a look at these pictures from Egypt's capital, Cairo. Protesters are gathering in the city's main square right now, not far from the main government building that was set on fire yesterday. These protests are historic. The linchpin of the Arab world, though democracy in name, may be moving closer to real change.

Let's take a quick look at how we got here.

The protests started Tuesday, with thousands of Egyptians chanting a unified message: Remove 82-year-old President Hosni Mubarak from office. For many, he is the only leader they've ever known.

We've seen this before. Just this month in fact, not far from Egypt, in Tunisia, the people rose up, demanding the same kind of change. Their government crumbled. In its place, new leaders and the promise of real reforms.

CLANCY: You know, this is a situation being closely watched here in the U.S., and - and Randi, we got to say, for good reason.

Egypt has long been a crucial partner for America - in the war on terror, in the war in Iraq, standing with the U.S. on the world stage as a model, a model of stability in the volatile Middle East.

Now that takes us to the next step. President Mubarak says he's heard the message loud and clear, and Egyptian state television reported moments ago that the government, as he had ordered, he announced on television last night, that government has officially resigned.

But Mubarak isn't going anywhere. Now here's President Barack Obama talking about Mubarak's message to Egypt.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We've also been clear that there must be reform - political, social and economic reforms that meet the aspirations of the Egyptian people. In the absence of these reforms, grievances have built up over time. When President Mubarak addressed the Egyptian people tonight, he pledged a better democracy and greater economic opportunity.

I just spoke to him after his speech, and I told him he has a responsibility to give meaning to those words, to take concrete steps and actions that deliver on that promise.

(END VIDEO CLIP)

CLANCY: Now, as Mubarak talked about democracy and a better life for Egyptians, tanks and soldiers were moving into key positions in major cities all across the country. A senior U.S. government official telling CNN Mubarak believes he can ride this out.

The question today - you know, when he says, I'm going to call on my government to resign, that's like rearranging the deck chairs on the Titanic. The question today, the demonstrators in the streets, how many? How, you know, vocal are they out in the streets? Because they may be saying they want the president, they want the captain to go down with the ship.

KAYE: Yes, the rearranging of the deck chairs certainly doesn't seem like it's enough.

CLANCY: That's right.

KAYE: Egypt is one of the countries the United States gives to each year. In this budget year, Washington is providing $1.3 billion in military aid to Egypt.

And our Pentagon correspondent Chris Lawrence tells us the Pentagon was hosting several Egyptian military leaders this week when these protests erupted. He says Washington has leverage with Egypt and is closely watching what happens there.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Randi, about two dozen of Egypt's highest-ranking military officials were right here in the Pentagon when the protests erupted. They were talking to their U.S. counterparts about security assistance but had to rush home to try to deal with the crisis back in Egypt.

(voice-over): While armored vehicles rumbled through Cairo streets, some of Egypt's top military officials were huddled in, of all places, the Pentagon.

GEN. JAMES CARTWRIGHT, VICE CHAIRMAN, JOINT CHIEFS OF STAFF: It would be hard to have ignored the fact that, you know - that this was going on, and - and - and it wasn't ignored.

LAWRENCE: The high-ranking officers cut short their previously scheduled meetings with Pentagon officials to rush back to Egypt. But not before U.S. officials urged their Egyptian counterparts to handle protesters peacefully.

CARTWRIGHT: But the key activity here, I think, that's really important is to exercise restraint, and to do so both on our part, but also on the part of our counterparts in the Egyptian military.

LAWRENCE: And the U.S. has some leverage with its ally. Every other year, up to 10,000 American troops train with Egyptian soldiers, the largest military exercise in the region. The U.S. gives Egypt well over a billion dollars a year in assistance. It's outfitted Egypt with fighter jets, Apache helicopters, M1 tanks and surveillance equipment. The last thing the Pentagon wants are those weapons in the hands of a government hostile to the United States.

KEN POLLACK, SABAN CENTER AT BROOKINGS: In some ways, that is one of America's worst nightmares.

LAWRENCE: But Ken Pollack at the Brookings Institution says it's not because the weapons are so sophisticated or will harm the U.S. It's symbolic.

POLLACK: Because it will once again be another major American ally whom the United States armed to the teeth suddenly overthrown by a population that he repressed for so long and that the United States ignored.

LAWRENCE: It seems unlikely now. Protesters who fought police actually cheered the Egyptian army. And the militant Muslim Brotherhood is not controlling these protests.

But Pollack says 30 years ago, Iran's Islamic Revolution started as a middle-class revolt.

POLLACK: Revolutions are extremely unpredictable events, and the people who begin the revolution aren't always the people who wind up ending them.

LAWRENCE (on camera): Now, there's more than 600 American troops in Egypt right now and a contingency plan to evacuate the U.S. Embassy in Cairo.

But the Embassy staff has not asked for that yet, and U.S. military officials tell me the situation has not reached that level just yet - Randi.

(END VIDEOTAPE)

KAYE: Thank you, Chris.

CLANCY: Well, now that we've set the scene a little bit - you know it - CNN, as we cover these things, a lot of experience, been around the world, done this, been there - the secret isn't to be in the right place at the right time. It would seem crucial. But the real secret is, be in the right place all the time.

Our correspondents are spread out in strategic points in Egypt. They are monitoring the latest developments in this story because it's moving fast.

Frederik Pleitgen's one of them. He's been watching events unfold in the capital of Cairo.

Fred, the big question today: Did the demonstrators, did the Egyptian public buy the president's speech? Is this enough change, to have the government resign? What are they saying on the streets?

FREDERIK PLEITGEN, CNN INTERNATIONAL CORRESPONDENT (via telephone): Well, it certainly doesn't give the impression as though the speech cooled people down, if you will.

I don't know if you can hear very well, there's a pretty big demonstration which is right next to where I am, which is right next to the information ministry. There are a lot of demonstrators who are out here. They're chanting. They're peaceful, peaceful. And they're saying that - that they want Hosni Mubarak to step down.

A lot of people are - have been telling me that they feel that this speech was nothing short of a scam. They were saying that they would have expected the president to step down. However, that, of course, did not happen.

And right now, Jim, there are already tens of thousands of people in the streets again. They're in Tahrir Square, which is of course is one of the main squares here in Egypt's capital. And also, they're here in front of the Information Ministry again.

So clearly, people are still very angry. They didn't buy this speech one single bit. And they are out on the streets again very early this morning - Jim.

KAYE: Fred, this is Randi. Yesterday, we saw the military roll through the streets. Where - what is their presence today? And also, as well, as a follow to that, the police criticized for attacking protesters. What is the situation with them today? Is there any change that you can see from yesterday to today?

PLEITGEN: Yes, Randi, that's a very, very important question.

The military is still out on the streets in full force. What we saw throughout the day yesterday is that the military came into town, came into Cairo, and they were greeted by the people, who are very happy apparently to see them.

Now, at the beginning, it was pretty much only armored personnel carriers. But then deep in the night, heavy main battle tanks moved in here.

Now, the - the - the military, as I said, has been greeted very, very heartily by the people. We have been hearing military members trying to calm the people down, telling them that, yes, they can protest. They're allowing the protests. But please refrain from looting and refrain using violence.

That clearly appears to be the case. It appears as though the people and the military are very much in sync as far as what's going on here.

Now, as far as the police are concerned, we have literally not seen them on the streets since last night. When the military appeared on the scene here, the police vanished all of a sudden. They were gone, and they still aren't here.

I asked one officer, a tank commander earlier today, where the police was. He simply says, 'The police is now gone.'

CLANCY: You know, it - it's Jim Clancy again here.

And Fred, as we look at these scenes on the streets, the thousands of people that have turned out there, I - I mean, we have to wonder here, which direction is this taking and who is leading it?

The Muslim Brotherhood, long seen as a - as - as a force for Islamic extremism and in - in the view, perhaps, of some in Washington. But are they taking a more-visible role out on the streets? Who's organizing this, if anyone?

PLEITGEN: Well, the Muslim Brotherhood certainly are taking more a visible role on the street, however they don't seem to be the ones who are leading this.

This still seems to be a very broad, and if you will, a leaderless protest. It's sort of crowds that are gathering, crowds that are marching through the streets without any visible leader. At certain points in time, you'll have someone get on a tank, you'll have someone address the people. But by and large, these are crowds that don't seem to be, if you will, in any way organized, except by the fact that they all came out today, they all seem to feel the urge - they came out today and protest.

And also, Jim, the interesting thing is that I've never seen people here as emboldened as they are right now. It seems as though that yesterday, when they saw that they were beating back the police force, when the police force all of a sudden vanished off the street, it seemed as though these people had a of courage now, and are now demonstrating.

The interesting thing is they - they - they are marching through the streets. They're marching right in front of our office right now, and they keep chanting 'Peaceful, peaceful.' So they're saying that this is a very peaceful demonstration. They don't want any violence.

And you ask the question, which of course everybody is asking - in what direction is this going to go? How far is this going to go? And certainly, a lot of the people that we're seeing are saying that the only direction that this could go is that Mubarak has to step down.

There's one man with a sign right in front of people that says, 'Mubarak, Adios. Goodbye.'

So that's clearly what these protesters want.

And the other thing, Jim, is that if you look at these protests, the people that are in the protests are a very broad part of the population. You see women, you see younger people, you see fathers with their sons, you see fathers with their daughters. You see people in suits. You see people who appear to be students who are all (INAUDIBLE).

(INAUDIBLE) asking Mubarak to step down - Jim.

CLANCY: Frederik Pleitgen, great to have you there, Fred, and have a seasoned veteran taking a look at what's happening on the streets there. Get back to us. If you see any developments, we're going to bring them to our viewers straight away. Just get a hold of us. We're going to bring it to our viewers as things develop on the streets of Cairo.

This is a crucial story. Thanks, Fred - Randi.

KAYE: Egypt's importance has a lot to do with location, which is why we're paying such close attention to it this morning and we think you should as well. So let's take a quick look at the map.

On the north edge is Israel. The border there has been a trouble spot in the past, providing a route for terror groups like Hamas to funnel weapons into Palestinian territories. The Suez Canal right there in the Red Sea is a major shipping route, linking Europe and Asia. And that includes oil. Around 10 percent of all goods shipped by water go through the Suez Canal.

Then, look just to the east and you see Saudi Arabia, Iraq and Iran. They offer their own set of challenges.

CLANCY: All right. It - it's obvious these demonstrations are fraying a lot of nerves. On Wall Street and world markets, crude-oil prices spiked yesterday. Then they settled back down a little bit short of $90 a barrel. Still, that was a 4 percent increase. That makes, you know, people on Wall Street --

KAYE: Oh yes.

CLANCY: -- wonder, because that's going to - going to affect the prices of everything.

KAYE: There's a lot of chaos as the Egypt protests unfolded. And many journalists, ours included, got caught in the scuffle.

Next, we are talking to a BBC journalist who was beaten - that's right, beaten - by riot police on the scene. We'll hear his story.

(COMMERCIAL BREAK)

CLANCY: All right. You're looking at pictures now.

These are scenes from today coming out of Egyptian television. Thousands of people taking to the streets the night after President Hosni Mubarak said that he was going to reshuffle his Cabinet, appoint a new government. People still out there; they have not seen enough.

The protesters are on the street. The army is on the street. Fred Pleitgen, our correspondent in Cairo - one of our correspondents there, telling us the police - the police are not - now, the police were heavily criticized yesterday because of the way they cracked down on the demonstrators. Egyptian state television is reporting the government now has officially resigned. That doesn't seem to have satisfied the demonstrators, Randi.

KAYE: No, not from the looks of it today.

Cairo police cracked down hard on the protesters, as well as media, actually, covering the demonstrations.

Our Ben Wedeman reported how police seized one of our CNN cameras. One BBC journalist says he had a far more personal encounter, and we're going to talk with him right now.

Assad Sawey is a correspondent for the BBC, the British Broadcast Corporation. He's live in Cairo following his arrest yesterday.

Assad, first, let us ask you, how - how are you feeling after you were roughed up yesterday?

ASSAD SAWEY, BBC ARABIC CORRESPONDENT (via telephone): Well, I'm feeling much relieved now that I'm not in the hands of the police.

KAYE: Can you tell us what happened? What - how - how did this come to happen to you? SAWEY: Well, the protests were starting. I was in Ramses Square, the second-biggest square in Cairo. And I was covering a protest of about 15,000 people. It was getting violent and there was starting to be some shooting.

I was keeping my distance with my photography camera. I was about a 300-meter distance. And all I found out was that police were deliberately targeting journalists. Secret police in plainclothes were actually surrounding journalists from the back and they were (INAUDIBLE) them.

They arrested me. They - they took away my camera. They attacked me with steel bars all over my body and on my head. I started bleeding and they were going to send me in one of the police cars along with scores of other people - send us to an unknown destination. But I was bleeding too heavily, and I told them, the BBC will sue them, would sue the Egyptian government if anything happens to me.

And I hope - held them accountable for my life. I was kind of lucky that I managed to speak to a senior officer, who was somehow understanding. And as such, I got away with it and I went back on air.

CLANCY: Assad, dramatic developments there where you are. And Assad, I know you don't want to miss the story.

Have you been out - back out on the streets today? I think the crucial question is, are the Egyptian people buying what President Mubarak told them last night? He's going to, you know - and - he - his government has resigned. He's going to rearrange, reshuffle things.

SAWEY: Well, the - the president made some promises yesterday, and the only thing that he actually achieved was the resignation of the government. He asked the government to resign, and that's what they did a few minutes ago.

But the - the people on the street have changed their - their shouting. Now, what they are saying in their protests - we don't want regime change, we want specifically, president change. We want Mubarak out. That's what they are saying.

And people have had promises before. The speech of President Mubarak to them has achieved very little. It's - it's very, very much behind what they want. It's very much below what they want. And the speech of President Obama is like three steps behind to them.

To them, it was outrageous that Obama is still appealing to Mubarak to - to actually effect some reforms, or to make some reforms. To them, Obama has to make it clear whether he's siding with the people of Egypt or with the president. Because the protesters think these are two opposite places.

CLANCY: Yes, Assad, it begs the question - it's one thing to want your president to step down because, you know, his administration has stagnated.

Who do they want in?

SAWEY: Well, right now, they want free and fair elections. It's not clear - I mean, there's nobody leading the protests, so you don't have a clear list of demands and a clear - a clear list of things to do after the president is out.

Chaos is - is a scene that we have started to see in some places, although all in all, all the general picture is very, very organized. But the thing is, people want Mubarak out and they want free and fair election. They want the dissolution of the two houses of parliament they think they came through rigged election. They want annihilation of the emergency law, which has been in place for 30 years.

This law is abhorrent. It gives police the right to detain anybody for any - an indefinite time. And under the name of this law, a lot of torture has been happening. And the protesters are very, very angry.

They want Mubarak out first. And then they want a transitional period through which democracy can be achieved.

KAYE: Assad Sawey in Cairo for us this morning. Be careful on the streets today, and we thank you for your time.

SAWEY: Thank you.

CLANCY: Well, coming up, everybody is watching Egypt. How - how does what's happening there affect the Middle East region, and what does it mean for the - everyone in the United States? Important questions.

KAYE: We'll get to that right after his quick break.

(COMMERCIAL BREAK)

CLANCY: Welcome back.

We continue to monitor - monitor the situation with the protests ongoing in Egypt. A presidential announcement last night that Mr. Mubarak would dismiss his government has gone through; the government's resigned. But the protesters, as you can see right there, have not gone away.

Egypt though one of the more stable countries in the region, and an important U.S. ally.

KAYE: Sure. But CNN's Elise Labott joins us to talk about a - a possible ripple effect.

Elise, are we looking at the possibility of others in the region taking to the streets and - and demanding change?

ELISE LABOTT, CNN SENIOR STATE DEPARTMENT PRODUCER: Well, certainly we are, Randi. If you look at what happened in Tunisia, a lot of people think that that was really the kind of ignition, if you will, of what's happening in Egypt, although that's been on a slow boil for a long time.

But you've also seen protests in Yemen, protests in Jordan and protests in Algeria. And - and Egypt is really considered kind of the heart of the Arab world. And if Mubarak were to go, if Mubarak were to be overthrown, it's really the bellwether of what's going to happen in the region. Everyone in the region, especially the - the youth population, which is growing - chronic unemployment, social tensions, a lot of poverty, a lot of frustrations. And now, everyone is seeing what happened in Tunisia, taking a look at what's happening in Egypt, it certainly could have an effect on the rest of the region and really chart an - an unpredictable course for - for the whole Middle East.

What's happening in Egypt, I think, will really be an indicator of a potential domino effect that's very uncertain right now.

CLANCY: Elise, Hosni Mubarak really the face of a U.S. ally who supports the peace process, supports peace with Israel. In fact, he signed - he didn't sign it, but his predecessor, Anwar Sadat, did before he was assassinated for that very reason. I'm just wondering, what does effect does this kind of upheaval going to have on that, you know, U.S.-sponsored Middle East, the Palestinians, the Israelis?

LABOTT: Now just that, Jim. I mean, of course, that's the major thing.

You saw President Mubarak was here in September to kind of launch these peace talks between the Israelis and Palestinians. Egypt has really been one of the mainstays of the peace process.

But it's not just that. It could have potential effects on - on efforts to counter Iran's rising influence in the region. You look at what's happening in Lebanon right now, with the government have fallen and - and Hezbollah really gaining in the country.

Egypt is really the critical ally of the United States in the region. And Mubarak leaving could really have potential devastating consequences for the United States. And if we talk about a ripple effect, what they're really worried about is, if you see the Mubaraks go, if you in Yemen President Saleh go, for instance, where al-Qaida in the Arab peninsula is gaining strength. It's a very weak country, a very poor country.

And what's really the concern for the United States right now is that - the uncertainty. Who is going to come next? In Egypt, for instance, we've been discussing for the last few days, there is not really a - a rallying figure who - who people can organize around and who's going to be the next leader of Egypt.

In countries like Yemen, in countries like Jordan, in countries even like Saudi Arabia, another mainstay of U.S. national security in the region, who's going to come next could be very devastating. You saw in Iran after the revolution, the Shah, as flawed as he was, was a U.S. ally. And look at what happened when he left.

CLANCY: Wow. Yes.

LABOTT: Decades of anti-American sentiment, Jim. Very scary.

CLANCY: Elise Labott, reporting to us there, you know, from the State Department. Elise, a really important perspective. Thank you.

LABOTT: My pleasure.

KAYE: And be sure to keep it here all morning for everything that's happening in Egypt. Things are changing by the minute, as you can see.

But first, Detroit police released the dramatic video of a shout that injured four officers. We will play that for you coming up next.

(COMMERCIAL BREAK)

KAYE: Welcome back, everyone. Twenty-nine minutes past the hour.

We're keeping an eye on what's happening in Egypt right now. We're getting reports that the government has officially resigned. Protesters are back in the streets, but so far we haven't seen the violence that we saw in recent days. We'll have more from Egypt in just a couple of minutes for you.

But first, some other top stories we're following, including compelling video of a shootout in a Detroit police precinct last weekend. And we caution: The surveillance video is graphic.

Four officers (INAUDIBLE) gunman killed. This view coming from two different angles, as you can see there, in the precinct receiving area. That is a split screen for you, right down the middle. That's 38-year-old Lamar Deshay Moore with a shotgun firing on police. Moore was killed in the shootout. Police still trying to determine his motive for the attack. They say he was being investigated for possible sexual offenses involving a minor girl. He also had a relative who was to be sentence for a double homicide. Two of the four injured officers have been released from the hospital. Amazing video.

We have another piece of the puzzle in the mysterious death of a former Pentagon official. The Delaware medical examiner says John Wheeler died from a blow, while he was being assaulted. Wheeler's body was found at a Delaware landfill last month. Police still don't know who killed him, or where.

Actor Charlie Sheen is back in rehab. A spokesman for the 45- year old star says Sheen voluntarily entered an undisclosed facility yesterday, a day after being hospitalized for pain with a hernia. This is the second time in as many years the hard-partying actor has gone for treatment. A joint statement from CBS and Warner Brother's Television says Sheen's sitcom, "Two and a Half Men" will go into production hiatus. And, quote, "we are profoundly concerned for his health and well-being, and support is decision," unquote.

Two days after New York got hit with 19 inches of snow, some snow piles are growing even higher. Sanitation trucks busy with the big job of snow removal. Thursday's monster storm made this month the snowiest on record for New York City dating back to 1925.

Wow, that's quite a record. Let's check in with Meteorologist Reynolds Wolf to talk about all that snow. It just keeps coming.

(WEATHER REPORT)

KAYE: A day of decisions. Was Mubarak's speech last night enough to keep the protesters at bay? We have already seen some out on the streets this morning. If not, what is next for Egypt? We'll check in with our reporters on the ground, next.

(COMMERCIAL BREAK)

KAYE: Good Saturday morning to you. It is 35 minutes past the hour. Welcome back. I'm Randi Kaye, joined this morning by CNN International Anchor Jim Clancy. Thanks for starting your day with us.

CLANCY: People woke up today, Randi, all across Egypt. They are looking toward the streets. What's going to happen? Saw a startling sight, tanks now in place, in their streets, in major cities, Alexandria, Suez, certainly the capital of Cairo. The tanks-and take a look at this.

(CROWD CHANTING)

CLANCY: That's how it's looked out on the streets. An Egyptian flag waved, demonstrators shouting toward a television camera, as if it's going to make their voices heard.

Well, for right now, it certainly does. Look at how many turned out here. The tanks were there. The military is on the streets. The question is, is this a show of force? What is it there for? Is it a threat to the protestors? Our own Fred Pleitgen joins us now live from Cairo. He has been watching the developments this day.

Fred, tell us, what is your impression as you look out on this scene?

PLEITGEN: My impression is this is one of the times I have ever seen demonstrations where people are actually happy to see tanks in their streets. Clearly, they greeted the military as it came in here. And if you looked at the scene, right now, that is sort of playing out very close to our office, this demonstration which was right in front of our office, has now moved further down.

You can see there are people sort of mingling with the soldiers, sort of walking past through the tanks. If you look at that area that I'm talking about now, yesterday at this time, that was a battlefield, basically. You had the police and the protesters going at it. The police firing tear gas at the people. Today, the same amount of people, and the same sort of style of protest. And it seems to be completely peaceful and it seems to be almost a cheerful air to it. There's a lot of respect, also, I have to say, between the protesters and the military members who are here. And if we pan a little further to the other side, you can see that there is a sort of cordon that the soldiers have made. That is around the information ministry. And it is one that is actually being respected. All of that was absolutely unthinkable yesterday when the police, and not the military were still trying to control the situation here.

The police, of course, here in Egypt, really an absolutely hated institution. There are a lot of police officers that the people refer to simply as thugs. A lot of people here have been subject to police brutality. Clearly, the military has a much different standing.

You were asking whether or not this is a warning to the military. I think that the government brought the military in here to try and calm down the situation because they felt it was the only way that they could diffuse the situation. Simply because the police force here in Egypt was such a lightning rod, that was just inciting people more and more. People were just saying that they were absolutely fed up with being pushed around by police. And in the end I was in one melee yesterday, when they were beating back the police officers. It was a very, very ugly scene with tear gas flying and with rubber bullets flying; today, a much, much different sort of scene.

It's really interesting to see whether or not something like this, a peaceful protest, could be more dangerous to Hosni Mubarak, the president, than riots in the street. Clearly, that (AUDIO GAP) you know, it's dangerous, criminals on the street that public work (AUDIO GAP) is not being kept. Clearly, these are people who simply want to voice their opinions, Jim.

CLANCY: We are having a little bit of trouble with our signal there. But, Fred, I have to ask you this, any common thread you see among those protestors? Are they predominantly young? Is there any way to indicate, are they educated? Who is in the streets?

PLEITGEN: It seems to be people from all walks of life. I mean, there are obviously people here who are appear to be members of the Muslim Brotherhood, which of course is an Islamic organization, and the largest opposition group here in country, but there's also women, there are children. There's people in suits. There's people who look like they are students. There are people who speak very good English. There's people who have obviously have had education in the United States or the U.K. So, certainly this is really a very broad part of the public that are going out here.

The interesting thing is it appears to be as though there are whole families that are coming out to participate in these protests; in this very cheerful, almost celebration that is going on here in the streets in front of the ministry. While, still of course, the message they are trying to send is one that is very, very serious. And one that is simply calling for the president to step down and for there to be fundamental reforms, because one of the things everybody here has been telling me, and who I've been speaking to, is that people just simply feel that their living well below their possibilities.

They are way under their punching way under their weight. They don't feel there's enough jobs. They don't feel the education system is very good. They don't feel there's enough social justice here in this country They don't feel that they have enough freedom in this country. That's the reason they are going out on the street.

Of course, with Hosni Mubarak, yesterday, in that speech, saying yes, he wants to implement reforms. Yes, he wants to make things better, a lot of people have told me, he's had 30 years to do that. And he hasn't done it. Clearly, they don't believe this 82-year-old man, now, is going to do a complete 180 and change everything here in the country for the better.

On the other hand, of course, you have to realize, Jim, that a lot of these, especially younger protesters, they have never known any other leader than Hosni Mubarak. This man has been in power for 30 years. So, for them, it's almost unthinkable for there to be anything else. A lot of people are (AUDIO GAP) still are quite comfortable with the fact that he might step down, but clearly, they do want fundamental change, Jim.

CLANCY: Senior International Correspondent Frederick Pleitgen on the scene for us there in Cairo. CNN correspondents all around Egypt taking a look at developments in various cities; we'll bring those developments to you as they become available.

Thanks, Fred -- Randi.

KAYE: Thanks, Jim.

The unrest in Egypt isn't isolated. Over the past few weeks we have actually seen turmoil in several neighboring countries including Tunisia and Yemen. These places have plenty in common, including a young population, and very high unemployment. Does that mean that all these protests are all about the same things?

CNN's Josh Levs joining me this morning, to explain.

JOSH LEVS, CNN CORRESPONDENT: Yes.

Here's the thing, big picture they kind of are about the same things. But there are specific situations in each country that have gotten a lot of people upset. It's important to understand these differences, especially as we are seeing all these videos come in. And let's get back to Egypt for just a second. We'll take a look at this video.

I have been speaking with all these experts on this scene. And all these countries in recent days. The way one expert put it to me, he said they all want the same thing. It's about inequalities, it is about a lack of opportunities. It is about the rich getting richer. It is about what demonstrators feel is a totalitarian regime, or aspects of a totalitarian regime in each country.

And something important to understand here, we were just talking about the make-up of these protests. We do have a lot of people who are middle class; a lot of educated people, a lot of young educated people.

And there is a term that might be new to you all this morning, but it is not new to those who follow revolutions through history. It's called the blocked elite, Randi. This is a group of people who are educated and believe they should be elite. Because they know how to take on major jobs, they feel they should have major jobs inside their countries.

And they feel that what's been happening is stopping them. They believe it is because of the government. And decisions made from the government are preventing them from more advanced jobs inside their country.

KAYE: So, the common theme, is really they think they deserve more.

LEVS: They believe they deserve more. They believe they can play a major role. They believe that economically they should be at a higher level.

We can quickly show you. We have had videos from what's been going on in Tunisia as well, and then you had smaller protests take place inside Algeria and Yemen. There are specific scenarios inside each country to keep in mind. It's important to mention that. For example, in Algeria and Yemen, we have had civil wars in the past. That is a back drop. Whereas, in Tunisia, you have more of a homogenous population. All of these things effect they way these rebellions play out.

But big picture, Randi, we are looking at a lot of middle class people, a lot of young people, who are pushing for what they believe is their place in society.

KAYE: Even young families, amazing to see them out there.

LEVS: That's right, you got it.

KAYE: All right. Josh Levs, thank you for the insight.

LEVS: You've got it.

KAYE: He is the man behind the curtain, running Egypt now for nearly three decades, but who exactly is Hosni Mubarak. We'll examine his rise to power. Be right back.

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KAYE: Welcome back.

A lot of anger in Egypt is directed at President Hosni Mubarak, the country's long-time leader. The 82-year-old has been president of Egypt for nearly 30 years. He took over shortly after the assassination of Anwar Sadat. Sadat was killed shortly after making peaceful inroads with Israel. As one of Sadat's closest advisers, it's no surprise Mubarak continued to forge bonds with the West. But to be the force of the Arab world, Egypt had to keep Islamic fundamentalists in check. Mubarak has been the target of at least two failed assassination attempts. Both of them happened in the 1990s.

CLANCY: all right. So, what was life like under Hosni Mubarak? For many in Egypt, he is, and we just heard that, the only leader that most Egyptians have ever known; 29 years in power. A long time, in fact, only a handful of world leaders have been in that position longer than that.

KAYE: Let's bring in Shadi Hamid, now, from Doha, Qatar. He is the director of research at the Brookings Doha Center.

Good to see you. Glad you are with us to give us some perspective. First of all, what do you make of what's happening in the streets of Egypt today? Is this something you had expected?

SHADI HAMID, DIRECTOR OF RESEARCH, BROOKINGS DOHA: No. No one saw this coming. I think what we learned the last couple weeks, in Tunisia, and now Egypt, it's very difficult to make predictions. Things are just moving so quickly. I don't think anyone expected how successful the protests would be yesterday but they turned out to be a big success for the opposition. They stayed in the streets the whole day and it kept on building in momentum. This is really historic. But there's some major question marks.

CLANCY: All right. You know, as we try to dissect this, Shadi, help us out. Who should we understand Hosni Mubarak to be?

HAMID: Well, he is one of our -- one of the U.S.'s friendly autocrats in the region. He has a close relationship with President Obama, at least up until a couple days ago. He has a stubborn streak. I think as we are watching his response to the protests, this is not someone who is willing to concede anything to his opponents. He sees himself as the only person who can rule and manage Egypt. What he's been effective in doing is frightening the West with warnings of an Islamic take over, saying it's either me, or the Muslim Brotherhood. Who do you want?

CLANCY: He's been good at that. What he has not been good at- he's a military man, you are right, he's really tough. I have talked to him. He comes off as tough, determined. The one thing he's never been able to do is countenance any kind of opposition. To allow an opposition political party to develop, to make their own mistakes, to take a share of power.

HAMID: No, he hasn't. Egypt used to have more political freedoms in the 1980s under Mubarak, when he first came to power. And also for a brief period in 2004 and 2005, during the so-called Arab spring. But the last few years, Mubarak has really clamped down hard on opposition. As I said, he doesn't really want a third force in Egyptian politics. He wants to say Islamics are the only other alternative. That is why he has clamped down, in some respects, even harder on liberal, secular opposition in Egypt.

CLANCY: You know, Shadi, I have to ask you very quickly. Mohamed El-Baradei, when I talk to Egyptians they say, you know, he just isn't presidential enough. They don't want him. What do you think? In this kind of situation, he might really move in, in a lot of people's minds as someone who could relieve the tension.

HAMID: Well, Baradei already said the other day, that he's willing to lead the transition, which I think was a big statement to make at the time. He does have popularity in Egypt. His seven demands for reform, his petition has gotten nearly 1 million signatures from Egyptians. That's a very impressive number. So, here is someone who has really been able to develop a following. There are a lot of criticisms that he spends too much time abroad. He is not willing to get his hands dirty and protest among the people.

But what I think he's starting to realize, now, that this is a historic moment. And he doesn't want to miss out. It's why he was in Vienna couple days ago and he just got back the day before yesterday. So, I think he's starting to realize he has a very important role to play.

KAYE: Shadi Hamid, director of research at the Brooking Doha Center. Thanks so much this morning.

HAMID: Thanks for having me.

KAYE: Throughout the morning, we'll be checking with our correspondents in Egypt for the latest on what is going on there. .

But first, authorities have more information surrounding the mysterious death of a Pentagon official. Will it be enough to crack the case?

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KAYE: Welcome back.

We are keeping an eye on what's happening in Egypt right now, and all morning. We are getting reports that the government has now officially resigned. Protestors are back in the streets but so far we haven't seen the kind of violence that we saw there in recent days. We'll have much more from Egypt in just a couple of minutes.

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KAYE: While Egypt is struggling with change, the world markets are also keeping their eye on this crucial ally.

CLANCY: And keeping an eye on the markets, we have Alison Kosik up there in New York.

Alison, what did it look like?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hi, Randi.

The Dow tumbled 166 points on Friday because of concerns about the unrest in Egypt. Political uncertainty of any kind is never good for stocks, and uncertainty is exactly what we had.

In fact, there is an index that measures volatility in the marketplace. It's called the VIX. It jumped on Friday to a nearly two-month high, which made investors pull their money off the table, especially ahead of the weekend. All the major averages lost at least 1 percent Friday.

We also saw a big move in oil. Crude prices jumped almost four bucks settling just under $90 a barrel. Egypt, itself, isn't a huge oil exporter. But the country borders one of the busiest shipping routes in the world, the Suez Canal. It moves nearly 2 billion barrels of oil and petroleum each day. Not to mention, other products traded throughout the region. So, if the waterway were to be compromised, it effect the economies of the Middle East, the Mediterranean, and beyond.

For investors around the world, the big question is, will these issues be contained? If not, how far will they spread? Randi, back to you.

KAYE: Thank you, Alison.

History is unfolding in Egypt. Our cameras and correspondents are right there in the thick of it. Next hour of CNN NEWSROOM (sic) starts right after the break.

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