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CONNECT THE WORLD

Tension at the G20 Summit; The Case for Quantitative Easing; Latest Details on Package Bombs from Yemen

Aired November 10, 2010 - 16:00:00   ET

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


BECKY ANDERSON, HOST: China tells the world deal with your own problems, as figures show its surplus is soaring. The U.S. claims a growing imbalance on an undervalued yuan, but now it, too, is being accused of manipulating its own currency. All this as leaders arrive for the G20 in South Korea. Tonight, how a showdown in Seoul could affect all of us wherever we live in the world.

Going beyond borders on the day's biggest stories, on CNN, this is the hour we connect the world.

Well, as countries across the globe struggle to get their economies back on track, the G20 is a -- a chance for some of the richest nations to work together.

But could growing rows over currencies and trade actually drive them further apart?

Joining the dots in London with you, I'm Becky Anderson.

This evening, also coming up, trying to explode over America -- chilling new details emerge of the cargo terror plot.

Plus...

(BEGIN VIDEO CLIP)

DANIEL RADCLIFFE, ACTOR: While we are all ready to move on and do other stuff, there was certainly an element of sort of a kind of (ph) nostalgia about it, as well. But we'll never have those years again.

(END VIDEO CLIP)

ANDERSON: End of an era -- Daniel Radcliffe tells us about his final adventures of the boy wizard, as we put your questions to the cast of Harry Potter.

And to find out more about our special series of Potter interviews, just head to our Facebook page. The address is Facebook.com/cnnconnect. And if you're not already a fan, do follow us.

More currency -- accusations of currency manipulation, tensions over trade imbalances and disputes over the best fix for the ailing global economy all on the table as G20 powers convene in Seoul. Now, one official says pre-summit debate was so heated, they had to prop open the door for fresh air.

Let's kick off with Paula Hancocks, who explains the main point of contention for you.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT: There is little dispute as to what the main topic of conversation will be at this upcoming G20 meeting. But there is plenty of dispute when it comes to this main topic of conversation, and that is currencies. And, of course, there's -- there's long talks about the issue of a potential currency war.

Now, the battle lines were drawn when the U.S. accused China of allowing its currency to trade at an artificially low level, which, of course made Chinese exports cheap and helps China. But it did not help the countries that China was trading with.

But this fighting talk has now turned against the United States after the Federal Reserve agreed to allow $600 billion to be injected into the U.S. economy, so effectively pushing the value of the U.S. dollar down, as well.

Now, we have heard that there has been a letter from the U.S. president, Barack Obama. He's written to all the leaders of the G20, asking for global cooperation and asking for a group effort to really try and make sure that they can, together, pull the global economies out of recession and they can help create jobs.

He's basically saying what is good for America is good for the global economy, saying that the best thing America could do is get its own economy back on track, create jobs and increase income and that will help across the board.

Now, some experts are pointing out that the G20 is always better in a crisis. Previous G20 meetings were when all countries were struggling, so the unity came naturally. But now, of course, different countries are pulling out of this -- these recessions and -- and creating jobs at different speeds and it's very difficult to get unity on this.

And, also, what will be important is the bilateral meetings on the sidelines of this G20 meeting. We know that the U.S. president, Barack Obama, will be meeting with the Chinese president on Thursday and also with the South Korean president.

He'll also be going to Yongsan garrison to speak to the troops there. But veterans say there are currently still 29,000 U.S. troops stationed here in South Korea.

Paula Hancocks, CNN, Seoul, South Korea.

(END VIDEO TAPE)

ANDERSON: Keep an eye on your connect line there on your screen. We're going to show you how a story out of Seoul resonates around the world wherever you live.

Critics of China's economic policies say that the yuan is undervalued by as much as 40 percent, making Chinese exports, of course, artificially cheap. Well, figures released just today show the trade imbalance is still growing. China's monthly trade surplus skyrocketed 61 percent in October from the previous month, to $27 billion. That is the second biggest monthly serve -- surplus this year.

Well, Britain is one of the countries urging China to correct this imbalance, saying Beijing's economic rise should be an opportunity for other economies and not a threat. Prime Minister David Cameron made those remarks during a two day visit to China meant to boost bilateral trade. He warned of the consequences of the currency's low valuation.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: The truth is that some countries with current account surpluses have been saving too much, while others, like mine, with deficits, have been saving too little. And the result has been a dangerous tidal wave of money going from one side of the globe to another. We need a more balanced pattern of global demand and supply, a more balanced pattern of global saving and investment.

(END VIDEO CLIP)

ANDERSON: All right, David Cameron there.

Well, China has a suggestion of its own -- world leaders should focus on their own problems at home, it says, instead of casting blame for global trade imbalances. That statement from President Hu Jintao ahead of his meeting on Thursday with the U.S. president, Barack Obama. Well, the Chinese premier is also defending the yuan's valuation. You may remember, at a summit in Brussels last month, Wen Jiabao said forcing a rise in the currency could lead to social unrest in China, which, in turn, could spell disaster for the world. Mr. Wen also said this to CNN's Fareed Zakaria.

(BEGIN VIDEO CLIP FROM "FAREED ZAKARIA GPS")

WEN JIABAO, CHINESE PREMIER (through translator): China does not pursue a trade surplus. Our objective in having foreign trade is to have balanced and sustainable trade with other countries. And we want to have a basic equilibrium in our balance of payments.

(END VIDEO CLIP)

ANDERSON: Well, that's what we heard earlier.

China is not the only one in the hot seat here. Critics say that the United States is, in a sense, manipulating its own currency. They are upset that the Federal Reserve has decided to pump an extra $600 billion into the U.S. economy by purchasing long-term government bonds.

Now, Germany, China, South Africa and others say this so-called quantitative easing amounts to a devaluation of the dollar and could trigger a currency war if other countries respond in kind.

Well, the U.S. president has responded by saying it's in everyone's interests for the U.S. economy to make a strong recovery.

So let's try and sigh sort out what's going on here, shall we?

Felicia Taylor joins us now from New York with more on the U.S. defense on quantitative easing.

Not everyone around the world agrees with what the president says -- Felicia, in basic terms that even I can understand, explain to me what is going on here.

FELICIA TAYLOR, CNN CORRESPONDENT: Well, in essence, you know, part of that letter that Obama wrote to the G20 ministers also addressed the idea of what's good for the U.S. economy will also be good for the dollar. So the idea behind quantitative easing is to reduce interest rates. And what that's going to do is then make it easier for people to -- to step into the marketplace and to borrow money. That will hopefully go into small businesses, create jobs, get the economy moving again.

There is a risk of inflation, but that's not a bad thing right now, because what we're actually worried about in the United States is deflation. So a little bit of inflation is not a bad thing.

And we've actually heard other Federal Reserve chairpeople addressing the idea of -- of the criticisms -- criticisms that the United States has received, not just of Mr. -- President Obama addressing that in the letter, but James Ballard from the St. Louis Federal Reserve did, as well.

Take a listen.

(BEGIN VIDEO CLIP)

JAMES BALLARD, ST. LOUIS FEDERAL RESERVE PRESIDENT: The Fed has to pursue what it can to pursue its internal mandate, which is keep inflation low and stable and get maximum sustainable employment in the U.S. So I don't think you can't -- you can't have other, you know, people around the world sort of calling the shots on that mandate.

(END VIDEO CLIP)

TAYLOR: And -- and the truth is, it's just too soon to tell whether QE2 has actually worked. It's -- it's too soon. It's only been in place for about a week now. What we have seen is a tremendous run-up in some of the commodity prices since QE2 was even announced, the possibility of, in August. We've seen a tremendous run-up in gold, in cotton, in -- and sugar prices, you name it. And, also, as well as oil. Now that's where it gets to be a possible tax on the consumer. And that could lead to inflation.

So when we go to buy gas, the price of, you know, of -- of gas and oil will rise, when it comes to heating our -- heating our homes in the wintertime.

So the general idea is to reduce interest rates, get people borrowing again, banks to lend money, promote that back into businesses, get the consumer out there spending and, therefore, the economy in the United States will grow once again -- Becky.

ANDERSON: All right, that's the message stateside.

Felicia, as ever, we thank you for that.

Our next guest says China has good reason to be worried about the Fed's decision. He says it will have huge consequences, but Beijing has only itself to blame.

Never a great defender of the Chinese, our Gordon Chang is a Big Thinker on this show and one of your CONNECT THE WORLD panelists.

And I -- I don't -- I don't say that lightly. You're not a great defender of the -- of the Chinese.

But at this point, do you think that they have a point when they say get your own house in order?

GORDON CHANG, CONNECT THE WORLD PANELIST, AUTHOR, "THE COMING COLLAPSE OF CHINA": Well, you know, certainly, because what's going to happen is the dollar is going to get cheaper. And they hold a lot of dollars. But what they're really concerned about is that with the easy money in the U.S., people are going to take those funds and invest them in China, creating asset bubbles and inflation there. So their economy could spin out of control.

But the problem -- you know, their argument does fall down because they had problems because they linked their economy to ours. They could sort of de-link by letting their currency float. And that means they wouldn't be worried by QE2.

ANDERSON: You know, we've heard the Chinese authorities say, listen, you know, we're not going to play around with -- with our currency. If we were to do that, it could cause social unrest and that could hurt not just people in China, but people around the world.

Is there an argument there?

CHANG: Yes, I -- I think that if the export industry in China falters, you will see the Chinese economy falter and that will shake the Chinese political system.

But the point is, you know, what about American workers or British workers or German workers?

I mean they're being disadvantage. And I think what we need to see is flee for -- a -- a free floating currency in China so that what we have is that this global imbalance that caused all the problems in 2008 is unwound. That's a real issue for the world.

ANDERSON: Let's remind ourselves why, if I were watching in Germany or in Britain today or -- or in Spain, for example, why this story really matters.

If we were to see a currency war between the U.S. and China, that would have an enormous effect, for example, wouldn't it, on the euro, and, indeed, sterling?

You know, you're looking at two currencies there that don't need to be knocked around and made any more expensive at this point, but -- but they would be if -- if the U.S. and -- the U.S. dollar and the Chinese yuan get any cheaper, wouldn't they?

CHANG: Yes, certainly. This would have a flow on effect to all the currencies in the world. And, you know, the euro, which is probably overvalued, you know, you could have a problem there, because it would make it much more difficult for the Euroland to export. And exports are a very important part, for instance, of the German economy.

So, you know, essentially what we have is something, you know, with the U.S. and China in the zero sum game...

ANDERSON: All right...

CHANG: -- it's going to affect everybody else.

ANDERSON: We are hearing a lot of rhetoric at this point and we are watching what can only be described as a lot of brinkmanship at this point. We know there are bilaterally talks going on behind closed doors. We only ever see, you know, the -- the G20 sort of meeting and greeting and we get the kind of picture and then -- and then we assume they all go off and talk. And yet we know things are going on behind closed doors.

How close are we, at this point, to a currency war?

CHANG: Well, you know, countries like Japan, Taiwan, South Korea, Thailand, Singapore, they're all depressing their currencies to get a trade advantage. So the thing -- the global currency war is on, as the Brazilian finance minister said about a couple of weeks ago. The issue is whether it's going to intensify.

And I think it's, after Seoul, we're going to see the failure of this multilateral process because it's just not going to work. And that means that we're going to see what we saw in the 1930s, which is countries with beggar thy neighbor policies. There is really no good scenario coming out of Seoul.

ANDERSON: Well, I'm sorry to hear that. And I'm -- I'm sure our viewers would have liked a little more optimism from you this evening, sir.

But as ever, we thank you for your thoughts.

And we'll leave it to the viewer to decide whether they buy your argument or not.

Gordon Chang for you this evening.

Well, after the break, it was timed to detonate right over the Eastern United States. Tests revealing chilling new details about the Yemen mail bomb intercepted on a plane in England last month.

And venting their fury on the streets of London -- around 40,000 students protest the government's plans here to raise tuition fees and cut education funding. We'll have more on those protests in just a moment.

(COMMERCIAL BREAK)

ANDERSON: We're back with CONNECT THE WORLD here on CNN at 16 minutes past nine in London.

Well, it sparked a global terror alert, setting in motion international reviews of how we handle and receive our air freight. All this week, we've been looking at this huge vulnerability in airline security after a series of package bombs that you'll remember are sent from Yemen were intercepted before they detonated.

Well, we began this week in Islamabad, where CNN's Reza Sayah tracked a registered parcel minute by minute around the world, testing just how much information anyone can gain access to online.

Then we delved into another air freight loophole that neither technology or added security can prevent -- and that is corruption. We followed the case of a global shipper, which has admitted bribing government officials all over the world.

Well tonight, we're learning more information on when one of those Yemen mail bombs found on a plane in England last month was timed to explode. And, perhaps more crucially, just where it could have detonated.

Our Susan Candiotti is on the story for us.

And she's got the latest details live for us -- Susan.

SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, Becky, first of all, two key things that we learned today. And, truly, they're chilling bits of information.

First, we learned from a -- a senior U.S. counter-terrorism official here today, telling CNN that that printer package bomb that was stuffed inside that package with the explosives, PETN, that had that not been discovered, that that package would have gone off about six hours after that plane took off from the U.K. heading for its final destination in the United States.

But that was also followed up by Scotland Yard issuing a statement that had that bomb not been intercepted -- we're quoting here -- Scotland Yard says: "Activation could have occurred over the Eastern Seaboard of the United States."

Now that particular U.S. flight took off from East Midlands Airport, which, of course, is located just about an hour or so -- a few hours north of London and then took off over the Atlantic. It went over, we are told, rural parts of Canada, then crossed over parts of Upstate New York, over another not well populated area of Pennsylvania and its final destination being Philadelphia, Pennsylvania.

So this tells us that this package could have gone done over land or upon landing. It's impossible to say for sure. But certainly in addition to taking out that -- the plane and its crew aboard, it also could have taken out, of course, innumerable lives on the ground had that exploded.

Now, today we got some reaction to all of this from the U.S. chief of the Department of Homeland Security, Janet Napolitano.

JANET NAPOLITANO, U.S. HOMELAND SECURITY SECRETARY: Terrorist groups are intent on acting in the aviation environment and on attacking -- and on attacking Americans and attacking our country. And so that has meant that we have increased our -- some of our screening requirements on cargo.

(END VIDEO CLIP)

CANDIOTTI: Now, again, we want to emphasize, as authorities have throughout, had it not been for that intelligence tip that was passed on by the Saudis, authorities have said time and again these explosives would not have been found. So it just goes to show you how crucial that information would have been, because the explosives had not been picked up by other screening procedures that had been in place -- Becky.

ANDERSON: Fascinating and testifying at the same time.

Susan Candiotti for you on CONNECT THE WORLD this evening.

Susan, we thank you for that.

CANDIOTTI: Thank you.

ANDERSON: Well, terror, too, in Baghdad. Next up on CONNECT THE WORLD, Christians in Iraq plead for international help, as another wave of targeted bombings claim more lives, I'm afraid.

And then, the dark chapters of Harry Potter come to life on the big screen. Later, we're going to speak to the stars of the most magical franchise in the world.

(COMMERCIAL BREAK)

ANDERSON: You're with CONNECT THE WORLD.

Now, a day of deadly bombings in Baghdad. And again, the targets are Christians. At least three people have been killed and another 25 have been wounded in the latest violence against the religious minority there.

Arwa Damon speaks to the survivors of these targeted attacks, which are drawing condemnation from around the world.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: (voice-over): The first bomb was placed in this car outside the Scamba (ph) home. The household identified as Christian by the writing on the black mourning banner. The family of Sayed Eduar Scamba presents it as they relive the nightmare that has become their lives.

Sayed was killed in the October 31st siege, along with more than 50 other congregants. His mother was with him. She spent four hours lying in a pool of blood, surrounded by the dead.

"I kept saying, 'where is my son? Please tell me, where is my son?'"

He was shot in the leg and was crying out and they shot him in the back, Falma (ph), his sister, tells us.

And now a week, 10 days later, this?

Theirs is one of many Christian homes that were attacked across Baghdad in just one day.

"It was two bombs. The first car bomb blew and I took my family and we fled to the roof," her husband Kayeen Tomas (ph) adds. There was one of our neighbors who came," Falma (ph) recalls. "He was one of the men who carried my brother's casket. He came to help, to put out the fire, and the second car blew up."

Their neighbor, a Muslim, was killed in that second explosion. Now his body carried in a casket. His father is shocking with anger at the government. "I just want to ask you how Prime Minister Nouri al-Maliki, is this acceptable?"

His voice trembles with rage.

While the politicians are sitting in the Green Zone, people are getting killed, Christians blown up, Muslims, too. And the political parties are fighting and we are the victims. What is our crime?"

The government hasn't made any public statements about the attacks, but has condemned such religious violence in the past. They have yet to convince Iraqis that they can protect them in the future.

(on camera): There are a number of Christians whose homes were just targeted who are now here seeking sanctuary at this undisclosed location. Many of them don't want to appear on camera. They are that afraid. They fled with just the clothing on their backs. The organizers here were fully anticipating that Christian families would be looking for a safe place to stay and so they took some precautions. They brought mattresses, pillows and extra food. No one knows how long they're going to have to stay here.

(voice-over): According to the Christian community, more than half of their members have already fled Iraq. Most are too afraid to talk about their experience.

The Scamba (ph) household the only ones who would talk on camera. The boy's feet still covered in soot as they fled their burning home. "I don't understand what is happening. Where is the government? Where are the plane? Where is the international community?," Falma asks. "Why is this happening in Iraq? I just want to know."

Terrified, they, like all the families we met, are pleading for help to leave Iraq, the country they love but can no longer call home.

Arwa Damon, CNN, Baghdad.

(END VIDEO TAPE)

ANDERSON: All right, let me get you some numbers here. Christians are a minority group across the Middle East. And in many areas, their numbers continue to dwindle. According to Reuters.com, that includes Iraq. Now, before the US-led invasion, the country's Christian community, one of the oldest in the world, was around 850,000 strong. Well, 3 percent of the population or an estimated 300,000 of those Christians have left Iraq since 2003.

In Egypt, around 10 percent of the population describe their faith as Coptic Christian. That amounts to about eight million floors.

Syria has around 850,000 Christians, or around 4.5 percent of the country's population, while Lebanon has a much larger following percentage wise. It's one-and-a-half million Christians make up about 35 percent of the population.

Well, let's get back to the story out Iraq.

Father Nizar Semaan, chaplain of the Syrian Catholic Community in the U.K., has joined a chorus of condemnation over the Iraq attacks.

He joins me now here in the studio.

And, Father, you're calling on Islamic leaders to help protect Christians by issuing -- and I was quite surprised to hear this -- a fatwa against the killings.

We welcome you to the show.

Just explain why you've done that.

FATHER NIZAR SEMAAN, CHAPLAIN, SYRIAN CATHOLIC COMMUNITY U.K.: Because we thought it was just. As we like to say in the Middle East, we have to cooperate with our brothers and sisters there. I mean it was the only way to be protected in that area. And if our Muslim brothers, I mean the head of our Muslim brothers, they will issue this kind of fatwa to prohibit to kill the Christians, I think this is -- it will be a big victory, not just for the Christians, but either for the Islamic religion itself, because issuing the fatwa, that means you are not considering that these groups, tourist (ph) groups and the people and (INAUDIBLE) group are Muslim.

ANDERSON: What sort of response have you had from the Islamic community?

SEMAAN: Absolutely...

ANDERSON: (INAUDIBLE)?

SEMAAN: No one answered me positively. And I wish to hear the answer this.

ANDERSON: Were you surprised?

SEMAAN: Sure, I'm surprised, because condemnation by word, it's easy to say. But in today's situation, we need some act. And acting means it's your responsibility. Keeping silent, that means you are part of these crimes.

ANDERSON: We've heard Arwa Damon's report tonight. Recently I spoke to one vicar in Baghdad, an Anglican vicar who has an enormous congregation, it's got to be said, about 4,500 people. I want you and our viewers just to hear a little of what he said about life in Iraq at the moment.

Just have a listen to this.

(BEGIN VIDEO CLIP)

CANON ANDREW WHITE, "THE VICAR OF BAGHDAD": I can't deny that I am a target. And a letter came recently addressed to me saying that you are going to be targeted, as well as your people. We are going to get rid of you and them. But I have to be honest, my commitment to these people, these Iraqi Christians, is so great that I am not afraid. I want to be with them. I want to look at them. And I say to them regularly, I'm not leaving you, don't you leave me.

(END VIDEO CLIP)

ANDERSON: The problem is -- and he's a very brave man. The problem is his congregation both there -- and, of course, Christian congregations around the region -- are beginning to leave, aren't they?

Can you see a solution to this?

SEMAAN: I mean nothing is impossible in our modern world. If everyone thinks of this possibility, I mean today is a good things for the Christians in Iraq, because their voice has arrived everywhere. If you see by news the manifestation and everywhere, they are talking about the situation of Christ. It was like something in Greek, you know?

And now, we put it in reality. And that's what we are going to do...

ANDERSON: Do you...

SEMAAN: -- at this time.

ANDERSON: Do you believe if and when there is a working government in Iraq, and, of course, you know, there were elections in March and we've had absolutely nothing since then. I mean it's a -- it's a very -- it's an awkward situation at best.

Do you think the government will provide any sort of support for its Christian community?

SEMAAN: They should. They should.

ANDERSON: But will it?

SEMAAN: They should. They protect -- every government has to protect its people.

If not, what is it doing there?

If a government are not able to protect its people, better, to put aside and to give the responsibility to other people maybe who will do better than him.

So, I trust -- I still full of hope, no matter what's happened, I know it's tragic. It's a terrible massacre. But we are not going to lose our hope. Our hope in ourselves, that we are staying in Iraq. I'm sure many will decide to leave.

ANDERSON: OK.

SEMAAN: But on our side, the majority will stay in Iraq, continue their testimony. We're a witness in Iraq.

ANDERSON: I'm going to have to leave it there. We're going to take a very short break. We do, though, thank you very much, indeed for joining us here. It's been an absolute pleasure on CONNECT THE WORLD. Thank you.

SEMAAN: Thank you very much.

ANDERSON: Still ahead this hour, dramatic scenes in London as students smash their way into Conservative Party headquarters. The violence took even police by surprise. We're going to tell you what is behind their actions.

(COMMERCIAL BREAK)

ANDERSON: You're back with CONNECT THE WORLD here on CNN. I'm Becky Anderson for you in London. Coming up in the next 30 minutes, student protests flare up in the UK. We're going to take a look at the violent turn of events in a rally against higher university fees.

Then, from the streets of London to the streets of Hamburg to the mountains of Pakistan and Afghanistan. Two German spy chiefs trace the path of jihadists allegedly planning a Mumbai-style attack on Europe. That CNN exclusive still to come for you.

And then, we're going to weave a bit of magic into the show. The stars of "Harry Potter" join is, answering your questions as fully grown wizards.

All those stories are ahead in the next 30 minutes. First, as ever at this point, let's get you a very quick check of the day's headlines.

World leaders are gathered in South Korea where the G20 summit is set to begin, and it could be a heated session. China has publicly criticized last week's US Federal Reserve decision to inject $600 billion into the US economy, and there's friction over exchange rate manipulation.

Investigators say one of the parcel bombs found in England last month was set to explode six hours after it was discovered. Scotland Yard says it would have detonated over the Eastern Seaboard of the US if it had not been taken off the plane in England.

Boeing has halted test flights of its 787 Dreamliner after the new jet made an emergency landing in Texas. The plane touched down safely after the pilot reported smoke in the cabin. At the time, employees were testing a fire prevention system. Everyone onboard escaped unharmed.

At least three people have been killed in the latest assault targeting Christians in Iraq. An interior ministry official says a string of bomb and mortar attacks targeted Christian homes in Baghdad neighborhoods. It follows last month's deadly siege on a church there.

It began peacefully enough, but a huge student protest that brought London streets to a virtual standstill today soon turned ugly. Atika Shubert explains how anger over planned hikes in university fees descended into violence.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN CORRESPONDENT (on camera): This is the backlash against Britain's age of austerity. Thousands of students are taking to the streets, out to protest rising tuition fees. Right now, they're paying about $5,000 a year. Well, the government says universities can now almost triple that amount to about $15,000. Students here say that means an education system will only be affordable to the rich.

What started out as a peaceful protest has broken out into a bit of violence, as you can see. A lot of anger with the Conservative government. This is actually Conservative Party Headquarters, and some of the students have tried to break through the glass here, and actually did manage to get inside briefly, lighting off some colored flares.

But I have to say, the police presence here has actually been quite minimal. There has not been a lot of security, and that may be one reason why students were able to do this.

(STUDENTS SHOUTING)

SHUBERT: This is a pretty surreal situation. Hundreds of student protesters in front of the lobby gates and have taken over the plaza in front of the building that houses Conservative Party Headquarters. And they've managed to smash through the windows, vandalized the lobby, even managed to get into the building, throwing fire extinguishers off the top of the roof.

There was minimal security earlier, not that much (inaudible). But finally came in. You can barely see them over there. But the question is, how are they going to get control of this?

(Inaudible) try and push some of those protesters back. As you can see, there's a lot of destruction behind his, a lot of people will be asking questions tomorrow about how this happened.

(END VIDOETAPE)

ANDERSON: Atika Shubert, there, struggling to make herself heard. You can just see what was going on in the background there.

The London protest of the latest in a string of demonstrations across Europe against what are austerity measures, of course. French workers have demonstrated for months against a proposal to raise the retirement age from 60 to 62. IReporter Manon Guerente filmed this demonstration in October when more than a million people hit the streets. But all that anger to no avail. President Nicolas Sarkozy has now signed into law the proposal.

In Spain, citizens took to the streets to rail against frozen pensions and wage cuts. IReporter Jennifer Rios in Seville shot these photos and said some protesters threw loud smoke bombs.

A protest in Athens turned deadly earlier this year. I'm sure you remember these scenes. Thousands of public sector workers and citizens demonstrating against proposed wage freezes and higher taxes. Three bank workers were killed when a petrol bomb hit a bank building. IReporter Kostantinos Liveris captures the smoke and flames rising there from the scene.

Connecting the world for you here on CNN. Up next on the show, a CNN exclusive for you. Two German spy chiefs trap the jihadists behind a Mumbai-style terror threat on Europe.

(COMMERCIAL BREAK)

ANDERSON: Mumbai-style attacks in Europe. According to intelligence services, that's the treat being made and prepared for by jihadists linked to a terror cell based in Hamburg. In an exclusive interview with CNN's Nic Robertson, two German spy bosses reveal how the alleged plotters are weaving their way across continents and becoming increasingly difficult to track. Take a look at this.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): These never broadcast before intelligence photos reveal the faces of men allegedly behind the terror plot that helped trigger a recent Europe-wide US travel warning. They lived in Hamburg, nerve center of the 9/11 plotters.

AUGUST HANNING, FORMER GERMAN INTELLIGENCE CHIEF: We have got the information that they have planned or are planning a plot like the Mumbai plot in Europe and in the United States.

ROBERTSON (voice-over): August Hanning, recently retired as one of Germany's top counter-terrorism officials. He says Europe is an easy target.

HANNING: Not only the air traffic, the whole public sector. We are very vulnerable. We know this.

ROBERTSON (voice-over): For the first time, German intelligence officials are going on the record about al Qaeda's new Hamburg cell.

They met at this nondescript mosque. The same one where Mohamed Atta prayed with other 9/11 conspirators before leaving for America.

MANFRED MURCK, HAMBURG INTELLIGENCE CHIEF: And if there is one place where, from Denmark even to the United States, people know if you want to be a brother in the name of Allah and have an idea to be a member of jihad, then go to al-Quds mosque in Hamburg.

ROBERTSON (on camera): It was that famous.

MURCK: This was that famous.

ROBERTSON (voice-over): The Hamburg group left Germany in the spring of 2009. One of them, Shahab Dashti, seen here wielding a knife in a propaganda video made by an al Qaeda affiliate, was killed in a drone strike in Pakistan in early October. Another member, Afghan-German Ahmed Sidiqi. And the possible ringleader, Naamen Meziche, a Frenchman of Algerian descent.

ROBERTSON (on camera): One of the group knew two German radicals from Bonn who'd already gone to terror training camps in Pakistan, and they used those connections to start their jihad. But when they got there, they used their pre-9/11 al Qaeda connections from the mosque here to trade up and organize meetings with al Qaeda leaders.

ROBERTSON (voice-over): Their aim was to fight jihad in the mountains. But then, the focus changed.

MURCK: They developed the plan, or they got, somehow, the plan from somebody else, to go back. Not to stay there, to fight there, but to go back and to commit some crimes in Germany, in Europe.

ROBERTSON (voice-over): Most worryingly of all, they may have had contact with this man, Ilyas Kashmiri, who was behind the Mumbai attacks and has openly threatened similar attacks in Europe and America.

HANNING: He is dangerous, yes. He has the possibility to convince people. He knows our situation here in Germany and, therefore, he is dangerous.

ROBERTSON (voice-over): But then, the Hamburg group began to unravel. One was caught by Pakistani police.

ROBERTSON (on camera): And then, another one, Afghan-German Ahmed Sidiqi, was detained. His family says he was on his way here, to the German embassy in Kabul, to get a new passport, but was snatched from the streets and taken to a US-run jail outside the capital.

ROBERTSON (voice-over): Western intelligence agencies began to confront the prospect of multiple attacks modeled on the Mumbai assault, in which more than 160 people were killed.

ROBERTSON (on camera): And from what we understand, the info -- this information came from Ahmed Sidiqi.

HANNING: I think, from different sources. Until you have mentioned the name, yes.

ROBERTSON (voice-over): There were reports that one of the most dangerous members of the Hamburg group, Naamen Meziche, had been killed in a drone strike in Pakistan. Now, German officials are not so sure. The whereabouts of several others of the Hamburg cell, unknown. And German intelligence has plenty of other people to worry about.

HANNING: Our estimate is 220 people who have left Germany for training purposes in Pakistan, being trained there in terrorist techniques, and nearly half of them have come back to Germany. And that's the real threat for us.

ROBERTSON (voice-over): In Hamburg alone, intelligence officials count 40 pro-al Qaeda radicals, with about 100 others in close contact with them. More than they can keep track of.

MURCK: Taken all together, we don't have a real chance to look at each of them, of those 40 or 140, 24 hours of everyday week. Of course not.

ROBERTSON (voice-over): Some counter-terrorism officials say that al Qaeda may even be planning attacks in Europe before the end of the year.

MURCK: You just have to live with the possibility it might happen, and we have to live with our responsibility to hinder it.

ROBERTSON (voice-over): The base for some of the 9/11 plotters a decade ago, Hamburg, has no desire to be the incubator for another al Qaeda attack. Nic Robertson, CNN, Kabul, Afghanistan.

(END VIDEOTAPE)

ANDERSON: Connecting the world for you here on CNN. I'm Becky Anderson in London.

Now, it's the series that's cast a spell on audiences all over the world and, tonight, we've got the great wizard himself in the hot seat. Actor Daniel Radcliffe telling us how he's taken on some Harry Potter's not-so-sterling qualities.

(BEGIN VIDEO CLIP)

DANIEL RADCLIFFE, ACTOR: My mum made a point when I -- when she read the -- I think it was the sixth book. And she said, "It's like JK Rowling knows you, or something, Dan. Because when she writes Harry when he's being petulant and argumentative, she really gets you in there, when you're just really irritating."

(END VIDEO CLIP)

ANDERSON: And that's his mum. Don't miss this and our interview with the evil Lord Voldemort, Ralph Fiennes. That, up next.

(COMMERCIAL BREAK)

ANDERSON: All right. The cast of "Harry Potter" has grown and aged just as its fans have grown en masse. And this week, we've given you the chance to ask them your questions. Tonight begins our special three-day coverage, and we make no apologies for that, surrounding part one of the final "Harry Potter" film. And who better to start with than the boy wizard himself.

(BEGIN VIDEOTAPE)

RADCLIFFE: A long time ago, I read the first two books. And I have since then completely forgotten everything about them.

ANDERSON (voice-over): He was just another child actor.

UNIDENTIFIED MALE: Harry Potter.

ANDERSON (voice-over): But his round glasses and shaggy, brown hair meant that he was one step closer to landing the role of a lifetime.

And that's exactly what happened. When Daniel Radcliffe, at the age of 10, was cast as Harry Potter.

HARRY POTTER: Can you tell me where I might find platform nine and three quarters?

CONDUCTOR: Nine and three quarters? Think you're being funny, do you?

ANDERSON (voice-over): Taking on the awesome responsibility of bringing to life a character worshiped by millions around the world.

(CROWD CHEERS)

ANDERSON (voice-over): The release of the first film, "Harry Potter and the Philosopher's Stone," was in 2001. And since then, the world has watched Radcliffe grow up onscreen, fighting every kind of villain imaginable.

HARRY POTTER: If Voldemort is building up an army, then I want to fight.

ANDERSON (voice-over): And even falling in love.

CHO CHANG: Harry.

UNIDENTIFIED MALE: They are coming.

ANDERSON (voice-over): In "The Deathly Hallows," the final film in the series, Harry puts his life on the line to rid the wizarding world once and for all of the dark lord, Voldemort.

VOLDEMORT: I must be the one to kill Harry Potter.

ANDERSON (voice-over): The two-part film is the final hurrah to a character Radcliffe has been playing for nearly half his life. And he talked to me about it coming to an end.

RADCLIFFE: To be honest, filming was do exhausting, because we were filming for 18 months, that by the end of it, we were like, "I'm ready for it to end. Are you ready for it to end?" But it was -- you know, the last day, when we got to that point. Yeah. It was quite -- we all wept like kids. Definitely. And it is sad.

But it accounts for 10 years of our lives, so I think, while we were - - we are all ready to move on and do other stuff, there was certainly an element of sort of slightly painful nostalgia about it all as well, that we'll never have those years again.

ANDERSON (on camera): Of course. How much of Harry is there in Daniel?

RADCLIFFE: I suppose quite a lot. I don't know if there has been some sort of weird osmosis thing going on, where we sort of bled into each other over the last 10 years.

I think it's -- it was weird. My mum made a point when I -- when she read the -- I think it was the sixth book. And she said, "It's like JK Rowling knows you, or something, Dan. Because when she writes Harry when he's being petulant and argumentative, she really gets you in there, when you're just really irritating."

And so, I think, there are certain elements of Harry when he's cornered and gets defensive.

MULITPLE HARRY POTTERS: Wow, we're identical.

RADCLIFFE: It's particularly -- I think it's a very male thing as well, when you know you're wrong to just become more belligerent about the situation. I think there's definitely that we --

ANDERSON: It's both of you.

RADCLIFFE: Have in common. Yes. That's clear.

ANDERSON: Mackenzie has written to us. He says, "Do you feel as engaged by the character as you did in the first film?"

RADCLIFFE: Much more. Much more so than on the first film. I mean, on the first film, I was an 11-year-old kid having a great time on a film set. And it was only around the time of the third film, when I was about 14, 15, that I really started to take it more seriously.

And to be honest, the role gets more challenging, more interesting as an actor, every year. And this and the last film, which are yet to come out, are the most challenging he's ever been. So, the more challenging it is, the more engaged you feel. So, yes, Mackenzie.

ANDERSON: Victoria asks, "How do you feel when you watch the movie for the first time?"

RADCLIFFE: Funny enough, with this film, it was the sort of -- it was the best I've ever felt.

HARRY POTTER: Are you saying you can apparate in and out of this room? Could you take us with you?

RADCLIFFE: I don't like watching the films. And I never watch the films again after, like -- after it hits -- after the New York premier is the last time I'll see this film. And I won't watch it probably for I don't know how many years. I've not seen any of the other ones.

I was really -- I really didn't like the sixth one. I was very disappointed on a personal level with that film. I like the film as a whole, but I wasn't pleased with myself.

It's pretty -- I think most actors, though, would say it's pretty cringe-worthy watching yourself.

ANDERSON: Ryan asks, "How hard is it to turn your character off?"

RADCLIFFE: For me, it's very easy. I don't -- I'm not a big method actor, I don't tend to take too much of the angst and things home. Occasionally, if you've -- what happens -- it's not as much about that, but if you have a day at work where you don't feel that you've done well, that stays with you. That is hard to let go of. That you can just -- that I will lose sleep over.

But if I've really got into a scene and done it well, and I feel I've done it well, and I've committed to it, and when it ends, I can go, "OK, I've done that well, I'm pleased with it." I tend -- I find it easy to walk away from, certainly.

ANDERSON (voice-over): From protagonist to villain. In Spielberg's 1993 film "Schindler's List," Ralph Fiennes showed the world that he could play evil.

The frightening performance earned the British legend universal acclaim and an Academy Award nomination.

AMON GOETH, "SCHINDLER'S LIST": I'm looking at you. I want you. You're not a bunk.

ANDERSON (voice-over): But today, Fiennes is playing a very different kind of evil.

VOLDEMORT: I was beginning to worry you had lost your way.

ANDERSON (voice-over): One whose methods are still based on violence, but of the magical kind. As the dark lord, Voldemort, Fiennes is the arch- nemesis to young Harry Potter.

VOLDEMORT: I have seen your heart and it is mine.

ANDERSON (voice-over): Having killed his parents before the series even began.

VOLDEMORT: Harry.

ANDERSON (voice-over): As the films have progressed, so have their battles.

VOLDEMORT: Come to die.

ANDERSON (voice-over): And this last episode of "The Deathly Hallows" is a battle to the death.

VOLDEMORT: Where will he be taken, the boy?

PROFESSOR SNAPE: To a safe house.

ANDERSON (voice-over): Fiennes described to me the process of portraying the dark lord, and why it keeps getting better.

LUCIOUS MALFOY: I face an unfortunate complication.

RALPH FIENNES, ACTOR: I think I feel more engaged. I think David Yates, who's directed this film, has been brilliant at challenging everyone -- and I felt challenged -- to keep it fresh, to keep discovering. Never letting us just do, there it is, we've done it before, here it is, you know what it is. No, no. He would say, "Ralph, you know, go further with this. Really go further. It's -- digging, keep digging. Keep discovering."

And open, too, to ideas, or if I said, "Maybe I could try it like this, or like that," he was -- so he kept, David Yates kept a great atmosphere of let's rediscover the part.

ANDERSON (on camera): How do you think this movie stacks up to the last?

FIENNES: I like this one, for me, the most. I like the way it doesn't seem to be one, sort of big moment after the next. I think it has the courage to take the time to explore the relationship between Harry and -- I get all the names --

ANDERSON: The others.

FIENNES: The others. Rupert and Emma and Daniel. They all are wonderful, with David's guidance.

The tensions between them and the jealousies and that's -- The moment I love in this, which is when Harry, Daniel and Emma dance together. And it's this wonderful dance, which is not a dance of romance. It's a dance of friendship and a moment of finding some joy when everything is against them. I thought that was beautifully done.

ANDERSON: You play Voldemort, of course. Megan asks, "How on earth do you do Voldemort's nose?"

FIENNES: Well, it's not -- I don't do it. I mean, I have --

ANDERSON: You deal with it.

FIENNES: No, it's done after the event, but CGI.

ANDERSON: Oh?

FIENNES: Yes. Yes, yes. No, when we're shooting, I have brightly colored dots all over my face, which are called tracking marks, and they are used by the computer guys to create the noseless face that you see.

ANDERSON: I had no idea.

FIENNES: Yes.

ANDERSON: Ralph asks, "Is Voldemort the most evil character that you've played, and is it more fun playing the bad guy?"

FIENNES: Well, I find it -- I find playing really good guys is quite hard. I think -- and what's great Harry is that he has conflict. He's tempted and he has disturbances. And I think -- I've played from scary guys before, but I think Voldemort is the most iconic. He's extreme. He's sort of mythic, isn't he? And as JK Rowling has written him, he's sort of -- he's a devil, really. It's sort of playing the devil.

(END VIDEOTAPE)

ANDERSON: I've seen a preview of the movie, and it is dark, let me tell you. And a reminder that the "Harry Potter" films are produced, of course, by Warner Brothers, which is a part of our Time-Warner parent company.

This magical series has enchanted so many of you over the past 10 years. Here's what you've been saying about it on our Facebook page. Brian Koyoo says "It brought out an innocent form of adventure that spanned the age divide, giving generations the ability to dream and live in a world where fantasy and fact clash with perfect results."

Keira Rodriguez writes, "I must be the only person in the world who hasn't seen any of the films or read the books. Will watch when the hoopla dies down."

And Harit Boo has had enough. "It's something I don't want to be addicted to again ever," she says.

Well, if you are a "Harry Potter" fan, and there are millions of you out there, then you're going to love this week. Tomorrow, right here on CONNECT THE WORLD, we've got two more of the series superstars. The sunny actress, Emma Watson, who plays Her -- Hermeeonee -- how do I never get that name right? Anyway, Granger. Hermione, that's right. Here's a little of what -- a taste of what she'll be revealing.

(BEGIN VIDEO CLIP)

EMMA WATSON, ACTRESS: It was a very intense film to make. It was -- it's really dark. So, it maybe wasn't the most fun, because it really -- it took a lot out of me to play this role. But it was very rewarding and challenging and interesting, and it really pushed me.

(END VIDEO CLIP)

ANDERSON: Hermione, Hermione. There you go. Hermione. And the loveable Ron Weasley or, as he's known in our world, Rupert Grint. That's part two of our special "Harry Potter" series. And do make sure you tune in this time for that tomorrow night. Tonight, I'll be right back with your headlines.

END