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Market Madness; Heath Ledger Autopsy Inconclusive; Battling for Veterans: McCain in Florida; Getting out of Gaza

Aired January 23, 2008 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: Wide awake, that's what we are here in the NEWSROOM.
Good morning, everyone.

I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Hi, everybody. I'm Heidi Collins.

Developments keep coming in to the CNN NEWSROOM on Wednesday, the 23rd day of January. Here's what's on the rundown.

Stocks head towards bear territory today. Will tax rebates help calm investors? Maybe another interest rate cut? Questions for our guests.

HARRIS: Gaza exodus. We're live along the border. Thousands of Palestinians stream into Egypt for food and medicine.

COLLINS: Initial autopsy results a short time ago. What killed actor Heath Ledger? The early findings in the NEWSROOM.

So, here we are, an hour and a half into the trading day. Are you watching the stock market right now? We hope you like roller- coasters.

Susan Liscovicz, tracking the ups and downs of the Dow this morning. Ali Velshi is aboard the CNN Election Express talking about the economy.

Look at these numbers. That's actually a bounce back from where we were just a few short minutes ago.

Let's start with Susan.

Susan, got a question for you. Did the Fed panic with this rate cut yesterday? The idea being here better to have one really, really, really, really bad day than to drag it out over several.

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: That's an excellent question, because, Tony, I feel like I'm being killed by a thousand paper cuts. Every single day I'm giving you a damage report. And frankly, a lot of folks -- we've been through this ride before, Tony, you and I, where you have a capitulation. You just flush out all the excess in the system.

HARRIS: Yes.

LISOVICZ: And there is excess. Remember, just three months ago, the Dow industrials were at an all-time high in spite of the fact that the housing market was in the dumps, the fact that consumer spending was already a little shaky, and we were seeing very high oil prices.

So, there is excess, and it's not pretty. And sometimes what you want is one big precipitous sell-off to get us to a level where you can build from there.

Now, to your question about the Federal Reserve, did the Federal Reserve panic, well, that was a big question because a lot of critics have been saying, well, the Fed is behind the curve. The Fed should be -- with all of its wisdom, it should see what's going on. And last week was an excellent week in which to gauge the seriousness of the problem.

We got multiple damage reports, and we did have some benign inflation reports. So, people were -- investors were asking, why not last week? Why were you waiting until Asia and Europe were selling...

HARRIS: Yes.

LISOVICZ: ... off so steeply that you were just going to try to reassure the markets? And obviously, it didn't reassure them as much as the bulls would like.

What we're seeing today, of course, is the continuing fear of recession, Tony. And, you know, every day you have multiple parties weighing in on it. Today we have the Congressional Budget Office, which says -- it says that the slowing economy will contribute to the budget deficit.

It's predicting a $250 billion budget deficit. It sees weak growth, but growth. No recession.

And by the way, it doesn't even include that stimulus package. Right now we're talking about a $150 billion stimulus package. That's not even factoring that in, and that obviously would not help a deficit -- Tony.

HARRIS: Wow. So much to talk about. So much to actually digest.

There she is on the floor of the New York Stock Exchange, Susan Liscovicz for us.

LISOVICZ: I'll be back.

HARRIS: And we'll continue to follow the numbers.

Absolutely. All right, Susan. Appreciate it.

LISOVICZ: Like "The Terminator."

COLLINS: The initial autopsy results are back, but we still don't know why up-and-coming actor Heath Ledger died so young. He was 28 years old.

CNN's Jason Carroll is following developments now from New York.

Hi there, Jason. What's the latest on the investigation?

JASON CARROLL, CNN CORRESPONDENT: And hello to you, Heidi.

Because the initial autopsy that was completed this morning, because the results were inconclusive, the medical examiner cannot say what caused the actor's death. And that means Ledger's fans will have to wait to hear why their favorite actor died.

(BEGIN VIDEOTAPE)

CARROLL (voice-over): A tragic end of a promising acting career captured by a crowd of paparazzi. Outside a New York City apartment building, Heath Ledger's fans gathered outside as well, some still in shock over the loss.

UNIDENTIFIED FEMALE: I'm a mess. I've been crying all day. I just -- I can't believe something would happen to someone so talented and...

UNIDENTIFIED MALE: He's a great actor. I mean, he had the potential to be a fantastic actor. So to do so many things, it's just sad to see how it ended, you know?

CARROLL: It's not clear yet just what caused Ledger's death. A fire department spokesperson says Ledger died of a possible drug overdose, but police would not speculate on the cause, only to say there was no indication of suicide. 28-year-old actor's body was found by a housekeeper and a massage therapist around 2:45 yesterday afternoon.

DEPUTY COMMISSIONER PAUL BROWNE, NEW YORK POLICE: He was found facedown on the floor at the foot of the bed.

UNIDENTIFIED MALE: Face down.

UNIDENTIFIED FEMALE: And he was naked, sir?

BROWNE: He had no clothes, correct.

CARROLL: The housekeeper and therapist tried to revive Ledger but could not. Paramedics arrived at the fourth floor Soho apartment around 3:30 and pronounced him dead. Police say they found several bottles of prescription medicine in the apartment, including sleeping pills found near the actor's bed.

(BEGIN VIDEO CLIP, "BROKEBACK MOUNTAIN")

JAKE GYLLENHAAL, ACTOR: You gonna do this again next summer?

HEATH LEDGER, ACTOR: Well, maybe not.

(END VIDEO CLIP, "BROKEBACK MOUNTAIN") CARROLL: Ledger is perhaps best known for his Oscar-nominated role in "Brokeback Mountain." And while his career was a success, privately the actor struggled. Recently, Ledger had broken up with actress Michelle Williams whom he met while filming "Brokeback." The two have a baby girl. In the actor's hometown of Perth, Australia, the star's family tried to make sense of the loss.

KIM LEDGER, HEATH LEDGER'S FATHER: He was a down-to-earth, generous, kind-hearted, life-loving, unselfish individual who was extremely inspirational to many.

(END VIDEOTAPE)

CARROLL: You can see Ledger's fans continue to leave flowers and cards and candles in front of his apartment here in Soho. We are being told that it could take up to two weeks before the medical examiner completes all the testing that needs to be done -- Heidi.

Such a sad story.

All right. CNN's Jason Carroll for us from New York City.

Thank you, Jason.

HARRIS: The battle for veterans. John McCain is hoping the formula that helped him win South Carolina will work in Florida.

CNN's John King now, part of the best political team on television.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): For John McCain, northwest Florida is full of memories...

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: How proud I am to have gone through pilot training here.

KING: ... and full of what a Navy pilot and prisoner of war turned politician might call targets of opportunity.

MCCAIN: From here to Key West, Florida, it's one of the most patriotic states in America. And that's why I'm very proud...

(CHEERING AND APPLAUSE)

MCCAIN: And that's why I'm very proud to be here.

KING: Veterans made the difference in McCain's narrow win Saturday in South Carolina and could be even more influential here; 1.7 million veterans call Florida home, second only to California.

MCCAIN: This is a critical issue.

KING: The struggling economy is the campaign's dominant issue. And, at every stop, McCain answers Republican critics who challenge his fiscal conservatism.

MCCAIN: We need to make the tax cuts permanent. Otherwise, every business and every family in America are going to experience a tax increase.

KING: Social conservatives also have doubts, so this on the 35th anniversary of the Supreme Court decision legalizing abortion.

MCCAIN: .. tell you I'm proud of those judges to the bench that strictly interpret the Constitution of the United States and do not legislate from the bench.

KING: But McCain's overriding theme is national security experience, a pitch he hopes sway fellow veterans in a state rich in military installations and traditions.

MCCAIN: This is a transcendent evil we are facing. And I want to tell you right now, we will never surrender. We will never surrender. They will. I know how to lead. I know how to defeat them.

(APPLAUSE)

KING: The appeal takes many shapes: promises to improve veterans health care.

MCCAIN: That's what I'm going to do for our veterans. And they deserve it.

KING: McCain is the son of an admiral and the only leading presidential candidate in either party with children who has served in the military. One son is in Iraq, the other at the Naval Academy. They get a mention in almost every Cindy McCain introduction.

CINDY MCCAIN, WIFE OF SENATOR JOHN MCCAIN: I want my sons back, like everybody else. But I want them back having done their duty and with honor and in dignity and, most of all, in victory.

KING: The senator himself rarely mentions his sons, but, at 71, 50 years after he was first stationed here in Florida, often makes a personal appeal.

J. MCCAIN: My dear friends, as president, I would like to serve this nation a little while longer.

KING (on camera): In South Carolina, 25 percent of those who voted in the Republican primary describe themselves as veterans. And among those voters, Senator McCain beat his closest rival, Mike Huckabee, by more than 10 points. Now, looking ahead to Florida, the McCain campaign believes the percentage of veterans could be even higher, and they take this view -- the more veterans who vote, the better the senator's chances.

John King, CNN, Fort Walton Beach, Florida.

(END VIDEOTAPE) (WEATHER REPORT)

COLLINS: Want to tell you about this story now, a human flood, if you will. Palestinians leaving Gaza by the thousands.

The dramatic day in the Middle East. We are live along the border coming up.

(COMMERCIAL BREAK)

COLLINS: Doors wide open. Tens of thousands of Palestinians rushing into Egypt after a border wall was knocked down at the Rafah crossing.

CNN's Aneesh Raman is joining us now on the telephone.

Aneesh, I know you're not quite at the border yet because you actually got stopped en route. What happened?

ANEESH RAMAN, CNN MIDDLE EAST CORRESPONDENT: Yes. Exactly, Heidi.

We're about half an hour away out of a six-hour drive from Cairo to Rafah. And for a number of hours during the day today, the Egyptian government was barring journalists in Egypt from actually getting to the site of the border crossing. They subsequently reversed that decision, and as I mentioned, we're now about a half hour outside of Rafah.

It is there where we have seen since early this morning dramatic images of thousands upon thousands of Gazans pouring across the border into Egypt, desperate for supplies after a week where they've essentially been cordoned off after months where they've had international sanctions cordoning them off. They desperately crossed into Egypt.

And the question now -- and the estimates, Heidi, are 50,000, which is what the Egyptian Foreign Ministry is saying.

COLLINS: Wow.

RAMAN: Other estimates are putting it much higher. We understand there are still thousands of people who are coming in.

The Egyptian military during the course of the day has been beefing up their presence at that border crossing, trying to bring some control. Because, Heidi, the big issue for Egypt is, at one level they're saying they're going to keep this open as long as there's a humanitarian crisis. There's a lot of empathy in Egypt for the Palestinians, but Egypt has diplomatic agreements with Israel.

Israel has big security questions about what's happening here, an open border into Hamas-controlled Gaza. So, Egypt right now is balancing between the two. But, again, thousands upon thousands of Gazans showing how desperate their situation is today, coming into Egypt and buying whatever they can to survive -- Heidi. COLLINS: Wow. To say it's a delicate situation is probably an incredible understatement.

Aneesh, I know there are also some pro-Palestinian demonstrations going on in Cairo?

RAMAN: Yes. A little bit of an oxymoron.

The Egyptian government today saying it wants to express its sense of brotherhood with the Palestinians, yet in Cairo, at least two protests in support of the Palestinians. The Egyptian government arrested as many as 500 demonstrators. This is from opposition activists who are at these rallies.

They were essentially being brought together just to show support for the Palestinian government, but it shows you -- I'm sorry -- the Palestinian people. It shows you the hard hand though that the Egyptian government still maintains and why many people say that President Bush hasn't been critical enough about Egypt in a rollback of rights that has happened over the past few years -- Heidi.

COLLINS: Wow. All right.

Well, CNN's Aneesh Raman following this story for us. A very interesting story, indeed.

Aneesh, we will get back with you later should anything new develop there.

HARRIS: All right. Let's get back to your money and the economy.

An emergency rate cut plans to boost the economy, not enough to calm the stock market madness. It has been a roller-coaster so far today.

David Weidner covers Wall Street for marketwatch.com, and he is with us from "The Wall Street Journal" studio in New York.

David, great to see you.

All right. Let me hit you with a couple of them right out of the gate here. Did the Fed panic yesterday with its rate cut? The thinking being better to have one really, really bad day than to drag this thing out over days and maybe weeks here.

DAVID WEIDNER, MARKETWATCH.COM: Right. Well, I don't know, Tony, if they panicked, but the market thinks they panicked, and that's probably more important.

You didn't see the market rally. It did sort of soften the blow.

We were expecting maybe a 400-point drop yesterday. It did that initially, but the rate cut did help sort of soften the blow. It was only down 100 or so points. You know, there's a couple of reasons why people are reading into panic, this move. And the first one is that this was an emergency meeting in reaction to what was happening in foreign markets.

HARRIS: Yes.

WEIDNER: The second thing is the size of the rate cut, at three- quarters of a point, something we haven't seen in two decades.

HARRIS: Right.

WEIDNER: And today we're finding that the decision is being undermined a little bit more. Europeans central banks aren't following suit. They're saying they're going to hold the line on inflation, not cut rates. So there's a kind of -- the Fed is kind of out there naked on its own, and it looks as if they're reacting rather than guiding the economy.

HARRIS: Yes.

Hey, David, do you expect further cuts next week at the regularly scheduled meeting?

WEIDNER: I think we could -- I think if we continue to see the market slide, I think there will be another...

HARRIS: Twenty-five, 50 basis? What do you think?

(CROSSTALK)

WEIDNER: I'm sorry?

HARRIS: Twenty-five, 50 basis points? What? What do you think?

WEIDNER: Well, I would think that it would not be as drastic as the cut we saw yesterday.

HARRIS: So what's your guess? What range?

WEIDNER: Well, I think economists are talking about another quarter point.

HARRIS: Another quarter point?

WEIDNER: Yes.

HARRIS: Wow.

All right. So what do you make of the selling that's going on today? We're anywhere from 200 down at the open. We bounced back from session lows right now. We're about, oh, somewhere between 90 or 100 down.

What's going on today? Why the selling today?

WEIDNER: Well, this is that European Central Bank move. HARRIS: Yes.

WEIDNER: You know, there's been this tension about holding the line against inflation. You know, because we've seen prices across the globe go up as the demand across the globe is increasing from places like China and India.

So, I think that, you know, there was this tension, and Ben Bernanke is feeling it.

HARRIS: Yes.

WEIDNER: You know, he wants to cut rates to help the credit crisis on Wall Street, but there's this holding the line against inflation, you know.

HARRIS: Got you.

WEIDNER: Consumers are going to be on the other end of this.

HARRIS: Hey, David, what do you want to see in an economic stimulus package?

WEIDNER: Well, I think that what we saw yesterday or -- I'm sorry -- earlier from President Bush was clearly not enough, because the market obviously didn't rally on that news. They wanted to see something bigger and stronger. And they wanted to see -- you know, here's another case of panic, where the president rushes back from an overseas trip. And I think that, you know, it was what economists were talking about, but I think Wall Street wants to see something more.

HARRIS: Yes.

What do you think -- are you of the notion that, let's put together an economic stimulus package that includes government jobs programs, hiring more people, or do you want to see cash in hand?

WEIDNER: Well, you know, I'm -- I'm -- I think -- you know, personally, I think a broad-based approach is probably, you know, a little bit of everything.

HARRIS: A little bit of everything.

WEIDNER: It will help, yes. But the thing is, is that at this point, we're talking about mitigating a recession. I think that it's clear that, you know, the Fed has signaled that, you know, things are not heading the right way. So, let's try to soften the blow and keep that bottom a little bit higher than it might be.

HARRIS: Do you see interest rates -- I'm talking about getting a 30-year fixed somewhere. I guess we're about 5.2 now. Do you see a rate cut next week impacting the mortgage markets even further?

WEIDNER: Yes. Well, you know, these rates, mortgage rates, are not directly tied to the Fed rate, but they do move in sympathy. HARRIS: Yes.

WEIDNER: So I think that you will see interest rates for consumers, mortgage rates, drop.

HARRIS: Credit cards and the like.

WEIDNER: I think -- you know, my feeling is, is that that if we are in a recession, you know, the experts always say wait it out and wait for some more rate cuts. I mean, I think we're headed in that direction.

And, you know, unless it's an obvious choice for a consumer right now, where they're going to make a whole point or something in regard to lowering their mortgage payments, then, OK. But the reality is that there may be more cults on the way. It might pay to wait a little bit.

HARRIS: Wow. All right.

David Weidner.

David, great to see you. Thanks for the advice. Thanks for conversation this morning. Helpful.

WEIDNER: Yes. Thank you.

HARRIS: Thank you.

COLLINS: Raising the red flag on too much red meat. Before you load up on steak, you need to hear from Dr. Sanjay Gupta.

(COMMERCIAL BREAK)

(NEWSBREAK)

COLLINS: Now a new reason to skip the burgers and steaks. A study says too much red meat can raise your chance of heart disease and diabetes. It finds middle-aged people who eat two serves of meat a day increase their risk of metabolic syndrome by 26 percent.

I talked earlier with Chief Medical Correspondent, Dr. Sanjay Gupta, about metabolic syndrome.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: When you talk about the risk of heart disease, there's often a sort of cluster of symptoms that put you at greater risk for heart disease. People point to blood pressure, they'll point to increased cholesterol. But if you have this sort of syndrome of symptoms -- you can take a look at the list there -- obesity, high blood pressure, high sugar levels, abnormal cholesterol levels, these things together, collectively, put you at higher risk. And, you know, you have to sort of take this as an aggregate. The question is, what puts you at higher risk of developing the syndrome in the first place? And as you pointed out, Heidi, it's an interesting question -- how much meat is too much? Well, they say having two servings of meat a day actually puts you at 25, 26 percent greater risk of this metabolic syndrome.

You know, it's one of the most common questions we get is, how much is too much of anything? Having more than two servings a day does increase your risk.

I should add as well, Heidi, in all fairness, that fried foods, for example, as you might expect, increase your risk of metabolic syndrome. Diet soda increases your risk of metabolic syndrome as well by about 34 percent. They're not quite sure why.

It could be because people who drink diet soda also have unhealthy eating habits otherwise. Who knows? But there are things that increase your risk. And it's important to take note of how much is too much.

COLLINS: I feel like you're calling me out because you know I have that steak and Diet Coke.

GUPTA: Right. But you look great. I don't think you have it.

COLLINS: Oh, right, right, right.

Well, seriously, though, are there benefits of eating the red meat that you really can't get in other foods? I mean, I'm thinking of iron, right?

GUPTA: Yes. Yes, absolutely.

And I think, you know -- and one of the things we always talk about is that you find certain thresholds where things are going to start to become more problematic or put you at higher risk. But it's not to say to abstain completely from some of these foods.

You're right, iron can be a huge value when it comes to red meat -- protein, as well, obviously. It can be -- dairy in general can be a great tool in terms of maintaining your weight if you do it appropriately.

So, B-12 is something that people start to lose levels of as they get older. Red meat can be a great source of that. But as with everything, don't overdo it. And when we say that now, we can say, look, don't have two servings a day. That's simply too much. Cut back a little bit.

(END VIDEOTAPE)

COLLINS: The National Cattlemen's Beef Association criticizes the study as limited. It says frequent consumption of lean beef is part of a healthy, dietary pattern.

To get your daily dose of health news online, logon to our Web site. You'll find the latest medical news, a health library and information on diet and fitness. That address is CNN.com/health.

Good morning once again, everybody. 11:30 Eastern time now. I'm Heidi Collins.

HARRIS: And I'm Tony Harris.

The initial autopsy results are in, but it's still not clear what caused Heath Ledger's sudden death. A medical examiner says more tests will be done. Ledger's body was found in his New York apartment yesterday. Police are looking into the possibility that he died of a drug overdose. Ledger was one of Hollywood's rising stars. In 2006, he was nominated for an Oscar for his role in "Brokeback Mountain" and he just finished filming the latest "Batman" movie due out this summer. He plays the Joker. Ledger has a two-year-old daughter with ex-girlfriend Michelle Williams.

And for a look back at Ledger's life, check out CNN.com's "SPECIAL REPORT." You can also sound off with your thoughts on the late actor or send or view i-Reports from across the world. All that at CNN.com.

COLLINS: Afghanistan, an insurgent offensive looms and more U.S. troops are on the way. The latest from the U.S. commander there.

(COMMERCIAL BREAK)

COLLINS: Afghanistan, sometimes called the forgotten war. Not today. Just moments ago, an update from the commander of U.S. troops there. Here to tell us a little bit more about it, retired Major General Don Shepperd. He is one of our CNN military analysts.

General Shepperd, I know you got off this phone call with Major General David Rodriguez. He had this operational update. You say there were actually some surprising things that were said.

MAJ. GEN. DON SHEPPERD (RET.), CNN MILITARY ANALYST: Yes, there really are, Heidi. You know, if you follow the U.S. media, you get the impression that the Taliban are really resurgent and on the move and conducting fairly large-scale operations, on the advance if you will. When you talk to the military commanders in Afghanistan, that is not the impression you get. What we hear from them is that the Afghan army is coming up to speed much, much faster than the Taliban. Every time they encounter the Taliban, they are winning.

Now, you're still going to have the suicide bombers and the attacks and what have you, but they are very optimistic about the future prospects for Afghanistan. Of course, Afghanistan is also tied to stability in Pakistan, and of course the tribal areas remain a sanctuary right now for training of the Taliban ...

COLLINS: Yes.

SHEPPERD: ...forces. So, there's lots of problems to be solved over there before you can say, hey, we won.

COLLINS: What are they attributing this increased training, if you will, or increased understanding of the training of the Afghan army? Because obviously, we're well aware of more troops being sent over from the U.S. They are going to do more training.

SHEPPERD: Yes, indeed. They will provide some additional combat capability if needed, but there are 3,000 marines being sent over from the Marine Expeditionary Unit. They will be providing the military capability to both train the Iraqi security forces, the army, and also the police. As in any society, the police are the long-term key to stability and confidence in the government.

So, a lot of effort is being put into training these police. And just like in Iraq, it's slow at first, and then it gains speed, and also, the police training is normally a year or two years behind that of the army. So again, what I hear is very encouraging from the army -- or from the military troops that I talk to over there as opposed to what we are hearing as a general consensus in the media.

COLLINS: Well, there's another thing that you heard a lot about in the media, and that were some of the comments that were made by Defense Secretary Gates in the "L.A. Times," in fact. And here's what he said specifically.

"I am worried we're deploying military advisors that are not properly trained and I'm worried we have some military forces that don't know how to do counterinsurgency operations."

Were there discussions of NATO's role in all of this?

SHEPPERD: The discussions in this particular conference call didn't center on NATO, but there's always tension between NATO countries, NATO rules of engagement between countries and what have you, it's always very, very difficult.

Those statements by Secretary Gates kicked up a storm because what he was talking about was the general theory that, you know, we train troops in all nations for combat, we don't train them necessarily just for insurgency warfare or just for mountain warfare or just for bad weather warfare. And so, when you get to places like Afghanistan, it takes a while to come up to speed.

And so, these were general comments not meant to criticize any nation over there. But anytime you have a combined operation of forces from various countries, you're going to have problems in learning how to work together, who's in control, who's in command, and different rules for different countries.

COLLINS: Yes, well, and different theater. What will it take for the U.S., though, in your opinion, if you could pinpoint a few things, to achieve their goals in Afghanistan?

SHEPPERD: I think a couple things. One is stay a long time, which is always a problem for us, and second is to concentrate on civic action. Getting kids in schools. Getting the infrastructure fixed. Getting roads, gaining control of the area, getting the police up to speed. The solution, again, as always in a war, is not military, it's the aftermath of the war and how you rebuild the society and the confidence of the people and the government, and it's tough in this country and it's really tough in Afghanistan, Pakistan, and Iraq, Heidi.

COLLINS: All right, CNN's military analyst, General Don Shepperd. Appreciate your comments, as always. Thank you.

HARRIS: On the FBI's Most Wanted list, a marine murder suspect seen south of the border. CNN's Harris Whitbeck has our exclusive report.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): It didn't take long to pick up Cesar Laurean's trail in Mexico. A copy of his birth certificate gave us addresses for his parents and grandparents in a Guadalajara suburb of Zapopan. Neighbors pointed us to a liquor store owned by his cousin, Juan Antonio Ramos Ramirez.

(on camera): (SPEAKING SPANISH).

(voice-over): Have you been in touch with your cousin lately, yes?

"Yes, he came by to visit just the other day," he said. "About a week ago," he said, when we pressed.

(on camera): (SPEAKING SPANISH)

(voice-over): We showed him a picture of Laurean, and he confirmed he was his cousin. Ramos said he did not know at the time Laurean was wanted on murder charges in the United States. He said his cousin was with three or four friends. Laurean told him he was just on a short visit.

Maria Guadalupe Sanchez runs a small shop next door to the house where Laurean grew up. She knew him when he was a little boy. When we showed her a copy of his name on the FBI's Most Wanted list, she couldn't believe it.

MARIA GUADALUPE SANCHEZ, FORMER NEIGHBOR (through translator): That boy, no, no. I'd never have expected him to end up in something bad. And no one we talked to in this neighborhood had been asked about Laurean by any local or federal police.

(on camera): In fact, few had even heard Laurean is a fugitive. The FBI wants to put his picture on matchbooks and flyers and distribute them all over this region. But a week after he was last seen, no one knows whether he's still here.

Harris Whitbeck, CNN, Zapopan, Mexico.

(END VIDEOTAPE)

COLLINS: Keeping them honest. Both Hillary Clinton and Barack Obama making accusations, but are they accurate?

(COMMERCIAL BREAK)

COLLINS: Guns at the airport. One of the latest incidents, a West Virginia man made it through security at Reagan National Airport with a loaded firearm on Sunday. He said he forgot about the gun and went back to security and told them. He was charged with a misdemeanor. A TSA spokesman says screeners find on average two guns a day at U.S. airports. Fourteen were discovered just last week.

(BUSINESS HEADLINES)

COLLINS: Jim Clancy is standing by now over at CNN International right here in just what is it 15 minutes, Jim, "YOUR WORLD TODAY" begins.

JIM CLANCY, CNN ANCHOR: Just about 15 minutes. Hope you can join us at the top of the hour, "YOUR WORLD TODAY." We're going to be looking closely at the situation in Gaza. Hundreds of thousands of Palestinians pouring into Egypt this day, some of them shuffling back again after Hamas blew a hole in the border wall. Egypt says they're allowed in because they're starving. We're watching it closely. It could lead to a much sharper conflict. We've got correspondents in Egypt, as well as there in Gaza.

Also, we're watching the markets, you know, as well, Susan Liscovicz helping us. Is it looking calmer out there or is it just more resigned? We're going to have correspondents all over the globe for this one. We'll take you live to Davos, Switzerland. the U.S. secretary of state is going to weigh in at the World Economic Forum.

Plus, no easy answers. We'll get you the latest findings from police on the untimely death of actor Heath Ledger, and we'll get reaction from the streets of New York, to his family in Perth, Australia. All that waiting for you at the top of the hour. Join us.

COLLINS: It's really a sad story. All right, Jim, thanks so much.

Hillary Clinton and Barack Obama taking shots at each other. But are they on target?

CNN's Joe Johns is keeping them honest.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT (voice-over): One of the first thrusts came from Barack Obama, as he compared what he was doing in the 1980s with what Senator Clinton was doing at the time.

OBAMA: While I was working on those streets watching those folks see their jobs shipped overseas, you were a corporate lawyer sitting on the board of Wal-Mart.

JOHNS: Hillary Clinton did serve on Wal-Mart's board for six years, earning more than $18,000 a year. And Wal-Mart is one of those companies some folks love to hate because of the company's aversion to organized labor and claims that the company treats workers harshly, claims the company denies.

She says she promoted environmental issues, diversity, and involvement of women, but disagreed with many company policies, even gave back its campaign contradiction contributions.

She didn't explain that at the debate. Instead, she hit back, contrasting her battle against Republicans with how he started his legal career.

CLINTON: And I was fighting against those ideas when you were practicing law and representing your contributor, Resco, in his slum landlord business in inner city Chicago.

JOHNS: OK. Let's unravel that.

Here's what Obama says.

OBAMA: I was an associate at a law firm that represented a church group that had partnered with this individual to do a project. And I did about five hours worth of work on this joint project. That's what she's referring to.

JOHNS: Hold on. He left out a lot, too, especially about this guy, Tony Resco, Illinois fixer, real estate developer, friend of important people in Illinois.

UNIDENTIFIED FEMALE: Resco is less known as a slumlord than he is as a political power broker and someone who has very craftily infiltrated Illinois politics.

JOHNS: Resco raised tens of thousands of dollars for Obama, which the senator is now giving to charities. Resco has been indicted for fraud and attempted extortion.

(on camera): Obama also got drawn into controversy over Resco because of a questionable land deal. When he bought a house in Chicago, Resco's wife bought part of the same property on the same day. Obama has said everything was above board and legal, but concedes it was a mistake. Obama's name has not come up in the investigation. And he's not accused of wrongdoing.

(voice-over): One of the debate's low points came when Clinton made a sweeping assertion about Obama's record, and the crowd let her have it.

CLINTON: Senator Obama, it is very difficult having a straight- up debate with you, because you never take responsibility for any vote, and that has been a pattern.

You, in the -- now, wait a minute. In the Illinois state legislature...

(AUDIENCE BOOING) JOHNS: Here's the issue. Obama voted present nearly 130 times out of nearly 4,000 votes back when he was in the Illinois legislature, not the U.S. Senate. His opponents charge, he was weaseling out of tough votes. He says it was political strategy.

OBAMA: Oftentimes, you'd vote present in order -- in order to indicate that you had problems with a bill that otherwise you might be willing to vote for.

JOHNS: Experts we've spoke with in Illinois said voting present there is a pretty common tactic, especially when the bill is guaranteed to pass.

Joe Johns, CNN, Washington.

(END VIDEOTAPE)

HARRIS: Well, you know, they'll always have an amazing connection, but now they're leading separate lives. Once conjoined, these 2-year-old twins are showing off their solo moves.

(COMMERCIAL BREAK)

HARRIS: You know, it was a difficult beginning for a set of Costa Rican twins. They were joined at the chest and abdomen. Now their doctors say they are healed and ready to live separate lives. Here's Daniel Villareal, of affiliate KRON.

(BEGIN VIDEOTAPE)

DANIEL VILLAREAL, KRON CORRESPONDENT: Formerly conjoined twins Fiorella and Yurelia made their grand entrance at Packard Children's Hospital Tuesday afternoon as separated and healthy twin sisters. The Costa Rican twins were born conjoined at the stomach and chest. They shared a liver and parts of their hearts were connected. In November of 2007 they underwent the risky separation surgery at Lucile Packard Children's Hospital. The doctors involved in the surgery are calling the procedure a huge success.

DR. GARY HARTMAN, SURGEON: The girls are doing well. They have healed. They have had all of the procedures that we think they're going to need to have.

VILLAREAL: Hartman, who led the separation surgery team, also spoke about his personal connection to the case and his anxieties had the surgery not gone as well as it did.

HARTMAN: My great fear was that months or years from now, if things didn't work out, would the family look at those pictures and look at their sisters and point to me and say, that's the man who took our sisters, that's the man who took our daughters.

VILLAREAL: But just looking at this footage of the lively twins as they played in the hospital lobby on Tuesday, they appeared to be healthy and happy. And with the help of a translator, the mother of the twins repeatedly gave her thanks to those involved. MARIA ELIZABETH ARIAS, MOTHER OF TWINS (THROUGH TRANSLATOR): I feel very happy and very content because my girls were born anew in this hospital.

VILLAREAL: Doctors are now saying the girls will soon return home to Costa Rica once the medical teams involved agree they are fit to return.

(END VIDEOTAPE)

HARRIS: Well doctors at Stanford's Lucille Packard Children's Hospital donated their time for the surgeries and treatments. The cost estimated at $2 million.

COLLINS: Making the Mini Cooper look almost maxi. The Smart ForTwo car rolls out on U.S. roads. We'll take a test-drive.

(COMMERCIAL BREAK)

COLLINS: Not great for eight, but it's smart for two. Take a look at this. It's the name of the world's smallest car. It's making its debut in the U.S. this year. The model measures eight feet long, five feet wide. What's under the hood? A 71-horsepower engine, anti- lock breaks and electronic stability control. It's got some zip, too. Tops out at about 90 miles per hour, that's if you peddle.

HARRIS: Yes.

COLLINS: And fuel economy, 41 miles a gallon on the highway. Start price, around $11,600.

HARRIS: All right.

COLLINS: Tiny.

CNN NEWSROOM continues one hour from now.

HARRIS: "YOUR WORLD TODAY" is next with news happening across the globe and here at home.

I'm Tony Harris.

COLLINS: I'm Heidi Collins. Have a great day, everybody.

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