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Microsoft Bid to Buy Yahoo; Dozens Killed in Double Suicide Attack in Baghdad; Clinton and Obama Polite in Debate

Aired February 01, 2008 - 09:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. Welcome to the CNN NEWSROOM. I'm Tony Harris.
BETTY NGUYEN, CNN ANCHOR: Yes, good morning, everybody. I'm Betty Nguyen in for Heidi Collins today. You can watch events come into the NEWSROOM live on this Friday, February 1st. Here's what's on the rundown.

Do you Yahoo? Well, Microsoft does. It is making a $44 billion, with a B, play for the Internet portal. Will Wall Street say Yahoo?

HARRIS: Nice.

Baghdad's calm shattered by a double suicide attack today. Dozens killed in the blood path.

NGUYEN: Also Clinton and Obama hunt for super Tuesday voters following the polite debate on CNN. Making nice. Right here in the NEWSROOM.

HARRIS: OK. Let's get started this morning. Breaking news involving a big name in technology. Actually two. Microsoft makes a multibillion dollar bid for Yahoo. Both companies struggling to compete with Google, the powerhouse search engine.

Senior business correspondent Ali Velshi live from New York.

Ali, I heard you say not too long ago this is huge.

ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Yes. You know, honestly, Tony, this is going to be one of those days that we look back at in five, ten years as a real change in the history of business. We are looking at -- take the three companies involved here -- Microsoft, Google, and Yahoo.

Google is bigger than so many other companies combined and it really has started to eat into Microsoft's business. Microsoft needs a way to compete with that particularly in the area of search. Yahoo! has been a very strong company but just not doing what Google is doing. It needs somebody else. So Microsoft today makes a $44.6 billion bid to buy Yahoo.

Now let me just tell you how that breaks down. If you were a Yahoo! shareholder at the close of business yesterday, those shares were worth $19.18. This bid values them at $31 a share.

HARRIS: Whoa.

VELSHI: That's a 62 percent premium. So Microsoft is saying we mean business. We're not sort of giving you 5 percent extra to sell your shares to us. This is a big deal. Those shares are trading in pre-market trades at that level. They are trading at almost $31 which means investors think this is serious.

Microsoft in its press release said, without naming Google, they were saying there is one sort of leader in this industry and Microsoft and Yahoo! together can be competitive. So Microsoft making an admission...

HARRIS: Absolutely.

VELSHI: ...that they need to do this.

HARRIS: Well, and they're also saying with this bid, a 62 percent premium on the close of the stock market yesterday?

VELSHI: Yes.

HARRIS: That -- look, we are going to -- this is a knockout blow. We don't want a whole bunch of competition here.

VELSHI: That's right.

HARRIS: We want this done and we want it done quickly.

VELSHI: And that's a good point because Yahoo! is in that catbird position where it hasn't done very well in the last few years. But everybody knows the name. Everybody knows where to go for it. So it could be attractive to lots of other companies. Microsoft has one thing and that's a lot of money. They're saying we are coming in with a serious bid for this thing. Right now it's an unsolicited offer.

HARRIS: Yes.

VELSHI: We've just heard from Yahoo. They're saying they're going to review this offer. And we expect to hear from them soon.

HARRIS: You think they're going to review the offer? Of course, they will.

And Ali, jobs. The jobs report is in for January and it's not particularly great news.

VELSHI: Yes. When you look at it initially you will see the unemployment rate actually dropped from 5 percent to 4.9 percent. Most people will think that's a good thing. But here's the thing you have to look at. Jobs -- job creation is important. We -- many economists say we need 100,000 new jobs a month just to keep in track with the in crease in the working age population.

We lost jobs in January. They were down 17,000. That's very bad news. As I always talk to you about, Tony, whether it's house prices or mortgages or energy prices, nothing matters as much as your income. HARRIS: Yes.

VELSHI: If you think that you might lose your job, that's when you put the credit card back in the wallet and say hang on.

HARRIS: Wow. There he is. "Minding Your Business," first thing out of the gate this morning.

Ali Velshi, Ali, great to see you. Thank you.

VELSHI: You too.

HARRIS: You know, it's an icon of technology really but what is Yahoo! and how did it begin? Some background for you now. Yahoo! was founded in 1994. It started as a hobby by two Stanford PhD students. According to the company history the Web site was initially called "Jerry and David's Guide to the World Wide Web."

Did you know that?

NGUYEN: That's a mouthful.

HARRIS: Boy. The company was incorporated in March of 1995 and went public in April of 1996. Yahoo! provides online services for consumers and businesses ranging from Internet searches to shopping and entertainment. The company says it has 500 million users worldwide and 12,000 employees.

NGUYEN: The CNN presidential debate, only two Democrats, seemingly one mission, and that's to make nice.

Hillary Clinton and Barack Obama shelled the sharp attacks that heated up their latest faceoff. Instead the mild-mannered candidates traded soft cordial jabs on a few platform issues, the Iraq war, health care and immigration. But as for heat, well, they celebrated one shared target. That's the Republicans.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: With all due respect, we have a president who basically ran as the CEO/MBA president and look what we got. I am not too happy about the results.

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I don't think the Republicans are going to be in a real strong position to argue fiscal responsibility when they've added $4, $5 trillion worth of national debt. I am happy to have that argument.

(END VIDEO CLIP)

NGUYEN: Both also praised former rival John Edwards who dropped out of the race earlier this week.

HARRIS: Super Tuesday voting just four days away now. The countdown clock is getting louder. Why is the anger getting quieter?

CNN senior political correspondent Candy Crowley looks at the Democrats' apparent truce.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice over): Mr. and Mrs. Nice showed up on stage in Los Angeles where it seemed they came not to bury but to praise each other.

OBAMA: I was friends with Hillary Clinton before we started this campaign. I will be with friends with Hillary Clinton after this campaign is over.

CLINTON: The differences between Barack and I pale in comparison to the differences that we have with the Republicans.

CROWLEY: Getting real, it was their last debate before the critical contest super Tuesday so they did launch missiles, particularly on the subject of Iraq. She played her experience card.

CLINTON: It will be important, however, that our nominee be able to present both a reasoned argument against continuing our presence in Iraq and the necessary credentials and gravitas for commander in chief.

CROWLEY: But after she tried to explain her yes vote on the Iraq war, Obama went after her with a reminder that he opposed the war from the start.

OBAMA: Senator Clinton, I think, fairly has claimed that she's got the experience on day one. And part of the argument that I'm making in this campaign is that it is important to be right on day one.

CROWLEY: He suggested she was AWOL on putting together an immigration bill. She shot back that she worked on immigration before he got to the Senate. She said his health care bill was inadequate because it didn't cover everybody. He said hers was unworkable because you can't force people to buy health care insurance.

Still both campaigns had clearly decided that five days before super Tuesday was a time to put the best foot forward, making for a high-stakes and low-volume evening.

WOLF BLITZER, CNN MODERATOR: Senator Clinton, that's a clear swipe at you.

CLINTON: Really?

OBAMA: I wouldn't call it swipe. I think...

CLINTON: We're having, we're having such a good time.

OBAMA: We are having...

CLINTON: Yes, we are. We are. We are having a wonderful time.

OBAMA: Absolutely. CROWLEY: They debated in the Kodak Theater where they give out the Oscars for best actor and best actress.

Candy Crowley, CNN, Los Angeles.

(END VIDEOTAPE)

NGUYEN: Well, it was a bloody morning in Baghdad. Two mentally disabled women strapped with bombs and detonated. At least 64 people killed.

Take you live now to CNN to Arwa Damon in the Iraqi capital.

Arwa, what learned about these women?

ARWA DAMON, CNN CORRESPONDENT: Well, Betty, as you just mentioned, according to the spokesman for the Baghdad security plan both of these women were mentally disabled and both of them had their explosives detonated remotely. Both of the attacks also were carried out in popular pet marketplaces at a time when these areas would have been at their busiest.

It is Friday which is the weekly Muslim holiday. And families, individuals tend to flock to these markets right around the time when the explosions took place. The first happening at 10:30. It was the deadliest killing at least 46 people. The second coming about a half and hour later. That attack killing at least 18.

Now, Baghdad, the capital, has enjoyed a period of relative calm with the death tolls among civilians decreasing significantly as of September. But this morning's violence really a brutal reminder of what lies ahead. The dangers that are still out there. And also, dashing many Iraqis' hopes that just maybe the worst has been left behind them - Betty?

NGUYEN: You know, Arwa, when we the situation, the suicide bombers, it's usually men. How unusual is it for it to be women this time around and mentally unstable women at that?

DAMON: Well, Betty, it's very rare that we see female suicide bombers here, although it has happened in the past. At the end of last year, there were four female suicide bombers that carried out their attacks in Diyala province, just north of Baghdad. And then about a year ago there was another female suicide bomber that exploded outside of a university.

However, according to the U.S. military they are saying that this increase in female suicide bombings is quite simply because the ongoing intense combat operations had decreased a pool of men available to carry out such attacks and the terrorist groups are increasingly trying to train up women.

This is also an insurgency as we very well know that is notorious for trying to exploit weaknesses. And at these marketplaces, for example, what we do see is that many of them have blast walls around them to try to prevent vehicles from coming inside. There are body checks that also do take place there. However, often women are not searched quite simply because there are not enough females within the Iraqi security forces.

What we have is a clear example of the insurgency exploiting a weakness within the security system here and continuing to terrorize the population.

NGUYEN: Yes. One of the security system will change because of that.

Arwa Damon joining us live today. Thank you, Arwa.

HARRIS: Well, lovely pictures. But we are talking about a really ugly, ugly situation for millions of Americans getting hammered by fierce winter storms. In Washington state, for example, 15 counties are under a state of emergency right now, Betty.

After storms buried major roads and interstates under mounds of snow, avalanche is also a real threat. One measured 400 feet long and 30 feet deep in spots. Another brutal storm system in the Midwest to talk about. Heavy snow blanketing several states. Hundreds of flights have been canceled. More than 600 alone at Chicago's O'Hare airport. Can't tell you what that does to the system.

At least four deaths blamed on this dangerous storm system.

NGUYEN: All right, Tony. Look who is getting an up-close look and feel of this wintry...

HARRIS: OK.

NGUYEN: ...mix out there in hardest hit St. Louis. Check them out. CNN's meteorologist Reynolds Wolf. Seems like we always send you to the hardest-hit areas.

HARRIS: He has spent in time in that city.

NGUYEN: Yes, he has.

HARRIS: Yes, he has.

REYNOLDS WOLF, CNN CORRESPONDENT: Yes. I was here for about a year, about, let's see, 13 months, two weeks and a couple of days. And I'll tell you, this is really the where it's not usual to have winter-like weather and that's certainly the case of what we found here just over the last 24 hours.

Right behind me, you see the trademark of the city, the beautiful arch built back in the 1960s. If you drop back a little bit, you'll see the Basilica of St. Louis. This was actually once a log chapel, though. It's established back in 1770, some well over 200 years.

Now I'll tell you, back in 1770, there are a lot of things they didn't have including snow plows to help move the snow. That's what we have here, obviously, in St. Louis. Take a look at this video showing you - them getting out yesterday afternoon, last night, and of course, this morning. These trucks are working around the clock, compliments of the Missouri Department of Transportation, city services throughout there. And these men and women were working so hard to keep these roads in great shape and then certainly what they did - hats got to go off to them. Great job at handling the snow.

Now if you'll come back to me and you follow me over here, I'm going to take you out by the streets. From what you can see here a lot of cars have been going by with really no problems. Still Missouri Department of Transportation is advising people that if you are to get on the road, by all means, don't do it. We do have a lot of schools closed all across the metropolitan area. The kids are going to be enjoying the snow today. And drivers, although the snow is moving off and towards parts of Midwest into parts of the northeast, too, they are going to be left with pretty slick conditions on the roadway.

So people are advised to really be careful. If you have to get out, it's going to be a nasty commute coming in and certainly going home, it's going to be icy on parts of 64 and I-72.

Now coming up, Jacqui Jeras is going to have the very latest on your weather forecast which includes not only snow in places like Chicago and into Detroit. But we're talking about a major ice storm that could be affecting parts of New York including Syracuse. It is going to be a big mess as we get into the weekend.

Let send it back to you.

NGUYEN: Yes. That's important to know because as we have been reporting four people have been killed and blamed on these storms.

HARRIS: That's right. That's right.

NGUYEN: Reynolds Wolf, stay safe out there. Stay warm. We will talk with you shortly.

REYNOLDS: You bet.

HARRIS: Well, let's do that. Let's get the update, the very latest information. Jacqui Jeras standing by for us in the severe weather center.

Good morning, Jacqui.

(WEATHER REPORT)

NGUYEN: Well, we do want to give you this reminder. If news is happening where you are, send us your video or your photos. All you have to do is go to CNN.com and click on "i-Report" or type "i-Report" at CNN.com into your cell phone.

But remember, always stay safe.

HARRIS: So how about this? The city refused so a good citizen installed his own crosswalk.

(BEGIN VIDEO CLIP)

WHITNEY STUMP, MUNCIE RESIDENT: I just this I did what's right. I think the city should do what's right. I don't want to make a big deal out of this.

(END VIDEO CLIP)

HARRIS: But the city did. Guess where he ended up?

(COMMERCIAL BREAK)

NGUYEN: Welcome back, everybody. I'm Betty Nguyen. You are in the CNN NEWSROOM.

Ethnic attacks. A full-force situation in Kenya as the U.N. chief adds his voice to calls for calm. We have an update ahead.

(COMMERCIAL BREAK)

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

NGUYEN: Unfolding this morning, pumping up the pressure to stop Kenya from just spiraling into civil war. U.N. Secretary General Ban Ki-moon now in Nairobi. He is appealing the government and opposition leaders to resolve the crisis through dialogue.

Crisis talks are being mediated by former U.N. chief Kofi Annan. But there is no letup in the violence. A disputed presidential election which has sparked the bloodletting has pitted one tribe against another. It's left more than 800 people dead and a quarter million displaced in just over a month.

Well, Kenyans in the U.S. are watching the crisis at home with horror. I'm going to talk with the Kenyans studying in Georgia about what's happening. That's next hour.

HARRIS: And news about your security now. Remember the bold suicide bombing in Afghanistan during Vice President Dick Cheney's visit last year? Well, the major al Qaeda terrorist believed to have directed that attack has been killed.

Here's CNN's Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN CORRESPONDENT (voice over): The news hit jihadi Web sites in waves. Abu Laith al-Libi, an al Qaeda commander, is dead. One site hailing him as a martyr proclaims, "May God accept him." Intelligence officials describe al-Libi as a senior field operative most recently blamed for orchestrating a suicide bombing outside of Bagram Air Base in Afghanistan while Vice President Cheney was visiting.

UNIDENTIFIED MALE: From al Qaeda's perspective the attack was a propaganda victory but it was not a military success. ARENA: Perhaps more important were al-Libi's efforts to recruit in Libya where he was born and where it is estimated at least 20 percent of foreign fighters in Iraq come from. As leader of the now defunct Libyan Islamic fighting group, his connections there ran deep.

BRUCE RIEDEL, FORMER CIA OFFICER: The al Qaeda central leadership, Osama bin Laden, and his key lieutenants, see North Africa, what they call the magrab, as a great opportunity their future expansion.

ARENA: It's important to note that knowledgeable sources say al Libi was killed in north Wairistan in Pakistan. He's the first senior al Qaeda official captured or killed there since 2005.

RIEDEL: U.S. has been pressing Pakistan very hard. Our senior intelligence leadership was there in January and pushed Musharraf very hard to do something about this resurgence of al Qaeda and we may be seeing a result today.

ARENA: Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: I got a story for you. A fugitive on the run for three decades.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: When we took him into custody his family had no idea who he was. They didn't know his prior name. They had no idea of his history.

(END VIDEO CLIP)

NGUYEN: Can you believe it? Secret past exposed. That's in the NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: All right. Let's talk presidential candidates, shall we? The field grows narrower. The impact goes deeper. So we are recognizing this diverse group making their mark.

First up, Rudy Giuliani and John Edwards have stepped down. John McCain steps up as the GOP's frontrunner. Rival Mitt Romney lashes out. And the remaining Democrats buddy up. Yes, Hillary Clinton and Barack Obama were downright friendly in their CNN debate last night.

So this week a relatively easy choice to recognize those making their mark and maybe in the running next week when super Tuesday will shape the race even more.

HARRIS: You know, all he wanted to do was to make his street a little safer. So he painted him a crosswalk and himself into a corner.

Ray Cortopassi of affiliate WRTV has that story.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: At some point you got to knock it off. And he just wasn't getting it so we charged him.

STUMP: I don't want to make a big deal out of this.

RAY CORTOPASSI, REPORTER, WRTV (voice over): All Whitney Stump wanted was a crosswalk on his Muncie corner for safety reasons. When the city didn't give him one he painted one himself. That was in July. He was immediately charged with criminal mischief.

(On camera) Do you feel like an activist here? Do you feel like you're doing something for the greater good?

STUMP: I feel like it is something for the greater good. But I just think I did what's right. I think the city should do what's right.

CORTOPASSI: You don't think he was defacing property?

UNIDENTIFIED FEMALE: Heavens, no. I told him to do the other three.

STUMP: I initially sprayed it well.

CORTOPASSI (voice over): When he dusted it up a few weeks later, a Muncie officer gave him a warning. Prosecutor's office unbeknownst to Stump decided to charge him again. Stump was then arrested a second time Sunday because he missed his court appearance and sat in jail for 10 hours.

Muncie police wouldn't go on camera but point out regarding the second arrest, Stump was not arrested because he was painting the street on August 1st, 2007. Stump was arrested on a warrant for failure to appear.

MARK MCKINNEY, DELAWARE COUNTY PROSECUTOR: He'd been ordered to appear in court and you don't, you're going to jail when we find you.

CORTOPASSI: Prosecutor McKinney adds there is a valid complaint against Stump.

MCKINNEY: Was there any kind of study done on foot traffic, I mean, there's all kinds of considerations that have to go into this. What if somebody walks into that crosswalk and gets hit? What's the result of that? I mean, there is a certain danger that is presented by just throwing up a crosswalk wherever you want to put a crosswalk.

(END VIDEOTAPE)

HARRIS: Yes, OK. WRTV reports the Muncie mayor's office is looking into the circumstances surrounding the crosswalk controversy.

NGUYEN: Now That's an opener there. HARRIS: Yes. Yes.

NGUYEN: How about this though? Double dipping. Is it just like kissing? I don't really like it when people do that? It's not the kissing, but the double dipping. You know, you just don't know where that kiss has been. Eyes open at the Super Bowl party. We've got the latest on all this.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN, the most trusted name in news. Now back to the CNN NEWSROOM.

HARRIS: Say hello to everyone, Betty.

NGUYEN: Hello, everybody, on this Friday, February 1st. You hear the bell ringing. But first we want to introduce ourselves. Good morning. I'm Betty Nguyen in for Heidi Collins.

HARRIS: I'm Tony Harris in the NEWSROOM. Here's the thing today. We really have to be careful watching the markets today. OK. So the Dow closed up yesterday at 207 points. Great. So we begin the day at 12,650. A lot of news to watch today. Obviously what is the market likely to say, how's the market likely to react to the news Microsoft is entering into this bid to buy Yahoo at a 62 percent premium over the close of Yahoo stock yesterday. Okay. We are watching that. There's also a jobs report that is a bit problematic. We are watching the markets throughout the morning with Poppy Harlow and Susan Lisovicz right here in the NEWSROOM.

NGUYEN: Tony, you've got it all down. In fact, I'm going to tell you a little bit more about what Tony was telling you just minutes ago. Microsoft's message to Yahoo, let's make a deal and a really big deal. Yes, the developing story this morning, Microsoft making unsolicited bids by Yahoo for almost $45 billion. If the deal goes through, it could reshape the internet consumer services business. Microsoft is trying to become more competitive with Google, the powerhouse search engine. The deal would pay Yahoo shareholders $31 a share. That is a 62 percent premium over the stock's closing price yesterday.

HARRIS: OK. More on this now. Will tax stock investors say hooray to Microsoft's bid to buy Yahoo? We are watching to see how the markets react this morning. CNNMoney.com's Poppy Harlow live from the NASDAQ market site.

Poppy, good morning to you. What are your thoughts on the deal and how the market may respond today?

POPPY HARLOW, CNNMONEY.COM: Good morning there, Tony. We have seen a strong open from this deal here at the NASDAQ. Up just a bit. Yahoo shares up 50 percent at the open. That's huge. As Betty just explained, this offer from Microsoft is at a 62 percent premium, valuing Yahoo shares at $31. I can tell you now Yahoo shares are trading at almost $29. That's up from their close of just about 19 spots yesterday. This is a massive deal. Microsoft on the phone with the shareholders this morning, trying to get their take on it. Yahoo issuing a statement that they, in fact, have received this unsolicited bid saying the board of directors will evaluate the proposal and come back with a quick response. This couldn't come at a better time for Yahoo. The stock has been under pressure seeing declines in profit for the past eight quarters. That's for the past two years. Also, you know, Google, this couldn't come at a worse time for Google, Yahoo's main competitor, disappointing earnings earlier this week. Seeing a lot of competition, Yahoo was from Google. This could really shake things up. This will go down in history as a huge day for the tech sector as a whole.

HARRIS: When Microsoft, Poppy, comes in with an offer at this level of a premium, isn't the message to Yahoo's board, the stockholders, let's do this, let's do it now and close the deal?

HARLOW: I think that's definitely the message the CEO over there at Microsoft saying basically, you know, we want to get this done. Also, saying that the talks have been going on and off for about 18 months. There were talks late 2006, early 2007. Microsoft did make somewhat of a bid for Yahoo. Rejected it at that time. But now this bid expected by many on Wall Street to go through.

Also talk that Google approached Yahoo just a few months back. Saying listen, lost the race. Let us take you over. Rumors about that going on. Looks like it could happen with Microsoft. A lot of competition going on here. We will have to see. Maybe we will see a bid from Google for Yahoo. We will see.

HARRIS: Wouldn't that be something? Really heat up the tech sector right now. Poppy, I know you will be following this. Are you going to be writing something about this?

HARLOW: We will be following it all day. Our videos are up all day on CNNmoney.com. We will be here at the NASDAQ all day following this. People can log right on.

HARRIS: There she is. CNNmoney.com's Poppy Harlow for us this morning. Love saying the name. Thank you, Poppy.

HARLOW: Thank you, Tony.

NGUYEN: Talk now about the CNN presidential debate. The anger toned down. Democrats teamed up. Hillary Clinton and Barack Obama traded few barbs last night and instead have focused their sharpest attacks on the republicans. There were few jabs, though, on the platform issues such experience and the U.S. invasion against Saddam Hussein.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: There were legitimate concerns about what he might do. So I think that I made a reasoned judgment. Unfortunately, the person who actually got to execute the policy did not. SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Senator Clinton I think fairly claimed she has the experience on day one. And part of the argument that I'm making in this campaign is that it is important to be right on day one.

(END VIDEO CLIP)

NGUYEN: Both candidates also praise fellow democrat John Edwards who dropped out of the race earlier this week.

HARRIS: Let's talk about this debate. Short on drama but how did it rate on the dial? As you may recall, we have undecided voters scoring the candidates' responses by twisting a dial. How did they rate last night's performances? CNN's Chris Lawrence shows us.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT: The candidates declared a cease-fire in their civil war and our undecided democrats responded.

CLINTON: Just by looking at us you can tell that we are not more of the same. We will change our country.

LAWRENCE: There were a few mild attacks. But Barack Obama nose dived and criticized Hillary Clinton's health care plan.

OBAMA: Hillary says that she's got enough subsidies. We priced out both our plan and Senator Clinton's plan. And some of the subsidies are not going to be sufficient.

LAWRENCE: And what he calls her flip-flop from giving driver's licenses to illegal immigrants.

OBAMA: Senator Clinton gave a number of different answers over the course of six weeks on this issue. That did appear political. At this point she's got a clear position.

LAWRENCE: Voters liked his leadership style. When talked about being a president and not afraid to accept help.

OBAMA: Part of what I would like to do is restore a sense of what is possible in government. That means having people of the greatest excellence and confidence. It means people with integrity. It means people with independence who are willing to no to me so that, you know, no more yes men or women in the white house because I'm not going to be right on every single issue.

LAWRENCE: Clinton was asked why can't you say you made a mistake to authorize the Iraq war. She kind of avoided a direct answer. Voters were unimpressed.

CLINTON: You try to figure out how to move bad actors in a direction that you prefer in order to avoid more dire consequences.

LAWRENCE: Dial testers preferred a more direct answer.

OBAMA: We should not have had this government installed in the first place. We shouldn't have invaded in first place.

LAWRENCE: Clinton got some of her highest marks when she took pot shots at the republicans.

CLINTON: And you know it did take a Clinton to clean up after the first Bush. And I think it might take another Clinton to clean up after the second.

(END VIDEOTAPE)

HARRIS: OK. Some analysts say there was a clear winner of the first one-on-one debate between Clinton and Obama. They say the Democratic Party which may appeal to undecided voters turned off by angry personal sniping.

NGUYEN: Listen to this story. 1975 Gerald Ford was president. Moviegoers screamed at "Jaws." Disco dancers were doing the hustle. Well, 1975 was also the last time Jack Hazen was seen until now. Reporter Bob DeNinnis of affiliate KVVU has the story.

(BEGIN VIDEOTAPE)

BOB DENINNIS, KVVU: The family of 61-year-old Charles Free not in the mood to talk. Metro police say the man they know as Charles Free, a husband, father and grandfather is actually Jack Hazen, arrested for armed robbery in 1975, escaped from a Florida prison in 1976. Then --

UNIDENTIFIED MALE: Came to Las Vegas anywhere from 23 to 25 years ago. He married under the name of Free. He had been working here for approximately 23 years in the home construction business. When we took him into custody his family had no idea who he was. They didn't know his prior name. They had no idea of his history. They just knew him as a hard-working tax paying citizen in the valley.

PATRICK ATHERLY (ph), NEIGHBOR: A total shock to me. I had no idea. Who does?

DENINNIS: Close friend and neighbor Patrick Atherly, says for 15 years he lived across the street from the man he believed to be Charles Free, a clean-cut, quiet, good guy who worked construction and was the first person to offer a hand when he moved in.

ATHERLY: Never had any of the slightest indication that he was hiding anything. He was always straightforward with me and up front. That's the way he was.

DENINNIS: Jack Hazen did lie to his friends and family for more than 20 years, changed his social security number and became another person. Patrick says recently the 61-year-old was diagnosed with cancer and MS. With more than seven years left on his sentence and an additional charge of escape, the last years of Charles Free or Jack Hazen could very well be spent behind bars.

(END VIDEOTAPE) NGUYEN: Las Vegas police say they got a tip about Hazen from a Florida cold case detective. Hazen had been serving a sentence for armed robbery when he's escaped from prison.

HARRIS: New information today on the massive fire at the Monte Carlo Casino in Las Vegas. The Associated Press quoting fire officials as saying the blaze was caused by flying molten metal. They say the metal came from handheld cutting torches. They were being used by workers who did not have permits. The Associated Press says the officials are considering citing the contractor. Thousands inside evacuated the 32 story hotel last Friday. No one fortunately was injured.

NGUYEN: Latest the weather outside. A mess in many areas. Welcome to Friday.

JACQUI JERAS, AMS METEOROLOGIST: Yes. I know it. Hopefully there aren't a lot of people trying to get away for the weekend because travel is going to be rough going whether you go along the interstate or going by the airways, numerous delays, numerous cancellations and even an interstate partially shut down due to some of the freezing rain in Pennsylvania.

We will start you out on the snow side of things. Things are winding down a little bit here in Chicago. Look at the intensity of the snow going on across lower Michigan. Detroit, you just got out of a very heavy snow bend. We have a live picture to show you out of the Southfield area. And you are looking at the interstate there. You can see visibility is kind of poor. The interstate looks just on the wet side. One to four inch across town which has already fallen. You remain under a heavy snow warning. As we get on the back side of the system we can see more snow showers redeveloping in the afternoon. Be aware of that. A lot of warnings in place. There you can see all of that in the red. Then the advisories down here into the light blue where we are not expecting the accumulation to be quite so bad.

In the northeast, it's that freezing rain and ice. Look at all the pink on the map from upstate New York through much of Pennsylvania and then down through the Appalachian chain. Want to zoom in along interstate 78 now. About halfway in between Harrisburg and Allentown, 78 right here is closed due to accident. A truck flipped over there. A dangerous situation. Also, numerous reports of accidents along i-81 as well. There you can see the ice storm warning where we think the ice will be accumulating so heavy, guys. It could be accumulating on trees, power lines, and bringing them down. You may be dealing with power outages going on later on this morning.

NGUYEN: Man, oh man. It sounds like it is getting worse out there. Okay. Thank you, Jacqui.

HARRIS: From forecast to forecast. OK. Jacqui, thank you.

A big Sunday showdown. Not the Patriots versus the Giants. The ad wars. Veronica De La Cruz ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK) NGUYEN: Talk about a reality check. All right. So before you dip that chip at this weekend's Super Bowl party, you better look around. Is there a double dipper in the room? You could end up sharing germs with that person. A Clinton researcher looked into whether double dipping could be a health hazard and he got the idea from a "Seinfeld" episode.

UNIDENTIFIED MALE: Dip the chip, took a bite, and you dipped again.

UNIDENTIFIED MALE: So.

UNIDENTIFIED MALE: That's like putting your whole mouth right in the dip.

NGUYEN: I agree. So do researchers. It is true according to research. A lot of bacteria gets spread around. Like kissing everyone at the party. I know there are plenty of people at the party that you don't want to kiss. Make sure you don't double dip or dip from a bowl that's been double dipped into.

HARRIS: Word. The Super Bowl is more than a football game. It's, you know, a commercial competition. The stakes are high with companies shelling out, what, $2.7 million for a 30-second TV spot. Veronica De La Cruz takes a look at how the web is helping advertisers stay on top of their game. Veronica, good morning.

VERONICA DE LA CRUZ, CNN CORRESPONDENT: Good morning. You are not a double dipper, are you?

HARRIS: No, no. No. No! Never ever.

DE LA CRUZ: Tony, OK. Moving on.

HARRIS: Yes.

DE LA CRUZ: That's good news. We are hearing this, Tony, may be the most interactive, the most wired Super Bowl to date. Why is that? It is because advertisers, Tony, are trying to get the most bang for their buck and the internet is the perfect place to achieve that, usually for no extra cost. It's really common for commercials to be leaked online like Pepsi's much talked about silent ad. We are looking at it here. It runs about 60 seconds with no sound. The add is based on a joke that's popular with the deaf community, create quite a stir which is exactly what the advertisers are looking to do.

HARRIS: That said. They want the buzz. I'm curious. Are you noticing any other trends out there with the ads this year?

DE LA CRUZ: Yes. We are also seeing shortened versions like teasers of the actual commercials. We will take a look at one from Fed-Ex. The advertisers want to get people enough so that they are looking out for this commercial during the game. Gatorade did the same thing with its G2 commercial featuring Yankee superstar Derek Jeter. You can find all of these commercials all over the internet, Tony. We also found this prequel to the Sobe Life Water commercial. This one is at Mtv.com. In it, a lizard tries to explain to his parents that he landed a gig dancing nude in the Super Bowl ad.

UNIDENTIFIED MALE: No, actually I'm dancing.

UNIDENTIFIED FEMALE: Oh, my god. I'm going to be sick.

UNIDENTIFIED MALE: What the hell are you talking about dancing naked on television?

UNIDENTIFIED MALE: Dancing with a supermodel.

UNIDENTIFIED MALE: Stop. Your mother is throwing up with her head in the oven.

UNIDENTIFIED MALE: Dad, it's not just me. It is going to be about 30 of us guys. We're all naked.

UNIDENTIFIED FEMALE: Who wants to see you naked anyway?

UNIDENTIFIED MALE: I know what I'm doing.

UNIDENTIFIED MALE: Sure do you.

HARRIS: That's good. That's good.

DE LA CRUZ: We will keep an eye on that one. The supermodel he's talking about is Naomi Campbell.

Something else going on online, Tony, I want to ask you about. I submitted a song for the Super Bowl contest. Didn't you? It was -- was it "Baby Love" by the Supremes, was that you?

HARRIS: I'm totally being set up.

DE LA CRUZ: We have your audition. No, we really don't.

HARRIS: Good.

DE LA CRUZ: Listen. These types of ads are not new but these interactive ads have been growing in popularity. Doritos has been asking band singers. The original song. Voters logged on and chose their favorites. The winner song will be airing during a commercial during Super Bowl. Pay attention, you may see Tony singing "Baby Love" by the Supremes. Just kidding.

Budweiser bought seven spots for a total of four minutes. They are going interactive giving people a chance to see an exclusive commercial on their cell phone.

If you want weigh in on your favorite Super Bowl commercial, everybody is watching for the ads. There are lots of websites out there that will let you vote online. Adbowl.com lets you print out a ballot online. You can play along with your friends and come back on Monday to see who won. You can keep go to our own website, favorite website, CNN.com and place your vote there. I'm going to have those results for you Monday on "AMERICAN MORNING."

HARRIS: That's great. We always love to do that. Talk about the ads on Monday after the Super Bowl. Who wasted their money.

DE LA CRUZ: What's your favorite all-time ad? Do you have one?

HARRIS: Wasss up?

DE LA CRUZ: Mine, too.

HARRIS: I was on the set with Betty and was singing and didn't realize I was being recorded. I can't live that down.

DE LA CRUZ: I didn't want to say anything but pay close attention on Sunday.

HARRIS: Lord.

DE LA CRUZ: I did enter it in the Dorito's contest.

HARRIS: The segment is over.

DE LA CRUZ: Thank you.

HARRIS: Here is a reminder. You can Veronica on "AMERICAN MORNING" weekdays, 6:00 to 9:00 a.m. eastern time.

NGUYEN: Want to talk about a labor of love for a Beatles fan.

UNIDENTIFIED MALE: It was a long and winding road but we got there in the end. We are really excited.

NGUYEN: It is a place to sleep like a log after a hard day's night.

(COMMERCIAL BREAK)

NGUYEN: Beatles fans who make the pilgrimage to Liverpool now have a place to get their golden slumber. CNN's Phil Black reports.

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN CORRESPONDENT: The Beatles and Liverpool, a relationship that began with the burst of history's greatest rock band and continues with tourism. Now Beatles pilgrims have somewhere appropriate to stay. This is the Hard Day's Night Hotel. Everywhere you see George, Paul and Ringo; their music, even their own artwork. The logo is the opening guitar cord to hard day's night, a suspended G-7. The restaurant is named for the guy that named the sergeant pepper's album cover. These are all the people that are on it. The wedding chapel features photos of the band members and some of their wives. And members of the fab four watch over every bed. Beatles memorabilia and trivia everywhere. It is a hard-core fan's dream. But whatever you do, don't call it kitsch.

UNIDENTIFIED MALE: I think it's very tastefully done. Any Beatles fan would be proud of it.

BLACK: Hotel management insists it is not a shrine. MIKE DEWEY, GENERAL MANAGER: We have tried every opportunity to get the point across that this isn't a cheap, tacky, cheesy themed hotel. It is a four-star hotel with a twist.

BLACK: Around the hotel, there are pictures that reflect on their individual careers. You will find a replica of Lennon's piano. The one made famous in the song "Imagine." The suit of armor is a tribute to Sir Paul's knighthood. It cost $1,300. Regular rooms start at $340. The hotel idea came to the man who runs the nearby Cavern Club, a replica of the venue where the Beatles first played. He's been working like a dog for 15 years to make it happen.

BILL HECKLE, CAVERN CLUB: It's been a long and winding road I'd suppose you'd say but we got there in the end. Now we are really excited.

BLACK: The surviving Beatles have not officially blessed or blocked hotel. They decided to let it be. Phil Black, CNN, Liverpool, England.

(END VIDEOTAPE)

HARRIS: Microsoft's strategy, buy Yahoo swish Google. Will the plan work?

(COMMERCIAL BREAK)

HARRIS: So taking time now to remember a shuttle disaster. It was exactly 5 years ago this morning shuttle Columbia broke apart over Texas. It happened just minutes before landing killing all seven crew members. NASA is holding a memorial service at the Kennedy Space Center this morning. The tragedy, as you may recall, forced NASA to re-evaluate the insulating foam on the shuttle and grounded the program for nearly three years.

NGUYEN: Good morning. I'm Betty Nguyen in today for Heidi Collins.

HARRIS: And I'm Tony Harris. Here's what's on the rundown. Senators Clinton and Obama call off the angry attacks ahead of Super Tuesday. The CNN debate ends with a hug?

NGUYEN: There is a new push to stop the killing the Kenya. This hour, a personal story from a Kenyan student in the U.S.

HARRIS: Virtual online banks, is your money really safe? Our personal finance editor Gerri Willis answers your e-mail today, Friday, February 1st.

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