Return to Transcripts main page

CNN Newsroom

Maryland Father Outsmarts Kidnappers; White House Speaks About Israel/Palestinian Conflict

Aired December 29, 2008 - 10:00   ET

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

RICHARD LUI, CNN ANCHOR: The other air assault. A Hamas rocket hits Israel. Israeli war plane pounds Gaza. This hour live updates on the new Middle East crisis and your money heading their companies. The first installment of the auto rescue loan goes out.
I'm Richard Lui in for Heidi Collins this morning. It is Monday, December 29th. You are in the CNN NEWSROOM.

Our top story, a ceasefire expired and violence escalates in the Middle East. Israel's defense minister calls it all-out war with Hamas. That's the Palestinian militant group that controls Gaza. Now Israel's tanks are moving toward the border. Its war planes pounding Hamas targets for a third day.

Israeli leaders say the raids are aimed at stopping Hamas rocket attacks from Gaza. There have been more than 40 so far today. Palestinians are saying more than 300 people have been killed so far, more than 650 wounded. The United Nations wants the attacks to stop right now.

The area we're talking about is slightly more than twice the size of Washington, D.C.. Gaza as you see in the middle of your screen is wedged between the Mediterranean Sea and southern Israel and shares a seven-mile border with Egypt. Since the 600s it's been controlled by various Arab groups, Israel and the British. Well Israelis not allowing any journalist to cross into Gaza. CNN's Paula Hancocks is as close as you can get though, right on the border there with Gaza. Paula, what are you seeing right now as I see the sun has gone down.

PAULA HANCOCKS, CNN CORRESPONDENT: That's right, Richard. Dusk is falling here. Probably we're about half mile from the actual border itself. Now certainly, we have been seeing rocket attacks from Palestinian militants into Israel. We've also seen continued Israel air strikes into Gaza. You can see Gaza city just in the distance there. You can probably just see a few lights now.

So these rocket attacks, the air attacks have been going in both directions all day. So Israel's goal of stopping the rocket attacks has not yet been achieved. Now as these air strikes are increasing, we are seeing the death told increase. As you say, more than 300. And I think that's actually a red alert in this particular area now. We're hearing rockets coming in. Get down.

We're hearing them coming in from Gaza where we are at this point. I'm not going to tell you where we are exactly. But it's about half a mile from the border itself. We heard one land shooting in that direction. So we'll be hearing whether there have been any casualties. This is an area that is often hit by sand rockets, whether or not there are air strikes going on or not. So certainly this particular area is constantly listening out for that loud speaker saying red alert in Hebrew -- Richard.

LUI: So Paula, you had that loud alert and then instantly that explosion right next to you. Do you need to run for cover right now? And we can get back to you later? OK. Paula Hancocks there at the border with Israel.

HANCOCKS: No, I think we're OK. It takes 15 seconds basically or probably 10 seconds from that loud speaker when they see the kazan (ph) being launched to when it actually hits ground.

So I think we're pretty much out of danger, because they saw that kazan being launched. We got drones in the air, getting this information. The second they know that a kazan or the kind of rocket has been launched, they give the information all around. That's when you hear the loud speaker saying red alert. And you can see how close we are to Gaza here because instantly, you hear the landing of the rocket as well.

These sort of communities around here have having to been dealing with these rocket attacks for the past seven years. And this is why Israel says it's carrying out these air strikes. I mean, we're just here for one day and we see the rockets landing.

But these kind of communities have been dealing with this for seven years. And this is why Israel says it has to try to take out the Hamas installation. But you got to remember, this air traffic - this air rockets and attacks are going both ways. We are seeing substantial air strikes in Gaza.

There's still one and a half million residents inside Gaza who are having to try and cope with these constant air strikes, no matter how careful Israel is, going for the Hamas installation. Specifically, it is incredibly densely populated and civilian casualty happen (ph). We just heard from the U.N. agency in Gaza actually. They reckon around 62 civilians have been killed in Gaza. And that's a conservative estimate. Richard.

LUI: Paula Hancocks is as close as you can get to Gaza, right there on the border with Israel and Gaza underneath the fire. And we just saw that. Absolutely keep safe. And thank you so much for that, Paula.

From his Texas ranch, President Bush has yet to come out and talk about the renewed attacks. But through statements his administration puts the blame for it all squarely on Hamas. Let's go to CNN White House correspondent Elaine Quijano in Crawford.

What can you tell us right now, Elaine, in terms of what you're hearing from the Bush administration?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, as you noted, the Bush administration is making very clear it's siding with Israel in this latest conflict saying that it is Hamas' actions that have essentially provoked this response. Now President Bush himself, we haven't seen him since Friday.

That's when he arrived here in Texas aboard Air Force One. We haven't seen him all weekend. But through his spokesman, again, making quite clear that the United States views this action on the part of Israel as justifiable self-defense, a response again to the Hamas rockets that we heard Paula Hancocks was talking about just a moment ago.

The President has been getting updates on the situation from his National Security adviser Stephen Hadley as well as U.S. Secretary of State Condoleezza Rice. He's been having those updates both by phone and through secure video conference.

At this point we are waiting to see whether or not the president will perhaps feel compelled that at some point if things should escalate, if he might feel compelled to come out and make a statement on camera. There are no indications of that right now. Absolutely no events on his public schedule.

We are anticipating a briefing here in about an hour or so with the White House spokesman, undoubtedly a lot of questions about what communication there has been between the United States and Israel and what the next steps might be on the part of the Bush administration.

Clearly aides are saying the White House is watching the situation over the next 24, 48 hours. Really a critical time period here to see what developments unfold. That will obviously factor into whether or not perhaps we will see the President at some point on camera. Richard.

LUI: White House correspondent Elaine Quijano, thank you.

As for the man who will be president, Barack Obama, he is being kept up to date on those crisis. Still in Hawaii. He has been on the phone with Secretary of State Condoleezza Rice. A transition aide say the President-elect appreciated the information, adding he will continue to closely monitor these and other global events. Now Obama has pledged to make Middle East peace a priority from day one in his presidency, which begins in just 22 days.

Just minutes from now, Nathan Brown, an expert on the Middle East joins us with his perspective on the escalating violence there and what it could mean to us here in the United States.

All right. We're going to take a look at the Dow. First, down 24 and change 25 and change move there. It was a little bit in positive territory. About 15, 20 minutes in, we're only of course 38 minutes into the trading day. We'll be watching that and what should be a light volume.

Cashing in on your money. Two automakers get the first installment of the auto bailout loan today. CNN's Christine Romans is in New York with the cost to all of us.

Hey, Christine.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi there. After all that arguing, all those politics, a failed bill in the Senate and in the White House riding to Detroit's rescue. Reluctantly really. $4 billion each for GM and Chrysler today from the Treasury Department, will be released. These are low interest loans and boy they come with a lot of strings.

First, here's how much you're lending to the car companies. Today, $4 billion each to Chrysler and GM and then on January 16th, GM gets $5.4 billion. That's billion with a "b." And then February 17th, $4 billion more to GM. That's, of course, if Congress says that it can do so.

But it looks like that all indications are it will get the money. In the end, it's about $17.4 billion to the car makers. And remember, Ford is not included here because Ford is in better financial health than the other two. And said that while it was good for its competitors to get a low-interest loan rescue package from Washington, it would not need some. So Ford is not included here.

Now let's talk about the strings quickly. These companies have to prove that they're on a path to viability by the end of March or the Treasury Department can ask for its money back. There are an awful lot of conditions that have to be met by the end of the year as well. So these companies have to prove that they're restructuring and that they are indeed on the road, sorry for the pun, to better health. And the government will continue to be a very large stake holder in these two companies.

Do economists think that this is enough money to save them? No. It gives them good breathing room here. And another point to make out as well is that some of this money will be coming from the T.A.R.P., the Troubled Asset Relief Plan that was at $700 billion Wall Street bailout, the Wall Street rescue package that were noted by many people that the strings attached to the Detroit rescue are much more detailed than anything it was attached to the banking industry bailout. So from here on out, we'll see whether this will be enough to help these companies get over the hump here in the very near future -- Richard.

LUI: Christine Romans in New York City with the latest there on the auto bailout.

Thank you.

Oh, snow. It's still a major problem in Washington state and, yes, there's plenty of it. As it piles up, it's knocking things down on top of cars, some roofs, and carports. Just can't handle the strain of all that weight. In the Midwest too, it is flooding. That's the issue there. The result of melting snow. In Northern Illinois, rivers are cresting. And the rising water is edging closer to the yards of homes close by.

Now over the weekend, some residents started sandbagging. And others just decided to evacuate. In Detroit strong winds did some serious damage there. Tree after tree blew right over smashing some homes. Of course, they had to clear all of those. Reynolds Wolf, will they get a reprieve from all of these?

REYNOLDS WOLF, CNN METEOROLOGIST: You know, they're going to get a big, big break in parts of Michigan in terms of the winds. However, you are still going to have some issues with flooding for some time to come. And one of the reasons why you're having flooding in portions of the Midwest is because of the unseasonably warm temperatures. If you look behind me, you will see the records that were set yesterday in Macon, Georgia, mid 70s. Same story in Norfolk, Virginia. Wilmington, North Carolina 76. Raleigh and Myrtle Beach, mainly in the 70s. And then something they experience up in parts of the East Coast. In fact New York at 65 degrees yesterday.

Now in parts of the south, expect another mild day. We got a live image for you. This is out of Memphis, Tennessee, compliments of WREG. Let's show you that shot that we have for you. Right along the banks of the Mississippi River. It looks pretty good. Cobalt blue skies. It's going to be a great day for you there. Again, farther to the north we have issues with those flood watches and we got plenty of them. In fact, as we go back to the weather computer, we're going to show you the area where you're going to have some issues. Chicago, watch out of that part of Michigan. And any place you happen to see, that's shaded in this dark green is where we currently have those warnings. Again, we have plenty of snow on the ground. Now we have those temperatures that are warming up. Boom, you have a transformation from snow to water. And we're going to see the waters continue to rise in many locations.

Back to the west, we still have some rainfall to deal with in Seattle. That's no big surprise. However, higher off, in parts of say the Cascades, snow's really going to pile up, some locations well over a foot between now and tomorrow. You'll notice also a lot of watches and warnings, advisories that are going to be popping up across the region. Again, the heaviest we're looking at will be in your highest elevations where we you have that cold air off. I'm saying, thinking 7,000 to 9,000 feet we have the moisture going up the side, the hillside, on top of the mountains. That's where it's going to pile up anywhere from 18 to 20 inches of snowfall.

Look out if you travel on parts of i-90 or along parts of i-5. The winds and that blowing snow could be a problem for you. Back over into the northern Rockies, and the central Rockies, anywhere from a foot to maybe a little bit more in a few spots. That is a quick wrap- up of your forecast. Again, busy times. Always seems to happy early in the week. And looks like this week will prove to be busy like this. Let's send it back to you.

LUI: Reynolds, it's the double digit time of the year.

WOLF: Certainly is.

LUI: 18 to 20 in all those double digits. Reynolds Wolf, thank you.

Violence half a world away, but felt here, too. Why you should care about what's going on in Gaza right now.

(COMMERCIAL BREAK) LUI: More on the violence going on right now in the Middle East as Israel continues its bombings campaign against Hamas. We are talking to an expert in Palestinian politics and society, Nathan Brown joins us from Washington with some perspective on what the attacks mean to the U.S. and to us here in the United States.

Nathan, good morning to you. And thanks for joining us.

NATHAN BROWN, PROFESSOR OF POLITICAL SCIENCE, G. WASHINGTON UNIVERSITY: Thank you.

LUI: Let me start by asking that very simple question. Some will describe the complexity of the Middle East as that of a micro processor. But let's simplify this, why is it important to us here in the United States?

BROWN: Well, the fighting that we're seeing going on right now, the Israeli assault on Hamas and Gaza is clearly not going to be the last round. What that means is that the incoming Obama administration will have to deal with a standoff between Hamas and Israel. That is going to be ongoing for some time to come.

That means anything that the Obama administration wants to do in the Middle East, whether Iraq, Iran, terrorism, trying to get people how to cooperate and all sorts of different issues is going to run up against a roadblock of the Israeli-Palestinian conflict.

LUI: You know, one concern, of course, is Homeland Security. Dial that into what is happening now in Gaza and Israel.

BROWN: Well I don't think that there's necessarily going to be a direct relationship. I mean certainly Palestinians in Gaza will probably hold the United States party responsible for the Israeli actions simply because the United States and Israel are so closely aligned. But they don't have the means to strike at the United States.

And Hamas is always its restricted actions towards Israel, not towards the United States. So there's not going to be a direct impact. What it does however I think is fuel a feeling in that part of the world, much of the Arab world that the United States is on the wrong side. And therefore it probably helps create an atmosphere in which radical groups can appeal to the society saying that the United States is our enemy.

LUI: If we look back here Mr. Brown to another conflict in 2006, with the Hezbollah-Israel conflict and war, not much was affected by the conflict or not much the United States was affected by that conflict. Some might saw what do we really have to worry about here?

BROWN: Yes, I think the Hezbollah - the war between Israel and Hezbollah in the summer of 2006 was in one sense similar. It involved a non-state Hezbollah against Israel. A state with an overwhelmingly military superiority but couldn't use that in an effective way. In one senses however this is different. The Israelis went against Hezbollah, sort of flailing with all kinds of military force, but without clear strategic objectives. This time they're a little bit more careful in saying why they're doing what they're doing. They're not trying to disarm Hamas. They're not trying to dislodge Hamas in Gaza. They're simply trying to negotiate a better terms of ceasefire with Hamas.

So what this means is that this is not going to be a one-shot deal. This is going to be an issue that continues to fester any kind of cease fire, even if negotiated, will only last for certain specified period. So the United States will find itself sucked into this conflict whether it likes it or not.

LUI: Well, Mr. Brown, let's end where we started. That is the issue right now. We're between presidents if you will. President Bush is a lame duck at the moment. Is Israel taking advantage of this period in between to enact strategy in Gaza that it might not do at other times?

BROWN: I think that there is a feeling in Israel that and among Palestinians that an incoming Obama administration may rethink some of the assumptions that have guided the Bush administration. They don't know how the Obama administration will come down. They don't know whether to look a lot more like the Bush administration or whether they will try an entirely new approach but their aim is to make sure that they negotiated ceasefire on the most favorable terms for them as the Obama administration comes in.

LUI: Nathan Brown, thank you so much. Senior associate from the Carnegie Endowment for International Peace, I appreciate your perspective on what is happening today and the importance to the United States. Thank you again.

BROWN: Thank you.

LUI: And this just in to us, coming from White House spokesman Gordon Johndroe. He is saying in a statement made off camera, at a briefing before it starts at 11:00 a.m. Eastern, he says, in order for the violence to stop, Hamas must stop firing rockets into Israel and agree to respect a sustainable and durable ceasefire. This is the objective to which all parties need to be working. He goes onto say that is what the United States is working towards.

So we are getting this paper statement from White House spokesman Gordon Johndroe ahead of his briefing that we expect to start at 11:00 a.m. Eastern. And of course, we'll have it right here for you to get White House's response to what is happening there in Gaza strip.

You know we're also taking a look right now for you at some of the protests against the Gaza bombing right here in the United States. People demonstrated against the attacks in Chicago, Texas, and Arizona. Josh Levs takes a closer look at the areas where the violence is also taking place for us. That is coming up. Stay around for that.

A researcher goes around the world to find out where people live the longest. And he's come back with some tips that could add years to your life.

(COMMERCIAL BREAK)

LUI: Where are people living longer? How can you extend your life? A research team traveled around the world to find the answers to these questions. CNN's chief medical correspondent Dr. Sanjay Gupta takes us to the blue zones.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): On the Nikoya Peninsula in Costa Rica, families are close, hard work is the norm and there is no such thing as retirement. Take this man, Avinzio (ph). He's 80, and still wakes at 4:30 every morning to work on this ranch.

DAN BUETTNER, FOUNDER, QUEST NETWORK, INC.: This 80-year-old has the vigor of a 40-year-old.

GUPTA: Dan Buettner and his research team have found Avinzio and other men here 60 and older are four times as likely to reach 100 as compared to their counterparts in the United States or Europe. Buettner travels to longevity hot spots around the globe. He calls them blue zones.

BUETTNER: Because most of longevity is dictated by a lifestyle as opposed to a gene. We believe that by going to these blue zones and methodically looking at what these people do, we can distill out a de facto formula for longevity.

GUPTA: Costa Ricans on the Peninsula eat a healthy diet, plenty of vegetables and fruits like papaya and citrus fruits. The tortillas they eat are made using a special process that takes the husk off the corn and puts more calcium into it, helping to keep bones strong into old age. Buettner's team has also studied why people live so long in Sardinia, Italy, Okinawa, Japan and Loma Linda, California. Buettner says the blue zones offer a recipe for healthy living that could add eight good years to you life. And he offers this advice.

BUETTNER: Eat a plant-based diets, mostly plants; number two, regular low intensity exercise; and then number three, invest in family and friends.

GUPTA: Buettner hopes the blue zones will ultimately teach people how to extend their golden years. Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

LUI: And back to our top story. Israel's defense minister is calling it an all-out war. What is behind the ongoing conflict with Hamas? We'll take a closer look.

(COMMERCIAL BREAK)

LUI: Red alerts all along the Israel-Gaza border. We're still seeing rockets fly from both sides. Israel declares all-out war with Hamas, the Palestinian militants who control Gaza. Israeli commander say they're aiming at Hamas installations launching missiles into southern Israel. Palestinians say more than 300 people are dead so far. Both militants and civilians from the Israeli air strike so far. Here's CNN's Josh Levs with more on the region in crisis.

JOSH LEVS, CNN CORRESPONDENT: Yes we look at these images out of Gaza. I just want to give you some context on what the area looks like, how it all fits in. Let's zoom in on the screen right here.

What you're seeing here, everything in light beige color is Israel. And this little section right there that is Gaza. Now 1.5 million people live in that area. But it's only twice the size of Washington, D.C.. It's a relatively small area. About 140 square miles.

Now, what we've been seeing recently is this. Hamas which controls this area, there have been Hamas militants firing rockets into Israel. We've been told they're going north up toward Ashqelon and also eastward some toward this area. About 140 square miles.

Now what we've been seeing recently, is this. Hamas, which controls this area, there have been Hamas militants firing rockets into Israel. We've been told they're going northward up toward here, Ashqelon. Also, eastward, some towards this area, Beersheba.

These Israeli cities in the south. And what we're seeing today is Israel attacking key installations, key Hamas installations inside Gaza that are right there. And Hamas controls the area.

Let me also give you a little bit of history on Gaza. For that we have a graphic. We're going to start in 1920. Which would bring it back to when it was part of the British-ruled mandate of Palestine. In 1948 Egypt gains control during the Arab-Israeli War. And that's when Israel officially came into existence. 1956, Israel briefly got control of Gaza, but then it was in 1967, in the war then, the six-day Arab-Israeli War that Israel took control of Gaza.

In 1993 Israel signed some agreements, and it was the next year after those agreements with the Palestinian Liberation Organization that most Israeli troops pulled out. But it was in 2005, as we reported right here, that Israel ended its historic occupation of Gaza. Pulled out those settlements and left that area all together.

Now, I want to show you one more thing on the board before we go. Let's zoom back in really quickly. I mentioned that Hamas controls this area. This section up here however, this is the west bank. There is Fatah, that political party that controls Palestinian life. Israel also still has occupation, still has troops inside the west bank. That is one thing that makes a different from that area of Gaza, which is controlled by Hamas.

Some important to keep in mind as you hear about the actions between Israel and Hamas militants in Gaza. Back to you.

LUI: Josh with some context to those two areas that we have seen the rocket attacks and air strikes happen. In the meantime, many are wondering just who and what is Hamas. Well, here is what we know. Hamas is one of two main Palestinian political groups. After seizing power from the other party, Fatah, it has been in the de facto control of the Gaza strip since June of 2007. Now, it was founded in 1987, during the first Palestinian uprising. In its charter, it calls the struggle of Palestine a religious obligation. It continues to refuse Israel's right to exist. The group has been responsible for some of the deadliest attacks in Israel.

Meanwhile, protests against the Israeli air strikes are going on all over the world. Protests continued in Damascus, Syria, where Hamas has a large following, even as far away as London. About 500 people there gathered outside the Israeli Embassy to protest the attacks. Police made several arrests. The demonstrations were also held across Yemen.

Oil prices are also moving in response to the conflict in the Gaza Strip. So, where does crude stand now? Where does it go from here?

CNN Money.com's Poppy Harlow has our Energy Fix from New York.

Hey, Poppy --

POPPY HARLOW, CNNMONEY.COM: Hey there, Richard. Well, stocks are down today, but oil prices are on the rise.

Just two weeks ago oil was trading at a near four-year low around $30 a barrel. Today, earlier this morning, it topped $40. And traders are worried the fighting in Gaza could affect the supplies. After all, the Middle East is, as you know, the largest producing region in terms of oil prices. So, we are seeing them on the rise this morning, Richard --

LUI: Poppy Harlow, thank you so much for that. All right.

Your money to their assembly line. Two of the nation's top automakers get the first portion of their government loan today. General Motors and Chrysler each received four billion dollars from the emergency fund.

GM is scheduled to receive two more installments in the next two months totaling 9.4 billion dollars.

And we're into the final three trading days of the year, and for more most investors saying good-bye to 2008 cannot come soon enough.

Stephanie Elam is at the NY Stock Exchange with more on what's been a brutal year for Wall Street. We are now negative. It was positive when you and I spoke at the open.

STEPHANIE ELAM, CNN CORRESPONDENT: It was barely positive for a second. For a second. Investors are certainly eager to close the books on this year. During which Wall Street suffered through, what some are calling, the worst economic shock since the Great Depression. More than 2 million jobs were lost, the energy bubble burst, a slew of banks failed, and that's just to name a few of the year's mind-boggling headlines.

If you take a look at the major averages, the scale of the damage is very clear. The Dow Industrials have lost 36 percent of their value this year, putting it on track for the worst annual decline since 1931. Nasdaq and the S&P 500 have each plunged more than 40 percent. That's the worst loss for the S&P since it was created in 1957.

Now, we heard a little bit there from Poppy about oil prices. They've plummeted more than a $100 from their all-time high reached back in July. They are trading near $40 a barrel at the moment.

The direction on Wall Street today is the same as it's been for most of the year, down. All right.

Let's look at the numbers and see where everything stands right now. The Dow off 58 points at 8456. Nasdaq up 1.5 percent right now at 1507. And the S&P 500 on the downside right now as well, Richard.

LUI: You know, Stephanie, so do investors at this moment have any reason for belief of optimism at this moment?

ELAM: That's a question that everybody would like to know. And if I had a crystal ball I could tell you for sure. But for now to tell you that kind of remains to be seen.

Many analysts don't think the economy will recover until 2010. But here's the thing, the stock market usually turns around before the economy does. One points out that turning points can be sudden and they can be dramatic. So, it's impossible to pinpoint when that might occur.

And Richard, we've heard everyone say that so many times. Don't try to find the bottom, don't try to pick the bottom. It's just too hard to do.

LUI: It is. It's absolutely impossible to do such things. But we will always ask you that because we're hoping you guys will know more than we do, and you do.

ELAM: I'll work on becoming a little bit more clairvoyant.

LUI: All right, great. Thanks a lot.

Stephanie Elam in New York. Appreciate it.

Well, hope is fading for eight people still missing after a double avalanche in the mountains of western Canada. The mayor of a nearby town says a search party was sent out at daybreak. But it does not look good.

The Canadian Royal Police say the second avalanche struck after survivors of the first ones were trying to save the others. Three managed to escape. They've been taken to an area hospital. (WEATHER REPORT)

Cleanup crews still working around the clock in Central Tennessee after a breech in the wall. The power plant that sent more than a billion gallons of coal waste into a residential area.

(BEGIN VIDEO CLIP)

TOM VEREB, HOMEOWNER: We're hearing all kinds of stories. We're hearing everything from this is perfectly find to be around to get away as far as you can from it. So, we really don't know what the right answer is there. We're not going to panic.

(END VIDEO CLIP)

LUI: Officials say the damage extends much further than they originally thought. The president of the power plant has vowed to clean up the entire mess completely.

It's got a familiar tune. But the words, they're not the same.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Barack, the magic Negro, lives in DC. The "LA Times," they call him that 'cause he's not authentic like me.

(END VIDEO CLIP)

LUI: A Republican's gift gets an angry return from the party chairman.

(COMMERCIAL BREAK)

LUI: In Illinois, the House committee investigating the possible impeachment of Gov. Rod Blagojevich is set to meet in about two hours. The governor's defense team was dealt a huge blow, though, when the panel opted not to subpoena members of President-elect Obama's transition team, including incoming Chief of Staff Rahm Emanuel. Prosecutors decided any testimony from the transition team could jeopardize the criminal investigation, which is ongoing.

Former New York City Police Commissioner Bernard Kerik goes before a U.S. District judge today at the federal courthouse in White Plains. The disgraced commissioner is accused here of lying about his relationship with a contractor.

A candidate to lead the Republican Party released a CD that is causing quite a stir and controversy. The CD insults President-elect Barack Obama. CNN's Jim Acosta has a look at the fallout.

(BEGIN VIDEOTAPE)

CHIP SALTSMAN, FORMER PRESIDENTIAL CAMPAIGN MANAGER FOR MIKE HUCKABEE: We have already got a big crowd here for Gov. Huckabee.

JIM ACOSTA, CNN CORRESPONDENT: Chip Saltsman made a name for himself as national campaign manager of Mike Huckabee's upstart bid for the White House.

SALTSMAN: I'm officially announcing my candidacy for Republican National Committee chairman.

ACOSTA: Now a candidate for chairman of the Republican National Committee, Saltsman is doing damage control after mailing RNC members a controversial CD loaded with racially tinged songs. One of the tunes, one aimed at the next president. A crude parody of the children's classic Puff the Magic Dragon, the song first touched off a brief firestorm when it aired on "Rush Limbaugh" during the campaign. Limbaugh blamed the media for stoking the controversy.

RUSH LIMBAUGH, RADIO TALK-SHOW HOST: Every one of you out there that think you've got something on Barack the magic Negro, I'm going to try to help you and save you.

ACOSTA: Saltsman defends the CD, telling CNN, "I think most people recognize political satire when they see it. I think RNC members understand that."

But current RNC Chairman Mike Duncan says he's appalled in a statement to CNN: "The 2008 election was a wake-up call for Republicans to reach out and bring more people into our party."

JON AVALON, INDEPENDENT POLITICAL ANALYST: There's a crowd of conservatives that takes a special pride in being anti-PC. What I don't think they fully appreciate is, it comes across somewhere between being indifferent to hostile. And that's how they've gotten in the larger problem they now face: Preaching to an ever-smaller choir and looking for votes only in a group that is increasingly old, white and rural.

ACC: A concern echoed by Colin Powell, who recently singled out Limbaugh as part of the problem.

COLIN POWELL: Is this really the kind of party that we want to be?

ACOSTA: Liberal media critics say the issue is bigger than Limbaugh.

KARL FRISCH, MEDIA MATTERS FOR AMERICA: It's unfortunate, but it's not surprising. This type of rhetoric, this type of hate speech and fear-mongering happens every day on conservative talk radio.

ACOSTA: One Republican who's coming to Chip Saltsman's defense is Ken Blackwell, the former Ohio secretary of state and an African American who's also running for the top job at the RNC. Blackwell named the media, telling CNN, quote, "Unfortunately, there is hypersensitivity in the press regarding matters of race."

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

LUI: A trip to the movies turned into drama off screen for one family when police say another moviegoer opened fire. Their story right here in the CNN Newsroom.

(COMMERCIAL BREAK)

LUI: The search is still on for a missing cruise ship passenger. Mexican Navy and U.S. Coast Guard crews are searching the Gulf of Mexico for 36-year-old Jennifer Seitz (ph). Her husband reported her missing from Norwegian Pearl cruise ship Friday morning. And some passengers aboard the ship are speculating about what may have actually happened. One woman says the couple may have had an argument after they played a game on the ship.

(BEGIN VIDEO CLIP)

STEPHANIE GARCIA, CRUISE SHIP PASSENGER: There was a lot of rumors about everything, but all the stories were pretty consistent, that they were at the Not-So-Newlywed Game, and something happened, something maybe was said. They went back to the room, and the neighbors heard arguing.

From that point, that's when all the stories and speculation started of her maybe being murdered or thrown off the balcony. And, so the guy was supposed to be in isolation, but on Saturday he was walking around the ship like nothing had happened.

(END VIDEO CLIP)

LUI: Authorities have not confirmed anything and are still trying to figure out what happened to Seitz (ph). So far they have covered more than 2,500 square miles in their search for her.

A team of brazen robbers foiled by one quick-thinking father. The plan so out there it's compared to a Hollywood thriller. After the family of a bank manager was held hostage overnight by the robbers, they asked the father to drive them to the bank, and that's when he sprang into action.

(BEGIN VIDEO CLIP)

JAMES SPRUILL, SAVED FAMILY FROM HOSTAGE SITUATION: The gunman had took his mask off. So, when he was taking his mask off, that's when I started weaving -- you know, weaving in and out of traffic -- just weaving and swerving the car. And then the state trooper pulled us over.

So what I did was, I handed him my bank card instead of my license. And then -- which made him sense that something wasn't right. So I said, I can give you my driver's license if I can unbuckle myself from my seat belt.

JOHN ROBERTS, CNN ANCHOR: Right, right.

SPRUILL: So when he let me unbuckle myself from the seat belt, that gave me the opportunity. You know, I looked at my son, gave him a look, he moved to the side and that's when I jumped on the assailant. I jumped on his back and held him down and said to the assailant, has a gun, he has a gun. And that's when the trooper responded quickly. He drew his weapon and back up came and they apprehended the suspect.

(END VIDEOTAPE)

LUI: Police have arrested all three suspects. The father is being hailed a hero.

All right. We're going to go straight now to live pictures coming out of Crawford, Texas. We are awaiting the White House spokesperson, Mr. Gordon Johndroe, who's expected on camera right about now.

The big question out there at the moment for many is what will be said in terms of response to the calling up of 7,000 Reservists, the movement of troop carriers and tanks to the border with both Israel and Gaza. This is our Paula Hancocks who's reporting to us as action continues. Air strikes going into the area of Gaza, targeting Hamas targets, according to Israeli defense force spokespeople.

Also, there is the air strikes going the other way. And that is with rockets. Rockets hitting various sites in southern Israel. The President so far, has not been seen since Friday, but the White House has been clear to say at this moment that Hamas is clearly at fault at the moment. The debate has been who broke the ceasefire. Who warranted the action that we have seen so far to date, which has resulted in over 300 deaths, according to Palestinian reports, as well as now two deaths in Israel. One this morning.

And it looks like we are waiting for Mr. Johndroe, Gordon Johndroe. And that is the White House deputy Spokesperson -- Press Secretary, rather. When he comes to the camera, we will definitely dip right in to get the very latest and the response from the White House.

(WEATHER REPORT)

LUI: As you can see, we are awaiting Deputy Press Secretary Gordon Johndroe to begin his briefing. We got the two-minute warning, six minutes ago. Perhaps the delay there, in Crawford, Texas. That is where President Bush is vacationing right now. However, we did receive a paper statement through our White House correspondent Elaine Quijano.

In that statement coming from White House spokesman Gordon Johndroe. He says quote, "In order for the violence to stop, Hamas must stop firing rockets into Israel, and agree to respect a sustainable and durable ceasefire. That is the objective to which all parties need to be working. That's what the United States is working towards."

That statement, again, coming from Gordon Johndroe, the White House spokesman. And we are waiting still for him to come to the microphone to make remarks on what is happening in the Middle East. We're going to go for a break. We'll be watching this and have it straight for you after this.

(COMMERCIAL BREAK) LUI: Gordon Johndroe, White House spokesman, just coming to the microphone.

(JOINED IN PROGRESS)

GORDON JOHNDROE, WHITE HOUSE DEP. PRESS SECY.: -- by phone, to his majesty, King Abdullah of Jordan, this morning, regarding the situation in the Middle East.

Following that, the President received his daily intelligence briefing by a secure video. He then joined a discussion by a secure video with the Vice President, Chief of Staff Josh Bolton and National Security Advisor Steve Hadley. They updated him on overnight developments in the Middle East and discussed U.S. actions.

For six months a ceasefire (AUDIO GAP). During that ceasefire Hamas continued to fire rockets. Last week, Hamas substantially increased its rocket and mortar attacks on the people of Israel. Hamas has once again shown its true colors as a terrorist organization that refuses to even recognize Israel's right to exist.

In order for the violence to stop, Hamas must stop firing rockets into Israel, and agree to respect a sustainable and durable ceasefire. That is the objective to which all parties need to be working. And that is what the United States is working towards.

We also remain concerned about the humanitarian situation for the people of Gaza. We ask that all parties involved to allow food and medical supplies to reach the people there. And we appreciate the efforts of a variety of countries in the region who are working to help the humanitarian needs of the people of Gaza.

With that, I'll be happy to take your questions -- Deb.

QUESTION: (OFF-MIKE).

JOHNDROE: Israel is responding to (INAUDIBLE) attacks that increased substantially (INAUDIBLE). Israel has made clear that they do not want to retake Gaza. That they simply want the people of southern --

LUI: All right. White House spokesman Gordon Johndroe speaking. Some audio issues there. But, of course, we're taking this live at the moment, coming out of Crawford, Texas. He mentioned the issue of meeting with his national security advisors as well as others.

Also he discussed the issue of a ceasefire and how Hamas violated that during the six-month period. And he is alluding to the two months towards the end of the ceasefire where Hamas was firing rockets into the southern parts of Israel, and working towards a sustainable ceasefire.

And of course, there's the issue of casualties, which the White House has warned Israel about and trying to keep those numbers low and mitigate the loss of life there.

We're going to go now to Tony Harris, who's going to be taking it up from here for the next two hours. And Tony, a lot ahead.

TONY HARRIS, CNN ANCHOR: Yes, I think you're right. And what we're going to try to do here is solve the audio issues that you heard coming from Crawford -- in that feed from Crawford. And when we do, we will probably take you back in all likelihood to that press conference in Crawford.

Richard, appreciate it. Have a great day. Thank you.