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Healing the Economy; Cuba's Anniversary

Aired January 01, 2009 - 10:00   ET

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


HEIDI COLLINS, CNN ANCHOR: New year brings new attacks in Gaza. Israeli air strike hits the home of a top Hamas commander. Live report, ahead. And a cold hard start to 2009. Storm warnings and plunging temps. Our severe weather center tracking it for you.
Happy New Year, everybody. It's Thursday, January 1st, 2009. I'm Heidi Collins. You are in the CNN NEWSROOM.

We take you first this morning to the heart of Baghdad, a heavily fortified area. Today for the first time since the war began back in Iraqi hands. CNN's Jill Dougherty witnessed the handover of the so-called green zone and she is joining us now. So Jill, explain to us really how significant this is on many different levels.

JILL DOUGHERTY, CNN CORRESPONDENT: Well, Heidi, it really is a turning point here in Iraq. After all, the security agreement that was worked out in November between the United States and Iraq goes into effect. And that governs the presence of U.S. forces here in Iraq until, as expected, they will be leaving in another three years. And symbolically it began in the green zone.

(BEGIN VIDEOTAPE)

DOUGHERTY (voice-over): It's known as the green zone. Its official name is the International Zone, four square miles, ten square kilometers carved out of the heart of Baghdad, surrounded by massive concrete glass walls and razor wire, guarded by a maze of checkpoints and armored vehicles, an American-run mini city that gives new meaning to the expression gated community. It's the seat of the Iraqi government and of the international coalition.

Until January 1st, it was under coalition control. Now that control shifts to Iraqi hands. Before the invasion in 2003, there was no such thing as the green zone. The area contained Saddam Hussein's presidential complex, a series of palaces for him, his family and his top officials. When U.S. forces captured Baghdad, Jay garner, the first U.S. administrator for Iraqi reconstruction set up offices in Saddam Hussein's republican palace. Soon American soldiers were relaxing in Saddam Hussein's swimming pool.

But it didn't take long before the green zone was under attack. The Al Rashid Hotel hit in 2003, the Iraqi Parliament cafeteria bombed in 2007. Last year in the green zone, U.N. Secretary General Ban Ki Moon was startled by a mortar exploding nearby. Despite ramping up security, the green zone became even more of a target. It was very much a fortress, a no-go zone for most Iraqis. Even Iraqis who lived or worked there had to stand in endless security cues. For Americans and other international employees, it became her medically sealed bubble, cutting them off from most Iraqi citizens and the reality of life in Baghdad.

Now Americans have moved out of the republican palace and into the new American embassy about a mile away. For Baghdad residents, turning the green zone over to Iraqi control could mean fewer traffic jams with more and more roads through the green zone expected to open up.

(END VIDEOTAPE)

DOUGHERTY: So if things go according to plan, and a lot of Iraqis hope they do, the green zone once again be an integral part of the capital and it really is a physical and psychological symbol of increasing Iraqi sovereignty. Heidi.

COLLINS: Sure, a couple of questions for you, Jill. Is the green zone, the boundaries of the green zone the way it's set up, sort of geographically, will that remain the same under Iraqis? And are they anticipating any changes with regard to security of it?

DOUGHERTY: Well, you know, eventually the plan would be for the green zone simply to disappear,

COLLINS: Sure.

DOUGHERTY: And that whole area would become part of Baghdad as it once was. Because right now most Iraqis, as I said in that piece, can't really get in. The people who work there can, but it's hard. And so it would open up and it would become part of the city and a transit place for people to get from one point to the other. Because I'll tell you, traffic jams are very, very big. It's a big bone of contention for people here.

COLLINS: Yes, certainly. All right. CNN's Jill Dougherty for us coming from Baghdad. Thanks so much, Jill.

The milestones have come at a heavy price. Tens of thousands of Iraqi civilians and soldiers are dead. Thousands of coalition forces as well since operation Iraqi Freedom began nearly six years ago, 4,221 U.S. troops have died. The number of casualties dropped dramatically this year. Commanders credit the U.S.-led surge, a decrease in insurgent attacks and improving Iraqi security for that.

President-elect Barack Obama says he plans to shift the military focus to Afghanistan where attacks on troops are growing.

Now to the crisis in the Middle East. Israel launches more air strikes. Thunderous explosions rock Gaza. A Hamas military leader is killed. It has been a hectic couple of hours that is for certain. Here to break it down for us is CNN's Ben Wedeman. He is joining us live along the Israel-Gaza border. Ben.

BEN WEDEMAN, CNN CORRESPONDENT: Yes, certainly, Heidi. It has been intense, one air strike after another, just a few kilometers or miles from where we're standing. We're just on the Israeli side of the border. This is the northern Gaza behind me. About 15 minutes ago, yet another air strike. It does appear that Israel is intensifying these air strikes. It may be as a prelude to the ground offensive that's been so talked about. Now one of the most dramatic air strikes today was on the home of Neesa Reyan, who is a senior member of Hamas' military wing.

In that air strike, according to Palestinian medical sources at least ten people killed. The pictures coming out of there, utter pandemonium, the house completely destroyed, much damage to the neighboring houses as well. Our understanding is among the dead, there are children, and certainly before this wave of air strikes, we understood that the death toll in Gaza had reached 400 including well over 60 civilians. Clearly that death toll has mounted significantly since then.

That, in addition to 2,000 people at least wounded. More than 200 of them in critical condition. Rocket fire out of Gaza has been also fairly steady. We've seen a variety of missiles being launched from not far behind us in the direction of the Israeli town of Sderot, a little while ago, apparently two missiles hit the town of Bathseba, in Israel, which is 25 miles from Gaza. So there's long- range missiles continuing to be fired out of Gaza.

On the diplomatic front, Heidi, the Israeli foreign minister Tzipi Livni is in Paris talking to French officials there, trying to push some sort of ceasefire to allow humanitarian goods into Gaza. But it appears at the moment that diplomacy is on the back burner. Heidi.

COLLINS: All right. Ben, we sure do appreciate that. That 48- hour truce that they are working on that was earlier rejected by Israel. We will stay on top of those diplomacy meetings as well. Thank you so much, Ben.

New Year's tragedy, 58 people killed during a celebration in Bangkok, Thailand, many of them crushed in the rush to escape. CNN's Ralitsa Vassileva has more.

(BEGIN VIDEOTAPE)

RALITSA VASSILEVA, CNN CORRESPONDENT (voice-over): Ambulances navigate heavy new year traffic to rescue hundreds of revelers trapped inside a burning upscale nightclub in Bangkok. Flames raced through the nightclub as the rescue operation went on. By the time firefighters put out the flames, several dozens revelers are dead, including a number of foreigners. More than 130 are injured. Those who fled in a panic caused the deadly stampede, leaving their shoes behind.

An Indian party go-er named Lucky saw the fire break out as the singers were still performing on stage and made his escape just in time before the stampede broke out.

"LUCKY," SURVIVOR: There was only one way to come out, you know. And the gate was very small, only two meters. There were I think 700 or 800 people inside. When I came out, I think it caught fire, very dangerous.

VASSILEVA: Thai police are investigating the cause but suspect fire crackers caused the fire which erupted shortly after midnight.

CHOKCHAI DEEPRASERTWIT, THAI POLICE MAJOR GENERAL (through translator): It may have been caused from sparks. We don't know if it's sparks from fire crackers or from the nightclub's countdown display on the stage. We still cannot identify the exact causes but investigators are working on it.

VASSILEVA: Rescue workers found most of the bodies in the pit area surrounding the stage. Police say the victims died of burns, smoke inhalation and injuries from the stampede to escape from the only door available to the public. Rescuers believe more bodies lay inside the gutted building.

Ralitsa Vassileva, CNN, Atlanta.

(END VIDEOTAPE)

COLLINS: Another tragic fire, this one in Washington, D.C., at least five people are dead, two of them children. A spokesman for the fire department says the early morning fire started in the basement and quickly spread to the upper floors. Firefighters rescued two other people and are said to be trying to reach two others still trapped in the home.

And now for the very latest on a new year's eve scare in the ski resort town of Aspen, Colorado. Part of downtown was evacuated yesterday after a suspicious packages were found at two separate banks. The packages were detonated and no explosions occurred. But police now say the suspect in the case, 71-year-old James Blanning was found dead early today.

Joining us on the phone now with more on this story is Stephanie Dasaro, the public information officer for the Aspen Police Department.

Why don't you go ahead and just tell us, if you would, Stephanie, exactly what you know at this point. It's a pretty bizarre story.

VOICE OF STEPHANIE DASARO, PUBLIC INFO. OFFICER, ASPEN POLICE DEPARTMENT: It is a very sad and unfortunate story today. But at this time, as you've already said, the local or the bomb technicians have rendered the incendiary devices safe at this time using a high pressure water cannon.

Our evacuation area which included 16 blocks of downtown Aspen has been rescinded, so homeowners and business owners can return home and into their businesses and resume you know normal daily activities at this time.

COLLINS: Wow. Yes, that's a pretty busy area I imagine during the holidays, downtown Aspen. I do wonder, what, if you can speak about this, what led police to this particular suspect?

DASARO: Well, during the course of the investigation we received some video footage from the banks where some of the devices were located. From those we were able to obtain stills of the suspect. And from those stills we were able to identify the person, James Blanning.

COLLINS: Yes, just so people know, I think we're looking at some of that surveillance video right now. Did this person have any type of record or history with the police?

DASARO: I know that Mr. Blanning was a local at one time here at Aspen. And he has had some prior contacts. The details of those contacts I'm not aware of at this time. As part of the investigation they will look into those.

COLLINS: Yes, is there any cause of death at this point?

DASARO: That is still currently under investigation. The coroner's office and the sheriff's office are looking into that as we speak.

COLLINS: All right. We, of course, will stay on top of this story as well. We sure do appreciate the information that you have, Stephanie Dasaro, public information officer for the Aspen Police Department. And the police department is planning a news conference coming at noon Eastern on the suspicious packages. CNN will follow it and, of course, keep you updated.

Well, 2009 begins with a big chill. Bitter cold, snow, ice and wind hit a large part of the country. A snowstorm in the Midwest made driving dangerous, in Ohio and other places today. But the snowboarders were out. That's for sure. Things should get a little better today, too.

In the northeast a new year's eve snowstorm put a crimp on some holiday celebrations. Boston got about six inches of snow yesterday. But some areas in the northeast got up to 11 inches of snow. That's inches, not feet. Reynolds Wolf joining us now.

REYNOLDS WOLF, CNN METEOROLOGIST: But you know, everything is relative.

COLLINS: A lot of snow, huh?

WOLF: But you know, everything is, you know, you have to look at the individual. If you're not used to shoveling snow, 11 inches might as well be 11 feet.

COLLINS: That's right.

WOLF: So you got that to deal with. You know, not only did we have snow in parts of the northeast. We also had quite a bit of wind. Some wind guts we have recorded just yesterday in Washington, D.C., the nation's capital. A 59-mile-per-hour gusts off the Potomac. In Cambridge, Massachusetts, 59, same story. Nantucket, Massachusetts, we have 53. New York City, 47-mile-per-hour gusts. And the winds prevailing quite strong, in fact, through much of the evening hour, you have 20 to 30-mile-per-hour winds in Times Square, couple that also with some snowfall. You see the totals from just yesterday, Boston actually got a record with 6.5, a record just for yesterday. Some other places like Kingston, Massachusetts, 11.5.

More snow in store for the Great Lakes today. We got this area of low pressure is going to be marching it's way off to the east. Once it interacts so that moisture off Lake Superior, Lake Michigan, you're going to see the snowfall totals go right back up again. For Chicago, not so much. Northern Michigan could see four to eight inches of snowfall in a few places, Traver City might have that an issue. (INAUDIBLE) same story for you there.

Meanwhile, when you cross into the Great Plains, it's fairly cool in some spots. Fairly warm though for you in the desert southwest. But then back in the pacific northwest we see yet another winter storm beginning to ramp up. And as this system crosses parts of the cascades and into the northern Rockies, we're going to see some of the snowfall switch over to rainfall. But that's not going to be the case though in the highest elevations.

In the highest elevations you can see not several inches but rather several feet of snowfall as the storm system marches across. And that could really get kind of treacherous, especially in some of the mountain passes when you have the wind picking things up, visibility getting down very, very low. So if you are driving in that part of the world, be careful. 40 degrees is the high today in Salt Lake City, 47 Kansas City. 27 in New York, 48 in Atlanta, Chicago 35. As we wrap things up, LA., 61 your high on this first day of 2009. Feels weird saying that, doesn't it?

COLLINS: Yes. And lovely for them. A lot of other people in the areas with the snow is hitting are probably trying to be like Wonder Woman and say no more snow. All right. Reynolds, we know you're on top of that for us. Thanks so much.

WOLF: You bet.

COLLINS: A small town's time in the national spotlight in just about over now. The people of Crawford, Texas, talking about being in the shadow of the western White House.

(COMMERCIAL BREAK)

COLLINS: A plea to the Illinois Supreme Court. Roland Burris asking the court to force his confirmation as the state's new senator. The secretary of state refused to sign the order approving the choice by Governor Rod Blagojevich. Democrats in the Senate are also saying they will not approve the choice. Burris says he's planning to show up in Washington Tuesday to be sworn in with the rest of the new members.

In 2000, the little town of Crawford, Texas, was thrust into the spotlight. Today with its most famous resident getting ready to move out of the White House, the town is also in transition. Our Elaine Quijano is joining us one more time from Crawford. Kind of like "Auld Lang Syne," Elaine?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: That's exactly right. Hello to you, Heidi. Well you know, the next time George W. Bush returns here to Crawford, it will be as a former president.

(BEGIN VIDEOTAPE)

QUIJANO (voice-over): After eight years, the sun is setting on the western White House, Crawford, Texas, population just over 700, with its most famous president, President George W. Bush leaving office.

MARILYN JUDY, CRAWFORD, TEXAS RESIDENT: All in all I think it's been a good thing.

QUIJANO: Long time resident Marilyn Judy remembers how President Bush visited Crawford's coffee station restaurant and the schools sometimes with world leaders in tow.

In 2001 -

JUDY: The Putin conference, those kids were a part of history. No other kids in America were going to be a part of history like that.

QUIJANO (on-camera): Students also learned another lesson that year, about the pressure of being home to the president of the United States.

JUDY: We were probably the only school in America that's evacuated, too, because we thought the plane was coming here to the ranch.

QUIJANO; In 2005, Cindy Sheehan arrived, protesting her son Casey's death in Iraq and demanding unsuccessfully to see President Bush at his ranch.

CINDY SHEEHAN: He never has had the courage to meet with me.

QUIJANO: Bill Johnson watched the crowds from his souvenir shop, the Yellow Rose.

BILL JOHNSON, STORE OWNER: There has been 10, 15, 20 cameras down here in some afternoons.

QUIJANO: A self-described cowboy.

JOHNSON: We realize we're not in the main stream and don't want to be.

QUIJANO: Johnson says the national media has mostly given Crawford a fair shake, mostly.

JOHNSON: I think overall Crawford has been in many ways given a good shot. In some ways it hasn't. Because those that come looking for a burger can find one. QUIJANO: And while President Bush is keeping his ranch, residents know the spotlight is fading fast on their one-traffic-light town. But they say Crawford is better, its residents closer for having the western White House.

JUDY: We've banded together and tried to put on a good show or a good face for the media. And I think that made us all better.

(END VIDEOTAPE)

QUIJANO: On January 20th, Mr. and Mrs. Bush will return here to Texas and a new home in Dallas. Aides say they will continue spending time at their Crawford ranch. Heidi.

COLLINS: All right. CNN's Elaine Quijano for us from Crawford. Thanks, Elaine.

The roar of the crowd. Hugs and kisses all around. Some pretty steamy ones, too. Welcoming 2009. We'll show you how they did it in New York and around the world.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: 10, nine, eight, seven, six, five, four, three, two, one.

(END VIDEO CLIP)

COLLINS: The falling Waterford crystal ball in New York's Times Square, a traditional symbol of New Year's eve revelry. Thousands braved freezing temperatures last night to witness the dawning of 2009. The Clintons there, too.

In Kabul, Afghanistan, U.S. troops from the 33rd infantry brigade of the Illinois National Guard celebrate the arrival of 2009. They sang karaoke and offered cheers for a safe and prosperous new year.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Quatro, tres, dos, uno.

(END VIDEO CLIP)

COLLINS: In Mexico City, the traditional countdown ushered in the new year.

And in Athens, Greece, a rocky start to the new year. A fireworks display at midnight proved to be a distraction for criminals. During the celebration police say arsonists attacked at least 10 banks and two car dealerships. No arrests or injuries were reported.

Now, back to New York. After the party, the clean up. Partiers in Times Square left a big mess behind as you can see. The street sweepers came in to save the day. The Department of Sanitation pulled off a New Year's miracle, cleaning up tons of trash before most of us ever woke up.

And we want to hear from you this new year's day. What are you looking forward to in 2009? E-mail us at cnnnewsroom@cnn.com.

2008 goes out with a whimper, at least as far as the economy goes. Can our wallets though expect better times in this new year? Our money team looks at the story ahead.

(COMMERCIAL BREAK)

COLLINS: The nation's money crisis. It's no surprise that many of us all too happy to say good riddance to 2008. But is there any reason to believe this new year will be easier on our wallets? Here to look ahead, try to move forward, move ahead CNN's Christine Romans coming to us from New York. So housing and jobs, I mean, clearly those are two very big worries for nearly everybody.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And for the record, Heidi, I'm very happy to start moving ahead. Because 2008 was one of those years that you just - the headlines just got worse and worse. Now it's in the record books. It's in the history book and we move forward and we hope that this new administration and the folks who are going to be working on a stimulus are going to be coming up with some good ways to get the economy moving again or at least to blunt what could be another year of trouble.

I want to start first with something that is coming to fruition that the Treasury Department has already started to do. They've been talking about buying back mortgage-backed securities to try to lower fixed mortgage rates. And that has been working. We're expecting some of those purchases to begin pretty soon here. We have mortgage rates continuing to fall, a 37-year low.

For anybody who is looking to buy a home, they know this. For anybody who is looking to refinance a home, this is a very good time to take a look at just what your monthly costs are. A year ago, 6.06 percent was what a 30-year fixed rate mortgage is. This week, 5.1 percent. There are economists who think it could go down into the fours. And in fact, a 15-year fixed rate mortgage is in the fours right now.

How does this translate? Well, according to Fannie Mae, the economists there, if you have a $200,000 loan, you took it out back in October. Compare that with taking it out today, with rates down one and third points, it's $173 a month difference. That's real money.

COLLINS: Yes, sure.

ROMANS: And that is something that can boost the economy if indeed you get a lot of people starting to refinance their homes and indeed if you get a lot of people who are starting to think about going into the housing market.

There's a lag, when mortgage rates decline and when people start to get interested. It's not a very liquid market, really especially now. But some people are telling me that in March, later in the spring, in the summer, maybe there will be some activity in the housing front, Heidi.

COLLINS: Yes, and probably everybody hopes so on that front for sure.

ROMANS: Yes, sure.

COLLINS: Christine Romans, we appreciate that. Happy New Year to you, too.

ROMANS: You, too.

COLLINS: The economy, issue number one for Americans and job number one for their next President. It may prove to be the first test of Barack Obama's leadership and salesmanship too.

CNN White House Correspondent Ed Henry explains.

(BEGIN VIDEOTAPE)

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: While keeping one eye on the crisis in Gaza, President-elect Barack Obama is now returning to the main land to focus on the issue that propelled him to office, the economy, which is why the transition team is kicking off the New Year by sending Congress a recovery plan in the neighborhood of $775 billion.

JOE BIDEN, (D) VICE PRESIDENT-ELECT OF THE UNITED STATES: Economists rarely agree, but on this score, there's overwhelming agreement that we need a robust and sustained economic recovery package. The greater threat to our economy lies in doing too little rather than not doing enough.

HENRY: Transition aides say the goal is to get the bill signed into law as quickly after the inaugural as possible, to get the new President a quick victory while also giving the economy a shot in the arm.

The emerging plan includes billions for backlogged transportation projects to beef up construction jobs and improve the nation's infrastructure as well as modernizing crumbling public schools, to create jobs while also investing in education.

REP. BARNEY FRANK, (D) MASSACHUSETTS: If we don't do this, it will cost us even more. This economy is now in the worst shape since the Great Depression. And if we do not respond in a very firm way, it gets worse and worse and feeds on itself.

HENRY: But Republicans are making noise about slowing the stimulus plan down because they're wary about the price tag, especially on top of a series of government bailouts.

REP. ERIC CANTOR, (R) VIRGINIA: I think most American taxpayers now are sort of scratching their head, wondering when all this bailout stuff is going to end and probably thinking, you know, when is my bailout coming.

HENRY: To overcome the opposition, aides say Mr. Obama is considering plans to travel the country, to sell the economic plan quickly after being sworn into office.

Mr. Obama needs to move quickly to sell his plan because there is no time to waste. This is the first real test of the new President's clout.

Ed Henry, CNN, Honolulu.

(END VIDEOTAPE)

COLLINS: OK, Reynolds, that's where I would like to be, with Ed Henry in Honolulu, Hawaii.

REYNOLDS WOLF, METEOROLOGIST: How did Ed do that?

COLLINS: Yes, I know.

WOLF: Your heart has to go out to the poor guy. I mean, come on. Having to be out there by the beautiful shores of Hawaii, I mean, tough assignment.

COLLINS: It's a tough gig yes.

WOLF: He's a great guy. We love Ed Henry.

I tell you what, they may really enjoy the weather in say parts of Hawaii better they have in Spokane. Take a look at the numbers we've had in Spokane; through the month of December, this is a record 60 inches of snowfall in Spokane. Green Bay, you kind of expect a lot of snowfall on Green Bay. Fargo, we all know about Fargo over 33.5 inches there. Pendleton, Oregon, even Great Falls all get into the heavy snowfall action.

Now, what we're going today is see more snowfall. Places like Michigan and mainly up to the northern peninsula, you're going to see some anywhere from 4-8, near Painted Rocks National Lakeshore, due to this area of low pressure and the storm is just drifting from west to east.

But if you look back on the Pacific Northwest, we've a monster of a storm system that's brewing up. Into the lower elevations it's going to be mostly rainfall. But in the hire spots, we have the cold air aloft. You're going to see some snowfall and some of that still Heidi, may be particularly heavy along parts of 80, along parts of the I-5 corridor.

Look for the snow really to intensify by the afternoon hours. And with the winds really picking up, you might have white-out conditions. Same story once you get over to Idaho where in the highest elevations you may have wind gusts topping 40, 50, maybe even 60 miles an hour.

And that's going to be initially you're going to be dealing with in places like even Wyoming; Jackson Hole, Wyoming could see several feet of snowfall before the day is out. Greater for you skier, but if you have to shovel off the front walk, good luck to you.

Hey, good luck to you also on San Francisco. The fog has been fairly thick this morning. You have a delay. It's not a bad one 25 minutes or so. That's the reason why they serve coffee in the airports and that's why you can see CNN just to pass the time and wait for these flights to take off. Things will get better as we make our way through the day.

The temperature is also going to warm up, kind of a chilly morning in Seattle, but we're headed for a high of 44 degrees, 31 in Billings, 25 in Twin City, Chicago with 35 degrees, New York and Boston, temperatures mainly into the 20s for your daytime highs. But with the breeze that will be picking up and it will up in hours, it's going to feel a bit cooler.

72 in Miami and Tampa; you lucky devils and not a bad way to kickoff the New Year. Atlanta with 48, Nashville with 49 and Dallas and Houston, Maine into the 60s, same story on parts of I-35 in Austin, Texas, conditions will be fine today.

Enjoy this January 1st, 2009. It still feels weird.

COLLINS: Yes, I know.

WOLF: It's going to be all the way through March where I'm still writing '08 on the checks.

COLLINS: Yes, you still write checks?

WOLF: No.

COLLINS: Yes. All right Reynolds, I knew what you meant though.

WOLF: There you go.

COLLINS: Thank you so much Reynolds, we'll check back over to you a little later on ok.

WOLF: I'll talk to you soon.

COLLINS: An unusual sight at Chicago's Wrigley field. They built a hockey rink across the infield; the friendly confines now playing host to pucks instead of pitchers.

CNN's Ray D'Alessio has more.

(BEGIN VIDEOTAPE)

RAY D'ALLESIO, CNN CORRESPONDENT: This is the Wrigley field we've become accustomed to, warm summer temperatures, ivy on the outfield walls. Its unique manual scoreboards, Cubs baseball at it's finest.

But in the past few weeks the friendly confines have been transformed into the frozen confines, complete with an NHL caliber rink which will host one of hockey's greatest rivalries.

JOHN MCDONOUGH, CHICAGO BLACKHAWKS PRESIDENT: It's the Black Hawks playing the Red Wings at Wrigley field. I think the hockey gods really wanted this game to happen.

CRANE KENNY, CHICAGO CUBS CHAIRMAN: We were competing with Fenway Park and Yankee Stadium for the event, and they fell in love with Wrigley like we all have when we come here for the first time.

PATRICK SHARP, CHICAGO BLACKHAWKS PLAYER: The league has done a good job of setting everything up here. The ice is in good shape. The building looks great and the only problem is the sun coming over the stands there. So the visor might come into play, maybe put some sunglasses on, some eye paint, like Dave has over here and we'll see how it goes.

D'ALLESIO: This year's Winter Classic marks only the second time the NHL has played a regular season game outdoors. The first Winter Classic held last year in Buffalo was an overwhelming success. It drew an estimated 3.7 million viewers; one of the largest TV audiences in decades for a regular season NHL game.

That success led the league to invest in a one of a kind mobile ice unit with the hopes of hosting future outdoor games.

DAN CRAIG, NHL ICE EXPERT: I can put this unit whether it's in the middle of a parking lot, middle of a football field, middle of a ball park. That's what the beauty of this system that we are able to do, and we will be able to walk in there, bring the Zambonis out on the surface and everybody will be able to see how any type of facility can be converted into a hockey ring.

D'ALLESIO: As far as the coverage for this year's Winter Classic, NBC plans to use about 25 cameras, ten more than usual, rink- side reporters will also give updates while balancing on skates.

And most importantly, a weather person will be stationed on a nearby roof top. Some are hoping for the snowy conditions that were present for last year's classic.

BOBBY HULL, NHL LEGEND: Without snow it's not a game. This would be a perfect, a perfect day if this might happen.

D'ALLESIO: Snow or no snow, it's still the Winter Classic.

Ray D'Alessio, CNN, Atlanta.

(END VIDEOTAPE)

COLLINS: The start of the 120th Rose Bowl Parade just about 30 minutes away now. And people started staking out their spots on the parade route well in advance. Police in Pasadena predict about a million people to be on hand for the floats and the 21 marching bands.

As many as 40 million Americans are expected to tune in on TV. Actress Cloris Leachman is the grand martial for this year's parade. I wonder if she'll be dancing, too.

Taking small steps to reach your New Year's goal; losing weight may be easier than you think.

CNN's senior medical correspondent, Elizabeth Cohen has a plan.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: With the New Year upon us, many of you might have New Year's resolutions to lose weight. You might have big plans to get fit.

But many experts say, you should actually have small plans, fit small changes in your diet, can actually be changes that you can keep. The big plans might go away by February or March or April, but small changes you might actually be able to stick to.

So what can small changes get you? They won't get you dramatic weight loss. What they can do is that they can keep you from putting on the pound or two per year that many of us put on as we age.

So to prevent that weight gain as you get older, if you can just change your diet so that you're taking in 100 fewer calories than you were before, you can really see some results.

So let's take a look at what that means. For example, if you like lattes get a skim milk latte instead of whole milk latte, that'll save you 100 calories. You can also walk 20 minutes, for most people that will burn around 100 calories.

And also when you sit down for that bowl of ice cream, instead you can have a popsicle, that'll save you nearly a hundred calories. For other ideas for small changes that can make a big difference go to CNNhealth.com. Back to you.

(END VIDEOTAPE)

COLLINS: They're not just celebrating the New Year in Cuba, they're marking the anniversary of a revolution.

Is there now a chance for change in relations with the United States?

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COLLINS: Crisis in the Middle East: it's been a morning of swift developments and thunderous explosions. The Israel bombardment of Gaza seems to be escalating on this sixth day of fighting and it has claimed a key target. Hamas says a rocket killed one of its top military leaders and nine other people inside his home.

Israel says it is also hitting homes where weapons are being stored; the number of casualties, growing. Palestinian medical sources say now more than 400 people have been killed in Gaza, another 2,000 have been wounded. Israel says four people have been killed by Palestinian rockets, another 56 wounded. Cuba marks the 50th anniversary of the revolution today. It was a half century ago that Fidel Castro and a group of rebels ousted a long-standing U.S.-backed dictator. Today Cuba's achievements are mixed, prospering in some areas despite a U.S. trade embargo.

CNN's Morgan Neill with more.

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MORGAN NEILL, CNN HAVANA BUREAU CHIEF: The U.S. trade embargo started in the early 1960s aimed to topple the revolutionary government of Fidel Castro. Instead, the system he and his brother have led is on the verge of outlasting its tenth U.S. President. And the embargo has kept U.S. influence in Cuba at a minimum while others make inroads.

The old Soviet embassy has been busy lately as Russia rebuilds ties with its Cold War ally. China is sending thousands of students to learn Spanish at schools like this one; part of its overall push to secure raw materials throughout the region.

And Venezuela has maybe the closest relationship of all with Cuba, built on a firm foundation of oil from Caracas traded for doctors from Havana.

Why does it matter? Some analysts say that what the U.S. does here will be felt throughout the region.

JULIA SWEIG, COUNCIL ON FOREIGN RELATIONS: If the United States were to begin to open a new chapter toward Havana, this would be widely applauded by Latin America and globally. And it would give a boost to the Obama administration's claim that it represents turning over a new leaf in beginning to recover American standing globally.

Cuba is very symbolic of that opportunity.

NEILL: That was clear at a recent summit in Brazil where President Raul Castro was embraced by Latin American leaders who urge an end to the U.S. embargo.

There are signs the time may be right for some kind of opening. First, President Raul Castro, then his ailing brother, former President Fidel Castro, both said they'd be open to a meeting with the U.S. President-elect.

While few expect to see an end to the embargo any time soon, President-elect Obama has indicated he favors looser restrictions on family travel and money sent back to the island.

Morgan Neill, CNN, Havana.

(END VIDEOTAPE)

COLLINS: A New Year's Eve scare in the ski resort town of Aspen, Colorado. A pair of suspicious packages found at two separate banks in the downtown area yesterday afternoon. Police ordered the 16-block area evacuated. The offices of the "Aspen Times" newspapers were among several businesses cleared.

Police say a package wrapped with a threatening note was found at a Wells Fargo bank. The second package turned up at a nearby Vectra Bank. Both packages have been detonated.

A little while ago, CNN confirmed the suspect in the case, seen in this surveillance photo has been found dead. The suspect is identified as James Blanning (ph). The Aspen Police Department is planning a news conference coming your way at noon Eastern. CNN will follow that and, of course, keep you updated.

A cruise ship returns to Florida leaving the search for a missing employee in the hands of the U.S. coast guard. A spokesman tells CNN the guard was directed just after midnight to waters about 20 miles from Vero Beach. The cruise ship Carnival Sensation was idling looking for a missing crew member.

Friends of the man say they saw him fall overboard and threw him a life ring. The cruise line, in a statement said, by all accounts this was clearly an accidental overboard. Carnival says the missing crew member was part of the entertainment staff and was off duty at the time.

A great way to make easy cash: Washington homeowners renting out for the inauguration. But some residents now have to downsize their dreams.

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COLLINS: Well, today is the first day of 2009; or do you say twenty oh nine. Just how do you refer to the year when you say it out loud?

A new CNN Opinion Research Poll shows a vast majority of people, 93 percent say 2009. What about next year? That can be a little more confusing. The poll shows most of us will go with 2010. But for 28 percent of people twenty-ten is the way to say it.

It sounded good at the time; residents in the nation's capital renting out their homes for the inauguration. But for many people, these best laid plans are now being tweaked a bit.

Here is CNN's Samantha Hayes.

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SAMANTHA HAYES, CNN CORRESPONDENT: An historic inauguration plus unprecedented crowds predicted by the Mayor of D.C. himself.

MAYOR ADRIAN FENTY, (D) WASHINGTON: We should be prepared as a city for in the range of three to five million.

HAYES: Equal the golden opportunity for those living in and around the nation's capital.

KARA SNESKO, RENTING HOME FOR INAUGURATION: Initially we thought we could get $1,500 a night based on all the other people on Capitol Hill and what they were asking and how many bedrooms.

HAYES: And?

SNESKO: And no takers. No takers.

HAYES: so to finally seal the deal, she worked through inauguralhomes.com, a website started by Andre Butters to bring owners and renters together.

ANDRE BUTTERS, INAUGURALHOMES.COM: I think a lot of people will be disappointed unless they price their property appropriately. We're seeing things the size of $5,000 to $6,000 a night. I don't believe that there's a market for that.

HAYES: Real estate agent Hill Slowinski, have seen higher than that, $65,000 a week. But most of the homes he has listed, 165 total are going for much less and they aren't being rented.

HILL SLOWINSKI, REAL ESTATE AGENT: We have one completed transaction, by completed transaction it's not just a contract. We require payment up front in full.

I think people are waiting to see what happens after the holidays when activity at home has died down, whether or not they're really interested in doing something. Also we have to prepare our owners for things that they may not have foreseen when they go into a transaction like this.

HAYES: if they can make a deal, some property owners are happy to start off the New Year with a little extra cash, even if it's less than expected. Kara Snesko settled for $600 a night.

SNESKO: Yes, I feel good about it. I hope that they enjoy our house as much as we do.

(END VIDEOTAPE)

COLLINS: The D.C. Tourism office says there are still hotel rooms available for the inauguration, about 500 in the city for an average of $800 a night.

Christmas gift comes in. Get this, it's $365,000.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: She said, I'm going to spend $1,000 for every day of the year.

Oh my gosh.

(END VIDEO CLIP)

COLLINS: Oprah Winfrey wrote the check. We'll tell you who is cashing it.

(COMMERCIAL BREAK) COLLINS: Pope Benedict XVI blessing thousands of people in St. Peter's Square today and issuing a challenge to world leaders. The Pope urged leaders to think beyond short-term solution to the financial crisis and focus on the future of globalization. He also talked about his belief the global crisis shows the need for greater solidarity with the poor.

So what are you looking forward to in 2009? Lots of you sending us e-mails today. We want to share a couple of them with you now.

This is from Sergeant Raul Hock, he says more time with my family now that I'm back from Afghanistan. Good for him.

Also "Less terrorism, war, financial fraud, political scandals and natural disasters, that from Talat. From sandy, I'm looking to be cancer free to then dig myself out of debt and hopefully enjoy a healthy, happy, family.

And finally from Kirk, I'm looking forward to my Obama stimulus check by February.

I know it's New Year's day. I've got to tell you about this Christmas gift. This is a fantastic story. Oprah Winfrey donated $365,000 to an Atlanta school. The students became overnight stars after performing a political rap which made it to YouTube.

More now from Dana Lowry (ph) of our affiliate in WXIX.

(BEGIN VIDEOTAPE)

RON CLARK, RON CLARK ACADEMY: And I realized the sheet of paper was actually a check made out to the Ron Clark Academy for $365,000.

DANA LOWRY, CNN CORRESPONDENT: A shocker, not just for the kids, but the parents, everyone. This is a dream for Ron Clark Academy, a school only in its second year and just getting started.

UNIDENTIFIED MALE: Oh, my gosh, oh my gosh.

UNIDENTIFIED MALE: This is such as amazing gift.

UNIDENTIFIED MALE: I never felt like this before.

UNIDENTIFIED MALE: It's just a powerful moment in history.

LOWRY: Oprah met Clark after he transformed a classroom in Harlem. That was years ago. So the other surprise came after the check arrived when Oprah called him.

CLARK: I said, how did you come about deciding to send a check for $365,000? She said I was sitting on my couch and she said, "I was thinking about who I wanted to give Christmas gifts to and I thought about you." She said I'm going to send $1,000 for every day of the year.

LOWRY: She sent the money without even knowing about the song the students wrote called "A Letter to Obama."

These fifth, sixth and seventh graders, understand how the gift validated where most of the kids come from at-risk backgrounds.

CLARK: I think we'll see that she has faith in us, and we hope others will have faith in us others as well because we give we give scholarships for all of our students. We're a small school and a small factory trying to change the world. We need support we're constantly fund-raising and we depend on the community of Atlanta to have our backs.

GLORIA NESMITH, PARENT: I'm just excited about the opportunity that the children have, and the children that are yet to come because of the funds that are provided.

LOWRY: in these tough economic times, the spirit of the season shines through.

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COLLINS: Clark says the money will help provide more than two dozen full scholarships for an entire year.

I'm Heidi Collins, join me again tomorrow morning beginning at 9:00 a.m. Eastern. Happy New Year everybody.

For now CNN NEWSROOM continues with Tony Harris.