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tv   World Business Today  CNN  August 23, 2011 1:00am-2:00am PDT

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that the rebels lied about this it opens the question about what we can believe about what they've been telling us. they've been saying they control 80 or 90% of tripoli but we know there are areas, pockets of this capitol which are not under rebel control but are under the control of gadhafi loyalists still, piers. >> stay safe, matthew. it's a very chaotic scene and we'll come back to you tomorrow. tomorrow, more with my exclusive interview with jon huntsman. some surprising revelations fro exclusive interview with john huntsman. revelations from the man himself. it's 10:00 a.m. in tripoli, 9:00 a.m. in london and 4 p.m. in long tongue. i'm charles hodson in london. >> i'm andrew stevens in hong kong. you're watching continuing coverage of the battle for tripoli.
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in libya, rebels claim to control most of the capital but gun battles continue in some parts of tripoli. an evacuation boat arrived there today for stranded migrants. the vessel was sent by the international organization for migration and can carry 300 people. to the west of tripoli, renewed fighting is reported near za ware and nato says three surfaces to surface missiles were fired on monday night near moammar gadhafi's hometown. nato is not aware of casualties or damage. the foreign minister is to fly to benghazi today to meet officials of the national transitional council. the chair of the alliance of nations is there to deal diplomatically with the libyan conflict. andrew? >> charles, meanwhile, moammar gadhafi is nowhere to be found. one of his sons, his chosen
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success, saif gadhafi has reappeared. he unexpectedly presented himself in front of cameras outside of tripoli hotel. libyan rebels had claimed to have him in custody. but clearly, free and able to move about, saif gadhafi was greeted by supporters and drove off in an armored land cruiser. another of colonel gadhafi's son, mohammed gadhafi escaped from rebel custody on monday. a third son is the only son currently under arrest. matthew chance is at the hotel where say eave gadhafi made his surprise appearance. earlier, he described his talk with gadhafi's son. >> outside there was a white armored land cruiser and people were pounting at me sago owe i went up to it. i knocked on the window and says, can you open the door, i need to see you with my own
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eyes. he did that. i reached in, turned on the light on the inside of the land cruiser and there he was. gadhafi was meant to be in the custody of the rebels, of course, the international criminal courts in the hague had basically said they confirmed he was in custody. and so everyone had been reporting that this is the oldest son of colonel gadhafi had been captured by the rebels. but here he's a free man. i asked where his father was, my colleague asked. he said everybody, my whole family are in tripoli and he said that the rebels had been essentially lured into tripoli and it had been a trick and that the gadhafi forces are now broken the backbone of those rebels. obviously, him striking a very defiant tone. >> if the rebels were incorrect or lying about having saved gadhafi or mistaken about having saved gadhafi in their custody, it raises all sorts of questions
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about other claims they've made, like controlling 90% of tripoli. do we have any way of knowing what the real status of the fight is in tripoli right now? >> reporter: no. we don't. it is, you're right. it really does catch the rebels out in some shortcomings in their information to say the least. it's difficult for me to give a really good assessment of the extent the rebels have control over tripoli. which areas they have control over, which they don't. it's confined to the hotel. we've got a very narrow perspective on this conflict. i can say this. that even though there's been fighting around this area between rebels and gadhafi loyalists, this area which includes the gadhafi compound, it includes the hotel, includes other key government installations as well, from the -- remains firmly in the hands of gadhafi's loyalists much the government forces. for some time has it been
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occupied by the opposition fighters, the rebels, whatever you want to call them. i understand that there are pockets like this all over the city. what we don't know is to what extent, what percentage, for instance, gadhafi still has control and how much the rebels control it. >> matthew chance there. we'll ask sara sidner, she describes what she witnessed in that rpdly changing city. >> we heard a lot of blasts, a lot of dpun gunfire. >> the rebels said no, that is celebratory gunfire. they have been celebrating again in the city. sometimes, frankly, it's hard to tell the difference. because they're using heavy, heavy artillery to celebrate. we're talking about cannons, anti-aircraft missiles, talking about mortars they're blowing
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off and we saw lots of tracer fire coming just over our heads further into the city than we've seen it before which gave us pause. i want to also speak to something that we're hearing from rebels now. they have been told to clear out of the area, where the gadhafi compound is. saying that they're in coordination with nato and that they may have some action from nato and they've been told to clear out of that area. we've heard that before. we heard that about 48 hours ago when rebels told us we know that we need to get out and get the residents out of the middle of za a and then nato struck the area and it ended the battle there because it got rid of the snipers. we heard from rebels today that inside tripoli, where we were heading down near green square and down by the area, that there were snipers in the area and
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there was definitely some kind of gun battle going on there and we were not allowed to go and see that. however, we did tour some of the city. we went into the main drag of the city from the west, that road a very commercial road, there were residents along the way. it was completely open. we drove straight down it, no problems. there were rebel fighters driving up and down celebrating, waving flags, shooting in the air en skroig their lives, screaming gadhafi must go. saying libya is free. it is difficult to get a sense who have controls what. but they certainly control some of that city because we were in the city literally all day from sunrise to sunset. >> sara sidner there. gadhafi's son say eave says his father is winning. the rebels have a different version of what's happening. >> they say they control most of
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the capital. but gun battles do continue in pockets across the city. a new sighting was reported west of the capital. nato says pro-gadhafi forces fired missiles. that in mind, we get a bird's eye view of where things stand in the capital, tripoli. >> not all of tripoli is in rebel hands. u.s. officials are telling cnn that the city is about 90% rebel-held. here are some of the points to focus on. the rebels have captured state tv. we're told that it went dark on monday afternoon after the rebels took it over. you might remember, this is where on saturday that news presenter actually brandished a weapon on camera while threatening rebels who might try to take over the facility. let's go on to gadhafi's compound. this is an infamous landmark right here. it heavily fortified.
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there is still apparently loyalist troops around this spot where fighting has been reported. if you see here, there's a bunker area on this end, housing at this end here. so this is another area that we're watching very closely. a couple of other flash points. the al that sir hotel. matthew chance reports that loyalist, gunmen have been left at the hotel. there has been heavy fighting around it as well let's go on to green square, another interesting area. this is where we saw the rebels gathering en mass. some of the rebels have been pushed out of the square because they think it might not actually be safe there. they're concerned about sniper positions in and around this whole area. so it is a very precarious situation in green square. that's a look at a few of the flash points that we're watching all around tripoli for you. back to you. >> thanks, colleen mcedwards.
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the conflict in libya disrupted the main source of revenue, oil. does an end to the fighting mean return to the markets? the outlook for libyan oil when we return. .
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one of the reasons why libya was so important was it was a physical disruption. it was the only disruption we saw out of the arab spring. 1.3 barrels off the market. that significantly eroded the capacity. with it remaining strong, particularly in asia, those barrels off the markets really matter. >> well, the prospect of those barrels returning to the markets send the price of oil lower on monday. brent crude is now recovering a bit of lost ground as investors realize if the conflict does end, it will be a while before libyan oil back on tap. right now, brent crude up 66 cents and trading at just over $109 a barrel. now at the start of the
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year, libya was pumping about one and three quarter millions a day and maybe more than that. as tim bolden reports, getting the industry back up and running will take more than just time. >> we seem -- okay. we seem to have some problems there with that particular report from jim bolden. we'll maybe take another swing at it later in the program. but meanwhile, i think andrew, you're about to talk about the same issue. >> absolutely. as you were saying, it appears that libya has a long way to go before it returns to full production, if the markets can be believed with the rise in that brent crude price. let's go to john now. he is live from abu dab i. john, looking at this from a best case scenario, how long will it take to get libyan oil
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back on-line? >> in fact, as charles noted. before the crisis 1.6 million a day. in peaked at 1.8 million a day. we're talking in the next quarter or by the end of the year, get row ducks about a third of that, 400,000 to 500,000 is what the arab arabian country is saying. the tenth largest oil reserves in the world. the big bonanza is the future. we'll talk about that in a moment. the idea here is to ascertain the damage, the. it's the real challenge right now. quite frankly, it's too insecure to go back in and make that assessment. the fields outside of tripoli, we understand, are not that damaged. the basin. they say they need three to four weeks after the fighting stops to make the assessment and then try to get that production up to
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400,000 to 500,000 barrels a day. this is far off that peak of 1.8 million as we asserted. >> you were saying there is an enormous amount of potential in libya for oil production, john. i guess that's why some of the oil makers are looking at it very closely. >> yeah. in fact, if you go back and look at what was taking place between 2006, 2007, it's fair to say all the majors were looking at libya for the production from 1.6 million barrels a day on average in 2010 to three million barrels a day over the next decade. that's on the oil front. on the natural gas front, this is a country andrew, that has the fourth largest reserves in africa. this is no small cry here. you're looking at algeria, you're looking at egypt as major producers of natural gas and nigeria. this is a great new frontier. the other thing we shouldn't forget in terms of its vast
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potential, this is light sweet crude that doesn't need a big refining capacity. so those in southern europe, italy with berlusconi are looking to place oil giants there. a town in good position along with spain, to bring that oil and gas into southern europe. this was the big new frontier on the energy front. for europe especially from an energy security standpoint. >> i'm curious, john, have we heard anything from opec? the oil group throughout the recent events. >> yeah. they've kept a low profile. it's interesting because of the live coverage we did back in june. right before that meeting, about a a week before the meeting, a veteran of the libyan oil business and of the libyan natural oil company stepped down as a sign of protest of moammar gadhafi. he was replaced by a man running the operations until the last
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week. he went to tunisia, apparently to talk to a number of the oil majors to see how long it would take to come back into the country. he's decided to remain outside the country. right now we're dependent on the tnt, the transitional council to see how fast they can have the dialog with the oil majors, how long to assess the fields and there's discussions taking place for example in the uae to see how they could facilitate getting the production back up, as we suggested 400,000 to 500,000 by the end of the year. to get to the 1.6, we know the world needs this crude, the only benefit from the slowdown in western europe and the united states is taking off that great heat we've seen on oil prices which are down about 10% since the uprices from libya -- up risings in libya six months ago. john joining us live from abu dhabi. charles? let's backtrack to that sudden and very unexpected
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dramatic encounter between our matthew chance in tripoli and the son of moammar gadhafi, saif gadhafi. has there been any reaction to the rebel leaders to this sudden reappearance? after all, he was claimed to be in rebel custody. we're join from the libyan city of benghazi, which of course is headquarters for the opposition movement. fred, this seems almost rather embarrassing for the rebels in a way. >> well, certainly seems like a reaction from people on the ground. they've been stunned that they heard that he was not in the custody of rebel fighters there in tripoli. it is something they've said at the head of the transitional council that he was in custody. there hasn't so far been any sort of reaction to this from the leadership of the transitional national council. they haven't seechb told us that they know he was ever in custody or whether they simply went
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ahead and said something that they had no confirmation of in the first place. i wouldn't say that it reverses momentum or anything or decreases their momentum. it is something that stunned a lot of people. of course, charles, it comes at the same time that we've also learned that mohammed gadhafi was apparently in rebel custody in tripoli under house arrest, also managed to escape where he said he was in hijacked, that the forces hijacked that compound got mohammed gadhafi out of there. we're seeing saif gadhafi in tripoli again. certainly, this is something that's stunning to people but it's not something that their momentum has in any way been slowed down. >> obviously, the issue of credibility. you've spent a while in benghazi looking very carefully at the rebel leadership. on the whole, have they been credible? have they overclaimed from time
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to time? >> well, sure from time to time they have over -- there have been claims in the past that moammar gadhafi had fled to tripoli, that he had gone to some other sort of country, claimed that then proved not to be true. there have also been some claims about progress made on the battlefield in the past. something you feel they were not as well-informed as you think they might have been being the leadership here. one of the things to keep in mind, the leadership -- he's still very weak. you're talking about factions, various different groups of fighters from different groups, some of which have different interests as well. so it's not clear how well the leadership of the transitional national council is actually informed about the things that happen in tripoli, how good the lines of communication are. so certainly, it is something where there's been issues in the past. by and large, of course, this is still the main representative -- the main representation of the rebels in libya.
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so they are the ones going forward. a lot of people believe are going to have to run the show after moammar gadhafi feeds power or is ousted from power any time soon, which of course is looking very likely at this point in time. already the leadership of the tnt in benghazi is talking about moving the operations and the leadership into tripoli and take over there once the situation on the ground is safe enough to do that. but yes, the big question is, are these people capable and do they have the backing of people who are fighting in tripoli and other areas to actually be able to run this country for an extended period of time. charles? >> okay. i mean, you say that they will move when the time is right. but are they making any plans? are they starting to pack their bags? have they given any indication as to when they think they've won the battle for tripoli? that will be an important way to judge whether the rebels believe they're in control of the
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capital or not. >> absolutely. that would be the moment when people would feel that perhaps the largest part of the fighting is something that would be a huge symbolic move as well. so far, the only thing that we're hearing from the rebel leadership is that they say once the situation is safe enough on the ground, they will move from benghazi to tripoli. also, of course, because it's a highly symbolic move back, you then have the leadership of this rebel group of the opposition group then actually assuming power inside of the libyan capital. so far they haven't put any timetable on it. one of the things that we have to keep in mind is over the past 48 hours or so, it was looking this might be over quicker than it is looking right now. the resistance was a lot less than we're seeing right now in tripoli. one of the first things they did say is they believed they would move into tripoli fairly soon and set up shop there. so far, it's not clear when exactly it's going to be. there's no timetable on that. in fact, there's meetings with
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foreign leaders, foreign executives planned here in benghazi today. so it doesn't look like this is actually app imminent move for them to move into tripoli, charles. >> fred pligten joining us. still headquarters of the transitional national council. andrew. >> this is the latest developments in libya in a moment. up to date quickly on what's been happening in the markets around the world over the past 24 hours or so. i want to start in asia. a pretty strong day. a lot of the key indices making up ground. there's been good news on an hsbc gauge of manufacturing in china. this is closely watched number at the moment to give you an idea of the strength what's going on in the manufacturing sector. there has been shrinking and taking the broader stock market with it. the latest numbers have come in better than expected. it's still contracting, manufacturing companies are
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saying the output is weakening. but not at the same rate. a little more stable coming in. that gave shanghai a bit of a boost. closing up 1.5%. stocks here in hong kong certainly helped the local market, also got a boost from that manufacturing number as well. in australia, it was all about fosers. they got more than 1.5% on the broad index there after it said it was going to give about $500 million back to shareholders in the form of it was buying back shares. that was certainly well-received. earnings came out. not particularly strong for foster's but investors reacting to the share buyback. that's foster's way to rebuff the miller hostile bid, nearly $10 billion there. so far shareholders seem to be sticking with foster's. all in all, charles not a bad day and erpgs, getting pa being in the spotlight here. generally better than expected. this could provide a little bit of a tailwind for the moment if
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we keep on seeing slightly better than expected earnings as well. >> that's sort of a quick look at the european markets. been open for about an hour and a half. i think weave seen continuation of the picture that you've been talking about with markets up in the case of the london ftse up by one and two thirds of a percent. the zeet rah dax. the zurich smi up as well. quite a strong day. continuing to rally. the optimism that seemed to have stemmed from the situation in libya is continuing. although there's been a lot of skepticism as to how long this rally can last. what about the euro then? >> you say it's volatile out there. it all started in the u.s. yesterday with pretty reasonable gains yesterday and that's what it's looking like today. at this stage, charles, in for
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two days of gains and pretty strong gains as well. if you look at the early reading on futures, the s&p up by nearly 2%. >> i think we'll take it under the circumstances. if moammar gadhafi is toppled, what then? could his fall from power have a profound effect on the arab spring? we'll look at that straight ahead.
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forces to seize balance immediately and make way for a smooth transition. the international will do its
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part to protect civilians from harm. in addition to the u.n. secretary general, other diplomats are taking key roles now in the libyan situation. turkey's foreign minister is set to fly to the rebel stronghold of benghazi today. officials of the national transitional council, the chair of the alliance of nations has worked to deal diplomatically with the libyan conflict. rebels say they control most of the area. elsewhere in libya, zawiya, two of moammar gadhafi's sons earlier reported as captured by libya's rebels are now actually free. among the two is saif ellis lamb gadhafi. he showed up in one of the city's pro-gadhafi strongholds. >> the events is the arab
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awakening or arab spring although it's moving to summer. summer is almost over. mass demonstrations have taken place in tunisia, egypt, yemen, bahrain and other, in iran. if gadhafi is toppled, what effect could that have on the reskron? >> we're joined by john in cnn. within libya, there are divisions, different tribes, different groupings. this is a movement that started in the east. how easy will it be to reunite the country? >> in fact, people are talking about the fall of moammar gadhafi, charles. then the smooth transition. we know that the council has its roots in -- is trying to unify the country. it's important to take a step back and say it's an umbrella organization. at different stages of this process over the next three to four months, we'll see different members of different tribes, look, i played this role in the
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up rising, i had that role in tripoli, i had that role in the battle over brega. i want this stake in the political reshaping of libya and the economic reshaping of libya as they try to get that oil production back on-line again. >>let look further afield, john. in terms particularly of syria. it would appear that libya is going to be the third country to -- where the regime will change. what price syria and the president there. >> we went through this period, charles, as you know the last couple of month, where there is an arab spring fatigue. you didn't see movement. you had people constantly what's going to happen next in libya, what's going to happen in the other countries, what's going to happen in syria right now? i would imagine the view is quite different the last 24 to 48 hours where different camps plotting that struggle in syria are reinvigorated and from the
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view of ba seer al assad who tried to pitch this as a battle, that the west should not intervene. that argument doesn't hold as much weight going forward as you see the events transform in libya, particularly in the battle over tripoli. >> let's return to libya. because clearly, moammar gadhafi made himself fairly unpopular with his fellows. how much solidarity do you think we'll see in the reconstruction, in the reconstruction of the -- in reaching out to the new regime that's likely to emerge, perhaps in the next few days? will there be money? will they dig deep to rebuild libya? >> this is very important point, charles. who is going to lead that process? at the last g.a. summit and the g-20 summit, there was an effort by france to consolidate and talk about a marshall fund for egypt and tunisia. one would say the argument, of
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course, this should include libya in the transition. this is a big fight going forward. but we also should put into context, this is not a country like egypt of 80 million people. this is 6.5 million. they've been living under the rule of moammar gadhafi for better than 40 years. it's somewhat dysfunctional leadership. very strong personality. but not a lot of institutional structure. so who is going to fill the void? i find if fascinating that the arab league came out in the last 24 hours and saying they support the solidarity with all the efforts of the national transitional council going forward. will the arab league under this umbrella now and take the lead and bring in the gulf states, saudi arabia of course, cuts are being active in libya to pool the resources, their reserves, unite that with the world bank and provide a smooth transition
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for the council. there's a window of opportunity that they've placed, four to six months after an uprising to get the institutional structures in place so a government can come back up and have a smoother transition to leadership. this has been a challenge in iraq. if you look at the iraqi example, it took three or four years to get stability. they don't want to see that in libya. if they can get the oil production back up, they can get that growth of 10% that they had in 2010. >> okay. thank you for joining me live from abu dhabi. thanks very much. still a lot of questions out there. china appears to have made a choice in who it supports in the libyan conflict. up until recently, china had hosted pro and anti-gadhafi delegations inside libya. at the u.n. it abstained from voting on a no-fly zone over libya. let's see what china has been saying and what's the decision? >> andrew, it looks like beijing
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is turning into a fair weather friend of the libyan government. chinese foreign ministry spokesman said this. beijing respects the choice of the libyan people and "wants to play a positive role in rebuilding libya." that spokesman basically the translation here is that beijing recognizes that moammar gadhafi is on his way out and they're actually repositioning their allegiance. putting this into perspective against oil, basically, it's interesting to note that 11% of libyan oil went to china when the north african country was at peak production. first part, china is the world's second largest oil consumer after the united states. so it stands to reason that china wants to be seen as friendly to libya's leaders, whoever they turn out to be. >> so we've got a fairly clear response and indication from the political leadership in china. i mean, what are we hearing from people on the streets there? >> the people on the street, reactions are pretty diverse as the country is 1.3 billion
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people. some are supportive of gadhafi's fall. some are against the nato interfeens around some are sarcastic. china's version of twitter has these comments. one supporter says this. lessons learned from gadhafi's downfall. one, never point the gun at your own citizens, never neglect your citizens and never disregard widespread global values. a critical comment. western nations are finally able to make libya their colony. libya's oil will continuously flow into the barlts of the corporate giants. there are some sarcastic comments as well. what if gadhafi continues to rule? go back into libya to find more oil. this person says there is no forever friend but only forever interest. bye bye our old gadhafi friend. state-run media used to call gadhafi china's old friend. looks beyond libya here.
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says here after gadhafi surely comes syria. there are not many old friends left for china. criticisms from the on-line world, especially looking ahead to syria. >> as they say a week is a long time in politics. thanks very much for that. charles? >> okay. well, let's bring london into this complex libyan picture. expressing support for the national council with an emphasis on maintaining the safety of civilians. set to lead a security council meeting on libya this morning. phil black joins us with more. the brits have been strongly involved in this through nato. their planes have been among those carrying out air strikes against gadhafi's forces. >> they say they're looking ahead really. we've found out there's a number of phone calls taking place overnight between the british
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prime minister, qatar and the u.n. secretary general. they say that the conversations all followed a number of key themes. generally, brought welcoming to the key developments going on in tripoli. commitment to maintaining the military operations there for as long as gadhafi supporters are armed. and are fighting back. but the language from all of the leaders is very much that this is a result that's already being secured, if you like. affecting waiting. they're urging gadhafi to give up the fighting and prevent unnecessary bloodshed. as such, they're already looking ahead, beyond the conflict phase too. we've heard david cameron talking about the fact that his officials and members of the libyan transitional council have been talking about post-conflict planning. this is a lesson learned from iraq, i think. the importance of bringing in governance, security, humanitarian assistance,basic services very, very quickly after the conflict phase comes to an end.
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and so that's where a lot of the language from these leaders is now pointing. >> there are reports obviously this morning that british companies are daud willing in terms of getting in there. presumably, they will get a strong vote from the government in terms of pushing them to make sure that, if you like, there's a payback for all of the mill tear effort that britain has expended. >> i think there's certainly an idea or feeling to be seen as a friend of the new libya as it emerges is worthwhile enterprise given the oil resources. ment development that needs to take place as the conflict wraps up. i'm sure you're going to see companies moving in there very, very quickly to try and secure some of that business. i think that's still several stages away. in a diplomatic sense, it's probably going to move towards the united nations security council. that's what david cameron is saying to lock in an international plan for helping secure and help the new libya.
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>> just before i say thank you to you, phil, very briefly, have they -- about what should happen to gadhafi and his sons now? >> in an open, not explicit as such. david cameron expressed his personal view, that is that gadhafi should go before a criminal court and face justice for his crimes. but very much he says this is now an issue for the new libya to decide. >> phil black joining me live. many thanks to you. andrew? charlts, we're going to take a short break. when we come back, we need to update on a storm across the atlantic. its name is irene. winds as strong as 100 miles an hour. we'll tell you where it's headed next.
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another clear day in hong kong. hot, but as you can see, very, very clear. a little different story further west.
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the first atlantic hurricane of the season hitting the caribbean on monday. more on the powerful hurricane irene and where it's headed, let's turn to our meteorologist at the cnn weather center and has been following irene. irene getting bigger and bigger, jen? >> yeah. it has been getting bigger. right now it's about 85 kilometers east, northeast of the dominican republic. roughly about 50 kilometers. you can see on the satellite imagery, moving to the north of dominican republic and rain being felt through parts of the d.r. and puerto rico. we'll continue to see our weather conditions deteriorating in the path of hurricane irene. right now it is a category 2. but it looks like within the next 24 hours, tuesday it's going to become a major hurricane. the winds have been holding steady at 157 kilometers per hour. as we go into tuesday, the late afternoon, as well as into the evening, it's going to be very close to right on top of the turks and caicos as well as southeastern parts of the bahamas, with winds 194
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kilometers. look what will happen. as we go to the northwest winds 204 kilometers and eventually you can see 204 just to the east of florida. as we go through wednesday morning, it's going to be in central bahamas and into thursday, you can see where the location is going to be. still some uncertainty as we go into the weekend. it's going to be skirting, looks like along the coastline of the u.s. right now, we do have a hurricane warning in place. anywhere you're seeing in red, that includes bahamas, turks and caicos and the dominican republic. we want to show you video of the dominican republic. you're looking at rough waves, this is flooding there. this is ahead of hurricane irene. when it was a tropical storm bringing heavy rainfall across the region. conditions will look worse there because that storm system is so much closer to the region. again, it's going to continue to pull away from dominican republic as well as haiti, right over to this graphic here. this is going to help you visualize as we go to the graphic, the track of hurricane
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irene. you can see that center of circulation working over towards the west. as i said, still some uncertainty. let's go to video out of florida. florida already under way. you can see people buying water, buying wood to close up windows, prepare for hurricane irene. again, heading towards the u.s. as we head into the end of the week. finally, i want to take you over to our google earth quickly. this is out of the u.s. state of colorado. we've had a series of earthquakes and aftershocks across the region. andrew, charles, we're talking the strongest they've seen in 40 years. a 5.3 very shallow reportedly we're hearing reports of rock slides in parts of colorado located 200 kilometers to the south of denver. back to you. >> okay. jen, thanks very much for those updates. general delgado at the weather center. charles? >> libya, without moammar gadhafi. it's the ultimate goal for the rebel forces.
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welcome back. we're live from cnn hong kong and london. you're watching continuing coverage of the battle for tripoli here on cnn, the world's news leader. updating you on the libya situation, rebels claim they
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captured moammar gadhafi's sons saif al islam. but he greeted reporters and spoke with our matthew chance. cnn cannot verify his claim but still no sign that colonel gadhafi as such, but his son says the libyan leader remains in tripoli. meanwhile, rebel forces continue their push to rid tripoli of pro-gadhafi forces. opposition fighters tell cnn several fierce battles continue. nato confirms it's dropping leaf lets in zawiya urging them to give up. >> one of the seven biggest in africa. how it developed will be strongly influenced by what happens in the coming weeks and months. of course, a smooth transition of power and money is one of the big ifs of the libyan up rising. one man who knows approximate this is ian rudolph at global
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insight. it's one of the few companies to rate libya's creditworthiness. maggie lake asked him about libya's economic potential. >> heavily dependent on oil and gas, in particular gas is the real potential here that's untapped. but it is a closed economy until recently. very much under the age is of gadhafi and his cronies. only slowly has foreign investment been looking into the country for opportunity. oil executives -- it is favored the world over. because of the political risks, it is a land of opportunity for oil and gas people. >> jan, we'll talk about the challenges. there are many in any kind of transition like this. but ben weeder man pointed out before that it's very different than a situation in egypt and although there are challenges that libya does have some positives going for it in terms of its location, agriculture,
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some other industry, literacy. how do you rate their potential to make a smooth transition economically and be able to get to reconstruction quickly? >> well, the most important advantage libya has, it doesn't have any debt. banks want to lend to the country. it didn't really want to borrow much either. he wanted lot of gold in foreign exchange, after $60 billion worth. as well as a fund worth $40 billion. one problem they don't have is money. they have lots of money and foreign assets. they could use that very quickly to stimulate reconstruction development. the other thing they have is they've already got the infrastructure into europe with which to supply oil and gas. so it's there. the infrastructure is there. it could be upgraded. so with the right political conditions, the rule of law has to return, if security
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established in the transition, then investment will come in. and they will be able to ramp up oil and gas production fairly quickly. but this is a country with a small population, highly educat educated. hypercapita income. they have a lot of tremendous advantages over others in their region. >> of course, coming from 42 years of iron rule, very little entrepreneurial spirit, they still have high unemployment, what should the priority be for the next government in terms of the economy? >> well, i think the stability is absolutely key. particularly security. security is necessary not just for the civil population but it's also necessary to do business. and businesses like households, need to have public utilities working. telephones, telecommunications, water. all the basic stuff that we take for granted. also, businesses rely on them. that should be the immediate
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focus. the public utilities need to be re-established. there has to be rule of law. the rule of law would encourage foreign direct investment to look into the country. and there's great promise here. but the key over the next few weeks is the security situation. re-establishment of the rule of law. we don't want any tribal vengeance in the next few weeks. that's the worst thing that could happen. jan randolph there. switching gears, sexual assault charges against dominique strauss-kahn are a step closer to being dropped. in an about face, the district attorney dismissed the charges. that recommendation must still be approved by a judge. the district attorney's office says it's because of new evidence and questions about the accuser's credibility. >> housekeeper claims strauss-kahn, a former french finance minister attacked her in a new york hotel.
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she's also filed a civil suit against him and counter suing for slander, andrew. legal shenanigans or certainly legal developments. made mention of an attorney after goldman sachs investors. the bank's stock dropping by 5% on monday to a new low this year. that was in response to lloyd blank fine retaining a high priced attorney. this is taking a u.s. investigation very seriously after lawmakers released a report in april saying the bank misled both clients and congress. make sure you stay with cnn for continuing coverage of the battle for tripoli. we'll have much more in the hours ahead. i'm andrew steechs in hopping kong. >> i'm charles hodson in london. you're watching cnn, the world's news leader. goodbye for now.
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