matthew chance from the rix is hotel in tripoli. five days now. matthew and 34 journalist colleagues guarded by pro gadhafi forces. >>> we'll continue to cover the very tense events throughout the course of this very program as cnn continues with this coverage for the battle of the future of like yeah. >>> also coming up, his name has been dragged through the mud for months. since rape allegations first surfaced against dominique strauss-kahn in may, he's lost his job and reputation. now the charges have been dropped. we have an exclusive interview with his lawyers just ahead. from tuesday. these are excited opposition fighters who have just gained access to colonel moammar gadhafi's private compound in tripoli. >>> investors think the end of the conflict will will mean the return of oil to the markets. that has spent prices mostly lower. right now brent crude, which is particularly sensitive to what's happening in libya, down 62 cents a barrel trading at $108.86. there hasn't been any great surge down on the back of what looks to be an outcome in

that we've got out of the hotel are crying, emotions are running very high. >> well, we have matthew chanceith us live on the phone. matthew, it's been about an hour, how does it feel? >> reporter: it feels great. it feels absolutely great. we've come back to another hotel in tripoli. there's been loads of people here to meet us. loads of, you know, press who have been following this terrible, horrible situation at the rixos hotel for the past week or so. everybody's been hugging each other. people who have been living cheek to jowl with for the past five days, sleeping in the corridors, wondering whether we were going it make it. you know, it's all very emotional. we were kind of hugging each other, congratulating each other, shaking hands, kissing. it's a great thing to come out of a situation like this. you know, in one piece, there's been no injuries, nobody's been killed. and it's just a huge, huge relief that we -- that we came through it like that. >> matthew, this is suzanne, can you tell us again how it was that you managed to escape this hotel, how this actually happened? >> repor

i understand we have got matthew chance calling in from the rixos hotel. can you hear me okay, matthew? can you tell what your situation is and if you're still hunkered down in the hotel? use yeah, we are still in the rixos hotel. journalists are still in the basement of this hotel as well for the most part, because all around the building here and close to the compound of colonel gadhafi which is a short distance away from the rixos hotel, there have been these ferocious battles rage, presumably, between the control of this area between the gadhafi loyalists still holed up very much in this part of tripoli, and the rebels who, you know, are controlling some areas of the capital as well. there are heavy machine gunfire and all of the journalists in the hotel have their body armor on and helmets because one of the things that happened a few moments ago was that there was what was said to be a sniper firing a round into the hotel. it's not clear from which direction that bullet came. but, obviously, it was another, you know, kind of, you know, decks to which

matthew chance is trapped there. >> we're pretty frightened to be honest michael. we're all kind of like sort of a silence that's gone over us. we're upstairs in the hotel. we've all got our body armor on. we don't know what to expect. there's a sense that we kneel that we've been used. we're stuck here, not able to go out. we don't want to be here. we want to get out of here. but we're not committed to do that. it's almost a situation where we're kept here against our will. what the governments say is that they're taking care of us. the gadhafi loyalists say they're here to protect us. but it doesn't feel like that sometimes up here. >> it's unclear how many gadhafi loyalists remain in tripoli and despite a swift victories by the opposition, it's unclear if this is the beginning of a prolonged urban battle. >> it could go either way until the gadhafi clan is rounded up, a new government in place and people figure out how to live their lives again. there have been plenty of surprises tonight. tonight's radio message and sudden appearance by say eave gadhafi. as it

what's interesting about matthew chance and this hotel, matthew chance is a human shield.. he's captured by a dying regime and where gadhafi is, of course we don't know. he's looking for a spider hole. he's looking for a spider hole. and howling that he says calling on the tribes to rebel, all this is meaningless. the regime has fallen and the regime was just the house of gadhafi. >> people are wondering where he is and i'm sure the opposition would like to parade moammar gadhafi through the streets. arwa damon reported she saw reinforced mercedes speeding towards the airport and the airport has come under fire. so, she's saying it's possible they're trying to carve out an escape route for moammar gadhafi. would it be possible he could get out of the country? >> he could be at the algerian border. take a look at neighborhood of this new libya, free libya, which is what it is, a free libya, it has favorable boarders, tunisia on one side, egypt on the other, but the algerians are committed to moammar gadhafi, they're corrupt like him. he has options. he could go to chad wher

also cnn's matthew chance. he, his crew and other reporters right now trapped inside a hotel in tripoli, not far from where sara sidner was earlier at gadhafi's compound, being kept there by gadhafi loyalists who are armed and in the lobby and patrolling the hotel. the situation is growing more tense by the minute. all of that ahead. but first a quick wrap-up of what was a truly memorable day. >> reporter: in the streets of tripoli today cries of victory barely audible over the non-stop rattle of celebratory gunfire. opposition forces fighting ferociously this morning with remnants of the government army still defending moammar gadhafi's compound. after a siege lasting for hours, the opposition forces break through. >> reporter: this is a historic day! psychologically speaking, this is an important day especially for the rebels who gadhafi said would never be able to break his spirit, would never be able to take the city. but they have taken gadhafi's compound. and you can see now some of the press coming out.

make it to the riox hotel and talk with the international correspondents there, including our matthew chance who is holed up in that hotel. it's very, very disconcerting -- >> sara, sorry to interrupt you. we have matthew now live. matthew chance if you can hear me, obviously another very tense day for you and the journalists in there. you had this extraordinary encounter we are saif gadhafi. tell me what happened. >> it was very strange, indeed, piers. -- >> local time and we're told he was going to give us a briefing which would have been surprising, obviously. but he didn't turn up. he was a no-show so we all kind of assumed it was spin on the part of the gadhafi regime and he really was in custody but they insisted he wasn't. a few hours later, 1:30 local time, a couple hours ago, all this fuss in the lobby of the hotel. i was woken up in my room and everyone was pointing at this white armored land cruiser and they're saying saif is in there. i walked up and knocked on the door, he was about to drive off. i knocked on the door. and it opened up and i said, saif, i want to see you with my

country's energy security and our economy. >>> let's bring in senior international correspondent matthew chanceipoli. matthew you've had an extraordinarily long day and many of us at cnn, around the world quite frankly are very happy you're free after these days of trial and tribulation. could you give us some idea just how you got away? >> reporter: yes, it was, first of all i'm happy about it, too, and i'm happy for all of my colleagues that were with us in the rixos and their families as well who must be feeling exactly the same as i'm feeling this evening, which is ex-supretreme happy after this terrifying ordeal at times. we've come out of it, nobody's been injured, nobody was killed and it's been a really, really positive, positive outcome and so that's really fabulous. we couldn't be happier, all of us. >> again, though, you had a challenge five days you were being held against your will. you were not free to leave. at the end of the day, what was it that led you to freedom. was it a negotiation or something else? >> reporter: >> reporter: well it was, you know, i think it was this, joe,

here is what's great concern with the situation with matthew chance. we have no way of actually contacting him. we have to wait until he checks in with us. the situation there we believe to be deteriorating rapidly. we are waiting for word from matthew as you can imagine, all of us are very anxious to hear from him and the other reporters there. the situation seems to be changing. really by the minute. very tenuous. we're not sure what the latest situation is. if he does call in while we're on the air at this hour, we'll, of course, put him on the air and get the latest. sa sara joins us from green square. what's the situation where you are right now? >> reporter: again, there is a lot of celebratory gunfire. sometimes tracer fire overhead. the situation, there are about 200 people, most of them rebel fighters who have come into green square. i can tell you the last time i was in green square 48 hours ago, this was a whole different scene. people were much more afraid. much more afraid to come out and celebrate. they were in fighting mode. now totally d

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 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 be

matthew chance reporting live from tripoli. situation with security and government minders, as matthew was reporting, leaving the hotel, leaving journalists, really alone in the hotel. a group of journalists their

they have found themselves now in the same situation we are in. >> that was our matthew chance. tough to get in touch with him considering the situation he is in but he had a chance to file that for us within the last hour or so. we hope to get him back on the line to find out what the conditions are there at the rixos hotel. >>> move closer to home now. hurricane irene hitting the headlines. jacqui jeras, looks like you just got a brand-new model in. we were talking about the bahamas. what do we know now? >> we have taken a look at the computer model forecast. these are the spaghetti plots we call them and as we take a look at them, we have noticed an even greater consensus of the those models towards the carolinas that they are offshore. only one model now bringing it out over the outer banks of north carolina. everything is shifting on off to the east. as we take a look at them further out in time, the other new thing we have noticed here is there is an even greater spread as we head into the mid-atlantic and northeast. when we see them spread apart like this, there is greater

that is our own matthew chance in tripoli. bring him up we will give you an update of what is happening there. >> we are exploring who will take charge in libya. we will look at those possibilities up next. ♪ [ male announcer ] they'll see you...before you see them. cops are cracking down on drinking and riding. drive sober, or get pulled over. >>> if rebels succeed and drive moammar gadhafi from power, they are halfway to their goal. some discuss putting together a democratic government, and that's going to be the hard part. we have jill at the state department. and they have rivals and competing goals, and do we think they can work together to form a democratic society? >> that is going to be the ultd mitt question. when the fight something over, and even now you can say the transition has gubegun. they being the national transitional counsel, the ntc, does have a series of detailed plans we're told by u.s. officials in place for what will happen next, when gadhafi goes. now, essentially what they are trying to do is make su

matthew chance, if you can hear me, obviously another very tense day for you and the journalists in there. you had this extraordinary encounter with saif gadhafi. tell me what happened. >> reporter: it was very strange indeed, piers. he was expected at a press conference earlier in the evening about, 11:30 in the night local time. we were told he was going to turn up and give us a little briefing, but he didn't turn up, he was a no-show so we all assumed this was just spin on the part of the gadhafi regime, that he really was in custody of the rebels. they insisted that he wasn't. a few hours later, 1:30 in the morning here local time, so a couple of hours ago. i was woken up out of my room, ran downstairs and everyone was pointing at this white armored land cruiser saying saif, he's in there, he's in there. so i walked up and knocked on the door, he was about to drive off. i knocked on the door. it opened up and i said saif, i need to see you with my own eyes. i leaned in and turned on the light on the ceiling on the back seat of this land cruiser and there he was. so i took a photograph

arwa, we have him right now. >> we should go to matthew chance right now. >> fighting on on the that are? >> reporter: well, yes, i'm in this hotel, the hotel in the center of tripoli. they close to that compound of moammar gadhafi. all morning there has been ferocious clashes, gunfire, explosions taking place in the direction of that compound. you can't see the compound from our vantage point here. at one point, all of the journalists gathered in the hotel moved downstairs into the basement because we felt there was some sort of incoming artillery shells striking areas very close to where the hotel is. there has been a lot of outgoing artillery as well and a huge battle underway at the moment between the rebels and the gadhafi loyalists who we now know to be holed up, to some extent, at least, inside that gadhafi compound in the center of tripoli. and so that is the situation, as i see it, at the moment from our very limited vantage point. >> matthew, i just wondered. you ran into saif gadhafi last night. it was kind of a surprise meeting. he was supposed to be in the custody of the

matthew chance spoke with saif gadhafi and matthew talked about the encounter with anderson cooper a short time ago. >> he seemed very relaxed. he seemed, you know, looking quite good, actually, for a man who was supposed to have been custody for the last 48 hours. he said that was a trick. he made the point that the rebels have come into tripoli. he said that gadhafi forces had broken their backbone and given them a hard time before the door closed and he drove off. but he drove off in a motorcade into tripoli, clearly, into an area which is very much under control of the forces of his father. >> and you say -- he said the opposition had fallen into some sort of trap. what did he mean? the opposition was claiming besides capturing him but that they controlled 90% of tripoli. >> they are saying that. and, you know, i think there are questions tonight about to what extent that's the case. it's very difficult for us here in the hotel to verify how much of tripoli's controlled by the rebels and how much is controlled by gadhafi but i can tell you this, saif gadhafi got into that motorca

we lost matthew chance. i want to recap very quickly. he's inside the hotel not far from moammar gadhafi's compound, which you can see up in smoke. there's fierce battles. our sara siden is on the ground near a clinic very close to the compound as well. it's a chaotic and uncertain scene. we're going to bring more and follow this story as it develops. we'll take a quick break first. we'll be right back. just one phillips' colon health probiotic cap a day helps defends against occasional constipation, diarrhea, gas and bloating. with three strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health. setting that goal to become a principal. but, i have to support my family, so how do i go back to school? university of phoenix made it doable. a lot of my instructors were principals in my district. i wouldn't be where i am without that degree. my name is dr. carrie buck. i helped turn an at-risk school into an award winning school, and i am a phoenix. [ male announcer ] find you

cnn's senior international correspondent matthew chance joins us now from tripoli. you have been staying at that hotel. give me an idea what you and other journalists are feeling about your safety with the gunfire surrounding the hotel. >> reporter: we're holed up on to one of the upper floors at the hotel. the gunfire, fredricka, isn't just outside the perimeter of the hotel. it's all over the city. the whole city is in a kind of mayhem as armed groups, rebels, gadhafi loyalists battle it out on the streets of the capital for control of this city. we've heard from government officials that 376 people were killed in the 24 hours up until a few hours ago. obviously with those fierce gun battles still raging and areas of the capital now confirmed to be in the hands of the rebels and anti-government control, we're expecting that death toll to rise much higher. this fight for tripoli is a very intensive one. it's by no means over or even close to being over at this point, fredricka. >> and is it difficult, matthew, to tell who's side anyone is on? >> reporter: from our

matthew chance joins us now. matthew it is so nice to see you out of that hotel. so many people here and all around the world were concerned about all of you trapped in that hotel. as you look back on it now, what was the most difficult moment? and i know you can speak more freely now. what was the most difficult moment? >> reporter: well, first of all, we're really grateful, all of us, all the journalists here, me and jamanah and all the journalists held against our will. grateful for the support we were getting on twitter and all the other messages that have come to us. it's been absolutely fantastic. really means a lot to us. it's difficult, anderson, to say which was the worst time. i think it was probably because there are so many of them. we were lying on our bellies at one point, hoping the shells that were coming into the compound weren't going to hit us. there were snipers firing into the hotel at various point during the fight, basically we were kept there against our will. but i think the worst time was when we realized quite early on in the situation w

>> and i know you were just talking to matthew chance who had that remarkable breaking news who saiddhafi is alive. opposition had claimed he'd been captured. raises a lot of questions. there have been street to street firefights in the capital. unconfirmed reports tonight of a new round of nato air strikes. we'll talk with a young woman in tripoli who believes she is on the cusp of tastie ining freedo the first time. >> i'm 23 years old and i lived all my life under the control of him. my feeling now, i'm very, very close to my freedom. so i will just -- the moment that i will take it, i would live every womt moment of my lid we doubt his control and his son's control, as well. >> of course we'll also check back with matthew chance or try to get back in touch with him. he's trapped in that hotel in gadhafi's territory. try to get an update on the appearance of his son. >> we will be there. thank thanks, anderson. >>> hurricane irene is causing major flooding and landslides. also the national hurricane center warns eye rain may be a major hurricane by the time it close ngs on the u.s

matthew chance live for us in tripoli. matthew, thank you very much. >>> more pressure on syria as the president assad battles to remove him from power. watch. a scary situation there. opposition spokesman says 29 people were killed yesterday when security forces fired on protesters in several locations. this video is from earlier this month. the eu is calling for an embargo on syrian-crude oil. on thursday, washington imposed stiff economic sanctions on syria. oil and gas make up about one-quarter of the syrian economy. >>> back in the u.s., the car that played a central role in the casey anthony case is now scrap metal. an assistant for the attorney representing anthony's parents say the car was crushed in a junkyard. the prosecutors say the odor in the trunk was human decomposition. >>> convicted criminals and those who pose the greatest threats to national security and public safety are the undocumented immigrants most likely to be deported under a new policy outlined by homeland security chief janet napolitano. her dep

matthew chance joins us now. matthew it is so nice to see you out of that hotel. so many people here and all around the world were concerned about all of you trapped in that hotel. as you look back on it now, what was the most difficult moment? and i know you can speak more freely now. what was the most difficult moment? >> reporter: well, first of all, we're really grateful, all of us, all the journalists here, me and jamanah and all the journalists held against our will. grateful for the support we were getting on twitter and all the other messages that have come to us. it's been absolutely fantastic. really means a lot to us. it's difficult, anderson, to say which was the worst time. i think it was probably because there are so many of them. we were lying on our bellies at one point, hoping the shells that were coming into the compound weren't going to hit us. there were snipers firing into the hotel at various point during the fight, basically we were kept there against our will. but i think the worst time was when we realized quite early on in the situation w

our own matthew chance was among that group of people. he said that they were released when the rebels finally realized that the capital city had been taken. a bit earlier anderson cooper asked matthew about the absolute lowest point in the ordeal. >> reporter: it is difficult, anderson, to say which was the worst time. i think it was probably -- because there were so many of them. we were lying on our bellies at one point, hoping the shells that were coming into the compound weren't going to hit us. there were snipers firing into the hotel at various points during the fight, basically we were kept there against our will. but i think the worst time was when we realized quite early on in the situation we found ourselves in that we'd lost control of the situation, that all these scenarios started playing out in our heads. we started getting paranoid that we could be used as human shields if gadhafi's remnants of his army decided to use the hotel to make their last stand. maybe we were going to be taken prisoner properly. maybe we were going

they're tied to him in some other way, not just because they don't know the reality anymore. >> our matthew chance in tripoli, a free man there tonight. we are thrilled, and once we stop talking to you, i hope you gettam am get some rest. you'll hear the rest of matthew's harrowing story inside that hotel not allowed to leave, later on in the broadcast. >>> in eastern libya, they are calling oil workers to return to oil terminals that have just been abandoned by pro-gadhafi fighters. cnn's frederik pleitgen joins us from near benghazi. fred, what's going on there? >> reporter: well, what's going on right here there is, as you mentioned, a bounty has been placed on moammar gadhafi's head by a rich merchant here from inside benghazi, it's about $1.5 million to $2 million, that's been placed on his head, and it's for capturing him dead or alive as this rich merchant has said. now, this, of course, is aimed not primarily at the rebels here, but it's primarily aimed at people who are protecting moammar gadhafi right now. he still does have some supporters, as we've seen. some of those supporters now un

as we mentioned, our matthew chance is among the journalists being held at the rixos hotel.rogadhafi forces have surrounded it and are not letting anyone out. he spoke with anderson cooper about the tense scene inside. >> reporter: we're still very much in the same kind of grim situation, which is that we're in a hotel, we're in the top floor of the hotel. we've corralled ourselves into that top floor where gadhafi loyalists are still very much in control of this hotel and the immediate perimeter around it. beyond that i can't give you any good indication of what extent gadhafi's forces -- to what extent they have control around this area. but we are very close to colonel gadhafi's compound. obviously we were very close to the fighting that was going on as the rebels wrestled control of that compound from the gadhafi forces. the concern that we have now, anderson, is that we seem to be in one of the few remaining patches of territory in libya which is still controlled by gadhafi's forces. and so we're kind of very anxious about what might happen at this hotel in the hours ah

matthew chance is in tripoli. that they have gotten rid of the traitorous rebels, that's what we're hearing on libyan state-run television. we're not going to go far from the story. the full resources of cnn on top of it, we have our entire crew there in libya, reporters, correspondents there, producers, cameras on the ground, as well. and we're checking on it back here in the u.s. so stand by for more information on libya. >>> here we go now. here in the united states, rain is pummelling the midwest with the chicago and the detroit areas really feeling the brunt of it. our meteorologist, jacqui jeras, is here to tell us about the severe systems that are going through. it looked pretty ominous over the skies of chicago. the air show -- i lived in chicago for a number of years. it's amazing to see. they come right by the buildings. they had to be delayed, right? >> yeah, they did. it was able to go on. they got the people out of the way, told them where to go to stay safe. those storms have moved on. we've got anot

matthew chance is now joining us from tripoli, it is now after 10:00 there in tripoli, so we're hearinghe u.s. officials say moammar gadhafi may be planning his last stand and other rebels are saying it could be any day now, what are you learning? >> well, we just have to wait and see, certainly we haven't seen any sign as yet of a rebel entrance into tripoli itself. we have been witnessing of course those very ferocious and low running battles that have been taking play, in places like like -- because of the control they have over the strategic supply routes in and out of the libyan capital, what we haven't seen is any fighting on the outskirts of tripoli, and if that were to happen, libya is something of a stronghold of support for colonel gadhafi, it's believed that the leader has kept many of his best trained, best equipped trained military in the libyan capital in case they need to step up to defend it. he's also called on all of his supporters in tripoli to arm themselves and to be ready for any kind of rebel advance. so if there is a push on tripoli, then at the expectation is th

matthew chance, appreciate it. stay safe. sara sidner as well, general clark thank you. fran townsend. let us know what you think. we're on facebook. i'm on twitter @ anderson cooper >>> next a deadly day in the streets of syria. it has been yet another deadly day. government protestors targeting -- government forces targeting protestors >>> later three young men convicted of murdering a second grader. the crime drew natural attention, so did developments today. the west memphis three they've been known as. all three are out of prison today. one was on death row. were they wrongly convicted or wrongly freed? crime and punishment the west memphis three tonight. first isha sesay. >> reporter: you have to see it to believe it, and even then a baby in a sfroeler in the back of a pickup. and wait until you hear what the babysitter said about it. that and much more when 360 >>> syria today, 23 killings >>> syria today, 23 killings today alone. in a moment you'll hear from a top syrian diplomat who says that security forces are there to protect protestors, not mo them down with

matthew chance has been inside the country for weeks now.w, you told us about a half hour ago about hearing some gunfire outside of your hotel. is that still happening right now? >> reporter: yes. sporadic clashes taking place in various parts around tripoli. we're also hearing some explosions every now and again. it's not clear what they are. but they're certainly not the pair strikes from the nato warplanes that we've become so accustomed to hearing over the past week or so. these are different. these are grenades, much smaller explosions. obviously indicating that there are still clashes under way between these various groups. the armed forces of moammar gadhafi and the rebels who are staging what is, really, an uprising in tripoli. the question is, to what extent the gadhafi loyalists still have control? certainly government spokespeople we've got access to here in tripoli say that the situation is under control. they say we're just talking about few armed groups that essentially infiltrated various parts of the city, but they've been de

matthew chance, appreciate it. stay safe. sara sidner as well, general clark thank you. fran townsend. let us know what you think. we're on facebook. i'm on twitter @ anderson cooper >>> next a deadly day in the streets of syria. it has been yet another deadly day. government protestors targeting -- government forces targeting protestors >>> later three young men convicted of murdering a second grader. the crime drew natural attention, so did developments today. the west memphis three they've been known as. all three are out of prison today. one was on death row. were they wrongly convicted or wrongly freed? crime and punishment the west memphis three tonight. first isha sesay. >> reporter: you have to see it to believe it, and even then a baby in a sfroeler in the back of a pickup. and wait until you hear what the babysitter said about it. that and much more when 360 continues. [ waves crashing ] [ martin luther king jr. ] i still have a dream that one day on the red hills of georgia, the sons of former slaves and the sons of former slave owners will be able to sit down

just a little more than two hours ago, those journalists, including cnn's matthew chance managed to essentiallyalk their way to freedom. chance got to a camera and spoke live with my colleague suzanne malveaux just minutes ago. >> reporter: they're celebrating their freedom. they're not celebrating my freedom. they're celebrating libya's freedom, obviously. but having been given loads of flowers, i don't think they realize we've gone through this ordeal of being, you know held captive essentially in the rixos hotel. and it's only now we come to speak to you because we've been essentially set free. it's amazing. the whole country -- the whole city is celebrating its freedom. and, you know, i feel a connection with them. i feel a connection with them because i'm celebrating mine, as well. >> you look great. you know, give us a sense of where you are, how you got there, have you had a chance to talk to your family? >> reporter: yeah, so i haven't yet, no, i haven't had a chance. my foreign desk -- my foreign desk in atlanta has spoken to my family. they're aware i'm okay, they'll obviously be watc

matthew chance live in tripoli for us with that update. to that sputtering economy. the dow was down again yesterday, and, of course, the dow has been taking a beating. all of the markets have. president obama meanwhile says there are steps that we can take to spark this economy. watch. >> there are things we can do right now that will mean more customers for businesses and more jobs across the country. we can cut payroll taxes again so families have an extra thousand dollars to spend. we can pass a road construction bill so construction crews who are now sitting idle, can head back to the work site, rebuilding roads and bridges and airports. >> that's from the president's weekly address. meanwhile ohio governor john kasich gave this morning's republican weekly address and he says the real problem is leadership. >>> white house correspondent dan lothian is following the president from his vacation spot in martha's vineyard. dan, as you know, the market lost more than 1300 points in the --? just this month. how is the president dealing with

rixos hotel close to gadhafi's compound, where foreign journalists are staying, including our own matthew chance. matthew is joining us on the phone. matthew i understand the situation where you are has really deteriorated over the past few hours. >> reporter: yes, it has, wolf. it's been really difficult to get any communications out of the hotel. there's no electricity in the hotel and so we're all kind of sitting in the dark on the interior, in the interior sort of upstairs lobby of the hotel because it's a ferocious gun fight outside battle around the compound of colonel gadhafi. some of the bullets have been flying into the hotel. we've also, you know, been sort of, you know, less all of the government officials departed sometimes yesterday as the rebels began their advance into tripoli and what they left behind instead of letting us go out into the streets to do whatever they want they left behind some gadhafi loyalist gunmen in the lobby of the hotel, some of whom are very aggressive so we've all kind of like corralled ourselves on to the upper floors, not getting any information at all a

our matthew chance is hearing gunfire outside one of the main hotels in tripoli.et's go live right now to matthew. what can you tell us is happening around you? [ no audio ] >> all right. we don't have audio from matthew right now. he's at the rixos hotel in tripoli where it's been a harrowing couple of days, is an understatement actually. >> there's sporadic fighting between gadhafi forces and the rebels but it's very sporadic. also snipers on buildings. the reason the communication is iffy is you also have nato forces flying over and blocking communication, satellite communication, so if moammar gadhafi were trying to communicate, that communication would be cut off. sometimes it affects our own transmissions. >> the challenges about the gunfire too, you don't know what is happening. if it's celebratory gunfire, or gunfire between snipers and rebels, there have been some gadhafi tanks that have been rolling out in some parts of some neighborhoods but we know gadhafi really only controls i think less than 20% of the city now. >> yeah. >> and that's going neighbor

cnn's sarah sidner is hunkered down in green square and matthew chance is in the city's hotel, the same hotel where senior libyan officials just fled moments ago. our first correspondent in tripoli, nic robertson, he is in our washington bureau and national security contributor, fran townsend is in new york and zain verjee is following international reaction from left knee done. dan lothian is with the president on martha's vineyard and barbara starr has the military perspective from the pentagon. >>> all right. let's get to tripoli where all the action is right now. we've been telling you about the fighting in and around green square. it's been a big symbol for the gadhafi regime. in fact, until recently, they've been using it for big pro-government demonstrations. cnn's sarah sidner has been watching the rebel invasion and pretty heavy fighting as well. she fired this report before the rebels pulled back from the square. >> finish, gadhafi finish. >> very, very happy. gadhafi finish. >> reporter: we are in green square. what you're seeing behind me, the rebels are now saying there's g

our matthew chance is in tripoli. matthew, bring us up to date. >> reporter: thanks very much. difficult situation in tripoli. up until a few hours ago the government was trying to insist that they had the situation under control here, the gadhafi loyalists. that clearly is not the case. all around tripoli, fierce gun battles are raging among forces loyal to gadhafi and rebels, some of whom have been reported to move in from the western town of zawir. it's not clear to us the exact makeup of the rebel groups at the moment fighting in tripoli. all i can say is there are fierce gun battles taking place, machine guns being fired, very close proximity f. explosions taking place in close proximity to this hotel. where we are reporting on this situation. it's a very, very bleak outlook indeed. according to government officials we have spoken to since last night, there are 376 people have been confirmed dead, another,000 have been injured in what has been, by far, the most intense fighting we have seen in tripoli since this crisis began. it does seem like the battle for the capital is

in the problem that confronts us here and now. >> we're praying for you, walter fauntroy and matthew chanceournalists at the rixos hotel. we'll check in with matthew later. good luck to you and appreciate your joining us here on cnn. let me get quick reaction from the libyan ambassador. you heard the former congressman -- you didn't hear him? >> i was hearing something else. >> he's trapped with the journalists, walter fauntroy. i'll brief you after this commercial break. i'll tell you what he said but it's obviously a very, very worrisome situation, mr. ambassador. thanks very much for joining us. ali aujali, libyan ambassador to the united states. he broke with gadhafi months ago. >>> the most impregnable fortess in gadhafi's empire has been broken. the one thing they didn't find was gadhafi himself. where the suspect in this particular case, where he might be holding up. my grandfather was born in this village. [ automated voice speaks foreign language ] [ male announcer ] in here, everyone speaks the same language. ♪ in here, forklifts drive themselves. no, he doesn't have it. yeah, we'

but it worked out in the end. >> and also matthew chance, he was among those released today as well. along our producer. we'll speak with him a little later about the negotiations that happened inside that hotel lobby with the gadhafi gunman. the journalist who escaped captivity today at the rixos hotel. they couldn't have made it to safety without the help of the international committee of the red cross. robyn joins me on the phone from tripoli. he's with the icrc and robin, congratulations. we have seen this video here, here it is again of our own crew riding to safety on the back of one of your agency's vehicles. can you just tell me how you're able to get so close to this hotel, given the fact this really has been one of the final pockets of colonel gadhafi's control? >> caller: the international commit eave the red cross has been working in tripoli since the beginning of the conflict in february. and to make it possible for us to get here, we had to speak with the libyan government, but we're also talking to the ntc and benghazi, the national transitional council. we knew about

our matthew chance is there. we're expecting him to call in at any moment during this hour. we'll bring that to you live, of course. one of the final gadhafi strongholds in all of the capital city. coming up, i want to talk about the rebels. what started as a group has become an army. close to taking down moammar gadhafi. but rebels in libya are definitely getting help. we'll explain to you these reports of sleeper cells and which moves broke this battle wide open. plus, we're just getting in this brand new video as i mentioned of president obama, he's on vacation in martha's vineyard. he spoke a short time ago on what's happening. these developments in libya. the president uninterrupted in his own words, next. it's good for the entire community. at bank of america, we know the impact that local businesses have on communities, so we're helping them with advice from local business experts and extending $18 billion in credit last year. that's how we're helping set opportunity in motion. [ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip a

it's pitch black out there. >> some of matthew chance, cnn's producer jamana was also trapped in the tel. here's a look at her and matthew talking about their chances for getting out. >> we're worried we're in a very, you know, precarious situation here right now. >> not to use the cliche these days days, very fluid situation. i don't personally believe this is over yet. >> are we going to get out of this, or not get out of this? 50/50, either we will or we won't, right? >> in the end, it was ja mshlgs mana who negotiated the release. what it came down to, a human interaction between a pro-gadhafi gunman and 29-year-old news producer in which they somehow found common ground. earlier i spoke with her about it. in a situation like this, how do you go about trying to develop a rapport with gunmen, try to figure out a way to get all of you released? how did you do it? >> well, anderson, i spent time in libya, this time in a previous rotation, so i got to know the people there. and there are actually many, many really nice people that i've met over the time i've spent there. and this man

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matthew chance is in the libyan capital.there any sign that indeed overt signs that rebel forces are closing in on tripoli? >> well, we've all heard these reports. at least from our reporter to the west of tripoli, that zawiya, that very important, strategic town, is essentially in the hands of the rebel forces. that's had the effect of cutting off tripoli. so tripoli, the libyan capital, is now surrounded by rebel forces. there are other reports yet to be confirmed that the oil terminal has fallen into the happeneds of the rebels. they apparently lost the other oil refinery as well. the regime is looking pretty isolated. >> it seems there are these conflicting reports about whether gadhafi is making preparations to find a pathway to tunisa and maybe with his family along, then there are sources that say now, he's staying put. which is it? >> i don't know in short. certainly, there are a lot of rumors that gadhafi has, other arab countries to take his family. that's something that's been reyekted by the officials we get a ch

cnn's senior international correspondent matthew chance joins us live by phone from tripoli. matthew, you were in that very hotel. tell us more about what's happening around it. >> reporter: fredricka, it's a very bad line. i don't know whether you can hear me right now. it's more than just an outbreak of gunshots that was heard outside the hotel. what we're experiencing here is essentially, you know, a major what appears to be a major battle for control of the libyan capital all over tripoli. there are fierce clashes under way of heavy machine gunfire, rocket-propelled grenades exploding. and that fighting has come very close, indeed, to the hotel where we've all been corralled over the course of the past several months to cover this crisis from the -- from the government's, the gadhafi loyalists' side. up until 24 hours ago, the situation was very stable indeed in tripoli. at the beginning of the crisis, there were some protests. they were put down by gadhafi and his troops. since then for months it's been pretty quiet and stable. all of that has changed. there's utter mayhe

it's pitch black. >> some of matthew chance, cnn's producer jomana karadsheh was also trapped in the hotel. here's a look at her and matthew talking about their chances for getting out. >> are you worried that we're in a very precarious situation here right now? >> well, not to use a cliche' these days, it's a very fluid situation. i'm still -- i don't personally believe that this is over yet. >> what's your feeling? >> we're going to get out of this or we're not going to get out of it? >> i hope we get out of it. >> 50/50. we will or we won't, right? >> yes. >> in the end, it was jomana who negotiated the release. all 36 journalists were freed yesterday. what it came down to was a conversation, a human interaction between the pro-gadhafi gunmen and a 29-year-old news producer in which they somehow found common ground. earlier i spoke with jomana about it. >> jomana, in a situation like, this how do you go about trying to develop a rapport with gunmen, try to figure out a way to get all of you released? how did you do it? >> well, anderson, i've spent time in libya, this time and a pr

our senior international correspondent, matthew chance, is in the libyan capital. so what are you seeing, matthew, and what are you hearing? >> reporter: well, certainly, we've heard very resistant words coming from colonel gadhafi. he's made it clear that were the rebels to advance on tripoli, he will resist that, and he's motivated, you know, all of his loyalists here. there's a lot of support for colonel gadhafi as far as we can make out in tripoli, to stand their ground and be prepared and be prepared to fight the rebels should they advance on tripoli. much of the military effort at the moment, though, appears to be in trying to hold or recapture whatever they can of zawiya, that town where sara's been reporting from. apparently, there are still clashes, as we heard there, with gaffe gaf loyalist forces, but it does seem that the rebels are, more or less, the control of the majority of that town. that's a huge blow for the gadhafi regime, of course, because it settles their communications and supply route to the west and it means that the city is essentially sur