funded by cbs and welcome to "the early show" here on a wednesday morning. good morning, everyone. i'm chris wragge. >> and i'm erica hill. good to have you with us this morning. we begin with the escalating violence in libya. support for dictator moammar gadhafi seems to be crumbling. but apparently he has not gotten the message. he remains defiant, promising to fight until the last drop of blood. cbs news correspondent allen pizzey joins us from bahrain this morning with more. as you are monitoring things of course, also across the region this morning, allen. >> good morning, erica. well the sign of just how much control the libyan regime has lost, reports from benghazi where the revolt began, the local residents are handing in looted weapons to organizing committees but the fighting is still far from over. gun battles went on through the night in tripoli and there were reports of loyal army units and mercenaries hunting down protesters. the protests appear unorganized, but the determination fierce. reports of up to 1,000 revolts are being described as credible. the crowd showed up in the city's central green square to chant loyalty to colonel moammar gadhafi but it is impossible to judge how much is genuine support and how much is fear. the vr in a rambling speech on tv, the libyan leader raged against what he calls cockroaches, said the protesters had been brainwashed. he described himself as history resistant liberty revolution and urged supporters to hunt down and kill protesters and opponents of the regime. but his control, such as it is, appears limited to the capital and the wst of the country. the eastern half appears very much in the hands of the anti-government forces including soldiers who have switched sides. tens of thousands of people are trying to flee the chaos. >> guns, we want. no security. we can't stay here. >> reporter: an evacuation of foreigners is also under way. the u.s. embassy has organized a ferry to take americans from tripoli to the island of malta. it will leave in a few hours' time. residents who take that ferry will have to pay the price of it, but no one's likely to argue about that. erica? >> likely not. allen pizzey this morning. thanks. joining us from washington now, cbs news national security analyst juan zarate. juan, good to have you with us. we heard some of that information there from allen. of course we've heard what gadhafi said last night overnight. but when you look at the support, the interior minister resigning just after that speech. a number of military, as well. how much control does gadhafi actually have? and what will it take for him to resign? >> good morning, erica. gadhafi clearly remains defiant, though he's starting to lose support. as you mentioned, not only from his minister of interior but from senior military leadership in the east. we saw the example of the two air force pilots flying to malta, defecting. this man has survived for four decades in ruling and has learned to play actors within the libyan contact off each other. he has tribal alliances, military loyalists. so it's still not clear. and what we saw last night, he clearly is defiant, and has pledged more violence here. and so i don't think this is going to end quietly. i think we're going to see more blood on the streets of libya. >> let's take a look at the military in this case. we saw in egypt the military was welcomed by protesters. that is obviously not -- or it's a different case, i should say, because of the way the military is structured in libya. where do they fall at this point? >> well everything in libya's personalized to moammar gadhafi. he has weakened the military as an institution. or at least controlled it in ways that have allowed it not to serve as a challenge to power. and so in some ways it's a fractured organization. one that has regional and tribal loyalties. you've seen defections in the east where the protesters have gained power. but you've also seen for example, loyalists in tripoli defending the regime. and so the military in some ways is not going to be the bulwark that we saw in egypt. >> and if we go back to gadhafi for just a moment as you mentioned, the eastern -- or we heard from allen, too, the eastern half of the country in control of the anti-government forces. gadhafi in some ways almost seems to be instead of the leader of the country, sort of the mayor of tripoli at this point. >> well, you raise a good point, erica. i think what you're seeing is a division within libya that starts to look more like a civil war, the east versus the center of the country. i think what gadhafi is going to try to do is consolidate his power in tripoli, ensure that his loyal forces as well as mercenaries which he may be employing from africa are able to crack down on protesters. right now it's a fight to the death, in some ways. and i think the protesters realize that if they lose this battle gadhafi very well may go house to house hunting them down. >> as he promised in that speech yesterday. when, and if do we see more than international involvement? >> well, this is tricky. it's tricky for the administration, and the u.n. you saw the u.n. meeting on these issues. but i don't think you're likely to see military intervention or physical force used from the outside. i think what you're going to see are more statements, more meetings, but i think people are going to have to watch as this plays out. as the administration has said this is an issue between the libyan people and their rulers. and unfortunately i think we're going to see blood on the streets of tripoli. >> juan, thanks for your insight this morning. >> thanks, erica. that chaos is libya is also causing some jitters over here on wall street. the dow dropped more than 178 points yesterday. that is its worst decline since november. while oil prices skyrocketed 6% up to $95 a barrel. the highest in two years. cbs news business and economics correspondent rebecca jarvis is here with a closer look at what this means for our wallets. so, we saw the unrest across the region. oil now approaching $100 a barrel. but libya is i believe, the 18th largest producer of oil? why then will we see such a spike? >> it may sound like libya isn't that big or that controlling in the oil picture, but the reality is that libya sits atop the world's -- or africa's largest oil reserve. so when you think about future oil, it's a big deal. it's also a big deal because it's a member of opec which controls 30% of the world's oil production. and in addition to that libya falls in a neighborhood that's particularly important to oil supplies. saudi arabia, which is one of the world's largest producers of oil is right in the neighborhood, and the biggest the instability gets the more traders on wall street fear it could expand and saudi arabia could get pulled into the fray. that would be very dramatic for oil prices. >> so that's why we're now just starting to see, there's been so much unrest over the last three weeks in the region. but is that why now we're starting to see the impact on wall street, and on the dow? >> yeah. that's a very significant point, erica. the other issue right now is that as oil prices continue to climb, when we get closer to hat $4 a gallon level, all of a sudden there are implications for the economy. and the economic recovery. and wall street is concerned that at this fragile point in our recovery if prices continue to climb it's going to be more expensive for companies to do business, and it's going to be more expensive for you and me on multiple levels not just at the pump. >> shipping goods, all of those things that involve gas. when will we start to see the impact on the price of gas? >> you're already seeing the impact on the price of gas. but to put it into historical perspective right now prices are well below 36% the low of all-time highs at the pump. we saw $4.11 at the pump in the summer of 2008. we're still a ways away from that, but back then oil tradingwise was $140 a barrel. we're still $100 a barrel. that's pretty close. >> rebecca jarvis thanks. >> thanks. >> chris? >> erica, thank you. now to the devastating earthquake in new zealand. at least 75 people have been killed. but that number is expected to go up. officials say 300 people are still missing. and there are fears the continuing aftershocks could topple more buildings. new zealand's tv-3 has the very latest now from christchurch. >> reporter: tuesday's massive earthquake that hit the historic town of christchurch is being described as new zealand's most devastating natural disaster in 18 years with at least 75 people confirmed dead. >> i saw on the tele and i heard that my friends, they didn't come out. >> reporter: amidst the sorrow there has been good news. rescue workers using drums, saws and their bare hands, braved aftershocks and treacherous conditions to pull at least a dozen people from beneath the rubble that was this building. today at least 120 survivors have been fulled from the wreckage. wednesday, one woman was found after having been buried under the debris for 24 hours. her husband was understandably overcome with joy. >> i'm very happy. my legs are shaking. my heart's involved in a 10-k run. i couldn't be happier right now. >> reporter: local officials estimate as many as 300 people are still missing. and this has left relatives clinging to hope. >> got two wonderful kids, and i think we just want her home here. >> reporter: the christchurch airport reopened wednesday, allowing 800 tourists to be flown to other cities around new zealand. a team of 70 search and foreign rescue experts, mostly from the los angeles county fire department arrived in new zealand. in christchurch, for cbs news. >> joining us now on the phone from christchurch are dwayne goodall and his fiancee joelle hayward. he was trapped for ten hours when his office building collapsed and miraculously walked away with only minor cuts and bruises. good morning to the both of you. >> good morning. >> dwayne, you're at work. the ground starts to shake. tell me, what happens next? what's going through your mind? >> the ground starts shaking. i thought it was just i'm talking to a colleague at the moment. i look up just to make sure the lights aren't going to fall down. i sort of turn around hear glass smashing and just turn around again and i saw the whole roof come tumbling down. the next minute i just sort of wake up laying in complete darkness, covered in roof tiles and what have you. i just sort of couldn't easily move. get up and wander out. as i try i realize i'm just covering in huge layers of concrete, as well. >> were you able to communicate with anyone at that point? i know you had lost consciousness briefly. when you regained consciousness. you said you're there in the dark. could you communicate with anyone? how long were you there? >> i think like a couple minutes. and i sort of felt my way around to make sure i could get my body past, and walked around what was around me, what was possibly going to fall on me. i started shouting out for help and could hear another couple people, and so communicate that way. >> joelle how scared were you, after the earthquake, you tried to reach your fiance you couldn't get through to him. how tough a day was it for you? >> oh, it was horrible. it was absolutely horrible. i had no idea where he was. i didn't know whether he was out for lunch. i didn't know that he was in the building. i didn't know the building was down at this stage. we had no power. no anything so i had no way of knowing anything. i hadn't heard from him, and so i obviously started to worry. and it was just the longest afternoon of my entire life. >> let's fast forward a little bit. you're at the rescue site. you know it's been ten hours, but you know that he is alive. when he finally emerges, i know the rescuers were able to get him away from the pocket that he was kind of trapped in and he's on the roof and you're able to see him for the first time. what goes through your mind? >> oh, my god. just pure and utter relief. tears. i just couldn't believe it. when you saw the building you just looked and thought, there's no way anybody could possibly come out of that alive. you know it was just absolutely smashed. and to see him coming down this crane, and he could see people waving, he didn't know who it was but he just waved back and he looked fit as a fiddle apart from being white with blood and stuff. but just the most amazing thing. i just ran and tackled him as soon as i could. it was so amazing. >> well we thank you both for taking the time sharing your story. we know you're engaged to be married, so we wish you both the very, very best of luck. dwayne happy to hear you're okay. joelle, thank you very much for telling us your story this morning. best of luck, guys. >> thank you. >> thank you. >> one of the good news stories there. we just kind of pray that we hear more of these over the next couple of days because so many people are still unaccounted for there. >> oh, but it is so good to have that good news. can't imagine that moment when it's looked down from the rooftop. jeff glor is standing by at the news desk with a check of some of the day's other headlines on this wednesday. good morning. >> hey erica, good morning to you. good morning, everyone. rahm emanuel is the new mayor-elect of chicago. emanuel, president obama's former chief of staff, was the easy winner in yesterday's election there. taking 55% of the vote in a six-candidate race. he avoids a runoff. emanuel called his election humbling. >> it's a victory for all those who believe that we can overcome the old divisions and the old ways that have held chicago back. >> emanuel replaces richard daley. daley and his father led chicago for 43 of the last 65 years. in athens greece this morning riot police are battling thousands of protesters. the police fired tear gas as demonstrators marched to parliament building as part of a general strike. you can see what's happening there. the protesters threw rocks and fire bombs. one police officer's clothing caught on fire. the protesters were rallying against deep government cuts against salaries and benefits. the budget standoff that continues in wisconsin is having a ripple effect across the u.s. yesterday, unions held rallies in more than a dozen states to support protesters in wisconsin. they oppose republican plans to scale back pay, benefits and union bargaining rights. meanwhile, there's another walkout by democratic lawmakers. this time in indiana. >> roll call says 63 members present. >> the indiana house put a right-to-work bill on hold after democrats boycotted yesterday's session. wisconsin's governor last night told missing democratic senators in his state it's time to come home. >> that's what we're elected to do. make tough decisions. whether we like the outcome or not, our democratic institutions call for us to participate. >> walker says that state workers face layoffs next week if his plan is not passed. and a burst of snow in the pacific northwest. arctic air and snow rushed into seattle, causing problems for drivers on the road. even snow plows are having trouble getting around. it is coming up on 16 minutes past the hour. we turn over to marysol castro for the first time.. >> thanks so much. that's your latest weather. good morning to erica and chris. >> good morning. >> we will. thanks for bringing them, mary. >> thanks. coming up on the"the early show" we're going to take you inside the showdown on the high seas between the u.s. navy and somali pirates. four american hostages were killed, and we'll talk with friends of the murdered sailors. >> also ahead this morning, cellphone controversy. a new study shows just what is happening inside your brain when you're using that phone. so what does it mean for you? 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