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CONNECT THE WORLD

Germany Votes to Expand the European Bailout; Interview with Mohammed El-Erian; NATO and U.N. Disagree on Violence in Afghanistan; Carlos Tevez Suspension

Aired September 29, 2011 - 16:00   ET

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


BECKY ANDERSON, HOST: Victory for Angela Merkel, as Germany votes to expand the European bailout.

But will it be enough?

We're going to ask one of the world's leading traders.

This is CNN.

Live from London, I'm Becky Anderson.

Also this hour...

(BEGIN VIDEO CLIP)

ALBERTO ALVAREZ: He had his hand with his palm open and he was giving chest compressions in this manner.

(END VIDEO CLIP)

ANDERSON: Conrad Murray's desperate efforts to save Michael Jackson revealed in a California courtroom.

And...

(VIDEO CLIP)

ANDERSON: -- fans in Argentina rally around Carlos Tevez as FIFA weighs in on his alleged refusal to play.

That's all coming up in the next hour.

First up, though, tonight, it's Europe's largest economy and right now, it is holding the purse strings to keep the Eurozone afloat. That is why today, Germany's vote was so crucial, not just for the expansion of Europe's bailout fund, but for the future of a leader key to solving the debt crisis.

Let's kick off this hour with Frederik Pleitgen.

(BEGIN VIDEO TAPE)

FREDERIK PLEITGEN, CNN CORRESPONDENT: In the end, the law to expand the ESFS passed the German parliament with an overwhelming majority. Now, it wasn't expected that the vote was going to fall through because the opposition parties had, in advance, already said that they were going to vote for the measure.

But the big question was whether or not Angela Merkel was going to be able to garner enough votes to actually get this measure to pass.

In the end, that's exactly what she did. There were 13 dissenting votes from the governing coalition. A lot of them, obviously, came from the Liberal Democratic Party. The others came from Angela Merkel's own Christian Democratic Union. Certainly, that is something that didn't make her all too happy. But in the end, she had quite a comfortable majority to actually see this vote through.

It was an interesting parliamentary debate today in German parliament, where the parliamentarians were really very matter of fact. It seemed that they were very much aware of the responsibility that they carried for saving the Eurozone and especially, also, with the prominent role that Germany plays in all of this.

In the end, also, the vote certainly did reflect that. And one person who is certainly breathing a sigh of relief tonight is German Chancellor Angela Merkel, after getting this vote through the house of parliament. It certainly would have been terrible for her reputation, for her standing not only here in Germany as far as governing this coalition, as far as governing this country is concerned, but also, of course, right now in the process to stabilize the euro and to stabilize the Eurozone, where, of course, Europe is looking to a strong German chancellor, this being the largest economy in Europe and certainly if this vote hadn't passed or if she hadn't gotten her own majority, that seriously would have been a big issue for her capacity to govern the country and, in fact, for her standing all over Europe.

Frederik Pleitgen, CNN, Berlin.

(END VIDEO TAPE)

ANDERSON: Well, Angela Merkel is certainly cracking a smile there. But the expansion of the rescue fund remains a contentious issue across the country, particularly since Germany pays the biggest share. To give you a sense now of just how this fund measures up, this Stability Fund, I headed to a German bar here in London.

Take a look at this.

(BEGIN VIDEOTAPE)

ANDERSON: At this Bavarian beer house in London, the vote has been a hot topic of conversation, as you can imagine.

But what is this European bailout fund all about?

Come inside with me. I'm going to explain.

The original fund had a lending capacity of some $340 billion. Now imagine that as a round of beers. Take a look at this. Each of these represent one of the bigger country's slices of that round. Germany, well, it's tasked with some $167 billion. France up next. It's bill was $121 billion. And Italy, well, it stumped up about $100 billion.

The smaller glasses represent the smaller countries in the Eurozone who chipped in, well, a little bit, like Ireland, Slovakia and Cyprus.

The problem, though, is this. Even before people started tapping the Fund, it became clear that the likes of Greece, Ireland, Italy, Portugal and Spain were guzzling up this money.

So, we're going to need more. It's going to become more expensive. And that is effectively what the Germans have signed off on today.

The lending capacity of the new Fund or round, as it were, is some $600 billion. And the Germans, Mia (ph), come and pour for me. The Germans have decided, well, they'll stump up nearly double what they had suggested before, some $287 billion.

The French, pour away, Mia, they're going for nearly, well, just over $200 billion.

And the Italians, an extra $80 billion. Some $187 billion will be their bill going forward.

Again, the little countries, well, they're still chipping in a little bit.

So where does that leave us?

Well, the Germans, like the Spanish and the French before them, have agreed to pay some of this bill. And it's hoped by the middle of October, that everybody else will have agreed to do so, too.

Heressclung, bitte (ph).

Thank you, Mia.

Oh, look at the bill. Oh.

Really?

(END VIDEO TAPE)

ANDERSON: Well, I wrote in figures, it's got be said. But without the bailout fund, the cost of the crisis, well, it would be a whole lot worse.

(BEGIN VIDEOTAPE)

DIANA MAGNAY, CNN CORRESPONDENT: Experts fear that a Greek default could send shock waves across the global economy and even bring about another financial crisis. That's despite the fact that Greece is only ranked 32nd in the world in terms of GDP.

Banks fear that a Greek default could drag down other Eurozone economies, like Portugal, Ireland, Italy and Spain, and also that they could infect French and German banks who hold billions of dollars worth of Greek sovereign debt.

Furthermore, that infection could spread to the U.S., because of the close ties between U.S. and European banks.

(END VIDEO TAPE)

ANDERSON: Well, I'm not going to be telling anything you don't know when I say that, for now, Greece is desperately trying to keep its head above water. Right now, a team of auditors known as the troika is in Athens to decide whether Greece is doing enough to tackle its debt.

John Defterios is there.

And earlier, I asked him how the visit was going.

This is what he said.

(BEGIN VIDEOTAPE)

JOHN DEFTERIOS, HOST, "MARKETPLACE MIDDLE EAST": Well, we have a number of cross currents at play. When we're speaking right now, Becky, we've got a -- a rather peaceful rally taking place. This is "Won't Pay" movement that's been gathering momentum recently because the -- the tax increases they've seen and the salary increases that are now in place.

This is what greeted the troika when they arrived. The members of the troika here are trying to close some very serious gaps, a half a billion euros in the near-term for the 2011 budget and then to find another 10 billion euros between 2012 and 2014 to have a draft agreement on the table for the Eurozone finance ministers' meeting on Monday.

So a lot to do. And in that backdrop, Prime Minister Papandreou held a cabinet meeting to review his meeting with Angela Merkel, which took place Tuesday, and the meeting he has with President Sarkozy of France tomorrow.

So you can see the cross currents that I'm talking about here. Things need to fall into place.

And the Greek people are saying, look, hold on here. There's some resistance still.

ANDERSON: Remind us who the troika are and what they're trying to achieve.

DEFTERIOS: Well, the troika is the European Union, the European Central Bank and the International Monetary Fund. And if you will, in very simple terms, this is the police of the -- the bailout package. So they're entering phase two of the rescue package, signed in July, of $160 billion.

But we have a credibility gap here and this is why the troika is playing a very important role. The Greeks have promised a lot in terms of austerity. And it's now in the last month, particularly in the last week, that the austerity has stepped up. But the troika wants to monitor. If you're going to tax people this much and you see the salary increases in place, can you actually collect the revenues that you're hoping to work?

Because these are not structural reforms. They're trying to solve the problem through a tax and cutting spending. And this is very difficult and a very big challenge for the Greek government.

ANDERSON: How are the new austerity measures being received by the Greek people?

DEFTERIOS: Well, you know, it's a -- it's a very interesting indicator today. Finance ministry employees blocked the entrance to the ministry. These are the people who are supposed to be administering the tax hikes and the collection, tax collection, which is quite severe. And this happened at five other ministries, as well, today.

So we've entered a whole new phase. I think the -- the people are very fatigued, but at the same time, they're kind of saying, look, a 20 percent salary cut and up to a 40 percent cut in my pension, we're not seeing layoffs, but these are very, very severe cuts.

I think it's an indicator of what's going on.

(END VIDEO TAPE)

ANDERSON: All right, well, that's -- that was John Defterios, of course, in Athens, as Greece attempts to prove it's doing all it can to stem the crisis. The focus increasingly falling on the rest of the Eurozone to do the same.

And while today's vote in Germany is a step forward, the question now is whether it is too little too late.

To answer that, I'm joined from California by Mohammed El-Erian.

When he speaks, the markets generally move.

He's the CEO of the world's biggest bond investor, PIMCO.

So I guess the first question is simply this. The Germans have signed off on this.

Is that good enough?

Are we out of the woods?

MOHAMMED EL-ERIAN, CEO, PIMCO: Becky, if they hadn't signed, we would be in -- in big trouble. So the question of this as very important and very, very urgent. So it's good news that they approved it.

Now we have to focused on the very important and very urgent. One of it, as you just said, is to stabilize Greece. Second is to get these funds into the system. And there's no mechan -- mechanism as yet. And third, the Europeans have to decide what do they want to look like in three to five years time.

So it's an important step, bison a small step along a very long journey, unfortunately.

ANDERSON: What do you imagine is going to happen next?

I am hearing, certainly, that the Germans today voting on the $600 billion fund. That's only the beginning. It may be as big as $2 trillion or $3 trillion going forward, which is an awl lot of money.

So what happens next?

EL-ERIAN: So behind closed doors, I suspect that people are asking that very question you just posed, Becky -- how do we get this amount levered up so that it becomes a big bazooka, if you like. And they're looking at different ways to do it, but also recognizing that the appetite for bailouts is pretty limited.

So it's a very delicate political and engineering challenge.

ANDERSON: Mohammed, Christine Lagarde of the IMF said the other day, and I quote her when I say, "We are in a dangerous phase. We may be looking down the barrel of a lost decade here in Europe."

Do you buy that?

EL-ERIAN: I'm afraid I do. I think she's absolutely right. If our policymakers, both in Europe and the U.S., don't get their act together, then we are looking at years of low growth, years of high unemployment and the possibility of recurring financial crises. This is a pivotal moment for the global economy. And it's one where the rest of us are basically in the back seat looking to our policymakers to drive us through this new road, if you like...

ANDERSON: Yes, OK.

EL-ERIAN: -- a very bumpy one. And so far, they have -- they haven't done so well.

ANDERSON: But, Mohammed, you -- you and I know, these guys aren't good enough. I've been saying this for 18 months and you've probably been saying the same thing behind closed doors. These policymakers, if they were going to get it right, they'd have got it right 18 to 20 months ago.

So the next question is simply this, as one of the -- as the CEO of one of the biggest bond -- or the biggest bond trading company in the world, would you buy any European debt at this point?

EL-ERIAN: Well, I certainly wouldn't buy the peripherals. So I wouldn't buy Greece. I wouldn't buy Portugal. I'd be very cautious about the others. We're comfortable with Germany. We're comfortable with France. So we differentiate among the different European countries.

But the key issue, Becky, is PIMCO, like everybody else, is becoming more cautious. I mean it's amazing that there are these healthy balance sheets. Multinationals have $4 trillion of cash and they won't engage because they don't trust the policy-making apparatus.

ANDERSON: There's been much talk that the financial markets are making hay while the rest of us feel incredibly depressed about what is going on politically across the European, and, indeed, U.S. space.

Is this a money making opportunity for -- for traders, for the likes of you and others in the markets?

Of course it is.

EL-ERIAN: I think right now, people should worry much less about the return on their capital and much more about the return of their capital. To go back to what Madam Lagarde said, we have entered a difficult, "a dangerous phase," to use her words, for the global economy. And capital preservation becomes very important in this world.

ANDERSON: In a word, what happened today, good, bad or indifferent?

EL-ERIAN: Good, necessary but far from sufficient.

ANDERSON: Mohammed, always a pleasure.

Thank you for joining us this evening.

Mohammed El-Erian. Listen to that man. He knows his stuff.

Coming up, a roundup of the other stories making news today, including the U.S. ambassador to Syria surrounded by a violent mob in the capital. How he escaped, up next.

Then, the chaotic scene inside Michael Jackson's bedroom as the singer lay dying. His final moments revealed.

And to catch a thief -- how the FBI tracked down a fugitive four decades after he did the deed.

And who else have they got their eye on?

That's coming up.

Stay with us.

(COMMERCIAL BREAK)

ANDERSON: Welcome back.

Sixteen minutes past 9:00 in London.

I'm Becky Anderson.

You're watching CONNECT THE WORLD here on CNN.

A look at the other stories that we are following for you this hour.

And the United States is accusing the Syrian government of a campaigning to intimidate diplomats after a violent incident in Damascus. It says pro-government mobs tried to attack U.S. ambassador to Syria, Robert Ford, throwing rocks at his convoy and later, trying to storm an office where he was visiting an opposition leader. Security forces eventually arrived on the scene. No embassy staff were hurt, we are told.

Well, the United Nations and NATO are in a rare public disagreement over the level of violence in Afghanistan. After the U.N. released a report documenting a troubling rise in violent incidents, NATO said, well, they're actually trending down. Even as they sort out the discrepancy, we are hearing of eight more NATO troops killed across the country.

Nick Paton Walsh is following all of this for us tonight from Kabul -- Nick.

NICK PATON WALSH, CNN CORRESPONDENT: Absolutely. These eight dead happened yesterday, three killed in one blast in the east and three killed in another in the south. Two others killed in separate incidents.

I think what this really has done is focus people's attention upon this dispute, frankly, between the United Nations and ISAF as to whether violence is improving. The U.N. came out yesterday and said the violence was 39 percent up compared to last year. That's what they refer to as security incidents.

But, strangely, today, ISAF, for the first time, came out and released some numbers for themselves, saying they believe over the same period, the violence was actually slightly trending down.

This is all really about accountancy, frankly. The U.N. count violence in one way. They look at all the violence across the country. That's the insurgents' violence, the things the insurgents have done and then things that ISAF have initiated, NATO have initiated.

On their side, NATO just look at attacks that the insurgency have begun themselves.

So very different ways of looking at things. And, of course, incredibly different numbers.

And this really goes to the heart of exactly how stable Afghanistan is. Remember, the U.S. wants to start drawing troops down and handing security over to Afghan forces. They can't do that if things are getting worse -- Becky.

ANDERSON: Nick Paton Walsh in Kabul for you this evening.

Nick, thank you for that.

Well, U.S. authorities say an undercover sting operation has netted an American citizen who was planning violent jihad. They have charged a 26 - year-old Massachusetts man with plotting to bomb the Pentagon and the U.S. Capitol using a remote-controlled model aircraft filled with explosives.

Well, Rezwan Ferdaus is also charged with attempting to assist al Qaeda, although officials say he has no real ties to the group. He is due in court on Monday.

Well, if there is no proof, you have to absolve -- a plea from a lawyer for American Amanda Knox, as her murder appeal winds down in Perugia in Italy. Now, she and her ex-boyfriend, Raffaele Sollecito, were convicted of killing Knox's British housemate, Meredith Kercher. The judge says a verdict in their joint appeal won't come before Monday. Do stick with CNN for that.

Well, the one place in New York where you can escape singing telephones and beeping BlackBerrys is fast disappearing, apparently. The city's subway has turned on its first cell phone antenna, allowing some mobile phone users, at least, to make calls and surf the Net from a handful of stations. The plan is to extend coverage to all 271 stations by 2016. And these New Yorkers, well, they think it's a good idea.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think it's long overdue. But I don't know how, I'm a fan of the checking the e-mail. I don't know if I'm a fan of being able to talk, because everybody will be talking all the time like when you're on the bus. But I do enjoy the fact that you can check your e-mail, especially on the long commute.

UNIDENTIFIED FEMALE: I think it's great for emergency situations to have a cell phone working down in the subway.

UNIDENTIFIED MALE: It's a step in the right direction. I think that this is something we should have always had regardless, you know, as a First World country.

(END VIDEO CLIP)

ANDERSON: New Yorkers for you now.

A new freedom in Cuba could soon revolutionize streets that are seen stuck in, well, we can only call it a time warp, really. The first time since the 1959 revolution, all Cubans will be allowed to buy and sell cars. If certain requirements are met, that includes new vehicles. Until now, only cars built before the revolution could be bought and sold. The new decree takes effect Saturday, part of President Raul Castro's promise of economic reforms.

Well, back here in the U.K., the Duke and Duchess of Cambridge have opened a new cancer center for young people in London. William and Kate met medical staff, young patients and their parents during the tour. An excited crowd gathered outside the building to try and catch a glimpse of the young couple. There they are.

Well, coming up here on CONNECT THE WORLD here on CNN, 21 minutes past 9:00 in London, the tumultuous Tevez saga. "WORLD SPORT'S" Alex Thomas will be in the house with reaction from FIFA's vice president and what he has to say about the player, the fact that he didn't play and what happens next. That in over just about 60 seconds.

And then, the moments leading up to the death of Michael Jackson. A key witness reveals what he saw in a saline bag at the singer's home.

You're watching CNN.

Stay with us.

(COMMERCIAL BREAK)

ANDERSON: Well, Carlos Tevez is nearing the end of his first full day as a suspended Manchester City footballer. And while the club continues its investigation into whether or not he refused to play in Tuesday's Champions League match, condemnation of the Argentine striker has come from the highest echelons of the sport.

Let's find out what's going on here.

Alex Thomas is in the house for you this evening from our "WORLD SPORT" team.

The Tevez-tine, some are calling it.

ALEX THOMAS, CNN SPORTS CORRESPONDENT: That's right. And we reported only this time yesterday how Manchester City has suspended Tevez while they look into whether or not he did actually refuse to come on as a second half substitute in that Champion's League match. And the reason they're conducting an investigation could be sort of legal and human resources issues all around the huge question mark about his future.

But even at the highest levels of football, this Tevez controversy is being discussed. One of several FIFA vice presidents, Jim Boyce, has been quoted on the matter. And this is what he had to say: "I think what happened was despicable. I believe FIFA should have the power to ban the player from taking an active part in football."

So that's the view of Mr. Boyce.

But there are differing opinions, Becky.

And this is what some of the fans in Argentina think.

(BEGIN VIDEO CLIP)

GAVIN HAMILTON, "WORLD SOCCER" MAGAZINE: I think you'd have to question if anybody could manage Manchester City at the moment, because they're all -- you know, they've -- they've spent so much money in such a sport space of time, that that creates its own set of problems. And they do seem to be taking one step forward and two back at the moment.

And then Tevez was a problem in the summer. He wanted to move in the summer and City resisted that and said he had to stay. But that's meant they've kept a player who was unhappy on the bench. And that's now created all sorts of problems. And I think we're going to see further problems for City in the coming weeks and months.

(END VIDEO CLIP)

(VIDEO CLIP)

THOMAS: Well, you got two for the price of one there. That's what I wanted to see -- show you, the Argentina fans in Buenos Aires and the Argentine media on Tevez's side. Buenos Aires, of course, the city where Tevez made his name, first playing for Boca Juniors, where he was so successful.

He's not found life quite as easy in Europe. And some would say that's the nub of the matter. We heard just before that the editor of "World Soccer" magazine, Gavin Hamilton, talking about the conundrum that City are in.

You know, do they explore all legal avenues to get rid of the player now, considering he's just a pain in the back side to them and they want to wash their hands of him?

Or do they think about how much money they could lose when they could sell him for millions of dollars, Becky.

But, of course, you know, since coming to Europe, he -- he's not had as good a time as he had back in Argentina.

ANDERSON: They loved him in Manchester when he first arrived. I remember seeing the big signs, "Man City with Tevez (INAUDIBLE)" all over.

So where does it go from here?

THOMAS: Well, I mean that is really the whole sad thing about this, because no one is doubting his talent on the football pitch. And what's interesting is that ever since, you know, his problems with Manchester City, which started in the summer, when he wanted to move closer to his family in Argentina, although I think reports suggest they may have come to England now, he's not been picked by his country, other. So Tevez has to consider his future -- 59 international caps, 13 goals. It would be very sad if we never see Tevez on the football pitch again, because some clubs may think, you know, he's tainted goods, why should we bother employing someone who's nonetheless so talented?

ANDERSON: Well, let's wait. Between now -- when is the next transfer window, January, isn't it?

THOMAS: January the 1st.

ANDERSON: So let's see what happens between now and then. But, you know, whether we see him playing in a sky blue shirt again remains to be seen, I guess.

Your man in the house, Mr. Alex Thomas.

"WORLD SPORT," of course, coming up in just about an hour here on CNN.

Do stay with us for that.

You're watching CONNECT THE WORLD this hour.

When we come back, a man who was there talks about Michael Jackson's final moments.

(BEGIN VIDEO CLIP)

ALVAREZ: When I returned back to the situation, as I was approaching the room or -- or -- or the bed. And I asked Dr. Conrad Murray what happened. And he said he had a reaction. He had a bad reaction.

(END VIDEO CLIP)

ANDERSON: It's day three of Conrad Murray's manslaughter trial. We're going to bring you the very latest from outside the court in just a moment.

Stay with us.

(COMMERCIAL BREAK)

ANDERSON: You're back with CONNECT THE WORLD here on CNN.

And half past 9:00 in London.

This is the world's news leader.

Let's get you a check of the headlines this hour.

And Germany's parliament has agreed to extend the Eurozone bailout fund despite growing dissent from within her own ruling coalition. Chancellor Angela Merkel was not forced to rely on the country's opposition to get the measure through.

Well, U.S. officials say pro-government mobs tried to attack the U.S. ambassador to Syria as he was visiting a member of the opposition in Damascus. Robert Ford has been critical of the regime throughout the uprising. He wasn't hurt.

In Paris today, former IMF chief Dominique Strauss-Khan faced the French woman who says that he tried to rape her eight years ago. Strauss- Khan and Tristane Banon spent two and a half hours answering questions at a police station.

And a lawyer for Amanda Knox has told a court in Italy that Knox is very afraid, but her heart is full of hope. Today, a jury heard the final arguments in the joint appeal trial of Knox and her former boyfriend, Raffaele Sollecito. The pair were convicted of murdering Britain's Meredith Kercher in 2007. The ruling in the case is expected to come on Monday after defendants' statements.

To another trial, now, that is absolutely compelling viewing. Day three of the case against Michael Jackson's personal doctor is underway. Conrad Murray, of course, is charged with involuntary manslaughter, accused of injecting the singer with a powerful sedative that killed him.

On the stand today, Alberto Alvarez, one of Jackson's bodyguards. He made the 911 call and was among the first to reach the pop star's bedroom. Let's just have a listen to what happened in court today.

(BEGIN VIDEOTAPE)

ALBERTO ALVAREZ, MICHAEL JACKSON'S BODYGUARD: He was laying on his back with his hands extended out and --

DAVID WALGREEN, DEPUTY DISTRICT ATTORNEY, LOS ANGELES: You've indicated extended out to his side with the palms up.

ALVAREZ: Yes, sir.

WALGREN: OK.

ALVAREZ: And his -- I observed that his eyes were -- were slightly opened or opened, and his mouth was open.

WALGREN: Now, as you came in and saw Conrad Murray giving compressions, or what you described as compressions. Was he using one hand or two hands?

ALVAREZ: He was using one hand, sir.

WALGREN: Can you describe for the jury exactly what you saw with that one hand on the bed.

ALVAREZ: He had his hand -- with his palm open, and he was giving chest compressions in this manner.

WALGREN: OK. And you've indicated his -- you used your left hand. Is it your recollection it was Conrad Murray's left hand?

ALVAREZ: Yes, sir.

WALGREN: OK. So, you've indicated for the record he -- while Michael was on the bed, Conrad Murray used his left hand and pushed down on his chest.

ALVAREZ: Correct.

WALGREN: At -- some point in time, did Conrad Murray indicate that he needed to get him to a hospital or words to that effect.

ALVAREZ: Yes, sir.

WALGREN: When was that?

ALVAREZ: When I came into the room, he said, "Alberto, hurry, we have to take him -- get to a hospital. We have to get an ambulance."

WALGREN: OK. And after he said that, did Paris and Prince enter the room.

ALVAREZ: Yes. When he said that, I was walking towards the bed, and I was reaching for my phone in my pocket. And as I was doing that, Prince and Paris came behind me.

WALGREN: OK. And did they actually enter the room as reflected in People's 22, or were they still in the foyer area, or where were they exactly, if you recall?

ALVAREZ: What I recall is that I was closer -- well, coming into that location -- that specific area, and they were right behind me. And Paris screamed out, "Daddy!"

WALGREN: When you heard Paris scream out, "Daddy!" was she crying?

ALVAREZ: Yes, sir.

WALGREN: And was Michael laying on the bed palms up looking slightly to the left at that time?

ALVAREZ: Yes, he was.

WALGREN: Would he have been actually looking slightly toward Paris's location?

ALVAREZ: Yes, sir.

WALGREN: Did you at that time escort the children out or indicate to them to go out of the room?

ALVAREZ: Yes, sir. Dr. Conrad Murray said, "Hurry. Don't let the -- don't let them see their dad like this. Don't let them see their dad like this."

And I proceeded to turn around to the children and kind of ushered them out and said, "Kid's, don't worry, we'll take care of it. Everything is going to be OK." And so, I walked them out towards the -- the landing area, towards the front door of the suite.

WALGREN: At that point, did you ask Conrad Murray what had happened?

ALVAREZ: Yes, sir. When I returned back to the situation, I was approaching the room -- or the bed, and I asked Dr. Conrad Murray what happened. And he said, "He had a reaction. He had a bad reaction." And I was standing at that time at the foot of the bed.

(END VIDEOTAPE)

ANDERSON: All right. Well, that was court earlier on today. They've been in recess for some time. Back as we speak, so we're going to bring you some live pictures as we talk to Ted Rowlands who has been watching this trial very closely. He's outside the court in Los Angeles and he joins us now, live.

We've heard some interesting testimony, because I know you've just been moving around a little bit as we came to you, some fairly significant people leaving court, I think, as well.

TED ROWLANDS, CNN CORRESPONDENT: Yes, absolutely. The in court -- I was in court while Alvarez was speaking this morning, and he was riveting. He was a very good prosecution witness, and he connected with this jury.

He went through, as, you heard, basically what happened. After where we left off on that tape, it was very interesting, and this is one of the biggest points the prosecution is trying to make, trying to establish that Dr. Conrad Murray was not only incompetent but was trying to cover up after he realized that Michael Jackson might be dead, he tried to cover up his trail.

So, take a listen here. This is where Alvarez explains that Dr. Conrad Murray then, after he comes back after talking to the Jackson children, he says Dr. Murray then starts to ask him for help in collecting those bottles of propofol and putting them in bags. Take a listen.

(BEGIN VIDEO CLIP)

ALVAREZ: In my personal experience, I believe that Dr. Conrad Murray had the best intentions for Mr. Jackson, so I -- I didn't question his authority at the time when it was a medical emergency, so I proceeded to follow Mr. Conrad Murray's instructions.

WALGREN: OK. What did you think you were -- they were being -- what did you think these items were being packed up for, if anything?

ALVAREZ: I thought we were packing to -- getting ready to go to the hospital.

(END VIDEO CLIP)

ROWLANDS: The prosecutor in this case, David Walgren, has done a masterful job, as well, Becky, in making a connection with this jury.

Today, he took that IV bag that was collected in evidence, the one that Alvarez says he was told to take off the IV pole, and he paraded it back and forth in front of the jury, and he had everybody riveted to him throughout this whole direct testimony. A good day, so far, for the prosecution.

Right now, the defense is on their cross examination, trying to break down a little bit of the damage, if you will, that Alvarez caused for their case.

ANDERSON: I know that one of the family members, one of the Jackson members of the family have just left. I was watching just before we came to you, and somebody walking past you, behind. Are the family there most of the day, listening to testimony?

ROWLANDS: Yes. It was Katherine Jackson leaving here, and we're not sure exactly why she is -- was leaving at this point, because normally, she has stayed for the entire day. Some of the Jackson family members come and go. They'll stay half the day.

But Katherine has been the one person who's been here all day every day, and we do know that she is going to Europe. She is leaving, we believe, tomorrow or Saturday for two weeks, so she's going to be out of the courtroom for a couple weeks, and she may have actually started that journey.

She's taking the kids with her, getting them out of Los Angeles and getting ready for that tribute concert, which is scheduled for Wales in a week and a half.

ANDERSON: Ted Rowlands is your man on the ground in LA this evening. Ted, we thank you for that.

Well, you can hear the drug propofol mentioned a lot during this trial. It's so powerful, it can put someone to sleep in mere seconds. CNN's Chief Medical Correspondent, Sanjay Gupta, now shows us exactly what happens when propofol is administered in the OR.

(BEGIN VIDEOTAPE)

SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: So, we are here inside the operating room with Dr. Gershon, who's the chief of anesthesiology here. Propofol is a medication he uses all the time. So, is this it right over here?

RAPHAEL GERSHON, CHIEF OF ANESTHESIOLOGY, GRADY MEMORIAL HOSPITAL: Yes.

GUPTA: It looks like -- milk of amnesia, they call it.

GERSHON: Milk of amnesia. Vincent, you OK?

We have to monitor his EKG, we have to monitor his end-tidal CO2, we have to make sure that he's breathing, we have to see has saturation, we have to make sure he's ventilating.

GUPTA: So, these are all -- that's all typical stuff anytime you use --

GERSHON: That's standard of care. Yes.

GUPTA: OK. So, the propofol --

GERSHON: We're going to start infusing this. You're going to get a little sleepy, Vincent, OK? Give me some good, deep breaths.

GUPTA: So watch this go in. Take a look at his eyes, how quickly this --

GERSHON: Deep breath, Vincent. Doing great. May feel a little burning, OK?

GUPTA: Ten, nine --

UNIDENTIFIED FEMALE: Deep breath.

GUPTA: -- eight, seven, six, five, four, three, two, one.

GERSHON: There's a reason for his heart rate increasing.

UNIDENTIFIED FEMALE: I have to switch him.

GUPTA: So what's --

GERSHON: As you see, his eyes are closed.

GUPTA: His eyes closed, and what else are you looking for?

GERSHON: Now, if we look up here, he stopped breathing. So this is watching his end-tidal CO2, and he's not breathing anymore, and my wonderful anesthetist is going to help him breath.

GUPTA: So, take a look over here. All the breathing right now is taking place with this bag and this mask. On that medication, he wouldn't be able to breathe on his own without those things.

And there, you can see part of the problem. Just with that much propofol there, he stopped breathing, and he's going to need a breathing tube.

GERSHON: Easy.

UNIDENTIFIED FEMALE: Easy.

GERSHON: Good. His --

GUPTA: What's so attractive about this medication?

GERSON: Well, propofol has really been in the advent in the last 10 years or so. Even more, 15 years. And it's just basically a quick on, quick off. And that may answer why people may think that this is something they could do at home, because if it gets out of hand, it goes away quickly.

The problem is, if it gets out of hand there's nobody there to resuscitate you, then nobody can bring you back.

GUPTA: So, that was pretty quick. You just gave some of the medication, you're going to --

GERSHON: Five, ten minutes.

GUPTA: Five, ten minutes he's gone from being completely awake to completely asleep.

GERSHON: He's not breathing, I'm breathing for him.

GUPTA: One thing that's worth pointing out is that this is a hospital that uses this medication thousands and thousands of times a year. But they do use this medication in non-hospital settings, like outpatient clinics. The doctors here will tell you they've never heard of it being used in a home.

(END VIDEOTAPE)

ANDERSON: Dr. Sanjay Gupta for you there. Remarkable stuff.

Well, imagine finding out that your long-time neighbor is actually a fugitive wanted overseas for an incredible array of crimes. Well, people in one Portuguese town are dealing with that very shock after an infamous criminal was discovered in their midst. Details just ahead.

(COMMERCIAL BREAK)

ANDERSON: Forty-three minutes past 9:00 in London. I'm Becky Anderson. Now, I wager you that the best crime novelist out there probably couldn't dream up a story this full of drama and intrigue.

A manhunt spanning four decades and three continents has finally caught up with US fugitive George Wright. Dan Rivers tells about an extraordinary crime and how he took on a new identity an ocean away.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): As hideaways go, this is about as idyllic as it gets. Lord Byron described Sintra as the most beautiful Eden on Earth.

And it's easy to see why. It perhaps explains why one of America's most intriguing fugitives sought this picture-postcard cottage as his final hideout.

George Wright has been on the run for 41 years after escaping from prison in New Jersey where he was serving time for murder.

But it was his involvement in this hijacking in 1972 that put him in the big league, forcing the FBI to hand over a million dollars in their swimming costumes to show they were unarmed.

Wright, the money, and his accomplices escaped, forcing the pilot to fly to Algeria, where they disappeared.

Now, the FBI has finally caught him here, in the hamlet of Casas Novas.

RIVERS (on camera): After such an eventful early life, George Wright clearly decided to embrace tranquility and seclusion here in rural Portugal. His neighbors, though, could not believe his incredible past.

RIVERS (voice-over): This woman says he led a quiet life. "He kept himself to himself," she says, "but we never had any problems from him."

Wright's lawyer says he will fight extradition.

MANUEL LUIS FERREIRA, GEORGE WRIGHT'S LAWYER: His defense is a Portuguese citizen. He lives here, he has family here in Portugal, and in this case, he doesn't want to go to the United States because he thinks that if he goes to the United States, he will die.

RIVERS: George Wright spent his time running this small photocopying business. Now Wright is facing extradition to the United States, ending decades on the run. But his lazy days on the beach may soon be a memory. The FBI wants him to finish his 30-year jail term.

If Hollywood ever makes the film, it probably won't be a movie with a happy ending.

Dan Rivers, CNN, Sintra, Portugal.

(END VIDEOTAPE)

ANDERSON: Amazing story. Well, sometimes, the law catches up with them for fugitives like George Wright. Sometimes, though, they outrun it.

Remember these cases? Lord Lucan, for example? He vanished from London in 1974 after his children's nanny was found murdered. Many people have reported sightings of him over the years, yet every trail turns up cold. It's one of Britain's biggest unsolved mysteries.

In the US, Sara Jane Olson kept authorities at bay for decades. She was a wanted member of a radical group that carried out robberies and other crimes, including the kidnapping of heiress Patty Hearst. Olson was eventually discovered living a quiet domestic life in Minnesota, and she served prison time.

And one of the best examples of justice delayed but not denied, Adolf Eichmann, a Nazi criminal, disappeared after the Holocaust. Israel's spy agency, Mossad, eventually tracked him down in Buenos Aires in Argentina. He was tried and executed in 1962, the first and only time that Israel has actually ever used the death penalty.

So, what exactly does it take to track down the world's most wanted? Let's bring in CNN's contributor Tom Fuentes in Washington. He's a former assistant director of the FBI.

Let's start with George Wright and his case. Just how unique is this? Forty-one years on, this had to be an old, cold case for the FBI. And yet, they've come good on this.

TOM FUENTES, FORMER ASSISTANT DIRECTOR, FBI: Well, that's right, Becky, it was a cold case.

About ten years ago, the FBI, US Marshall Service, and the corrections department from the state of New Jersey formed a task force to reopen the case, reopen the cold case, and see if, using modern technology, modern communications, and international police relationships, be able to solve it.

And that's what happened in this case. They reopened it and looked at the possibilities of where he may have gone and who he may have contacted for help or may be continuing to stay in contact with by telephone.

And actually, in this particular case, the US Marshall Service actually developed the key lead that resulted in locating him in Portugal.

ANDERSON: It's quite remarkable. I mean, the FBI's not had a bad year, given Obama -- Osama bin-Laden was one of its most wanted, of course.

When somebody is caught off its most-wanted list, do they get replaced?

FUENTES: They do. The FBI nominates a new individual to go on the Top Ten list, and it's approved by the Department of Justice. It usually takes a couple of weeks, and then a new person goes on there.

And the hope is that the publicity and the reward that goes with it -- it's an automatic $100,000 US reward for a Top Ten fugitive or more, as in the case of Whitey Bulger and some of the other fugitives that have recently been apprehended.

ANDERSON: Sure. How do they make the decision as to who becomes a Top Ten Most Wanted, out of interest?

FUENTES: Well, I think it's a process that includes the FBI and also the Department of Justice in trying to look at where they think the likelihood of the increased publicity and reward might help, it might increase the chances of apprehending the person. And just the seriousness of the crimes that were involved.

In the original armed robbery, an individual was killed in New Jersey, which is why he was serving a sentence for murder, 15 to 30-year sentence.

Now, since then, he still has the unfinished sentence in New Jersey for that crime, and now, separately, they committed the aircraft hijacking and the $1 million extortion from Delta Airlines, as you saw, forcing FBI agent to be in a bathing suit to deliver the money.

But that's a new federal charge that he'll be facing back in the US for that hijacking and that extortion.

And interestingly, that hijacking is credited with the increased airport scanning that goes on for passengers ever since that 1972 hijacking.

ANDERSON: Fascinating. Tom, thank you for that. Tom Fuentes, your expert here on CONNECT THE WORLD this evening.

Well, they say that in tough times, ladies heels go up and their lipsticks, apparently, they come out. Well, our fashion season series continues with a look at designers diving into the lucrative beauty world. That's next.

(COMMERCIAL BREAK)

ANDERSON: Power shoulder-padded jackets, beaded mini-dresses, the global fashion pack are buzzing around Paris. Take a look, because it's these trends that will dictate what us girls will be wearing next spring.

Well, if you are a follower of fashion, you'll know that sometimes your wallet just doesn't stretch, and the piece that you have your eye on stays in the shop window.

So, many designers are catering to a lipstick economy, as they call it, with the idea that makeup is cheap and makes you feel good. As Monita Rajpal reports, Dolce & Gabbana, for example, are the latest to jump on what is known as the beauty bandwagon.

(BEGIN VIDEOTAPE)

MONITA RAJPAL, CNN INTERNATIONAL CORRESPONDENT (voice-over): In Milan, actress Scarlett Johansson causes a frenzy as she enters Dolce & Gabbana's spring-summer runway show. She has been the muse for the designer since 2009, when the duo launched their makeup line.

Fashion is a fantasy. The right shoes, bag, or dress to enhance your life is not within everyone's financial reach. Beauty and fragrance lines offer an affordable way to buy into that fantasy.

Inspired by sirens of the 50s, Dolce & Gabbana are able to sell their dream with the face of modern-day Hollywood glamour.

SCARLETT JOHANSSON, ACTRESS: I think Stefano and Domenico both love strong women, voluptuous women, like Monica Bellucci.

Congratulations!

STEFANO GABBANA, DESIGNER, DOLCE & GABBANA: Thank you.

JOHANSSON: Yes, great show, it was fun.

I'm a curvy girl, I'm not -- I'm not trying to fit into the mold of the modern aesthetic, in a sense. I guess maybe that's why, I think, they chose me. For my curves.

RAJPAL: Backstage, world-renowned makeup artist Pat McGrath oversees the look she created with Dolce & Gabbana this season.

PAT MCGRATH, MAKEUP ARTIST: So, what we've created is a modern-day Sophia Loren. People are so interested in how to fit perfect skin, every woman wants to have to do it, so we have to create product that give you that instantly. So, obviously, so much work and so much science has to go into creating product.

RAJPAL: For the designers, the makeup, and fragrance lines were the inevitable evolution of a brand that's been around for 26 years. Procter & Gamble, the company working with the brand, estimates the global prestige beauty market is worth more than $90 billion.

The designers say it's a small yet effective way to attract a market that's not been part of the Dolce & Gabbana fashion clientele.

GABBANA: We make expensive clothes, medium and a little cheaper, but not for everyone. By fragrances, by makeup, we arrive, we give the other women the possibility to buy a little part of the dream.

RAJPAL: In New York, during Fashion Week, makeup is also center stage. For Estee Lauder, it's been the central focus throughout the company's 65-year history.

Now, they have a new ambassador, their first Asian spokesmodel. Lu Wen joins the ranks of top models with the coveted cosmetics campaign, signaling Asia's growing influence in the beauty industry.

LU WEN, MODEL: Working with a beauty company is my dream. And I'm now living my dream.

RAJPAL: Born in Hunan province, she says she wasn't considered a classical beauty. She entered a modeling contest in 2005 because the grand prize was a computer.

WEN: I was very shy during the contest because I don't understand what is modeling. One of the people doing makeup and why I need to wear high heels every day.

RAJPAL: Now, she struts down the catwalk of top designers.

WEN: In the beginning, it was very hard, because you know you're a new face, new gear, also. In Beijing, have so many people, and the people don't really know you.

Now, I live in New York one year.

I love my job. I feel it's very different.

RAJPAL: In Paris, a different take on makeup for the models. At Rue Du Mail's show, the look was natural, but with an edge.

Shu Uemura's artistic director experiments with models for designer Martine Sitbon's approval.

MARTINE SITBON, DESIGNER, RUE DU MAIL: I think it could be a little bit more strong.

The idea for the hair and makeup was to find something between this -- the woman is not too soft, and at the same time, she has something natural, you know?

KAKUYASU UCHIIDE, SHU UEMURA: Makeup is -- creates perfect in beauty. But watching Ms. Martine, I need something imperfection. Imperfect beauty. That's -- that's really complicated.

Now, it's time and texture. I don't need to cut off more eye shadow, so just use the black and gray, and white on the party, the shiny texture to the eyes.

So, that's the trend makeup in this season.

Using the least amount of the base product, the foundation, and the concealer. The least amount of, this is a really important thing.

RAJPAL (on camera): So, less is more.

UCHIIDE: Yes, less is more, yes, right.

RAJPAL (voice-over): From Paris to New York to Milan on the runways, the makeup complements the clothes, a combination that goes hand in hand in selling the dream.

Monita Rajpal, CNN, Paris.

(END VIDEOTAPE)

ANDERSON: I'm Becky Anderson. That is it for this evening's show, thank you for watching. The world news headlines and "BackStory" will follow this short break, so do not thing about going anywhere else. Stay with us.

END