>> how warm it's going to get, and if it stays dry through sunday evening. new pictures tonight of jesse matthew arriving in virginia, brought here on a private plane escorted by fbi agents. >> he of course is the prime suspect in the disappearance of hannah graham. and right noushgs matthew is in -- now, matthew is in char lotsville in a jail cell. >> if he does know where hannah graham is, he's not talking. >> reporter: when jesse matthew arrived in charlottesville friday, he was working shackles and a bullet-proof vest. he arrived from galveston, texas, today, seen here. >> what kind of an inmate? just like every other one they have in the jail. he was in an administrative segregation area of the jail. and it was for his protection. >> reporter: matthew wouldn't talk to investigators while they were there in galveston, and several remained there to figure out why he went there in the first place, where he pitched a tent and campod a beach -- camped on a beach. >> we're still looking at the vehicle. whatever evidence they find from there, we'll move forward. >> reporter: and investigators are no closer to finding hannah. they are widening their search, even asking residents to search their own yards and realtors to check vacant properties. the smallest shred of evidence can help. no massive searches are planned this weekend, but teams will be out. matthew is not expected to face a court hearing until next week. former dc private school teacher led authorities on a worldwide manhunt, until he was capture in central america. andrea mccarron and joe martin take us to petersburg, virginia. >> reporter: serving a 25-year sentence at this federal prison, we spoke with him about his web of deception, and how he staid one step ahead of law enforcement for so long. >> this is somebody swho' beyond looking at images. he's created images. >> you knew the fbi was looking for you. >> at first it was kind of a game. there was a certain element of i'm running for my life. almost like a long-term adrenalin high. >> reporter: the game ended for eric toth, now an inmate at the federal prison in petersburg, virginia. but he's also the victim of a mental disorder. >> my prosecutor says i'm not a monster, i'm just a seriously disturbed individually. and sometimes i agree with him. >> reporter: the 32-year-old former teacher is a pedophile who told us his victims were all boys he loved to obsession. >> toth is an extremely dangerous individual. >> reporter: he taught at washington dc, ttional skathedral elementary school. >> i don't know how many victims there were. >> reporter: court orders and interviews revealed that in june of 2008, a fellow teacher discovered a school-owned digital camera with sexually explicit photographers and videos of children. it was quickly traced to toth. >> so you do believe taking sexually explicit photo was children is wrong. >> yes, certainly taking sexually explicit photo was anybody without their permission is wrong. >> reporter: he had installed hidden cameras inside air fresheners that he hid in bathrooms. >> i made some horrible choices that hurt people, and i also made some choices that helped people and the world. >> the skills you develop as a counselor, a turtor uutilize -- tutor, you utilize tt trust to exploit children. >> reporter: when the images were discovered, toth was immediately escorted offcampus and began a life on the run. >> i definitely do regret my actions. >> reporter: fbi accounts and letters to us detail an astonishing itinerary, from washington dc to indiana, where he grew up. after a brief stay, he travelled to chicago, wisconsin, and minneapolis, where he abandoned his car at the airport, leaving behind a suicide note and a thumb drive containing child poenography. from there he took a bus to montana where he lived in a rescue mission for a month. in july of 2008, he travelled to wyoming and then hitched a ride back to montana. soon he was on the road again to coeur d'alene, idaho, and then phoenix. >> reporter: twice his case was featured on america's most wanted. after the second broadcast, someone recognized him. but he told us he intercepted an e-mail warning the shelter he was a fugitive. >> reporter: from there he took a bus to santa fe, new mexico. and with a newfound friend, he headed to dallas and then all of thein where he would work for three years in the computer industry. >> reporter: in april of 2012, eric toth became the first pedophile on the fbi's top-10 most wanted list, taking the spot that had been occupied by osama bin laden. that he told us prompted him to make plans to leave the country. >> i felt horrible. i felt as if i had been kicked in the gut and that all the breath had left me. i curl up in bed and didn't do anything for several days. >> reporter: for toth, escaping arrest quickly became an adrenalin filled cat and mouse game. and the law came incredibly close. in april of 2012, he was on a bus from arkansas to texas that was pulled over by texas state troopers who asked all the the passengers for their identifications. toth thought the game was over. they looked at his fake id and moved on. and in august of 2014, toth obtained a fraudulent pass port in houston, photo shopping his own picture, and even removing his distinctive facial mole to defy facial recognition software. he had his veegsa and pass port -- visa and passport expedited, claiming he was visiting nicaragua to tend to an ill relative. he would return to the united states to get documents for citizenship. he then returned to central america. months later, he was urcapted in nicaragua where he had married a hotel maid to gain citizenship. he had been turned in by an american who recognized him. >> to what extent do you believe doing what you were convicted of is harmful to children? >> harm is an interesting word. >> reporter: toth grew up in a middle class midwestern family. at the age of 10 or 11, he realized he was attracted to young boys and could never tell anyone. >> reporter: in candid, graphic letters to us, he wrote "when you have to lie about who you are every day, lying, manipulating, portraying a false you, etc, becomes pretty easy." >> to what extent are you sorry for what you did or are you simply sorry you got caught? >> well, i would be absolutely lying if i didn't say that pretty much any criminal is sorry that they got caught. the consequences aren't fun to deal with. >> reporter: in his letters, he cites academic studies, claiming that sexual contact between an adult and a child is not necessarily harmful. >> that's correct. there is research that suggests that while it absolutely can be and frequently is harmful that it does not have to be harmful. and a couple of studies in particular the issue of malignance was central. >> reporter: but children cannot consent to any type of sexuality activity with an adult. >> reporter: doctor allison jackson says child abuse doesn't need to involve physical trauma to cause long-term harm. >> emotional scars and the emotional injury is usually the larger baggage that gets carried on for a lifetime. >> i have this dark thing lurking in me that is not easy to control. >> reporter: pedophilia is classified as a mental disorder. one for which experts say there is no cure and little to no effective treatment. >> as a pedophile i have kind of a dark inner secret that i have to deal with, and that unfortunately miep efforts in dealing with it haven't always been effective. >> reporter: when he's released, eric will be 52 years old. he faces a lifetime of supervision and is barred from any contact with children. tonight the fbi is investigating a savage attack at an oklahoma food processing plant. one employee was beheaded, another stabbed but survived. this is the man responsible, alton nolan. he was fired today and went on this random attack. he severed one woman's head then stabbed another before an executive shot and wounded him. no one is in the -- nolan is in the hospital and will be investigated. three more countries have joined the international coalition to fight isis. the united kingdom, belgium, and denmark. the fightless also require thousands of troops on the ground, dempsey suggested. president obama still maintains he will put no u.s. combat troops on the ground. a man facing charges after a nier chicago that left a lot of trampers stranded across the country. he set fire to a facility not far from ohare, and that prompted controllers to grant owl flights in and out of chicago. the man stabbed himself but did not kill himself. so he's charged with federal destruction of aircraft facilities. thieves have successfully stolen credit card data from millions of you. target had 40 million. yesterday, jimmy john got added to the list with an unspecified amount of commerce' data stolen. >> within a year it's expected that nearly all credit and debit card customers will have cards with these, this gold square. that's a microchip. that is where all the credit card information will be stored, instead of what we use now. the black magnetic strip on the back of your credit card. it's meant to keep customers and companies one step ahead of hackers in this convenience-driven world. >> reporter: target, hacked. p. f chang's, hacked. home depot, hacked. just a few of the companies that have recently had the credit card information of hundreds of millions of customers stolen. the result? a change to the credit and debit cards that you know so well. >> the u.s. is the last large economy in the world moving to chip technology. but it is catching very, very fast. >> reporter: traditional cards have the mag stripe on the back. new cards will have a microchip, which is better protected. instead of a swipe, you insert the card into a scanner and allow it to process. >> when you do a mag stripe transaction, the data that is exchanged is static data. when you do a chip transaction, we have different terminology, your data is dynamic. and plan who would be able to get hold of that data will not be able to reuse the same data for a different transaction. >> reporter: u.s. companies have been slow to adapt to the technology, mostly due to the major investment it would take to change current payment systems. so slow that cyber security expert mark rash says there's an even newer way. >> it's within the phones, the new iphone for example, and a lot of phones have something called nfc, near field communication. so you'll be able to wave your phone or watch over a payment system and be able to pay that way. >> reporter: that method requires the swipe of your foirng activate the -- finger to activate the payment system. but unless you're paying cash, you're never completely safe. >> hackers are always going to want to go after the payment systems because that's where the money is. >> reporter: there are several players involved, the consumer, the user, the merchant, and the bank. every layer has to do their part. high temperature 78 today. and the wake-up weather, a spectacular start! cool in the morning. we'll come back and tell you how warm it could get by sunday. >> and game on, varsity week no. 4! temperatures 67 does the, relative humidity, a comfortable 68%. winds are calm, and between the cool air and the cool skies, patchy fog is possible overnight. but a fantastic weekend! the 80s return, low 80s. perfect for the nalts and the raven -- nats ts and the raven -- nats and the ravens. everything you can do this weekend, the weather will cooperate. futurecast, 6:00 in the morning -- excuse me, 8:00 in the morning, 60 downtown, 50s in the burg. upper 60s by 10:00. by 1:00, we warm up rapidly. upper 70s downtown. mid-70s in the burbes. and by 6:00, we're looking at temps in the 70s. we'll cool off tomorrow, nothing crazy, but 66 by 8:00 f. you're not in -- if you're not in by 10:00, i would recommend a sweater. 73 at 11:00, 78 by 1:00. beautiful tomorrow, beautiful again son, and maybe a shower on monday. upper 70s on wednesday, thursday and friday, a few showers, not a huge deal. thank you cable. for the slower internet upload speeds. for making me wait longer to share my photo albums. thank you, cable because if we never had you... we wouldn't know the incredible difference verizon fios makes. the numbers don't lie. in customer satisfaction studies, fios is rated #1 in internet speed and reliability, and hd picture quality. so join the millions who enjoy the difference fios makes and get a fios triple play online at an amazing price guaranteed for two years. sign up now and get $300 back with a two-year agreement. call the verizon center for customers with disabilities at 800.974.6006 tty/v welcome to game on varsity week 4. it's about to go down! the best highlight, the best spirit! speaking of spirit, bishop lady cardinals are in the house! hit it! [ chanting ] [ chanting ] >> go, fight, win! i like that! game of the week, damascus versus st. john. this is st. john's scotty washington who apparently has places to go, people too see, things to do, and touchdowns to make! opening kickoff, and he takes it all the way back to the house. watch darryl turner jr. in 3d. they win 24-14 in overtime. pg county, that's alum joe hayden, he plays with the cleveland browns of course. stacked the quarterback there. margo struggling tonight. but they could not stop derrick harris. the largo lion king! that's what i'm calling him from now on on. >> it means a lot. i get to see my coaching staff, my boys, just kids out there having a good time, playing the game for the right reason. >> let's take it to the district where we're beginning to find out who's who in the zoo. dunbar has had its ups and downs, but when the knights and tide get together, a lot of head-knocking going on! great time tonight. check this guy out. delonte morris. i call there shake what your mamma gave ya! takes it to the house for the touchdown! that say great play. dunbar wins a thriller, 18-14! what a game! onto fairfax county, w. t. woodson. the highlights, very few tonight for them. w. t. woodson says we never heard of a no-fly zone! woodson wins big, 56-21. great games right there. here's the game of the week poefl for next week -- poll for next week. >> and the ladies from b.i. have come to our studios to get their vocal chords all warmed up! take it away! [ chanting ] >> all right, ladies! i need a little help to take us to the band of the week. >> take us to the band of the week! >> woo! there you go! that is our broadcast for tonight! thanks for being here. >> letterman is next. make it a great weekend! >> i'm over here with the lady cardinals of one more cheer! can i be an honorary member of the team? throw me a pom-pom! [ laughter ] [ chanting ] ( band playing "late show" theme ) >> from the heart of broadway, broadcasting across the nation and around the world, it's the "late show" with david letterman. tonight... plus paul shaffer and the cbs orchestra. m i'alan kalter. captioning sponsored by worldwide pants and cbs
impact on amtrak trains. trains are not stopping at the santa clara station. caltrain subjectings that the light rail for an alternate. again one person is dead and another hospitalized. we will keep you posted. neighbors say they can't believe it. item womans prized jewelry stolen. live now there, you spoke exclusively with the homeowner about two con artist. >> reporter: yes i did. i spent the whole day really. most of them had no idea that one of their neighbors had been burglarized saturday. the victim says she wants to warn others. a water scam left a woman high and dry started with a man posing as an employee with the water department. the 78 year old victim asked us to protect her identify. >> one of them said you come from the water company and i should have realized he was lying to me. >> reporter: the woman let the man inside her house. he told her there was a problem with the water line and asked her to run water from the backyard for five minutes. police say that was all the time the man needed to call an accomplice to steal the jewelry. the woman says those valuables are price less. >> they have been in the family over 50 years. it's gone. i don't like that. i'm very upset over that. >> it didn't happen to me and i feel violated. it was a friend of mine and it broke my heart because she didn't deserve it. >> reporter: police say that the incident sounds familiar to people impersonating crews last summer. only trust people driving an official truck. >> you should verify that through the water department or whatever utility is at your door. call them and verify that that person should be there. >> unfortunate that they target senior citizens. that's not the way we like to act around here. >> reporter: neighbors plan to be on the lookout but the woman says what the damage is done. she knows she will likely not get her jewelry back. >> that's not right what they are doing. that's pretty bad. >> reporter: there burglary comes less than a week after home burglaries were reported. property crimes are on the rise according to police. they need the public's help with any information on this. a fisherman was swept out to sea chasing a cooler and drowned. a wave swept away his cooler. witnesses say he went into the water to get it but pulled out to sea by another wave. his body washed up about 20 minutes later. his identity has not been released. a more unseasonably warm temperatures. now to the weather center. >> there were a few. let's get to those and i will show you where. san francisco tied an all record set back in 2009. oakland downtown 72 this afternoon. breaking the old record of 71. so just above the standing record but still managed to do it. in livermore breaking a record of 69. we will colonel with this mild dry weather for tomorrow. as we get going tomorrow morning it's going to be quite cold. i will look at the numbers expected z you step out coming up. the warm up is playing havoc with crops and plants. the looming impact on agricola which you are. >> reporter: merlot and cabernet vines and the rest of the wine industry are at risk. >> the warm weather is a little fightenning this time of year. >> reporter: this wine maker, taylor and hosea hernandez, pruning today in nearly 70- degree temperatures. they say that the vines think it is spring and may bloom. then if it rains or frosts. >> our fruit set will be low, it will be a low year for everybody. >> reporter: check out these buds and other fruit trees. they are blossoming now. >> if we get get the rain and cold weather in february, they will get affected and knocked off which means you don't get the fruit you normally would. >> reporter: these are also blooming way too early. he advises to fertilize liberal -- liberally. >> there's nothing you can do. >> reporter: so far night time temperatures have been cool enough to minimize any abnormal flowering. but the next few days and weeks could disrupt the agriculture. in livermore, channel two news. mandatory water restrictions could be coming to the bay area. but had at the table. let them know. up to a $510 fine for repeated offenses. just a short time ago officials say they have accounted for all of the 31 people inside the international nutrition plant had the blast happened this morning causing the building to collapse. in addition to the two plants ten were hospitalized and four were listed in critical condition: no word on what caused the blast. a 49er fan did not take well to postgame and ended up shooting two men. investigators say that armando vargas was watching the game at a home when people in the house began taunting him about the loss. investigators say that at first he started threatening with a knife but when others grabbed the knife he walked into the back room and got a gun. a 63 year old and 45 year old were shot in the leg. as for vargas, deputies say he turned up at the emergency room with stab juans. an oakland mother is grieving the loss of a second son. herenesses was buried last week. rob roth talked to her and heard her plea to the community. >> reporter: just four days after attending the funeral for one son, she attended the street corner where her other child was gunned down sunday. >> my son is gone. >> reporter: 19 year old lamar was shot sunday as he sat in the car. his friend derrick harris was also killed. police say over a dozen bullets were fired into the car. they don't know who did it and know why. >> it's the parents raising these killers and these people with no morales or no heart that are going around. parents know what their kids are doing. >> reporter: the mother said she is in a state of disbelief. her other son was shot to death on 104th aver as he was walking home with friends. his funeral was thursday and lamar was also there. >> i know there's a god but i'm like why would he give a mother so much pain to handle within 19 days. >> reporter: lamar was plan to go start classes starting tomorrow. instead daniel must plan another funeral and she had this message, no retaliation. >> i don't want street justice, i want justice through the courts. >> reporter: the mother is asking anyone who may know anything about either shooting to please come forward. in oakland, rob roth, channel 2 news. city council woman with on her forehead is causing a stir. they say stop shaft and the stop the dac, the do main awareness center. >> i don't know who she is or enough about her to have an opinion of her as a politician but i don't want to see that on display her. >> she is of jewish heritage. meanwhile, today they were told that there were flyers posted in september concerning his stand on city curfews. a day most believe came two week toss son for 49ers stan fans. >> that's a result you are going to get. all anyone wants to talk about is the postgame rant by richard sherman, was it adrenaline or a lack of respect. c martin luther king jr. -- dr. martin luther king jr. with a special reenactment. some 49ers fans gathered today hoping to thank the players for a well played season. they lost last night to the seahawks but their pride is still in fact. >> we took it hard like them but we feel that they can come back next year and the year after and get to the playoffs and get to the final destination. many people brought their children along hoping for a hand shake. niners players face the task of packing up for the postseason. they packed up belongings. team leaders were still upbeat bt yesterday's effort. >> we kept fighting and stayed in there and didn't give up. it was a battle. that is one thing i can alewd -- applaud these things on. >> the 49ers have several issues coming up. kaepernick and crabtree are among top line players entering the last year of their current contract. that's to sea hawk richard sherman. some niners fans say he made a name for himself for all the wrong reasons. walker takes a look at the postgame rant and the fire works it is generating. >> reporter: it was the play that put the nail in the 49ers coffin for the 49ers. today no one is talking about the 60 minutes of hard fought football on the field. they are talking about the 20 second interview off of the field. >> don't you ever talk about me. who was talking about you. crabtree. don't you open your mouth about the best. >> i thought it was outrageous. >> reporter: sports psychologist was an elite try athlete and runner. >> i got the world record in my age group. >> reporter: she works with olympic athletes. trash talking can be self- motivating. >> what impress am i making off the field is as important as performance on the field. >> reporter: there are count less articles about the trash talking. while sherman might have seemed like he was on a crazy live tv rant, this grad might have just been trying out for the wwe. there is no shortage of opinion from fellow player. >> sometimes you just need to shut your mouth, you know, you got the win, be humble, be gracious and just accept it. >> reporter: to fellow students. >> reporter: it's a double edged sword. reputation for trash talking got him an endorsement by beets -- beats by dre. >> i'm the best corner in the game. >> reporter: where the discussion can get trash yes, sir -- that shaller than -- trasher. >> richard sherman apologized. in a text message, he said i apologize for attacking an individual and taking the attention away from the fantastic game by my teammates. that was not my intent. in the afc championship you may have heard him shouting omaha. they pledged 8 -- they got $24,800. omaha said manning did a lot for its city as well. they are testing google glass to see what the players see. the first game is this friday when the kings play the pacers. announcers and cheerleaders will be wearing the glasses as well. russia continues to ramp up security. today the olympic torch passed. heavy police presence vonned the torch. overthe weekend a video was released. in sew she -- sochi today, a woman affiliated with the same group who say -- she is 22- year-old, her husband was killed in a shoot out with russian police. authorities say she has a scar on her left cheek and her left arm does not bend. president obama honored the legacy of martin luther king jr. today. the president and his family helped make burritos at a soup condition. they were distributed to shelters around the capital. the kitchen has been looking after the less fortunate for the past 25 years now. the caltrain to san francisco is a symbolic reenactment. on today's train were some first timers and others who were veterans of the freedom train. >> this is a great time because being able to have opportunities that my parents did not have and it's because of the sacrifices that other people made for me. >> this is my 4th or 5th time coming and it's a joy to get that feeling of empowerment and yes, life is going to get better for all of us. >> there were fears this might be the last year for the freedom train but with more than one thousands tickets sold, the train will roll again. hundred people marched for the arts. the annual festival was an all day event fee -- event feature. most of the north bay, it is illegal to burn leaves, wood in so know pa, napa and solano counties. calfire said that the ban was put in place because of unusual dry conditions and a potential for a wild fire. meanwhile on the topic of burning, air quality is moderate today and tomorrow and there is no spare the air alert in place. i say that in case you think about koasing up to the fireplace tonight. look at the current temperatures. right now 513 degrees in santa rosa. half moon bay, 41 degrees and along the coastline tonight, we have patchy fog. take a look, it moved in all the way from the west coast of day lee city through passive ka, half fan bay, it continues down south with santa cruz under mostly clear skies. we have theoff shore wind that continues. onshore breeze today and that was enough to bring back the fog. take a look onshore wind, about 59 miles per hour. again we are looking at the fog along the coast and we may see the patchy fog as we get going tomorrow as well. overall in the forecast for the week ahead. ridge of high pressure in control with systems riding over the top of it not bringing rain. we will continue with the dry stretch all the way through the weekend it looks like. as we get into tonight, the overnight hours and tomorrow. 30 degrees for santa rosa. 32 in napa. 36 expected outside your door. 33 in antioch. 44 for oakland, 41 mountain view. mid to upper 40s alistening if coastline and we are likely to wake up with gray skies. for the afternoon tomorrow, upper 60 to low 70s in the forecast. a lot like what we had for today. as i mentioned a little while ago, we broke some records today. we may do it again tomorrow. the extended forecast showing you that we will have little variation as we get through tuesday, a near repeat for wednesday. theoffoff shore winds could pick up wednesday. we will be watching out for fire danger into thursday. with your weekend in view, upper 60s with dry conditions in the forecast. first spacecraft has woken up from hibernation after two years of silence. it was powered down in 2011 to save inner get and was powered back on today. they were thrilled to receive a signal from row cita. it was launched by the european space agency in 2004. it is expected to reach to come met in august. talk about a big baby, one california hospital talking about a record setting delivery. no one is blaming marshawns yet. the great american novel. so you can happily let life get in the way, while planning for tomorrow. so you can finish the great american novel banking for the life you have investing for the life you want chase. so you can two dozen pie lateral whales are on their way back to sea. 24 by lateral -- pie lateral -- by lateral -- soy southern california woman gave bierth to a bouncing baby boy. take a look at andrew. his weight at delivery, 15- pounds and 2-ounces. he was delivered by c section last night. he was taken to another hospital where he is monitored because of breathing issues. her mother said she was shocked at how big he was. told the doctors to weigh him twice. nasa scientist are behalf baffled -- baffled by a rock. they took two photos, you can see the small formation right in the center in the shape of a doughnut was not there before. scientist say what the it did not drive over that spot but it's possible that it flicked it. they are studying it more closely. thank you for making ktvu your news source. we will see you the next time. we will have the latest on the caltrain that hit two pedestrians in santa clara killing one of them. tmz is up next right here. >> today on "tmz" -- b.s.pablo is full of he has a problem with the idea of gay "bachelor" show. >> gay people, they're more a sense.n >> he says his words were taken out of context. inyou don't need pervert context. that was out there. >> justin bieber is abusing drugs, specifically sizzurp, really high grade prescription grade cough syrup. $800 for ay drink is bottle. >> do you sip it or guzzle? >> the nice onhe
slained sergeant, thomas smith, and the officer who accidently fired the shot, michael mays. both with 30 years experience between them. >> reporter: i poke with retired b.a.r.t. chief here about what he knows. we spoke about 90 minutes ago and he shared with me what he knows about both officers. officer michael hayes seen here in a video about holiday shopping safety. >> specifically look for items left unsecure. >> reporter: mays has been with the transit agency for 14 years, and prior to that, he was an officer with the moraga police department. >> a dedicated, hard working officer. he had a drive working personality. he was approachable. he was just someone you could talk to. >> reporter: a source tells me mays is the father of a teenage daughter. both men were hired before he became police chief and he regarded them highly. detective smith was someone who who started working for b.a.r.t. at an early age in 1990. >> he was a civilian police employee who was used to patrol the parking lot, and serve as eyes and ears for the officers on patrol. >> my name is sergeant smith. >> reporter: the retired chief tells us he appointed smith. declined to say what could have led to the deadly shooting, saying only that his heart is heavy. >> i was completely devastated by it, because we were talking about officers that i worked with very closely when i was at the department. >> reporter: he says, as fares he could tell, the two men worked well together. live in walnut creek, amber lee, ktvu, channel 2 news. now to the case both men were investigating. today we learned smith, mays, and six others were following up on an armed robbery at the fruitvale b.a.r.t. station. we get that part of the coverage from allie rasmus. >> officers worked into b.a.r.t. headquarters with heavy hearts, as the department mourned the loss of tom smith. a 23 year veteran of the first. >> we're shocked. we're grieving and please give us some time. >> reporter: smith was one of seven b.a.r.t. police, five undercover detectives, and two uniformed officers doing a search of an apartment in dublin. while the officers were inside the one bedroom apartment, one of the detective's guns went off, striking and killing smith. a brief glimpse of sergeant smith as he was rushed to t heambulance. >> he is just in the bed, he wasn't moving. i don't think he was conscious at all. >> now we can go forward and try to reconstruct exactly what happened. >> reporter: the apartment b.a.r.t. police were searching was the home of 20-year-old john henry lee. lee was on probation for a previous misdemeanor. last wednesday morning, police say he robbed a man at gunpoint at the fruitvale b.a.r.t. station garage. lee was in a stolen car when he led san leandro police on a chase. it says a pursuit ensued that ended when a honda collided with a tree, and rolled. he was stopped by a police k-9, officers found a loaded handgun inside the honda. lee was arrested, and has been in police custody since thursday. yesterday, b.a.r.t. police went to his apartment to recover some of the items stolen. all of the officers doing that apartment search were wearing bulletproof vests at the time. we don't know where the bullet, or bullets struck sergeant smith, but we expect to get more information when his autopsy results are released. that autopsy was conducted today. stay with ktvu for continuing coverage, as new information emerges from the investigation, we will bring it to you on air, and to your mobile device. tonight at 10:30, the split second decisions law enforcement often face, and the training b.a.r.t. officers received to make those decisions. developing news out of oakley, in contra costa county. that's where an 11-year-old boy died this evening. police say it appears he accidently shot himself in a home on yosemite circle, shortly after 7:00 tonight. the boy died a short time later. we don't know how he got the gun, who's gun it was, or what type of gun it was. at this point, the boy's name is not being released. now to the red flag warning, prompted by wind in the unusually dry conditions this winter. the fire spread quickly this afternoon because of those dry conditions. news chopper 2 captured these images around 3:00 this afternoon. a spokesperson for contra costa fire says they didn't implement an aggressive effort, because no structures were threatened. the warm weather broke a few records around the bay area. >> our chief meteorologist here now with a few numbers, and also another red flag warning in the middle of july. >> reporter: that red flag warning just went into effect for the hills of the north bay. we did have a few records today. the red dots, oakland, that was a record downtown. mountain view was the a record. san jose tied at record at 72. 75 was the warm spot in livermore. the red areas represent the red flag warning. if you look close you'll see the fire weather warning stays in effect until 3:00 tomorrow morning. along the coast, a high surf advisory, that starts tonight, and goes into tomorrow night. so the swells are coming up. we've got fire danger conditions, and more warmth. we could see more records tomorrow. when i come back, we'll get specifics for tomorrow. big waves are hitting hawaii right now, and heading this way. in fact, they're said to be the biggest in a decade. some 50 feet high, and those waves are expected to arrive on the san mateo county coast by friday, just in time for the world famous mavericks competition. for a while it looked like conditions might actually be a little too dangerous for the big wave contest, but then organizers decided it was a go. >> now they have just 34 hours and counting to prepare. at half moon bay, they found they were working against the clock to get ready. >> reporter: word went out today that the big wave surfing competition is on. everyone is keeping an eye on the waves. surfers tonight caught a few waves close to where the mavericks big wave surfers will be catching rides on epic waves come friday. >> pretty exciting. these big wave guys charging super hard. >> reporter: despite early concerns about wind, contest organizer jeff clark is now forecasting excellent conditions for friday's competition. strong south winds could have created conditions similar to 2010, when a rogue wave washed ashore, and knocked spectators to the ground. the latest forecast now has that wind staying offshore. >> i think we're going to see waves upwards of 40 feet. upwards of 40 feet. it's pretty exciting. all the guys are tuned up, and ready to go. >> reporter: they'll be patrolling the beach, and bluffs. >> the best imagery you're going to get is on your television, that's opposed to putting yourself in a precarious position where you're going to get hurt. >> reporter: competitors arrive from all over the world. they'll be staying here in rooms overlooking the water and the parking lot is in for a major transformation into a venue ready for thousands to watch all the action on giant monitors. >> it's a great team effort, to put this up in 48 hours and have 30,000 people come into this area in 48 hours, it's unbelievable. >> reporter: 24 of the world's best surfers are starting to arrive for the competition. we spoke with one surfer, who says he has a feeling of relief knowing that the competition is on, and the conditions are coming together for big waves here. ktvu, channel 2 news. the number of flu related deaths here in the bay area jumped again today to 28 confirmed cases in all. 6 new deaths are being reported. 3 in contra costa county. two men and one woman. san francisco reported one, marking its second this season, and sonoma added one more, in addition to three previous deaths. officials in san mateo confirmed one more, bringing the total there to four. in contra costa county, officials tell us, people seem to be taking their advice to get the flu shot. >> we're urging, especially young, healthy people to get vaccinated to protect themselves, but also so that they can protect those around them. >> by getting the advantage seep, you are less likely to spread the flu to your family, friends, and coworkers. uc berkely is trying to keep its students free of the flu now that classes have resumed after the holidays. tomorrow, it is hosting a new drop in flu clinic. scheduled to be open between noon and 2:00 p.m. members of the community can also stop by and get a vaccination. it is not just for students. some students can get the shots for free. chanting no guns, no hate, no mistakes. marching with a woman who's two sons were shot within 19 days. the group walked from the exact spot where 13-year-old lee weathersby was gunned down. the uncle of oscar grant, the 22-year-old shot and killed by a b.a.r.t. officer in 2009 was also there and called for community action. >> it's going to take us to stop this. we've got to love our babies. we've got to let them know that we love them. >> lamar broussard was killed along with his best friend, derrick harris. at this point, no arrests have been made. short shorts, pompoms, and a lawsuit. >> my goal is to change the way nfl cheerleaders are treated. apparently that's the way it's been done for 50 years. new developments tonight in a toxic discovery at san francisco state university. officials there are scrambling to find alternative locations to hold classes following that discovery. ktvu's heather holmes is live at sf state after looking over the results of a recent infection that led to the closure of a university building. >> reporter: julie, this 82 page report right here details not only levels of asbestos, but also lead paint and mercury. this is the science building and all the contaminants are above recommended levels. so tonight, this building is off limits. the sprawling science building, where 250 faculty and staff work and 10,000 students per semester study, suddenly shuttered. >> we're closing the entire building for the full spring semester at sf state. >> reporter: the university spokesperson says a routine inspection earlier this month turned up potentially hazardous materials. prompting what officials thought would be a temporary closure at the building. but this revealed a problem greater than first thought. asbestos was discovered in the basement. numberers also found -- inspectors also found peeling red tape. >> there's a lot of work to be done. >> reporter: the university is working on where to put students before the spring semester begins on monday. >> we are repurposing some areas. >> we have no idea what's going to happen. >> reporter: the freshman isn't sure where her business calculus class is going to be held, and if it will door coordinate with her work schedule. >> i had my schedule planned out, and i'm supposed to be going back and forth. knowing i need to go downtown could mean more money and more stress. >> reporter: this letter told students about the building close oar, and the relocation of classes. we asked what the findings mean to any of those who spend anytime in this building. they are working with experts to identify any potential health effects. heather holmes, ktvu, channel 2 news. oakland police are looking for an suv, and its driver linked to a deadly police shooting. the driver took off in the suv, but a passenger got out and ran, a chp officer with his dog chased the man, investigators say the suspect had a gun, and that the officer fired, killing the man. the chp dog was wounded, and is expected to recover. police are still trying to find the driver. new information now on monday night's deadly caltrain accident in the south bay. today, the santa clara county coroner's office says it's unclear whether the incident was a suicide or accidental. a second person was seriously hurt, and had to undergo surgery. investigators hope he'll be able to provide information once he recovers. new details involving the construction of the eastern span of the bay bridge. there are concerns about the long term reliability of the span. new supervisors were moved after questioning materials used on the bridge. an engineering firm suggested rejecting some of the rods used for the beam. governor jerry brown offered his state of the state address today. he spoke for 17 minutes, and urged lawmakers not to spend the state's new multibillion dollar surface. the governor even used his dog to help make his point. >> reporter: the governor handed out this, a mock playing card with the picture of his pooch. it says a prudent corgy knows to nibble at his kibbl were. -- kibble. a $10 minimum wage, and healthier books. >> a budgetary surplus in the billions. in the billions. but don't spend it. that's the point. >> reporter: that was the message on the flip side of the card. how good budget years are followed by bad. >> we should make sure we protect the rainy day fund, so we don't have these up and downs in the budget. >> reporter: no sweeping projects, or proposals, only a one liner on high speed rail. some favor a more balanced approach. >> not every dollar needs to be put away in a reserve, or for a repayment to debt. >> reporter: california's lingering drought also played center stage. >> we need everyone in the state to save water. >> reporter: republicans say they've been thwarted for years trying to build more reservoirs and water storage. >> literally, i guess this is very trite, but up a creek without a paddle. >> reporter: one republican said governor brown is sounding more republican every day, but brown's tight approach on money and the surpluses to show for it could help him in this election year should he decide as expected to run again. at ktvu.com, we've posted more video of the governor's speech today. bay area classic car owners left high and dry by a man they trusted. >> the bank called me, and said the check was no good. >> $33,000, no good. >> no good. 33,000. >> tomorrow at 5:00, 2 investigates a high profile car dealer who promised fast money and never delivered a cent. how justice is finally being served. that's tomorrow at 5:00 on ktvu. . overnight lows, are not as cool as last night. a little bit of wind to the north will keep temperatures off the bottom. you think we'll see numbers in the mid-30s, the low 30s. i don't think we'll see new 20s. you'll see frost in some of the inland bay valleys. tomorrow, temperatures slightly cooler than today. today we had lots of 70s, tomorrow, we're going to have lots of upper 60s, with a few low 70s showing up. a possible record. the red flag warning in the north bay hills, we'll talk about that when we come back, into the five-day forecast, there's a little bit of change coming towards the weekend. i'll day that in for you at 10:45. just know, slightly cooler tomorrow. a 10-year-old boy honored as a hero. how he spotted a missing man, and what he did next. then at 10:30, the raiderettes cheer for the team from the sideline. but one says the a small town in sonoma county is ordering mandatory water restrictions. they are doing that even though their water supplies are normal. >> reporter: heelsberg, the grape growing town of 11,000 has more than normal water supplies. >> right now, we have water, but we are experiencing a 15% increase in water usage. >> reporter: the city has had voluntary measures for 7 months, but the city council imposed restrictions immediately. >> we're homing we can educate the rest of the community, and they see how easy it is to conserve, and it becomes second nature. >> right now, outdoor watering every other day. no filling of pools, and no car washing. the goal is to use 20% less water. >> we are way over-spoiled with all the little things we do every day. it's not going to be that hard. >> reporter: tougher restrictions may be ahead. the city says it will stop washing sidewalks and cut landscaping watering. >> if we all do our part, maybe it won't be quite as difficult if it comes down the line we have to do even more. >> reporter: the city says it's trying to send a message. >> what we're trying to do is alert everyone that it's time to conserve. conserve now. >> reporter: for now, the city says it will keep it's plaza fountain going. the conservation message may really hit home when the plaza grass turns brown. ktvu, channel 2 news. house speaker john boehner joined his republican colleagues it to support legislation aimed at drought relief. it would also temporarily halt restoration of the san joaquin river and mean less water to repopulate salmon. >> when you look at what's been going on here in california, and you come from my part of the world, you just shake your head, and wonder what kind of nonsense does the bureaucracy do out here. how you can favor fish over people is something people in my part of the world would never understand. >> senator dianne feinstein issued a statement. she's worried the proposal could affect existing water protection. a 10-year-old boy from berkely is crediting his eagle eyes for spotting a missing alzheimer's patient. he also received a certificate of appreciation for doing the right thing. he had just seen a picture on his grandmother's phone, and she insisted he call police. >> i'm going, that's him. >> he was ecstatic to be recognized, and his classmates really supported him. he said it was pretty cool to help get the man reunited with his family and his mother says she's very proud of her son. our coverage of the b.a.r.t. shooting death continues. the training officers go through, and how it compares to other departments. >> tonight, i sat down with the cheerleader for the oakland raiders. why she says the team is violating state law, and is filing a to those who've been denied ewelcome to covered california. now, you can no longer be denied coverage because of a pre-existing condition. enroll today at coveredca.com. a member of the oakland raiders cheerleading squad is accusing the team of foul play. she says the team is breaking the law. the ravenette accused the team of violating labor laws. jana katsuyama spoke with that cheerleader today and is live with the woman's accusations. >> reporter: in public, the cheerleaders are only known by their public names. i did reach out to the raiders today, but they had no comment. on every game, they're on the field, cheering on the team. she was living her dream. >> raider nation, i'm raiderette lacey, and i look forward to seeing you in the stands. >> reporter: she felt becoming because one of the football fabulous females wasn't so fabulous when it came to the pay. >> i really wanted to see how the season played out. >> reporter: today, lacey filed a lawsuit against the team on behalf of herself and fellow raiderettes. it speaks that the contract promises $125 for each of the home games, but violates laws by requiring them to attend additional charity events, and other events with no compensation, and no meal breaks. they get no payment until the end of the season. lacey's attorney says the cheerleader's pay can be docked for minor rule violations. such as wearing the wrong clothing, or bringing the wrong pompoms to practice. >> i was be shocked at the kind of provisions in the contract, and the sophistication of the raiders could give this kind of contract to their employees. >> reporter: lacey said it was a shocking difference from her last job with the golden state warriors. >> the number one goal, i hope to come out of this lawsuit is to have the raiders change their policy and procedures. >> there is a separate nationwide effort that was launched on the website change.org, so far that has 27,000 supporters so far, that effort to ask nfl teams to pay cheerleaders a living wage. her attorneys say they want back pay and a change of policy. the raiders have 30 days to respond. reporting live in alameda, ktvu, channel 2 news. a 27-year-old man is recovering tonight from knife wounds he received after he was jumped by a would be robber in berkely. it happened at 6:00 monday morning on bancroft, and dana street. investigators say the suspect pulled out a knife, and demanded the victim's car keys. a struggle ensued, and the victim broke free. the suspect was caught a short time later, and taken into custody. he's been identified as 27-year- old damian alexander patterson. president obama today took a firm stand against sexual assault on college students. >> three years ago, we sent every school district, college, and university that receives federal funding new instructions clarifying their legal obligations to prevent, and respond to sexual assault. we have seen progress. >> the president signed a memorandum establishing a white house task force that works with colleges, and universities to prevent, and respond to students sexual assault reports. a white house report found that 1 in 5 female college students are assaulted, and only 1 in 8 student victims report it. a new plea from san francisco police to help solve the beating death of a man in his 80s. this friday marks four years since the attack that killed juan chen. police say he was attacked by a group of teenagers. it happened at oakdale, and third, as chen was walking home from a nearby muni stop. he died two months after the attack from injuries related to the beating. a $100,000 reward is now being offered for information leading to arrests. back now to our continualing coverage of the shooting of a b.a.r.t. police officer. some people were surprised that b.a.r.t. officers were searching an apartment. today b.a.r.t. says that's actually not uncommon. details now on the officers training and a key reason why a gun may have been drawn. >> reporter: we're used to seeing b.a.r.t. police patrol stations and trains. but yesterday's shooting was many people's first awareness that b.a.r.t.'s long arm of the arm extends well beyond the platform. >> just like any law enforcement officers in the state. >> reporter: they follow their investigations wherever that takes them. we wanted to know just how much training b.a.r.t. officers do get. entry level steers go through 6 months a the academy, a year of probation. lateral officers who are coming in through other departments go through 12 to 16 weeks of training. they exceed the state required 24 hours every two years. so with all of that training, how did one b.a.r.t. officer kill another in an apparent accidental shooting. >> i think this is one of the things that all officers fear the most. >> reporter: daniel lawson is a former sfpd captain. he says when officers encounter an unlocked door, that's a red flag someone might be inside. >> that could be trigger the officer to pull their firearm. but then proceed with caution. >> reporter: whether the officer's gun misfired, or he fired on accident is unclear. >> you need a second guess. but these decisions are made in split seconds. i snap my fingerer and that decision has to be made. >> a split second decision that changes lives forever. it was another mixed day on wall street. the dow lost 41 points due in part to a disappointing earnings report from ibm. the nasdaq added 17. added a half billion dollars in apple in the past two weeks for a total of $3 billion. icon is renewing his push for apple to buy back $150 billion worth of stock. that would double the value of his stock, but some analysts say it would ruin apple. so far, no comment from apple. netflix keeps growing, and expects to be even larger by spring. the company said it's added 4 million subscribers around the world, and now has a total of 44 million. profits soared by 45%. compared to a year ago. the news sent shares up 17% in after hours trading. coming to the rescue for a second time. >> i'm like oh, my god. here we go again. >> how this two time hearo found herself jumping back into action. >> a slight fires broke out today in the midst of protests in ukraine. at least two protesters were killed by police. demonstrator are angry that the ukrainian government decided to forge ties with moscow rather than a european union. the obama administration is calling for calm. israel announced today that it has foiled an al-qaeda plan to attack the u.s. embassy in tel aviv, and hit other targets inside israel. israeli intelligence officials say three palestinians plan to provide suicide bomb vests to four militants posing as russian tourists. the arrests were carried out in december, but just made public today. several unnamed state department officials say the u.s. has not been able to verify the israeli allegations, in particular, the alleged links to al-qaeda. the defense department said today a soldier from monterey has been killed in afghanistan. edward bali was shot by insurgents who were attacking his base in kandahar province. his family said he was on his third tour of duty in afghanistan, and had done two in iraq. he grew up in salinas, and is survived by his wife, christy. former secretary of state, hillary clinton is scheduled to visit california this spring. in san francisco, she's scheduled to appear as a keynote speaker at a three day marketing summit. in san jose, she's scheduled to take part in the speakers series and in san diego, clinton will address medical professionals, where she will address the implementation of the affordable care act. a blow for honda today as "consumer reports" says it can no longer recommend the honda fit after it placed last on a crash test. the test looks at how cars hold up when they hit a wall on the driver's side at 40 miles per hour. the insurance institute for highway safety says the structure of the fit car collapsed around the driver. the steering wheel moved, and the driver's head hit the instrument panel. in addition to the honda fit, five other so-called mini cars rated poor on the crash tests. the fiat500, the hyundai accent and the mitsubishi mirage. the chevrolet spark was the only small car to receive an acceptable rating. a state of the art medical center. and layoffs at target, as the retailer continues to take hits. >> up firs uñ a vallejo woman is being credited with saving not just one life, but two. >> two different times she witnessed crashes on the freeway. the latest today. she had the presence of mind both times to do the right thing. >> i'm just like, oh, my god. >> reporter: keenia williams slammed her brakes. staring her down was a multivehicle wreck on interstate 80. >> they tried to put her brakes on. it hit the wall, which made her flip to her roof. >> reporter: she says there was a woman trapped in a smoking vehicle. screeching right into her mind was a memory. >> i'm like oh, my god, here we go again. >> reporter: she jumped out of her explorer and into action. >> jammed the door wide open, and she was upside down. i'm reaching for the seat belt. she fell down a little bit, but i was able to get her out. >> reporter: moments later, a chp officer arrived on scene. >> he's like, what made you do that? well, it's not my first time that i've saved somebody. >> reporter: a big rig crash was bursting into flames. williams stops her car, jumps over a stream of leaking fuel, and pulls the unconscious driver to safety. the two were reunited a week later when her bravery was recognized by the city of san francisco. >> i must be a real angel. >> reporter: she's a single mom, a christian, and faith she says played a role. >> that's my god. my father upstairs. he's telling me, this must be my calling. >> reporter: that woman whispered two words. williams says that she will never forget. >> the highway patrol officer was in the ambulance with her. she was like, thank you. i was like, you're welcome. >> reporter: one young woman saving not once, but twice. a generous donation from facebook ceo mark zuckerberg and his wife, dr. priscilla chan. the money will help pay for a new state of the art building. a spokeswoman says she was very impressed by the work they're doing there. construction is expected to be completed next year. at least one person is dead after a huge storm dumped snow on much of the northeast. the weather system from kentucky all the way up to new england. in washington, d.c., snow covered roads made for treacherous driving conditions. many federal government offices opened two hours late. city offices and courts were also closed in philadelphia, where people are dealing with 14 inches of snow. in minneapolis, extremely high winds created a ground blizzard. advisories warned of temperatures from 25, to 35 degrees below zero. many schools across the state canceled classes today. black ice, and snow made driving very dangerous. temperatures today were up there. here are some of the records again, 75 in oakland. it was 74 in mountain view. in a tied record, 72 at san jose. the warm spot was livermore at 75. temperatures tomorrow are going to be slightly cooler than these numbers. one of the reasons we're going to see cooling is we've got a little bit of fog right along the coast. take a look here, and you'll see it. we haven't seen that in a while. little patches of it. but it's out that pretty much now in a larger form. showing up at half moon bay in pacifica. by tomorrow, it is should move that fog away. fire weather warning goes into effect tonight at 10:00 it went into effect. it stays into effect until tomorrow at 3:00 p.m.ment the store there is where is the winds? those should pick up overnight, and into the north bay. there's the high surf advisory. that is also starting to verify. you take a look at the current buoys offshore, and what you're going to see. they go up 8 to 12 feet. swells are on the increase. tomorrow's weather forecast, there's no big change. the extended forecast, we're going to continue with that increased fire in the north bay. that's because of this offshore flow. here's the high pressure center. it's pushing the winds offshore. it's going to make for a great mavericks contest on friday. this offshore wind really cleans up. a nice offshore flow. a dry pattern holds us really into the weekend. but the next day or so, we're going to see temperatures, just a little bit warmer. lots of 60s, even low 70s, as you go into the weekend, temperatures are going to pump up a little beyond that. we've just got this pattern where it's staying warm. 67 in napa. 69 in pittsburgh. 68 in livermore. these forecast highs are right above the average and slightly cooler than what we had today. still repetitive, this weather we've been experiencing is just non-stop, day after day. a few records here. a few records there. cool overnight lows. then the five-day forecast that looks like this. you've just got sunshine shooting across the top there. weekend warms up a little bit. as we head into next week, dry, dry, dry. the next shot for rain. somewhere around february 2nd, 3rd. >> somewhere way down the line. >> right now, we are dry for this five day, and the next one. >> 25 below in minneapolis right now. >> oh, my gosh, it's wrong. >> doesn't feel like january. more trouble for target tonight. the minneapolis based retail chain announced it is laying off 475 workers, and will eliminate another 700 vacant positions. it also announced it will stop offering health insurance to part time employees this spring. the income dropped last year, due in part to expansion in canada, and sales slumped after hackers stole information from 110 million target customers. what happened to the cal bears? >> it's exactly what julie always tells us, you've got to watch the game. that's why they play them. you get a little overconfident there. undefeated in the pac-12, facing usc who hadn't won a single game in conference. it looked logical on the court, but not to that man. early, 11-3 usc run. the bears would stay tight, but they just couldn't get over the hump. justin cobs led them with 22 points. fade on the baseline, coming up. got it to drop, and one. but cal was still down 9 at half. trojans just able to maintain the margin throughout. 23 off the bench. the freshman from serbia. that made sense in any language. 77-69, first conference loss for the cal bears. the schedule said san jose state was playing number 7 san diego state tonight, and that is when the bad news started for the spartans. aztecs hot. make it 16 straight wins. tenacious defense does it for them. winston shepherd on the dunk right there. high percentage shot. aztecs 17-1 on the year. the spartans looking for their first conference win, it didn't add up. 75-50, pretty much says it all. we'll let you know who the yankees long time warrior fans know about this. keeping this team healthy is something this team seemingly has always had issues with. can't help thinking, here we go again. andrew bogut missed practice, described as day-to-day. but in this instance, help could be on the way. jermaine o'neal's return could be within a week. you bet, anxious to return. >> schedule gets shorter and shorter. you see your team needs you, against indiana, would have had a couple of big guys. it gets tough to watch. i don't necessarily like as much watching games. all in all, we are trying to do something special. going for a serious run now. all of that money, the yankees don't have to pay a-rod certainly burned a hole in their pockets. they spend it in a big way. luring japan's top pitcher. $155million. $20million they had to pay to his team for taking him away. masahiro tanaka, it will be a bargain if he pitches anything like he did over there. like he did over there. >> thank you to thsuffered in silence... hoped... and lived in a state of fear... welcome to a new state... of health. welcome to covered california. the place to find quality, affordable coverage. financial help for those in need. and nobody can be denied because of a pre-existing condition. enroll now at coveredca.com. so yso you can happily let the grlife get in the way, while planning for tomorrow. so you can finish the great american novel banking for the life you have investing for the life you want chase. so you can >> today on "tmz" -- >> in hollywood, ain't no doubt about it, jews don't do manual labor. >> we got video of the stars of the hollywood hillbillies. >> you never see jews do and manual labor. they're all smart. >> she just spent the day with her jewish manager, who didn't do one lick of work besides talk on a cell phone. he leans back and said i'm going to make so much money off this. >> brook burke at a gas station in malibu. >> she's in a little workout outfit. >>eo
wasn't scheduled to step there. >> it was going somewhere between 50 and 70 miles per hour. >> reporter: folks waiting for their train didn't see the crash but certainly witnessed the aftermath. >> basically relaxing and reading my kindle. and i noticed the train went by and then all of a sudden there's like -- way too many you know sirens. >> reporter: the fatal crash stopped all caltrain, ace train amtrak and capital corridor trains for a short time. leaving people stranded. >> looks like i'm probably either have to stay here tonight or i don't know. taxi it in or something. >> reporter: eventually, caltrain was able to open a single track through the santa clara station but with no stops and creating hour plus delays system wide. caltrain is calling the first pedestrian fatality of 2014 unusual because it was two people hit. and not one. >> we need to understand what went on between the two victims and whether there was something more that needs to be investigated and that's one of the things that we'll be able to talk with the second victim about when he comes out of surgery. >> reporter: andria borba, kpix 5. >> this was the first caltrain fatality this year. last year, 13 people were killed on caltrain tracks. an oakland woman dealing with the violent death of a son for the second time in two weeks. her children both 15 and 19 both killed just blocks if home and her oldest son lamar brow saturday was killed -- broussard was killed sunday. their bodies were found in a car at the 100th and long fellow avenues. as christin ayers reports both mothers were at a vigil last night. ♪ >> reporter: the singing, the candles -- >> give the strength to the mothers of these two young men. >> reporter: the prayers. ♪ for danielle new it's a devastating case of deja vu. >> i don't have any more. i don't have any more. >> reporter: her youngest son lee weathers by iii was the first homicide victim of 2014. he died new year's day and his older brother lamar broussard was the fourth homicide of 2014. >> lee was a mistaken identity. lamar was ambushed. >> reporter: new just buried lee thursday. never imagining his older brother lamar who was by her side at the funeral would be gone days later. lamar was about to start school at lay knee college and worked at an oakland nonprofit. >> numbness. it's pain. i want answers. >> reporter: police have few answers although they are investigating whether lamar was targeted. >> he was -- questioned him last night like why would you do this to me? i still have the faith in god and everything. >> reporter: she has the support of this woman, her close friend whose son derrick harris where has in the car are -- was in the car with lamar and also shot dead. >> i loved my son. >> reporter: both women now janed in un-- joined in unimaginable grief. >> i lost my son. >> reporter: oakland police are still investigating whether this shooting and the one on new year's eve are connected. in oakland, christin ayers, kpix 5. >> lamar broussard and derrick harris were best friends since they were toddlers. the sunday's niner loss to the seahawks didn't sting enough, the postgame interview with richard sherman certainly sealed the deal. >> the final play, take me through it. >> well, i'm the best corner in the game. when you try me with a star receiver like crabtree that's the result you going to get. >> well, you've heard it by now and so have his parents, what do they think? >> people relumes understand my son. my -- really misunderstand my son. my son off the field is probably one of the best -- better people you want to know. i mean everything he does is for other people. >> sherman's parents say they didn't learn about the outburst until they returned home to compton. kpix 5's betty yu has reaction from his alma mater. >> reporter: between his game saving play and his rant, richard sherman's spotlight has never been brighter. some say his postgame behavior may have cast a shadow on stanford university. his alma mater. >> i mean that's a little aggressive for me. but -- i mean, freedom of speech. >> it was scary. let's be honest. >> pretty uncensored like. >> reporter: hours after he taunted crabtree, stanford students and alumni lit up social media. the stanford football facebook page and a sports forum debating whether his actions embarrassed the university. >> right on. >> reporter: sherman graduated with the communications degree in 2010 and played under coach jim harbaugh. he said sports helped put him on the right path. >> it's definitely you have to grow up and you have to be tough and you have to be mature and you have to be ready for it. >> one thing i like about sherman is he talks and he backs it up. >> reporter: sherman said -- >> reporter: sherman said he ran over to crabtree to shake his hand but when he shoved his face, he went off. >> the tv guy, i'm not a tv guy. i play ball. you make one play, that's a good play. >> reporter: back in the locker room vernon davis gave some pointers. >> he talks a lot. sometimes you just need to shut your mouth. you know. you got the win. be humble. >> reporter: in palo alto, betty yu, kpix 5. >> apparently there was bad blood between sherman and crabtree before the game on sunday. it started last summer at a charity event in arizona. one football party got so heated during sunday's game it ended in gunfire. fresno police say a 49er fan shot and wounded two seahawks fans after the men taunted him. the shooter was arrested. niners meanwhile return to headquarters in santa clara yesterday for the last time this season. boxing up the belongings and saying their good-byes including the quarterback colin kaepernick left without saying a word. >> crabtree, i feel like crap we lost. >> a lot of people didn't expect us to get to the game. some of the adversity we faced. we'll be stronger when next year comes around. >> this was the third straight year the meaners' season ended with a -- niners' season ended with a loss in the nfc championship game or the super bowl but the fact they made it to the game three straight years? something to be said for that. only one team doesn't finish with a loss. >> how hard though. all over. that's it. >> i thought they had it. >> no reason to watch football anymore. >> oh no there's some more things. there's one more game. >> one nor game to go -- more game to go. don't forget about the pro bowl. around the bay area today we are seeing some patchy dense fog developing along the coastline this morning. watch out for that early on today. otherwise a lot of sunshine coming our way and again another round of very mild temperatures. maybe near record, maybe a couple of records broken again by the afternoon. lower 60s though towards the coastline with that patchy fog and also into the valleys with low 70s. a mostly clear start. just a little hazy and chilly in spots. 32 degrees in santa rosa. 40 in san jose and 45 degrees in san francisco. this afternoon, we are going to warm the temperatures up inside the bay in the 60s and a few 70s. and in the valley. up toward the coastline though. planning go to to the beach and temperatures in the low to about the mid 60s. all right let's check on the roads now. good morning everybody. the commute is locking awesome right now. no accidents no big traffic delays. and if you're heading for the bridge it is body open in both directions of highway 92 no problems to report between hayward and foster city. the bay bridge drive do keep in mind there's road work to the westbound direction at 80 and cruz will be picking up the cones by 5:00 this morning. also construction to watch out for just between san leandro and the oakland area. right here is 880 as it rolls through oakland just remember that two lanes are going to be shut down in both directions approaching davis street. that roadwork expected to be picked up within the next 30 minutes or so. our first b.a.r.t. trains are out of the yard on time. no delays for b.a.r.t., the commute or ferries. that's a look at cc best traffic. someone just posted these flyers in the city's month claire district. as council member and candidate libby shaft with a swastika scrawled across the forehead. the line stop the dac at the bottom refers to the domain awareness center a proposed surveillance facility. >> someone showing around plastering that's crap and i haven't even read it. i'm just not happy at all with this. >> shaft who was a jewish decent says the -- descent says the flyers are painful and shameful. last september in a different part of oakland, flyers in the fruitvale district shows the council member with a swastika on his forehead. it's believed the culprit was upset with his proposal for a teen curfew. that person still has not been caught. a new face of terror for security forces at the went games in russia. kpix 5's allen martin has more on a woman known as the black widow. >> reporter: her name is rusanna ibragamova aka the black widow. now she is vowing revenge. >> this is the biggest threat we've seen to any olympics in quote some time. >> reporter: russian police have distributed posters of her. they afraid she may be in sochi as part of a terror plot. today the olympic torch was carried through vol go grad. a double bomb killed two people last month. it purports to show the suicide mommers and also threatening -- bombers and also threatens the russian president putin and any tourist who goes to show chi. putin is acting tough, if we show we are afraid he told a group of reporters, we will encourage the terrorists in obtaining their goals. russian security forces have been cracking down on islamic militants in the areas near sochi and an attack this weekend reportedly killed seven of them. allen martin, kpix 5. >> the russians have established what they call a ring of steel around the entire sochi region but there's concern that other widows whose husbands were killed may also try to carry out attacks at the games. time now is 4:41. well-known actress leaves a stage play in san francisco and it's all because of here support for a candidate for governor. we'll explain coming up. >> and amazon has developed a way to ship its products before customers even order them. how the company says it all works when we come back. ,, nebraska. search continues this morning for the second person killed in an explosion at an animal field plant. this is in nebraska. one body recovered yesterday at the international nutrition facility in omaha. but the search had to be put on hold because of weather conditions and the instability of the damaged building. parts of the two floors collapsed and one worker who escaped says he knew he had to get out of there fast. >> where it collapsed on the second and third floor was probably about ten yards away. but the stairs was right -- right beside the office. so we -- we got out. >> all the workers who now accounted for in addition to the two killed. ten others had to be treated as nearby hospitals. a well-known actress is bowing out of a stage play in san francisco because of backlash over her support of a republican candidate for governor. kpix 5's joe vasquez got reaction to the departure of maria conchita alonso. >> i have to admit that -- i had no idea that tim was with the tea party but i knew about him and i knew that you know he's representing the republican party. >> reporter: but has not responded to my attempts to talk to her directly. >> i want a gun in every californians' gun safe. >> reporter: ever since the political ad was released last beak alonso has been under fire especially from spanish language radio listeners who lit up the bay area on the radio waves. >> i'm the one who said i'm getting out of here. i don't want the other actress to suffer from this. they were calling and saying they were going to burn down the theater and they were going to boycott it. >> reporter: she was going to star in a spanish language production of "the vagina monologues" scheduled to open next month in the mission district. many here were upset that alonso a latina was supporting a man who had been a leader in the minuteman movement. >> great day to be a vigilante. >> reporter: when comedian stephen colbert's program followed donnellly back in 2006, his group was building a fence at the border, a new backlash against the backlash began. fox news and many websites ran the story, our own website received thousands of angry comments. many are denouncing what they see as a prime example of liberal intolerance. >> i think it's a real first amendment issue, a free speech issue and boy, it goes to show when you don't agree with the democrats, so much for tolerance. and so much for diversity of opinion. >> the show is scheduled to open february 14th with the new actress in alonso's former role. first family honored dr. martin luther king jr. today by serving the homeless yesterday, president obama alongside first lady and his daughters made burritos with volunteers at a local community kitchen. for the first time, we're hearing an interview though with dr. king that a reporter actually found in his attic. >> may well be that the negro will serve as a savior of our nation, that is to save the soul of our nation in this period when so many forces are at work seeking to scar the american dream. >> it made me really wish that he was still here and what kind of changes would be taking effect if he was still here. >> the eight minute tape from 1960 was played outside in memphis yesterday. 30-year-old bay area tribute to dr. king will go on for at least one more year now. but ticket sales were very disappointed this year. for the annual freedom train from san jose to san francisco. the journey heads up north and it symbolizes the march led by dr. king from selma to montgomery, alabama as he did back in 1965. it's the last event of its kind in the nation. >> a really neat event. can you imagine losing an interview with dr. martin luther king jr.? i know. >> can you imagine finding martin luther king jr.'s tape in your attic? >> what a voice. >> i'm glad they got that part of history back again. hey guys around the bay area today. some changes coming our way. some patchy dense fog along the coastline and looks like the temperature is going to cool slightly there but stillesting very mild -- still staying very mild. about 1,000 feet or so and not going to push too far on shore. so with that in mind, we have a whole lot of sunshine coming our way again. and some very mild temperatures headed out the door. mostly sunny skies. just a few high clouds drifting overhead and some coastal clouds and then mostly sunny but some breezy weather ahead as we head in toward the latter part of the week. that ridge just too strong. you see the storms just lining up in the pacific here. they run into the top of the ridge and then have nowhere to go but over the top of it. coping us high and dry for us until probably the ebb of the month. temperatures into the central part of the state in the 70s again. 56-degrees in lake tahoe a couple of high clouds drifting across the skies later on today. otherwise looks like a very nice day and maybe some of the temperatures sneaking back up into the 60s and low 70s. and getting near record levels by the afternoon. in the south bay we're planning about 69-degrees in san jose and 68 in sunnyvale and 69 in redwood city. 69 in dublin today and should be about 68 in concord and 68 vallejo and the temperatures 60s and 70s inside the bay. the next couple of days we will watch the temperatures cooling down a little bit. breezy on thursday and friday and right now staying dry through the weekend. all right let's check on traffic now. good morning everybody. chp is checking on reports of an accident on the approach to the altamonte pass. it looks like it may be slowing down some of the traffic in the eastbound direction. you can see the delays there eastbound. fortunately the commute direction westbound no big delays to report so far as you make your way through the livermore valley. traffic continues fine approaching the dublin interchange as we look at these live pictures of westbound 580. approaching 680. now the bridge commute, you're still in good shape. no problem to report for highway 92. this as the bridges are still good options loving the east bay bound for the peninsula. just watch out for work crews that have set up shop at the westbound direction at the bay bridge. they have some lanes shut down until just after 5:00 this morning. also road work on the nimitz both ways between san leandro and oakland, the lanes shut down approaching davis street. the south bay commute has been fine still no beg problems to report for the 880 and 237 interchange. b.a.r.t. still checking in trouble free with no delays for bart ferries or the altamonte commuter express. guys? all right thank you. apparently amazon figured out a way to read your mind. it just got a patent for something called anticipatory shopping. by analyzing customer data and amazon says it can predict what you might buy next and move the products to a warehouse near you before you even order them. amazon says the strategy is meant to cut down on shipping time. futures trading points to a higher opening after the long weekend on wall street. from cbs money watch, wendy gillette says the market is keeping an eye on the feds' efforts to help the economy. >> reporter: the "wall street journal" reports the federal reserve could slash its stimulus program for the second time in two months. the announcement could come at outgoing chairman bernanke's final meeting at the end of the month. the newspaper reports the central bank's bond buying program could dip to $65 billion a month from the current $75 billion. wall street reopens today after traders took the day off for the martin luther king jr. holiday. on friday, the dow rose 41 points. the nasdaq fell 21. online retailer overstock.com is now accepting the digital currency known as bitcoin. overstock boastst it's the first major retailer to do so allowing customers to avoid entering the credit card information. bitcoins are created entirely online and are not regulated by any government. and there's now one less thing to worry about as the wedding day approaches. insurance policies are now available in cases of extreme weather, unexpected military deployment, problems with venue, illness and even your partner getting cold feet. the average wedding price ballooned to about $26,000 here in the u.s.. only a small number of insurance companies offer the policies. that's your money watch. for more log on to cbsmoneywatch.com. at the new york stock exchange, i'm wendy gillette. coming up, flyers depicting a mayoral candidate with a swastika on the forehead are posted in an east bay city. what those responsible for the photo hope to accomplish. >> but first a mysterious object is spotted in the sky over concord. this morning witnesses react to the unusual sighting. little dense fog making its way back in along the coastline. watch out for that. otherwise, we should see clear and some mild conditions just a couple of high clouds. more on your forecast coming up. and looks like the accident over at the 580. 205 interchange now delaying traffic for that eastbound direction. you can see the delays there. watch out for the crash 205 approaching 580. deail tails on this and more traffic in a few minutes. all right thanks. some people over in the east bay are still trying to identify a flying object. >> that mysterious object was seen in the sky over concord. take a look. this video comes from an observer who posted it to claycord.com. witnesses last thursday say whatever it was it moved very fast and high in the sky and didn't make any noise. one coy watcher we talked to believes it was from outer space. >> because i've never seen anything like that. like what you showed me in the video. i've never seen the blue light. i've never seen it -- where it's round. circular kind of thing. >> what do you think? >> i think it's a ufo. >> you think so? >> i do. >> so far no official word on what it might have been though. >> or a plane. it is 4:56 now. next some new concerns about security at the olympic games in sochi. just how big the terrorist threat is coming up. >> and a fire damages an apartment complex in the west san jose. i'm kiet do with a live sort coming up -- report coming up. hey, buddy? oh, hey, flo. you want to see something cool? snapshot, from progressive. my insurance company told me not to talk to people like you. you always do what they tell you? no... try it, and see what your good driving can save you. you don't even have to switch. unless you're scared. i'm not scared, it's... you know we can still see you. no, you can't. pretty sure we can... in the wrong place at the wrong time. a bay area commuter train slams into not one but two people on the tracks. >> it would have been going somewhere between 50 and 70 miles per hour. >> investigators are trying to put together the pieces after one pedestrian dies and another was injured. this is the biggest threat we've seen to any olympics in quite some time. >> police in the lick city of sochi -- olympic city of sochi, russia are on the hunt for potential bombers. >> the u.s. plans to put transport planes on alert and is deploying two navy ships to the black sea. driving over the golden gate bridge isn't cheap and pretty soon it could cost you even more. a meeting to discuss the possible toll hike is happening today. from across the bay to around the world, the stories that matter on kpix 5 news this morning. and good morning everyone, tuesday, january the 21st. i'm frank mallicoat. >> and i'm michelle griego. time now is just about 5:00. another look at weather with lawrence. >> all right guys got some patchy dense fog moving in along the coastline this morning. i think that's the main weather concern early on today. that fog going to break up just a thin layer but at the coast. temperatures there going to be cooler into the 60s and some 70s inside the bay and also into the interior valleys. mostly clear out the door but a little cold in spots if you're stepping outside. down just above freezing in concord at 33. below freezing now santa rosa. 30. 40 in san jose and 46 in san francisco. this afternoon, these temperatures running well above the average. expecting those highs to run up in the 60 and 70s and then look at this. the number runs a good 9 to 15 degrees above the average and no rain in sight. we need the rain too huh? okay good morning everybody. we're going to talk about the morning commute getting into work shouldn't be a problem for you especially if you plan on taking 880. 880 rolling well in both directions. it was roadwork overnight and caltrans set up shop in both directions between san leandro and oakland. that roadwork has been picked up since and traffic is moving well both days as
frank mallicoat. >> and i'm michelle griego. a high speed chase suspect was shot by an officer. the chase started on hyde street near interstate 580 around 3:00 this morning. chp says the suspect sped through local streets and ran several traffic signs. the car finally came to a stop at a dead end on east 15th and 57th street. the man was taken to a hospital and no word on his condition. i'm cate caugurian live in the newsroom. police in the olympic city of sochi, russia are on hunt for potential bombers. it's the latest threat against the games now just more than two weeks away. we'll have the latest on the olympic threat. and tech owned private shuttles have sparked a lot of controversy in san francisco. i'm mark kelly. coming up later today we could see a resolution. with the look at the kcbs traffic. watch out for this accident now in the peninsula. it happened in the southbound direction of 101 just outside of sfo. so as you approach mill bury avenue. this accident involving a tour bus and a big rig blocking at least one lane of traffic. now fortunately, since it's so early in the morning and we haven't had too much of a traffic delay through there. it's not delaying the traffic for 101 but again watch out for the south 101 if you plan on driving out to the airport. there will be that accident blocking at least one lane. that's a look at kcbs traffic. frank -- lawrence sorry. thank you. we will have some sunshine around the bay area again today. high pressure overhead. but there has been some patchy dense fog moving in along the coastline and we're watching for that this morning. watch early on today and it should begin to lift. just a thin layer. you'll see some 60s and low 70s inside the bay and also into the valleys. as we look out over the bay right now. we've got hazy skies and mostly clear. temperatures now a little chilly in spots. the air is very dry. 38 in san jose and 44 in san francisco. this afternoon, we were expecting the temperatures to warm up nicely again. getting near record-breaking temperatures. up in the 60s even some low 70s. these are well above the average. about nine to 15 degrees above the average for this time of year. that's the latest from here guys, back to you. developing news from west san jose now. about a dozen people all displaced after a fire at their apartment building overnight. the fire on cadillac drive started just before 2:00 this morning and it was out about 45 minutes later. it started in the kitchen of the unit that was destroyed. a lot of water damage making five other units uninhabitable. no injuries were reported. >> it was -- everybody. everybody's scared. you know people asking -- everybody that's fine? yeah. everybody is outside but -- it's scary. everybody is scary. >> red cross went to make sure everybody had a place to stay this morning. and new this morning, san francisco police riased a man in -- arrested man in connection with a shooting. the suspect taken into custody on highway 280 around 10:00 last night. officers had northbound lanes closed for at least two hours. no more details were we re loosed on the shooter -- were released on the shooter or an arrest. and investigators hope a survivor will be able to tell them what happened on the cal tran tracks last night. two men hit by a caltrain it happened around 5:30 last night. one of the men was killed and the other survived and had surgery overnight. officials hope he can talk with them later today. >> we need to understand what went on between the two victims and whether there was something more that needs to be investigated. >> relaxing reading my kindle. and i noticed the train went by. and then all of a sudden there was like way too many you know sirens. >> santa clara station was closed for more than two hours after that deadly collision. police in sochi, russia are on the hunt for potential suicide bombers. it's the latest threat against the winter olympics. now just more than two weeks away. kpix 5's cate caugurian is live in the newsroom with the latest. >> reporter: michelle russian authorities are on high alert right now. they've left police leaflets in hotels warning people about three potential female suicide bombers. one of whom they believe is in sochi. officials are searching for three suspected female suicide bombers including suspected terrorist ruzana ibragimova. she's called a black widow which refers to widows of islamic militants killed by security forces. officials fear she may already be in sochi. >> i think this is the biggest threat we've seen to any olympics in quite some time. >> reporter: but bess noble the former cbs news bureau chief in moscow says there are more concerns than just the black widow. >> there are a lot of people in russia who do not like putin. and want to see the president get egg on his face. >> reporter: a recently released video shows members of an islamic militant group apparently assembling a bomb. in it they take responsibility for two recent suicide bombings in volgograd and promise more attacks at the games. >> you see if the russians worried about a series of potential actors who could disrupt the olympics. >> reporter: the u.s. plans to put transport planes at european bases on alert and is deploying two mayo ships to the black sea in -- two navy ships to the black sea. the games begin february 7th. russian authorities are blaming the so-called black widows for previous suicide attacks in the country. reporting live in the newsroom, cate caugurian, kpix 5. russia has spent an estimated $2 billion to set up a security perimeter around sochi and the olympic venues called the ring of steel. and oakland woman is dealing with the death of a son for the second time in just three weeks. dinyal new's only two children were shot to death just blocks from home. ♪ this is the candle light vigil last night for her oldest son lamar broussard and his best friend derrick harris. both were shot to death on sunday at 100th and long fellows avenue. new's youngest son on new year's day that liberatesby iii died a day after he was shot on his way home from a boys and girls club. dinyal new doesn't believe there's a connection between the two killings. >> lee was a mistaken identity. lamar was ambushed. >> police agree that broussard and harris were targeted but they're not ruling out the possibility that their murders were connected to that of new's youngest son. so far there are no suspects. 457ing today, a court appearance for a suspended san jose state university student. one of the four that is accused of racially motivated crimes against a black roommate. 19-year-old joseph baumgardner of low chris will be arraigned later this morning. one other defendant will be arraigned tomorrow and another has already pleaded not guilty. and the fourth is being handled by a juvenile court. each was charged with battery and a hate crime. and we're checking some breaking news down in the south bay. kpix 5's kiet do is at the scene of a strip mall burglary down in san jose and he joins us with the latest. keit? >> reporter: yeah, san jose place have this entire -- police have the entire block long strip mall completely surrounded right now. they're looking for a burglary suspect or suspects who may have tripped an alarm early this morning. the san jose fire department is also helping them out by providing a ladder so they can get on roof. they're out here with the weapons drawn going door to door looking for the suspects. this is at 1814 hillsdale avenue. if you google that it comes back to the hayes and medical marijuana dispensary. so -- whether or not they tried to break into that establishment we'll be finding out very shortly here. looking at a lieutenant who just walked up and she's giving a -- he's giving a briefing to the media now. but yes this complex is surrounded by police. we'll have more for you in the next half hour. for now live in west san jose, kiet do, kpix 5. time now is 6:09. lady gaga is a hit artist but not everyone agrees with her abilityics. coming up -- abilityics. come -- antics. coming up -- >> and grand jury new jersey governor christie' sworn in for a second term. >> some high clouds drifting our way too. we'll tell you what that means for the forecast coming up. >> and grass fires now on the fremont side of the sew knoll grade causing -- sew knoll grade causing problems for the commute. details on this with kcbs traffic still ahead. ,,,, for over 60,000 california foster children, nights can feel long and lonely. i miss my sister. i miss my old school. i miss my room. i don't want special treatment. i just wanna feel normal. to help, sleep train is collecting pajamas for foster children, big and small. bring your gift to any sleep train, and help make a foster child's night a little cozier. not everyone can be a foster parent, but anyone can help a foster child. good evening, this is flo. [laughs] yes, i'm that flo. aren't you sweet! licensed phone-ups available 24/7. call 1-800-progressive. was banned for vulgarity - gaga fans in china will be to enjoy three years after her music was banned. lady gaga fans in china can now enjoy the album. the album was released here in the states two months ago. they have not at everyday the lyrics and the cover was change today seem a little less suggestive though. also trending row zeh that the european agency's comet chasing spacecraft did wake up. apple 5 c owners can now take the shattered devices to apple stores for screen repairs. and cheesy skillets nearly two million pounds of kraft cheesy skillet singles are being removed from store shelves because they contain soy and the label didn't say so. you can just go to @cbssf and check it out. and cars become more popular the shortage of chargers grows. and that is creating some incidents of charge rage in silicon corral slow. one company -- valley. one company is drafting guidelines for eb driving employees to clear up the thorny etiquette issues. >> with new technology. cost little problems -- comes new problems. what's going on is we have a few things to watch out for. the biggest one so far seems to be this problem on the sunol grade. so it's on the fremont side of the sunol grade and cph has been out there for over 30 minutes now watching these three small grass fires. fire department on scene. and they hope to have those grass fires put out in a few minutes. they're not too worried about it and they have shut down the right hand lane between south mission it's caused a backup heading through there. also 880 and san leandro an approaching 238. three car accidents and got traffic backed up on to 238 and 580. in fact babbled up out of cast -- backed up out of castro valley. the commute southbound 101 approaching 237. got an accident involving a bus and a big rig. it's after to the right what happened -- off to the right hand side. the bay bridge it was looking good up until a few minutes ago. bridge crews turned on the lights and now we have a backup extending tot 880 overcrossing. so expect delays there. the san mateo bridge still looking good with no delays to report. that's a look another kcbs traffic. here's lawrence. some of the temperatures dropping off in the 20s again. but we've also seen some patchy dense fog move in along the coastline and haven't been able to say that for quite some while. but yeah the fog is moving in along the beaches right now and be careful traveling this along highway 1. some dense fog briefly. just about 1,000 feet thick. so that should break up as we head throughout the morning hours. still lots of sunshine into the afternoon and a few high clouds. and a couple patches of coastal fog and then mostly sunny and breezy in the latter part of the week. think the fire danger is going to be elevated into thursday and friday. high pressure still in control. setting all the storms that have just been lining up in the pacific northwest but can't get here. keep things dry for the foreseeable future and some winter in other parts of the country. a high 06 about 23 degrees expected as much as a foot of snow in new york city. maybe 10 inches into boston and 23 degrees. and a chilly 11 degrees in chicago. some of windchills below zero. around the bay area, we can't buy a storm just a couple of high clouds continuing to roll across the skies. into the afternoon. otherwise i think the temperatures again still well above the average. maybe as much as 15 degrees above the average this afternoon. time is about 69 degrees in san jose. 70 morgan hill and 67 in san mateo. numbers in the east bay as high as 68 in concord. 70 degrees in pleasanton and about 69 in danville. inside the bay area, you're looking at the temperatures in the 60s and also the 70s. and looking out over the next couple of days, more sunshine. just a couple of patches of fog tomorrow morning. those winds kick up and offshore dry wind on thursday and friday. and that's why the fire danger is going to be elevated. some of the winds start to calm down but we stay dry right through the weekend. and today sunrise time is at 7:21. sunset time is 5:21. do you feel better? that was a nice stretch. you really just kind of let that one out. >> she tries to do jumping jacks. >> you're sitting down on the desk for two and a half hours. >> she didn't like my coffee? >> what? >> i didn't. i didn't. so lawrence i need some. >> i'll get you one. >> all right thanks. well, happening today republican chris christie will be sworn in for the second term as governor of new jersey. the ceremony comes amid controversy surrounding his staff. the latest involves the city of hoboken. the mayor says christie's lieutenant governor told her she had to approve a real estate development project in hoboken or lose money for the hurricane sandy recovery. the lieutenant governor denies that. >> the mayor's version of our conversation in may of 2013 is not only false but is illogical. >> prosecutors are already looking into recent traffic jams on the george washington bridge that were allegedly organized by christie's staff members as political retribution. happening today more about how the catholic church handled sexual abuse of children by priests in the chicago area. thousands overpages of documents are being ma made public and they include unless about 30est -- information about 30 priests. the lawyers say they show the church concealed abuse for decades. and the search resumes this morning for the second person killed in an explosion at an animal feed plant in nebraska. one body recovered yesterday at the international nutrition facility. this is in omaha. but the search put on hold because of some bad weather conditions and the instability of the damaged building. parts of the floors that collapsed. investigators now trying to figure out what may have caused that blast. and classes back in session after a shooting at a university out of philadelphia. police say a gunman shot somebody in the parking lot at widener university last night. the student is in critical biostable condition. the gunman is -- but stable condition. the gunman is still on the run. coming up a football party turns from fun to scary. how a rivalry led to gunfire. >> and good morning everybody, we got an update on 49ers' star linebacker that arrow bowman and the w -- nova roboman. and -- navorro bowman. and the ws last night? >> you can e-mail your nomination to us at coolschools@kpix.com. we may come and feature your school on the show. ,,,, [ bell dings ] [ coughs ] hi. yo. cold? nasty cold. dayquil severe. nyquil severe. thanks dude. [ female announcer ] walgreens. get in. get out. feel better. select dayquil severe and nyquil severe. $11.99 at walgreens. good morning everybody, here's comes your tuesday -- here comes your tuesday sports update. according to reports, 49er linebacker navorro bowman tore his acl and mcl in his left knee in the loss sunday versus seattle. donte whitner was upset that seattle fans really reacted badly to the injury. >> from what i hear you know, when bowman was carted off they were throwing food and all types of stuff at him. that's like pure ignorance. him being a great player that he is. you should have more respect for the player and more respect for the game. pacers' star paul george and indiana at oracle last night to take on the dubs. they were up by 20. and steph curry says just climb on my back. i'll lead you through. that made it an eight point game. late fourth and blake thompson made it a four point game. here come the dubs but indiana had the answer. all five starters in double figures. george hill a dagger of a shot and the pacers win 102-94. the sharks at home last night against calgary. tied at 1 before tommy wingels hit it between the pipes. now it's tied at 2 in the second. pavelski little joe coming on. sharks win it by a final of 3- 2. that is your tuesday at this hour. we'll see you later everybody. have a great day. thank you vern. play of the day nba j.j. redick and l. a. clippers, going to be the alley of this ooper and jordan. and here it goes. ball goes up and there's the dunk. clippers went on to beat the pistons in detroit 112-104 and a quick score, novak djokovic out in the australian open. lost in five sets. well some new details about richard sherman's rant after sunday's nfc championship game. he's apologized. sherman is the sea hawk knowhow docked un-- who knocked down a pass in the end zone at the end of the game and then went on tv to brag about it and slammed san francisco's michael crabtree. >> the final play? >> well i'm the best corner in the game. when you try me with a star receiver like crabtree. that's the result you going to get. >> how can you forget that right? sherman told espn he apologizes for attacking an individual and taking the attention away from the fantastic game by his teammates. one party got so heated it ended in gunfire. police say a 49er' fan shot and wounded two seahawks' fans in fresno on sunday. after the men taunted him. they're expected to be okay. the suspect was arrested. 6:25. coming up another winter storm taking aim on the east coast. how people are prepping for the big storm. >> a lot of controversy over those tech owned private schultzs in san francisco -- shuttles in san francisco. but coming up hopefully a resolution everyone can agree on. ,, good morning everybody, live from dublin with mobile weather today. we're talking about how the health concerns are being caused by unseasonably warm weather. details with mobile weather. and we've seen attacks on those tech owned private shuttles in san francisco. i'm mark kelly. coming up, a pilot program that could put the controversy to rest. and little patchy fog sneaking in along the coastlines. still we'll see a lot of sunshine and maybe near record temperatures. talk about that coming up. and i'm liza batallones with your kcbs traffic expect backups now at the bay bridge toll plaza. but better news for the sunol grade. i'll have details with kcbs traffic still ahead. all right thank you very much. good morning, tuesday january 21st, i'm frank mallicoat. >> and i'm michelle griego. 6:30 right now. some breaking news in west san jose. police have a suspect in custody after surrounding a strip mall in the 1800 block of hillsdale avenue. and you're taking a live look right now at the scene. police got the call about a quarter after 2:00 this morning. a company reported the problem at a medical marijuana dispensary. officers found a suspect hiding in a small space in an elevator shaft and i think he was the only person involved in this incident. but police are still checking the entire mall. the suspect is being treated for some minor injuries after spending about three hours in the cramped elevator shaft. its is 6:30 now. and federal government is closing offices in washington, d.c. as another winter storm moves towards the east coast. and as we report bitter blast of cold is already gripping the midwest. >> reporter: the morning commute in chicago is a messy one. snow and frigid temperatures are back. the latest winter storm is traveling from the midwest to the east coast and could dump up to foot of snow in some places. in virginia, crews are pretreating roads to keep the snow from sticking. in new jersey, people are loading up on supplies. >> if i can't travel, it's a movie day and popcorn and cheese and pepperoni. >> reporter: the storm is already creating plenty of travel problems. airlines canceled more than 1,000 flights in anticipation of bad weather. along with the snow are subzero temperatures. here in minneapolis with the windchill it feels like 20 degrees below zero. but cold temperatures are not enough to keep minnesotans indoors. many bundled up and headed out for a game of hockey or even a brisk walk. and it was a long cold night in syracuse, new york, as tunes camped out for -- students camped out for basketball tickets. >> checking the temperature on the phone and seeing that it's like below zero and you're pulling every little bit of blankets and clothes you have over you. >> reporter: in roanoke, virginia, yesterday some were walking around in shorts. tonight, temperatures will hit the single digits. jamie yuccas for cbs news, minneapolis. >> around 56 million people will be ohm pactedty -- impacted by the storm in the northeast corridor. that way today or tomorrow in check. >> it's hard to believe that other parts of the kuhnry have having to -- country are having to deal with this. >> we get a huge dome of high pressure along the west coast and you get the trough along the eastern half of the united states and all the cold air plunges right down from canada. that's what we're seeing today and some patchy dense fog around the bay area towards the coastline early on. high pressure in control and some more very mild temperatures around the bay area into the afternoon. looks like no major changes in effect for today. except for that patchy fog along the coast. the temperatures will be cooler there and highs only in the low to about the mid 60s. but inside the bay some 60s and some low 70s. out the door we go and mostly clear skies to start you out this morning. temperature of about 34 degrees in concord right now. 29 and below freezing in santa rosa and 38 degrees in san jose. as we look towards the afternoon, we are going to see a lot of sunshine coming our way. temperatures up in the 60s and also the 70s. looking like some very nice weather ahead. all right. all the warm and dry weather causing some problems at this time of year. for more on that to roberta gonzales in dublin. >> yes lawrence, mobile weather drove to dublin today. we are off inspiration way and i have tootle you the most notable thing about the weather today? the huge swing in the temperatures. it is currently 34 degrees here in dublin going up to high today of 69 degrees. take a look at the bright lights of the tri-valley as this sun is trying to make an appearance on this tuesday. because right here in dublin today's forecast high is 69 degrees. that's well above the average of 57 degrees. and today should be the ninth consecutive day of near or record warmth. right here in the tri-valley. in fact record warmth expected at least all the way through saturday. now this is all coming at a price. not only right here in the tri- valley but throughout much of the blare. if you find yourself sneezing and wheezing and thinking you're coming down with a cold or perhaps even the flu? local al gists are telling me -- allergists are telling me this is probably because of allergy season. yes, typically what we experience throughout the month of april and also may is what we're experiencing now. and the reason is? take a look at this right here. in dublin off of inspiration way here. see all of this? we have some dead dried up weeds and grass. this is again something we typically see during the summer months but because we have the lack of rainfall this winter, everything is drying out and much sooner so therefore we have a sooner advancement of allergy season. more on the local weather. visit us online at kpix.com/weather. reporting from mobile weather in dublin, roberta gonzales, kpix 5. and i'm liza batallones with your kcbs traffic. great news for the sunol grade which had been delayed because of a series of very small grass fires southbound 680 approaching south mission. so this was on the fremont side. the good news is that all lanes are now open and the fire department cleared audiotape the fires and now -- up the fires and now traffic is good leaving the area down to hill to fremont bound for milpitas. but delays on the nimitz. an accident southbound 880 near 238. you can see the yellow there and it is backing up traffic on 880 and also got traffic slow on to 238 towards 580. the backups on 580 begin out of castro valley approaching that 238 and 880 interchange. the bay bridge commute, the metering lights are on and traffic now backed up from beyond the 880 overcrossing. that's the look at kcbs traffic. guys? all right thank you. happening today, san francisco's city leaders considering a pilot program to let fancy shuttles like those google buses use muni stops. kpix 5's mark kelly joins us live and mark the plan is not sitting well with some. >> reporter: not with some michelle but the point of today's meeting is for muni and the private shuttles to sit down and figure out how both sides can live in peace and harmony and share bus stops like this one at the corner of oak. now all this comes at the same time of memo leaked from google that shows just how important it is for those tech companies on this controversy. now this has been a heated topic with these private shuttle buses. here's a protest back in december in the mission where protestors demonstrated around a tech owned shuttle bus. because many are blaming tech workers for changes in -- for the changes in san francisco like rising rents and are targeting their anger at the shuttle buses owned by the tech companies. now the compromise between the shuttle buses and muni is an 18 month pilot program where one. it would let shuttles use only 200 of the 2500 muni stops. the shuts would have to -- shuttles would have to pay the mta a fee every time the shuttle used a stop and muni would still have the right of way and a shuttle cannot load or unload on steep hills. now supporters of this plan include mayor ed lee, the business group bay area council as well as the mta which says using these shuttles means 45 million less vehicle miles driven every year. which of course is good for the environment. michelle? >> well, mark you mentioned a leaked google memo. what does it say? >> reporter: well, michelle, google gave out a list of talking points to its employees. one of those employees leaked those talking points to the media. and here's just a couple of them. one of them said if the shuttle program did not exist, they want google employees to say i would continue to live in san francisco. and drive to work on the peninsula. a second talking point is i'm so proud to live in san francisco and be a part of this community. so that kind of gives you an idea of how important it is for these tech companies to put their best foot forward on this whole shuttle bus controversy. >> all right mark kelly live in san francisco, thank you. oak and police are trying to determine who posted flyers depicting a mayoral candidate with a swastika on her forehead. someone has posted these flyers in the montclair district. that city council member and mayoral candidate libby schaaf. the line stop the dac at the bottom refers to a proposed surveillance facility in oakland. >> someone tooling around plastering this crap and i haven't even read it. just not happy with this. >> schaaf who was jewish says the flyers are painful and shameful. same incident happened last september in a different part of oakland. flyers in the district showed council member knoll guy owe with a swastika on his forehead. it's believed the culprit in that incident was upset with the proposal for a teen curfew. that person still has not been caught. some other headlines around the bare now. plans to limit -- bay area now. plans to limit medical marijuana plants in the city of martinez on the agenda tonight at the meeting. there have been complaints about the plants growing in some of the backyards in town. it's legal to grow marijuana with a medical cannabis card but the city is now looking to limit outdoor plants to only six per property. bicyclists plan to rally at noon today at san francisco's city hall. they'll be promoting vision zero a proposed project that's aimed at reducing the number of traffic accidents involving bicyclists and pedestrians. time now is 6:39. one college graduate is getting a head start as an entrepreneur. how he's making money off his cap and gown. >> and technology is turning fashionable in the new year. the trends to watch for. >> and the market just opened up about ten minutes ago. let's get a quick look at materially numbers. so far -- early number. so far it's looking pretty good. we'll get an update from kcbs' financial reporter, jason brooks. ,, [dad] [laughs] [boy] mom! [mom] yes? [boy] whoa,whoa,whoa... [mom and dad] [laughing] [boy] whoa,whoa,whoa... [mom] you've got two left feet,boo. start as an entrepreneur. 's selling ad space o ap. the this is major alex bendsa is getting a head start at the entrepreneur. he's telling ad space on his graduation cap. how about is that? the university of michigan flint student is charging $300 for a one carriage ad on the tap. if he can sell 1 hunt squares he'll wipe out his $30,000 in student loans. 22-year-old international business major will graduate in a few months, my guess is he's going to get a marketing job somewhere. >> no kidding he's a smart guys the long holiday weekend is over on wall street. >> yeah today traders are watching corporate earnings reports. and let's chat with kcbs' financial reporter jason brooks with more. >> good morning. corporate earnings are the main story today. the stock market has been off to a bit of a struggling start in 2014. the dow overall for the year down 118 points. this, after the blue chips gained 26% in 2013. there are questions of whether or not the stocks are simply overvalued at this point. how corporations did in the fourth quarter will tell a lot about how the economy is doing. how they are doing and where the stock market could go. best buy absolutely slammed off of its report last week. some have done well. such suicide morgannal lee. -- as morgan stanley. verizon turned a property of $5 billion -- profit of $5 billion and added 1.7 new net subscribers. in the quarter. also buying intel's online tv set top business. something intel really tried to get going over the last few years but unable to land some deals for that. due to smirches with content providers and the -- some issues with content providers and the cable networks offering pressure on that. it had been valued around $500 million. and verizon will offer jobs to just about all of the 325 intel employees in that business unit. stock market trying to get going into some positive territory today. the stock market is doing well. right now the dow is up by 18 points. nasdaq is gaining 24. s&p is up by 8 points. despite that deal intel shares are down about 1%. michelle and frank back to you. >> all right jason brooks. thank you. it is 6:45. time to find out what's cooking on the highways. >> you know we've had a steady stream of accidents frank and michelle. the newest one is right in the mcarthur maze on the eastbound 24 connector ramp to 580. a motorcycle is down. apparently in at least one lane of traffic. so there are injuries reported with this accident and very long delays already for eastbound 24. again approaching 580 in the maze. now watch out for long delays still for southbound 880. the accident happened at 238. it's going to be slow approaching highway 92. and traffic backed up 238 this morning is going to be slow on to 580. leaving castro valley. all of this because of that earlier accident in san leandro. the bay bridge commute still backed up on this tuesday. meteringlights are on and traffic is backed up from the overcrossing. that's really the only bridge this w delays this morning. -- with delays this morning. still clocking in with very good speeds and wide open at the toll plaza. the 808 and 237 interchange southbound 880 leaving the fremont area bound for milpitas. expect delays there and you can see the headlights on the transition ramp. slow now on to 237 but the good news is that mass transit had a smooth ride. no delays for b.a.r.t. muni or the a.c.e. trains. lauren? all right. some patchy dense fog moving in this morning along the coastline. probably the major weather concern this morning and then it looks like lots of sunshine into the afternoon. out the door we go though. we've got some patchy fog at the beaches this morning. especially in toward pacifica and half-moon bay. oases lots o sunshine in- between. and the temperatures again staying very mild. now as we get into the latter part of the week we're going to still see sunshine but the breeze will be picking up and with that dry weather and of course the dry mountains, the fire danger likely to be elevated into thursday and friday. high pressure continuing to send any chance of the storms well to the north of the bay area. they keep lining up out here and continue to run right over the top of the ridge into canada and then diving into the eastern half of the yates. today no -- united states. today no delays expected at sfo an arriving flights and departures but around the country. serious wintry weather. in fact very cold temperature and a ton of snow into new york today. could see a foot of snow about 23 degrees. chicago some lake effect snow. 11 degrees there. and some of the windchills below zero. temperature of about 60 degrees and sunny in denver today. 63 and sunny skies into houston. around the bay today we'll finds some hazy sunshine and the numbers as much as 15 degrees above the average. 69 in san jose. 70 morgan hill. about 63 and cooler into pacifica today with some patchy fog. and inside the bay we're looking at the temperatures in the 60s and low 70s. next couple of days, we'll see some similar weather. then the winds kicking up into thursday and friday with a elevated fire danger right now though it looks like we stay dry the next five to seven days guys back to you. as we start the new year there are a couple of new trends in technology might want to watch. >> cnet editor at large brian cooley is here with the technology that we are looking forward to. hey it's great to see you. >> good to be back. i'm just back from among other places the consumer electronics show in las vegas. i want to go over just four of them that i think are very important to. what. first of all you know grass watch. first of all you know google glass is very niched. we expect google glass 2 cotom out this -- to come out this year, which will be the one you can actually buy for a price that needs to be below the $1,500 it currently costs. one of the things they have to solve is what to do for the folks that wear prescription glasses. i heard of one company with a slip on lens that will go over it. it would be ground to your prescription. so -- some of these options are possible. >> when they get more affidavitsable how much? -- affordable how much? >> right now $1,500 is a huge amount of money. i don't know why $800 keeps coming to my mind. i don't have any information on that being the possible price but that could work in the market. that's a little bit above the unsubsidized price of a good smart phone. it's something with some parity right there. that's kind of like guying -- buying the iphone out of contract. worth the same amount of money? yes. do we like $1,800 devices? no. that's a much bigger screen with the tv. >> i like the other stuff. that's google glass. another one is 4k tv. explodes in year. this is the -- this year. this is a tv that has twice the resolution the current hdtv. you need 4 k content to really get something out of that and amazon and netflix announced at the show a couple of weeks ago that they're going to start streaming in 4 k. this will be a streamed revolution. not a disc based revolution. don't look for you know blu-ray or some new version of that to carry the water 678 this will be streamed and that's going to be very interesting. again not a huge difference in the viewing quality. but it's all you're going to be able to buy soon. $400 for -- $1,400 for a 55- inch 4 k. that's getting affordable now. >> the resolution is amazing. >> if you watch great 4 k content on it. if you get one sit closer not farther. the only way you get the value of those tighter pixels is you can move in. be more immersed and still not see the pixels which maintains the illusion of reality. >> parents always used to say don't sit close to the tv. >> going to hurt your eyes. don't read in the bark it's doing -- dark. that's also a myth. smart watches are going to be growing up. looking more like jewelry. frank we talked about this how smart watches look too dorky. the new iphone 6 and the galaxy s. 5 are due early in year. very nebulously. iris scanner is rumored for the galaxy phone and both will be getting i think much longer battery life. and faster charging. similar trend to electric cars. >> never stop. >> they can't stop. >> i guess not. all right. >> we don't want them to stop. >> that's right. okay brian thanks. time now for a look at what's coming up later on "cbs this morning." >> and gayle king joins us live in new york with more in front of the big board. good morning. >> i've got it. hello frank and michelle. ahead a new threat of the olympics. bob orr on the concerns that female terrorists may attack. plus fist on "cbs this morning," bill gates is in studio 57 today and his plan to end poverty in two decades. eradicate polio in four years and help billions live longer. and shape wear is the new corset for many women. dr. phillips is here with the long-term health dangers from the clothing that gives you a slimmer figure. the news is back in the morning. we'll see you at 7:00 and frank, this was the question for you because i know michelle's answer already. >> okay. >> would you rather have a flat tummy or would you want good circulation? >> you know? i'm going to go with good circulation. >> gayle you know my answer. [ laughter ] >> i know it. michelle we can tell him he's wrong. >> you know, i hear that a lot. so that's okay. >> all right. thanks. we'll see you at 7:00. >> as long as you know. see you guys. >> there we go. have a good show. its is 6:52 and a man hunt underway for a terrorist in russia. coming up the woman suspected of plotting an attack on the upcoming winter games. >> and san jose police surround an entire strip mall searching for a burglary suspect. i'm kiet do. we've got a live report coming up. ,,,,,, good. good answer. check it out. learning's fun now. yeah, back in our day, we didn't have u-verse high speed internet to play and learn online. all we had was that franklin fuzzypants. ah, the educational toy bear. remember when the battery went out? [ slow, deep voice ] give me your abc's. all i learned was a new definition of fear. i need some pudding. yeah, there's one left. 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[monotone] she says, "switch to progressive and you could save hundreds." call or click today. for his second term today as five things know at the .55 now. chris christie will be sworn in for a second term today as allegations continue to swirl around his administration and new jersey. hoboken mayor zimmer says christie's lieutenant governor told her she had to approve a real estate development project in her city or lose money for superstorm sandy recovery. yesterday, the lieutenant governor strongly denied that accusation. russian authorities are searching for this woman. who they believe could be a threat to the upcoming olympic games in sochi. she's being called a black widow after vowing revenge for the death of her islamic militant husband who was killed by russian security forces last year. a group that claimed responsibility for last month's bombings in volgograd is also threatening ail tacks at the games. and investigators are trying to figure out what caused a deadly explosion at an animal feed plant in nebraska. the blast killed at least two people and injured at least a dozen more. about 25% of that plant now damaged. snow and frigid temperatures are back. the latest winter storm is traveling from the midwest to the east coast. and could dump up to a foot of snow in some places. it's already creating plenty of travel problems. airlines canceled more than 1,000 flights in anticipation of bad weather. and some developing news in the city of oakland. a high speed chase suspect was shot by a chp officer. the chase started on hyde street near interstate 580 at 3:00 this morning. suspect's car finally came to a stop at a dead end on east 15th and 57th streets. the man was taken to a hospital. no word right now on his condition. i'm kiet do live in west san jose where police have cleared the scene of catching a robbery suspect. we've got some video of the activity earlier today at 2:00 this morning, a lone suspect broke into the hayes dispensary at 1814 hillsdale avenue. here in west san jose. he tripped the aslam so the alarm company called the police department and then they were also able to monitor a live audio feed and provide information to the officers. the officers got here and surrounded the building and the k-9 unit led them to the guy's hiding spot. and here's lieutenant danny accosta to describe what happened next. >> it was apparently a small cramped space. and he was there for quite a while. at least what -- three hours? >> now is this type of pain and medical marijuana can help? [ laughter ] >> good question. he needs the card first. >> yeah, so the guy's heading to the hospital now with some minor injuries after being stuck in the elevator for a time. a couple of years ago the san jose police department warned the cities that these dispensaries would be a huge draw on police resources. it took 35 officers to bring the guy into custody. we're live in san jose, kiet do, kpix 5. and i'm liza batallones with your kcbs traffic expect big delays right in the heart of the mcarthur maze. motorcycle accident westbound 580 on the transition ramp to i- 80. so expect backups getting towards the bay bridge toll plaza. we've had delays already the metering lights are on at the pay gates and traffic is backed up in just a couple of those lanes from about the 880 overcrossings and certainly fast track users are happy this morning. the fast track lanes are just flowing through there. and 880 aids it leaves the area bound for hayward expect backups approaching and passing highway 92. that's traffic. here's lawrence. we've got some patchy dense fog towards the coastline and nice shot from our cam this morning. we've got mostly clear skies over the bay. but it looks like by the afternoon, still a couple of lingering patches of fog near the coastline. temperatures there will be cooler. low to mid-60s and we'll pipe some 60s and a few 70s inside the bay and the valleys. next couple of days similar weather and then the winds kick up on thursday and friday and somedaying dry the next five to -- . in january. 15 degrees above the average. >> that's amazing. >> well thanks for watching kpix 5 this morning. >> it's national hug day. take care. [ captions by: caption colorado, llc 800-775-7838 email: comments@captioncolorado.com ] good morning to our viewers in the west. it is tuesday, january 21st, 2014. welcome to "cbs this morning." a new arctic blast targets millions, affecting travel nationwide. the one-two punch of know and cold is already causing a partial federal government shutdown. the hunt for black widows. bob orr with the new terror threat of the sochi olympics female attackers. plus first on "cbs this morning," bill gates in studio 57 today. his plan to end poverty in two decades. but we begin this morning with a look at today's eye opener, your world in 90 seconds. very slippery. >> as long as you keep moving you stay warm. w
fired the shot, michael mays. both with 30 years experience between them. >> reporter: i poke with retired b.a.r.t. chief here about what he knows. we spoke about 90 minutes ago and he shared with me what he knows about both officers. officer michael hayes seen here in a video about holiday shopping safety. >> specifically look for items left unsecure. >> reporter: mays has been with the transit agency for 14 years, and prior to that, he was an officer with the moraga police department. >> a dedicated, hard working officer. he had a drive working personality. he was approachable. he was just someone you could talk to. >> reporter: a source tells me mays is the father of a teenage daughter. both men were hired before he became police chief and he regarded them highly. detective smith was someone who who started working for b.a.r.t. at an early age in 1990. >> he was a civilian police employee who was used to patrol the parking lot, and serve as eyes and ears for the officers on patrol. >> my name is sergeant smith. >> reporter: the retired chief tells us he appointed smith. declined to say what could have led to the deadly shooting, saying only that his heart is heavy. >> i was completely devastated by it, because we were talking about officers that i worked with very closely when i was at the department. >> reporter: he says, as fares he could tell, the two men worked well together. live in walnut creek, amber lee, ktvu, channel 2 news. now to the case both men were investigating. today we learned smith, mays, and six others were following up on an armed robbery at the fruitvale b.a.r.t. station. we get that part of the coverage from allie rasmus. >> officers worked into b.a.r.t. headquarters with heavy hearts, as the department mourned the loss of tom smith. a 23 year veteran of the first. >> we're shocked. we're grieving and please give us some time. >> reporter: smith was one of seven b.a.r.t. police, five undercover detectives, and two uniformed officers doing a search of an apartment in dublin. while the officers were inside the one bedroom apartment, one of the detective's guns went off, striking and killing smith. a brief glimpse of sergeant smith as he was rushed to t heambulance. >> he is just in the bed, he wasn't moving. i don't think he was conscious at all. >> now we can go forward and try to reconstruct exactly what happened. >> reporter: the apartment b.a.r.t. police were searching was the home of 20-year-old john henry lee. lee was on probation for a previous misdemeanor. last wednesday morning, police say he robbed a man at gunpoint at the fruitvale b.a.r.t. station garage. lee was in a stolen car when he led san leandro police on a chase. it says a pursuit ensued that ended when a honda collided with a tree, and rolled. he was stopped by a police k-9, officers found a loaded handgun inside the honda. lee was arrested, and has been in police custody since thursday. yesterday, b.a.r.t. police went to his apartment to recover some of the items stolen. all of the officers doing that apartment search were wearing bulletproof vests at the time. we don't know where the bullet, or bullets struck sergeant smith, but we expect to get more information when his autopsy results are released. that autopsy was conducted today. stay with ktvu for continuing coverage, as new information emerges from the investigation, we will bring it to you on air, and to your mobile device. tonight at 10:30, the split second decisions law enforcement often face, and the training b.a.r.t. officers received to make those decisions. developing news out of oakley, in contra costa county. that's where an 11-year-old boy died this evening. police say it appears he accidently shot himself in a home on yosemite circle, shortly after 7:00 tonight. the boy died a short time later. we don't know how he got the gun, who's gun it was, or what type of gun it was. at this point, the boy's name is not being released. now to the red flag warning, prompted by wind in the unusually dry conditions this winter. the fire spread quickly this afternoon because of those dry conditions. news chopper 2 captured these images around 3:00 this afternoon. a spokesperson for contra costa fire says they didn't implement an aggressive effort, because no structures were threatened. the warm weather broke a few records around the bay area. >> our chief meteorologist here now with a few numbers, and also another red flag warning in the middle of july. >> reporter: that red flag warning just went into effect for the hills of the north bay. we did have a few records today. the red dots, oakland, that was a record downtown. mountain view was the a record. san jose tied at record at 72. 75 was the warm spot in livermore. the red areas represent the red flag warning. if you look close you'll see the fire weather warning stays in effect until 3:00 tomorrow morning. along the coast, a high surf advisory, that starts tonight, and goes into tomorrow night. so the swells are coming up. we've got fire danger conditions, and more warmth. we could see more records tomorrow. when i come back, we'll get specifics for tomorrow. big waves are hitting hawaii right now, and heading this way. in fact, they're said to be the biggest in a decade. some 50 feet high, and those waves are expected to arrive on the san mateo county coast by friday, just in time for the world famous mavericks competition. for a while it looked like conditions might actually be a little too dangerous for the big wave contest, but then organizers decided it was a go. >> now they have just 34 hours and counting to prepare. at half moon bay, they found they were working against the clock to get ready. >> reporter: word went out today that the big wave surfing competition is on. everyone is keeping an eye on the waves. surfers tonight caught a few waves close to where the mavericks big wave surfers will be catching rides on epic waves come friday. >> pretty exciting. these big wave guys charging super hard. >> reporter: despite early concerns about wind, contest organizer jeff clark is now forecasting excellent conditions for friday's competition. strong south winds could have created conditions similar to 2010, when a rogue wave washed ashore, and knocked spectators to the ground. the latest forecast now has that wind staying offshore. >> i think we're going to see waves upwards of 40 feet. upwards of 40 feet. it's pretty exciting. all the guys are tuned up, and ready to go. >> reporter: they'll be patrolling the beach, and bluffs. >> the best imagery you're going to get is on your television, that's opposed to putting yourself in a precarious position where you're going to get hurt. >> reporter: competitors arrive from all over the world. they'll be staying here in rooms overlooking the water and the parking lot is in for a major transformation into a venue ready for thousands to watch all the action on giant monitors. >> it's a great team effort, to put this up in 48 hours and have 30,000 people come into this area in 48 hours, it's unbelievable. >> reporter: 24 of the world's best surfers are starting to arrive for the competition. we spoke with one surfer, who says he has a feeling of relief knowing that the competition is on, and the conditions are coming together for big waves here. ktvu, channel 2 news. the number of flu related deaths here in the bay area jumped again today to 28 confirmed cases in all. 6 new deaths are being reported. 3 in contra costa county. two men and one woman. san francisco reported one, marking its second this season, and sonoma added one more, in addition to three previous deaths. officials in san mateo confirmed one more, bringing the total there to four. in contra costa county, officials tell us, people seem to be taking their advice to get the flu shot. >> we're urging, especially young, healthy people to get vaccinated to protect themselves, but also so that they can protect those around them. >> by getting the advantage seep, you are less likely to spread the flu to your family, friends, and coworkers. uc berkely is trying to keep its students free of the flu now that classes have resumed after the holidays. tomorrow, it is hosting a new drop in flu clinic. scheduled to be open between noon and 2:00 p.m. members of the community can also stop by and get a vaccination. it is not just for students. some students can get the shots for free. chanting no guns, no hate, no mistakes. marching with a woman who's two sons were shot within 19 days. the group walked from the exact spot where 13-year-old lee weathersby was gunned down. the uncle of oscar grant, the 22-year-old shot and killed by a b.a.r.t. officer in 2009 was also there and called for community action. >> it's going to take us to stop this. we've got to love our babies. we've got to let them know that we love them. >> lamar broussard was killed along with his best friend, derrick harris. at this point, no arrests have been made. short shorts, pompoms, and a lawsuit. >> my goal is to change the way nfl cheerleaders are treated. apparently that's the way it's been done for 50 years. >> i'm pinpoint where more historical highs could hit tomorrow. >> and next, toxins found at a bay area school campus. we're asking about the health of the thousands exposed. i'm detecting increasing levels of happiness. ...and the speed readings are off the chart! paradise found! luscious locks. great glittering galaxies. the happiest place on earth keeps getting happier! explore more, and save up to 25% on select nights at a disneyland resort hotel. there's no end in sight. i'm going to need more time. new developments tonight in a toxic discovery at san francisco state university. officials there are scrambling to find alternative locations to hold classes following that discovery. ktvu's heather holmes is live at sf state after looking over the results of a recent infection that led to the closure of a university building. >> reporter: julie, this 82 page report right here details not only levels of asbestos, but also lead paint and mercury. this is the science building and all the contaminants are above recommended levels. so tonight, this building is off limits. the sprawling science building, where 250 faculty and staff work and 10,000 students per semester study, suddenly shuttered. >> we're closing the entire building for the full spring semester at sf state. >> reporter: the university spokesperson says a routine inspection earlier this month turned up potentially hazardous materials. prompting what officials thought would be a temporary closure at the building. but this revealed a problem greater than first thought. asbestos was discovered in the basement. numberers also found -- inspectors also found peeling red tape. >> there's a lot of work to be done. >> reporter: the university is working on where to put students before the spring semester begins on monday. >> we are repurposing some areas. >> we have no idea what's going to happen. >> reporter: the freshman isn't sure where her business calculus class is going to be held, and if it will door coordinate with her work schedule. >> i had my schedule planned out, and i'm supposed to be going back and forth. knowing i need to go downtown could mean more money and more stress. >> reporter: this letter told students about the building close oar, and the relocation of classes. we asked what the findings mean to any of those who spend anytime in this building. they are working with experts to identify any potential health effects. heather holmes, ktvu, channel 2 news. oakland police are looking for an suv, and its driver linked to a deadly police shooting. the driver took off in the suv, but a passenger got out and ran, a chp officer with his dog chased the man, investigators say the suspect had a gun, and that the officer fired, killing the man. the chp dog was wounded, and is expected to recover. police are still trying to find the driver. new information now on monday night's deadly caltrain accident in the south bay. today, the santa clara county coroner's office says it's unclear whether the incident was a suicide or accidental. a second person was seriously hurt, and had to undergo surgery. investigators hope he'll be able to provide information once he recovers. new details involving the construction of the eastern span of the bay bridge. there are concerns about the long term reliability of the span. new supervisors were moved after questioning materials used on the bridge. an engineering firm suggested rejecting some of the rods used for the beam. governor jerry brown offered his state of the state address today. he spoke for 17 minutes, and urged lawmakers not to spend the state's new multibillion dollar surface. the governor even used his dog to help make his point. >> reporter: the governor handed out this, a mock playing card with the picture of his pooch. it says a prudent corgy knows to nibble at his kibbl were. -- kibble. a $10 minimum wage, and healthier books. >> a budgetary surplus in the billions. in the billions. but don't spend it. that's the point. >> reporter: that was the message on the flip side of the card. how good budget years are followed by bad. >> we should make sure we protect the rainy day fund, so we don't have these up and downs in the budget. >> reporter: no sweeping projects, or proposals, only a one liner on high speed rail. some favor a more balanced approach. >> not every dollar needs to be put away in a reserve, or for a repayment to debt. >> reporter: california's lingering drought also played center stage. >> we need everyone in the state to save water. >> reporter: republicans say they've been thwarted for years trying to build more reservoirs and water storage. >> literally, i guess this is very trite, but up a creek without a paddle. >> reporter: one republican said governor brown is sounding more republican every day, but brown's tight approach on money and the surpluses to show for it could help him in this election year should he decide as expected to run again. at ktvu.com, we've posted more video of the governor's speech today. bay area classic car owners left high and dry by a man they trusted. >> the bank called me, and said the check was no good. >> $33,000, no good. >> no good. 33,000. >> tomorrow at 5:00, 2 investigates a high profile car dealer who promised fast money and never delivered a cent. how justice is finally being served. that's tomorrow at 5:00 on ktvu. . overnight lows, are not as cool as last night. a little bit of wind to the north will keep temperatures off the bottom. you think we'll see numbers in the mid-30s, the low 30s. i don't think we'll see new 20s. you'll see frost in some of the inland bay valleys. tomorrow, temperatures slightly cooler than today. today we had lots of 70s, tomorrow, we're going to have lots of upper 60s, with a few low 70s showing up. a possible record. the red flag warning in the north bay hills, we'll talk about that when we come back, into the five-day forecast, there's a little bit of change coming towards the weekend. i'll day that in for you at 10:45. just know, slightly cooler tomorrow. a 10-year-old boy honored as a hero. how he spotted a missing man, and what he did next. then at 10:30, the raiderettes cheer for the team from the sideline. but one says the work conditions are nothing to cheer about. >> first, mandatory water conservation in a sonoma county town. the new restrictions now in place. a small town in sonoma county is ordering mandatory water restrictions. they are doing that even though their water supplies are normal. >> reporter: heelsberg, the grape growing town of 11,000 has more than normal water supplies. >> right now, we have water, but we are experiencing a 15% increase in water usage. >> reporter: the city has had voluntary measures for 7 months, but the city council imposed restrictions immediately. >> we're homing we can educate the rest of the community, and they see how easy it is to conserve, and it becomes second nature. >> right now, outdoor watering every other day. no filling of pools, and no car washing. the goal is to use 20% less water. >> we are way over-spoiled with all the little things we do every day. it's not going to be that hard. >> reporter: tougher restrictions may be ahead. the city says it will stop washing sidewalks and cut landscaping watering. >> if we all do our part, maybe it won't be quite as difficult if it comes down the line we have to do even more. >> reporter: the city says it's trying to send a message. >> what we're trying to do is alert everyone that it's time to conserve. conserve now. >> reporter: for now, the city says it will keep it's plaza fountain going. the conservation message may really hit home when the plaza grass turns brown. ktvu, channel 2 news. house speaker john boehner joined his republican colleagues it to support legislation aimed at drought relief. it would also temporarily halt restoration of the san joaquin river and mean less water to repopulate salmon. >> when you look at what's been going on here in california, and you come from my part of the world, you just shake your head, and wonder what kind of nonsense does the bureaucracy do out here. how you can favor fish over people is something people in my part of the world would never understand. >> senator dianne feinstein issued a statement. she's worried the proposal could affect existing water protection. a 10-year-old boy from berkely is crediting his eagle eyes for spotting a missing alzheimer's patient. he also received a certificate of appreciation for doing the right thing. he had just seen a picture on his grandmother's phone, and she insisted he call police. >> i'm going, that's him. >> he was ecstatic to be recognized, and his classmates really supported him. he said it was pretty cool to help get the man reunited with his family and his mother says she's very proud of her son. our coverage of the b.a.r.t. shooting death continues. the training officers go through, and how it compares to other departments. >> tonight, i sat down with the cheerleader for the oakland raiders. why she says the team is violating state law, and is filing a lawsuit. >> a reminder that you can get ktvu news to go. download the app and watch all of our newscasts live on your mobile device. a member of the oakland raiders cheerleading squad is accusing the team of foul play. she says the team is breaking the law. the ravenette accused the team of violating labor laws. jana katsuyama spoke with that cheerleader today and is live with the woman's accusations. >> reporter: in public, the cheerleaders are only known by their public names. i did reach out to the raiders today, but they had no comment. on every game, they're on the field, cheering on the team. she was living her dream. >> raider nation, i'm raiderette lacey, and i look forward to seeing you in the stands. >> reporter: she felt becoming because one of the football fabulous females wasn't so fabulous when it came to the pay. >> i really wanted to see how the season played out. >> reporter: today, lacey filed a lawsuit against the team on behalf of herself and fellow raiderettes. it speaks that the contract promises $125 for each of the home games, but violates laws by requiring them to attend additional charity events, and other events with no compensation, and no meal breaks. they get no payment until the end of the season. lacey's attorney says the cheerleader's pay can be docked for minor rule violations. such as wearing the wrong clothing, or bringing the wrong pompoms to practice. >> i was be shocked at the kind of provisions in the contract, and the sophistication of the raiders could give this kind of contract to their employees. >> reporter: lacey said it was a shocking difference from her last job with the golden state warriors. >> the number one goal, i hope to come out of this lawsuit is to have the raiders change their policy and procedures. >> there is a separate nationwide effort that was launched on the website change.org, so far that has 27,000 supporters so far, that effort to ask nfl teams to pay cheerleaders a living wage. her attorneys say they want back pay and a change of policy. the raiders have 30 days to respond. reporting live in alameda, ktvu, channel 2 news. a 27-year-old man is recovering tonight from knife wounds he received after he was jumped by a would be robber in berkely. it happened at 6:00 monday morning on bancroft, and dana street. investigators say the suspect pulled out a knife, and demanded the victim's car keys. a struggle ensued, and the victim broke free. the suspect was caught a short time later, and taken into custody. he's been identified as 27-year- old damian alexander patterson. president obama today took a firm stand against sexual assault on college students. >> three years ago, we sent every school district, college, and university that receives federal funding new instructions clarifying their legal obligations to prevent, and respond to sexual assault. we have seen progress. >> the president signed a memorandum establishing a white house task force that works with colleges, and universities to prevent, and respond to students sexual assault reports. a white house report found that 1 in 5 female college students are assaulted, and only 1 in 8 student victims report it. a new plea from san francisco police to help solve the beating death of a man in his 80s. this friday marks four years since the attack that killed juan chen. police say he was attacked by a group of teenagers. it happened at oakdale, and third, as chen was walking home from a nearby muni stop. he died two months after the attack from injuries related to the beating. a $100,000 reward is now being offered for information leading to arrests. back now to our continualing coverage of the shooting of a b.a.r.t. police officer. some people were surprised that b.a.r.t. officers were searching an apartment. today b.a.r.t. says that's actually not uncommon. details now on the officers training and a key reason why a gun may have been drawn. >> reporter: we're used to seeing b.a.r.t. police patrol stations and trains. but yesterday's shooting was many people's first awareness that b.a.r.t.'s long arm of the arm extends well beyond the platform. >> just like any law enforcement officers in the state. >> reporter: they follow their investigations wherever that takes them. we wanted to know just how much training b.a.r.t. officers do get. entry level steers go through 6 months a the academy, a year of probation. lateral officers who are coming in through other departments go through 12 to 16 weeks of training. they exceed the state required 24 hours every two years. so with all of that training, how did one b.a.r.t. officer kill another in an apparent accidental shooting. >> i think this is one of the things that all officers fear the most. >> reporter: daniel lawson is a former sfpd captain. he says when officers encounter an unlocked door, that's a red flag someone might be inside. >> that could be trigger the officer to pull their firearm. but then proceed with caution. >> reporter: whether the officer's gun misfired, or he fired on accident is unclear. >> you need a second guess. but these decisions are made in split seconds. i snap my fingerer and that decision has to be made. >> a split second decision that changes lives forever. it was another mixed day on wall street. the dow lost 41 points due in part to a disappointing earnings report from ibm. the nasdaq added 17. added a half billion dollars in apple in the past two weeks for a total of $3 billion. icon is renewing his push for apple to buy back $150 billion worth of stock. that would double the value of his stock, but some analysts say it would ruin apple. so far, no comment from apple. netflix keeps growing, and expects to be even larger by spring. the company said it's added 4 million subscribers around the world, and now has a total of 44 million. profits soared by 45%. compared to a year ago. the news sent shares up 17% in after hours trading. coming to the rescue for a second time. >> i'm like oh, my god. here we go again. >> how this two time hearo found herself jumping back into action. >> a slight change is coming. i'll pinpoint where winds are picking up. good. good answer. check it out. learning's fun now. yeah, back in our day, we didn't have u-verse high speed internet to play and learn online. all we had was that franklin fuzzypants. ah, the educational toy bear. remember when the battery went out? [ slow, deep voice ] give me your abc's. all i learned was a new definition of fear. i need some pudding. yeah, there's one left. [ male announcer ] connect all your wi-fi-enabled devices with u-verse high speed internet. rethink possible. with u-verse high speed internet. hi, i'm ben affleck, and many actors have played the part of u.s. servicemen in the movies, but for veterans like james crosby their service and their sacrifice are real. and too often when they come home, their struggle continues. for over sixty years, paralyzed veterans of america has been fighting to help our injured veterans get the benefits they need, and have earned. paralyzed veterans of america was there for me when i came home. join me in supporting our paralyzed veterans. visit p-v-a dot org. fires broke out today in the midst of protests in ukraine. at least two protesters were killed by police. demonstrator are angry that the ukrainian government decided to forge ties with moscow rather than a european union. the obama administration is calling for calm. israel announced today that it has foiled an al-qaeda plan to attack the u.s. embassy in tel aviv, and hit other targets inside israel. israeli intelligence officials say three palestinians plan to provide suicide bomb vests to four militants posing as russian tourists. the arrests were carried out in december, but just made public today. several unnamed state department officials say the u.s. has not been able to verify the israeli allegations, in particular, the alleged links to al-qaeda. the defense department said today a soldier from monterey has been killed in afghanistan. edward bali was shot by insurgents who were attacking his base in kandahar province. his family said he was on his third tour of duty in afghanistan, and had done two in iraq. he grew up in salinas, and is survived by his wife, christy. former secretary of state, hillary clinton is scheduled to visit california this spring. in san francisco, she's scheduled to appear as a keynote speaker at a three day marketing summit. in san jose, she's scheduled to take part in the speakers series and in san diego, clinton will address medical professionals, where she will address the implementation of the affordable care act. a blow for honda today as "consumer reports" says it can no longer recommend the honda fit after it placed last on a crash test. the test looks at how cars hold up when they hit a wall on the driver's side at 40 miles per hour. the insurance institute for highway safety says the structure of the fit car collapsed around the driver. the steering wheel moved, and the driver's head hit the instrument panel. in addition to the honda fit, five other so-called mini cars rated poor on the crash tests. the fiat500, the hyundai accent and the mitsubishi mirage. the chevrolet spark was the only small car to receive an acceptable rating. a state of the art medical center. and layoffs at target, as the retailer continues to take hits. >> up first, we introduce you to a woman who saved the lives of two people in two remarkably similar circumstances. this the bacon and cheese diet? this is the creamy chicken corn chowder. i mean, look at it. so indulgent. did i tell you i am on the... [ both ] chicken pot pie diet! me too! [ male announcer ] so indulgent, you'll never believe they're light. 100-calorie progresslight soups. [ female announcer ] at 100 calories, not all food choices add up. some are giant. some not so giant. when managing your weight, bigger is always better. ♪ ho ho ho ♪ green giant [ man ] it's big. quickly reconnects families. same with aladdin. the biggest in bail. no one has lower prices, is faster or more professional. aladdin bail bonds. bigger because we're better. a vallejo woman is being credited with saving not just one life, but two. >> two different times she witnessed crashes on the freeway. the latest today. she had the presence of mind both times to do the right thing. >> i'm just like, oh, my god. >> reporter: keenia williams slammed her brakes. staring her down was a multivehicle wreck on interstate 80. >> they tried to put her brakes on. it hit the wall, which made her flip to her roof. >> reporter: she says there was a woman trapped in a smoking vehicle. screeching right into her mind was a memory. >> i'm like oh, my god, here we go again. >> reporter: she jumped out of her explorer and into action. >> jammed the door wide open, and she was upside down. i'm reaching for the seat belt. she fell down a little bit, but i was able to get her out. >> reporter: moments later, a chp officer arrived on scene. >> he's like, what made you do that? well, it's not my first time that i've saved somebody. >> reporter: a big rig crash was bursting into flames. williams stops her car, jumps over a stream of leaking fuel, and pulls the unconscious driver to safety. the two were reunited a week later when her bravery was recognized by the city of san francisco. >> i must be a real angel. >> reporter: she's a single mom, a christian, and faith she says played a role. >> that's my god. my father upstairs. he's telling me, this must be my calling. >> reporter: that woman whispered two words. williams says that she will never forget. >> the highway patrol officer was in the ambulance with her. she was like, thank you. i was like, you're welcome. >> reporter: one young woman saving not once, but twice. a generous donation from facebook ceo mark zuckerberg and his wife, dr. priscilla chan. the money will help pay for a new state of the art building. a spokeswoman says she was very impressed by the work they're doing there. construction is expected to be completed next year. at least one person is dead after a huge storm dumped snow on much of the northeast. the weather system from kentucky all the way up to new england. in washington, d.c., snow covered roads made for treacherous driving conditions. many federal government offices opened two hours late. city offices and courts were also closed in philadelphia, where people are dealing with 14 inches of snow. in minneapolis, extremely high winds created a ground blizzard. advisories warned of temperatures from 25, to 35 degrees below zero. many schools across the state canceled classes today. black ice, and snow made driving very dangerous. temperatures today were up there. here are some of the records again, 75 in oakland. it was 74 in mountain view. in a tied record, 72 at san jose. the warm spot was livermore at 75. temperatures tomorrow are going to be slightly cooler than these numbers. one of the reasons we're going to see cooling is we've got a little bit of fog right along the coast. take a look here, and you'll see it. we haven't seen that in a while. little patches of it. but it's out that pretty much now in a larger form. showing up at half moon bay in pacifica. by tomorrow, it is should move that fog away. fire weather warning goes into effect tonight at 10:00 it went into effect. it stays into effect until tomorrow at 3:00 p.m.ment the store there is where is the winds? those should pick up overnight, and into the north bay. there's the high surf advisory. that is also starting to verify. you take a look at the current buoys offshore, and what you're going to see. they go up 8 to 12 feet. swells are on the increase. tomorrow's weather forecast, there's no big change. the extended forecast, we're going to continue with that increased fire in the north bay. that's because of this offshore flow. here's the high pressure center. it's pushing the winds offshore. it's going to make for a great mavericks contest on friday. this offshore wind really cleans up. a nice offshore flow. a dry pattern holds us really into the weekend. but the next day or so, we're going to see temperatures, just a little bit warmer. lots of 60s, even low 70s, as you go into the weekend, temperatures are going to pump up a little beyond that. we've just got this pattern where it's staying warm. 67 in napa. 69 in pittsburgh. 68 in livermore. these forecast highs are right above the average and slightly cooler than what we had today. still repetitive, this weather we've been experiencing is just non-stop, day after day. a few records here. a few records there. cool overnight lows. then the five-day forecast that looks like this. you've just got sunshine shooting across the top there. weekend warms up a little bit. as we head into next week, dry, dry, dry. the next shot for rain. somewhere around february 2nd, 3rd. >> somewhere way down the line. >> right now, we are dry for this five day, and the next one. >> 25 below in minneapolis right now. >> oh, my gosh, it's wrong. >> doesn't feel like january. more trouble for target tonight. the minneapolis based retail chain announced it is laying off 475 workers, and will eliminate another 700 vacant positions. it also announced it will stop offering health insurance to part time employees this spring. the income dropped last year, due in part to expansion in canada, and sales slumped after hackers stole information from 110 million target customers. what happened to the cal bears? >> it's exactly what julie always tells us, you've got to watch the game. that's why they play them. you get a little overconfident there. undefeated in the pac-12, facing usc who hadn't won a single game in conference. it looked logical on the court, but not to that man. early, 11-3 usc run. the bears would stay tight, but they just couldn't get over the hump. justin cobs led them with 22 points. fade on the baseline, coming up. got it to drop, and one. but cal was still down 9 at half. trojans just able to maintain the margin throughout. 23 off the bench. the freshman from serbia. that made sense in any language. 77-69, first conference loss for the cal bears. the schedule said san jose state was playing number 7 san diego state tonight, and that is when the bad news started for the spartans. aztecs hot. make it 16 straight wins. tenacious defense does it for them. winston shepherd on the dunk right there. high percentage shot. aztecs 17-1 on the year. the spartans looking for their first conference win, it didn't add up. 75-50, pretty much says it all. we'll let you know who the yankees shelled out another of those megacontracts for. and help on the way to solve an injury problem or two. stay put. sports part 2 is next. long time warrior fans know about this. keeping this team healthy is something this team seemingly has always had issues with. can't help thinking, here we go again. andrew bogut missed practice, described as day-to-day. but in this instance, help could be on the way. jermaine o'neal's return could be within a week. you bet, anxious to return. >> schedule gets shorter and shorter. you see your team needs you, against indiana, would have had a couple of big guys. it gets tough to watch. i don't necessarily like as much watching games. all in all, we are trying to do something special. going for a serious run now. all of that money, the yankees don't have to pay a-rod certainly burned a hole in their pockets. they spend it in a big way. luring japan's top pitcher. $155million. $20million they had to pay to his team for taking him away. masahiro tanaka, it will be a bargain if he pitches anything like he did over there. >> thank you for choosing ktvu, channel 2 news. >> the morning news starts at 4:30. you can catch the rebroadcast right now on tv36. fifteen minutes could save you fifteen percent or more on car insurance. yeah. everybody knows that. did you know there is an oldest trick in the book? 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ktvu fox 2 news mornings starts now. taking you live to hayward, where a car crashes into a power pole, causing major problems. we will have more on an update on when things may get back to normal there. i am pam cook today. >> and i am dave clark. we are also following a fire in san francisco. let's check weather and traffic with steve over there. >> i am. the wind is picking up. it is howling in some of the higher elevations. the winds are east, northeast at the surface, showing signs of being more south, southwest, with a low forming to the north. more shower sensitivity the sierra nevada with gusts of 57 at the caldy cat, at 1,400 feet. 57 the last check i saw. things are howling, temperatures today will be different. high surf advisory, red flag warnings. because the low is sneaking back in it will give out little change in the pattern. fog near the cost. breezy and windy part os of the bay. highs today are tough. all wind driven. 60s for some, near 70s for others. here is sal. steve, good morning. we have a tough morning as we look at the commutes. the bay bridge is back up after delays. you are looking at the better part of 40 minutes to get across. also the morning commute looks okay but it is a little windy out there. clear visibility but windy. our cameras shaking on 8080. slow traffic on 580 from the valley from livermore to dublin and a fire at an apartment building on stevenson. it is a good thing to avoid the area. you will be caught in a traffic jam so use other side street there is. 7:02. back to the desk. we are getting more information about the bart police officer who accidentally shot and killed a fellow police officer in tuesday's tragic accident. officer michael maze, seen here in a bart promotion video about holiday shopping safety. maze has been with bart for 15 years. he is the father of a teenaged girl. the former police chief says maze is an excellent police officer. >> very conscientious, dedicated and a hard working officer. >> he had kind after a dry personality, but he was approachable. he was just someone you could talk to. >> investigators say maze accidentally shot and killed sergeant tom smith while the officers were searching the dublin apartment of a robbery suspect. maze fellow officer, family members and friends say he is devastated by what happens an overcome with grief. in the meantime questions remain about the tragic accident. investigators have not revealed exactly how or why the officer's gun went off during the search of the one bedroom apartment. >> everybody has been interviewed, so now we can go forward and try to reconstruct exactly what happened. >> we are in shock and disbelief. we are grieving. please give us some time. >> yesterday the alameda's coroner's office conducted an autopsy on sergeant smith. we may get the results of it will autopsy very soon. a car crash knocked out a power pole. more from brian and what you see. >> reporter: let's talk about the traffic. this is hayward at mission and ward. behind me pg&e crews and the chp have blocked off the southbound direction. in fact, both directions are closed this morning because of the downed power pole which you see right there behind me. it came down roughly 3:00 this morning. in terms of traffic, if your commute takes you this way, you may want to find another way to get to where you are going. a driver in his 30s was leaving the store to get something to eat. sometime before the intersection of mission and rose, before 3:00 in the morning as he was driving down, he had a diabetic seizure, hit a tree and then slammed into the power pole. >> he blacked out driving down the roadway, ran accidentally into a pole here and hit a tree prior to that. the pole came off the sidewalk there. he is okay. he is not hurt. thank you he got taken home by his parents. >> reporter: the driver was not injured. he was the only one at the car at the time. chp says luckily only property damage was the result here and not a loss of life with regard to the tree hit. we understand the damage didn't cause any power outages. pg&e killed the line and rerouted power. the real impact will be the traffic. we have seen traffic up here on mission and rose. the chp turning drivers around at this point because both directions are closed here again. will it be that way for quite some time. in terms of when it will be clear, we understand it could take another two to three hours before the power pole is fully removed. chp is working on alleviating some of the traffic, opening one lane in the southbound direction and possibly opening up both lanes in the northbound direction within the hour, but right now both directions are closed this morning in hayward. live in hayward, brian flores, ktvu fox 2 news. also happening, a crash continued to shut down a major thoroughfare in brentwood because of a power pole. brentwood to ball four road to sellers avenue, a driver hit a power pole there before 8:30 last night causing the pole to fall into the roadway. the street not expected to reopen until this afternoon but power has been restored to most of the customers in a that area. chp investigating a deadly cash and car friar at the intersection of highway 1 and bo day ga highway last night. the driver was killed after the car rolled and burst into flames. the cause of the crash under investigation. deputies said they found a lab making hash oil where a big explosion occurred, damaging the building and four apartments. the red cross is helping 146 people who lived in the building find someplace to live. new information about a story from vallejo we first brought you yesterday as breaking news on mornings at2. a woman was arrested on suspicions of killing a man at this mobile home park. we showed you the scene yesterday morning on san miguel road. police found a 47-year-old man shot and killed. police say 30-year-old angela black had also tried to kill another person at the same mobile home. a neighbor says miss black and the victim lived together and were often heard arguing. today in sacramento a state senate hear willing investigate allegation that is caltrans tried to cover up problems during construction of the eastern aspect of the bay bridge. a report released ahead of this morning's hearings said when quality control workers found problems during the span's construction, instead of fixing the problem, caltrans replaced the worker who is discovered the problem. the report says bridge officials were warned in 2008 that some of the spans anchor rods were not properly tested. some of the rods snap last year. time interview now 7:09. this afternoon you will have another -- time now 7:09. this afternoon you will have a chance to say how you feel about the toll hikes on the bay bridge, raising the toll of $8 by 2018. the district says they need to raise the tolls to fill a budget gap. a proposal to build a new jail is the top of the agenda. the city hopes to build a $290 million jail to replace a facility housing 600 inmates on bryant street. the new jail would be built at a site where a mcdonalds now stands near the hall of justice. the san francisco sheriff says the old jail is unsafe and in an earthquake particularly. it is not allowed for many rehabilitation program, as well and the city should focus on reducing the number of inmates or moving the inmates to a jail? san better know. people in vallejo are being called -- are calling a woman a true hero. >> she burst the door wide open. i was looking for the seatbelt. she fell down a little bit and i was able to get her out. >> this is the reason she looks familiar. this is second time tina williams has helped someone involved in a very serious accident. back in 2011 -- we were on the air with this -- she pulled an unconscious big rig driver away from a fiery crash on highway 101 in san francisco. she has been prayed ever since. >> when -- praised ever since. >> when there is an emergency you want her around. >> yes. an 11-year-old boy killed. terrible accident inside a home that has a local neighborhood in morning. >> also -- in mourning. >> also, a report on tobacco use. >> and serious trouble for justin bieber. details surrounding his early morning arrest in florida. >> good morning, now. traffic is getting busier in key outlying areas. also, closer to the bay. we will tell you more about that. >> the wind is picking up for some. concord went from 37 to 5 # degrees in one hour because the winds cranked up in the hills and the wind is howling. how will this play into our forecast today? we will have that, coming up. i'm detecting increasing levels of happiness. ...and the speed readings are off the chart! paradise found! luscious locks. great glittering galaxies. the happiest place on earth keeps getting happier! explore more, and save up to 25% on select nights at a disneyland resort hotel. there's no end in sight. i'm going to need more time. . it is 7:15. a prosed settlement calls for undocumented immigrants to not have to wear shackles at most hearings unless there is a safety threat. it would only apply to san francisco. a new survey says the rate of americans who don't have health insurance dropped slightly this morning as president obama's new health care law begins to take affect. the wellbeing index found the percentage of uninsured this month, translate from 2 million to 3 million people gaining coverage. american lung association is giving good grades to several bay area cities on its annual stop smoking report. that report grades cities and counties across the country for their anti-smoking efforts. berkeley is only city to earn an a. san francisco and oakland each received a b. san jose is given a c, but santa clara and antioch received failing marks. now it is 7:16. toronto mayor rob ford talking about the controversial new video raise questionings about whether he really stopped drinking. mayor ford says he had a minor lapse on monday, and that his drinking is a private matter. he say that is after this video of him ranting in a fast food restaurant in a jamaican accent and this has gone viral. >> monday was unfortunate. i had a minor setback. we all experience difficult bumps in life. >> he has been called to resign since admitting to having a drinking problem and using crack-cocaine. he plans to run for re-election in october. 7:17 is the time. let's check in with sal covering traffic. quite a few power poles down. it is kind after a weird coincidence. >> it is a weird coincidence. we have the area on mission street and rose street in hayward to be avoided. we will have another report from brian later in the show. but the bay bridge toll plaza has a 30 minute delay. then we have another 10 on the bridge into san francisco. we are not looking that great when it comes to the commute at the toll plaza. if you are driving on interstate 880, this traffic here is a little slow as you drive northbound past high street, but southbound traffic does look good. 580 has also been a mess in the livermore valley, starting in the altamonte pass and continuing into livermore. if there is your commute, the drive times are up. let's go to steve. >> thank you, sal. crazy. san francisco went from 48 to 58 in less than two hours. gusts of 57 miles per hour in higher elevations, oakland and berkeley hills. yesterday we had records. oakland downtown ten consecutive days of record highs. yes, it is 58 right now officially at the station. this is a brutally tough forecast. i will not lie to you. i do my own high temperatures and today i have seen spreads as much as 10 degrees. it is because of the breeze. if you don't get had breeze it will be close. if you do, it can jump from 10 to 15 degrees in one hour as we have seen. for us a little fog moving up the coast. the red flag warning is up until 1:00 tomorrow. 4 # to 57 above the caldecott, so that wind is a wind tunnel for some. some at the oakland airport are seeing winds southwest at 5. a stranger pattern here. some of these wind gusts -- maybe is wind sensor says it is giving up! 27 above the oakland zoo. 20 to 35 inary areas. 49 in oakland. 54 in concord and an hour ago they were 37. fairfield 35. 50 at half-moon bay. 58 in san francisco. 30 in santa rosa. high surf and red flag. two advisories and amazingly cold throughout much of the country, steps great lakes. these are not the windchills, but the current temperatures. 1 in chicago. dave, as you know, that is the loneliest number that you can ever -- all right! we have a little activity in oklahoma and texas, but will it be more snow and maybe even freezing rain, the worst kind of weather, i think, is freezing rain. for us 30s to 50s on the low. we may end up with some 60 and 70s. the hills and bay get the breeze. it could be south, north, east -- it is all over the place. the temperatures are above average but it is all wind driven so it is a little dicey and iffy. could be warmer for some and a little cooler for others depending on the direction. sunday back to mostly sunny and dry. all right the surf contest near half-moon bay is on tomorrow. how big the surf is expected to be. >> plus, can you believe it? the super bowl may not be played on the first sunday in february because of the weather. the contingency plan now in place. . welcome back. mayor bill de blasio saying there is more they can do to remove snow, after complaints the streets were still amez 24 hours after tuesday's storms. mayor de blasio said the plows were inadequate and demanded the city double down on snow removal in areas and faulty gps systems on salt spreaders were being blamed for the bad job. shoddy plow jobs won't disrupt the super bowl no matter what it takes in new jersey. it could be moved to a friday or saturday, even the monday after. the reason an expected storm, but officials say it would have to be worse than the one that hit tuesday. the nfl officials say the decision to move the super bowl date won't be an easy one. >> quite frankly, if it became a serious possibility we had to move the game, we would be putting out a lot of information to the public. >> this week's storm served as a dry run for crews at metlife stadium in new jersey. a crew of 1,600 is on standby to clear the field and stands. city officials will take care of surrounding roads for the expected 80,000 spectators at the stadium. a reminder -- you don't have to get out in all that. you can stay with us. ktvu fox 2 news will air the super bowl when it happens. the game is still scheduled for sunday, february 22. kick-off is 3:25. we will let you know if that changes. the giants fan, stowe, was beaten outside the stadium in march of1. now a benefit concert will be performed at the fox theater in brentwood city. he will also be performing on friday, saturday and sunday. a 10-year-old girl from berkeley credits his eagles eyes. he spotted a missing alzheimer's patient after police and police dogs could not find him. brandon coleman was honored by berkeley police at his elementary school yesterday. he received a certificate of appreciation for what he did. he had just seen a photo of a man on an alert that had come across his mom's phone. he insisted she call the police. >> right when i looked at it the guy passed by me. i said that is i am. >> >> he was a force to be recognized. >> brandon said it was cool to get the man reunited with his family. his mom said she is very proud of her son. eight bay area student in the running for awards nicknamed the junior know bell prizes. 40 students -- no bell prizes. nobel prizes. 1800 students entered the composition. the organizers are looking for the most promising young scientists. the students will meet in washington, d.c. in march and $600,000 in prizes will be awarded. time now 7:27. contamination on a campus with measures one san francisco university is taking after finding dangerous toxins in one of its buildings. >> also, a tragic shooting in the east bay. what the neighbors are saying about the accidental shooting of an 11-year-old boy. >> good morning. right now on the drive time, we are getting slower unfortunately. as you look at highway 24, i will executive you the drive time here and also look at -- i will give you the drive time here and also look at the bay bridge. >> and it has gone from 32 to 42 here in san francisco and other areas are up to 58 degrees. what is going on? details in a minute. [uncle]this is hopscotch,okay? uncle go one,two,one,two,one two,one. [niece]okay! [uncle]okay? [niece]one,two three,four,five,six,seven,eight! [uncle laughing] okay,we go the other way,okay? [niece]one,two,three,four,five, six,seven! [uncle laughs]there's ten spaces,you want to try again? [uncle]yeah? . good morning. welcome back to mornings on 2. we are live if oakland where police say an 11-year-old boy accidentally shot and killed himself. what neighbors are now saying about the tragedy coming up in a live report. thank you for joining us. i am pam cook, in for tori campbell today. >> and i am dave clark. i was asking steve if we are still under a red flag warning? >> yes. in some area, especially until tomorrow. in the oakland berkeley hills i know the wind has really been cranking up. we have an easterly direction chewing up some of the fog. i know the last i saw was 57. easily 25 to 30 for some. 51 at sfo, 50 at half-moon bay. 50 at walnut creek and concord went from 37 to 54 degrees. santa rosa is 30 and 58 in san francisco as temperatures went up really fast. high surf warnings take us into friday. a low is backtracking in for nevada. it is cranking up our breeze. it looks like the fog has put on the air brakes, if you will. a breezy day. here is sal. steve, we have a lot of slow traffic in contra costa county. we will start with highway 24. a lot of people stuck in the horrible commute on highway 4 are now on 24. the dive time since 680 and the tunnel is 15 minute, a little more than normal. but a lot of people are still stuck on highway 4, taking 45 minutes to get from the brentwood, oakland antioch area to concord. that is a long, long commute. the east county commute is horrible and other things i can't mention. let's move along and look at the bay bridge toll plaza, also not doing well. this thursday is getting the worst day of the week award. backed up for a 30 minute delay, 12 minutes on the bridge, a total of 45 minutes. and the peninsula is slow on the 101 in san mateyo. now back to the desk. now on the breaking news from san francisco. crews are battling a fire in the city's mission district. we have ktvu alex savage live at the scene now. >> reporter: good morning. this was a three story building that caught on fire. it has residential units and a work space inside, as well. the san francisco firefighters are working behind us to put out all the hot spots as you can see. the fire itself has been knocked down. everybody that lives in the place made it out safely, but we understand one san francisco firefighter was injured battling the flame this is morning. i want to bring in the deputy chief mark gonzalez. how severe is this firefighter's injury in the. >> he was shaken up and taken to general as a precaution. i will visit him in a bit. >> reporter: he fell? >> he fell 10 feet from a loft space to the next. firefighters were with him and got him out of the building quickly. he was taken on a back board to the hospital. >> reporter: now, i understand there was a bit of difficulty for some of the people who negative this building to get out because of -- who live in this building to get out because of a staircase blocked? >> i understand most occupants got out before we got here. there were heavy fire conditions. one of the challenges we had is front stairs were burnt out so we had to find a secondary access up to the second floor where there was an active fire. there was also fire burning in the attic space and roof. >> reporter: any sense at this point as to what caused the fire? >> the cause of the fire is under investigation. >> reporter: thank you, deputy chief. a three story building where people live and also work spaces inside it, as well. you can see some of the people that live in this building behind us now. everyone made it out safely but one san francisco firefighter hurt after falling about 10 feet or so now at san francisco general hospital being treated. thrive morning in san francisco, alex savage, ktvu, channel 2 news. time now 734:67:89 police say an 11-year-old-boy accidentally died after shooting himself at will family home. what are neighbors saying, tara moriarty, who is out at the scene. >> reporter: yes. right now everything is quiet but when neighbors heard is new, they were obviously shocked and saddened. this house behind me is where it all happened. a neighbor said the home was quiet and they kept to themselves, so many people didn't know him. police were called out to the 1500 block of yosemite circle shortly after 7:00 last night . they found a boy suffering from a gunshot wound, pronounced dead by fire crews and paramedics. a preliminary investigation shows the boy accidentally shot himself while handling a gun. neighbors were in disbelief. >> he was a quiet kid. we went to his birthday party one year. he seemed perfectly fine. a happy guy with his dog all the time. >> reporter: now, the boy's name has not been released and authorities have not said whether any adults were in the home at the time or how the boy got the gun, so a lot of unanswered questions, still. live from oakland, tara moriarty, ktvu fox 2 news. a red flag warning still covers the north bay hill this is morning. the warning is because of the wind and unusually dry conditions. now over in the delta, the dry conditions fanned a brush fire on winter island near antioch and pittsburg. news chopper 2 was flying over the file. the continue cost fire crews said they did not aggressively fight the fire because they didn't want to threaten building and allowed the fire to burn itself out. hillsburg is ordering mandatory water restrictions. there has been a 15% increase in water use there. people living there are now being asked to only water outdoors every other day and not during the day. swimming pools cannot be filled and no car washing accept adding recycling car washes. >> we are over spoiled with the little things we take advantage of everyday. it will not be that hard. >> the city will stop watering landscapes and washing sidewalks. bars and restaurants are exempt from the restrictions now, but city officials warn tougher restrictions could come later. >> governor brown celebrated california's newfound multibillion dollar surplus in his state-of-the-state address, then told lawmakers don't spend it. >> we must establish a solid fund locked into the constitution. >> to further make his point, he passed around playing cards featuring his dog, sutter, on the front. on the back the card shows how in california good budget years have been followed by bad years. time now 7:38. there is a high surf warning along the bay area coastline this morning. the high surf warning starts at 10:00 a.m. and continues until friday night. high surf is expected along all the bay area coastlines from sonoma county to monterey county. if you are a beachgoers, watch out for bigger waves and the rip currents. in the meantime the excitement is building on the peninsula because of tomorrow's big wave surf competition. half-moon bay is hosting the mavericks invitational, attracting some of the best surfers in the world. we have more live from san mateyo county. you are right there. tell us about the preparations and what to expect. good morning, jeanine! >> reporter: good morning, dave. there are surfers out here at the beach, several miles away from half-moon bay. i am told the waves here are about 7 feet tall, but the maverick's founder says the waves at the competition tomorrow will be as high as 40 feet. just to give you some perspective, i want to swing the camera around here and show you just how tall the mast is on our live truck. it is 46 feet tall. really, the wave will be just a few feet under this, so it will give you perspective as to how monstrous the wave will be at the competition tomorrow. the contest was officially called yesterday and the top 24 surfers are now making their way to half-moon bay for the competition. many are from the bay area but some are come from hawaii, australia and south africa. earlier this week there was a strong south wind that started to show up and could bring conditions similar to what happened in 2010 when a buoy washed ashore and knocked down spectators. the wind threat like that has passed and surfers are looking forward to getting on the water. >> the waves will be big enough but local weather could mess us up. knock on wood, it looks like everything will work out. >> reporter: viewing on the beach is no longer allowed but the competition will be televised and played live on the web. san mateyo sheriff deputy will be patrolling the beach and bluff overlooking the water to keep spectators out. surfers out not competing says they can't imagine riding the epic waves expected tomorrow. >> i am sure will it be exciting for the guys out there. >> reporter: cool to watch as a surfer? >> i would love to watch it but i don't think i will be able to get down there. if i do, i will go and check it out. >> reporter: the contest takes place a half mile from the shore, so it is difficult to see the surfers at the distance. the beach will be closed tonight in preparation for the contest that is supposed to start at 8:00 a.m. on friday. reporting live in san mateyo county, ktvu fox 2 news. a toxic discovery at san francisco state university has staff scrambling to relocate some students. an inspection revealed there are unacceptable levels of asbestos, mercury and lead paint inside the science building. it has been shut down and conference rooms are now repurposed into classrooms. >> i have my schedule landed out. i am -- planned out. i am supposed to go back and forth and back and forth. now that i have to go downtown, it means less money and more stress. >> san francisco state university is in talks with companies that specialize in cleaning up hazardous materials. a foster farms chicken plant in central california has reopened after being shut down for a cockroach up if he isation. 3,500 people -- infestation. 3,500 feel have returned to work. two other plants have been linked to salmonella outbreaks. the livingston plant is foster farm's largest chicken processing facility. a new government report says sales of existing homes rose 1% last month after falling for three months before that. that boost its sales to 4.87 million for last year, slightly less than economists expected, but still the highest level in seven years. the median sale's price hit 198,000, up almost 10% from december of 2012. it is now 74:002. when we come back, justin bieber arrested. new information we just learned about what he is being charged with. >> i didn't feel like i could stand up to them at that time. >> an oakland raider cheerleader now changed her mind. find out why she is suing the team. >> good morning. highway 4 not doing well. it seems to be getting worse, too as the drive times up from concord are very slow. we will show you why things should be getting better in the next hour. >> well, it is sunny but the temperatures are all over the map from 30s to almost 50s because of the wind and wind directions. we will have an update coming up shortly. [ superfan ] we're hitting the road to help america discover the new helper. you've got to try this sweet & sour chicken helper. i didn't know they made chicken. crunchy taco or four cheese lasagna? can i get another one of those actually? [ superfan ] hey, america, we're here to help. ♪ [ female announcer ] at 100 calories, not all food choices add up. some are giant. some not so giant. when managing your weight, bigger is always better. ♪ ho ho ho ♪ green giant . welcome back to mornings on 2. time now is 7:45. a live look at the big board. the dow down 166 points, about a percent. the s&p 500 and nasdaq now dropping further, as well, since our last check. they are down almost a percent as well. for the most part dropping. mcdonalds reporting disappointing sales and economic issues out of china. wores about the china economy. the good news netflix, the bay area company, reporting a very good quarter and more customers. up almost $60 a share. breaking news now from richmond. we have learned that shorts have evacuated the police communication center due to some type of power problem. the evacuation began shortly after 4:00 this morning. all emergency communications are now being handled on a mobile command center. we will have more information on that in a bit. and new details about the arrest of justin bieber in miami beach for drag racing and dwi. police say he just arrived at the miami beach county jail for booking. bieber has also been charged with resisting arrest. he had consumed alcohol, marijuana and prescription drugs before he was arrested. he was also, according to police, driving on an expired driver's license. he is 19 years old and not legally able to drink. police stopped him after he was spotted driving 60 miles per hour in a yellow lamborghini on a street with a speed limit of 30 miles per hour. we will keep you posted on any new details. back at home, an oakland raider cheerleader is suing the oakland raiders. she filed a lawsuit on behalf of herself and fellow teammates, saying the team failed to paid them even minimum wage for the work they do on sidelines and work they do in the community for charity. >> the number one goal i hope to come out of the lawsuit is to have the raiders change their policies and procedures and treat the radars with respect. >> they are seeking back pay, penalties and a change in policies. the oakland raiders have 30 days to respond. a government task force that examined the national security agency surveillance program says president obama should end the agencies bulk collection of phone records. now the privacy and civil liberties oversight board is releasing its record today, even more sweeping than a proposal from a panel of experts last month. last week in a speech president obama said the bulk collection phone program will continue for the time being. former nsa contractor edward snowden is holding another question-and-answer session with the public today. he took part in one in june hosted by the guardian newspaper. snowden is living in russia, granting him temporary asylum. the chat starts at noon our time. time now 7:49. bay area classic car owners left high and dry by a man they trusted. >> they called me and said the check was no good. >> $33,000 no good? >> no good. >> today at 5:00, 2 investigate as high profile car dealer who promised fast money and never delivered a cent. how justice is finally being served. that is today at 5 right here on ktvu. right now at 7:49, back to sal to check in on the morning commute. >> all right, pam and dave. we have had slow traffic, especially in contra costa county. the traffic times in some areas are finally beginning to get better. those drive times are coming down. let's take a look at highway 4. finally some improvement here come from baypoint to concord. it took a while, too. the traffic continues to be slow, though, coming out of antioch and pittsburg, but it is improving on the way to concord. we have also been looking at the commute at the bay bridge toll plaza. the traffic is going to be backed up. this has been the worst morning of the week. 25 to 30 minute delays, then 10 minutes into san francisco. i want to mention that the south bay commute has been rather typical. i want to go to the maps here. 101 slowed near the capital expressway, slow at sunnydale and 17. minor fender-benders, but for the most part doing well. drive time on highway 4 is completely improved, 5 minutes there. 242 to 24 is 11 minutes, not too bad. back to you, steve. thank you, sal. a lot going on up in mathis, my temperatures from 32 to 47. on the way up. and antioch from 35 to 55 in two hours, all wind driven. there was fog out there. all of a sudden it ran into resistance in form of an east breeze. a little different pattern here today although we could sure use rain. none in sight. this january is going down in lord books for dry. had dry in the -- down in the record books for dry. there is no precipitation in the picture for a long way out. partly cloudy skies, maybe clouds later today. gusts 45 to 55 miles per hour. right above the caldecott wind tunnels and higher elevations. some observations show up, some don't. 30 to 40, and i have seen 56 and 57. oakland zoo is 31. some of the breeze is out of the south and some out of the east, northeast. fairfield, concord and oakland. nevada has a west wind to the napa airport. all over the place. temperatures are 37 in concord, up to 54 in an hour. no breeze here. fairfield is 35. no breeze for them. 55 at half-moon bay. 30 at sonoma county airport. high is your much and red flag warnings tomorrow. 26 in reno. 352 in san diego and los angeles. is system will move out tomorrow. a little change today. mild to warm, for others cooler. some fog near is coast but the east wind is really taking care of it. the temperatures 60s and 70s. really tough on the forecasted highs. they will be above average again. a lot of 68s in there. i threw in the towel because it is too tough for the east wind to hold all day long. it will be a little warmer. maybe a few partly cloudy skies, a little cooler friday then a rebound, mostly sunny and mild again into the weekend. >> time now 7:52. a woman from vallejo being called a hero. how tina williams saved a woman's life after a recent car crash and it is not the first time she has been in that situation. >> and we will introduce you into a family in california where three is not a crowd. . welcome back. prosecutors say wade shot a man after stealing his lamb begin any. wade was 17 when arrested and charged as an adult. a group of community activists against gun violence in oakland are demanding to be heard. last night dozens of people gathered in oakland on behalf of a mother whose two sons were shot and killed during a three week span. the 13-year-old was killed on new year's day to where his 19- year-old brother was killed on january 20th. >> it will take us to stop this. we need to let our baby know we love him. >> he was killed along with his best friend, 19-year-old derrick harris. no arrests have been made in either case. park officials are expected to meet to discuss a plan for illegal trail that is pose a risk to wildfire. the meeting comes after park officials discovered an illegal bike jumping course even used by olympians. the course is on habitat for the spotted owl and red laked frog and both species are protected under the endangered species act. the city reaction and park commission is expected to approve terry grim in the oyster district to run point tower. the city wants the new operator to provide new information and protect the mural as well as upgrade the gift shop. the board of directors has to approve the lease. time now is 7:57. oh, baby, three is not a crowd for a family at long beach. the doolyy celebrating the birth of naturally born triplets. the couple has a 5-year-old daughter and can't wait to bring the babies home. however there is one problem. they can't tell the babies apart. the odds of having identical triplets are one in half a million. in northern california the couple welcomed a set of naturally conceived identical triplets last november! >> we were talking about that. i can't imagine it. >> yes. coming up next in our 8:00 hour, new allegations of a caltrans cover up during the construction of the eastern span of the bay bridge. now they handle # workers who pointed -- handled workers who pointed out problems. good morning. san francisco northbound 101, the traffic here is looking pretty good. southbound 101 is okay but the traffic time getting into the city from they bay is ramping up. >> and lots of sunshine, but there is also a rather strong wind kicking up its heels in higher elevations and picking up at the surface, as well. breezy, but what about the temps. . it is 8:00. we are live in san francisco. look at the scene here. people have been forced out of their homes after an apartment caught fire. you can see them bundling up in the cold here. also a firefighter was hurt battling this. this is in the mission district right now. ktvu alivia kail is there. -- alex savage is there. he has been there for awhile talking to officials and residents. we will have a report in minutes. it is thursday, january 23rd. i am dave clark. >> and i am pam cook in for tori campbell today. steve, you have been talking about winds, dangerous right now. >> twitter, facebook, email, and once in a while i do a little weather, too. a little lull is producing cloud cover there. some of it will backtrack later on today. oakland is 56 right now. 58 in san francisco. half-moon bay is 59, yet 27 in santa rosa. it is really cold or really breezy and mild to warm. high surf plus red flag warnings for the north and east bay hills until tomorrow. the strong northerly breeze is a very dry breeze. temperatures are 30s for some. if you don't have a breeze, but overall a lull forming here. fog, sun and breezy. highs today a lot of 60s. here is sal. right now we have slow traffic out there. i want to show you traffic times wes have out there. highway 4 improved. 4 minutes now. it was more like 45 minutes earlier. now a lot of the slow traffic is on highway 680 from 242 to highway 24, however that is only taking 13 minutes when it is not moving slowly, that thing should be taking 3 minutes. let's take a look at live pictures. the bay bridge also some improvement here. about a 20 minute delay at the toll plaza and 10 minutes on the bridge. the commute on san jose has cleared out nicely. back to the desk. >> sal, thank you. we are starting the 8:00 hour with breaking news we told you about from san francisco. just 30 minutes ago we found out a firefighter was hurt fighting an early morning fire in the mission district. ktvu alex savage is there. alex, do you know -- everything is happening and you have new information? >> yes, good morning, dave. we understand that fran firefighter right now is at the hospital being treated for injuries he suffered after falling ten feet or so from a loft space inside this build that caught fire this morning. this is the building behind us, on the 1400 block of stevenson street, sort of an alleyway that comes off of valencia and 13th street. it caught fire around 6:00 this morning, a three story building with nine residential units on the top floor, then work spaces and businesses down on the ground floor. about 20 people live here. one of the big issues early this morning for those folks trying to get it out when the fire started, the front staircase of the building was blocked by fire. a lot of people had to go to a small spiral staircase in the back of the building to escape the flames and smoke. we talked a short time ago with one man inside the building sleeping. he woke up. hit room was full of smoke but -- his room was full of smoke but he managed to make it out okay. >> my room was full of smoke. i heard someone yelling. that originally woke me up and i opened my eyes to thinking it was a bad dream but it was reality, not being able to breathe and trying to get out of the building. >> reporter: everyone who lives here did make it out okay. again, the one firefighter was injured after falling 10 feet, but we understand that he should be okay. a fire investigator has been called in to pinpoint exactly what caused this early morning fire. we understand there was extensive damage done to the building. it is unclear if all the units were damaged and how much damage there was to the businesses down below. we understand there is a clothing business and other work spaces, artist studios and so forth on the ground floor. all the people who live here, ant 20 people negative the building with are told and all being helped -- about 20 people live in the building and we are told they are all being helped out by the red cross. alex savage, ktvu fox 2 news. we are learning more about a bart police officer that shot and killed a fellow officer in tuesday's tragic accident. sources tell us that brian mayes has been with the agency for 14 years. he is the father of a teenaged girl. the former bart police chief gary g. says mayes is an excellent police officer. >> very conscientious, dedicated, a hard working officer. he had kind of a dry personality, but he was approachable. just someone you could talk to. >> investigators say he accidentally shot and killed sergeant tommy smith while officers were searching the dublin apartment of a robbery suspect. mayes fellow officers, family members and friends say he is devastated and overcome with grief. in the meantime, the big questions in this tragic incident remain unanswered. investigators are not sure how or why the gun went off during the search of the one bedroom apartment. >> everybody has been interviewed. now we can go forward and try to reconstruct exactly what happened. >> we are in shock and disbelief and numb. we are grieving. and please give us some time. >> yesterday the alameda coroner's office conducted an autopsy on sergeant smith. we could get the results of the report very soon. time now 8:07. pg&e crews in hayward still trying to fix a power line that was toppled in a car crash. the chp say as man had a diabetic seizure while driving through mission boulevard and rose street. he slammed into a power pole knocking down the line. pg&e says it didn't cause any power outages, but pg&e was able to reroute power to other lines. however, traffic, traffic has been backed up in both directions of mission near rose to remove fall be debris. we are told the driver was not hurt in the crash. also a car crash is still shutting down a major road on brentwood, happening on brentwood boulevard closed between balfour road and sellers avenue. the car hit a pole at 8:30 last night. power has been restored to most of the customers now in that area. a huge explosion last night at sacramento area apartment complex may have been caused by a drug lab. deputies found a lab for making hash oil at a rancho cordova apartment building where a big explosion shattered windows and damaged four apartments. two people suffered burns and the red cross is helping 146 people who live in the building find a new place to live. we also have new information on a story from vallejo we first brought you yesterday. police say they arrested 30- year-old angela black on suspicion of killing a man at a mobile home park. a 47-year-old man was shot and killed at the vallejo mobile home estates. black had also tried to kill another person at same mobile home police say. a neighbor said she and the victim lived together and were often heard arguing. in sacramento a state senate hearing will investigate allegation that is caltrans tried to cover up problems curing the construction of the eastern span of the bay bridge. a report released ahead of this morning's hearings said when quality control workers found problems during the span's construction, instead of fixing the problems, caltrans replaced the workers who found the problems. the report also says bridge officials were warned in 2008 that some of the spans anchor rods were not properly tested. some of the rods snapped last year. well, if you have a opinion about the four different plans to raise the tolls on the golden gate bridge, you can speak out today. there will be a meeting for public comment in san franciscoment the meeting starts at 4:00. the district could raise tolls to $8 by 2018 to cover budget shortfalls. the board won't consider the toll hike until the end of next month. a prose toll build a new jail is expected to top the agenda at a san francisco supervisor meeting today. the city is proposal building a $290 million jail to replace an inmate center on bryant street. it would be on a site where a mcdonalds now it is near the hall of justice. the sheriff says the old jail is not safe, especially during a earthquake, and doesn't allow for rehab programs, but critiques say the city should focus on reducing the number of inmates or move the inmates to a jail in san bruno. 8:10 is the time. a new poll suggests president obama as a person but have questions about his presidency. less than a third of americans consider him to been an outstanding or above average president. 42% rate his performance as below average or poor. his approval ratings are slightly bigger than 45%. analysts say his declining numbers are a result of liberals unhappy about his agenda. time is 8:11. friends of a woman from vallejo are once again calling her a true hero again. she risked her own life to save someone. her name is tina williams and she was heading home yesterday when she drove up on a three vehicle accident on i-08. she saw a woman trap -- i-80. she saw a woman trapped in one of the vehicles and she rushed over to help out. >> i jammed the door wide open. she was upside down. i yanked the seatbelt down, she fell down a little bit and i was able to get her out. >> this is the second time miss williams saved someone involved in a crash. in 2011 she was here and pulled an unconscious big rig driver away from a fiery crash on highway 101 in san francisco. she was applauded in many ways by a lot of people. >> that is phenominal that she has done that twice. >> yes. >> good job. 8:12 is the time. toronto mayor rob ford speaks out about video that has now gone viral. >> plus, why the food & drug administration is citing impossible health risks from a common ingredient you find inside of soda. >> and take a look at northbound 101 in san jose, getting a little better but some areas are still slow. we will tell you where those are. >> lots of sunshine but the breeze is picking up so far. most of it seems to be offshore, but will it old, or will it be warmer or cooler? . welcome back. 8:15. mark herring has officially joined a lawsuit challenging the state's 2006 ban on gay marriage. herring argued in a brief filed today that virginia's prohibition on same-sex marriage is unconstitutional and discriminatory. his decision marked a seismic political shift in virginia, a battleground state in the national fight to grant same sex couples the right to wed. a hearing is scheduled for january 30th. protestors in the ukraine have lit a ring of fire against the police after giving the president of ukraine an ultimatum. those protestors threatened street violence unless early elections are called. now the ultimatum comes after weeks of protestors over a decision to reject a trade deal with the european union in favor of closer ties with russia. the united nations has one more day to see if the two sides in the syrian civil war will talk directly for the first time. peace talks in switzerland got off to a rough start yesterday. representatives for the sir january government insist that president assad will not leave power. however the syrian opposition and the united states insist has got to go. a u.n. mediator say there is are signs the two sides may bend on humanitarian aide, cease fire and exchanging prisoners. the american lung association is giving good grades to several bay area cities on its annual stop smoke report, grading cities and counties across the country for anti-smoking efforts. berkeley is the only city to earn an a. san francisco and oakland each received a b. san jose got a c. santa clara and antioch received failing marks. toronto mayor rob ford is talking about a new video raising questions on whether he really stopped drinking. he states he had a minor lapse and it is really a private matter. a rant at a canadian fast food restaurant went viral. >> monday was unfortunate. i had a minor setback. we always experience these difficult bumps in life. >> ford has resisted call are for his resignation since admitting to a drinking problem and using crack-cocaine. he plans to run for re-election in october. new concerns about what may be in the soda you drink. the f.d.a. conducting new tests on the safety of the carmel coloring -- caramel colors used in soft drinks and other foods. level of carcinogens can be found in the manufacturing process in 12 brands of soda. new research has found no risk to your health. right now it is 8:18. what are you finding in the commute, sal? >> we are looking at the east bay, still pretty slow in many areas. it is getting better. the heart of the commute was between 6:30 and 7:30 when everything was slow. take a look at the bay bridge toll plaza where the traffic back up is thick, picked up for a 20 minute delay and another 10 into fran, so a half hour -- san francisco, so a total time of half an hour. and the san mateo bridge could be an alternate for you. westbound 580, we improved a little coming into livermore. on the altamonte pass we have seen a lot of green where there used to be red. 880 is where a lot of the traffic is from 238 to the fremont. most of it is on the brakes. 8:19. now to you, steve. thank you, sal. a good morning. a few clouds may be developing, wrapping back in from the sierra nevada where a little low is moving in, and the breeze is really cranking up for some. especially in the east bay hills, oakland hills seeing gusts of up to 65 miles per hour. we have seen patchy fog out there. a dry pattern. no rain through the end of the month. we had more record highs yesterday. ten consecutive days. oakland 75 downtown. mountainview and gilroy 67. you can see the low forming there giving us partly cloudy skies, probably already in the east bay. the cloud cover is sneaking in, heading right back over us. as it does it is really picking up winds. some of the elevations are at 1,000, 1500 feet. offshore in oakland 13 miles per hour. offshore con ford 37 to 54 in one hour. dana, in napa 32 to 54 degrees. a south wind in nevada. some areas are getting a westerly breeze, mainly offshore. shove is 59. 59 in oakland, 27 at the sonoma county airport. some areas are very cool and others are very warm. today and tomorrow partly cloudy skies i think ear. a little cooldown. fog, sun and breezy. fogs along parts of the coast. breezy for everyone else. 60 to near 70 degrees. tough forecasted highs if the wind holds. some of these will come in a little cooler, but it will be up in the morning and partly cloudy in the afternoon as the system slides back toward us into friday. then it is gone by the weekend which means mostly sunny and warm. >> thank you. the time is now 8:21. rushing to relocate. that is what a san francisco university is doing for thousands of students after dangerous chemicals were found in one of its buildings. and suppose there is no super bowl sunday? the reason the big game may have to be moved to another day. welcome back. the time now is 8:24. it is possible the super bowl may not be played on sunday. it may be moved to is saturday before or the monday after, the reason, an expected storm. officials say it would have to be worse than the one that hit on tuesday before contingency plans would be used. the nfl says the decision to move the super bowl date would not be an easy one at any rate. >> if it became a serious possibility we could have to move the game, we would be putting out a lot of information to the public. >> this week's storm back east was a dry run for the crews at metlife stadium. they have a crew of 1,600 on standby to clear off the field and stands. a reminder, ktvu channel 2 will be airing the super bowl when it happens. as of now the game is still scheduled for sunday february 2nd with a kick-off at 3:00 25. a series of fundraisers starts tonight to raise money for brian stowe, the giants fan brutally beaten outside of dodger stadium in march of 2011. giants 3rd base coach will perform the benefit concert, tim flannery, in redwood city. he will perform at the sweetwater music hall in mill valley, and he will be at the jazz center in santa cruz on sad and on sunday at the wood shed. well, a 11-year-old boy is being hailed for spotting a missing alzheimer's patient. he was honored by berkeley police at his elementary school yesterday. he did the right thing last week. brandon saw a picture of a man on an alert that came across his mother's cell phone. he then insisted she call police. >> right when i looked at it, the guy started passing by me and i said that is him. >> he was ecstatic be recognized and his classmates really supported him. >> he said it was pretty cool to get the man reunited with his family and the boy's mother is very proud of him. and here is another reason to be proud. there with 800 entries in the intel science competition. 2 bay area finalists are from this area. the time is 8:27. a tragic shooting. it happened in the east bay. what we are finding out about accidental shooting of an 11- year-old boy. >> good morning. right now we are looking at traffic that is going to be busy still on some of the commutes, especially the lake commute on i-80. we will tell you what the drive times are here. >> mostly sunny now. the breeze is cranked up for some in the higher elevations but a change in the pattern today. . welcome back. it is 8:30 on thursday, january 23rd. i am dave clark. you are here with mornings on 2. well, what are we seeing with the weather? yes. we have really been seeing breezes. some locations in the higher elevations are really cranked up. the red flag warnings are out. an easterly to northerly breeze of gusts from 45 to 57. oakland and berkeley hills seems to be taking the brunt so far. some are around 30 to 31 but the oakland hills north is 1300 feet at 37 miles per hour. if you have the breeze your temperatures have probably gone from the 30s to 50s. 56 in oakland. other locations are 15 to 20 degrees cooler. a lot of craziness with the wind direction and speeds. the high surf advisory, as well. the low will move across us and move northward by tomorrow but there is patchy fog out there right now. partly cloudy later on today. support for some. breezy for others -- sun for some. breezy for others. here is sal. steve, we have seen the traffic shift from the outer parts of the bay area to the inner core where the jobs are. we are seeing traffic times right now on 880 go up as a result. most people stuck in outlying areas are here, backed up from the coliseum. 12 minutes to drive about a mile-and-a-half getting up north of the freeway. when you get to the toll plaza it is about a 15 minute delay at the toll plaza and another ten on the bridge. now it is less than a half hour to get into the fran drive time. if you are driving heading south from 92 to hayward, we have slow traffic there. 8:32. back to the best. -- desk. the police dispatch center in richmond was evacuated earlier this morning because of a power problem. 9-1-1 calls in the county were affected. ktvu brian florez is there at the center. i understand it has been fixed? >> reporter: yes, it has been fixed. the richmond police command center has reopened for about an hour. as we mention this had started around 4:00 this morning. dispatchers here at the richmond police command center smelled smoke and fumes come from a command unit system inside the command center here. it was a battery issue according to police putting off fumes. people were evacuated and richmond fire arrived here. people from the communication center evacuated and some of the non-emergency calls were routed and emergency calls were rerouted to the contra costa sheriff's department. the richmond police command center is back up and orangessal and all emergency and non-emergency calls are back to normal and routed rain storm. live in rich -- routed properly. live in richmond, ktvu fox 2 news. an 11-year-old oakley boy died after accidentally shooting himself in his family home yesterday. ktvu tara moriarty is there in the neighborhood to tell us what is happening there this morning. tara? >> reporter: a couple of minutes ago we saw family members. we believe they could be the grandparents pull up in the home and go inside. we understand this is a multigenerational home. the people who live there are quiet and keep to themselves, so they don't know them very well. but they had seen the boy outside with his dog from time to time. last night around 7:00 police were called to the represents of the 1300 block of yosemite circle in oakley. they found the boy suffer from a gunshot wound and pronounced dead by fire crews. the boy accidentally shot himself while handling a gun preliminary investigations show. neighbors were in disbelief. >> he was a quiet kid. we went to his birthday party one year. he seemed perfectly fine. a happy guy with his dog all the. >> reporter: the boy's name has not been released. the sheriff's department is handling the investigation. we have been in touch with them and we are hoping to hear back this morning and will pass along any updates to you. live from oakley, tara moriarty, ktvu fox 2 news. the north bay hills are under a red flag warning today prompted by wind and an unusually dry winter conditions. in delta the dry conditions fanned a brush fire on winter island near antioch and pittsburg. chop chop flew over the fire which was spewing smoke for miles. cloverdale is now being hit with severe warnings against unnecessary water usage and people abusing the order could be hit with fines. residents are being asked to water outdoors every other day and not during the daytime. swimming pools can't be filled up. you can't wash your car except at a recycling car wash. >> we are spoiled with the little things we take advantage of everyday. it won't be that hard. >> the city will stop watering landscapes and washing off sidewalks. bars and restaurants are exempt from the restrictions right now, however city officials are warning thing comes get tough for them later. house republicans met here in california to unveil legislation dealing with california's drought. they want to temporarily bypass laws that impact endangered spectatorscies of fish. house speaker john boehner promised to push the legislation through house in the next couple of weeks. in his state-of-the-state address governor brown celebrated california's newfound budget surplus but said we need to learn from past mistakes and put money in a rainy day fund. >> the surplus in the billions. in the billions. but don't spend it. that is the point. >> to further make his point, the governor passed around playing cards featuring his dog sutter. on the front a message says prudent accordingy knows to nibble at his kibble but on the back it says california's good budget years have been followed by bad budget years. tomorrow is the perfect day for the world's top 24 suffers -- surfers to compete. we have more about the excitement and what to expect out there. good morning, jeanine. >> reporter: good morning, dave. i want to give you height perspective on how high these wave will be. i am 5'6", but this mast on top of our live truck reaches to 46 feet tall. i am heard the waves could reach 40 feet. that is massive. a lot of the surfers in the water right now can't imagine trying to ride that. the waves at this beach, several miles away from half- moon bay right now are seven feet. right now the top 24 surfers are making their way to the pillar point for the mavericks invitational. once the contest is called they have 48 hours to arrive. while there are local surfers competing, some are come from australia, brazil and south africa. earlier this week there was a strong wind that could bring conditions like that in 2010 when a rogue wave washed ashore and knocked down spectators. various restaurant will be showing the contest on tv and the oceana hotel is playing host to the surfers and fans are pumped. >> it is exciting to see the scale of those waves out there, the courage it takes for those guys to even consider taking off on something like that. it is fascinating. it is just nature at its most raw form. >> reporter: the san mateo sheriff deputies will be patrolling the beach and overlooking the water to keep spectators out. the contest takes place a half mile from the shore so it is difficult to see the surfers at that distance. the beach will be closed in preparation for the competition that is supposed to start at 8:00 a.m. tomorrow. reporting live from san mateyo county, ktvu fox 2 news. and a problem at a recent routine inspection at a local university revealed unexpect levels of asbestos, mercury and lead paint inside the science building. it has been shut down and off campus meeting and science buildings are now being changed into classrooms. >> i have my schedule planned out. i am supposed to go back and forth. knowing i have to go downtown means lots more money, time and more stress. >> san francisco is working with company that is specialize in cleaning up hazardous materials. school experts are determine federal government there are potential health affects. the number of flu related deaths in the bay area keep rising. six new deaths reported. that makes 28. in the latest cases three were from contra costa county, two men, one woman. i just tweeted tout mug shot, but there is -- tweeted out the mug shot, but there is also new video and the serious charges he is facing and a look at that mug shot. a lot of people talking about it. >> and in san francisco a large fire in a three story building. we will tell you how one firefighter was hurt battling the flames here. >> right now we are still looking at slow traffic as the morning commute winds down. a look at a live picture of highway 4. better here but not better everywhere. >> lots of sunshine, but that breeze is really cranking up the higher elevations. it will be a breezy day, but will be temperatures be cooler or warmer, and will we get any clouds in here? ♪ [ female announcer ] wherever morning brings you, bring the energy you need. nature valley soft-baked oatmeal squares. softly baked, made with hearty oatmeal and a drizzle of cinnamon. they're nature valley's take on a morning classic. because when you keep going, the morning can bring you to brand-new places. ♪ nature valley. nature at its most delicious. . welcome back. the dow seems to have leveled, about about 1%. a lot of earnings reports is disappointing. mcdonalds one of them. southwest airlines beating some of the forecasts but some of the numbers also missing, as well. nokia also, sales dropped there. that is affecting the markets today. >> all right, pam. time now is 8:45. police in oakley say the shooting death of an 11-year- old boy appeared to be an accident. police say it looks like the child shot himself. they haven't said where he got the gun or if any adults were in a home at the time. >> we are also getting new details about a bart police officer that hot and killed a fellow bart officer on tuesday. michael mayes is seen here in a part promotion video about holiday shopping safety. mayes has been with bart for 14 years. and an update on a story from san francisco we have been on for the past two hours. a firefighter was hurt this morning battling an early morning fire in the mission district. ktvu alex savage is there with the very latest on what is going on. alex? >> reporter: question. we are near 14th street and valencia. this fire broke out before 6:00 this morning. it is a three story building with nine apartments upstairs and several businesses down on the ground floor, including a clothing business. there are artist work spaces as well, we are told. about 20 people were inside at the time of the fire. many of them were sleeping. some had trouble getting out because the main staircase to the building was blocked by fire. people were forced to use a small spiral staircase in the back of the building to escape. everyone who lives here is okay. the firefighter though who fell is being evaluated right now by doctors. >> he fell from one level of loft space to the next, about 10 feet. he was gotten out quickly and put on a back board and taken to the hospital. he seems to be fine. >> reporter: along with the people who live here, there were also quite a few pets in the building, i am told. dogs, cats, a bird and a pair of snakes that had to stay in the building. one owner says she is hoping her pets surviveed in all this smoke. the firefighters dog mop up work. the flames knocked down at this point. the red cross is coming to help the people who live in this building, helping them find a place to stay. investigators will try to figure out exactly what caused the early morning fire. live this morning in san francisco, alex savage, ktvu fox 2 news. we have video from tmz of justin bieber's arrest for drag racing, dwi and resisting arrest in miami beach. police say bieber was arrested early in morning after being spotted driving 60 miles per hour in a yellow lamborghini on a street where the speed limit is actually just 30 miles per hour. we are getting a look at bieber's mug shot. the 19-year-old admitted to consumer alcohol, marijuana and prescription drugs. >> he was questioning why he was being stopped. ultimately he stepped out of the vehicle and would not follow the officer instructions. at that time he placed mr. bieber under arrest. >> this is not the singer's first brush with the law. police raided bieber's southern california home last week after he was accused of throwing eggs at a neighbor. bay area classic car owners left high and dry by a man they trusted. >> the bank called me and said the check was no good. >> $33,000 no good? >> no good. >> we investigate a hey profile dealer who promised fast money and never delivered a set. how justice is finally being served today at 5:00 right here on ktvu. let's check back in with sal for the commute this morning. sal? >> we are looking at the commute that is winding down a little bit as we see improvement trying to get to san francisco, for example. a ten minute delay at the toll plaza and another ten minutes onto the bridge in san francisco. i-80 north and southbound looks good. southbound is good until you get to 92 but northbound is backed up for a 15 minute drive to oakland, a long drive time. this morning's commute on southbound 880 is backed up from 92. to you, steve. thank you. hi surf advisory takes us to friday. the wind has picked all and temperatures are mild. i think it is 60 at half-moon bay with an easterly breeze to 25 miles per hour. a lot going on, but nothing in the way of weather. a system in tahoe may produce shower activity with partly cloudy skies later. the fog is trying but when you get an easterly breeze report, steve says man, it is really howling up here but it is not out of the south. that is true. it is not. it is mainly out of the east. breezy to windy for some. mainly breezy at the surface, 30 miles per hour. common for some. 30s to 50s in about two mowers. red flag and high is your -- two hours. red flag and high surf advisories expected. current temperatures are bone chilling cold. i want to get this in if i can real quick. globally, ban cock, thailand, the coldest in -- bangkok, thailand is the coldest globally. cold in other place, as well, cold in most of the eastern u.s. and snow falling in the panhandle, so things are whacky. not here, just windy and we will see temperatures be reflective of that today. mainly right now an offshore breeze, going from sunny and warm to breezy and partly cloudy pattern as we go into the next 24 hours here. some fog on the coast, windy the hills and parts of the basement temperatures will be anywhere from 60s to near 70 degrees. these are all dependant on the breeze. kind of a push on the highs because it is so tough to call. you can go from cold to warm in two hours. dry and mostly sunny saturday to monday. >> thank you, steve. time now is 8:50 2. what to do -- 8:50 2. what to do next about government spying. the task force has much to say to president obama. that it's given me time toabout reflect on some of life'seen biggest questions. like, if you could save hundreds on car insurance by making one simple call, why wouldn't you make that call? see, the only thing i can think of is that you can't get any... bars. ah, that's better. it's a beautiful view. i wonder if i can see mt. rushmore from here. geico. fifteen minutes could save you fifteen percent or more on car insurance. . welcome back. happening today a sarasota man accused of trying to kill a romantic rival and stealing a sports car from a celebrity chef is going to be sentenced. max wade was convicted in october of firing shots at an 18-year-old mill valley man last year because of jealousy over a girl. he stole a lamborghini belonging to food network star. he was 17 when he was arrested but charged as an adult. government task force has examined the national security agency and says president obama should end the government's bulk collection of phone records. the last week in a speech president obama said the bulk phone collection program would continue for the time being. in the meantime former nsa contractor edward snowden is holding another question-and- answer session today with the public. back in june snowden took part in one hosted by the guardian newspaper. questions are being submitted on a twitter hashtag. edward snowden is living in russia, which granted him temporary asylum. the chat today begins at noon our time. high-tech companies in san francisco will continue to get tax breaks from the city. in exchange twitter and four other companies agreed to provide several community benefits to mid market neighborhoods. twitter agreed to buy half a million dollars in products and services from local businesses and increase community donation this is year to $388,000. the public will have a chance to weigh in today on a plan to tax soda and other sugary drinks in san francisco. the city supervisors have introduced a ballot measure that asks voters to approve a soda tax to fund nutrition. it would add $0.02 per ounce to the cost of a soda. the meeting is this afternoon at the alex fisher community room. you are watching the toll plaza and everything else in traffic? >> he. it is improved finally get into san francisco. about a 10 minute delay at the toll plaza. not that bad. another 10 minutes on the bridge. 20 minutes to get into the city. if you are in the city, this is northbound 101. this is blocked at orbe at the fire station due on the an accident but shuttle buses are there replacing service. on highway 13 through the oakland hills it is slow town 24. now, let's go to steve. thank you, sal. we had fog for a while. i know we had some in oakland and san bruno. there was a strong east wind that took over. breezy, and cooler today and tomorrow and a more warm and mild week next week. >> thank you. that is our report for you this morning. we thank you for making ktvu your choice for news. >> be sure to tune back in for more ktvu news at noon. you can also find us online and facebook and twitter. thank you for watching. hi, everybody, i'm beth troutman. there's no need to search the web for great videos, because we have the best ones right here, "right this minute." a dangerous situation as cops try to pull a wanted man from a car with -- >> a driver and five children. >> see what happens when threats and tasers don't work. >> get on the ground! a horse being rescued from icy water sends a clear message. >> everybody stay away from the po
330,000. also manufacturing pmi, the fhfa home price index, the leading economic indicators and then the kansas city fed survey. the annual fed symposium in jackson hole is just getting started and steve lessmiesman w join us from there. we're going to get over to michelle, who has some headlines for us. >> corporate news. a number of tech stories this morning. hewlett-packa hewlett-packard's third quarter earnings and revenue met estimates. a 9% decline in the enterprise group revenue. that's hp's second largest division and key part of ceo meg whitman's turn around plan. the company's outlook was also disappointing. hp announced it is shuffling some of its top management ranks. shares falling in after hours trading, lower by 8% in the premarket. we'll talk to -- we'll talk to an analyst in the next hour and ceo whitman will join squawk on the street 9:00 a.m. eastern time. apple lost tablet share in china. a drop to 28% versus 49% a year ago. samsung's market share increased at the same time. the real winners, though, were small domestic rivals in china. in other tech news, yahoo! has overtaken google as number one in internet traffic. the ranking released in the monthly report. andrew? >> unbelievable, yahoo! overtaking -- i don't understand how that is possible given i'm in google every ten sebds sea sh in google every ten sebds seaec searching for something. i would think every search would count. who knows. we have financial industry news to bring you this morning. the s.e.c. reportedly investigating goldman sachs over the erroneous options trades. the ft says the regulator saw parallels with the night capital trading glitch in august of last year. you remember that. and then the s.e.c. is looking at whether any of the rules were broken before. meantime, goldman is assessing the financial damage caused by the trading glitch. an estimate of as much as $100 million. britain's serious fraud office is working with u.s. counterparts into the investigation into the jpmorgan london whale case. charges were brought against two traders last week. also some news on wells fargo this morning, it cut 2300 jobs in its home loan business. the bank says fewer customers are refinancing as interest rates rise. cuts would represent about 3.3% of the bank's consumer lending employees. joe, over to you. let's check on markets this morning. yesterday, a new rule of thumb, for every ten basis points in the ten years that yields rise, we lose 100 points in the dow basically rule of thumb. up to 291. from basically 251 to 291, 40 basis points and 400 points. the market has a lot of trouble getting out of its own way. today we're looking at -- to count on that being a positive close at 4:00, 14 points, with the jobless claims number coming is, you know, it is kind of meaningless. >> one of those situations if the jobless claims number is really good, then the ten-year yield rises and does the stock market fall in. >> who knows. but with hewlett-packard in the dow and now we know, i don't know what's wrong with that company, meg whitman will be on. she goes on with favor, basically. all relating back to the ebay documentary, i think. he's got a lock on -- don't even call her. she'll tell you no. >> that's not aimed at david, no. he asks tough questions. yesterday we had a conversation about tough views, how the company is being matched. >> interesting news about whether she's the right person for the job at -- >> have we asked that about the last four ceos? >> we ask that a lot. >> and the board. >> and also -- let's look at -- we'll get through the boards. that's why they don't -- they won't let me read any headlines anymore. >> why? you're good at it. >> i don't know. going where the strength is. i think -- i don't know -- >> my relationship with the teleprompter is not great. let's be honest. >> they won't pass it to a certain receiver because they think maybe he showboats. i don't know what it is, but if that's the way it is going to be, that's -- trying different little things. i'm going to try to turn my spots. so let's look at the oil board now. oil is up 51 cents at 104.36. we'll look at the ten-year, we already referenced. ten-year at 291. that was the problem yesterday. quick look at the dollar and then gold. gold is suddenly shining a little bit, regaining a little luster. euro at 1.33. yen at 98. and finally gold is down 1367. we have one problem, if i can't ask you how yahoo! can possibly have more traffic than google, i didn't understand how that was possible, because remember the other day, google was down for five minutes and traffic was down 40%. how can yahoo! possibly and -- >> i read the reports, i started looking online, is this -- >> you don't have the answer? >> i have no idea. i misuse google, i don't know, 50 times a day, 70 times. >> do you take back anything you said about mauririssa mayer now that yahoo! -- >> the pose in the vogue? >> that and other -- >> what was -- i don't think you think she's the right person. >> no, no, no. i think she's done an -- i think she's done an extraordinary job. i think, though -- >> anybody could have done it. >> the value of alibaba was going up irrespective of who you put in that place. she's done an extraordinary job of bringing a whole new group of people in. i think the jury is completely out as to whether the strategy itself is working, but i think now people are looking at the value going up and going, it is her, i would suggest to you it is this other thing. but it is also possible she's doing a great job and we won't know that part for a couple more years. >> maybe all the employees just constantly searching. going to yahoo! and -- >> we'll find out there is search farm in india. >> go sit while the investors walk through and trade some broadband. >> i'm not sure what's going on. also, we had some other earnings news this morning. >> this is not earnings news. this is loss news. >> it is loss news. sears posting a bigger than expected loss. we're going to watch the shares today. you stheee them trading 43.27. we go across the pond, say hello to carolin roth, standing by in london this morning. good morning, carolin. >> good morning to you. and we are seeing european markets rally on the back of better than expected pmi numbers for the eurozone. activity the high northwest tes years. france a bit of a disappointment, close to the session highs, up by .9%. we had better than expected earnings news, impact the dutch market. i want to show you the markets one by one, the ftse 100 up by .9%. the xetra dax seeing nice outperformance. it is the peripheral economies of the markets which are seeing the best gains. the spanish market up by 2%. portugal rallying this morning. we spoke about the dutch supermarket chain, ahold. this company really -- the shares up nicely by almost 5%. now it did beat expectations, it gained market share in its home market. having said that, sales in the u.s. are still slowing. keep in mind it owns the stop and shop stores. meanwhile, if we look at the forex markets, this really is a picture of dollar strength. euro dollar, it did spike to a session high on the back of the pmi numbers, but has come down since, down by .3%. dollar yen is up by more than 1%, seeing very nice gains approaching that 99 handle. essentially finally the dollar is now tracking u.s. yields higher. back over to you guys. >> thank you very much, carolin. another major story today, what is being called china's trial of the century. disgraced politician bo xilai faces charges of corruption, bribery and abuse of power, being billed as a fight against corruption. eunice yoon joins us from outside the courthouse in jinan. eunice? >> hey, guys. as you said, this is china's most important trial in decades. it is happening right behind me in the courthouse behind me. now, most people have been talking about how bo xilai, this once high flyer, a man who a lot of people here believed was going to become a leader of the nation now has been disgraced. because of that, we saw him run into quite a lot of political trouble, political scandal, that really shook up the communist party and now he's on trial for charges of corruption, abuse of power, as well as bribery. what is interesting is the trial is being billed as a government cleanup, highly choreographed and we expected it to be so. i want to pull up a photo for you to give you a sense of how stage managed this is. you should be seeing a photo now of bo xilai in the courtroom, flanked by two police guards. bo xilai is actually 6'1". that means the chinese government had to actually come in and find two basketball player sized chinese guards to make bo xilai look really small and weak. so we know this is a carefully crafted trial, but at the same time, what is interesting now is that bo xilai seems as though he didn't get the memo. in the afternoon of this session, bo xilai has started to really show his personality. he's very charismatic man. because of that, he's been very divisive here and he started to pull apart the charges that have -- the prosecutors have been bringing forward. he's been pulling it apart detail by detail, denying him, defending himself and his wife came in and submitted testimony against him and he said -- he shot back and said his wife had mental issues. this is a very unusual situation that we're seeing in a chinese context, just because he is speaking out so loudly, defending himself, and a lot of people seem to believe this suggests that he's going to fight for himself until the end. >> let's underline that, the fact he's trying to defend himself is significant. we take that for granted here in the united states. not so in china. that photo, at least it looks like it is definitely him, because remember, the trial of had his wife, when she came out, people thought that that might not actually be her. she looked so difference. there were people convinced they didn't put his wife in the courtroom, but somebody who sort of looked like her. >> yeah, that's right. a lot of people thought it was a body double. in this case, that's not the conversation that people are having here with bo. they all do believe that bo xilai was in the courthouse and in the courthouse and defending himself. what is also interesting here, you mentioned things you take for granted in the united states what is interesting is the security presence here. there is a very heavy security presence all around the courthouse. yo wow thi you would think he would potentially have angry mobs coming out to lynch him and that's why you have the security presence here. but in fact, in china, it is the opposite. the security presence is in place because bo xilai is so popular. he has a lot of supporters who have been coming here, basically, you know, showing their support, but at the same time anytime we try to talk to them or other journalists try to talk to them, or even a man on the street, they get whisked away by the police. a different situation here. and this highlights how the government is very sensitive about the fact that he has cultivated this image for himself as a man who is a champion of the little guy. it is another reason why people think the trial is going to move ahead very quickly, that it is probably going to finish up in another day or so, just because the government will want to get rid of this trial, move forward so they can focus on policy issues and really tackle some fundamental issues facing this nation. >> thank you, eunice, joining us live from jinan, beijing. little bit of news back here at home. if you're a tennis fan, you might have -- might be a little happier. time warner cable saying it is going to offer a free preview of the tennis channel during the u.s. open tournament to its customers because, guess what, they're affected by the blackout from cbs and cbs carriers. but live coverage won't be available. >> drama. >> little bit of drama, little bit of tennis, but not the full thing. you get all the first rounds. >> people say that cbs should have had this contract expire not in the summer when there were things that would have gotten everyone much more up in arms about not having it. nothing that anyone is missing. >> you think this is bad or good for cbs? don't you think cbs wins this anyway? >> content always wins. but i'm saying he made that point, it would have been better if the contract had -- was going to last when home land returned or nfl football would be on or something that beth would hapeo up in arms about. officials in three states pushing back against the federal government's attempt to block the proposed merger of american airlines and us airways. a florida, texas and north carolina say the combined company would benefit their local economies. the three states are home to large hubs for america and us airways. >> how do you feel? >> it reminds me of the sirius xm messing around. even with at&t, t-mobile, i thought that was stupid. this one, do you think they should get together? >> i always thought this would happen, i feel sort of like, you know, the barn door already has swung open. a little late now. >> i wonder whether leaving them out there means they just fall apart and die or they actually, if they were together, this he create -- >> you know the key stuff they give out, the combined airline would control a huge percentage of flights out of ronald reagan airport. the bure cat bureaucrats were . >> they didn't use that antiquated whatever it is, that rule, that they use with at&t and t-mobile. >> 4 to 3, 3 to 2. >> no, the name. the highsenburg principle of uncertainty. >> you're watching too much "breaking bad". >> no, no, no. i only know -- don't do that to me. i only saw him call himself highsenburg once. is that his name with two-call? >> the fact you're still talking about it means you have not seen enough. >> right. >> you were first season. >> first season, episode five. >> one successful businessman's proposal to reduce regulation, and increase jobs. first, though, let's check in with the weather channel and jen c ca carfagno. >> the moisture, the humidity, the muggy is back today. storms may fire bag across portions of new york, pennsylvania, overnight tonight, continuing. could see severe weather. damaging winds, hail the main threat. not a widespread threat, but it is there. we're watching for lightning and thunder too across portions of the northeast, back to the midwest. in the south, more rain continuing this week, especially in georgia, florida, across the panhandle area and down into mississippi and alabama too. but we have some changes coming to the southeast. got to get through the next couple of days and high pressure building in beyond that. and dry weather. the sunshine returning to a good chunk of the south. monday looks phenomenal. just a heads up planning ahead, monday is your day, right across to the southeast. storms will continue in florida. the forecast for temperatures, summer-like weather returns to the upper midwest. temperatures warming back up mid to upper 90s through the weekend. minneapolis, for you, chicago, upper 80s and close to 90 yet again. our wildfire story continues in the west. it is hot, dry, more than 50 fires burning across the west and a number of them continuing to be below the 50% containment. in particular, watching the beaver creek fire. this one in idaho. we'll have more favorable weather conditions. temperatures in the mid-80s. today, tomorrow, a chance for showers and thunderstorms. shifting winds with these storms. and dry lightning could always be a concern for sparking additional fire burned at fire areas. we have got right now a dry forecast for you. things will change a bit through the next couple of days. we'll see more moisture coming back into the area. this is good news for the fire fight here in the u.s. that's a look at your weather forecast. i'll be right back right after this. right now, 7 years of music is being streamed. a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. time now for the executive edge. daily segment focused on giving business leaders a leg up. wall street journal reports the s.e.c. is set to propose a rule dealing with ceo pay disclosure. this is required by dodd frank. it would force companies to publicize the pay discrepancy between their ceos and their median worker salary. what do you think? >> started -- i was going to say, well, it is just disclosure to let you know. then i read what the critics -- what they're saying the problem is. and here in a nut shell, they haven't described what employee sample you would use to get the median pay. you have to create a sample. there are multinational global workforces that are paid in a lot of different ways, all different -- you to include stock options and pension benefits. they're saying for big multinationals, it would be very difficult to find that median and all you're finally doing is saying -- you would say, the ceo is making 20, 30, 50 times what the median employee is. well, it is interesting, the most interesting thing i saw is whole foods ten years ago put a cap on its top officers, can only be 19 times the average -- they didn't include stock options or pension benefit. this would include that. but how many times do you see a ceo makes what looks like a reasonable in your view a reasonable salary and then has, you know, makes $60 million in stock options. >> you know the back of the milk carton, i don't care about what the ceo makes versus the lowest guy or the median pay. i want it to say, this is what he made, this is what the stock did in the last year, this is what the revenues did, and then show me the comps and i want a nice little box so i can see what happened and i think that is a much better way to judge whether the pay is fair, than versus when it is lower. >> this is why certain people in media don't like you, you sound very reasonable. >> thank you. >> i think it is meant to feed into class warfare. it is absolutely meant to divide and -- >> you know what it came from? it came in menendez. i've seen menendez on tv, someone talked about marginal tax rates, he didn't know what a marriage nall marginal, how that differed -- some of what they know and don't know about normal things would blow your mind. this stemmed from when a lot of the financial firms got a lot of government money or became part of the government and then you were allowed to talk about ceo. now they wanted to do it. but the proposed across the board for every firm, they do it in europe. >> that's a reason to do it. >> yeah, exactly. in this case, the worst we're talk about is disclosure to allow boards and shareholders more information about what they -- >> i'm not against information. but i -- >> that piece of information is as useful as the type of -- >> we don't necessarily want to -- that might be better. only are have to do the ceo. this might be onerous and more -- this next thing we talk about, it plays into this, businesses are burdened with a lot of stuff right now. >> a must read op-ed in today's journal by tom stemberg, on cnbc frequently, on "squawk box," he's calling on congress to reduce regulations that he argues are killing jobs. stemberg hails legislation proposed by independent senator angus king and republican senator roy blunt. they want to create a bipartisan regulatory improvement commission, charged with recommending cuts in the regulatory regime, similar to the defense-based realignment and closure commission created in the late 80s to reduce the number of military bases. he writes in 1986, we founded staples in large part because of what used to be an enormously productive american financial system. the system that fueled entrepreneurship in 25 years ago is now being regulated to death under the dodd frank financial overhaul, which requires as many as 398 new regulations. the next staples and its 50,000 jobs may not happen because of this burden. we heard this from founder of home depot as well. >> ever since the recovery has been, you know, not up to par in a lot of people's eyes we have been seeing this. welsh, three or four yoears ago >> every regulation. some of the old regulations already on the books should be viewed with the prism of how they're affecting job creation. what got my attention yesterday, gallup's numbers for unemployment, they're more volatile. they had a much higher number than what is being reported each mothe month. i would hate to see unemployment go back up at this point. work is not done. we need it make it easier to create jobs. >> tom says, i don't know enough about this, he says there is -- requires 16 million hours a year for vending machine and restaurant chains that they must do to comply with new food regulations each year. 16 million hours. can you believe that? >> there is a license that magician owners must spend complying with -- >> magician. >> magician owners. >> magician owners? >> if you're a magician, you need -- there is some regulation about if you're going have a rabbit disappear. if you have a rabbit disappear in your act, which mandates you spend an actual fee, surprise inspections and there is a whole rabbit disaster plan. >> they cut, like, young women in half. you want the regulators around. you don't want something to go wrong there. >> i want to protect the rabbits. >> that's a bad example for me. magicians need a little -- >> i love magicians. >> if they mess up, bad things happen. people disappear, get cut in half, they drown in chains and -- >> most of it as, as max and henry like to say, it is pretend. >> a new report suggests the average american household is earning less than when the recession ended four years ago. the research suggests u.s. median household income adjusted for inflation has fallen 4.4% in that time to $52098 a year. everyone is worse off except for those who are 65 to 74. >> that is actually a point i have tried to make on this program and were defeated. >> you tie it to some type of income disparity and the growing income. this is all viewed through -- where you stand depends on where you sit. and most people would say this has been such a subpar recovery, because of an activist government that it has hurt the people that they purportedly are saying that they care about. and on the front end of all the programs, this is why they're doing things. they don't ever connect the dots to see how they're hurting their efforts. >> what is astounding about the stats, when you adjust for inflation, in a time period when we had very little inflation. >> right. >> i think -- it does suggest that especially when you talk about the kids, 18 to 24-year-olds, it is bad. >> if a lot of the recovery that we're seeing is in asset values because of the fed and quantitative easing, the people that are going to benefit from that are going to be the people that have assets. so it is just -- if you don't -- if you don't improve the underlying economy, and the jobs picture you can't help everyone. if all you're doing is helping people that have 401(k)s and people that own stock and real estate, that's the way it is going to work. >> you pass laws that make it more expensive to hire like obama care or raise the minimum wage, that hurts young people dramatically. >> simple cause and effect for how it is happening. people at the high end are hogging more of the overall income, that's not simple enough to explain what is happening here. >> i wouldn't dissuade you of that view. we talk about minimum wage. you don't necessary necessarily think that's t think that's wait to go either. >> this is why the huffington post writes about you, from a negative. you do sound reasonable at times. >> i can't -- >> not all the time. no. not under any means, but okay. >> coming up, why the markets were so confused by yesterday's fed minutes. did you see the intraday chart from yesterday? up, down, all over the place, crazy. what you should expect in today's session. "squawk box" will be right back. i hav e low testosterone. there, i said it. see, i knew testosterone could affect sex drive, but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number. [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are or may become pregnant or are breast-feeding, should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. in a clinical study, over 80% of treated men had their t levels restored to normal. talk to your doctor about all your symptoms. get the blood tests. change your number. turn it up. androgel 1.62%. good morning. welcome back to "squawk box." i'm joe kernen with andrew ross sorkin and michelle caruso-cabrera. potential buyers have access to trial data on a new cancer drug, potential acquires include amgen, a hurdle was holding up deal talks, which you can see on the chart, when it was disclosed. women's wear daily reports, they get a lot of scoops, andrew, don't know why, but they're reporting george zimmer is trying to put together a team to buy men's warehouse. one analyst tells the trade publication it is obvious the retailer's founder will make an offer. zimmer holes 3% to 5% of the company and there was a time when i said women's wear daily, but i don't say that anymore. >> it does a great job. they get a lot of scoops. they know the business. >> right. >> let's show you the morning markets. the big volatility -- >> the shmata business. >> the shmata business? >> if you're in the fashion industry, it is the shmata business. >> shmata ball soup. >> does that mean rag? >> a voice in my ear told me that, holly hunter. >> do you put more sal tetines your shmata ball soup. >> i do. >> a lot of people just eat the shmata. >> right. >> my father was in the business. >> the shmata business. >> the soup business. >> he got you the job at the new york times. >> absolutely. >> a positive open right now, would open higher by 30 points for the dow, the s&p by 2 1/2, the nasdaq by 9. higher across the board. over in asia, things stabilized, so and so. shanghai lower by .25%. hang seng higher by a third of a percent and nikkei lower by half a percent. the price of oil, wti higher. brent at 109.6 per barrel. the ten-year yield, this has been the problem. we're now lower in the price of the ten-year by more than an eighth of a point, a quarter of the point in the yield at 2.92%. what is your new rule of thumb? >> 100 dow points for every ten basis points. a tenth of a yield points. i'm not talking about basis points. if it goes, for example, if it goes between 2.9 and gets to 3, i think it is more than 100 points. >> me too. something psychological. >> we have given back -- getting to a point where we're in that -- where that first correction got us a couple of months ago, back to where those levels are. >> like a 4% decline. >> if only we had someone that knew something about the markets to discuss supply and what is there and the resistance level and support level. >> want to do the dollar in gold first? >> i wish for it. there are thousands of companies in the s&p 500. >> really? i heard somebody we know said that once. >> someone we do know. but in some of the averages, there are -- i think -- aren't there more than 2,000. >> some 1500 that include smaller stocks. technically there would be a thousand and a half. >> i wish we had an economist that wore glasses to talk also with alek young. morey harris is on our -- morey harris -- >> good morning. >> chief economist at ubs with us and alek young. i'll start with you. i think yesterday the market seemed like it wanted it to trade up, but then something about those minutes came out. you still attribute each micromove that we see with the fed, is that what is dictating all the market moves. i guess it would with the thin trade i trading. >> that's fairly true. the fed is unable to send any kind of consistent message about what they are up to. they're ambivalent about the outlook. the economist who followed the fed are ambivalent about the outlook. and in those circumstances, there is going to be, you know, wide difference of opinion. my own opinion is the fed still is going to taper starting in the fourth quarter. but the way they're talking right now, it could be a tiny taper. and hardly enough to make a lot of difference. >> one question for you. and then alek. when does the ten-year or yields around the world, when do they stop responding to everything the fed does in terms of tapering by going up. and when do they just start going where they should based on economic activity and economic growth and what they use? are we getting high enough now to regardless of what the fed does? they might stay where they are, or rates might come down based on the economy not being that strong? >> the studies of qe said that it was worth maybe 100, 110 basis points on the ten-year. we have backed up that much and a little bit more. it seems to me the markets are rationally b lly building in, t is some unknown pace, but over the next year, you're not going to have your qe anymore. insofar as this is built into the buying market already, the markets have already taken the big hit on this. >> what happens to the stock market when the fed really does start tapering and the ten-year doesn't go up. in fact, even if it goes down, then the market -- >> you milwaukeeght get a rally >> does something like that happen? >> there are so many moving parts, it is hard to say. you may get -- the problem now is nobody knows when it starts, the pace, i think it is way too early for the stock market to start rallying on, you know -- >> my guess, when my kids are going to the doctor, it is like it takes three weeks to worry about the shot. they worry about the shot and leading up to it, the day of the shot, and then the shot is done, and they're, like, that was the shot? you spent the last week worrying about it and could it be the same thing? >> i think we'll get -- right now, when do we get the first move? most people think september. maybe we won't get guyett quite as much. once they're comfortable with the pace that the qe removal is going to take, then you set the stage for the rebound, the relief you're talking about. >> i come back to the basic question, we think a lot of people went to cash because stocks sold off at one point as are bonds, right? there is cash. when people have to make a final decision about where to redeploy the cash, fixed income or stocks? >> i know the conventional wisdom is they'll go into stocks and we'll have a great rotation. the number shows something different. they're buying different bonds, buying shorter dated bonds. these etfs are sucking in billions of dollars. they earn 4%. not cash equivalent. >> in terms of your ability to move and redeploy if you need to? >> most institutional investors would agree there is better long-term value in equities. the public doesn't see it that way. the fund flows don't support that. they dipped their toes into stocks, seems to be coming more from cash. within bonds, selling longer dated treasury bonds but buying shorter dated corporates. not -- don't forget, these are bond investors if they like stocks, they might have been stock investor in the first place. they seem to be trading to safer bonds. doesn't mean they can't move into stocks overtime, but we're not seeing a mad rush. >> morey, you still feel the economy is sort of okay. it would be bad if think started tapering and we got to 2%. you don't expect that, that the economy is weaker than we think now, do you? >> i think what is important is you're probably going to see the job growth at around 200,000 a month and that ultimately the fed's goals are more about a labor market than they are about gdp. they keep revising the gdp so much, you don't know if you're at 2 or you're at 2.5. but when those unemployment claims stay relatively low this doesn't get revised. >> good. morey, thank you. appreciate it. thanks for coming in. i won't ask you this question. when you were a kid, you would rather have a shot in your arm or in your -- do you remember? i never wanted one -- that seemed much worse, didn't it? >> i think arm. >> it seemed much worse. he tried it. >> i never liked it when they took the blood from my finger. i thought that was the worst. >> you get any shots in your -- how about you? >> how many vials of blood. >> arm. i hate shots so much, i would run around the doctor's office they would have to chase me and i would kick and scream. it was a scene. >> doctors, some doctors prefer arm, some prefer ass. >> i think i'm an arm. >> i wouldn't let the guy -- >> you got that achy thing going on when you -- >> yeah, yeah. >> it would stay with you for a while. >> we have to go. you probably heard about big data. it is becoming a buzzword in many industries. is it shaping up to be a big bubble? we have one opinion on that question next. 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[ male announcer ] it's time. time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. it's time. big data has been getting a lot of buzz. tech buzz during the last year. some see it as the next tech revolution. others see it as a bubble. big players, particularly google are upping the ante and taking it to the next level. it is called deep learning. many consider it to be the holy grail of who the whole big thing is all about. joining us from las vegas, derrick harris, senior writer. haunk f thank you for joining us this morning. for those of us that don't know what deep learning is, we have a hard time appreciating the significance of big data. but on the deep learning end, what is this all about? >> at the risk of vastly oversimplifying it, deep learning is a way of building computer models that are as accurate now as we can get at recognizing the features of various things, what they call multidimensional data, it can predict that something -- it can look at the futures and recognize it. i'll give you a -- >> reading the notes here, there is a great definition here, when computers are able to learn and grow on their own? is that possible? >> to a degree, right? it is based on a concept called neuro, but based on how the human brain learns. my daughter looks at enough pictures of castles in disney movies, she starts to think that casinos are -- she has the features right. >> one example, youtube has it right, it featured where effectively youtube learned or google learned to be able to look at cats and dogs and figure out what a cat and dog looks like every single time, for the most part. >> they built a model that could decipher things. >> how does it know it is a cat? >> it wouldn't. someone has to go in and train it to say it is a cat. >> i'm counting on the laws of sing latulairity singularity, when machines know a thousand times as much as all of human knowledge, which will occur at that point, that we have no idea what the future might bring when things are that smart. and what they're going to be able to do. i saw someone, a neuroscientist, and anyone in the current milieu will always underestimate what is possible, because they don't know what can happen. but he said the brain can never be replicated because it has its own revolutionary copy right protection. >> i heard the opposite. what we're trying to create is a unified theory of the brain. and once we have that, the machines will run like our brains, but only much faster pace. >> i want it to happen. i faster pace. >> i'd like that to happen. i have a grid picked out for my family. is that just a pipe dream, do you think? >> actually, google brought on the goodfather of the singularity teary. >> they have a university called singularity university, which i have been to. >> what google is doing is work on super computers are doing to simulate real life activity like trillions of neurons at a time. >> it's only 2013. we're talking kuring all disease by 2030. if you look over the history of the earth, you can pick out these water shed moments. we're on track to do this, theoretically. have you read this, singularity is near? you need to. >> i am saying, listen, we're on the cusp of being able to predict let's say or treat diseases i think very, a lot more accurately based on big data, certainly. >> again, i say that's -- >> real quick, before we go, what you see happening is we have all these companies coming on to say they know how to analyze big data better than anyone else. google seems to be the only one out with this newark texture for how to do this from a machine made way to do it. do you see others doing this? how far ahead is goggle relative to the rest of the world? >> there are some things they are working on. gockle has a lot of very smart people. this stuff takes a lot of computing cores and a lot of ability to program things that run across hundreds of thousands of cores. google is one of the companies with the brain power to do it. that's yits on the forefront. >> thank you so much, derrick. appreciate it. have fun in vegas. we do hope the machines are noise. >> they think they may create a machine that will do these things, we don't know it yet. >> is it malev lent? will they not need us anymore? still to him co, hunter killers? -hks, do we send someone back in time to make sure the person we just had on was never born? i don't know. we will welcome fovrm former goodman sax international, the global markets, growth in china and much more once "squawk box" will be right back. 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[ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are or may become pregnant or are breast-feeding, should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. in a clinical study, over 80% of treated men had their t levels restored to normal. talk to your doctor about all your symptoms. get the blood tests. change your number. turn it up. androgel 1.62%. >> good morning, welcome back to "squawk box." are you on cnbc. michelle caruso, cabrera is also at the table, becky quick is on vacation. take a look at the futures after what was a roller coaster day, this morning the dow looks like it will open 15 points higher. the s&p higher t. nasdaq close to 9 points higher. let's get you through the morning headlines this morning, retailer sears are out with quarterly numbers. sears lost $1.46 per share for the quarter. the taken says an increase in promotional activity resulted in what they are calling a meanlingful jump. u.s. comparable store sales were down 1.5% from a year ago. of course, many of the retailers have been hit across the board. also, we should say in the spotlight, dow component hewlett packard gave a downbeat forecast for the full year. ceo meg whitman will be a special guest at 9:00 a.m. eastern time. also signs of improvement in the widely watched august purchasing manager's index rose to 50.1, which indicates an expansion of manufacturing activity, they had been contracting in prior months as the economic growth rate fell to the slowest in two decades. >> also, chinese politician is denying taking bribes from a development corporation as this trial is getting under way. they accused him of a scandal in decades, it's pitted, the social programs against the, what we're calling the capitalist leading stance taken by the leadership in by a jenning. it is exposed to business in the communist party and the trial will last two days. chinese state broadcaster says the verdict will likely come in early september. i do want to talk to formats here. you know a little about china. don't you? >> the formats is here, under former politician of a lot of different stripes. now you are a private citizen. actually, after hearing you talk on the show, you've come around to a lot of the free market views. it's good. you got out of the beltway for a while. >> should we tell people what we're discussing? >> the most recent thing i saw was the current leadership in china, suddenly it's very maoist again, the whole trial might become, they might lose their will really to make a big deal out of this since they're embracing the big thing he was talking about. >> i think it has been about the focus has changed considerably. one, they're trying to improve, from the foreign investment, because wages are going up, they're looking for higher end investment. if they want to get higher end investment. they have to have intellitual property. >> you saw the president is talking about the anniversary. suddenly, he's made a concerted effort to be much more. >> you talk about mao a lot more than the previous guy. >> i think he does that, in part, because it strengthens the legitimacy of the communist party t. policies are much more plo-market oriented. they're focusing. >> in here. >> and there. with the current administration. >> another geopolitical situation. opposition forces in syria, asking for chemical weapons inspectors to verdict the region hit by an alleged chemical weapons attack. may have to bait as al-assad's forces continue heavy development around damascus. if found true, it would be the worst chemical weapons attack in the country's history. nbc's richard engel will join us in just a bit in the latest of what is turning out to be a horrific story. joining us to talk about this egypt unrest and how it can relate to your money, bob hor vats. we introduced him. >> you didn't read joe. >> oh, i missed it. i need glasses, i definitely need class ifs. i know, i don't want to wear them on tv. >> they look good, though. >> they're red cat eyes that they match that dress. if you put them on, you'd be red, white and blue. you had them on the other day, were you former under secretary for economic energy? >> so you are under there. you were like a vice chairman or former champ of some part of goldman sachs. never the top of any of these things. >> to be secretary of state you can be on top. >> you were almost secretary. >> i was the economic guru for hillary. so it was the kind of job i wanted and actually had some opportunitys to make some progress on issues. the middle east is one area where we tried to make progress. we didn't nearly do as well as we thought we would do. largely for the reasons this is an area that's deteriorating as we saw yesterday. egypt is very, very pom larized. the whole region, itself, is in trouble. it does have as you suggested an impact on the u.s., because it impacts the stability of the energy markets, not that those companies produce energy. they have a widespread impact on saudi arabia and the gulf. i think the gulf an saudi arabia are more confident about the government in egypt today than they were under the morsi government because they didn't like the brotherhood. they felt they were doing a lot of things that interrupted the flow of their relationship. now they feel more comfortable with the military government. they think it will bring stability. with stability. >> saudis have to deal with their own internal problems. maybe the rise of an islam ec. >> yes, they were. dithey did not like the notion that the muslim brotherhood could have been interfering. >> if it wasn't for watching the, what in this, you know, we put our values on the way other regimes act around the world and suddenly, you know, we do seem to do it selectively at times, right? >> we do. >> but in the long run, wouldn't we prefer a secular egypt that had less involvement of islamists than the muslim brothers. >> they did win the election. we do believe in democracy. on the other hand, we did express more and more concerns about the lack of freedoms that the. >> the dismantling of democracy happening on a day-by-day basis. >> freedom from minority religions. those were of major concern. the big concern for the egyptians is they want more democracy. they want more jobs. the part of the problem that the brotherhood has, it didn't create a lot of jobs. so the average egyptian feels unempowered. >> we focus so much on the vote. it is my understanding of the military, we don't know how much do they control of the economy? >> they control a lot of the economy. >> more than half? >> i would say the conventional number is 40%. it could be considerably higher. i have a major role on the economy. no question about it. >> so you have a problem with economic freedom as well? >> the economic freedoms are not of the military control, of the economy, for the average egyptian, low income egyptian, who is pretty well ed kated. they don't have opportunity. the way tunisia and egypt. >> were all about the economy, absolutely. >> and giving people opportunities. if this government will give people jobs that, will help stability and in turn military sfaeblt will create investment. >> we will keep discussing this. coming up next, education secretary arnie duncan talks affordable education. then a revenue slide for tech bell hewlett packard the company trying to deal with a declining pc mark. we go through the numbers. cnbc-cfo economy numbers on the state of the economy. we have ceos coming up. "squawk box" will be right back. . . >> welcome back to "squawk box." president obama helping the middle class with affordable education. joining us with the details, u.s. secretary of education, arnie duncan, thank you for joining us this morning. >> good morning. thank you so much for the opportunity. >> let's walk through this so the audience understands what the president is about to layout. there is a lot of people who have questions about whether we can reform education, whether we can make it cheaper, whether we can actually improve the situation when on average i think the number right now is that college graduates are coming out of school have $26,000 of debt. how do you fix that? >> well, first of all. at a time when going to college has never been more important, unfortunately, it's never been more expensive, everywhere i go, the grocery store, middle class folks are starting to think college isn't for them. it's a risk. >> how do you fix it? >> we will try to do a number of different things. first of all, we will be more transparent around information, where can young people get good value? where do they have good graduation rates? are they doing a good job? ultimately, we want to help move financial aid towards institutions doing a fantastic job and be successful. >> you will be creating ratings system? how is that ratings system work? because i can tell you that u.s. world reports, u.s. news and world reports created a rating system two decades ago. some argue that system ruined college education because it created all sorts of perverse incentives about how these statistics were created? >> i think that's really, really important. we will do it thoughtfully, we will go across the country. the president and i listen to people. you want to look at graduation rates. are they improving or not? are schools doing a good job of serving the middle class and low income students? what happens with job placement at the back end? i think what american families are looking for is security. they will have a chance to go to college and won't be burned by debt in the back end. >> what do you say to folks, conservatives, whatever you subsidize something that everybody already wants, it only gets more expensive. one of the key reasons why the cost of a college education is rising so rapidly, is because the government subsidizes it so sharply. >> i think it's much more complicated than that. for me, it's about shared responsibility. we at the federal level need to invest to make higher investment affordable. we can not do it by ourselves. states have to invest. too many states have walked away from higher education. >> have subsidies caused a rise in the price? >> absolutely not. finally, universities have to do a better job of containing their costs, focusing not just on access by completion as well. so when all of us are working together at the federal level, states and universities, we're going to see good things happen for young people and for the middle class. >> one thing i missed in going over, this is bob horvatz the emphasis on stems and mathematics. you emphasize the importance of enables universities or encouraging them to produce results. the question is, are they plowing results in areas that will enable kids to get good jobs and science technology education, mathematics is something this country needs. is there going to be a special emphasis on encouraging people to take courses in that area where there is a lack of stills i skills, a lot of companies are locking for people, in many cases hiring them from abroad? can't we do a better job there? can't the government do more to encourage people to take those courses and succeed in those courses? >> we feed to, obviously, as you said, absolutely, correctly, so many jobs in the future in the stems field. yes with eneed to focus that in college. there, it's too late. we need to look at the k-12 system as well. the president is challenging us to recruit 10,000 stem teachers so in 3rd, 4th, 5th grade, that i have access to teachers passionate about teaching that content. if we wait until college with key do some things. we have to look at the continuum, start with our babies. >> is there an argument if you offer a pell grant, perhaps a true capitalist would say you should offer more money at a better rate if you are going to go into stem right now. it, to the extent the country wants to promote that as opposed to being an english major, you know, i like a lot of people are in this majors. is there any conversation about how do you incentivize students to do that? >> to be traveling the country and listen we heard those kind of ideas. i think it's important we incentivize universities to not give access people on pel grants but make sure they are graduating. they should give more resources. if folks are doing a bad job, graduation rates go down year after year, i'm not sure that's the best for the taxpayer or the family. >> i'm all through the k through 12 emphasis on stems. it's not graduation rates, it's what they graduate into. what fields and that strikes me as something that would be very important for this program and for k through 12 as well. but we're simply not turning out enough people and whatever you do, that is going to be critical for the future of this country. so i applaud the emphasis. it seems to me incentives will be ned to get more people in that field. >> mr. secretary, i know you got to go. is there anything in this program that you think fundamentally bends the cost curve on education? >> we want to dramatically reduce the cost curve and make sure people aren't burned at the back end. we see many institutions doing three 84 degrees. >> they go in high schools, that changes it? >> we node to build best practices, create incentives. we have to significantly over time redo us the cost of college, make sure families have that security, that they work hard, they will have access to higher education. they will not be burdened by debt in the back end. >> thank you for joining us this morning. it's a program worthy of conversation. we hope it succeeds. >> thank you so much. coming up, some yahoo will have them shouting yahoo. earnings from ab ambecrombie and fitch. we will go lou the numbers next. 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[ static warbles ] starts with freshly-made pasta, and 100% real cheddar cheese. but what makes stouffer's mac n' cheese best of all. that moment you enjoy it at home. stouffer's. made with care for you or your family. . >> welcome back to "squawk box." the dow opened 15 points higher. the s&p 3 points higher t. nasdaq up about ten points w. rewatching abercrombie and fitch t. retailer reported a quarterly profit 12 cents below estimates and revenue well short of consensus. ceo mike jeffreys saying the quarter was more difficult on weaker traffic and soft result for women's apparel, comparable store sales fell 10% during the quarter. >> when we said higher going into the break, i guess they meant a higher than a year ago is all i can. >> popping meant a like exploding air coming out of the -- it was used in a way that well, i use popping. >> the bubble popping. >> i think what they may have meant a. >> you see that slide. >> i used to boy a lot of abercrombie xargo shorts. >> khakis? >> no, my wife says ixnay. >> it's not allowed anymore. >> it's like when you have negative gdp growth, it was trading higher in a negative way. >> all right. yahoo raising some eyebrows this morning. especially at google. they say web traffic for yahoo surpassed that for google for the first time since may of 2011. yahoo had 196.6 million unique monthly visitors compared to google's 192.3 million a. notable when for marissa miary former googler who made a number of changes at the struggling company. they've acquired a number of site, tumbler numbers were recounted separately. ry expected to reveal a new logo in 14 days. >> okay. so we have been talking all morning about how it's possible yahoo own sites had more traffic than google since that may north dakota no sense for every day. >> we use google many times a day. >> if you are shaking your head saying you use google all the time like i do, frankly the key to understanding what is going on the metric is monthly you fiocco visitors. visitors only counted once in a month for the matter how many times they return. that's the critical piece. i can go to goggle 50 times, it's doesn't matter, with 67% of market share in june, doesn't help. also, these monthly comp score numbers don't include mobile traffic. if you are on your iphone or android, guess where you are going most of the time, google, which certainly would skew those numbers highner google's favor, an argument can be made the numbers could have been high fer the traffic from yahoo's big acquisition kirn weren't counted stratly, meanwhile, with eshould note microsoth, facebook and aol round out the top. >> that was complicated. >> it was. explains it a little bit. >> all right, robert horvatz is a former chairman of goldman sachs. he is international guest host of the hour. >> a man of mystery. >> i want to re-create the conversation you and i had during the break when you sat down. you were complaining about the number of lobbyists. you had stats in washington. you had hadn't been to washington for a number of years. tell us what your insights were. >> it does trouble me there is a lot of lobbying going on, money is playing a much greater role in washington. i was in washington 25 years ago t. role of lobbyists and the role of money and compluns of money was considerably less then. it's in part because the government has gotten so much bicker. in part because lobbyists and government really have very specific goals and they influence the way laws are created. it's a large measure because various interest groups, sometimes for legitimate reasons, sometimes not, want to get their particular point in the law. so if they become more complicated. it's a self reenforcing front. >> if we had less government, we would have necessary e less lobbyists. >> i think we need simpler laws. >> this is physics. if we had less governments. >> we want the government to do more government protection. we want more regulation. >> you agreed with me during the break. >> i agreed the laws have gotten much more complicated. the troublesome factor is for the average american, they see government as a sort of on inside game. >> because of this? >> because to a large degree it is. they feel that the role of money and the role of this inside game give them the average american less of a role. >> what percentage of the senate become lobbyists? >> roughly, half of former senators engage in lobbying of some kind, about a third of the members of the house. >> they do nothing when they are senators. >> that's another matter, joe. >> totally inoffensive. i don't think they suddenly become offensive. >> that's another matter. if you are sitting out in kansas, you think washington is doing things that essentially serve the interests of people in walk, it's very corrosive of government. the role of money for the average citizen is troublesome. most countries don't have these hugely expensive schedules. >> you pass a huge health care law, then, of course the entire health care industry is going to hire lobbyists understandably to understand what is going on and influence the outcome. >> or anything else, the average person doesn't know what is the low. the average congressman doesn't know what's going on. >> do you think nancy pelosi ever read the health care bill? >> first of all, no congressman has read them in full. they're very long. sometimes they're put in there at the very last minute. >> will you work for hillary if she wins? >> i support hillary. i enjoy her, i support her. >> in your mind she is running? >> she hasn't said she is. if she does run, i'd support her. she demonstrated that. >> she when to the welzly. >> i do know that. she did a great job at state. >> because you are an alum together? >> one of the things we were able to do, hillary under her leadership was much more supportive of the business community and the private sector. >> according to her choice, what turned out. >> largely because we see a lot of jobs the prochtability from export markets. one of the roles we played was to support american companies that were engaged in disputes. >> did you see the last time biden went up against hillary. he got like, this is, i don't want to see this because i -- >> you feel bad for him? he's going to get beat up? . >> not just beat up, it would be sad someone who served this country. i think he would get absolutely shellacked. i think he'd get 4 votes to 15 million. >> hillary's more robust than four years ago. i will not get into politics. i think she would be a good president. the business community would love her. >> if you heard this morning, packard scales back ref now growth promises and shufments some executives. then cfos unite. council has been called for session with "squawk box." we got tech, the global economy and how rising interest rates are affecting business plans for the future, all coming up. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. . >> welcome back to "squawk box." the latest initial jobless claims. economists are looking for 330,000 claims from last wooekd week, the u.s. isn't the only place where government bond yields are rising. german bund yields touched their heist. sentiment has been impacted on concern over the fed's next move and better than expected euro zone business activity. goldman sachs is evaluating a technical glitch that caused a flood of option trades earlier this week. at the same time sec officials are looking into whether the problem violated any rules. estimates of how much all of this will cost have varied widely from a few million dollars to hundreds of millions of dollars. disappointing result, abercrombie had second quarter estimates by 12 cents. revenue was well short of consensus. same store sales fell 10%. you look to the right of the chart, it looks like it's fallen off a blip. joe. >> serious opposition demanding the united nation's inspectors investigate alleged chemical weapons attack. nbc chief correspondent richard engel joins us. this is the last way we want egypt to fall out of the headlines, richard. what can you tell us new that we didn't talk about yesterday? >> reporter: well the syrian rebels aren't the only ones asking for the tr u.s. teams to conduct immediate investigations. the u.n. teams want to do it, themselves. instead, they are in damascus, a few miles away from where these alleged atrocities took place and they are holed up at the four seasons hotel denied by syrian government authorities to visit these sites to collect soil samples, to do interviews. 35 countries are asking for u.n. investigation, including washington. we still don't have a very clear death toll. the estimates range from hundreds to well over a thousand. syrian rebels say they think it was a series of chemical weapons attacks launched on about ten different villages to the east and north of damascus. of course, the syrian regime says nothing happened. it didn't get anyone, this is being invented by the rebels. >> so, richard, considering that, you know, the inspectors just got there. some people are saying why? you know, i guess just because you had asked the question, why now? maybe they took that into account that that could give them plausible deniability. but do you know, is it possible that the rebels have access to this and could have done this as a way of tarnishing? is that possible? >> anything is possible. we've spoken to chemical weapons experts. they say that the scale of the what is allegedly happened here would suggest not an improvised chemical weapon but something that was weaponized, something that was quite sophisticated. not something that a rebel movement could cook together. it is possible. we have spoken to intelligence analysts in the past. they believe that rebels have been using or experimenting to try and use toxic gas, chlorine, cyanide in the past. it's not the easiest thing in the world to do, to unleash this kind of atrocity and to do it in a coordinated way and to do it in a coordinated way, in multiple villages and have everybody in on the conspiracy seems challenging. >> can they keep these people held up at the four seasons without eventually it becoming very clear that, you no know, they're dock that for a reason. they did do that? >> 5 miles away. >> you don't see bodies. >> 4 miles away. >> you don't see bodies without any wounds. they don't just appear. how long? it's like a charade. >> well, you know, people talked about these events being stagedment we saw images, some of the images broadcast on tv are somewhat sanitized compared to the raw najs out of syria. we have seen rows of infants and todd lers dead, still lying under blankets. you can't fake that kind of thing. you can't line up 21-year-olds and tell them to play dead for 20 minutes. while they're being moved around limp in people's arms. something clearly happened. there are no external wounds, how long can the syrian government keep people holed up at the four seasons hotel? quite a while, because in the past, syrian i syria has been acting with impunity and happens not been punished in anyway. people have already been yelling at syria. the international community has put sanctions on syria. the regime has continued pretty much undeterred. it still has the backing of iran. it has the backing of russia. ilt it still has the backing of hezbollah. i think the regime thinks the threats from france and germany and eastern washington are fairly toothless. >> richard, how do you and your team decide where you go and is there a discussion about you heading there and would you be allowed to visit the places to see for yourself and is that on the, are you discussing that? >> yes, of course, we discuss these kind of things, but if you look at a map. to get to those areas to the east and north of damascus, you would really have to go with the syrian government. you would have to get a visa, land in damascus, show up as the journalist. have the government welcome you in. then allow you to go there. because you have to pass through checkpoint after checkpoint after checkpoint. it's not something we could do different. if we illegally cross in through lebanon or turkey or jordan, we wouldn't have to tra verse miles and miles of hostile territory that would probably take days to get there and the way things are in syria right now, i think the chances of making that trip and surviving it would be fairly low. at this stage we do the best we can. we see if this situation changes on the ground. >> can i raise one question about the russians? it seems to me the russians are key to a lot of this. the united states have been putting pressure on the russians for some time to take a tougher view on the policies of the syrian government. is there a chance now with this set of incidents that we've seen that the russians will now be more willing to put pressure on assad to make the changes are you suggesting to open this up to allow the u.n. inspectors to come in. sound to me to be a key element. without the russian security council and elsewhere, the syrian government is in a much more vulnerable polgs. it could resist. we'll have one less strong allie to support its resistance. >> so far, russia has shown no signs of giving up on its allie in the region. russia feels it's on the right side of history, believe it or not. not just because of the incident yesterday, but in backing the strong man of syria. moscow thinks the tide of history will prove it was right. look what's happening in egypt, having the military come back. many arab states supporting the re-emergence of the strongmen. i think russia is going to decide, no, we're going to stick with our allie. this was a dark period, but our decision was right. >> i'm aware of the russian role. but. >> russia already by the way said that this was the rebels who did this purposely. >> i'm aware of what assad said. >> even if you would. >> the russians run the risk of a fragmented syria. >> they certainly do. i think we have a fragled syria right now. russia seems to be taking the bet that it's better to back the strongman and let him contain syria than to back the rebel movement and have them take over the government. it's a very dangerous play. if these u.n. inspectors are let out of the buffet line at the four seasons and get to the area where they can do their tests, that would only determine that, in fact, weapons were used. they do have to figure out who used them. don't forget, the last time there was a major chemical weapons acrossty that was eventually proven to be carried out by saddam hussein in 1988, it took the u.s. four years to determine exactly what happened and who was responsible. >> richard engel. thanks again for your time you gave us. i don't hope to see you again, obviously, if something hams. >> reporter: thanks, a lot. >> if something does, we really appreciate it. we want to talk to you again. >> reporter: no problem. >> we haven't shown the video, it's horrific that's come out of year. you pick up any paper, the photos are just awful. >> the worse problem is this will continue if nothing is done about it, we could see more of these incidents. this, unfortunately, could just be the beginning, whichever side is using it. they might decide they can get away with it. there is no inspection, that i can do more, which makes this more polarized and violent than it already is, which is bad enough. >> all right. we will make a tough sec way back to corporate news, hewlett packard says hope for revenue growth next year is unlikely. joining us on the latest quarterly results, jim, good to see you. >> good morning, nice to see you. >> well, the software ref now got better in. >> that's right. >> it was a pretty tough quarter, right, the future didn't look so good eitherer? . >> i would say the big thing is the stock price is up 80% year-to-date. people expect a beat in raise. last night during the earnings calm, they kept it in line. it brought in a lot more question, management changes and loss of share in their server business. that's some real concerns, they're making it more difficult for investors to truly believe the turn around story. >> what do you do with this stock? with a huge rise like that? suddenly they're telling you the turn around story that rise is built on is in question. could it go further from here? >> well, i definitelity we will see a pause. you see what that stock did last night during the earnings call, it got worse and worse and then worse as the earnings call progressed. more and more questions came up. you would expect the ceo meg whitman to have the right people in the right place. she made some more management changes. >> is she the right person for this. >>. >> i think so. i really do. people want the people in the right place yesterday and six months ago. they don't want to hear about it today t. stock is going to pull back near term, you asked what you do with the stock? i think people will step aside and wait and say hey up 80% 84 to dakts, let's take a breather. they will set the stage for next year. that's key event. i expect us to come back and talk more about that. >> would you break up this company? this seems to be -- i don't know, there is a bit arguments made this is a troubled company. >> they have tried in the past but have been unsuccessful to do. so i think going down that road is a road unlikely to happen. i think you cut costs and focus on the services area. i think going down the road, a breakup is a road they have gone down before. i don't see a breakup in the works. >> all righty, jim, good to see you, thanks so much for joining us this morning. >> thank you. up next, the cfos of sap north america and t.d. ameritrade on the latest signals. the global economy, how these guys are positioning their companies for success and check out the results of our armchair analyst poll. we asked you at hewlett packard if rules would meet, beat estimates? 25% got it right predicting hp would meet earnings expectations. a programming note, meg whitman will join "squawk" on the street. >> it's jim and carl. >> all right. >> they'll do great but then that will be -- >> you and carl will do a beautiful job. i'll be watching quite attentively. >> all right. we'll be right back. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. it's time. thegood and close. q10. discover the new way to help keep teeth clean and breath fresh. new beneful healthy smile food and snacks. he'll love the crunch of the healthy smile kibbles. you'll love how they help clean. with soft, meaty centers, and teeth cleaning texture healthy smile snacks help keep a shine on his smile. it's dental that tastes so good. new beneful healthy smile food and snacks. every day we're working to and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. a quarter million tweeters is beare tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. how's the health of the economy? here's one metric corporate tax spending, an economic bellwhether. the investment equals a snapshot of economic health? what is the currentt trend? we will turn to our exclusive council in studio. here is the president and executive vice president bill ge ber, from philadelphia, sap north america, joel bernstein, how is it at this point? >> we're still spending quite a bit on technology, it's obviously our core business. >> that's your business, though? >> exactly. we spend a tremendous amount of money on, i think our guys in technology will tell you we are not spending enough. >> goldman sachs is probably not spending enough. >> obviously. >> that was a comment on that situation. >> no. stay away from that one. >> i wasn't asking, can we push the conversation to the us story? i think it will play a huge implication i would think on how corporations are thinking about health care in america. i don't know if you saw what ups is doing. that i are announcing they are cutting off spouses who have jobs, who have jobs that pay for health care. so if they don't, then you are still on the roll. otherwise, it's a major shift, the question is whether other american companies will do the same. they say it's obamacare pushing them towards this. >> we have not made a decision or discussed something like that. so that would be very unique situation. i do ut that we would go down that path. >> are your health care costs rising because of obamacare? yes, why? >> the implementation of obamacare and the different penalties, et cetera, so our costs will be going up. >> are you forced to cover more than you used to? preventative care is now free? that kind of thing? >> yes. >> everything you heard, you agree with all those things sore it different for sap? >> no, i do. we are working to change our strategy right now to avoid incremental costs to the extent possible. generally, i'm in agreement. >> what does that mean? >> well, there are certain policies that you provide as an employer that are too rich, actually, under obamacare. so we have been working to you valuate whether or not that benefit plan continues and how to mieg great to something that's -- >> what are the implications? >>. >> the implications are too rich, meaning that that he can heck that it covers is in excess of what obamacare would allow companies to provide without incurring that penalties or tax disadvantages. >> it's one of the items -- they have complained about, the gold plated ones. i thought if you liked your plan, you would keep it. i guess not? >> you knew -- this was something you could say and not be sued for libel or slander, it was never true. that was one of the things that got me right, right from the start. because that was like a red flag that we're not really talking about this honestly. >> as you know, these laws tend to get adjusted from time to time, every big law does. what adjustments would you like to see if there were adjustments, not complete elimination like some people want, what would be the priorities for you? >> is that a question for me? >> yes. >> you know, we need to evaluate that more closely. i don't think we've fully appreciated what the impacts are to our company are. i think the highest risks are in the lower wage employees and honestly being in the high-tech industry, that is not a major factor for us. >> all right. gentleman, thank you. i am trying to, when you say the law, itself, would not take an employer plan away from you. so that part is true. if you like your plan, can you keep it. you don't have to go with it. but if your employer then ends the plan, which everyone, that was what we were all talking about was going to happen. employers are going to exit and let the government cover it. can you keep your employer plan if your employer ends it? >> i don't know. >> you can't. i'm just saying that that's why that statement was false. >> but you can't keep your plan if you like it. if you like it, you can keep it. your employer might not keep it. that was always disingenuous. >> so one of the things ups is saying on this whole front is because there should be cheap affordable programs out there for potential shous spouses and things like that. >> obviously, everybody has to provide it. then your wife or husband will provide it. >> the critics of what ups are doing are suggesting it has nothing to do with the official cost of obamacare. this is a nice way to cut the costs, in fact, the spokesman made a statement suggesting that their goal was to keep their health care costs flat or actually below where they were before. >> some people are without obamacare? >> that is, there are people that say that. the gold plated plans. >> there is an argument. it will fall by the wayside. >> coming up, reaction to the fed minutes, from former fed head larry meyer. check out the futures, this morning, they're suggesting a slightly positive open. 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[ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids that's right for you, including the lexus es and ct hybrids. ♪ this is the pursuit of perfection. ♪ trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. . >> instead heads gathering in jackson home, a rundown of today's agenda, and fallout from the fomc minutes. existing home sales higher again, will it increase the odds of a september taper? >> why didn't you just go home? that's your home. are you too good for your home? answer me! >> we'll ask s&p economist. >> elon musk planning to ramp up production of tesla model s. he sat down with phil lebeau for a one-on-one interview. >> weekly jobless claims hit the table 8:30 a.m. eastern t. third hour of "squawk box" begins right now. >> welcome back to "squawk box," first on business world wide, i'm joe kernen, becky quick is on vacation. our guest host is robert horvatz former undersecretary at the state department. she was vice chairman at goldman sachs. you don't create options there, do you? >> i never learned that game. >> first, though, andrew ross sorkin. what is your middle name? >> david. >> robert david horvatz. >> what is your middle name? >> joe richard kernen. we have shares at abercrombie and fitch falling sharply in retail trading. they reported 16 cents per share. it was well short of consensus. the cfo saying it was weaker customer traffic and softer results for sales of women's apparel. as i said in the last how far, my wife banned pe from buying those cargo shorts. i think that has a huge roam. she says i shouldn't try to pretend i'm in college anymore. also, retailer sears out with quarterly numbers this morning. sears lost $1.46 of the share a. wider loss than analysts were expecting. they say an increase in activity. u.s. comparable store sales were down 1.5% from a year ago. and dollar tree earned 56 cents per share for the latest quarter over sales earnings and profit margins higher than a year ago. hewlett packard matching wheat estimates. they report a 9% decline. the largest division. a key part of the turn around plan t. company's outlook was disappointing. hp ae nounced it is shuffling to top management ranks. you can see over 7.5% in premarket action. ceo meg whitman will be joining us at 9:00. >> who wears the pants in my house in. >> i wish i could tell you i was wearing the pants. i don't. that's clear. >> it's kind of sad. >> actually, joe and i can agree. >> i can enforce. >> you are saying you will wear the pants? >> i will wear cargo pants. i wear those all the time. what are you allowed to wear then in terms of shorts? >> you have a new love playing pocket pool. so how about an away game? call my wife after the show, you guys can decide. >> check that out. i did not get that. >> away game. that's good. >> never mind, let's get a check on the markets. >> someone else's pocket. >> oh, i see. got it. >> both of you, at least horvatz is laughing. >> that is no laughing matter. stocks closing near session lows. right now suggesting we would have a rebound, not by much. now about 2.9%. again 2.911. >> liesman was laughing. >> the annual jackson hole retreat, steve liesman joins us with more. how quickly can you get back here, steve? >> why do you need me back there, joe? someone has to laugh at my lame attempts at high school sophomoric rumor, which is what you are probably doing out there right now. go ahead. >> look, what happened i think yesterday is interesting. i think there was hope from collarty of the fed minutes. i think they gave us anything but that. just to be clear, they're not designed to be a policy statement and to that extent, i think they were through to a fed that is uncertain about the growth outlook. here are my headlines from the minutes yesterday the committee was split over taper timing, a few members said they should stick to the plan, it might be time to taper. a few members said the feds should be patient. finally a number, less kft about economic growth. notice participants, all people in the meeting. the members are the voters. it's those second and third headlines, the ones to watch. they're very careful about that particular language. so you have the uncertainty about the morning and the effectiveness. finally, will is the uncertainty about the leadership. i went back. what month have presidents typically chosen replacements. here are three examples. in 1987, greenspan was nominated or named in june. per anything in was nominated in october. then again in august. so it could come any time. there is a february and a may in there. so little instruction that can come any time. the one interesting thing it did come a couple days after jackson hole. i think that was in 2009, so there is uncertainty about the leadership. it seems to happen every four years we come around here. it is unclear who will be the next chairman. so add all three up, certainly over the fed policy, the leadership, economic growth. other thing we will debate is the effectiveness, a bunch of academic things on that score. we will have three fit presidents tomorrow? three fit presidents tomorrow? dennis lockhart from atlanta. john williams from san francisco. spanning the country east, middle and west. we are going to try to get some clarity. my personal take for what it's worth is that this lack of confidence in all of these three things, especially policy and the economic outlook is dovish for a taper in september. with a lack of confidence, they may not want to pull the trigger. i want to add one thing, joe, they gave an interview to the "wall street journal" the president of boston saying if you are not sure you should move small or incrementally. i don't think that's what the fed will decide. i think if they move, they will hoff in some large krung chunk. it may wear the day at the fed. >> gildan stern, is he dead? listen, the one thing i came up with a couple things i need. that's why i wish you were here. i would have run them by you. summarize it really quickly. number one, we watch all of this and watch what the stockmarket does, that's what we are focused on. we are below 15,000 now, in the middle of a correction. it's been a crappy two or three weeks, steve. my latest thing is for every ten yield point rise, every hundreth from 280 to 290 on the tenure, i think we are losing about 100 points. my question is -- when do we get to the point where ten years would be naturally based on the economic backdrop of the united states and the rest of the globe and if we do get there, even if the taper talk continues and even if they start, if we see that yield not move at that point because it's where it should be, will that cause if stockmarket then to say, hey, we will be okay. we will go higher? do you think it's 3%, 3.1? what is the number why we would get to where every time we would get scared we don't have another 10 points a yield on? >> joe, i think that's a terrific question. last night in jackson, i met with investors, we had that same conversation. there was an ad advisor for j.p. morgan. we had this very same discussion, what is the right rate? i'd offer there's two reason why yields could be rising. the first would be because of the fed's expected withdrawal from qe. so there is some pop in that. then you arrive at some level of the yield that is appropriate for growth. and this person's thinking was that we're not far from that level, joe. if you think about how far we have to go, we're further along and that's because what's happened is the increase in rates has almost all been at the long end. if you talk about the spread between the 10 and the 2. there is further to go if the fed would taper on the shortened. in terms of say, you take a 1.5% inflation rate, remove that from the nominal yield of 3%. you are at 150. so you are not far from a long return rate. >> let me ask our guest. you stay with us. i was thinking, if you do see it, it doesn't go higher, the markets will say, wow, the coast is clear. might get us started. >> a big rally. >> for more on this, we are joinsed by larry meyer and i bet you he has an opinion on this and our income strategist. we still have bob horvatz here. larry, does any of that make sense? you think we are getting to where the rate would be without any of the extern am influences on it on the ten year? >> not at all. not even close. >> should bit 4? >> i think steve said this, there is a lot more uncertainty about this than there has been before. we've usually taken 5% of the normal equilibrium ten year rate full employment. many people think so, particularly in the mortgage market. how much it hurts affects how much you get there. there is a lot of sentiment there is a bias there. if it's not what we thought it was before, it's going to be lower. okay. many of our clients think closer to 4 than to five. but we got a ways to go. >> it seems leak it's years away. i'm talking near term as we deal with the stockmarket fluctuations. it's gone all way up herement we haven't tapered a bit yet. we are talking about it. it has discounted a lot of the initial pain we will get with the taper, all right? >> i completely agree with that. what we would say is maybe we move forward, some of the rate increases that otherwise would have occurred later as has been this very great sensitivity in the market to the beginning of taper and talking about the end of asset purchases. in a way we might not have expected. >> gee, where are you on all this? what are you felling clients? >> we're looking at a lower level baseline yield in the treasury markets. reflects a sluggish outlook. right now, you can cherry pick the good data or the bad data. the reality is the trend economic growth over the next couple years is looking at best 2.5%. >> so we are there already. >> we should be towards 4%. >> that's what i want someone to say. at 3%, we've done the heavy lifting already? >> absolutely. i think the last 100 or so basis points move in the ten year yield has done a good job for the market, more importantly, it's taken out some of the big risk-takers. maybe a lot of fast money feds betting on the fact that long rates would remain relatively stable in the portion of the 5 to 7 year part of the curve. they sold out. they will not be able to sell again on this. >> can i ask you about the international markets? we have seen a lot of implications of the suggested tapering and global markets. i wonder if you could take a look at that and give us some sense of your predictions. we have seen indonesia, a lot of other companies complaining about liquidity going in, now they're claire i chaining they're having an ad veers effect on their domestic bond markets. could you drill down on this a little bit? a lot of people are becoming much more researched about them. >> well, this is not a surprise. when u.s. raises rates, the rest of the world is very sensitive, particularly countries that peg all have dirty floats have their rates go up. there is no surprise. it's a reverse am of that aggressive movement into emerging market assets that have occurred previously. when rates were low, expected to remain low, the fed was continuing qe with no talk of tapering. so it's not a surprise. it puts pressure on these countries. let's make it clear the fed has to do what it has to do to promote its objective. >> it's not a surprise. a lot of investors i probably don't think have anticipated the degree. >> the emerging market. >> slightly. plus we didn't expect the degree of correction in the u.s. which spills over to the correction in emerging market. i completely agree with that. >> we will have you back him we got long at the top, steven, we'll talk to you, those are great guests tomorrow. larry meyer, thank you as well. steve, by the time we deserve more than three, we will need a better economy. it will be okay to go above 3 at that point. that my prediction. >> i'm getting you do that on long term real yields inflation so people can make that choice, which you are asking ability, joe, i think it's a terrific question. >> coming up, we will talk about the impact on fed policy, could the housing data help make the case for september taper? we will ask s&p economists and phil lebeau's one-on-one interview with elon musk founder. i can't wait to see this. we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. right now, 7 years of music is being streamed. a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. >> welcome back to "squawk box" this morning, the futures right now, we do green arrows. the dow looks like it will open hire. the s&p 500 up, the nasdaq close to 9.5 points a. few headlines from india's finance minister the country has no intention to introduce capital control. they will enfuse 140,000 billion rupies. >> how much money is that? >> 62 rupes to the dollar. >> so it's like a hundred. >> a little money. >> i think it's one of those things, you say you will never do capital controls. >> i think rupe is a good name. >> the canadian rupe. >> bless you. >> the people's currency. >> i miss jackman's. >> we may get those back. bob har vats former under secretary has admitted -- >> is this something you know? the draghi is coming back? >> the dow erased all of july's gains after the fed revealed split timing of the tapers. still, recent real estate data has been solid. so how is the houseing recovery affecting this decision. good to have you back. >> great to be here. >> the numbers have gotten better. people are terrified about rising rates and try to get in before they go. we may see a pull back in housing sales. >> i think that's a part of the reason. i was in a restaurant, i told someone i was an economist. they talked about, should i buy? when you see interest rates rise, all those on the fence come back into the market. that's a good thing. the numbers for existing homes, it was basically a four-year high, nice news, you saw a lot of activity. we'll see what happens with new home sales coming out soon. those numbers will have much more of an impact on what happens with jobs since they add two to three jobs to the economy. remember bernanke, the missing piston was housing. i mentioned last year. it's starting to gear up. >> at what point do we see housing rates paul? >> i think we need to see interest rates go up higher than they are right now. i think the 30 year is at 4.5%. >> the recent 30-year fixed was 4.3. something like. 4.3, that's terrifying for people who got to see the historically low levels on record for the u.s. going back to world war ii. that's certainly scary. 4.5% is so much lower than what's the historic average? 6.5? 7%? still below the prelevel crisis we saw. >> i think we can hold on. there is a lot of demand. the household net worth. we had four years, cleaning up our balance sheets, getting our fiscal homes in order. i think we do have the capabilities to withstand or cushion that blow. >> so we will be coming up on two weeks on the fifth year of the anniversary of the financial crisis and i think we're going to start having a conversation again about what to do with fannie and freddie. i don't know if you think we will have that conversation or not. >> about fannie and freddie and what's going to happen. if you were in charge, what would you do? >> they are getting attention, how many plans out there, how many potential bills on the table? i think what's interesting is that is being addressed, dealing with a gse reforms is that we can right now. before, during this recession and very weak recovery, they were needed. they were needed and, indeed, we couldn't address changeing the platform for the gse reform itself. now you can, so that i think was the real picture. >> there was a lot of resistance in the past. >> don't we have to, because it ends up on the balance sheets of the united states at some point because it's under the structure it is right now? they have to do something. >> we knew they were resisting for reasons of equity. they thought they needed these gses to do more and enable more to participate. >> if you think about it, structured finance was pretty much asleep. what did you have? you had the gses holding 80, 90% of all conventional mortgages. we needed them. now we're seeing the houdzing market is coming back, getting stronger and stronger. congress is saying maybe we don't need them as much anymore. maybe we can work on how to change the system. of course, you have a couple plans out there. i don't necessarily think any decision will be made this 84. i think this will be passed on probably after the elections. the good news is housing is strong enough to stand on its own. so we can deal with the reforms. >> yay! >> i never got a yay! >> that would be a fresh start. >> that would be so nice. >> good to have you on. >> thank you. we forgot pesos, pounds, franks. >> rupe is a better name and loonies. >> denards. toe grogs the kip from louse, i bet you can't figure out where they have if bolivianos. coming up, breaking nick i economic data. laos was the check. then malaysia. >> you brought back a case of these from when you were in southeast asia. you had a bad case of the ringets everywhere, disgusting. we were watching youich. jobless claims at 8:30 a.m. eastern. economists reporting first time filings. who stand ready to seize them. in a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, our flexible, collaborative approach helps forward-looking companies not only run better, but run different... to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because now more than ever, the future belongs to those who challenge the present. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ . >> welcome back to "squawk box," a quick retail update, shares of ambecrombie and fitch down largely on premarket trading on the back of weaker than expected earnings. the specialty apparel retailer reported second quarter earnings of 16 cents, shyer consensus on lighter than expected revenue 907.7 million. well below analyst's forecasts. due to uncertainty around traffic trends, the weakest comes from abercrombie's hollister brands. the company says the quarter saw weaker traffic and continued softness in the women's business on the earnings call, meek jeffreys largely blames macrotrends and says the reason for weakness is unclear and believes spending has been diverted to other categories. they will be conservative the remainder of the year. hopefully not inventory shortages caused a large sales shortfall in the first quarter. "squawk box" will be right back. . 20 years with the company. . welcome back to "squawk box." we have rick santelli and economist robert bharbara. >> the numbers plays right. >> initial claims jumped 13,000 from a 3,000 upwardly revised 3.20 moved in 3.23. now stand at 3.36. continuing claims, well, they moved from 2.97 to a whisker. i mean a whisker under 3 million. you know, i don't know, i don't think a bounce of 13,000 gets me any more excited that the breakdown to 320,000, mr. certain areas are exhausting claims, whether people are falling through the system. to me, you guys can fight about the correlations. i want to see real job creation and computer chips instead of potato chips. where is ross perot? they bellied in the curve yesterday. they took out that 1.61 level with flying colors. now sit at 1.65, 1.66. so that is pretty much what many traders are looking at down here while everybody else is with their thesaurus trying to come through the mints. >> thank you for that. let's go to robert bharbara. what do you make of these numbers? >> i think it's what didn't happen this year. the last two years, we'd have improvement in the spring and a fade in the middle of the year. this year the claims went 375 to 3.50 that. ry now down to 3.30 averaged out. i think it's better this year at this time than it was over the last two. >> any implications for the taper? >> yeah, i think the bond fwoes from 160 to 2.50. i think that was all because the economy was okay. maybe the taper explains 40 basis points, but people were hunkering down for real problems. you have the sequester and the belief it would be as bad as the fiscal cliff. it was the dog that didn't bark. the real question is what was the bond doing at 1.60. not why it got to 2.5. >> anything from the nomc? >> obviously, there is a fair amount of disagreement of how to taper. >> where are you on that? >> if i use my boil the frog analogy, i think the right thing you are supposed to do is not do it abruptly, cut back. let's say over a 9-year period to go to zero. are you sort of sneaking out of the room without anybody noticing. >> you are starting if september? >> i don't think they'll start in september. an interesting number we don't and the to look at, we will get a week after the benchmark re56. they tend to go in the direction of the economy. since thins look somewhat better. if you added 25,000 a month, maybe you are closer to the 2 o20 than 190, 195. may be important for the meeting after september. >> can you comment on the participation, what's happening affect affects that, how that feeds back to the unemployment rate. there are direct implications between the two. how many people are simply not seeking jobs because their discouraged or are you seeing more people now, as the economy picks up? actually, older data. old folks are not retiring since the big 401k smash t. biggest fall is 16 to fwour-year-olds. my question is they are not -- clearly, they are discouraged, there are people because they've stayed discouraged three years, there are people arguing, maybe it means they all go to school longer. therefore, they're not coming back. therefore, we only need 120,000 a month to keep unemployment steady. i think that's dead wrong, if the jobs were there, you'd expect that group to come back. you can envision better job growth. >> let me break in quickly, j.c. penney adopting a shareholder rights plans. the way to explain it, the plan is denied as the board suggests to protect against any future use of coercive or abusive techniques, shareholders should not realize their investments. the plan adopted apparently using outside advisories, by the board is similar to fans int past. we are looking through this statement right now to understand exactly how it sornlgs but it does say -- >> anybody that wanted to buy my stock if i were j.c. penney, i'd say you don't want to prevent. . the stocks might go up on that, god forbid. >> the deal is the following, if you are an acquiring person, someone who wants to acombier 10% of the common stock, have you to have an exchange offer. that's how you have for the do this. it says if the term acquiring person will not include pershing square or affiliates of nato realty trust so long as the party's beneficial ownership is permitted. >> their grandfather, typically? >> this is almost baltimorerplate. >> do you see part in boilerplate? >> no, a lot of companies have stock. >> you should be so lucky somebody wants to boy your stock or the company. five years from now, we might get it to when the. you done want to get it to 20 overnight. i don't know. that itself the way i think. >> hold onment we missed the paragraph. if a person or group becomes an acquiring person eastern to acquire the extra price. you have to acquire it at $55 per right shares of smon stock. >> crazy. would work. see, i wound bay pay 55 myself. this is nut itself. >> i'm soifr. >> we will take a break. thank you. a lot of these i forgot, the sheckel. how could i forget -- >> you are back to that? >> what is the jeemdz one? the. >> the dong. they said how could we forget the lyra in turkey. >> maybe it will lead to something. >> they're just saying that was not adopted if response. >> nobody tried to buy the company. that's not right. no kidding! >> no, sometimes, the reason you see those behind the scenes, actually, there was a taper off. >> who was crazy enough to do that? >> coming up, phil lebeau's one-on-one interview with tesla's founder elon musk. he is out there now. he'll be here in 32 seconds. that i are planning a major expansion in the model s electric cars. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. we provide the exact individualization that your body needs. this labor day, don't invest in a mattress until you visit a sleep number store. once you experience it, there's no going back. oh, yeah! at our biggest sale of the year, every bed is on sale. queen mattresses now start at just $599. and save an incredible 40% on our limited edition memory foam mattress sets. only at a sleep number store. sleep number. comfort individualized. and this is my home team. this is my large lecture hall. this is my professor. and also my coach. this is my booster club. this is the guy who's graduating ready for a great career in technology. [ male announcer ] in 2012, 90% of devry university grads actively seeking employment had careers in their field in 6 months. join the 90%. learn how at devry.edu. i . welcome back to "squawk box." phil lebeau spoke to tesla founder elon musk. he joins us now. good morning, phil. >> reporter: good morning, andrew. we are here on the model s plant in fremont, california. they are making 500 per week. eventually they will get up to 770 per woke when they ultimately have this line going at full capacity over the next year-and-a-half. take a look at shares of tesla. they are rating tesla on a hold saying tesla may have a 12-to-18 month start on its competitors when it comes to tds. this stock is up 4% in the last year. tesla is saying it is accepting orders for the model s in china. that's important, because china is the number one market in the world not only for autos. will be in the next couple of years for luxury autos. here's what elon musk had to tell us when it comes to the increase in sales here in north america. >> we are doing actually pretty good sales in north america. we just started deliberating in europe. we will start delivering in asia in the ferc. yes, sales have been good. right now, wooer actually not sales constraint. so we're production constraint. we are keeping quality standards high, so the main focus is really how do we increase our ploux rate which means all our suppliers have to move at the same pins. >> here's the production plans for tesla starting this year going over the next few years. 21,000 this year. they hope to be up to 41,000 this year. end of next year we expect the model s and suv fblt. by 2016, 2017, they hope to be well over 20,000 vehicles as they roll out a lower priced third generation vehicle. as elon musk said in our interview yesterday, the biggest challenge they're facing here is the supply chain. can they have their suppliers keep up with them as they increase production of the model s. again, products is currently at 500 per week. guy, when you come out to this plant, what stand out. i have been in a number of auto plant. not only here in north america, but in europe, asia, what stands out is you can see how quickly they are building and adding production. it's clear you can tell these guys are riding the bull right now when it comes to increasing production. we will be here all day long. more xents from our interview on the assembly line with elon musk. he had a lot of interesting things to say, including, whether or not there may be a problem with the supply of battery cells. we will talk about that later on this morning. hey, guys, did you talk about safety? i think it was amazing earlier this week, they came out with a note on how safe the model-s is. not to be promotional. it's the safest car in the world, not ever, again other sedans, sufbs, minivans. i thought to myself that is a calling card. >> the we pull this shot out here? andrew, this is the key here. this is the front of a model-s. right here is an extended crumple zone. there is no large block engine there. as a result, in a frontal collision, will is more space to absorb the energy. that's a big part of why the model-s got a five-star safety rating from nitsa. when you look at the hood, i can't touch this one, it's in production. there is sort of a trampolean effect, the person will bounce as opposed to coming down with a thud. itself a part of the safety plan they put into the model-s. elon musk believes safety is a priority. they believe they can carve out a niche with electric vehicles and it's wornld over the number of years. >> build out the infrastructure so people feel more safer traveling longer distances and the electric cars and rely on the electric power distance from where they live. >> sure. that's the super charger network. they're slowly doing that. when i are here in california, you can fairly easily move throughout the state as the super charger new yorker builds out, people can start and take charge. tesla says over the next few years, they will be adding more rechargingation ises. na will make more people comfortable with long distance driving in a model-x in the future. >> when is that going to come? that's sort of the suv hybrid? >> that's the one with the gull wing doors. it's cool. at the end of next year, we see production. realistically? probably the beginning of 2015. it might happen at the end of 2014. you know how this es go. there is not a set date. is approximately the time there. >> the pricing point on those e both niece? >> you were talking the model-s. you are looking at 71,070. that's before have you the federal, i heard that thing ticking. the other thing to keep in mind with the model x, it will be roughly the same rate, it's that third generation, the mass market vehicle. that's where they will come down in price points. >> when we talk about how well the company is doing, eventually, you have to factor out the subsidies, you do they get to the point it's pure free mark. what do they need to do? houchl how many cars do they need to build to shake off that yield that it's just government support that's allowing them for the make money at this point. >> well, i think you are talking rabbit the zero energy credits out here in california. they will be done with those by the 4th quarter, guys. they say they will be profitable without those credits in the 4th quarter. it's quickly winding down in terms of that element, helping with the profitability. so then it's the infrastructure thing that's going to be the rate. is amace something. you the use the whole front of the door hold the shift. >> i was wondering, was there luggage inside front? >> inkwierk mine want to know. is a deep question. >> no. no, no, no, no. i don't think so, andrew, i'm almost positive when they do those tests, they do not have anything in that vehicle other than the dummy that goes through the tests. then how do you decide what are you going to put in the vehicle? >> no cargo pants. phil, thank you for that report. we look forward to the rest of that interview throughout the day. meanwhile, coming up, bnbc's interim cramer will august about what's coming un. also, a programming note, don't miss the interview with mike duke tomorrow at 3:00 p.m. on "closing bell." we are back in a moment. . welcome back to "squawk box." jim cramer joins us now from the new york stock exchange. i don't know how you feel about this, jim, and we've never talked about it. to sell to good-looking, cool people, that irked me so much. even though i am, in my view, a good-looking, cool person. is is this revenge? is this abercrombie and fat, is this karma, is this what goes around when you say things like that that you don't want people who might not fit the mold in your store? isn't this what should happen to you? >> yes. and i have to tell you, apparel is a disaster. this is the worst quarter for apparel that i can recall. i have to go maybe all of the way back to a period where there was a big change versus denim where denim went out of style. these are just horrendous numbers. abercrombie is an example of a company that really both got the style wrong and the emphasis wrong. they're trying to sell to who knows what. you can say they deserve what's coming but everybody's apparel is is bad. it doesn't matter. nordstrom, saks, macy's. apparel is a disaster. >> weird, too. i'm not sure what it means. do you care -- are you going to -- do you think penneys should be turning anyone away? i don't care who writes in and says they think i'm sexy, i don't care what species. >> do you get those e-mails? >> i don't even care what species. i don't turn anyone away. gender, nothing. >> you and i are near the short hills mall. and 50i've got to tell you, the are some stores you walk by and say, i'm hopeless, i am old. maybe you shouldn't stop at those stores. >> jcpenney, would you turn anyone away if you were them? >> no. look, i'm a believer that penny is going to make it through christmas and i didn't feel that way before. now, one of the things you can say, well, wait a second, of course they're going to. if you remember two months ago the word was they weren't going to get any credit, they wasn't going to make it through. i see some turn. i wish they had morehouse wears. house wears is what is selling at tjx and our ban outfitters with anthropology. sears doesn't have everything. >> with them adopting this poison pill this morning, how do you feel about poison pills, good idea, bad idea? >> give me a break. and if you wanted to buy -- they are their own poison pill. >> right. >> you want to buy them. give me some -- how about that help lo hemlock. notventicappachin po. >> is this cargo pant related? andrew is not allowed to wear cargo pants because of his wife. >> i thought it was olive garden because when you wear cargo pants you can stuff your pants with rolls. >> those rolls are good. >> i didn't think of you stuffing your pants. is that what she's -- >> no, you really -- bob is laughing again. >> bob is laughing. >> great image. he was talking about pockets before. >> i would put your foot down. as she said, who wears the pants? >> you wear the pants. >> if you want to wear some cargo pants? >> you wear those cargo pants, andrew. >> i hope my wife is watching. >> you put your phone in there. put the button on. >> two phones? >> jim, you got meg wittman, too, right? that should be interesting. >> and we've got to find out where they are now on the term, whether they stepped a couple of quarters back. good operating cash flow, no growth. in may she told us shea would grow next year. what happened between may and then? there's going to be a lot of talk it was personnel the secular trends against them and world economy not so great. combined to setback their turn around. let's hear from meg because she always has some good things to say. >> you're not an olive garden guy anyway. >> i love olive garden? >> you ever cut the line there? no one watches cable. >> i don't think i'm too good for olive garden. >> you ever been to one? >> absolutely. >> you get the lunch unlimited salad and bread sticks and soup. >> i do unlimited everything. >> you stuff your pants. >> and i -- well, when you're finished, you feel stuffed. >> you're really fat. >> try getting? >> even on sunday at 4:00 you can't get in. i can get in at franky's 457, heath ledger's favorite restaurant, quicker than i can get in olive garden. >> i'm going to message you. it was an old style place on the outskirts of newark on the other side near bloomfield, someone saw your there. >> that's the belmont tabernacle. >> yes! >> i don't like to reveal that because then i'll never get a table. that place is crowded as it is. they have fabulous chicken there. belmont tavern is great. >> someone told me that. i'd want to go there. >> it is fantastic. coming up -- >> this. >> our guest host this morning is going to have the last word when "squawk box" returns. clients are always learning more to make their money do more. 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(announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." to experience the precision handling of the lexus performance vehicles, including the gs and all-new is. ♪ this is the pursuit of perfection. time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. itime. starts with freshly-made pasta, and 100% real cheddar cheese. but what makes stouffer's mac n' cheese best of all. that moment you enjoy it at home. stouffer's. made with care for you or your family. welcome back to "squawk box." let's get back to our guest host forth last word. you like infrastructure but you want a private/public partnership? >> i think the united states needs more of a structure. we had a period of very low interest rates. we haven't used this time to invest in much needed infrastructure. the way we do, it has to change. it can't be political benefits for the influential. it has to be based on sound private sector as to what infrastructure investments makes the most sense. if we waste the money, use it for political reasons, it has to be done to strengthen the economy. eisenhower understood this. we have to figure out a better way of doing it. to create jobs and good jobs and strengthen the future of the economy. >> thank you so much for being here. "squawk on the street" begins right now. ♪ good thursday morning. welcome to "squawk on the street." i'm carl quintanilla. david faber is off this week. hp's weak quarter last night. weak retail results out of abercrombie. we'll cover all of that. also, the ten year hit 294 this morning before settling back now just below 29. 3% a sure thing? we're going to talk about that, too. europe did have som
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